CHAPTER 01

1.0 Introduction

Bangladesh is an agricultural dominated country constituting huge fertile soil, plenty of water

bodies all around its area and cheap labor, which has given competitive advantages for our

country to produce agricultural products. We can earn adequate amount of foreign currency by

exporting these agricultural products and now a day’s many different types of agricultural-

based products are being exported from Bangladesh. The total contribution of this sector is

very significant compared to the total export. However, if this sector were perfectly taken into

care then it would have a great opportunity to strength our entire economy. In this report, I

have focused on the related aspects of the agri- based industry products. For the

accomplishment of my objective I have chosen “PRAN" Food Ltd., which is under Agricultural

Marketing Co. Ltd.

1.1 Objective of the study:

Board objectives of the study:

Gather knowledge about the Pran Food ltd. And how much product lines, how much products

are available, how much products are available in the market and the products price and the

target people by the Pran Food ltd. Identifying, evaluating, and understanding the marketing

strategy and the business cycle of PRAN Group of Industries which includes the department(s)

of Marketing, Sales and Administration.

Specific Objectives of study:

As a business expectative of the future, we should have to gather experience besides our institutional education. We should not concern our lesson only in the classroom but to implement it in the practical life, which will help us in our future life.

So, to identify the objectives is very much important. My purpose of preparing the report is:

To identify the market situation, position and value of PRAN Group.

To identify how the organization maintains their customer needs and wants.

To know how the organization uses their strategy to achieve the organizational goals and

objectives.

The evaluation of the PRAN Group products, price and promotion policy.

To classify their segmentation policy and target markets of the business.

1.2 Methodology of the study:

1.2a Data collection Techniques

Survey:

My survey consisted of gathering as much as information as possible related to the

products and company policy. An example of the one the places I went to is ‘Agora’

super shop. I gathered the price of the products and the highly demanded products

of Pran Group.

1.2b Sources of Data Collection

Primary:

I have used the data for my report as I went to the company and collected the

information from the sales manager and employees and asked them relevant questions

about their products.

Secondary:

I have searched their web site for information and I have also collected prospectus, magazine and annual report for gathering information.

1.3 Limitations of the study:

I had to face various obstacles and barriers in the process of collecting all the essential information

above which I was not able to avoid. Some of the issues were due to:

All necessary information is not available in the pran Group website. Pran Group magazine are not rich. Lack of help by the employee. Most of the shopkeepers are illiterate. Lack of time for preparing the report.

CHAPTER 02

2.1Industry Background

The food processing industry transforms fruits and vegetables into processed form and

produces by-products from waste fruits. Tomato ketchup, sauce, juice, fruit drinks, squash,

jams, jellies etc. are examples of processed products; vinegar is an example of a by-product

from waste fruits. Domestic demands of processed foods remains very limited due to lack of

purchasing power of a large majority of people in the country.

The fruit preservation industry depends mostly on the production of fruits for its basic raw

materials, as they constitute a substantial portion of the products of jams, jellies, juice, syrups

and squashes. Packing materials cover on the average 35-40 % of the total cost per unit. The

most important containers used in fruit processing industries are tin plate, glass and flexible

packing materials. The tin container (cans) has already replaced the glass containers for

commercial processing of fruits. Because of its tensile strength, durability, suitability for

transportation and other related advantages tin plate containers are preferred for processing of

fruit. Unfortunately, suitable tin containers are not available in the country. The biggest cans

making plant, Bangladesh Can Company, Nasirabad, Chittagong producing plain cans but there

is no lacquering of acid and sulphur. To meet the requirement of country Food Processing

Industries most of these cans imported from out side the country.

2.2 Industry size

Currently produced agro processed products:

The products that Bangladeshi food processing industries are producing from fruits and

vegetables are mainly jam, jelly, pickles and fruit juice and drinks.

Current situation of total local companies involved:

According to the secondary data that I have collected the number of food processing industry

were very few at first in 1981. But after 1988 it began to grow drastically. The production of

fruits in Bangladesh is increasing and as a result our survey shows that food processing industry

turned into 53 companies in 1991 and 1000 in 2002. But approximately 63 of them are

registered.

