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1.

Introduction:
1.1Background of the study:
This term paper has been prepared as a part of the partial fulfillment of the course Principle
of Marketing (MKT-101) of the Business Administration Department of the East West
University. Our course instructor honorable Mashruha Zabeen has assigned us this report as
a part of the course, limelight on 4ps & STP concept of a branded Bangladeshi Pran Drinks.
She has authorized the task of writing this term paper on a group basis.

1.2Objective of the study:


4ps & STP concepts are one of the important studies for starting a new business or to survive
in the market or to make improvement in the business selection of strategy is very important
& critical also. In the competitive age without marketing strategy organization cannot survive
and run the organization successfully that is why strategy is important for all types of
organization. The objective of this study is to understand, how the organization follow 4ps &
STP concepts. This will help us bust our knowledge on the practical practice of 4ps & STP
concept.

Understanding the marketplace


Managing marketing information
Consumer market and consumer buyer behavior
Segmentation, targeting and positioning the product
Product, service and branding strategies
New product development
Pricing considerations and approaches
Pricing strategies
Marketing channel and supply chain
Sales promotion
Creating competitive advantage

1.3Data collection method:


This report has been developed using both primary and secondary data collection from the
related people including existing vendors, service providers and most importantly the sales
force members. The internet was widely accessed to find vital data regarding the current

trends and the organizational data. We have adopted the under mentioned methods to
conduct the activity-

In the next step, we determined the source of information that would be required for study.
We used both primary and secondary data to conduct the study.

Primary Data: We have collected primary data by interviewing employees of PRAN Products
Ltd. Primary data were derives through discussion with the employees of the organization. We have
collected primary data in the following ways:

Face to face interview with employees.


Observing the retailer shops.

Secondary Data: Different types of data are used in this study. Sources of secondary data are
as follows:

Internal source.
Annual report of the company.
Previous research report.
Internet

External Source:
Different books and periodical related to marketing concept.
Newspaper
Other internship reports
Friends suggestions

1.4Limitations of the study:


It is quite impossible for us to prepare a report without limitations. Lacking of information was
a big factor. We have to depend heavily on the various websites. As there is not that much
options for comparison with other brands that causes a problem. We conducted the survey
during our ongoing course, thus facing serious time constrains. Employees of the organization
were not that much free to share there every marketing policy. Thats why we had to serve the
market & customers, which was really tough during our ongoing courses.

2. Organizational Profile
2.1Company History: PRAN stands for Program for Rural Advancement Nationally.

The largest fruit and vegetable processing industry in Bangladesh with countrywide distribution
network AMCLs PRAN is an established brand of Bangladesh with an extensive sales force all
over the country. PRAN have a well-developed infrastructure for production, sales and
distribution. PRAN has proven itself as Local product but of international standard.
AMCL was launched in 1985 as an agri-business venture to:

Serve small farmers with inputs.

Marketing farm produce for profits.

Organizing contract growers to grow specific crops.

Exports of agricultural products.

Soon it was apparent that a processing facility was imperative for a sustainable venture. AMCL
therefore set up a factory on 8 acres in Ghorasal with machinery for bottling and canning in May
1991. The factory has expanded substantially over the last 9 years in all spheres of food
processing e.g. bottling, canning, pulping, pickling, concentrating as well as installation of
Bangladeshs first Tetra-Pack facility and a modern Extrusion plant for snack food. Machinery
for all these lines are being installed, expanded, modified and fabricated continuously.
AMCL are very keen to adopt a new technology as it is discovered because of being in such a
competitive market. PRANs R & D are always working hard for a better technology of
production. All departments administrative works are done through connected computers using
the best software and hardware.
Being a major exporter PRAN has to communicate a lot with outside suppliers, retailers or
consumers. Therefore this section is very important for AMCL. PRAN has taken this
communication issue very seriously. They often have to do meetings by doing teleconferences,
internet shopping, video conference etc.
AMCL provides with good quality products conforming to local tastes, health and hygienic
standards which are of affordable price and within the reach of target consumers. This is the first
and largest ISO 9001 certified food processing industry in Bangladesh.

2.2 Mission
Poverty and hunger are curses- mission of PRAN-RFL group. So their aim is to generate
employment and earn dignity and self respect for our competitors through profitable enterprise.

