PRAN

PRAN has 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 brands among the millions of people of Bangladesh and other 106
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

Companys Aim: To generate employment and earn dignity and self-respect for their
competitors through profitable enterprises.

Companys Vision: Improving Livelihood

Customer care: Company view consumers as king and they are their laypeople. Consumers
have given us such success for so long years. So, they care about consumers. Consumer care is
the process by which they endorse consumers satisfaction and moreover, loyalty. Primarily, it
grips managing communication with consumer particularly consumers questions and
complaints and resolving disputes amicably. Eventually the goal of our consumer care program
is to build long-term relationship. To meet this goal, company will go to great lengths to build
a strong reputation for lavishing our consumers with special services, discounts, gifts and other
benefits.

Supplier care: native farmer is their supplier. They collect major portions of raw materials
from them. They give values to their activities. Most of farmers were deprived of proper price
for their produces. They have been helping them to overcome this situation by practicing
contract farming. Now they are the pioneer and the largest contract manufacturer in
Bangladesh.

Employee care: Employees are their best resource. Organization give values to their employee
creativity and innovation. Company culture begins with their four values that drive everything
they do: Integrity, Continuous Innovation, Involvement and Self-respect. Helping employees
growth, giving them proper training and development. They encourage employees to ask
questions and make suggestions that they think better. They are the one amongst the few in
Bangladesh who has a culture of profit sharing management. Employees are dedicated to the
success of the business. They treat the employees as a core resource and family member.

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Trade care: Their trade partners are our great support. Through them, we reach to our ultimate
consumers. They provide support to the entire our promotional activities and merchandising
program. They care for their trade partner.
Now, they have a customer care wing to listen to them and aim to build a strong long term
business relationship by taking them through the journey of relationship disposition funnel and
expect them to become companys advocates in their Business.

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Features Figure

Year of Establishment 1981

Industry Food and beverage

Product Dairy, juice, drink, culinary, snacks

Total Workforce 3000

Number of Foreign Employees 9

Total Working Capital 7000 Corers BDT (apprx.)

Total Managerial and Non mana More than 300 managerial employees
gerial Employees

Employees and Business Increas 300%

e % (last ten years)

Total Export to Foreign Country Started exporting one year back and total e
xport as of last year is $350000

Core Export Items (last 5 years) Dairy, sauce, potato chips, pickles, snacks
item

Import from Foreign Country Annual $100millions (approx.)

Employee Retention Rate (%) 95%

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SWOT ANALYSIS

The SWOT Analysis is a business analysis technique that ones organization can perform for
each of its products, services and markets when deciding on the best way to achieve future gr
owth. The process involves identifying the strength and weakness of the organization and opp
ortunities and threats present in the market that it operates in the first letter of each of these fo
ur factors creates the SWOT.

Strengths of PRAN
PRAN has very advanced and innovative technological manufacturing facilities.
They are the most experienced company in Bangladesh.
They have come with different types of product which are more reliable to customers.
They are loyal to their job satisfaction.
They have huge distribution network.

Weakness of PRAN

Disproportionate promotional strategy.

Because of their so many units, they cant focus properly in every unit.
In house media planning and promotional activities.

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Opportunities of PRAN

They can export their products in their neighbor countries.

They are exporting only in INDIA.
PRAN has its own environmental steps to improve their manufacturing plants.
PRAN can work with some specific products

Threats of PRAN

They have competitor in the Dairy, culinary, juice, bakery and snacks item.. Like: mil
kvita, radhuni, sejan juice and ifad.
Competition is rapidly growing for PRAN.
Because of too many compititors of the company in the market, consumer can move t
o those companies product.

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Stars (high share and high growth)

Star products all have rapid growth and dominant market share. This means that star products
can be seen as market leading products. These products will need a lot of investment to retain
their position, to support further growth as well as to maintain its lead over competing produc
ts. This being said, star products will also be generating a lot of income due to the strength the
y have in the market. The main problem for product portfolio managers it to judge whether th
e market is going to continue to grow or whether it will go down. Star product can become Ca
sh Cows as the market growth starts to decline if they keep their high market share.

From the above picture we can see sauce, water, potato chips, pickles are the star product of
PRAN. They have the high growth rate and high market share in the market also with that pro
ducts there are no alternatives.so people buy that products and they are very available product
s.

Cash Cows (high share, low growth)

Cash cows dont need the same level of support as before. This is due to less competitive pres
sures with a low growth market and they usually enjoy a dominant position that has been gen
erated from economies of scale. Cash cows are still generating a significant level of income b
ut it is not costing the organization much to maintain. These products can be milked to fund
Star products.

