Assignment on

Online Shop Marketing Strategy of PRAN RFL Group

Submitted To

Dr. Md. Humayun Kabir Chowdhury

Associate Professor

Department of Marketing & International Business

North South University

Course Name: Marketing Strategy

Course Code: MKT 634

Submitted By:

Name: Najib Mubin

ID: 1915323660
 Acknowledgement
First I do like to pay gratitude to almighty God by whose grace and blessing I have been able to
conduct this Assignment. Then I would like to thank Md. Humayun Kabir Chowdhury who
sincerely supervised my work by providing valuable ideas, concepts, guidance and suggestions.
This assignment is not an exception from the mentioned criteria. In spite of my best efforts if
there is any errors fall out, please suggest me to improve myself.
Introduction:

PRAN RFL Group, one of the most reputed conglomerates in Bangladesh since 1981. It started
mainly with Foundry business and gradually diversified to Light Engineering, PVC Fittings,
Plastics, Food and Beverage, and Agro-Processing. PRAN has now established itself as one of
the top manufacturing companies and has set the grounds for development for any potentialities.
It has a marketing and selling network in about 110 countries. But PRAN has not introduced
their online shop yet. It has lots of grocery products, ready-made foods which are consumers'
daily necessities. So it is high time to go for an online shop for the betterment for both the
consumers and the company. Shop link will be 'shop.pran.com'.

Vision:

Improving Livelihood

Mission:

Making the consumer life more convenient & being the market leader in Online Shop

Goals:

1. Provide better customer services

2. Achieve customer satisfaction
3. Increase profit margin
4. Capture a bigger market share

Marketing:

Marketing is the activity, institutions and set of processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients and society. Market
means value. If any product has no value then there will be no market. And marketing creates the
value for the consumer.

Market-Driven Strategy:

A market-driven strategy is the planning and deployment of business resources to achieve a

central set of objectives through a continuously changing set of circumstances. It is customer-
focused and organizational-wide with every level of the organization having its business unit

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strategy nested within the larger corporate strategy. A market-driven strategy allows a company
to truly understand its market and the customers that are the basis for this market. This effort
allows for more effective integration of all activities that may impact customer value, which in
turn affects both return-on-investment and profitability.

Characteristics of Market-Driven Strategies:

1. Becoming Market Oriented

2. Leveraging Distinctive Capabilities
3. Creating Value for Customers
4. Becoming Market Driven

Strategic Situation Analysis:

Consumers are getting busier day by day. They want their product in a very convenient way. If it
comes with grocery shopping then the question comes about convenience, time-saving, cost
minimization, etc. Now consumers are used to shopping online regularly. On the other hand, the
whole world is facing a pandemic situation which is COVID 19. The whole world is locked
down. So people are shopping more frequently online. Those who were not used to online, now
they are placing orders online using mobile or computer. Already PRAN has great value to the
consumer. If they can get their daily needs online sitting on the home it will be more beneficial
to them. So it is high time to go for online of PRAN RFL Group.

Markets and Strategies:

Strategies and Markets are interlinked. Market changes often require altering business and
marketing strategies. Customer expectations are changing frequently. Time is very much short in
their hand for grocery shopping. Now Bangladesh is facing COVID 19 as people all over the
country are locked down. They are expecting their daily needs at their door. So online service
will be very effective for them.

Demographic shifting is another reason. For demographic shifting consumers’ life and work
style are changing day by day. Everything is going online and the consumers want it. Globally
this change has been noticed in previous years. Bangladesh is not lagging behind. Already online

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shopping is popular and it is getting more popular day by day. With this changing lifestyle of the
consumers’ selling style should be changed. So, we have to go to an online service.

Value migration:

Value migration is the process of customers shifting their purchases away from products that
offer inferior value to new ones that offer superior value. Consumers always search for better
value. If they find superior value than the previous, they will go for the superior value.
Sometimes price comes to question if the value is more. It should be in consideration of the
choice of the consumer. Consumers should get their desire value in their price range. Then the
consumer will be loyal to the product.

Marketing Environment

The Marketing Environment includes the macro factors and the micro factors that surround the
business and influence its marketing operations. Macro factors mean external factors and micro
factors mean internal factors. Some of these factors are controllable while some are
uncontrollable and require business operations to change accordingly.