2.3 Vision
The vision of the company is to create a wonderful brand image throughout the world
(Improving Livelihood).
AMCL and its Brand name PRAN have twin vision achieving social values with
sustainable pecuniary advantage for all our stakeholders.

2.4Company Achievement
For excellence in export market including product development, market development etc; we
have been awarded numerous trophies in home and abroad.
In recognition of contribution towards earning foreign currency, PRAN achieved Best National
Export Award for 8 consecutive fiscal years (FY 1999-2000, 2000-01, 2001-02, 2002-03, 200304, 2004-05, 2007-08, 2008-09, 2009-10, 2010-11). In recent times, PRAN is awarded UDC
BUSINESS AWARDS 2011 as the best food & beverage products manufacturer in Malaysia.
In recent times, PRAN is awarded UDC BUSINESS AWARDS 2011 as the best food &
beverage products manufacturer in Malaysia. Given below is a depiction of one of the accolades
that have been conferred upon us:

Deputy Managing Director of PRAN Foods Ltd., Mr. Ahsan Khan Chowdhury is collecting
Best Exporter of the year-2009/10 trophy from Honorable Prime Minister, Peoples Republic of
Bangladesh

Best Exporter of the Year 2013/14

The awards are welcome but if there is one thing that truly inspires every member of PRAN
its a vision to become the leading globally integrated agro based Food Company by improving
livelihood.

2.5 Management Structure:

MAJ. GEN. AMJAD KHAN CHOWDHURY (RETD), CEO

AHSAN KHAN CHOWDHURY (DMD)

ORGANOGRAM OF PRAN
GROUP
C.E.O. (CHIEF EXECUTIVE OFFICER)

M.D. (MANAGING DIRECTOR)

D.M.D. (DEPUTY MANAGING DIRECTOR)

DIRECTORS

E.D. (EXECUTIVE DIRECTOR)

C.O.O. (CHIEF OPERATING OFFICER)


A.G.M. (ASSISTANT GENERAL MANAGER)

S.M (SENIOR MANAGER)

MANAGER

D.M. (DEPUTY MANAGER)

A.M. (ASSISTANT MANAGER)


S.A.M. (SUB ASSISTANT MANAGER)

Market Distribution Management


Managing Director

Retail Marketing Manager

Retail Services
Manager
Wholesale

CFO
(Chief Financial Officer)

HR Manager

Merchandising
MIS Manager
Export Manager
Manager
Costing & Efficiency Manager
Plant Manager
Manager

Wholesale Services Manager


Area Manager
MerchandisingCosting OfficerProgram
Exp. SupervisorDept.
Manager
Officer
Officer

Shop Manager
Area ManagerDistributor

2.6Current Marketing Situation


Fast food business is very profitable in Bangladesh. Therefore, PRAN cannot appeal to all buyers
in the market place or at least to all buyers in the same way. Buyers are too numerous too widely
scattered and too varied in the need and buying practices. Therefore, generally want to serve
different segments of the market. We must identify the parts of the market that it can serve best
and most profitable. It needs to design strategies to build the right relations with customers.
Firstly, we identify markets segments. We segment the market for the buyers need. Segmentation
is very important. We also segment our market occasions, user status, and usage rate.
We are focusing on buyers who have greater interest in the values they crate best. Secondly, we
will identify the target market segment. Market segmentation revels us market segments
opportunities. Beyond deciding which segments of the markets it will target, we must decide
what position is the way the mango is defined by customers on importance attributes, the place
the product occupies in customers mind relative to competing products. We selling the
competitive positioning for the the fast food product which are creating a detail marketing mix.
Steps in Marketing Segmentation, Targeting, Positioning

2.7 Market Description


PRANs market consists of consumers who need to conveniently store, communicate and
exchange information to go on. In evaluating target market segments, company looks at three
factors: segment size, growth, segment structure attractiveness and our companys objects and
issues. Our company first collects and analyze data on current sales, growth rates and expected
profitability for various segments.

