Department of Marketing Management

Faculty of Commerce & Management Studies

University of Kelaniya, Sri Lanka

MBM in Marketing

Name of the Company: PRAN Foods Ltd, Bangladesh

Submitted By – Md. Amran Hossain

Student no: FGS/MBM/2017/021

Subject name: Strategic Marketing Management

Submitted to – Dr. Bandara Wanninayake

Date of the submission: 25th November 2017

Overview of The PRAN Foods Ltd

The PRAN Company is one of the leading food and beverage brands in Bangladesh. It was established in
1981. The company has not only grown in stature and contributed significantly to the overall socio-
economic development of the country. “PRAN” is currently one of the most admired food & beverages
trustable brands among the millions of people of Bangladesh and other 134 countries of the world where
PRAN Products are regularly being exported. All the PRAN products are produced as per international
standards maintaining highest level of quality at every stages of its production process.

PRAN is currently producing more than 400 food products under 10 different categories i.e. Juices,
Drinks, Mineral Water, Bakery, Carbonated beverages, Snacks, Culinary, Confectionery, Biscuits &
Dairy. The company has adopted ISO 9001 as a guiding principle of its management system. There are
84000 employees are working in this food and beverage industry. The company is compliant to HACCP
& certified with HALAL which ensures that only the best quality products are reaches to the consumers
table across the Globe. This company has been exported around 138 countries all around the world. On
the other hand PRAN products are dominating the current market in the domestic wise in Bangladesh.
The most of the products are producing in Bangladesh as well as outside of the company such as neighbor
country Tripura, India. The PRAN exported around 10 million taka in 2016 at the same time the revenue
of the PRAN had exceeded 500 million dollars, 2016. There are so many products are producing directly
from the rural area by providing the financial support to the farmer. Basically the India, Saudi, Oman,
Malaysia and UAE are the biggest exporter countries for the PRAN.

Products of the PRAN

Juice

Drinks

Bakery

Noodles

Candy

Snacks

Carbonated soft drinks

Sauce

Spices

Dairy

Biscuits

Confectionery

Agro products

Culinary

Frozen food

E-commerce

Impact of international business environment on PRAN

The PRAN Foods Ltd is internationally booming all around the world as they exported to Asia, Middle
East, Europe, Africa and America. The standard of the products are maintaining by the good environment.
The PRAN has good mission to add value to products for the potential customers as well the future
customers. The mission of the PRAN has taken place in an emptiness which is very instability.

PRAN PESTLE analysis

PRAN Foods ltd is the pioneer and the largest industry in Bangladesh based on the consumer goods
producing industry. In this analysis part. The political environment has impact to the business. The
political situation has changed the business environment such as increase the price of raw materials.
Logistic of the goods and raw materials so on and on… on the other hand, the taxes and other duty
charges are also impact to the consumer industry in the current environment of Bangladesh.

Political environment

As per the current senior of the political situation in Bangladesh has completely impact to the business.
It’s the biggest threat for the consumer foods industry in Bangladesh as well impact to other exported
countries. PRAN Foods Ltd directly is getting raw materials from the farmer and produces the products.
Finally the products and goods are distributed to channel or agents. If there is not well movement of the
political situation. It has directly impact to the business industry of the country. The political and legal
environment could be affected to the whole economy. Now are the days the Bangladesh is facing
obstacles to export any commodities because of the recent political unrest in the domestic wise as well as
the international level. So it’s going to indicate that overall impact on the whole economic. Each one of
the business has depended on the political matter.so it’s played very crucial part in the business. The
PRAN Foods limited have own systematic way to approach in designing, creating and delivering
products. The negative political badly affected day to day business. As the main major problem creates by
the political strikes which is not able to make trade between Bangladesh and India. As India is the largest
exporter country for the PRAN Company. The temporally struck the movement of goods because of bad
influenced by the politics. Eventually it creates the bad image in the international market for the long run.
It create problem for the promises deliver of products on time. Finally the companies are losing the big
buyer and customers. According to the World Bank report 2013, the Bangladesh has lost around $1.4
million dollars because of the bad politics influence and sticks.

The operations of the business had increased the efficiency based on the positive political environment.
The companies are carrying out the business operations effectively as PRAN Company is operating their
business. Now days the consumers are becoming more educated and aware of their rights being e
consumer. The government is trying hard and soul to solve this issue with paying full attention to these
laws.

