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East West University

Marketing Management

Assignment Topic
Marketing plan of Pran

Course Instructor
Prof. Dr. Serajul Hoque
Prepared By
Nur-A-Jahid
Section No - 3
ID: 2013-1-95-017

14th February, 2014

Prof. Dr. Serajul Hoque


Faculty, MBA Program
East West University
Dhaka, Bangladesh

Subject: Marketing Plan

Dear Sir,
I wholeheartedly thank you for giving such a wonderful opportunity to make a
Marketing plan for MBA506 (Marketing Management) course. It has been a
wonderful opportunity to learn and it has given us many insights into the
Marketing scenario of Bangladesh.
In business; marketing is a tough job. Along with investment, there is also the
need of proper planning, market information, strong management, training and
follow up programs. I believe marketing key person who have go into a business
taking all aspects of the business into considerations are likely to do better
than others. I went through a very tough time to which business I select for a
Marketing Plan. And finally I have designed a business plan of Pran foods
I tried really hard to make a comprehensive analysis. I have conducted some
research that was possible under the scope of the knowledge that I have
gathered collectively so far. I hope that I have managed to live up to your
expectations and come up with a feasible business marketing plan.

Sincerely,

ID : 2013-1-90-003

Table Of Content
Sl

Topic

Introduction

Executive Summary

Situation analysis

Customer
Competitors
Company
Context
market opportunity and issue

Objective

Marketing Strategy

Target marketing

Positioning

Page

Market mix

10

Review and control

11

Marketing organization

12

Contingency plan

13
14
15
15

INTRODUCTION
PRAN in Bangladesh are blessed with a climate ideally suited to agriculture,
specially fruits and vegetables-rich in taste and flavor: sweet, mellow and juicy.
PRAN Group is the Bangladeshi food-products corporation based in Dhaka,
Bangladesh. founded in 1981. It it the largest food and nutrition company of
Bangladesh, It is the largest exporter of processed agro products with the
compliance of HALAL & HACCP to more than 82 countries.The Company's
principal activity is the manufacture and sale of Juice, Snacks, Soft Drink,
cakes and dairy products.
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.
As a part of Marketing Management Course I have to do a Marketing Plan and
select PRAN as my desire brand. This is an overwhelming opportunity for me to
learn how to write a successful Marketing Plan.

This is the first and largest ISO 9001 certified food processing industry in
Bangladesh.

Origin

This Marketing Plan is a requirement for the course on MBA506 (Marketing


Management), assigned to me by Prof. Dr. Serajul Hoque , the course
instructor. It is necessary to know how to make a Marketing Plan, because
when we start any business first we have to make proper Marketing Plan. And
my course instructor Prof. Dr. Serajul Hoque sir always believed that
having a practical knowledge of issues pertaining to being an Marketing person
is more valuable than being involved in only text books and so on. He also
believes in making discoveries, and emphasizes on learning ourselves. Hence, I
tried my best to show-off the knowledge and information which I gained from
primary data source, the real-life, and practical lessons given to me during the
classes.
My Marketing Plan is on Pran Food Industries Limited

Objective
To come up with the detailed analysis of the aspects relevant to. how to
conduct a Marketing Plan and its implementation.
To learn about the ways in which forecast and anticipations are made
and used in practical situations relating to marketing.
To analyze the issues that would be relevant to the contingencies of the
business and to be able to accumulate the things that we have learnt till
now
To gather knowledge on the writing and developing of a proper marketing
plan would be essential if we will be a part of any businesss marketing
management in the future.
To enable myself to be more effective marketing person.

Scope:
The market of soft drinks and beverage is very competitive. It may say that as a
strong market. This project paper is prepared as a marketing plan of a product
of AMCL which brand name is PRAN.

Methodology
In carrying out the activities we have followed certain strategies. We collect some
information from the internet and we also conduct a survey among the students.
Finally, we analyze this information to complete the Marketing Plan.

We have put down the methodology of carrying out these activities in according
to the sections mentioned next.

Data Sources
Both primary and secondary data have been used to come up with the Marketing plan
report. Our source of data is internet, other company profile, published

magazine by other company etc. we also collect information from our


experience.
Some of the sources of the primary data are:
Websites and internet pages.
Personal Interviews
Consultation of the secondary data sources
Surveys
In depth interviews, mainly of the potential customers.
Guidelines provided by our faculty during lectures.
Books and journals on Executive Education Centers.
Periodicals regarding the demographic characteristics of Bangladesh
and deciding on which market the service should be introduced.
Tricks of the trade we picked up from other courses.

The Limitations
The study suffered a number of limitations. At times I was thinking that I might
not be able to submit the Marketing Plan on time. But thanks to Almighty that it was
not happen. The limitations are:

Lack of time for preparing the report.


Unavailability of information
Unconfirmed accuracy of certain information acquired
In cooperation of respondent

Lack of the part of experience of the researchers.


Lack of information from the primary source.
The comparisons may not be effective enough.