Our main goal to catch up consumers value and maintain long-term relationship with customers.
If our market growths increase, we can easily beat our competition and our brand image is
achieving popularity day by day. Company also identifies major structural factors that affect long
run segments attractiveness. Our main product is fast food items. In market, buyers with strong
bargaining power relative to sellers will; try force price down, demand more services and set
competitors against one another-all at the expenses of sellers profitability. Another important
issues focus on powerful suppliers who can control prices or reduce the quality or quantity of
ordered goods and service. We take short marketing channel because our product which is
perishable.
Sales Forecast:
The sales forecast is broken down into the three main revenue streams; direct

sales, Web

sales, consignment sales. The sale forecast for the upcoming year is based on 30% growth
rate. Growth rate for year 2014 to 2015 are based on percentage increases as follows:
Direct sales 20% growth rate per year
Web sales 50% growth rate per year.
Consignment sales 20% growth rate year.
Market Break Even Point

Marketing Strategy

Market Segmentation: Dividing a


market into distinct groups of buyers who have different
needs, characteristics, or behaviors and who might
require separate products or marketing programs.
At PRAN, we believe you should enjoy what
you eat and still live a healthy life. Thats why we are
dedicated to make the food that people love even better.
And were supporting programs and partnerships that
help to educate and induce people to make healthful
choices.
To ensure best quality products reaching to the
consumers, PRAN places great importance on hygienic
manufacturing processes. If we talk about the drinks
category PRAN beverage produce Juice, Fruit drinks
and Carbonated soft drinks.

There are four types of segmentation for


consumer market :
1.

Geographic Segmentation: Dividing the

market into different geographical units. In


Bangladesh PRAN beverage divide the market into
urban, suburban, and rural.

Geographically
Urban

15%
35%

Sub-urban

50%

Rural

In Bangladesh, PRAN geographically target the


urban, sub-urban, and rural areas. In the chart we
can see that they sale 50% products in urban, 35%
in sub-urban and 15% in rural areas. In urban and
sub-urban areas, there are many working class and
educated people .They are very health conscious.
So in urban and sub-urban areas the sales rate are
high.

2.Demographic Segmentation: Dividing the


market into groups based on variables such as age,

gender, family size, family life cycle, income, occupation,


education, religion, race, generation and nationality.

Generation; 20
Age; 30

Education; 20

income; 30

Demographic factors are the most popular bases for


segmenting customer groups. In Bangladesh PRAN
demographically segment the customer market with
customers age, income, education and generation. If we
talk about the age we can see that the Children and
teenagers mostly like the PRAN beverage products. The
juice is very common among children and they like it. The
products are very reasonable. Rest of the people can
easily afford it.

3.Psychographic Segmentation: Divides the


market into different groups based on social class, life
style or personal characteristics. People in the same

demographic group can have very different


psychographic makeups.

Psychographically

Lower class; 20%

Upper class; 30%

Middle class; 50%

In psychographic segmentation PRAN divide the market


into three classes. The three classes are upper, middle
and lower classes. They sale a big portion of products to
middle class customers because in our country most of
the peoples belongs from middle class. Though the price
is reasonable they also like the beverage products.

4.Behavioral Segmentation: Divides buyers into


groups based on their knowledge, attitudes, uses or
responses to a product. Many marketers believe that
behavior variables are the best starting point for building
market segments.

Behavioral

Loyalty Status; 23% Ouality; 27%


Uses rate; 23%
User status; 27%

In behavioral segmentation PRAN divide the market into


product quality, user status, uses rate and the customers
loyalty. Market can be segmented into light, medium and
heavy product users.

Pran Drinks Marketing Mix

Product:
Brand Name: PRAN is currently one of the most admired food & beverages brands among
the millions of people of Bangladesh. It is renowned for its different kinds of food products.
PRAN is currently producing more than 200 food products under 10 different categories i.e.
Juices, Drinks, Mineral Water, Bakery, Carbonated beverages, Snacks, Culinary, Confectionery,
Biscuits & Dairy. This company believes in AGRO-BUSINESS way. So it produces products
as per international standards maintaining highest level of quality at every stages of its
production process by utilizing agricultural raw materials and resources (fruits and vegetables) of
our own country.
Product is the key element in the marketing offering .Our marketing mix planning begins with
formulating an offering that brings value to the target market. This offering becomes the basis
upon which the company builds profitable relationship with customer product Fast food item
products become more and more commoditized, PRAN is moving to a new level in creating
value to their consumers.

Packaging: PRAN is using different kinds of packaging ways such as glass bottle, aseptic
pack, pet bottle, tin can etc for beverage.