PESTLE Analysis

PESTLE stands for Political, Economical, Social, Technological, Legal and Environmental

forces. These are discussed below.

1. Political: A political issue hampers any company very much. PRAN RFL group also faces the
same problem with it. The Different political issue hampers their business. Due to continuous
sticks, riots, the company cannot import its raw materials or export or distribute its produced
goods in time. It helps to damage the reputation. Some are the reasons has enlisted below :

Political stability
Export- import policy
Tax and tariff policy
Trade restriction
 Labor laws and labor unrest

2. Economical: The economy of the country is played the very important role in the multinational
business such as PRAN. On the other hand, the economics of the country vary the good business.
If the economic condition of the county is bad that mean it had badly affect to the business. Such
as the big organization are facing problem with the money exchange rate and the buying power of
the consumer. Especially those of the companies are doing business in overseas such PRAN. The
main important part is to maintain the quality. This problem is facing by the PRAN Company
right now.
Economic growth
Interest rates
Exchange rates
Rate of inflation
Per capital income
Labor cost
Market or industry trends

3. Social: The PRAN Ltd is always concern about the social changes which is badly affected to the
company. Now this are the days society are changing day by day rapidly. Now the PRAN foods
Ltd much more concern and try to follow the social changes along with the latest trends to bring
into the organization.
Income level
Social statues
Occupation
Age
Family size
Cultural factors
Fashion trends

4. Technological: The PRAN Foods Ltd has set up the new technology to increase the production
as they get more order from locally to internationally. The new technology is making sure that the
quality of the products. So the technology plays an important role in the PRAN industry.
Automation
Social media (Facebook, twitter website)
 Supply chain management
Ease of accessibility, information and communication

5. Legal: The any kinds of business need to run by the legal system of the countries which is
influenced to the business growth. But it has involved to the country laws either that laws are
friendly or not. If the country law is friendly then it will be easy to run the business well.
Consumer rights and laws
Employee protection
Health safety of labor
Advertising standards

6. Environmental: There are some of obligation needs to follow by the company based on the
countries legal system and has to follow the legal law of the environment. So that’s why the
PRAN company is following laws and acts to keep the safe environment which is not harmful for
any countries as well as for own country. There are so many national and international companies
are implementing the green market concept into the organization to keep the save environment.
Now the PRAN Foods Ltd strictly follows the laws of environment.
Protection of nature
Business ethics
Corporate social responsibility
Ethical business operation

Porter’s Five Forces: Porter five forces analysis is a framework for the PRAN Foods Ltd and
business analysis further development. It has drowned upon industrial organization and
economics derive 5 forces that determine the exactly competitive intensity. Thus attractiveness of
the market and attractiveness in this context refers to the overall industry profitability.
 Threat of new Entrants

Bargaining power of Rivalry among Bargaining power of buyers

suppliers existing
competitors

Threat of Substitute Products

or Services

1. Threats of new entrants:

The threats of the new entrants are very much high because of the high competitors. On the other hand,
the any types of new companies are allowed to enter in the market with the valid licenses.

2. Threats of substitutes: Threats of the substitutes: There are so many threats of substitutes are in
involved in this stage as the PRAN Foods Ltd having various competitors. Other companies are also
producing the same products. So the PRAN Foods Ltd is also producing the same products so that need to
aware of the products quality. Otherwise consumers may be switch to the other companies.

3. Bargaining power of Buyers: The bargaining powers of the buyers are too much high because of the
high population with different categories of the consumer level. The consumers can bargain the prices of
the products and services.
4. Bargaining power of Suppliers: Bargaining power of suppliers: Bangladesh is the based on
agriculture country where the bargaining power of the suppliers is low. There are so many suppliers are
available who are proving raw material for producing foods.

5. Current Rivalry: Current Rivalry: There are some of the companies are also having same products.
Now the PRAN Foods Ltd is facing very much rivalry at the present time in Bangladesh as well as other
countries. So that, the current rivalry is high at this moment here in Bangladesh.