Executive Summary
PRAN group of companies is one of the leading business institutes of
Bangladesh .I have prepared report based on Practices of SHRM of Pran Food &
Beverage . To prepare this report I have followed informal questionnaire. In the
report I discuss about Company overview, literature review, Business strategy
of the PRAN Food and Beverage, relationship between business strategy and HR
practices of the organization, influence of business strategy various HR
practices .PRAN encourage their employee to take part in opportunities and
programs that will add to their aptitude to bring value and ensure further
augmentation and achievement for themselves and the Company. Every year
they are challenging their previous success. They are pleased with that what
they have achieved previously but not delighted with that. (Pran Food, n.d.) and

Beverage every endeavor is to outweigh their past performance. They are


growing and growing in the global market. At last I shortly discuss practices of
Strategic Human Resources Management in Bangladeshi local company PRAN
Food and Beverage.

PRAN is currently the most well known household name among the millions of
people in Bangladesh and abroad also. Today, our consumers not only
value PRAN for its authentic refreshing juice drinks products , but also for its mouth
watering quality confectionery products with high visual appeal and exciting texture.
We intend to expand our presence to every corner of the world and strive to
make PRAN a truly international brand to be recognized globally. To make this
happen we are introducing a new product named Coconut Juicepak in the Bangladesh
market and for the first time ever we are exporting the new product into Srilanka &
India.
The product will contain low carbonate & pure coconut flavor. We will target the middle
aged, young generation & childrens. And beside this, we are targeting the Srilankan &
Indian market for the first time. The primary marketing objective is to achieve first
year market share of 3 percent unit sales of 240,000.

Company Overview
Background
PRAN started its operation in 1981 as a processors fruit and vegetable in Bangladesh.
Over the years, the company has not only grown in stature but also contributed
significantly to the overall socio-economic development of the country.
PRAN is currently one of the most admired food & beverages brand among the millions
of people of Bangladesh and other 82 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 200 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. The company is complaint to HACCP &
certified with HALAL which ensures only the best quality products are reaches to the
consumers table across the Globe.

PRAN 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.
Selected awards, certifications and rankings
PRAN has received IMS certificate as the first food processing company in Bangladesh. IMS is
known as combination of Environmental Management System ISO14001:2004 and British
Standard Occupational Health Safety Assessment Series (BS OSHAS) 18001:2007

Companys Logo

PRAN Group
Type

Private

Industry

Food processing

Founded

17 March 1981

Founder(s)

Maj Gen (Retd.) Amjad Khan Chowdhury

Headquarter PRAN-RFL Center, 105, Progoti Sarani, Middle


s

Badda, Dhaka1212, Bangladesh

Area served

South Asia, Africa, North America, Europe, Middle East

Key people

Maj Gen (Retd.) Amjad Khan Chowdhury (CEO)

Products

Juice, drink, beverage,confectionery, culinary,snacks, biscuits, bakery,


dairy

Revenue

123.3 billion (2012)[1]

Employees

30,000

Website

http://www.pranfoods.net

Corporate Office:
Head Office: PROPERTY HIEGHTS, 12 R.K. Mission Road, Motijheel, Dhaka-1203,
Bangladesh.
Factory: Ghorasal, Palash, Narshingdi, Bangladesh.

Mission & Vision:

POVERTY & HUNGER ARE CURSES

Mission :
To generate employment and earn dignity & self respect for our compatriots through
profitable enterprise.
Our Vision: Improving Livelihood

Market and Products


Market Situation Analysis:
Water is everywhere But just a little that is clean
Water, The fountain of all life. Even a toddler will tell you it is a prime need of
the body. Sixty per cent of our body weight is made up of it. Water can also be
the cause of much misery. Specially in Bangladesh, where contaminated water
continues to bring down millions with diseases such as diarrhea, dysentery,
typhoid, jaundice and gastro-enteritis.
Getting pure drinking water from municipal taps in cities and towns is now a
luxury. At home most people are forced to either bottled water or install
purifiers. While traveling or eating out in restaurants, buying bottled water has
become a necessity. This need has seen an explosion of companies marketing
safe drinking water in bottles across the country.
Till about ten years ago branded bottled drinking water were seen to be an item
of middle class and elite consumption, mostly produced by multinational
companies through their Bangladeshi arms.
The total size of the branded bottled drinking water market in Bangladesh is
about one thousand corer, consumed by some 50 million households (Source:
Bangladesh Retail Audit).

Major industry players in Bangladesh

Currently there are so many juice companies in our country. Among them pran
is the leader of juice sector in Bangladesh. Except pran, Lemu, Mojo, RC cola,
Pepsi, URO Cola, Virgin, Fruti, Coca cola, 7up, Tiger. Shezan Juice, Rasna.
Here we are showing current situation of regular branded bottled drinking
water which are very much popular in Bangladesh.
Currently MUM is being considered as market leader in this business and
others are as followers.

Frutika

Mojo,

Rasna
Starship

URO

Shezan Juice
Fruti

Merinda

Mangoli

Market share of different brands in Bangladesh is given below, here we have


given the collective data based on the regular bottled water marketed companies
in Bangladesh, we are concluding by market leader, challenger & followers.

Name of brand

Market share in %

Pran Fruto

36%

Frutica

18%

Starship

18%

Mangoli

9%

Sejan

9%

Rasna

4%

Others

6%

Source: Bangladesh Retail Audit-2009

36%
Frutica
Starship
Mangoli
Sejan
Rasna
Other
Pran fruto

Market summary

Customer
PRANS TOTAL CUSTOMER REACH 300 million (approx) all over the world
specially South Asia, Africa, North America, Europe, Middle East as per
their website.
PRAN, the largest exporter of processed food from Bangladesh, had a vision of
creating a huge demand globally of those agro based products produced by
native farmers. The key was to process the agro products and increase shelf-life

thereby. Starting successful journey to export market in 1996, PRAN currently


exports to over 82 countries.

