PRAN †the Largest Agro Food Processor in Bangladesh Essay

IntroductionAgricultural merchandiseing guild Limited (AMCL) was set up at first in 1981 and consequently 1985 for farming and marketing of agricultural intersection points for topical anesthetic and export market. by and by a recent fruit processing plant with bottling and earning facilities was added in 1993 to conjure up fruit succus, squash, sherbet, pile, jelly and so forth the confederacy processing unit started commerci onlyy outturn in July 1993 and launched its products in the market under the brand take PRAN. PRAN stands for Programme for Rural Advancement Nationally. The brand Pran has established itself in all category of fodder and beverage pains and can boost a product contrive from Juices, Carbonated Drinks, Confecti wizry, Snacks, and Spices to even Dairy products. Pran Group was innate(p) keeping in view the corporate mission of the group. To solar day Pran is the largest processors of fruits & vegetables in Bangladesh. Pran is the pioneer in Bangla desh to be involved in contract farming.They support contract farmers and help oneself them grow quality crops with append yields and to obtain white values. They procure young material directly from the farmers and processes through the machineries at their some(a)(prenominal) factories into hygienically packed food and drinks products. The Group comprises of 10 companies. The head offices atomic number 18 located at Dhaka with production facilities around the country. Their management is modern adapted to the environment & culture and Prans largest asset is their competent team up of hands-on-mangers & dedicated employees. Pran is listed with the Dhaka and Chitttgong stock exchanges in 1996. Pran agriculture marketing company limited has controlled the nine individual Business Units on their umbrella.Agro Industrial parking atomic number 18aBangladeshs first-ever agro-industrial zone, Pran Agro Industrial Park, was inaugurated in Natore. The park is comprised of automat ic rice mill, spice, peanut, honey, tomato, pickle, jam and jelly processing units, fruit pulping units, pulses mill, puffed rice mill, cattle junket mill, p failic molding and milk collection units to produce wide range of products, which is using forexport.Plant in IndiaNow Pran is going for FDI (Foreign Direct Investment) in India by building its first immaterial factory in India, winning advantage of the countrys recent decision to lift its put away on Bangladeshi investment. The plant ordain be built in the north-eastern Indian state of Tripura. It will initially produce jelly and drinks and is pass judgment to come into operation by 2009 with an annual turnover of around Tk100 crore. It will supply the markets of northeast India -Assam, Nagaland, Tripura, Meghalaya, Manipur, Mizoram and Arunachal Pradesh -kn experience as Seven Sisters, said a older official of Pran exportings Ltd. The plant will initially produce jelly and drinks, which nurse already won popularity i n those areas, said Paramuddin Hossain, senior manager of Export of Pran Group.Related and Supporting IndustriesPran Food Limited produce contrastive types of food products which require many new(prenominal) related and supporting products in their different stages of production and distribution.I. mango tree and Other Fruits IndustryPrans mango tree juice is their closely selling item and most of their earnings are earned by selling mango juice. So they take in a large nitty-gritty of mango as a raw material in mango juice production. They also need mango in producing Jam, Pickles and Mango Bar. in any case Mango they also need many opposite fruits like Orange, Pineapple, Apple, Litchi, puke and many other fruits to produce Juice, Jam, Fruit Bar and Pickles. At show up they supply mango and other fruits from their get garden as intimately as import from other countries like India and Bhutan. But the importing derive is more than the amount of supply from their own garde n.II.Sugar IndustrySugar is an infallible raw material for production process in Pran FoodLimited. They need sugar in juice production to candy production. They affair our radix countries sugar because they do not import sugar for spirited obligation rate. So sugar industry is a related and supporting industry for Pran Food Limited. in that respect are many local sugar industries that enumerate on Pran.III.Dairy FirmPran has the countrys largest milk producing centre. Prans own dairy firm supplies milk to produce Ghee, Milk candy, Mango Milk, umber Milk, and in many other production process. If supply from their own dairy firm can not recompense the need of raw materials in future other dairy firms can give them the supply.IV.Wheat IndustryPran take a bulk amount of wheat to produce snacks, like whacky & Chips, Bakery Items, Biscuit, Chanachur, Dal etc. They import wheat from other countries for their production process.V. case IndustryTo distribute all products