Micro Environment Factors

 Suppliers: Suppliers can control the success of the business when they hold power. The
supplier holds the power when they are the only or the largest supplier of their goods. But
PRAN is a large company. Here supplier power is limited.

 Customers: Customers are the reason for buying the product will play a large role in how
you approach the marketing of your products and services to them. PRAN has already a
huge loyal customer. They will be happy to shop online.

 The competition: Those who sell the same or similar products is market competitor and
the way they sell needs to be taken into account. There are many good competitors in
market. Good competitors are another reason for the growth of sell.

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Macro Environment Factors

 Demographic forces: Different market segments are typically impacted by common

demographic forces, including country/region; age; ethnicity; education level; household
lifestyle; cultural characteristics and movements.

 Economic factors: The economic environment can impact both the organization’s
production and the consumer’s decision-making process. Now the govt. is facing a
recession that can affect the business. Physical shopping can decrease, on the other hand,
online shopping can go up.

 Technological factors: The skills and knowledge applied to the production, and the
technology and materials needed for the production of products. PRAN has modern
technology so that the production can’t be hampered.

 Political and legal forces: Sound marketing decisions should always take into account
political and/or legal developments relating to the organization and its markets.

 Social and cultural forces: The impact the products of PRAN brings to market have on
society must be considered. PRAN has few negative ideas about some products. Those
should be eliminated to show PRAN is taking social responsibility.

Identifying and Describing Buyers:

Family Size is the main issue of grocery shopping. Large family needs a large amount of grocery
every day. They will be the main target so that they can get their regular necessary things near
their door.

Age is also a good factor. Young people always want to shop online. They don’t want to go into
the market physically. On the other hand, aged consumers prefer physical to online. So,
promotion should be in the proper way so that the aged consumers can feel the necessity of
online.

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Higher-income consumers will buy premium quality products more frequently. Geographical
location is also a good factor for online shopping. If someone is in a remote area he/she will try
to buy using online. That will be more convenient for those consumers.

Occupation is one of the main factors. The corporate people are so much busy to shop for daily
necessary products. They always try to place orders online using their mobile or computer within
their office time. So that their valuable time can be saved and easily can get good products in
their home.

How Buyers make Choices:

Buyers make a choice when he/she faces a problem. When consumers recognize problems they
search for information. Then they evaluate the need. When they get a good overview they make a
purchase decision. After purchasing the product they show post-purchase behavior. If the
consumers satisfy and get the proper value they give a good review. Observing the review of
other consumers gets more attractive to that particular product.

Competitive Arena:

There are two types of competitors. Direct and indirect competitor. A direct competitor offers the
same products and services aimed at the same target market and customer base, with the same
goal of profit and market share growth.

An indirect competitor is another company that offers the same products and services, much like
direct competitors; however, the end goals are different. These competitors are seeking to grow
revenue with a different strategy.

The first task is to identify the key competitor. There are many online grocery services available
in the market. So, there will be several key competitors. After research, I found the key
competitors are ChalDal, Shopno, Evaly, Othoba, Daraz.

Key Competitor Analysis:

For an online shop competitor analysis is so important. Many competitors got essential
information’s from their customers about their choice, preferable price, behavior,
recommendations, etc.

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Chaldal.com:

Chaldal has essential information about their customers, still their resources grow day by day on
your choices, preferences, recommendations and orders. Chaldal.com has a database of target
customers also, whom they do text message with invitation coupon or free delivery of goods.

shwapno.com:

Their motto is “Everyday A Better Life” They are the largest grocery chain in Bangladesh. They
deliver orders within two days. They have no delivery charge but they take 7% vat. They are
growing day by day.

Daraz.com:

We have seen previously that Daraz was not interested in this sector, but now we can see that
Daraz is also selling home appliances, remedies or groceries. They created Daraz Mall and are
selling different kinds of groceries. But they steal have a problem that is delivery time. They take
3-5 days to deliver the product because they have different sellers. They have to collect products
from them. That’s why their product variety is huge.

Othoba.com:

They strive to utilize the power of the internet in its highest peak to fulfill the needs of your busy
life. They have different kinds of products but their sellers are also different like Daraz.
Customers can’t find everything from a store and the delivery charge also becomes very high.