Product Review:
The Company's principal activity is the manufacture and sale of Juice, Snacks,
Soft Drink,, Carbonated Soft Drink , Confectionary ,Culinary ,Biscuits cakes
and dairy products.
Among many of their products PRANs main product is their fruit juice and
fruit drinks, which is very popular among the existing market.
The product line is: The deliciously 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.
Fruit juice in glass bottle (returnable):
It is hygienically produced by state-of-the-art machinery. Available in mango
flavor, made from fresh local ripe mangoes.

Fruit juice in glass bottle (non-returnable):


This category of juice is found in non-returnable glass bottle in flavors
of mango, guava and orange.

Fruit juice in aseptic pack:


Available flavors in this category are: mango, lemon, orange, pineapple,
guava and mango-pine., fruits cocktail and litchi.
The name of the available packs are :

PRAN
PRAN
PRAN
PRAN
PRAN
PRAN
PRAN

Joy
Mango Juice Pack
Premium Mango Juice
Juice (Premium)
Apple Nectar
Junior Juice
Frooto

Fruit juice in can:


The fruit juices in cans are hygienically produced by state-of-the-art machine
from flavors of mango, orange and guava.

PRAN Juice Tin Can


Fruit Cocktail

Mango

Tamarind

Orange

Banana

Guava

Pineapple

250ml

250ml

250ml

250ml

250ml

250ml

250ml

PET bottle
Available flavors in this category are: Kagozee , Guava, Mango, Orange, Apple

PRAN Juice
Guava Juice

Mango Juice

Orange Juice

Apple Juice

250ml

250ml

250ml

250ml

Review of distribution:

Pran primarily use existing distributors for distributing their product Pran
Juice then; they make some new channels and assign some distributors to
promote their product to all over the country. So pran deal with this chain:
Manufacturer > Wholesaler>

Retailer> Customer

Figure: Distribution Channel


Company using mobile shop in the shopping malls, offices and crowded areas
so that people can purchase the product easily when they like to consume. We
will make our consumer by Value Delivery Network.

SWOT Analysis:
Strengths:
Government support: Being the biggest local force in the industry AMCL
always had government by its side. Government has been supporting PRAN in
many ways like subsidies, export subsidies, tariffs on foreign competitors etc.
First movers advantage: PRAN entered the market when the product was still
very new to the consumers and there was little or no presence of any other
local companies with such investment. Therefore PRAN had the first movers
advantage which they are still enjoying till now.
Internal strength: AMCL has a very powerful management team to guide a
strong gigantic workforce. Despite its huge size PRAN has been able to
maintain labor productivity and increasing sales. Its labor productivity is twice
as much as any other local company in the market (Not foreign companies).
Market share: PRAN AMCL has a great competitive advantage over the other
competitors. As mentioned earlier it is the largest fruit and vegetable processing
industry in Bangladesh and holds the biggest share in markets in Bangladesh
among the local companies. PRAN has the largest sales in fruit drinks after
Coca-Cola and PepsiCo.
Weaknesses:

External threats: Too much competition from international organizations, for


example Coca-Cola, PepsiCo, RC-Cola, Virgin Cola, Rasna (India), Shezan
(Pakistan) etc.
Internal weaknesses: Large size of the business and workforce makes it
difficult to manage perfectly. As a result it often causes internal conflict.
Opportunities
Existing competitor of the current market is not that much strong which
the pran company has.
Pran can be export to other countries.
Existing distribution channel is being used.
High growth rate in this industry.
Threats

Competitor can produce the same product.


Downward pressure on pricing.
Political instability, economy etc.
New innovation from other competitors could be a threat.

Marketing Strategy
Marketing strategy
Our target strategy will be mainly based on Marketing strategy and Sales
forecast

strategy.

We

are

implementing

the

technique, existing market, new product.


The definition of marketing strategy says,
Find the demand of market

Develop your product

Earn profit by customer


satisfaction.

product

development

We have done our survey, we have talked with the distributors,


wholesalers, retailers, our potential customers, and we know what demand
we have in the market, now its time for the implementation.
A five liter can is being sold 55-60tk depending on the brand, where as we
are launching our own brand on only 55tk as the labor is still cheap in
Bangladesh.
We will do some serious type of promotional activities, we have to make
such a impression that people has to come to us, from branding to
launching, from distributor to retailer to customers, we have to be very
much conscious to capture their mind and heart. No matter what strategy
do we need to follow, we will do, our main target will be maximizing the
profit for our organization, if our organization gets benefit, and we get
benefit too.
We will call the press, TV, radio media on the product launching ceremony,
we will give each of the staff a 5liter of Bottled drinking water as a gift, we
will try to bring health minister for the launching ceremony, so that
people may understand that even the government is also concern for the
common peoples health.

Mission: our main mission to be the market leader of bottled drinking


water industry in near future.
Every company wants to be a giant in market, so do we, currently we are
in a position of zero but we have a unique and standard product which will
be our key of success. Innovative techniques will be added to capture the
market share, thats why we have hired some of the most experienced
sales and marketing team for our company.