Pran need s quality and shot incase. At present they are importing all advancement materials excluded the glass nursing bottle from China and Korea. And they use local glass bottle to distribute juice and pickles.Organizational Structure of Pran The Pran agriculture marketing company limited constructed their organizational social outline in standard way which could efficient for their production and job.The structure is given be low-tonedMarketing Strategy of Pran To achieve its marketing objectives Pran uses the node centered orientation program to gain large bulk of customers. outgrowthof all they set Segmentation Targeting Positioning (STP) for their products.I.Market SegmentationPran segment their market to divide the market into distinct groups of buyers who take a leak distinct needs, characteristics, or look and who require separate products or marketing mixes. For example they segment their mango juice to imply about the people of different age and who cause different ta ste. Like Pran Mango Juice-Classic for generalized group, Pran Mango Juice-Premium for the group who indirect request thick mango juice, Pran Joy Juice for the young generation and Pran lower-ranking Juice for the children.II.Target MarketPran prey the middle class people who wants support taste of foods. As consumer percentage is high in this group they think that this patsy market is highly profitable for them. So, they dont go for high termsd product rather than they try to action low price but private-enterprise(a) quality of product. That is why their main object is to serve quality product at a lower price and they do a wad of promotional activities for being the best in the competitive market.III.Market PositioningPran positioning their products in their customers mentality by offering excess features and benefits. To occupy a clear, distinctive, and desirable place relative to competing products in the minds of their target market Pran tries to position their each and every product. For example Pran tries to position the Mango Bar as a taste of the happiness of their childhood, in the mind of every consumer.IV.Marketing Mix of PranPran has a set of controllable tactical marketing tools product, price, place and promotion, which they blend to produce the response wanted by their target market.a)ProductProducts act as customer solution for their get hold of. Pran has an extensive line of product which can easily satisfy the need for any food lease of the consumers. Consumers are getting all sorts of food products they need to consume from Pran.b)PriceBangladesh has a huge shortage of fruit, vegetable, raw materials. So Pran make up this deficit by importing from the neighboring and different countries like India, Bhutan, and China etc. But, for that, Pran needs a relaxed tariff structure to keep their products competitive. So, Pran follows competitive price strategy to compete in the market. But they also take cathexis of the limitation of their customer. So they always try to keep the price low to compete in the market and to make their products price affordable for their consumers.c)PlacePran has an extensive gross revenue network throughout the country to throw their product to everyone. Their products are available even to the remote part of the country. Company name sales force to cover every part of the country.d)PromotionPran communicates with their consumers by various agency of promotion. To maintain a good public analogy they take intensive sales promotion. To promote Prans product to their customers, they are conducting some promotional activities.These includeAdvertisement in print media much(prenominal) as news paper, magazineAdvertisement in visual media with sentiment leadersFree campaignSponsoring in different cultural makeV.Countrywide Sales and Distribution NetworkPran maintains the following distribution networkPran sales force comprises 137 Executives. Number of Sales Representatives is 151 0. They are performing the responsibility of merchandising to retailers all over Bangladesh through Distributors. At this moment company appointed total Distributors are 720.Mode of TransportationPran use transportation in the following activitiesI.To Import Raw MaterialsTo import the raw materials Pran use transport on Board (FOB) and C&F both transportation system. On FOB the supplying company takes the responsibility to import raw materials up to Chittagong port and on C&F the supplying company imports the raw materials up to the factory. But Pran use the C&F system more than FOB system.II.To Export Processed FoodsPran Food Limited uses the shipping system to export neat food to many other countries. To avoid the high transportation cost, they use shipping system instead of air. III.To Distribute In The Local MarketTo avoid high freight Pran use their own distribution channel to distribute their products inside Bangladesh. They also take help of the local transportation agencie s to distribute their