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Business Strategies in PRAN

INTRODUCTION

Objectives

Methodology

Benefits of the study Limitations




The main objective of this report is to investigate the implementation of businessstrategies in the organization. We know that business strategies are all the strategies that build

profitable customer relationship. In our report we try to find the strength and weakness of strategies and the further improvement of business strategies in manufacturing company.

The study is mainly an exploratory one and survey method used to collect informationfrom primary sources. In addition, related secondary information collected for research

purpose.

The primary data collected by taking interview of the members of the corporatemanagement and the existing customers of PRAN Group. In addition, related secondary dataare collected from Internet, different published articles, books, prospectus, newspaper,

journals, magazine, other publications and written information providedby the company.

This study may provide substantial benefits to the managers of any organization,economists, academician, lawyers, business students, regulatory bodies, decision makers, bankers, financial analysts and much other person having concern on business decision.

There were some limitations in preparing this report. There is prohibited access tointernal data source to some extents. There are two types of information:

i) General Information and

ii) Confidential Information.

The Company has a lot of confidential information which they don¶t deliver.Sometimes managers are not willing to deliver appropriate information .

Objectives

Methodology

Benefits of The Study

Limitations



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Company Overview

PRAN stands for Programme for Rural Advancement Nationally. RAN is currently the mostwell known household name among the millions of people in Bangladesh and abroad also.Since its inception in 1980, PRAN Group has grown up in stature and became the largestfruit and vegetable processor in Bangladesh. It also has the distinction of achievingprestigious certificate like ISO 9001:2000, and being the largest exporter of processed agroproducts with compliance of HALAL to more than 70 countries from Bangladesh. It has amajor market in India, United Kingdom and Saudi Arabia.

PRAN has also been exporting to USA, Canada, Austria, France, Germany, Belgium,Switzerland, Singapore, Malaysia, Korea, Japan, Australia, Qatar, Kuwait, Oman, Bahrain,Lebanon, Silence, Pakistan, Nepal, Myanmar, Bhutan, UAE etc. PRAN Foods Limited, UAEsigned an agreement with Jaleel Holdings LLC, Dubai at PRAN RFL corporate centre. Underthe deal, Jaleel Holdings LLC will distribute PRAN product worth 2.0 million Dirham permonth to different global chain shops in United Arab Emirates (UAE ).

PRAN is the pioneer in Bangladesh to be involved in contract farming and procures rawmaterial directly from the farmers and processes through state of the art machinery at ourseveral factories into hygienically packed food and drinks products. The brand PRAN hasestablished itself in every category of food and beverage industry and can boost a productrange from Products, Carbonated Drinks, Confectionery, Snacks, and Spices to even Dairyproducts.

Today, our consumers not only value PRAN for its authentic refreshing products drinksproducts , but also for its mouth watering quality confectionery products with high visualappeal and exciting texture. We intend to expand our presence to every corner of the worldand strive to make PRAN a truly international brand to be recognized globally.



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Current Market Situation

PRAN Group was born in 1980. Keeping in view the corporate mission of the Group they

have over the years diversified their activities in several areas. PRAN's biggest asset is their

competent team of hands-on managers and dedicated employees.

PRAN is Bangladesh's largest grower and processor of fruits and vegetables. Their contract

growers cultivate the choicest fruits and vegetables, which are processed in their modern

and hygienic factories to highest quality & international standards. PRAN founded 28 years

ago by many entrepreneurs with experience in the product market of Bangladesh. Different

types of products increasingly popular today, forecasts suggest that annual sales of such

products will grow at more than 49 percent for the next 3 yea rs.

Because our population is increasing day by day and products needed is also increasing. To

gain market share in this environment, PRAN must carefully target specific segments with

features that delivers benefits value by each customer group.




Pr oducts nd rv ic s of PRAN Gr oup

PRAN Products



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SWOT Analysis of PR AN

STRENGTH

largest fruit and vegetable processor companyy largest exporter of processed agro products with compliance of HALAL to more than

70 countriesExperienceGreater sources of financeGreater control over sources of raw materials Huge food & drinks VarityHuge distribution network

y Food & drinks quality is good.y Retailer gets more profit then MNC

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Disproportionate promotions strategyControlLack of first-mover s advantageIn-house media planning and promotional activitiesDistance and transportation costPerishable item

OPPORTUNITY

Huge demandOverseas expansionNatural resourcesCheap laborGovernment incentivesLow production cost

THRE ATS

Price wars with competitorsStricter health and technical standardsReduced benefitsDirect Competition

y MNC



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Company s Strategies for Strategi Formulation

There are three Strategic Formulations.

Overall cost leadership. Differentiation Focus

Overall E ost leadership:

When the business works hard to achieve the lowest production and distribution costs so that i t canprice the products lower than the competitors and win large market share. ran Group

fallows this Strategic Formulation. They always tray to reduce production and distributioncost thus they can offer produc t in lowest price then their competitor. They win largemarket share for lowest price and good quality products.

