Bangladesh University of Business & Technology

BUBT
CASE STUDY
On
PRAN Group

Submitted to:
MR. FAYEZ AHMED
Lecturer
Department of MARKETING
BUBT

Submitted by:
MOHAMMAD AFZAL AREFIN
Group Representative of “CONQUEROR”
Program: BBA, Intake: 21st, Section: “A”
ID# 09102101138

Date of Submission: 04/05/2013

 Group Profile: CONQUEROR

Total
Se
SL # Name ID # Mark
c s
Md. Shahadat hossain 0910210109
A
1 Bappy 1

0910210112
Md. Anisul Haque Khan A
2 9

0910210113
Mohammad Afzal Arefin A
3 8

0910210113
Asadujaman Nur A
4 3

0910210116
Md. Ayet Ali A
5 0

0910210116
6 Md. Saleh Kabir
1
A

MKT 406 Page - 1 -

 Case Study of PRAN GROUP

Background
“Poverty and hunger are curses”- mission of PRAN-RFL group. So
their aim is “to generate employment and earn dignity and self respect
for our competitors” through profitable enterprises. For the
achievement of this mission and aim the most recognized PRAN-RFL
group was established and started manufacturing in 1982. Major
General (Ret) Amzad Khan Chowdhury people of Natore, was the
founder and the managing director of PRAN-RFL group. His son Mr.
Ahsan Khan Chowdhury is the deputy managing director of this group.
PRAN-RFL group is now one of the greatest and significant and most
successful companies in Bangladesh. They are now challenging the
other multinational companies.

PRAN stands for Program for Rural Advancement Nationally. “PRAN”

is currently the most well known household name among the millions
of people in Bangladesh and abroad also. Since its inception in 1980,
PRAN Group has grown up in stature and became the largest fruit
and vegetable processor in Bangladesh.

MKT 406 Page - 2 -

It also has the distinction of achieving prestigious certificate like ISO
9001:2000, and being the largest exporter of processed agro products
with compliance of HALAL & HACCP to more than 70 countries from
Bangladesh.

PRAN is the pioneer in Bangladesh to be involved in contract farming

and procures raw material directly from the farmers and processes
through state of the art machinery at several factories into hygienically
packed food and drinks products.

The brand “PRAN” has established itself in every category of food and
beverage industry and can boost a product range from Juices,
Carbonated Drinks, Confectionery, Snacks, and Spices to even Dairy
products.

Today, consumers not only value “PRAN” for its authentic refreshing
juice drinks products, but also for its mouth watering quality
confectionery products with high visual appeal and exciting texture.

Intend to expand the presence to every corner of the world and strive
to make “PRAN” a truly international brand to be recognized globally.

RFL Stands for Rangpur Foundry Limited (It is a water pump and
plastic pipe industry). From the time being it has now 17 associated
companies and they are beverage, property, agro based, tube wells,
plastic pipes, etc. these associated industries are in- Natore, Rangpur,
Ghorashal and Dhaka.

MKT 406 Page - 3 -

The vision of the company is to create a wonderful brand image
throughout the world with its different types of household, foods &
beverage products.

 Juice—
1. Returnable Glass Bottle
2. Aseptic Pack
 PRAN Junior Juice 125ml.
 PRAN Juice Pack 125ml.
 PRAN Joy Juice 200ml.
 PRAN Cool Juice 200ml

Building Materials
 PVC Door
 PVC Sheet

Practice of Marketing Concepts

The marketing concept is the philosophy that firms should analyze the
needs of their customers and then make decisions to satisfy those
needs, better than the competition. The marketing concept relies upon
marketing research to define market segments, their size and their
needs. To satisfy those needs, the marketing team makes decisions
about the controllable parameters of the marketing mix. Today most
firms have adopted the practice of marketing concept.

MKT 406 Page - 4 -

 PRAN GROUP is a concept to fight against the core of people’s poverty
hunger in Bangladesh in the shortest possible time through
employment generation.