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Evaly.com:

Evaly is the fastest growing online market place in Bangladesh. Recently evaly has introduced
Grocery express, Bullet express, Food express. Though they are providing 20% cashback in
evaly balance, product price is too high. Their delivery system is poor.

Competitor Evaluation:

Customer Product Product Technical Selling

Awareness Quality Availability Assistance Staff

Chaldal G G P G E

Shopno F G G P G

Daraz E G F E F

Note : E - Excellent; G - Good; F – Fair; P - Poor

SWOT analysis:
To identify the strength and weaknesses, and opportunities we have and threats for us- doing
SWOT analysis in important. Evaluating a company’s strength, weakness, opportunity and threat
is known as SWOT analysis.

Strengths:

 What opportunity PRAN RFL has over its competitor? I think the most strength will be
its reputation. It has become a brand which is their main strength.
 Products of PRAN are quality full.

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  PRAN is able to serve all over the country.
 PRAN products are BSTI certified.
 PRAN can able to handle a large amount of demands.
 Marketing skill is good.
 Brand name has a reputation in current market.

Weaknesses:

 PRAN doesn’t have its’ own outlet. So people who want to buy by physically can choose
another brand product from any shop.
 Still, PRAN can’t produce vegetables, fruits, and raw spices; as the market demand is
huge.

Opportunities:

 In Bangladesh still online based shopping market is growing, so there are enough future
ahead.
 Still, the numbers of competitors are few.
 Diversified products could be marketed by suing the same platform

Threats:

 There are strong competitors like chaldal, shwapno, and daraz are rolling the market.
 Governments do impose new rules and regulations from time to time.
 The taste and preferences of consumers don’t remain the same always, so the company
needs to update its’ strategy also time to time.

Marketing mix:

Product, Price, Place, Promotion are the main base of marketing mix. In marketing, this 4 thing
is considered very important.

Product:

This is the most important point because without a product or service business couldn’t be
formed.

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  PRAN has every type of grocery ready-made products and some unique products
comparing to competitors.
 The quality of products is good and gives a superior challenge to others.
 Packaging and the quality of product will make consumers’ ensure about how hygienic
the products are.

Price:

To attract customers, pricing policy needs to be always identical. As the market is too much
competition, there is no scope for earning much profit from per piece. Offering various
promotions, discounts, can reducing products price a bit but selling huge amount will make a
good profit. Products price will be same as the body price.

Place:

PRAN will ship their product all over the country. PRAN will create warehouses in every district
and city. They will have pickup vans to carry large order, and to complete small orders, they
have delivery boys who will use cycle or motorcycle in order to deliver the product. Delivery
time will be at most one day. A Specific time can be set and they will send the products during
that time. There are two delivery rates: 20 for normal order and for ordering amount above
1000tk the delivery fee will be free.

Promotion:

PRAN will not only follow the traditional way of advertising, like print media or electronic
media but also some creative advertising. Google Adsense / Adwords: It expenses huge to do
advertise by google, that’s how we can see advertise of “PRAN Online” on various WebPages
and also on youtube. Facebook.com: It also runs facebook campaign to promote their official
offer or videos. Email marketing: Sends individual emails or bulk emails for promoting purpose.
SMS marketing: Sends bulk sms to a collected database of numbers.

Sales Promotion will include discount 2 – 15% on order price, special offer on different
products, free delivery, purchase one get free one, invitation bonus like inviting one’s friend,
he/she will get a bonus, etc. Customer care executives, who calls individually to convince people
about their products and services. Campaign on university campus or shopping malls will be
good publicity.

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Market Segmentation:

Consumer markets: The characteristics of people fall into two major categories, such as (1)
Geographic and demographic and (2) Psychographic (Lifestyle and personality)

Geographic segmentation will be customer location, a region like urban or rural. Product and
service will vary geographically. First, we have to start an online shop in Dhaka city. Every
product and a new product will be available in the city area first. Step by step the shop will
spread in the rural area. Demographic segmentation will be age, gender, occupation, socio-
economic group. Different products and promotions will be for different ages and gender.
Female customers always search for cooking products on the other hand male customer want
ready-made food, frozen food, personal things, etc. Occupation also varies for the choice. Public
and private jobholders' lifestyle is different. That's why their shopping style is also different. So
they will be recommended differently.

