PRAN Group of Industry

Introduction:
PRAN stands program for rural advancement nationality.

PRAN is the pioneer of Bangladesh to be involving in contract farming and

procures raw material directly from the farmers and processes through state of the
art machinery at their several factories into hygienically packed food and drinks
product. The brand PRAN has established itself in every category of food and
beverage industry and boosts a product range from Juice, Carbonate drinks,
Confectionary, Snakes, and Spices even to dairy products. Now PRAN consumers
not only value PRAN for its authentic refreshing juice drinks products, but also for
its mouth watering confectionery products with high visual appeal and exciting
texture. PRAN intends to expand their presence to every corner of the world and
strive to make PRAN a truly international brand to be recognized globally.

PRAN started its operation as a processor of fruits and vegetables in Bangladesh.

Over the year the company has not grown in stature but also contributed
significantly to the overall social-economical development of the country. PRAN is
currently one of the most admired food and beverage brand among the millions of
people of Bangladesh and other 94 countries of the world where PRAN products
regularly exported. All the PRAN products are produced as per international
standards maintaining highest level of quality at every stages of its production
process.

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Mission of PRAN Company:
The main mission of this company is to eliminate the hungers and poverty. This
company is trying their best to cures the hunger and poverty problem.

Vision of PRAN Company:

Improving the livelihood of people of every corner of whole world is the main
corporate vision of this company. People of every stages need some important
products sometimes they could not make or get them at home or by any easy
substitute way. PRAN group of industry is aimed in that base make or produce
their innovative products to fulfill the need of these people. People can easily get
these important things through this company now. This is the main vision of
PRAN group of industry.

Company’s Aim/Objectives:
To generate employment and earn dignity and self respect from compatriots
through profitable enterprises.

Financial Objectives:
 To earn n annual return on investment (ROI) over next years of 21.31
million after tax.
 To provide divided @ 28% to the shareholders for the year 2009-2010.

Marketing objectives:
To occupy the market as a market leader through creating brand equity.

To earn customer satisfaction and build positive image by maintain the quality of
product and transparency in dealing with high quality of service.

Structure of PRAN Company

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Job specialization:
Agriculture marketing company ltd. (AMCL) has divided its total works into
smaller component parts.

The parts are

a. Production
b. Finance
c. Marketing

Departmentalization:
The process of grouping jobs according to some logical arrangement, AMCL is
grouping its job involving the following activities by the functional
departmentalization.

Board of directors:
Well established and reputed professionals and business person of Bangladesh.
They are followings:

Chairman:He is the well known business person in Bangladesh.

Managing director:The number selected by other members who set up the
organizational mission, set higher quality product and dominant in the world
marketing company.

Deputy managing director:He is the member of the board of director. He selects

the organizational goals and plan. Now he rolled in planning and production.

General Manager:The function of general manager is to make quality production,

setting goals. He also emphasizes the maintenance department.

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Assistant general manager:He sets the plan for other departments as per making
of production. The functions also are to make higher quality production, increase
productivity and cost control.

Finance accounting department:The department pays salaries, wages and

calculates company’s financial statement.

Marketing department:
Markets over the world are controlled by their accumulate decision. Right time
advertisement, control taxes and vat, cleaning and forwarding is the object of
export department purchases raw materials and other equipment’s as per
production schedule. Thos department also takes so many promotional activities
for promoting the product.

Situation analysis:
It describes the company’s overall position comparing with others. It also tells
what kinds of benefits the company enjoying and what are its limitations and how
it can overcome these by taking corrective measures. The following things can be
done for analyzing AMCL.

Marketing mix:
Marketing mix is the set of marketing tools that the firm uses to pursue its
marketing objectives in the target market. This marketing tool involves 4P’s of
marketing Production, prices, place and promotion. The particular marketing
variables under each P are shown below:

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R
A
M
G
IN
T
E
K
X 1.
2.
3.
4.
Price
Place
Product
Promotion
Figure: Marketing Mix

Broadly speaking most of the companies using marketing mix which includes….