PRAN-RFL group now makes a great position in the market of

Bangladesh. Welfare measures are very important for a well-structured
and well-recognized organization to gear up its working conditions and
run its work with disciplined and smooth way. According to our survey,
we found that PRAN-RFL group all ways tries to follow the Labor Act,
2006. Their thinking is to achieve the organizational target with full
participation of the employees and give maximum welfare.

Needs, Wants & Demands

Markets Products, Services & Experiences

Exchange, Transactions & Relationships Value & Satisfaction

MKT 406 Page - 5 -

As it is intended to expand presence to every corner of the world and
strive to make “PRAN” a truly international brand to be recognized
globally. Design, implement, and facilitate annual marketing plan.
Support and facilitate development and implementation of section,
business/marketing plans. Develop marketing strategy. Plan and
administer the Marketing Operations budget. Oversee business
development activities. Develop and administer marketing database.
Manage marketing dept.

PRAN-RFL Group has taken a special initiative for children and teens
titled go to PRAN in a team, see and then take it. The management of
the Group takes the program with a view to flourishing up intellect as
well as makes the children and teens aware of the science of
processing PRAN food products, said a press release. Under the
program, students from class-I to class-X of any educational
institutions will get opportunities to visit PRAN factory and then to
express their observations on its various aspects.

The day-long program included various types of interactive events and

quiz show also. Taking advantage, 300 students of Sunny Dale School
of the city along with their teachers visited PRAN factory recently.
They visited different production line of PRAN Industrial Park at
Nursing and observe ocular demonstration of production of PRAN
products. All the teachers and students were delighted and expressed
satisfaction over maintaining proper hygiene and sanitation in the
factory.

MKT 406 Page - 6 -

Structure of Supply Chain Management of PRAN-RFL
Group

Raw material

Component PRAN RFL Distributor Wholesaler Retailer

Group
Rural

Food, Fruits, Beverage, Plastic Furniture, Plastic Hangar are the main
raw materials of PRAN-RFL group Ltd. Manufacturer by main company.
Southeast, Asia Africa, Middle East, Eastern Asia are the main & most
distributor of PRANRFL group. The wholesalers are various
warehouses. They are the largest food processing and Plastic
Manufacturing Company in Bangladesh having 7 offices across the
world. Our products are being exported to more than 72 countries of
the world. The retailers are which available any country gosary shop.

List Business Portfolio (SBUs) of the organization

RFL Plastic Ltd.
RFL is a nationally recognized brand in Bangladesh for plastic, PVC and
iron product. RFL plastics a subsidiary of RFL industry is the largest
manufacturing of indoor and outdoor plastic products for domestic and
export market. RFL Plastic Limited commenced its operation in 2003.
The vision of the company is to make molded household products and

MKT 406 Page - 7 -

furniture made of plastics with decorative design at an affordable
price.
PRAN Agro Marketing Company Ltd.
PRAN Group is a well diversified company established in 1980. PRAN is
pioneer and leading conglomerate in agro-based business industry in
Bangladesh. It has been exporting & marketing its various food,
beverage, confectionary products and plastic made households in 65
countries all over the world. It comprises 12 companies with multiple
product line. Its annually turnover approximate Tk.600 core. Over
3000 employees work under PRAN group. It is an ISO 9001, UKAS
certified company.

Industry Focus: Bread & Biscuit, Dairy Products,

Business Type: Manufacturer
Products/Services: Food and Beverage, Biscuit, Confectionary,
Plastic Households, PVC Pipe,
Markets: Southeast Asia
No. of Employees: above 3000 People
Annual Sales: US$50 Million - US$100 Million
Range (USD)
Year Established: 1980

Rangpur Dairy Product

RANGPUR, Aug 21: The Rangpur Dairy (RD) Milk processing factory at
Boldipukur in Mithapukur Upazila of the district has provided solvency
to hundreds of monga-hit poor in Rangpur. These poor people are now
rearing cows at home and selling milk to factory, first ever small
private industry set up in the district after the commissioning of