2.3 Company Background

The largest fruit and vegetable processing industry in Bangladesh with countrywide distribution

network AMCL’s 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.”

2.4 The company profile of Pran

AMCL market its product under the brand name PRAN that stands for Program for Rural

Advancement Nationally. The Agriculture Marketing Co. Ltd. (AMCL) was incorporated in

Bangladesh on 15th May 1985 as private limited company under the companies Act 1913 and

subsequently on 2nd June 1993 the co. was converted into public limited co. the shares of the

co. were listed in Dhaka and Chittagong stock exchanges.

The company is financed by industrial Promotion and Development Co. of Bangladesh Ltd., ANZ

Grindlays Bank, Dutch Bangla Bank and by its stakeholders.

Initially PRAN had jam, Jelly and Pickle in its product line. In January, 1995 production of orange

juice and in June production of PRAN mango bottled juice started. PRAN now operates by

having eight zones throughout the country. The zones are Dhaka Metro, Adjacent Dhaka,

Comilla, Chittagong, Sylhet, Khulna, Barisal and Rajshahi. The company also has three more sub

zones.

The company’s business activities are farming, trading, processing of fruits, vegetables and

other agro products. Unit wise activities of the company are shown below.

Unit-1 Processing of agro products

Unit -2 Farming

Unit- 3 Bottling, tetra packaging of juice and mineral water.

Unit- 4 Trading

2.5 Company objective of the “PRAN”:

AMCL and its Brand name “PRAN” have twin objectives –

“Achieving social values with sustainable pecuniary advantage for all our stakeholders”

2.6 Company Aim:

To Generate Employment and earn dignity and self respect for our competitors through

profitable enterprises.

2.7 Company Mission:

Poverty and Hunger are curses.

2.8 Goals of PRAN Group:

Quality maintenance and improvement for satisfied customers.

Hold on to the current customers and gain customer loyalty at the same time.

Gain competitive advantage over all the competitors.

To double the sales and expand production capacity every 7-8 years.

To become one of the top in international fruit and vegetable processing industry.

2.9 Quality Policy

It is the Policy agricultural marketing co ltd to market product of consistent quality at home and

abroad as per world standards produced hygienically in accordance with good manufacturing

practices in state of the ART plants and processes, packed in appropriate packaging and remain

committed to these objectives all times.

AMCL have adopted ISO-9001 as the model for the quality management system. Accordingly

documented system of procedures and instruction have been established throughout the

organization defining business processes, responsibilities and authorities.

Management is committed to providing the resources and creating an environment in which

2.10 Corporate Social Responsibility (CSR)

The idea of corporate social responsibility is being widely promoted all over at AMCL-PRAN with

the additional compulsion to make profits in order to thrive and grow. Pran, CSR initiative

revolves around pran promises to the community, to the preservation and conservation of

natural resources, to the environment and to the employees.

Promises: To the preservation of natural resources and environment.

Community forestation: In different locations around Bangladesh, Pran are planting trees to

save planet.

Effluent Treatment Plant: To ensure safe disposal of factory wastage pran are got ETP, in all

the establishment of Pran.

Heat Recovery Boiler: Pran recovers the heat to save energy that produces and utilize it to

production facilities.

ATM Service: ATM services in the factory premises.

Promises: To the Employees.

In addition to salary and bonus, AMCL provides following benefits to the employee.

Welfare scheme for family of departed employees. On the job and off the job training. Free food snacks to workers. Transport for worker. Health and safety work place. Medical facility. Transport. Free clothing and soap. ATM services in the factory premises.