products on payment. The names of some local transportation agencies that they use more frequently are given on a lower floorHaji Mostafa TransportAnanda ParibahanShamim TransportMulti Star Transport Ltd.N. Mohammad Transport encasePackaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging is very important part for the marketers because by looking at the encase of product, consumers take the decision of buying a particular product. That is why Pran does colorful furtherance which attracts customers a lot. Pran gives a lot of efforts in packaging. They are in a good position in doingpackaging compare to other companies in Bangladesh. Pran export their product in the international market, so comparing with the international market their process of packaging is not in a good position at all. Pran is doing their best to compete with the international standard of packaging. For doing packa ging they use foreign technologies to compete with the world market. They import package broadly from Thailand. Then they prefer China. They import different packing materials like- Aluminum Foil, tip Cork, Flexible Packing material, Glass Bottle, Glass Jars, HDPE, Lug Cap (30, 53 & 63mm), PET, Shrink Labels, Shrink caps, Tin Can, U-Straw.Pran is doing packaging because of following reasonsi.Self-ServiceProducts should be packaging in much(prenominal) a process which is convenience for the consumers. Pran package their products in such a way that it is very convenience for the consumers to take products from one place to another. Pran do standardizing and grading their products according to different weight of their product.ii.Consumer magnificencePran always try to have bit more profit from customers. So Pran emphasize on appearance, dependability, and prestige of better package for having consumer affluence.iii.Company and Brand visitPackages contribute to instant recognition of the company and brand. Pran packages their product in such a way that its become very easy for the customers to fare their product.When Pran package their product, they emphasize a lot in few factors like-I.Physical breastplatePhysical means the physical product. They emphasize whether products are secure later packaging or not.II.Barrier ProtectionThere are some problems that give product unhygienic, dust is one of them. To hygienic the product, Pran does their packaging very carefully. They trim on whether the packaging is protecting the products from different barrier or not. Pran use new types of technology for protecting these types of problem.III.Information TransmissionIn packaging, Pran gives a lot of information about how to use products and what chemicals are their in the product. By doing these they do the work of information transmission which help a lot to the customers.IV.SecurityThere is possibility of damaging goods when products are going for shipment. Some time because of some defect in the packaging, products can not reach in there destination. For that reason companies loss their profit as well as their goodwill. That is why Pran emphasize a lot on security in packaging to prevent from these problems.Way of PackagingThe way that Pran packages their products can be shown in the following tables-Local Demand Condition Pran is the Bangladeshs largest selling processed food company. The local prerequisite for Prans product has maturationd day by day. The marketing officials explained that their current production volume even failed to satisfy the local demand condition in hold water year.The local demand condition of Prans product can easily determined by their sales volume. Here we examine Prans sales volume for last five years which shows that the local demand condition of their products has increased forcefulally. In 2004 the sales volume was worth of 50 crore taka which increased to 250 crore taka in 2008. That means the sales amount has increased by 40% in last five years.Foreign Demand Condition Like local demand condition Pran has a vast demand to the foreign market. They started to export from 2001 and from then on their foreign demand condition has just increasing and increasing.The foreign demand condition of Pran can be easily drawn by their exporting volume of last 8 years. We can see from the graphical record that at the beginning the only export worth 12 crore which increased by 16.67% in next year (2002). They had a slow increase in export up to 2005. Till then they had average increase of 17% each year in export. But they had a drastic change in exportfrom 2006 when their exporting volume rises by 55.55% from the old year. They had exporting volume of 56 crore taka in 2006 and 80 crore in 2007. In last year they export worth 120 crore which break the all past record of increase in export.Market Access Issues Pran, Bangladeshs largest agro process company produces and export different kinds of food products. Now they have access to many countries and have potential to export many other countries.