These are the four basic pillar of marketing mix.

Most of the marketing strategies are built on the basis of these criteria.

Promotion is the one of the important elements of marketing mix. These are so
many elements of promotion such as…………

a. Advertising
b. Direct marketing
c. Public relation
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 d. Sales promotion

Traditionally sales promotions have been used by marketer to increase sales in the
short term.

However, in the last few decades this communication tool has evolved and now is
considered from a strategic point of view. For this reason it is necessary to realize
new studies in this area and study how consumers evaluate sales promotions.

Sales promotion has grown in both importance and frequency over the past few
decades. Although an accurate estimate for total sales promotions expenditures
does not exist, we can be sure that the trend is up.

Sales promotion serves three essential roles. It informs, persuades and reminds
prospective customers about a company and its products.

Even the most useful product has to pass through many hands between a producer
and consumers. The second purpose of promotion is persuasion. The cut throat
competition among different products puts tremendous pressure on their
manufactures and they are compelled to undertake sales promotion activities. The
third purpose of promotion is reminding consumers about products availability and
its potential to satisfy their needs.

Most of the market’s uses consumer oriented sales promotion tools. These are:

 To increase short term sales

 To induce trial
 To reduce inventory
 To establish a brand name
 To make cross selling
 To cope with competition
 To avoid advertising clutter

Products Review:
The company has so many different products. These are given below:

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 a. Juice
b. Beverage
c. Drink
d. Confectionary
e. Culinary
f. Snacks
g. Dairy

Various size of PRAN Mango juice:

The delicious natural and sweet taste fruit juice is derived from the local orchard
during the harvest to ensure the freshness and quality of the juice. It gives natural
pulp squeezing fresh fruit, vitamins; mineral and other ingredients make the juice
refreshing, natural and nutritious.

Various size of PRAN mango juice

Juice

Refundable glass bottle (1)

Aseptic pack

Hot filled

Pet bottle

Tin canned

Non-returnable glass bottle

Mango juice, green mango juice

PRAN mini juice (65ml), PRAN junior juice(125ml), PRAN juice pack(125ml),
PRAN premium (200ml), PRAN classic (250ml), PRAN premium juice (250ml),
PRAN Classic(250ml), PRAN premium juice (1000ml), PRAN classic juice
(1000ml)

Fruit cocktail, mango, orange, mango 100ml

Fruit cocktail, pineapple, mango, tamarind, orange, banana, guava, coconut.

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 Figure: Some product of PRAN GROUP of company.

The AMCL has already captured all over the country. It has distributed it’s product
from urban to rural area. All people are also habituated with that product. As it is a
consumer products so every people needs it. Form child to old, each person feels
its necessity. So it’s coverage all over the country and all kinds of people. And
finally it has also enables to do that. Almost it follows mass segmentation.

The importance of consumer sales promotion in the marketing mix of the fast
moving consumer goods (FMCG) category throughout the world has increased.
Companies spend considerable time in planning such activities. However in order
to enhance the effectiveness of these activities manufactures should understand
consumer and retailer interpretations of their promotional activities. The study here
pertains to consumer’s perceptions regarding sales promotion. Some past
researchers have suggested that promotion itself has an effect on the perceived
value of the brand. This is because promotions provide utilitarian benefits such as

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monetary savings, added value, increased quality and convenience as well as
hedonic benefits such as entertainment, exploration and self-expression.

