Company sales and net income performance

Image: Export graph of Pran

Export data of Pran: About one-fourth of Pran’s earning comes from their international;
exports. In 2014 they exported both in the opversies and in the domestic market product worth
$500 million. Pran exported goods worth $144 million (Tk 1,126 crore) in 2015. One-third of the
pran’s good goes to the neighborhood country India. (Rahman, 2020)

Sales of Pran: In 2013 Pran had 316 million sales, in 2014 they targeted for 500 million sales.

Sales and income in 5 years:

In 2012 their sales was 1479083 tk, in 2013 it was 1554446 tk, and in 2014 it became 1727217
tk. They had their highest Gross profit margin in 2015 and it was about 22.16% and net profit
margin was 3. 53%. (Term Paper on Financial Performance Analysis of PRAN, 2020)

Share market scenario of Pran: Earnings per share (EPS) of Pran increased in 2020. In 2020
July-December period the share price of Pran became Tk4.24. In 2019’s October-December the
value was Tk2.13. On December 31, 2019 the net asset value (NAV) per share was Tk80.53 and
on June 30, 2019 it became Tk79.49. The amount of paid-up capital of Pran is Tk10 crore.
(Mahmud, 2020) The spice market share of Pran is 20%, energy drink and juice contains 15%,
oil and snacks 10% and biscuit 5% of the market share. (Basit, 2020)

Position in the industry:

Pran have a global positioning. Pran exports in 77 countries of the world including these Asian
countries: Pakistan, India, Nepal, Bhutan, Afghanistan, and .Myanmar. In Europe they supply
France, Spain, Germany, England, Scotland and Ireland. The current number of consumer
includes 300 million people of the world. (Product position of PRAN in Bangladesh and in
international market Products .Course Hero, 2020)

They both have low price products and high price products for their consumers. These are giving
below:

High Quality

All Time Sandwitch Bread Jhatpot Wonton

All Time Ruti Jhatpot Samosa

All Time White Bread

All Time Milk Bread

All Time Ringo Bagels (6 Tk)

Low Price High Price

Pran Fruit Cocktail (8 TK) Pran Rice Brain Oil

Pran Lemon juice (12 TK) Kernel Sunflower Oil

Pran Guava Juice pack (12 TK) Metro Rice Brain Oil

Pran Spices

Low Quality
Case was filed against Pran by Safe food authority for maintaining low-quality food products
including Pran’s ghee, vermicelli and turmeric powder. After a laboratory test it was found that
pran turmeric powder contains excessive ash. According to BSTI only using 7.30% is fine where
as Pran used 8.09%. (Arrest warrant issued against Pran MD Ahsan Khan Chowdhury, 2020)

SWOT Analysis of Pran:

Strength: Weakness:

Pran have the largest number of employees. The main weakness is there are many reports
The current numbers of the employees is of low quality ingredients used in their food.
84000 people. For example: Many sources claimed that Pran
does not use original fruit pulp in their fruit
juices. Bangladesh Standards and Testing
Institution (BSTI) have cancelled the licenses
of Pran's various fruit drinks because a petition
was filed against them for not using real fruit
pulps. Although Pran has refuted the claim.
(Pran refutes claims of adulteration, 2020)

Pran have largest pool of customers as well The founder Amjad Khan Chowdhury’s
which amount s approximately 160 million. sudden death in 8th July, 2015 became a
(Chowdhury, 2020) tragedy for the company. He was the pioneer
of the food processing industry in Bangladesh.
(Mahbub, 2020) After his sudden death the
company faced much loss.

It is the most demanded Bangladeshi brand

when it comes to export. Around $500,000
worth export orders were nrecei8ved by Pran
in 2019 in ‘ANU Food Fair’ at Sau Paulo,
Brazil. (PRAN bags $500,000 export orders,
2020) $5 million worth food products deal was
made with Engel Foreign Food in Netherlands
by Pran. Already exporting in 141 countries
throughout the world. (Pran signs $5 million
export deal with the Netherlands, 2020)

Opportunity: Threat:

Maintained the CSR activity for the society Companies like ACI, SQUARE are the biggest
and played an important role for Sustainable competitors of Pran. These companies also
development. have similar product categories like Pran. For
example: ACI and SQUARE sells mango juice,
salt, and etc items.
 An agricultural opportunity for the local Pran have lack of innovation in their
farmers. Pran established Agro Industrial Park advertisements.
in Natore. First foreign factory of Pran in India Pran also lack digitalization regarding their
in 2009. (PRAN the Largest Agro Food digital promotions.
Processor in Bangladesh Essay, 2020)

Task Environment:

 Government regulators: A high level of lead was detected by The US Food and Drug
Administration from Pran’s turmeric packages. Rat droppings contaminated their Italian
export of noodles, rice, olive pickle, vinegar, potato crackers, sweet toast, mango
chutney, puffed rice, etc. The Rapid Alert System for Food and Feed reported the issue to
the Pran Company and to the government authorities. Usually BSTI certification. And
ISO 9001:2000 accreditation with Halal certificate gives them regulatory access of
Government. (The New Nation, 2020)
 Customers: The most demanded product of Pran by the customers are their Pran
vermicelli of Pran Agro Ltd, Pran curry powder, etc. (Rashid, 2020) A the sale of 2,500
tons of “All Time” products per month proves that it has became very popular among
their customers. Many tea stall owners claimed that, the daily sale of these items was
between Tk1,000 toTk1,200. (Pritu, 2020)
 Competitors: ACI Food and Beverage, SQUARE Food and Beverage Akij Food and
Beverage, Danish Food Ltd, Milk Vita, Arong, Farm Fresh etc. (Report on Pran Food
Company - Assignment Point, 2020)
 Strategic Alliances: From 1999-2010 Pran received “Best National Export Award”. In
Malaysia they have earned UDC BUSINESS AWARDS 2011. (Islam, 2020)

Product line:

Pran uses Brand Extension and brand strategy. Pran has introduced variety of product line for
their customers. Multiple products such as confectionary or bakery items such as: Bisk Club Top
Rusk, Malt N Milk Biscuit. Wide arrays of bread items in “All Time brand” such as: Bagel
breads, sandwich breads, and ruti. Pran also offers Carbonated drinks, Dairy and culinary items,
snacks and frozen food items.

Sugar confectionary item of Pran includes: Pluto chocolate Gems, Deposited candies like: Pran
mr. Mango candy, Milk candy, Aamros candy etc. Chocolate bars such as: Baby lon, sixers and
box chocolates etc. They also have Gum chocolates as well. The Gum chocolates are: Atom
Gum, Xcel Gum, Two types of Pran Gummies, Fruitnil etc. They also have liquid chocolates,
toffees, hard candies and lollipops as well. (PRAN Foods Ltd. 2020)
 Marketing mix:

Product:

Pran has many brands for their customers. They have beverages, bakery and biscuit items, dairy,
snacks, frozen foods etc. In these brands they have also created product line extensions. For
example: They have carbonated drinks, flavored drinks, fruit drinks, health drinks etc. They also
have biscuits, buns, breads and cakes in their bakery lines. (Biscuit and Bakery, 2020)

Pricing:

When it comes to pricing they have different price for different products. For example: Pran
Drinko Litchi Juice is 30 tk, Pran Frooto Mango Fruit Drink 250 ml is 25 tk, 1 litre 80tk, Pran
White Vinegar 55 TK, Pran Hot Tomato sauce, Pran UHT milk, and Pran Ketchup 90 tk. Pran
Hot Tomato sauce Mini 30 Tk, Pran Tmaring Sause 100 tk, Sour Card 80 tk, Pran Milk Man
Lassi 20 tk, Pran Turmeric powder 90 tki and Pran Red chilli powder 95 tk. Their Pasteurized
milk costs 65 tk, and 500 ml UHT pack costs 45 tk. (Chaldal . 2020)
Distribution:

Their distribution process is given below:

Raw Material

Component PRAN Distributor Wholesaler Retailer

Rural

Pran have 7 offices in the whole world. Bread & Biscuit, Dairy Products are made by PRAN
Agro Marketing Company Ltd. Rangpur Dairy Product is their Milk processing factory, and
these products are distributed throughout the country. (Arefin, 2020) Currently their distribution
channels contain 30%, of the Super shops, 20% of the retailers and 50% of the grocery shops
distribution outlets. (Report on Pran Food Company - Assignment Point, 2020)

Product Packaging: They follow unique packaging system for their Chutnies, Safe packaging
for the Pickles, Easy to remove packaging for their juices, Promotional Packaging for the Soft
dough Biscuits, etc. Their functional packaging for the dairy products help them to store it for a
while and they include instruction for their customers in the packaging as well. So, they are using
1000 ml, 500 ml, and 250 ml, and 125 ml, Tetra packs for their juices. For the drinks, Pet bottles
of 170 ml and 285 ml are used. For th e bakery and snacks item they use Foil and pouch packs.
For the dairy items they use plastic jars, tin and foils. (Sen, 2020)

New Innovation:

Most of their products are food, drinks and culinary items but they can bring innovation with
toilet cleaners, soaps, hand washes and sanitary items as well. As now-a-days Corona Virus has
strike in Bangladesh so these products will help them to boost their sales and create a greater
demand among the customers.

Pran can give a new name to this Brand as “Pran Life guard” to introduce the hand sanitizer,
hand wash and toilet cleaners. They can introduce different flavors for the home cleaning
appliances such as: Strawberry, Vannila and Chocolate to provide a fresh home environment.
Their floor cleaner will not only clean the house but also spread a fresh aroma around it.
For the Toilet cleaner they can introduce “Pran Life guard Toilet Cleaner”. The color can be
different than their competitor Harpic product which is blue so they can introduce a yellowish
color.