Branding:

Branding is a very important part of any product, a product always known


by its brand name, image and quality. We have chosen this word BLUE
because its the image of clean and beautiful water.
There are typically four levels of meaning conveyed by a brand name. The
following is an analysis of what BLUE brand names convey

Brand
Level

BLUE Mineral water

Attribute

Premium quality, high prestige

Benefit

Pure water, Good health

Value

Healthy life

Personality

Dependable, healthy

Market segmentation:
The preparatory point for discussing market segmentation is mass-marketing.
The market for any product is normally made up of several segments. A
market after all is the aggregate of consumers of a given product. And,
consumer (the end user), who makes a market, are of varying
characteristics and buying behaviour. There are different factors contributing
for varying mind set of consumers. It is thus natural that many differing
segments occur within a market.
In order to capture this heterogeneous market for any product, marketers
usually divide or disintegrate the market into a number of sub-markets/segments and
the process is known as market segmentation.

Attributes of effective market segmentation:


Identifiable, measurable, substantial, accessible, differentiable, profitable,
durable, compatible, actionable.
Now we will describe PRAN juice market segmentation under the umbrella of
age, gender, occupation, income, location, social class, lifestyle, personality and
behavioural variables:
AMCL (PRAN) company offers best quality juice with different packages to
customers at a very competitive price. Depending on the market researchers

information and considering the growing depend of different juices PRAN is in


the top position.
Age
PRANs primary target was only the young generation where the age may var y
from 16-27. But it is not limited within this age. It has also spread out
among the children noticeably as well as the people above 27 years
Gender
Both young boys and girls are the target market for the PRAN juice. It is not
specially made for any particular gender
Occupation
Occupation is not clearly defi ned for the target market of Pran juice;
however where the age varies within the young generation as well
as c h i l d r e n s o i t c a n e a s i l y b e u n d e r s t o o d t h a t m o s t o f
t h e m w i l l b e whether student or doing any job or business
Income
PRAN juice preserve 500ml, and 900 ml Orange, Mango, Cocktail Special
juices which will be totally sugar free but sweet. They keep their price relatively
low than other soft drinks and fruit juice. The whole production process is in
strict conformity with international standards, and constant research and
development all products. Pran Juice provided superior value to their customer
who they promised throwing advertising.
Location
Almost all t he places of urban and r ural area are under
t h e P R A N s distribution. Especially in each and every part of the Dhaka
and Chittagong city PRAN is available. The company has emphasized
on D h a k a w h e r e m o r e t h a n h a l f o f t ot a l s a l e s ( 5 2 % ) c o m e s f r o m
o n l y Dhaka.
Social Class
P R A N i s t a r g et e d fo r t h e u p p e r p a r t o f t h e l ow e r c l a s s , m i d d l e
c l a s s , upper middle class, and lower part of the upper class of the society.
Lifestyle
The targeted market of PRAN is basically young generation who like
gossiping, chatting, hanging with friends, making fun, watching movies,
listening music etc. PRAN has also focused on their customers lifestyle in
product, advertising and packaging.

Personality
T h e c u st o m e r s o f t h e P R A N a r e m o st l y a c t i o n o r i e n t e d
p e o p l e which include especially the experiences. It also focuses
the p e r s o n a l i t y o f t h e s t a t u s o r i e n t e d p e o p l e i n c l u d i n g
a c h i e v e r s a n d strivers.

Brand position of PRAN

PRAN is currently one of the most admired food & beverages brand among the millions of people of
Bangladesh and other 82 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 200 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. The
company is complaint to HACCP & certified with HALAL which ensures only the best quality products
are reaches to the consumers table across the Globe.

Target Market of PRAN juice

6.1 Age
Age is the major determinants in targeting the consumers. PRAN r e fl e c t s t h e
B a n g l a d e s h i c u l t u r e a n d i t r e p r e s e n t s yo u t h . F r o m o u r sur vey,
we have found that PRAN is most preferred in the age group between 2025 years (85% of 100). Moreover, the least PRAN preference comes from two
age groups: 25-35 years and 35-45 years, about 1%.
6.2 Sex

Beverage is used for thirst-quenching purpose and this product is gender


neutral, meaning there is no such kind of obligation to consume the product
for male or female. However, from our survey outcome, weve found that 71%
of the consumers are male and 29% are female from 100. All the
respondents are from urban location.
6.3 Occupation & Income
Consumers purchasing pattern, lifestyle and status largely depend on their
occupation and average monthly income of the family. T h e s o c i a l c l a s s o f
t h e t a r g et r e s p o n d e n t s w a s d et e r m i n e d by t h e i r income or taking
from family. PRAN is a low involvement product and it i s g o o d e n o u g h t o
c o n s u m e b y u p p e r a n d m i d d l e c l a s s . F r o m t h e sur vey
respondents, students are the most who purchase PRAN and t h e i r
i n c o m e l e ve l i s l e s s t h a n 5 0 0 0 t a k a . B u s i n e s s p e o p l e ,
p r i va t e ser vice personnel and other earning people consume less
amount of PRAN although their income is comparatively high than the
students

Target market:
Our target market would be whole Bangladesh including all the division of it,
main focus would be on the major cities first, as we are very much new in this
market, later on, we will move to different segments..
We are going to introduce the following product lines:
a)
b)
c)
d)
e)
f)
g)