AVOIDING MARKETING MYOPIA in Future

The marketing myopia has to be changed following some of the learning point which are connecting to
the PRAN Foods Ltd. The marketers have given some advices to avoid marketing myopia over the past
half century. The main important part of the company’s customers. Basically the marketers mainly focus
on the customers. The new type of marketing myopia can be bring so may causes into the organization
and seriously affected to the leading business. It can be caused deformation in strategic vision.
• Fateful purpose
• Population MYTH
• Production pressures
• Dangers of R&D
• Transportations issues
Above of the point has been connecting to the PRAN Foods Ltd. Those are the highlighted points facing
obstacle by the company.

Fateful purpose: The main way to transfer goods from one place to another place is only by road in
Bangladesh. But the railway road is the second way to make logistic movement where taking long time to
reached the product. The best way is to the road. The PRAN Foods Ltd is one of the well reputed brand in
Bangladesh. The consumers are much more interested to consume the pran products. The company is
facing problems to make deliver the final products to the consumers because of the transportation issues
are involved in Bangladesh. The high way road and the normal roads are very narrow due that not able to
deliver the final products on time. Sometimes it creates the bad images for the company if the products
are not available in the market. The competitor companies are getting opportunities to create relation
instead of the PRAN products. Finally the PRAN Foods Ltd has losing their own regular customers. On
the other hand they are also exporting products all round the world. Sometimes that side also affecting
because of the transport issues.

Population MYTH: There are 16 cores people living in Bangladesh. This is great challenges for the
PRAN Company to maintain the market by proving the products on time. The company has implemented
new strategic plan to fill up the shortage of raw materials. The company has directly engaged to
cultivation such as the fruits, vegetables, corns etc by itself. The products of the company are increasing
day by day even the consumers are also rapidly increasing as well as competitor also increasing. The main
competitors are star ship, shezan and Danish. Those are the local company. But the main competes are
some of the multinational companies such as unilever and nestle. The meanwhile some of the domestics
companies are booming fast with new technology and new value added products. Which are badly
affected to the Company.

Production pressures: The PRAN Foods Ltd is one the oldest company in Bangladesh and trustable
brand. So the consumers are preferred to buy PRAN products. So that’s why the production pressure is
very because of the high demand. The company has to produce for local market and for the international
market. Acceding to the marketing myopia article it has directly involved to the PRAN Foods Ltd. The
high production pressures impact to the company’s manufacturing process of the products quality. The
mass production process sometimes affected to the PRAN Company’s profit margin .if the products are
not able delivered on time one place to another place or overseas. As mentioned to the marketing myopia
that transportation is not growing and the roads are narrow in the Bangladesh.

Dangers of R&D: The PRAN Foods Ltd has continuously growing one step to another step. Now the
company has affiliated business partner with another company which is RFL Company based on the cast
iron, plastic furniture company. It has badly affected to PRAN Company to return one products to another
product. Sometimes the consumer may get confused regarding the products. It creates bad image to jump
from one business to another business for the company.
The result of doing so would however lead to other consequences as listed below:
1. A single-minded focus on the customer could lead to the barring of other important People in the
organization like the stakeholders.
2. Narrowly defining the customer’s needs.
3. A failure to identify the changed societal context of business that requires addressing multiple
stakeholders.
4. Thus having an extremely customer scope view is not the solution to this marketing Condition.
The following are the measures which could be adopted to avoid or mitigate the problem:
1. Mapping the company’s stakeholders to show who influences or should influence the Company and
what issues most concern them.
2. Determining stakeholder salience.
3. Researching the stakeholder issue, their expectations and the measure impact.
4. Engage with stakeholders as they are also an integral part of the decision making process and in most
cases fund the particular programme.
5. Embedding a stakeholder’s involvement.

Recommendation: To build an effective customer-oriented company entails much more than good
intentions or marketing gimmicks; it demands unfathomed matters of human organization and leadership.
A Company has to do whatever it takes to survive in the market. In addition, it should have the Ability to
conform to the requirements of the market, and it needs to be done quickly before it is too late. Just
survival can also not last forever hence the catch is to survive chivalrously, to feel the heaving impulse of
commercial supremacy; not just to experience the sweet smell of success, but to have the intuitive feel of
entrepreneurial greatness. In business, the followers are in most cases the customers and in order to
produce such customers, the entire organization must be deemed as a customer-centric‟ and „customer-
needs-fulfilling‟ organism. Management must have the ideology of not just producing products but as
providing customer creating value satisfactions. In short, the organization must learn to think that it is not
in business only for producing goods or Services but as buying the customers, as a result doing the things
that compels people want to do

