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A Brief Introduction to PRAN Group

PRAN GROUP at a glance:

Since its inception in 1980, PRAN GROUP has grown up and became the largest fruit
and vegetable processor in Bangladesh. PRAN foods, which is a subsidiary of PRAN-RFL

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group of companies, currently is the most well known household name among the millions of
people in Bangladesh and abroad. For maintaining high quality in PRANs production,
packaging and distribution, PRAN has earned the distinction of achieving prestigious certificate
like ISO 9001:2000 and being the largest exporter of processed agro products with compliance
of HALAL & HACCP to more than 82 countries from Bangladesh.
PRAN is the pioneer in Bangladesh to be involved 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 products. The brand PRAN has
established itself in every category of food and beverage industry. Today, PRANs consumers not
only value PRAN for its authentic refreshing foods and beverages, but also for its mouth
watering quality confectionary products with high visual appeal and exciting texture. The
company intends to expand their presence to every corner of the world and strives to make
PRAN a truly international brand to be recognized globally.
PRAN has a wide range of product line which they are offering to their consumers.
PRAN is currently producing more than 200 food products under 10 different categories: (1)
Juices, (2) Drinks, (3) Mineral Water, (4) Bakery, (5) Carbonated beverages, (6) Snacks, (7)
Culinary, (8) Confectionary, (9) Biscuits & (10) Dairy.

PRAN places great importance on hygienic manufacturing processes. This encompasses


everything from choosing quality materials to the use of storage facilities and careful monitoring
of products using electronic sorting. Skilled and experienced personnel select finished products
which are then examined in a laboratory to verify their quality and to check for residual
substances both before and after the production process.

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SWOT Analysis

Strength Opportunity
Weakness Threat

SWOT ANALYSIS of PRAN GROUP:

The SWOT analysis comprises of the PRANs internal strength and weakness and
external opportunities and threats. SWOT analysis gives PRAN an insight of what they can do
in future and how they can compete with their existing competitors. This tool is very important to
identify the current position of the PRAN as a company relative to others, who are playing in the
same field and also used in the strategic analysis of the organization.

Leading market position: Demand for PRANs foods and beverages


in local market are very high among the consumers. With diversified
product line and high market demand for the entire product makes

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PRAN market leader of foods and beverages industries.
Brand name: Brand Loyalty and large customer base due to PRANs
reputation to serve its customer with best quality of products and thus
made PRAN a leading brand name in Bangladesh.
Regular introduction of new products and services: PRAN is the
only company in Bangladesh with reputation of introducing new
product on continuous basis.
Technological expertise: Up-to-date Technology for production of
products, mostly they used German & Swedish tech-supported
production units.
Management expertise: Senior local management with local market
experience. Very efficient employees with high performance expertise
in their respected field.
Strong distribution channels: PRAN maintain a good public relation
with their intermediates and they also provide all kind of support to
wholesalers, agents and retailers to maintain uniformity in distribution
of product.
Diversified product lines: 200 products in 10 different categories.

Product quality variations: Sometimes product qualities &


services are not up to customer expectation.
Turnover and long term people issues: The biggest problem that
PRAN is facing these days is employee turnover, due to high work
pressure and less job satisfaction.
Large business size: Large size of business and workforce makes
it difficult to manage.

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Market penetration: Scope of PRANs market penetration through
diversified products and comparatively cheaper price range than others.

Governments supports: Governments policy of encouraging agro-


business and exporting local food products abroad has given PRAN a
big opportunity to expand their business abroad.

Value addition in products and services: With increasing day to day


market demand has put PRANs product values at an edge in
comparison to its competitors. They are adding values to their products
by improving qualities.

Positive environmental factors: Regulatory environment favouring


private sector developments thus helping PRAN expand and maintain
business.
High growth rate in the food and beverage industries: Demands for
foods and beverages are high in local markets thus making a positive
growth rate of this industry.

High competition from other foreign and local companies: Due to


existence of many local and foreign imported foods and beverages in
local market, marketing of some products has become a bit difficult for
PRAN e.g. like why would people bother to buy PRAN juice as they
can buy SHEZAN or SLICE juice instead, while paying same price.
Increase competition for market share in the industry: Foods and
beverage industries are becoming more and more complex and
competitive day by day thus putting PRAN in a bit concern for their
market share.

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Competitor can produce same products: One of the most common
ethical dilemmas in our local food and beverage market these days is
that people are less innovative and busy on producing same products by
copying from their competitors and then selling those products in a
cheaper price than those of their competitors on local market. Which is
indeed a big threat for PRAN as Bangladesh is full of price oriented
customer rather than quality oriented.
National and global political unrest: Hostile national and global
political environment has become unfavourable for businesses like
PRAN to expand and compete.