Psychographic will be personality, lifestyle, attitude, and class and behavioral segmentation will
be the rate of usage, loyalty status, readiness to purchase. Psychographic segmentation varies
from person to person. Customers' needs and attitudes reflect understanding the nature and
intensity of the needs, the buyer's overall liking of or preference for a brand. Consumption
variables such as the size and frequency of purchase. Customer daily shopping data will be
collected so that we can identify the consumers' lifestyle, class, and loyalty. According to that
data, different consumers will be offered different promotions so that they shop online easily.

Organizational market segmentation is aided by first examining (1) market type and (2) market
size. Online market size will depend on product size. PRAN has lots of products of their own.
All products will be available online. When new products will come into the market the shop
size will be bigger.

Market Targeting:

PRAN will target the residents of Dhaka first. In rural areas people won't enjoy shopping online,
where the place remains crowd, no parking place, muddy road, needs to bargain a lot. So
targeting will be geographic segments. All of the peoples of Dhaka, to get their service, through
which they can buy groceries from their home. Day by day the online service will spread though

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over the country. The product category of PRAN is mass. Still, I don't see any irrelevant products
over there, which doesn't suit. In the future, they are going to cover any product which might be
needed in-home and in corporate places.

PRAN primarily focuses on Improving Livelihood to be its main benefits since it ensures that
only the finest quality and freshest products go into making. Hence, it primarily appeals to
customers with a basic level of consciousness regarding health issues and it requires a certain
educational background for perceiving such benefits. Therefore, the product should be targeted
to customers who are educated enough of possessing a minimum understanding of health issues.

The socio-economic classes chosen to be primarily targeted include household of medium to a

higher level of income who fully possess the purchasing affordability for buying the product.

Female customers residing in urban areas are the primary target market because the urban
customer-base mainly consists of households where the buying decision of convenience goods is
primarily made by housewives and the purchasing is primarily done by the housewives of
particular families. This is the niche market segment consisting of male individuals who perform
the shopping chores for their families residing in urban and rural areas. So, the male is the
secondary target.

Psychographic segment targeting like Social Class. Since the product we are dealing with is of
all category and concerned with the health issues, the chosen social classes to be primarily
targeted include the households of medium to the upper social class who are educated enough to
understand the health issues. It is clear that the classes we are targeting generally live in urban
localities and this is our primary target market. The lifestyle of customers is also a target market.
The people who favor convenience products and are cautious of the health issues since PRAN
offers different types of products ensuring its' quality.

Market Positioning:

Attribute positioning: It is to associate a product with a product feature, or a consumer feature.

Sometimes a product can be positioned in terms of two or more attributes simultaneously. The
price/quality attribute dimension is commonly used for positioning the products.

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Benefit Positioning: Communicating the unique benefits of a product or service has long been a
popular brand position. The goal of this positioning is to highlight your company's most
powerful attributes that no competitor can claim and that are valuable to the consumer. For
example, PRAN has ready-made biriyani and khichuri which has no competitor in the market.

Use or Application Positioning: Positioning the product as some of its' best use or application.
There are a lot of products that PRAN has best use or application. For example, PRAN Sauce
"Sauce ar Boss".

User Positioning: Another positioning approach is to associate a product with a user or a class
of users. In this position we will use different celebrities, models as spoke persons for different
products according to their use. For example, Bollywood actress Sonakshi Sinha represented
PRAN Frooto drinks to position PRAN drinks products.

Quality or Price Positioning: The price/quality attribute dimension is commonly used for
positioning the products. Products can be categorized according to quality and price. Premium
quality products' price range will be high on the other hand, standard quality products' price
range will be lower than premium.

Competitor Based Positioning: Competitive positioning is about defining how you'll

differentiate your offering and create value for your market. For example, there are lots of
mustard oil in the market but PRAN Mustard oil is offering the healthiest.

Recommendations:

After studying a lot, I came up with some recommendations for PRAN Online Shop. PRAN
should go for an online shop as soon as possible. How the activities including product collection,
storing, and quality management are needed to be done more elaborately mentioning on the
webpage. So that Curious clients will find essential information about products. Online response
like customer care service should be quicker. The payment system should include all types of
methods like bkash, rocket, ucash, debit/credit card, etc. The online shop should always check
product price update of its competitors, to make sure that their product price is lower than others.
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Advertising should be rigorous. If we can satisfy the consumers properly, our online shop will be
successful. 

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