SWOT Analysis of PRAN Company

 STRENGTH
 Large company
 Experience
 Greater sources of finance
 Greater control over sources of raw materials
 Risk-pooling
 Huge distribution network 

 Weaknesses
 Disproportionate promotions strategy
 Control
 Lack of first-mover’s advantage
 In-house media planning and promotional activities
 Distance and transportation cost
 Perishable item

 OPPORTUNITY
 Huge demand
 Overseas expansion
 Natural resources
 Cheap labor 
 Ethnocentrism
 Government incentives
 Value Added Tax (VAT)
 Duty Drawback facility
 Cash Incentives

 THREATS
 Price wars with competitors
 Stricter health and technical standards
 Reduced benefits
 Competition

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Promotional Policy & Strategy of PRAN
Promotional Mix consists of four major modem of communication these are:
Advertising, personal selling, sales promotion and publicity.
PRAN Company uses all above promotional strategy to enhance its sales:

Advertising:
Advertising is one of the most common tools that the company uses to direct
persuasive communications to longer target buyers, consumer and public. It is
aware of the consumer about its quality, price and consumption pattern.

Advertising can be done in various ways such as:

a) Television: TV is the biggest media in Bangladesh to reach the consumer. The

firm realized it and started to spend for TV advertising of PRAN juice pack.

b) Radio: Most of the people of Bangladesh live in village. Radio is now

available everywhere. Radio can build up good appeals. So, the company
emphasizes advertisement on radio.
c) Newspaper: Newspaper is an important media.A company can easily reach to
the target customer through newspaper. Almost all the daily newspapers have been
used for the advertising of PRAN juice pack marketing in Bangladesh. Such as,
The Daily Prothom-Alo, The Daily Ittefaq, The Daily Amar Desh, The Daily
Shamokal, The Daily Nayadiganta, The Daily Observer, The Daily Star, The Daily
Jugantor, The Daily Janakantha, The Daily Manobjomin etc.

d) Cinema: Some people especially middle lower class enjoy cinema. So to

increase sales volume the company has to arrange advertisement through cinema.

e) Magazine: Various kinds of Magazine are published in Bangladesh and a

specific target group of (PRAN juice pack) is reading these magazines. So to create
attention of PRAN juice pack the company has spent a large number of amounts
for advertising in the magazine.

Personal selling:
Personal selling is one of the most important to the firm. Personal selling creates a
good relationship to the dealers, distributors, wholesalers, retailers, with customer
or others of PRAN. So, the company's sales people also play a vital role there.

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Sales promotion:
Sales promotion is another essential ingredient in marketing campaigns. Such
promotion consists of diverse collection of incentive tools, mostly short term,
designed to stimulate quicker and for greater purchase of particular products or
services by customer, where advertising offers a reason to buy PRAN Juice Pack
others trade promotion and Consumer promotion such as discount, incentives,
coupon gift etc.
Sales Promotion can be happened in two ways, such as

Trade Oriented Sales Promotion:

Consumer oriented sales promotion is the main topic of this project.

According to PHILIP KOTLER,

“Sales promotion consists of diver’s collection of incentive tools, mostly short

term designed to stimulate quicker and greater purchase of particular
products/services by consumers or the trade”.

When developing sales promotion strategy for our business, it is important that we
keep the following points in mind.

….. Consumer attitudes and buying patterns

….. Our brand strategy

….. Our competitive strategy

…..Our advertising strategy

Tools of consumer oriented sales promotion:

There are so many tools or techniques available to the market for achieving
objective of sales promotion. These tools should be used considering all other
factors affecting such as cost time, competitors, availability of goods etc. These
tools are as under:

 Coupons
 Price-off
 Freebies

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  Scratch cards
 Lucky draws
 Bundling offer
 Extra quantity

COUPONS:
Coupon is the oldest and most widely used way of sales promotion. Coupons used
since 1895. It is mostly used by packaged goods.
PRICE-OFF:
A price-off is simply a reduction in the price of the product to increase sales and is
very often used when introduction a new product.
FREEBIES:
Freebies are a popular form of modern marketing and are some of the best things
about the internet. The definition of freebies is products or services given away for
free at no cost to the consumer.

SCRATCH CARD:
A scratch card is small token, usually made of cardboard, where one or more areas
contain concealed information; they are covered by a substance that cannot be seen
though, but can be scratched off.