Differentiation:

When the business concentrate on getting superior performance in an important customerbenefit area valued by a large part of the market. The firm seeks for quality leadership. ranGroup does not fallow Differentiation Strategic Formulation.

Fo E us:

When a business focuses on one or more narrow market segments. And for attracting thecustomers it may use either cost leadership or differentiation. PRAN Group does not fallow FocusStrategic Formulation.



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Strategi Allian es of the organization

There are four Strategic Alliance of the organization.

Product or Service Alliances Promotional Alliances Logistics Alliances Pricing collaborations

Produ T t or Servi T e Allian T es

One company licenses another to produce and sale its products under some specific termsand conditions, or two companies jointly market their complementary products or a newproduct. PRAN Group does not fallow this Strategic Alliances.

Promotional Allian T es

One company agrees to carry a promotion for another company s goods or services. Andunder this situation both companies are benefited; manufacturer for better promotion andpromoter for special price.PRAN Group does not fallow this Strategic Alliances.

Logisti T Allian T es

When one company offers logistical services for another company s product for a long-termbasis under mutual agreement. PRAN Group does not fallow this Strate gic Alliances.

Pri T ing Allian T es:

When two or more companies join in special collaborationsto fixed price. And in this situation not onlythe business houses, the ultimate customers are also benefited. PRAN Group does fallow thisStrategic Alliances. They join with BD Food to fixed their product price thus business house andcustomer benefited.



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B usiness Strategy

OBJE CTIVE :

Become as t e Bes t food brand in t e Bang ladesh

Improv ing the cus tomer sa tisfac tion through the good qua lit of produc ts

Turn in prof its from the f irst year of opera tions.

The crea tion of un ique, innova tive and hea lthy produc ts that will differen tiate PR fromlocal beverage

Four new Ou tlets in nex t f ive years in other c ity of Bang ladesh

KEY S TO SUCCESS FACTORS:

S tore des ign that will be bo th visually attractive to cus tomers, and des igned for fas t andeff icient opera tions.

Employee training to insure the bes t produc ts prepara tion techn iques.

Marke ting strategies a imed to build a so lid base of loyal customers

The produc ts we serve are of the h ighes t quality. They comb ine this qua lity with grea t serv ice and a tmosphere

Customer sa tisfac tion with high qua lity produc ts and serv ices

Compe tent managemen t staff whose makes the foods fresh and good qua lity,

Managemen t that treats every emp loyee equa lly. They crea te an a tmosphere whereemployee's love com ing to work and can earn good money.

their comm itment to prov iding exce llent quality food a t all times

Exce llent Customer S ervice. Qu ick de livery and each cus tomer w ill be treated as wou ld anhonored gues t in our homes

Produc t quality. No t only grea t food bu t grea t serv ice and a tmosphere

The crea tion of a un ique, innova tive, upsca le atmosphere that will differen tiate, Fresh produc ts daily will give cus tomers a un ique exper ience as we ll as exce llent produc t.

Maintain good re lationsh i ps w ith reliable supp lier R epea t customers.



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MISSION:

Establish PRAN as the Local leading source of healthy energy in the form of freshly products with

an uncompromising commitment to making a difference through their values.

VISION:

Explore all over the Bangladesh from fresh foods, providing for all their needs always with the

assurance of outstanding quality.

Marketing Plan

MARKETING OBJE CTIVES

Max imum prof it marg in

The b ig pr ice ob jective P R N that they prov ided h igh qua lity produc t and sa tisf ied the cus tomer with its produc t then P R N taken prem ium pr ice to their cus tomer o ther than our compe titors.PR N con tain max imum prof it marg in other than their compe titors.

Q ual ity leadersh ip

The ma in ob jective of P R N that its respons i bilit y to prov ided bes t quality wh ich they prom ised

to their cus tomers. P R N successfu lly fu lf ills their prom ised. P R N ma in ob jective to prov idequality produc ts that satisf ied the cus tomer need and their requ iremen t so P R N de liver thequality produc t.

L ong rela tion sh ips w ith c u stom er

PR N prov ided super ior va lue to their cus tomer who they prom ised throwing adver tising. S o thecustomer are loyal the P R N brand and bu ild long term re lationsh i ps.



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C ommuni ca tion objec tiv e

PR N use d ifferen t sources to attract their targe t customer. The ob jective of P R N producesawareness in our cus tomer abou t new produc ts and a lso produces awareness to new cus tomer abou t PR N. P R N a lso tells their cus tomer that they prov ide pure produc ts to their cus tomers.PR N a lso g ive the know ledge of their produc ts give you energy and good taste. P R N alsogives message that their produc ts are good for your hea lth.

St ra t egy marke tin g objec tiv e

To bu ild unique d istr i bution sys tem that prov ides ub iquity at low cos t.

To bu ild high speed, eff icient and ver tical integra ted manufac tur ing capab iliti es to gain lowcost advan tage.