MKT 406 Page - 8 -

Jamuna Bridge. Rangpur Dairy Milk undertook a laudable step earlier,
to support the poor providing cows on easy terms to produce milk at
home so that they might be benefited financially. RD Milk Manager
said, "We have provided 400 cows among 350 families of Salaipur and
Muradpur under Mithapukur Upazilla. He said, "The Company not only
aims to do business but also wants to create a financially sound
community in the process. He also said, "RD Milk has not donated the
cows to the beneficiaries free of cost. They had to pay the purchase
rate of the cows in exchange of supplying milk to the factories for a
certain period. When the prices of the cows are completely realized,
the authority would transfer ownership of the
Animals to them”, he said.

Alam Miah at Muradpur in Mithapukur Upazilla who received two cows

from RD Milk said that he paid the price of the cow to the company. He
is now milking 30 litres out of which earning Tk 750 a day. RD Milk
Managing Director Foqueruzzaman said, the poor people of Rangpur as
well as dairy farmers in the district are getting benefit from RD. He
said the dairy farmers in Rangpur who were in utter frustration and
were about to close their farms due to frequent loss even two years
back are now getting profit by selling milk to RD Milk.

MKT 406 Page - 9 -

Evaluation of Products of PRAN-RFL Group by BCG
Matrix:
Star
Question Mark ?
Hot Filled PET Bottle PET Bottle

Pure Drinking Water Candy

Sauce, Ketchup and Paste Instant Power Drink

Chewing Gum
Spice
Fruit Bar
Cast Iron Product
UPVC Product
Building Materials
Cash Cows Dogs

Juice Energy Drink

Aseptic Pack Instant Consumable Jelly
Tin Canned
Fruit Drink

MKT 406 Page - 10 -

Brand Development
A company has four choices when it comes to developing
brands.
 Line extensions
 Brand extensions
 Multi-brands
 New brand

New brand Line extensions occur when a company extends existing

brand names to new forms, colors, sizes, ingredients, or flavors of an
existing product category. PRAN-RFL follows the strategy.

Brand extensions:
Extend a brand to a new or modified product in a new category.
 Instant Consumable Jelly

Multi-brands are maintaining additional (more than one) brands in

the same category. Company offers multiple brands for single category
of product to their customers.

New brands are used when existing brands are inappropriate for new
products in new product categories or markets. The products are new
to the market.

MKT 406 Page - 11 -

Brand sponsorship:
PRAN-RFL is a private brand means store or distributor brand.tha
retailer of PRAN-RFL group can manufacture goods under its own label,
and can develop new brands.

 Promotional activities:
The PRAN-RFL group follows the Pull strategy. pull strategy is directing
the promotional mix at ultimate consumers to encourage them to ask
the retailer for the product.
 Used for B2C
 Ultimate consumers get the benefits of this strategy.

SWOT Analysis of PRAN-RFL Group

Strength:
 Strong distribution channel
 Human resource
 Wide drinks category
 They have their own factory, dairy and manufacture

Weakness:
 Management efficiency
 Training and development of company
 Short life cycle of product
 Positioning as a local manufacturing company

MKT 406 Page - 12 -

  Contract resource

Opportunities:
 Export Tie up with multinationals
 Strong brand image
 Competitor’s weak distribution channel
 Franchise business all over the world

Threats
 Aggressive competitors
 Changing consumer behavior
 Availability of foreign product
 Ad hock advertisements of competitor
 Using old technology

 Close Competitors of PRAN-RFL group:

 Square food and beverage
 ACI Foods and Beverage
 GAZI plastic
 AKIJ food and beverage

Conclusion
As a merger company PRAN-RFL not only takes a big portion on
market share through Food & Beverage but also plastic products are
dominating large portion in the market’s plastic products. Their target
is to reduce poverty through increasing employment and it has
become possible for PRAN-RFL by taking a stable position in the
market share. Companies first consider the demand of customers, on

MKT 406 Page - 13 -

which they provide products to give better satisfaction to the
customer.

MKT 406 Page - 14 -