CHAPTER 03: operating policy and marketing strategy of pran

3.1 Business Portfolio (SBU’s):

Boston Consulting Group analysis is a chart that had been created by Bruce Henderson for the

Boston Consulting Group in 1968 to help corporations with analyzing their business units or

products lines. This helps the company allocate resources and is used as an analytical tool in

brand marketing, product management, strategic management, and portfolio analysis. BCG

Matrix is a tool that highly used in deferent types group of industry to find out; the position of

their deferent type of products, for taking decision what will be their next business strategy. In

BCG Matrix the platform of every individual product are compared with relative market share

and market growth rate. Relative market share which is measured on the horizontal axis and

market growth rate is measured on the vertical axis.

BCG Matrix

Question mark Stars Cash cows Dogs

According to the BCG Matrix I can discus findings in bellow :

Question Marks: Drinks are products with a low share of a high growth market. They consume

resources and generate little in return. They absorb most money as the company attempt to increase

market share.

Stars: Chanachurs are products that are in high growth markets with a relatively high share of that

market. Stars tend to generate high amounts of income. The company must spend substantial funds to

keep up with the high market growth, & to fight off competitors attack.

Cash Cows: The Confectionery, Juice, chatny and pran Dal are products with a high share of a low

growth market. Cash Cows generate more than is invested in them. So the company should keep them

in its portfolio of products for the time being.

Dogs: The Beverage and Dairy are products with a low share of a low growth market. These are the

canine version of 'real turkeys!’ They do not generate suffient cash for the company, they tend to

absorb it. The company should develop or get rid of these products.

In short we can see the market growth, Relevant market share and position on BCG Matrix of PRAN PRODUCTS:

Market growth and Relevant market share of PRAN Group:

Name of product Market growth Relevant market share

Beverage 4% 0.5x

Drinks 14% 0.3x

Confectionery 3.5% 5x

Snacks 14% 3.5x

Dairy 6% 0.4x

Juice 2% 7.5x

Chatny 4% 3x

Pran dal 2.25% 7x

Chanachur 13% 2x

Market growth and Relevant market share of PRAN Group in pie chart:

Products position in BCG Matrix:

Name of product Position on BCG matrix

Beverage Dogs

4%14%

4%14%6%2%

4%

2%13%

BeverageDrinksConfactionarySnacksDairyJuiceChatnyPran dalChanachur

Drinks Question mark

Confectionery Cash cow

Snacks Star

Dairy Dogs

Juice Cash cow

Chatny Cash cow

Pran dal Cash cow

Chanachur Star

3.2.Major Export Product:

Juice, Drinks, Beverage, Culinary, Snacks, Confectionary, Dairy, Fruit Juices, Fruit Drinks Instant

Powdered Drinks, Pickles, Canned Fruits &Vegetables, Extruded & Fried Snacks, Tea, Aromatic

Rice, Puffed Rice, Flattened Rice, Jam & Jelly, Plain Spices, Blended Spices, Mustard Oil, Mineral

Water, Dehydrated Fruits, Tomato Ketchup / Sauce, Toffees, Candies, Bubble Gum, Biscuits &

other confectionery etc.

3.3 Major Export country:

India, KSA, UAE, Kuwait, Bahrain, Qatar, Djibouti, Angola, Australia, Austria,, Belgium, Benin,

Brunei, Burkina Faso, Bhutan, Cameroon, Canada, Capo Verde Islands, Chad, Congo Eritrea,

Equatorial Guinea, Ethiopia, France, Gabon, Gambia, Germany, Ghana, Greece Guinea, India,

Italy, Ivory Coast, Japan, Korea, Lebanon, Malaysia, Mali, Mauritania Mauritius, Myanmar,

Mayo tee, Nederland Antilles, Nepal, Niger, Oman, Pakistan, Palestine, Qatar, RCA, Reunion

Islands, Senegal, Sierra Leone, Singapore, Sri Lanka ,Sudan, Sweden, Switzerland, Togo, UK, USA

& Yemen.

3.4. Market Demand

In my observation and information I can say that the demand of PRAN products is very honorable in the

market.

A chart is given below which shows the percentage of different PRAN products in the market position:Ju

ices

Carb

on

ate

...

Con

fecti

o..

.

Sn

ack

s

Sp

ices

Dair

y p

rod

...0%

5%

10%

15%

20%

25%

30%

East