New Product Development process:

Image: New Product Development process

  Idea generation: The idea generation is to defeat Covid-19 virus and to meet the
increasing demand of maintaining hygiene.
 Idea screening: For the idea screening Pran can decide the scent and flavopurs to be
used in their hand sanitizers, hand washes and floor cleaners.
 Concept development and testing: User manuals should be included in these products
and the guideline to use the product.
 Marketing strategy development: Pran can investigate the current demand of their
competitors to evaluate the demands of hand sanitizers, hand washes, floor and toilet
cleaners. Then they can target the chain shopping malls for direct marketing the products.
 Test Marketing: Pran can distribute the new product through buy 1 get 1 free or through
discount or sales offers.
 Commercialization: They can test the product samples and then go for the
commercialization of the products. (Claessens, 2020)

Promotional Mix:

Advertising: Pran uses television commercial to make their customers aware about their
products. They also give advertisements in the newspaper, radio as well. Now-a-days due to
emerging popularity of social media they advertise their products in these platforms too.

Image: Advertisement of Pran sauce

Personal selling: Pran uses personal selling platform when they wholesale their product to the
retailers. They also uses the platform while they sale their products to the chain shopping malls
like Agora, Meena Bazar, Swapno etc.
Sales promotion: Pran give offers like buy one get one free, or buy two get one free offers
during festival seasons like Eid, Pohela boishakh. Sometimes they give discounts in the prices of
their products too. For example recently Pran gave an offer of free spoon with their jam.

Image: Sales promotion

Public relation: To establish a positive customer attitude they use celebrity endorsement. It
creates customer credibility and establishes a bond between the customer and the product. Pran
used popular celebrity endorsements. For example: Mashrafee Bin Murtoza a famous cricket
player, Sonakshi Sinha a famous Bollywood actress promoted their product recently.

Image: Sonakshi Sinha in Pran advertisement

Direct Marketing: Pran uses social media as their direct marketing tool. They announce
contests for their consumers and announce winners over there. They also replies back to their
consumer queries through this platform.
 Promotional model: (AIDA)

Awareness: They create awareness among their customers with billboard advertisements,
newspaper ads, and radio and television commercials.

Interest: To trigger the interest of the buyer they give product descriptions, method of cooking
or usage, price information and provide an expiration date of the product.

Desire: The celebrity endorsements helps an user to connect themselves with the product and
then they finally want to purchase it.

Action: CTA The consumer’s desire enables them to ask query to the sales person. They can
seek advice to use the product and finally decides to purchase it upon its benefits.

Retention: The selling of Pran’s All time bread indicates that it has a loyal customer phase.
Other products of Pran such as their Dairy and biscuit items are also demandable. (Hanlon, 2020)

Market segmentation:

There are four main types of segmentation which includes: Demographic, Psychographic,
Behavioral and Geographic segmentation. (4 Types of Market Segmentation with Examples -
Alexa Blog, 2020)

Demographic Segmentation: In the demographic segmentation Pran uses Age, Gender, Income
and Location.

 Age: The main target market of Pran is the youngsters who belong into age group of 16-
27. Though the Customers of Pran juice includes the children.
 Gender: Both men and women purchases the product of Pran. They likes to have their
Juice, biscuits, and snacks etc.
 Income: The product of Pran is relatively low. Their Juice, gums and bread items are
very affordable. These items can be purchased by low income people.The price of Oil,
pickle and Jam is affordable for the middle class people.
 Location: Dhaka is the capital of Bangladesh and Chittagong is the business capital.
Most distribution of Pran gets available in these areas.

Psychographic Segmentation:
  Lifestyles: Pran targets the young generation who likes to hangout, chill and travelling.
They highlight these information in their TVC and Newsprint ads.
 Personality: Targets job oriented people with their readymade snacks and All Time
bread and cake items. (Pran group market segmentation, 2020)

Behavioral Segmentation:

 Purchasing habits: The Customers of Pran purchases the All Time bread the most.
Their Oil has a separate market demand as well.
 Spending habits: Customers have the low spending attitude so Pran keeps their
price low for them.
 User status: Mostly Middle class, Lower middle class people are their consumers.

Geographic segmentation:

 Urban: In the urban areas their Bread, Frozen snacks, biscuit and beverage items are
popular.
 Rural: In the rural areas their culinary items, Atta, and dairy products as well as juices
and drinks are demandable. (Pran group market segmentation, 2020)

Positioning strategies for Pran:

Name: Pran means Program for Rural Advancement Nationally.

Logo:

Image: Pran Logo

Shapes: Pran uses different shapes for their beverage bottles. Use different packaging shapes for
their chips and bakery items.

Colors: Most of their packaging is bright colored.

Scents: They use mango flavor scent in their mango juices, litchi scent in the litchi fruit juice,
vanilla scent and chocolate scent in the cake items and tomato scent in the sauce items.
(Academia 2020)
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