Variety:
There are many varieties the beverage food products of this company. PRAN produces
different types of juice, soft drinks, energy drinks and pure malt beverages.
Juice: Pran mango juice, Pran orange juice, Pran apple necture, Pran frooto, Pran junior juice,
Pran little star etc.
Soft drinks: Pran up, Pran maxx cola, Pran lemon, Tango, Firefly, Pran cheer up, Colors.
Energy drinks: Power carbonated beverage.

Pure malt beverage: Oscar.


Quality: PRAN provides delicious, natural and sweet taste fruit juice which is obtained from
the local orchard during the harvest. The local orchard gives natural pulp squeezing fresh fruits
containing vitamins, minerals and other ingredients. So, the produced juice is refreshing, natural
and nutritious. This company provides carbonated soft drinks by producing cola, Lime and
lemon. As PRAN is giving its market refreshing and high quality products, these products are
widely accepted in local and international market.

Service:
As a renowned and well-established company, it provides care and services to its customer,
suppliers, employees and trades.
Customer service: Giving opportunities to customers so that they can complain and comment on
its products. Company also helps customers by providing benefits and price information of its
products.
Supplier service: The suppliers of PRAN are native farmers. Providing them financial
supports, modern farming instruments and technology.
Employee service: Giving values to their employees, giving them proper training, encouraging
them and suggesting them to think better.
Trader service: Giving them product in right price and right time, trade benefits, sample
products and special service.

Promotion
Promotion is the aspect of marketing that involves delivery of company, brand or product
messages to target customers. Several tools are used by PRAN to aid the delivery of both paid
and unpaid promotional methods. Each tool contributes a different way to reach customers and
achieve communication objectives.

Advertising
Advertising is a public mode of communication. Because it is communicated simultaneously to
large number of people and people know that the same communication is going to many people,
they feel their motives for buying are understood by the advertiser. Advertising messages can be
repeated number of times. Buyers also can compare advertisements of various companies selling
the same product. The media offers the facility to add color, sound etc. to the message and
dramatize the message.

Various Advertising of Pran Beverage

Television: TV is the biggest media in Bangladesh to reach the consumer. The firm
realized it and started to spend for TV advertisement of PRAN.

Radio: Most of the people of


Bangladesh live in village. Radio is now available everywhere. Radio can build up good
appeals. On the other hand many people listen to FM radio nowadays which is available

in Smartphone. So, the company emphasizes advertisement on radio or FM.


Newspaper: Newspaper is an important media .A company can easily reach to the target
customer through newspaper. PRAN is always using for almost every newspaper for

promoting their beverage item. 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.

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 as a communicative channel
involves a live, immediate, and interactive
relationship between persons. Personal selling
leads

to

relationships.

The

listener

feels

obligated to respond to the salesman at least with


a polite thank you.
Personal selling creates a good relationship with the dealers, distributors, wholesalers, retailers,
with customer or others of PRAN. So, the company's sales people are always playing a vital role
in personal selling.

Sales promotion
Sales promotion is another essential ingredient in promotional campaigns. Sales promotion tool
is like coupons, contests, premiums, and the like act as communication medium and also
promote sales. They gain attention and provide information that may lead the consumer to the
product. They include a distinct invitation to the consumer to do the transaction in a short period
of time. PRAN beverage provides Consumer promotion with various offer, discount, incentives,
coupon gift etc.

Public relations and publicity


News stories and feature articles are more authentic and credible than advertisements to readers.
The articles act as testimonials. The message gets through to the potential buyers as news and
they may not turn away from it as they turn away from the advertisements.
PRAN frequently provides the material for publicity in the form of news releases, press
conference and photograph

Events
They include sponsorships of sports, arts, entertainment and cause events as well as activities
that create novel interactions of consumers with product or brand. Sponsoring major events and
community activities serve as promotional opportunities for companies as well. It can improve
companies rapport and goodwill with the communities in which you operate your business and
PRAN is very successful in this area.

Digital Technology
The Internet and mobile technology have enabled use of a host of digital and interactive
promotional tools. Online and e-mail marketing are common elements of promotional
campaigns. Social media and blogs offer additional interactive tools that companies can use to
reach consumers directly. Mobile devices with applications for electronic communication and
social media allow companies virtually 24/7 access to consumers on the move. PRAN beverage
use digital technology to promote their product.

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