BUNDLING:
Product bundling is a marketing strategy that involves offering several products for
sale as one combined product. This strategy is very common in software business
and in the fast food industry in which multiple items are combined into a complete
meal. A bundle of products is sometimes referred to as a package deal or a
compilation or anthropology.

There are also three types of sales promotion strategies. They are…………
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  A push up strategy
 Pull strategy
 A combination of the two

Publicity:

 PRAN juice pack in Bangladesh uses some publicity, the company frequently
provides the material for publicity in the form of news releases, press conference
and photograph.

Distribution channels of PRAN:

The retailers informed that every company follows the same distribution channel
process for soft drinks distribution. The distribution channel followed by the
beverage is………

 Producers
 Distributors
 Dealers
 Consumers

Selling system of beverage products:

The total sample size of retailers informed that they received the soft drinks bottle
from the beverage companies van like PRAN Company serves PRAN cola, Cloudy
lemon etc.

Pricing strategy of PRAN:

In any organization price is foremost factor. AMCLset their product price on the
basis of their expenditure and competitors pricing strategy. They try to set their
price at a lower level that every class of people can afford to take their services
also they give all kinds of family planning services at a free of cost.

Price margin:

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AMCL always try to reduce their product cost and selling price. From PRAN, the
distributor makes profit of 14 TK crate and 0.58 TK bottle. The retailers make
profit of 50 TK crate and 2.08 TK bottle.

We can make a list of price list of some juice product of PRAN group.
This list is given below as a table…….:
Name of products Quantity(ml) Price/unit(TK)

PRAN mango juice pack 65 10

PRAN mango juice pack 125 12

PRAN mango juice pack 200 14

PRAN mango juice pack 250 16

PRAN glass bottle 250 12

PRAN tin can 250 25

PRAN non-returnable 250 18

juice bottle

Credit facilities:
The retailers informed that none of the beverage products offer them any credit
facilities. It means the beverage companies never proposed credit facilities to them.
But AMCL is thinking about the credit facilities.

Sales budget:
PRAN group of company does not make sales budget for one year but divide the
year in four parts. Sales budget is made for each single part. So as AMCL has to
follow this strategy. For every three months an amount of sales is targeted.

Budget recovery:

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For every three months sales target is fixed. If a budget of a part is fails for any
reason then the remaining portion of that budget is added with the sales budget for
next part. The company takes necessary steps to sell the targeted sales with the
additional sales.

Sales planning:
According to COCA COLA policy AMCL divides a year into two parts

As pick season and off pick season.

Pick season: March, Arial, May, June, July, August, September and October.
Here July is included in pick season because in this time in our country natural
fruits very much available and cheap.

Off pick: January, February, November, December.

From March to October the atmosphere of our country is too hot. So people like
more cold drinks.

Huge advertising budget

Advertisement is one of the major activities for marketing any product. And for
beverage industry its importance is beyond of discussion. A huge advertising
budget is set every year. PRAN spends the highest amount of money for
advertising among all other local companies.

Standard of advertisement

Among all other advertisements TV advertisement is the most effective tool. As

PRAN spend huge amount of money for advertisement they hire the highly
professional as makers and models in the world. They make high standard
advertises for all over the quality of their advertisement. They make extra allegiant
advertises for other forms of advertisement like internet, radio, newspaper, banner,
bill-board etc.

Sponsorship

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Sponsorship is the most effective and efficient tool for marketing. PRAN give
sponsorship for on many events or programs globally like sports, concert, music,
charity show etc. By giving sponsorship PRAN want to get closer to the customers.

Sponsoring on sport events

So many international and sports events or tournaments are sponsored by PRAN.
Especially in the game of cricket they give more emphasis about sponsorship.
Quite a few international and local tournaments are sponsored by PRAN. They also
give sponsorship on other forms of sport.

Sponsoring on sport teams

As a local company PRAN give sponsorship on few sport teams like cricket,
football, hockey, etc. now a day’s cricket is the most popular form of sport.
Sometimes local teams like Abahani, Mohamedn etc. are also sponsored by PRAN.