Challenge faced by the PRAN Foods Ltd

The PRAN Foods Ltd is currently most well reputed and leading industry in Bangladesh. The PRAN
group has become the largest fruits and vegetable processor in Bangladesh by exporting the highest
products to overseas. On the other hand, the PRAN has directly engaged to the supplier of the raw
material. Basically the company has given finical support to the farmer to cultivate vegetable and fruits as
per the companies demand. Now the companies are facing problems with the suppliers and government of
the Bangladesh. Here I have listed the current problems faced by the PRAN Foods Ltd.
1. Environment problems
2. Transportation problems
3. Pricing problems
4. Social problem
 5. Lack of production problem
6. Quality of the products problem
7. Natural disaster problem.
8. Government laws affected to the Company production.
9. Supply challenges forecasting by the company
10. Delivery issues with the distributer

Those are the big challenges faced by the PRAN Foods in Bangladesh. The company is always tried to
overcome from those problems since couple of years but failure some of the side. The main complexity
of the entire process of the production is having pressure and lack of the skill human resources on time.
The Program for Rural Advancement Nationally-PRAN Foods Ltd jointly working with another
Company. Both are the companies turned into the intangible and invisible capital named intellectual
capital. Now the PRAN Foods Ltd has to maintain the products and services as per the company’s policy.
But there are some issues arise by the consumers. By understanding from the article, there are some valid
reasons are directly involved to this case in PRAN Foods Ltd. The company has to find the alternative
way to solve the main problems.

The PRAN Foods Ltd faced major

Political instability

Prices of fuel and electricity increased

Infrastructure

Population
Political instability: The greatest challenge is facing the political instability by PRAN Foods Ltd. All of
the local and private companies have already grappling with the fuel prices and electricity prices. There
are so many PRAN products are exporting all around the dollar. Now the second problem arise the
exchange rates against the dollars along with the high rates of bank loan. All of the crucial factors has
affected to the business growth and dampen investment sentiments. This political instability was
becoming the burning issues for the PRAN Foods Ltd.

Prices of fuel and electricity: The second major challenges faced PRAN Ltd. Which are the fuel price
and electricity price increasing day by day. Sometime 2 times increased in a year. This has badly affected
to the business. This factors individual are assertive the cost of business even higher.

Infrastructure: The infrastructure of the country has been not improving yet. The roads are very narrow
so that fall troubles to supply the goods and services as well as not able to get the raw materials from the
suppliers. It may cause into damages the raw materials if there is no way to solve the issues. The traffic
congestion is the main reason to put into the troubles. The PRAN Foods Ltd is facing problems with
strike. During the strike not able to transport raw materials or finishing goods from one place to another
place. It creates lots of stress and making huge loss for the company.

Population: The population is creasing very vastly in Bangladesh. Even through there are 16 cores
people living in a small country. This is hardly impact to the production pressure. Despite the problems is
increasing with many factors such as unemployment rate is increasing in Bangladesh.

Overall recommendation: Based on the marketing myopia concept to promote strategic agility has to
implement to the current business market to make better understanding of the business environment. By
using those are strategic plans can be improved the business growth along with the organization network.
On the other hand, the threat of the PRAN Foods Ltd might be reduced by using the marketing myopia
strategic for the short time. The capability of myopia and the boundary of myopia can be changed the
products value chain within the limited time. There are some minor problems facing by the PRAN Foods
Ltd such as political instability and the lack of skill labor and the logistic of the raw materials and final
products. The action program of the company is running well by doing commercial digital advertisement
and organized an open live concert for the promotion of PRAN Foods Ltd products are available in the
market. The company also lunched lucky winner system those are buying PRAN products. The company
itself has to apply their own strategic plan to the organization.

Conclusion: Today’s fast moving world respect the new, innovative ideas. To keep the same pace with
this situation PRAN Foods Ltd had decided to launch a new products and it has a bright future in its
market. As the product is innovative, the consumers are going forward to choose the products.

Product will be a strong product mix for the PRAN Foods Ltd. And once PRAN products will reach to the
hand of our targeted customers, it will be able to capture the most market shares.

Thank you