New innovation of other companies give and advantage to that


companies as people have a craze for new goods, thus putting PRAN in
jeopardy.

After analyzing the SWOT data, PRAN has to come up with best suitable and seasonally
variable hybrid mixture of business strategy, which they can use to maintain the same standard of
being a leader in food and beverage industries.

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Managerial Functions

PLANNING:
A companys success comes with its way of planning its business. The most important things in
business planning are Mission, Vision and Long-term goals.
Mission: To generate employment and earn dignity & self respect for our
compatriots through profitable enterprise.

Vision: Improving livelihood


Long-term goals: (survival needs)
Customer satisfaction with high quality products and services.
Commitment to provide excellent quality products at all times.
Product quality. Not only great food but great service and atmosphere.
The creation of a unique, innovative, upscale atmosphere that will differentiate PRAN
from its competitors.

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Maintain good relationships with reliable suppliers.
Repeat customers.
Types of planning: PRAN group follows the strategic planning to formulate
their future courses of action. This strategic planning helps them to achieve their
long term goals with available resources. Sometimes they have to focus on the
intermediate and operational planning to achieve some short term goals also like
what contribution the subunits can make and how to accomplish the specific task
with allocated resources.
Response to uncertainty: They go for aggressively making things happen rather
than waiting for them to happen. Their primary attention is devoted to search for
new markets. In many times they fail to do that but they believe in the proverb
Failure is the key to success. So they acquire frequent development and testing
of new product and services.
Condition of uncertainty: They take a decision when there is no doubt about the
factual basis of a particular decision, and its outcome is predicted.

ORGANIZING STRATEGY:

They try to design flexible authority to their company as it helps to create a friendly
environment. They follow the operational approach as they are production oriented and dedicated
to improving efficiency as well as cutting waste. They develop performance standard on the basis
of systematic observation and experimentation. They set a standard mark for the employees and
evaluate their performance. They follow the time and task duty, systematic selection and training
and also pay incentives for their better production. Sometimes they have to go through the
contingency approach for some specific situations. A responsibility network is maintained by
them for fulfilling their goals and objectives.

Organization styles and management principle that followed by PRAN are as follows:

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PRAN obeys traditional hierarchy system with chain of commands that one person
reporting to his or her superior in line of authority with one person at top of the organization.
PRAN follows bureaucratic principle with equity in management.
PRAN maintains clear communication channel to have uniformity of flow of data and
information among managements and employees to avoid any distortions.
Large organizations like PRAN, decision-making power in minor or sometimes in major
issues vested on lower level management. Although they are under extreme supervision of
top management, thus follow decentralize authority principle. Although decisions that are
made by lower management need approval of top management to make it work in practical.
Flat organization structure with Broad span of control.
PRAN Departmentalize the organization into following departments:
I. Marketing.
II. Project management.
III. Manufacturing & Production unit.
IV. Finance.
V. Engineering & Product research.
VI. Customer relationship development.
With external Staff personnel for legal and other advice and assistance.

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PRANS UNIFIED MANAGEMENT SYSTEM

FIG. 1.1: PRANs MANAGEMENT PYRAMID

T o p m a n g e m e n t

M i d d l e m a n a g e m e n t

S u p e r v i s o r y ( fi r s t l i n e ) m a n a g e m e n t

N o n s u p e r v i s o r y ( e m p l o y e e s )

LEADERSHIP STYLE:

PRAN follows a hybrid leadership style, which is a mixture of participative and free
rein leadership style, where top managers set objectives and employees being relatively free to
do whatever it takes to accomplish those objectives but most of the time they follow

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democratically decision making procedure, thus participative. They give their employees the
authority to use their skills and talent to grow PRAN. They enable workers by giving them
education and tools they need to take decisions. Top managers of PRAN always set short term
objectives to their employees to fulfill and try to have a good communication among the workers
so that they evaluate the performances of the employees. The top managers of PRAN try to
become a role model to his subordinates and peers.

CONTROLLING FUNCTIONS:

PRAN has developed performance standard on the basis of systematic observation


and experimentation. Employees are bound to obey and work accordingly to this standard. Each
an every employee of the company is under constant monitoring procedure and their
performances are being recorded on time to time basis. PRAN gives rewards to its employees
based on their performance as well as take proper corrective action against employees when
needed. Controlling the whole company is done under senior managers and under whom
supervisory management team works to monitor and control the whole organization.

MOTIVATION:

They always try to motivate individuals to pursue collective objectives through satisfying
needs and expectations, participation and influence processes. They treat employees as their core
asset. Since employee retention and increased productivity are important to us, they try to make
the employees satisfied through following ways:

Incentive scheme for all employees.


Medical support.
PRAN scholarship scheme.
Transportation and Canteen facilities.
Recognition and Career growth.