20 liter plastic container


10 liter plastic container
5 liter plastic container
2 liter plastic container
1 liter plastic container
500mili liter plastic container and
250mili liter mini pack

Our packaging will be done in a way so that we may target any kind of consumer
& business market at a same time. Our target market is segmented in few
sections:

Business market:
20lts plastic container
10 liter plastic container
5liter plastic container

Consumer market:

5liter plastic container


2liter plastic container
1 liter plastic container
500mili plastic container and
250mili mini pack

We have described who is our business and consumer market earlier, we are
packing this big container as the business market dont buy their raw material
every day, specially which products are long lasted, so when they will buy, they
will buy in bulk, it would save their time and money if they buy it from us.
According to necessity of bottled water like monthly, weekly or daily basis
customer may buy our water from our retailers.
Business market usually means the offices, hotels, restaurants, community
centers and other commercial and social programs where large amount of water
is needed in daily basis. And for consumer market is actually for all sorts of
people.

Positioning
Pran always try to position their product through image differentiation,
because related marketing, and product differentiation. Pran will use logo and
short advertisement so that people can consistently see the advertisement so
the product will occupy a clear, distinctive, and desirable place in the mind of
the consumer relative to competitors product. Pran will use USP (Unique
Selling Proposition) for their product. To do brand differences that make a
better differentiation or that has the potential to create company costs as well
as customer benefits. A difference is worth establishing to the extent that it
satisfies the following criteria.

Important
Distinctive
Superior
Communicable
Affordable and Profitable

Marketing Mix:
Our marketing mixes for the product Pran are
.
Product
Variety
Quality
Design
Features
Brand Name
Packaging
Services

Target
Customers
Intended

Price
List price
Discount
Allowance
Payment period
Credit terms

Positioning

Promotion
Advertising
Sales proportion
Public relation
Personal selling

Place
Channels
Coverage
Assortments
Locations
Inventory
Transportation

Marketing Mix

For launching a product in the market, there is some


procedure that should be followed by every marketer to
move in the long run. Our product will enable our
Product

customers to have a different experience to try our juice.


They will be able to differentiate our product in quality
which is unique in the soft drinks market. They will not be
able to feel the same way for the other soft drinks in the
market.
Based on market share, competition, product identity and

Price

customers perceptions, we will set our pricing strategy.


As the market is getting competitive day by day so the

profit margin should be very low according to market


behavior. We can take advantage of economic of scale to fix
our pricing strategy. If we can reduce our cost than our
profit margin could be better than others.
From the market research, we received the followingProduct
Pran juice
Mojo
Frutica
Other soft

250ml
22tk
22tk
22tk
15tk

500ml
40tk
40tk
40tk
30tk

1 litter
70tk
70tk
70tk
60tk

drinks like
cola

As we have better economic scale and as a result we are


having higher profit margin than our competitors, so we
can spend some resource from our extra profit margin to
target a new market outside dhaka. Our new target market
Place

will be outside Dhaka city, where people will get our


product in a new reduced price.
We are also using mobile shop in the shopping malls,
offices and crowded areas so that people can purchase the
product easily when they like to consume. We will make
our consumer by Value Delivery Network.
The most successful advertising will be through BTV, NTV,
Channel I, ATN Bangla and RTV which are the most

Promotio
n

popular television channels in the country. We will also


use some bill-boards and leaflets and we will hold a sport
event to promote the product. We will also use our
experience so that we can create attention to the
customers.

Market Positioning:
This would be our first Bottled drinking water launched in Bangladeshi market,
there are few large companies who are currently capturing the market of bottled
water, a few of them are in top position as market leader and most of them are
following the market follower policy.
The big companies are dominating cause of their huge investment and
promotional activities, their product quality might not be that much of enriched
like ours but currently they are in existing market with a major market share.
Where we are coming as a new comer and we will follow the market follower
strategy for few years but we are not here to be a market follower, our main
target would be to be the market leader someday. Company like us cannot
challenge them with a unique product right now; we are only going to serve a
portion of the total market which is known as niche market but we are going to
act as market follower in this case.
Right now, our position is in zero. We have to take it higher than others, if we
can cross the barrier of 10% of the total market, we will create a threat to the
existing big companies and they will definitely change their marketing policies
and strategies.
We must understand that, we cannot dominant the market right now as the
major market share are on regular bottled water; we will create threat also
opportunity for them. Only a single advantage what we got is maybe for two to
three years we might dominant the niche market for our good will and brand
position and for high demand of Bottled drinking water but, after that other
companies will introduce same product maybe with our compete price or less as
their business is already established. So we cant just loose our growing market
share, in any mean we have to control the market share and grow it as much as
possible.

Strategies
Every company takes necessary steps to sell their product in the market, even
though our product is highly enriched but without any sales promotion activities
or strategy, we cant get a good response from our target audience.
People buy those whom they remember every time when they imagine that
particular product; we have to take strategies so that our brand name always
stays in their mind whenever they remember bottled drinking water. Whenever
they goes to shopping center or local stores, they must remember our brand,
that will be our first strategy, and obviously if our product dont show high
quality then these promotional activities wont have any effect. So our prior
strategy will be sell high quality product in a competitive price to the customers.
We will apply marketing strategy and sales strategy/ promotional activities, we
have done our survey, we have talked with the distributors, wholesalers,
retailers, and we know what demand do we have in the market, now its time for
the implementation.
Now the sales promotion activities would be as follow
We are taking some strategies for both our target customers and the distribution
channels.