Brand Preference:
AMCL launch 250ml bottle because the customers informed the things about the
brand preference of the beverage products-

Consumers like Pran250 ml and 100ml bottles both. The same result goes in favor
of AMCL.

Consumer Group Survey:

The consumer group was divided into four categories such as-

 Children
 Teenage
 Youth
 People over the 35 years

All the above four categories were the consumer of AMCL. Its launch its product
to consider all ages people.

Signboard:Among the rest 65% signboard, 28% signboards were found of PRAN,
16% Pepsi, 9% R C, 7% Fruticaand 4% of each for Sun crest and PRAN

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signboards were found. As signboards is a very useful media of advertisement for
Beverage Company.

Cooler Position and Deposit System:

The retailers informed that 45% of them had their own refrigerators. 22% PRAN
cooler was found and 16% Pepsi, 9% R C, 5% Mojo, 3% Sun crest cooling system
were found.

The retailers also informed that retailers had to deposit tk.5000 for the refrigerator
of PRAN.

Public demand:
AMCL gives more emphasis on the creating the public demand. The retailers give
preference to public demand, because their profit mainly depends on consumer
choice.

Gift items:
AMCL gives various types of gift to retailer. Because the retailers always give
priority to those brands who give them items like as opener, T-shirt, glass, wall
clock, etc. the company, which gives the retailers gift items were more preferred
by them, and they like to keep more bottles of brands.

Most Preferred TV Channel for the Advertisement:

In Bangladesh, we have 4 private and national T V channel. Only one of them is
government owned. TV advertisement is very powerful communication medium
between companies and retailers and mostly with the consumers. According to the
retailers, E TV is most preferred media for them. 66% liked E TV, 25% B TV, 6%
like other channel .AMCLs advertises these channels.

FINDINGS:
From the analysis of Sales promotional strategies of AMCL, there are some
findings which are given below-

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  The company follows the narrow span of control.
 The company product a wide range of juice, beverage, confectionery,
culinary, snacks and dairy products. Each item is called a batch.
 It provides huge advertisement.
 The company is too much concerned about the quality of the product.
 It also tries to offer a reasonable price which can be acceptable by the
consumer.
 The current position of the company is remaining a successful
condition.
 The net income of the company has increased significantly. It also
indicates the company’s strengths over the year.

Recommendation:
The following recommendations can be utilized to improve the performance of
thiscompany-

 The company is running with too much of capacity. It should

immediately go for expending the demand through diversification of the
market and utilize its full capacity.
 The company should aim to achieve economies of scale in the
production and introduce experience curve as soon as possible.
 The company should utmost emphasis to go for exporting their world
class quality products to the neighboring and other countries.
 It should follow well-defined costing system.
 The company should prepare work sheet before preparing financial
statement.
 The quick ratio should increase simultaneously.
 Adequate care should be taken for selecting the advertising media.

Conclusion:

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An organization pursues strategies at different levels to achieve superior
performance and to provide it with a competitive advantage. Managers in an
organization to launch various products and services to achieve superior
performance and competitive advantages. By analyzing all the strategies taken by
the company. We have found that the sales promotional strategies taken by AMCL
works in consistent with its attaining superior profitability and sustainable
competitive advantage. These strategies, lead AMCL one of the country’s most
diversified conglomerates with interests ranging from agro-processing, food,
beverages. The company has been swamped by increased demand for range of
products including soft-drinks, juices, and mineral water. The company still in the
leading position in the market but in future any strong competitor can emerge. So
to face this competition, the company should enrich its background integration
with sugar producer and packaging materials suppliers. Also, it should focus on
forward integration with large retailers like agora, London, for better serving the
customers and attaining superior profitablility.

REFERENCE

 http://www.pranfoods.net
 http://www.wikipedia.com
 http://www.investopedia.com
 http://assignmentpoint.com

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