To reduce energy consump tion dur ing produc tion to increase adver tisemen t activities.To redes ign packag ing to a more a ttractive and fam iliar.

To make innova tion in produc t so that it become more por table and in conven ience or ientedform.

To improve produc t quality as ever prov ide

PRICING STRATE

GY

PRAN set it product price on value pricing method. PRAN selling its products at price added costand profit margin and also keep in mind the key competitors price. PRAN provide it customerquality fresh products that provide customer good health and enjoyment.

flavored is a main objective that its responsibility to provided best quality who they promised totheir customers and they fulfill their promised. PRAN is a big price objective that they providedhigh quality and taken premium price to its customer. PRAN contain maximum profit margin isanother objective of pricing strategy. PRAN provided superior value to their customer who they

promised throwing advertising.




DIST RIBU TIO N ST RATE GY

A disy

� ibution strat e y d e ines how you ar e going to mo ve produ cts from point of creation topoint s of con sumption, in a co st-e ff ec tive mann e r. T h e e ff ec tive n ess of di stribution co ve rag e and pra ctice is of paramount importan ce in a chiev ing th e d es ired fruit produ cts sales .

T h e ir lo cation ve ry attra ctive b ec au se that pla ce also ve ry famou s for Food Str ee t. T h e re is noan y fres h fruit produ cts shop. That pla ce is also attra ctive for produ cts b ec au se th e re is noprodu cts corn e r but th e re ar e man y good food r es taurant s like KF and Pizza Hat and oth e rs. Sothat i s ad vantag e of pla ce for PRAN.

T h ey actuall y distribut e our produ ct in two wa ys

1. B2B (B usin ss to B usin ss) 2 . B2 C (B usin ss to Consu r)

W e show our di stribution chann e l in chart b e low:




PROMOTIO NAL ST RATE GIES

PRAN u se diff e rent sour ces to communi cat e th e ir targ e t mark e ting. PRAN u se tho se sour ces onthat th e mor e cu stom e r attra ct lik e Local Cabl e , Ne wspap e rs, Billboard and wh en th ey lun ch an y

sch em e in produ cts th ey u se pamphl e ts to awar e th e ir cu stom e r. PRAN u ses th e chann e l toattra ct th e cu stom e r and gi ve fully information about produ cts through th ese Elec troni c m edia.

As th e ir targ e t con sum e rs ar e Old, Childr en and all h ealth con sc iou s p eopl e , for thi s rea son w e

promotion our produ ct to gi ve ad ve rti se in t e lev ision, radio. W e also u se ve hicle writing m e thodand po sturing for our produ ct ad ve rti se m ent.

T h ey also promotion our produ ct with th e h e lp of our pa ckaging sys tem. In pa ckaging w e mainl y

follow that th e produ ct will pa ckag ed in an attra ctive form, that mak ec on sum e rs int e res t onour produ ct. It pa ckag ed in diff e rent l eve ls in variation of quantit y. So p eopl e can afford it ea sily.



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P rod u ct forecas t s:

This types of produc t continuing in the marke t on the bas is of their fea tures, reasonab le pr ice,standard ma intain and a lso qua lity. They are a lso prepare and de termine that their produc t will bequality full and reasonab le pr ice that s why they are op timist abou t their produc t that will becontinue a cer tain time.

C ont rols:

they believe in best quality. In producing their product we maintain quality as well as quantity.For control the products quality they will import best quality equipment from abroad. they alsostandardization their product from their expert researcher. their whole production process

mainly base on computer for this reason is done by a very systematic process. they produce

their product which has no harmful chemical. That s why these products have no side effectand every one in every age can use their entire product frequently.



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Assessment of Risk

EVALUATE WEAKNESS OF B USINESS

Their ma in weakness is their bus iness is sma ll si e bus iness, that s why they have a very sma ll cap ital. S o they w ill able compe te with the lower pr ice compe titor. And their resources are a lsolimited in compare to compe titors. The company can improve or e liminate the r isk by :

Eva luate the se tup cos t in r ight manner

to compe te with the compe titors in an innova tive techn ical way.

carefu lly ana lyze the econom ic cond ition of the coun try.

To improve techno logical and techn ical suppor t of the company.

The Company shou ld justify the legal concern in appropr iate way.

The company shou ld have c lear concep t abou t marke t (national & interna tional) indus trydemand.

NEW TECHNOLOGIESthey don t implemen t any k ind of new techno logies in pr imary s tage of their bus iness.

CONTINGENCY PLAN

In the time when they bought their factory land they saw that there is a big possibility tointroduce a Mineral Water as a side business. But now they don t take any step for this

business. In future, they have a plan when their business is well established we will introduce aMineral Water in our business area.




CONCLUSION

Findings

RecommendationReference



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Findings



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Recommendation




R efere ce

Taha i a Akh er

Lecturer Department of FinanceFaculty of Business StudiesUniversity of Dhaka

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http:// www.ba ngla p dia. o rg/

http:// www. inve stop e dia. co /

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