For consumer:
Website:
We will launch a full dynamic website where we will give a full information
about our company, about our companys mission, vision and objectives,
messages from board of directors, list of the board of directors,
background of board of directors, our product range, our product
specification,
organizations,

our
ISO

standard

quality

certificates,

our

rating

certified

production

by

different

equipments,

our

distribution channels, our sales promotional activities, our new product


launching section, feedback section, contact section and a full bulletin
board and a discuss forum where both employees and customer can

interact same time so that we may get live feedback or suggestion from
our customers. Even we will have a live chat option, we will give add to
some paid popular website like yahoo, msn, Google, Amazon, CNN,
bbc.co.uk, gumtree.com, also on some of the most famous websites like
cell bazaar, clickbd, bdtradeinfo.com etc,

the daily newspapers websites

like prothom alo, janakantha, observer, the daily news, BDnews24.com.bd


etc.
Newspaper:
One of the oldest and most effective media is newspaper, will call a
newspaper media conference where we will give a detailed idea of our
company and our product and for what reason we want to launch this
Bottled drinking water in Bangladesh, we will invite all those medias who
has a min of 5% of the total market newspaper readers. If its possible we
would take the media to our factory for having an inspection, photo
session will be allowed but not every part of the factory, and we wont
revile our secrets to them as our business policy wont permit us.
Radio:
After 2006, radio industry has shown a huge improvement and currently
its one of the most famous media all around the country, a huge number of
old, young generation are fan of it, we will advertise our product in radio
too, maybe as sponsor of a radio program, or any message full commercial
related to health awareness.
Television:
A large number of invest would go on this sector, a full 30 second length of
TV commercial will be made by some celebrities and it will be shown of all
the television channels, also we will be sponsor partner of two soap opera
and four general program, mostly on interval and in news our commercial
advertize will be shown.
Discount/ scratch card:

Time to time for our promotional activities, we will provided 5-10%


discount or for cash back, we will give scratch card with the bottled water
container from different retailers and shops.
Quiz contest:
We will do a monthly quiz contest on news paper, a gift voucher of 500tk,
1000tk and 2000tk will be given to the winner.
Student sponsorship scholarship:
We will provide ten students of junior school, ten students of High school,
five students of college and two students of university a fulltime
sponsorship and scholarship depending on their merits and financial
status. Afterward maybe they will be given preference to be a proud
member of our company.
Social work:
Beautification of road or cleaning up the road or areas, tree plantation, or
making awareness of Bottled drinking water, smoking, drugs or anti
corruption campaign will be sponsor by us.

Wall poster:
we wont stick any poster on the wall, we dont want to destroy the
beautiful walls of the high rising building, we will use posters with thread,
all the papers will be made by recycle paper, front page will show our
product and advertize and back page will be shown re-cycle symbol and
signs for green and healthy environment.
Billboard:
We will print

PVC billboard in the important and VIP roads, Dhaka

Chittagong, Chittagong Commila, Commila-Shylhet, Dhaka Mymensing,

Dhaka- Rajhshahi highways, we will try to put the billboards on eye level,
not too far, not too near, as appropriate as it should be.
Banner:
Small 4X2 feet banner will be hang on VIP roads all around major cities
and Metropolitan areas, and in villages.

Game sponsorship:
Bangladesh is a game loving country.

We will arrange different type of

games as cricket, football and some local games in school, college and in
university.
Magazines:
We will publish a full four colored commercial advertize on the magazine
back cover or in inner page with full details of our product and its
usefulness.
Articles:
We will publish the usefulness of Bottled drinking water and our product in
details in newspaper, magazine, cooking books and in e-blogs, we will
maximize our profit also make people aware about the regular bottled
water and our Bottled drinking water.
Mobile SMSs:
As this is a very expensive media, we will do this kind of advertizing later
on when our company will be properly established, maybe after when we
will reach breakeven point, we will consider this strategy.
Email:
we will send email to different internet community like face book, hi5 etc,
also we will try to send email to executives of different companies making

aware about our product & usefulness, we will take professional help of
different

consulting

firms

to

collect

the

mail

ids.

Also

we

will

communicate with our wholesaler, distributor, agent, retailer through


mail; all the promotional activities or new offering will be announced
through mail.
Local announcement:
one of the oldest and most effective way, where there is no TV or radio or
medias, especially in villages, we will announced Micking, it is effective as
we have seen different product launching.
Public TV ads in road:
There are few Road TVs situated in Dhaka and a few major cities, we will
show our 30second long commercial add on there, it will be expensive but
it got a huge impact, all level of people actually do look at the TV when
they are in the road, especially when there is a traffic jam, they do look at
the TV.
TV actors:
We will use some popular TV/Movie actor or singers to do our champagne,
like say a 10seconds jingle for the usefulness of Cholesterol free product
and it will be sponsored by our brand. Mainly in TV, magazine, newspaper,
or in radio media it will be published or shown or heard.