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Employee training and development.
Work environment.
They encourage their employees to take part in opportunities and programs that will add
to their aptitude to bring value and ensure further augmentation and the company.

They offer:

In-house learning opportunities are provided by managers working closely with


employees to structure appropriate on-the-job activities to meet identified
developmental needs.
They invite professional personnel from abroad for the development of their
employees. Professional certificates are provided at seminars, conferences or
other specialized workshops.

Staffing: PRAN believes that primary capital equipment of their business is


Brain power. Innovative and creative workers can help PRAN maintain their
reputation in market by delivering high quality products all the time with some
new innovative addition to their product line. PRAN follows staffing principle
for recruitment, hiring, motivating and retaining the best people available to
accomplish the companys objective. Thus PRAN
Tries to attract best workers by promising them good salaries with
incentives.
Motivates them by giving fringe benefits, incentives and bonuses.
Gives existing employees best job satisfactions. E.g. company car, house
rent, bills, promotions and other facilities to retain employees.

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Promotional Strategies

Promotional strategy:
PRAN uses different sources to communicate their target market. PRAN products use
those sources to attract more customers, sources like Local Cable, Newspapers, and Billboard
and when they launch any scheme in products, they use pamphlets to aware their customers.
PRAN products use the Electronic Media to attract the customer and give full information
about their products through this. PRAN also uses vehicle writing method and posturing for
their product advertisements.

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They also promote their product with the help of their packaging system. In packaging,
they mainly follow a strategy that the product will be packaged in an attractive form, that will
make consumers interest on their product. Its products are packaged in different levels in
variation of quantity. So people can afford it easily.
PRAN follows combination of both Push and pull strategies in their promotional
strategy.
Other type of promotion strategies those are used by PRAN are as follow:
1. Personal selling: Personal selling creates a good relationship to the dealers, distributors,
wholesalers, retailers and with customers. The company's sales people also play a vital
role in personal selling but trends these days is PRAN hires representatives for their
personal selling purpose. This way of promotion is not used by PRAN very frequently
other than when some new products have been introduced to the market.
2. 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 of
PRAN by customer. Some types of sales promotion are stated as under:
Coupons: This is the oldest, most widely used and most effective sales
promotion. It encourages repurchase. It is effective for consumers who are very
price sensitive. Newspapers are widely used to distribute coupons. FSI (Free
Standing Insert) through newspaper is also widely used. Coupons help company
to achieve sale through PULL strategy and reduces the dependability on
retailers which is authentically followed by the PRAN Company.

Contest: This is a promotional tool where consumers compete for prizes or money
on the basis of skills or ability. Consumers have to fill up some forms for entry
into the competition and needs to show some proof of purchasing the product. It is
widely practiced in Bangladesh by newspaper companies. For example, during
World Cup Football and in the time of various traditional festivities of Bangladesh
we got to see such contests like this.
Sweepstakes: Here winners are determined purely by chance. It is a kind of game.
For example: Scratch card in PRAN mango juice. Like the following bullets:

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Bonus pack: Offering extra amount of product at a regular price is a type of
bonus pack offer.
Price off: Reducing price of the brand for a short duration can influence
consumers very strongly at the POP when price comparison is made.
Event Marketing: A type of promotion where a company or brand is linked
to an event (Fantasy Kingdom concert organized by PRAN for local
consumers).

3. Public relation strategy: PRANs public relation strategy:


Creates and places newsworthy information in media and television to attract
customers.
Publicity of specific new products.
Maintaining Good relation with Government officers which comes under
lobbying strategy.
Maintaining good relation with investor.

PRAN hopes that through their Promotional strategy plan they will increase the
competitive market share in foods and beverages industry. PRAN food products provided
superior value to its customer whom they promised through advertising. So the customers
are loyal to the brand and build long term relationships.

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CONCLUSION
From 1980 till now PRAN has maintained their accurate standards through improving quality,
customer satisfaction and developing product according to everyday market needs. Due to this
constant quality standard PRAN-RFL group of industries is now one of the most successful
industries in our country with wide variety of products. Their success is not only saturated within
country as they have started exporting their products abroad and gained a very good reputation
for high quality.

Recommended strategies for survival in future market:

To compete with the competitors in an innovative and technical way.


Carefully analyze the economic condition of the country.
To improve technological and technical support of the company.
The company should justify the legal concern in appropriate way.
The company should have clear concept about market (national & international) industry
demand.

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References
Websites
Google (PRAN logo, sample reports, SWOT Analysis strategies etc.) n.d.
< http://www.google.com>
Business plans How to write a business report? 2009
< http://www.bplan.com>
PRAN food products (Our Company, Products) n.d.
< http://www.pranfoods.net>
PRAN ACML (About us) n.d.
<http://www.acmlpran.com>

Software
1. Business Plan Pro Software.
2. Business-in-a-Box.

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