Cash cow products market share are high but growth are low. Ran up, ran frooto,pran mango
juice and pran tamarind pickle pack are cash cow product think pran dairy Milk also in the ca
sh cow product. Prans Star product can become Cash Cows as the market growth starts to dec
line if they keep their high market share.

Question marks (low share, high growth)

Also sometime referred to as Question Marks, these products prove to be tricky ones for prod
uct managers. These products are in a high growth market but do not seem to have a high sha
re of the market. They could be reason for this such as a very new product to the market. If th
is is not the case, then some questions need to be asked. What is the organization doing wron
g and what is some competitors doing right? It could be these products just need more invest
ment behind them to become Stars. Culinaries, bekary toffees are the question mark product

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of pran food and beverage. Because, that products have a lot of competitors and alternatives
so customer buy the best products. But these products market share is low but growth is very
high.

Dogs (low share, low growth)

Product classified as dogs always have a weak market share in a low growth market. These pr
oducts are very likely making a loss or a very low profit at best. These products can be a big d
rain on management time and resources. The question for managers are whether the investme
nt currently being spent on keeping these products alive, could be spent on making something
that would be more profitable. The answer to this question is usually yes.

Pran power drink, ran lichi, pran lacchi and pran milk powder are the dog products.
they have a low number of demand in the market.Thats why they have low growth rate
and market share.

Porters five competitive forces of PRAN

Threat of new entrants

The ease of difficulty with which new competitors can enter an industry. Profitable markets
that yield high returns will attract new firms. This results in many new entrants, which
eventually will decrease profitability for all firms in the industry. Unless the entry of new firms
can be blocked by incumbents the abnormal profit rate will trend towards zero.

PRAN is well established food and beverage company. There are many competitors of PRAN
group. But where pran is staying its a high position. Its not so easy for any new company to
compete. So the threat of new entrants is very low here in PRAN group.

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Threat of substitutes
The existence of products outside of the realm of the common product boundaries increases
the propensity of customers to switch to alternatives. Also with that, the extent to which
switching costs and brand loyalty affect the likelihood of customers adopting substitutes
products and services

There are many substitution of PRAN group. PRAN manufactures various kind of product like
juice, drink, bakery, carbonate soft drinks, snacks, culinaries, biscuit, dairy etc. These products
have a lot of substitutes in the local market. Like square, ifad, Radhuni, sajeeb, arong, milkvita
and others. They vary with the qualities.so in market there are many products which are
comparatively good or bad from the PRAN company product. If customer want they can easily
use any other company product. And they are always competitive products.

Bargaining power of buyers

The bargaining power of customers is also described as the market of outputs: the ability of
customers to put the firm under pressure, which also affects the customer's sensitivity to price
changes. Firms can take measures to reduce buyer power, such as implementing a loyalty
program. The buyer power is high if the buyer has many alternatives.
There are a lot of alternatives of PRAN products.so buyers / customers can easily choose as
they like.so customers must be buy the best one.so the suppliers need to cope up with the
customers requirement.so the hole power or buying in buyers. Here the consumers are the king
and queen.

Bargaining power of suppliers

The relative number of buyer to suppliers and threats from substitutes and new entrains affect
the buyer supplier relationship. The bargaining power of suppliers is also described as the
market of inputs.
When PRAN has the product that other company dont have that product. The consumer must
be buy that product from pran. Because of there will be no alternatives to buy. Like pran choco
choco is a product.it has no alternative or substitute. If consumer need that product, they need
to pay what the company rate .There have no bargaining power of suppliers.

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Industry rivalry
For most industries the intensity of competitive rivalry is the major determinant of the
competitiveness of the industry.
PRAN focus on a lot of products. They have various kind of product like dairy, culinaries and
other. There are also other companies who have a few number of products and with that
products they are very popular. Like PRANs rivalry companys are radhuni, ifad, arong dairy
and sezan juice.

Recommendation
Pran has very advanced and innovative technological manufacturing facilities. They have come
with different types of products which are more reliable to customers. To have this organization
strength Pran has some environmental opportunities. They are getting natural resources
available which is helping them to achieve the success and they are also getting government
supports to expand their business. As in our country we have available natural resources so the
organization can produce more products in few cost and also can fulfill the customers demand
in the market. So it helps the organization to gain more profit. They should change their
promotional strategy. They also invest more or focus on their Dogs product so that they can
overcome their weakness. They should follow differentiation and cost leadership strategy
because of if they want to lead the market they should come up with new and unique products
with minimum cost.

Conclusion
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 that only the best quality products are reaches to the consumers table across the
Globe.

References

http://pranfoods.net/product.php

http://hrms.pranrflgroup.com/

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