Free samples:
We will provide free samples of 250ml pack to different schools, college &
universities, shopping centers especially where the females are gathered. Like
girls school, Ladies club, school gates, girls colleges. Also we will provide free
samples in departmental stores like buy a specific amount of product & get the

Target market

Our main target market people are the young ages people who like to drink
juice very much. Mostly the school going students and the children. Beside
that we also focus the young generation people. Although our main target
market is young people but we also prefer the people of adult and old ages
people.

Target market:
We are targeting our market by segmenting it in consumer market & business
market.

Consumer market:
We are segmenting the consumer market by family size and social classes exist
in Bangladesh.
Family size
Social class/Income Level
According to income level; consumers like monthly, weekly or daily basis may
buy our drinking water from our retailers.
A mini pack of 250ml has been introduced for a daily basis use; our research
says 20% of our population bye at least one 250ml of bottled drinking water in a
day.
The average customers will buy 5 liter 250ml bottled drinking water according
to their requirement. It will depend on their income and their daily requirement.
The average selling patterns shows that mainly 5 liters to 1 liter containers are
mainly sold all over Bangladesh, our main target would be those customers. The
future forecast says a lot of things but we must learn what our actual customer
would like to see from us after using our product.
Most of the family in our country is joint-family structured based, a large
number of this is shifting to the single family size, for this our target would be

the customers of individual and single family and joint family, our packing size
would be according to their demand of consumption.

For distribution channels:


High paid commission:
every other bottled water company is paying commission to the retailers
or distributors, we will also offer them commission, if the competitor
market is giving 5%, we will offer 7%

but the scale shouldnt exceed a

scale, because we dont want to create chaos among the competitors, it


might go against us.
Sales target gift:
We will give sales target to the distributors or the wholesalers, if they can
matches our expectations we will great them with corporate gifts, also a
very high percentage of commission as gift. We will provide rewards to the
distributor like vacation voucher, expensive cell phones, watches, suits,
corporate gift items, or vacation trip inside or outside Bangladesh.
Reward as best retailer:
We will choose ten best retailers among the cities. We will call a
ceremonial meeting and will provide gifts like diary, notebook, banner, TV,
ac, fridge or cell phones etc.

Awareness by:
Doctor:
we will do our main marketing through the doctors, we wont directly ask
them to our marketing, we will call conference and it will be covered by
different medias, the issue will be hygienic and health and safety, it will be
sponsored by our brand and whole auditorium will be covered by our logo,

motto, features and product pictures and healthy awareness features.


Doctor can suggest the patients to use Bottled drinking water, cause
actually this is good for health, we have seen that most of the babies and
young generation are getting bulky and fatty for taking regular bottled
water and fats, if we can reduce this amount, it will be beneficial for the
society too. We have some motivation budget for the Doctors & the related
area.
NGO:
we will take help of NGOs for marketing our product, NGOOs do go those
places where we might not think to go, they go to the rural and urban
areas, their medical facilities might teach the people of the awareness of
the Bottled drinking water and also they may help us to distribute this
bottled water.
Health ministry:
we will arrange seminar or conference with Health ministry, where they
will discuss the usefulness of Bottled drinking water and also this program
will be covered by press and media and we will cover the whole auditorium
with our product pictures, motto, logo and product specification, we will
take aggressive marketing policy in this cases.
Community clubs:
We will decorate some part of different community clubs with our 2X5 feet
banners in a manner so that it may catch the eyes of the people who visits
there, especially it will be displayed in lobby or4 in main entrance.
We will print leaflets and give it to the wholesaler, distributor, retailers,
and consumers through post mail, by hand, with newspapers or with
magazines.

Market Research
Before establishment of this bottled water company, we went to actual market
where we have done some research by the following procedure to get some
feedback of the buyer & seller through our questionnaires. Our research &
development team prepared some questionnaires which is applicable for any kind
of consumer from a housewife to officer, businessman to rickshaw puller, in
simple word, everyone surrounded.
i. How much bottled water do you bye monthly:
1. 5liter
2. 8liter
3. 10liter
4. Others. Please Mention _______
ii. What brand of bottled water do you use:
1. MUM
2. Yes
3. Pran
4. Acme
5. Fresh
6. Others. Please Mention _______
iii. Why are you using this bottled water:
1. For price
2. For packaging
3. For quality
4. Availability
5. Brand image

iv. Do you think you are satisfied with your existing brand of
bottled water:
1. Yes
2. No
3. maybe
v. Have you heard the name of BLUE drinking water:
1. Yes
2. No
vi. From where did you learnt/heard about it:
1. Newspaper
2. Television
3. Internet
4. Person to person marketing
5. Leaflet
6. Wall poster
7. Educational institutions
vii. Do you think BLUE bottled water is good for health:
1. Yes
2. No
viii. Do you think bottled drinking water is
1. extremely important
2. very important somewhat important
3. not very important
4. not at all important for our health
ix. Are you willing to pay if the price for Bottled drinking water is
higher than regular bottled water:
1. Yes
2. maybe
x. What kind of packaging would you like to buy:
1. liter
2. 2 liters
3. 4 liters
4. 5 liters
5. 10 liters
6. Minipack

xi. Do doctors recommend you regular bottled water or Bottled


drinking water:
1. Regular bottled water
2. Bottled drinking water
xii. What is the most important consideration of yours when you
buy your bottled water:
1. ..
2. ..

Forecast and Financial analysis:

Financials
Financial objective:
Our total budget of this project is 160,000,000.00 taka including land, factory
building, equipments, advertising expense, operating expense; it would also
cover the salary of the factory worker to the office manager for onward three
months.

For our marketing expense we have 30,000,000.00 taka which is

sufficient enough. We have a time limit of three years to get in the breakeven
point, our expected break even time period would be three years, and it would
actually depend on the sales how much we may gain or lose.
The breakdown of the marketing cost is listed below

Promotion

Period

Cost

% of total Budget

Newspaper

Yearly

1200000

6.49

Website

Once

500000

2.70

TV

Yearly

4000000

21.62

Radio

Yearly

250000

1.35

Screech card

Yearly

1000000

5.41

Quiz contest

6 times in a
year

1500000

8.11

wall poster

Yearly

1000000

5.41

Billboard

Yearly

500000

2.70

Banner

Yearly

300000

1.62

Game
Sponsor

3 times in a
year

750000

4.05

Free Sample

Yearly

7500000

40.54

Packaging and Pricing


Packaging
20 ltr

Price (In taka) Per bottle


200

10 ltr
5 ltr

110
60

2 ltr
1 ltr

25
18

500 ml
250 ml

10
8

In the case of pricing three types of pricing is available:


Low pricing
Market price
Premium pricing
Advantages of Market Pricing
The consumer, so greater chance of accepting the price, accepts the
price.
Quality of the product initially would be accepted.
Disadvantages:
No reason for the consumer to shift the product when the price is same.
Product cannot be positioned as a premium product

-------------------------------------------------------------------------------------------------It just a hypothetical forecasting and financial analysis


2011,Decem
ber
Revenue
Profit
after tax
profit
margin

2012,Decem 2013,Jun
2012,june ber
e
Average
855,403,0
647,088,0 701,764,7
621,802,000
00 682,766,000
00
50

20,673,000
0.03324691
8

29266000
0.034213
11

21,579,000
0.03160526
4

20,622,00
0
0.031868
93

23,035,00
0
0.032824
39

Our target for December,2013 is to increase revenue. As we have reduced our


price and will start our promotional activates from the last quarter of 2013, so
at that time revenue will go down because of low margin and promotional cost.

July:
In June we will arrange meeting with our suppliers, dealers. And talk about
our new target to increase revenue, product development ect. At the end of july
we will officially declare the new reduced price of pran juice.

August:
We will have a meeting with our new dealer for out new target location, and will
go for a short term contact within the august. Based on the performance of the
new dealer we will appoint them for a long term contact. we will also set some
offer to improve the distribution channel:
Sales target gift:
We will give sales target to the distributors or the wholesalers, if they can
matches our expectations we will great them with corporate gifts, also a
very high percentage of commission as gift. We will provide rewards to
the distributor like vacation voucher, expensive cell phones, watches,
suits, corporate gift items, or vacation trip inside or outside Bangladesh.
Reward as best retailer:
We will choose ten best retailers among the cities. We will call a
ceremonial meeting and will provide gifts like diary, notebook, banner,
TV, ac, fridge or cell phones etc.

September:
We will go for a promotional camping from this month. We will estimate a
budget of 10,000,000tk for next 4 month promotion.
October-December:
On those periods we will just observe the performance and give feed back to
improve the performance of our distribution channel.

Sales Forecast:
I am going to invest 10,000,000tk on promotional activities to increase the
revenue. This cost could be break down into three parts among the three
different volume of pran juice item.
Cost allocation:

Fixed cost

250ml
22tk
16.7%

500ml
40tk
30.3%

1little
70
53%

allocation
Total

1670000

3030000

5300000

allocation
Break even
Break even

2530303
55,666,666

2525000
101,000,000

2523809
176,666,630

revenue
Break even for 250 ml pran drinks:

Total

333,333,29
6

Profit/loss: historical data shows that profit is constant over last few periods.
Our plane is to increase this profit by expanding the market. Because of the
promotional cost we could incur loss or less profit in the last six months of
2013.But we can expect 20% more revenue each year for next 4 years from
these promotional activities. average profit is 46,070,000tk per year. So in
2014,31st December we are expecting 20% more profit which is
55284,000.According to plane we are also expecting to have a higher profit
margin because of producing in a large scale.

Review and Control:

The success of our marketing plane depends on how accurately all our
strategies work and how well we can motivate our distribution channel and
customers. To implement our plane successfully we have to watch over our
performance constantly.

Contingency Plan
PRAN anticipate pressure on price due to competitive activities and strong
power. Its impact will be felt on profitabilitys and break-even volume. Even with
a sufficient cushion at present, PRAN envisages tight cost controls consisting of
lean organization, long term cost contract with orchard owners and efficient
use of resource. It is also keeping sufficient Capital cushion use of resources. It
is also keeping sufficient capital caution to manage the enhance working
capital requirement due to delays in payment , and the need to keep a
sufficient inventory.
We all know that, todays fast moving world respect the new, innovative ideas.
To keep the same pace with this situation our company had decided to launch
a Juice and it has a bright future in its market. As the product is innovative,
the consumers are going
product will be a strong product mix for our company. And once our Juice will
reach to the hand of our targeted customers, we will be able to capture the
most market shares.

References:

http://www.pranfoods.net/
http://en.wikipedia.org/wiki/PRAN-RFL_Group
http://www.gafspfund.org/content/pran-group-bangladesh
http://www.amclpran.com/