1. This document provides an overview and analysis of the marketing strategies of PRAN-RFL Group, a leading food and beverage manufacturer in Bangladesh.
2. It analyzes PRAN's current product portfolio using the Boston Consulting Group matrix and identifies stars, cash cows, question marks, and dogs. It also discusses PRAN's use of cost leadership and differentiation strategies.
3. The document examines PRAN's international expansion and new product development using Ansoff's Matrix, identifying strategies of market penetration, market development, product development, and diversification.
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Course: MARKETING MANAGEMENT [B]
Faculty: Redwan Salam
Assignment Information
Assignment Title: PRAN & RFL GROUP
Assignment Type: Individual Group
Assignment Weight: 30% of
Term Total
Deadline for Submission
Print Copy: 27-10-15 – Class Room Soft Copy: 27-10-15 redwan.salam@aiub.edu
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Student Details
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R
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HOSSAIN, MD. AFZAL 13-25006-3
RANA, MD. MASUD 13-25091-3
ISLAM, FARIHA 14-25735-1
AFROOZ, HAFSA 14-26438-1
MIAZI ABDULLAH AL SAOMEYEE 13-24967-3
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2. 2 | P a g e
Company Overview
Background—
Major General (Ret) Amzad Khan Chowdhry 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.
“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.
PRAN stands for Programmed 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. 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 our 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, our 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. We intend to expand our presence to every corner of the world and strive to
make “PRAN” a truly international brand to be recognized globally.
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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.
Mission—
“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 enterprise
Vision—
The vision of the company is to create a wonderful brand image throughout the world.
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The BostonGroup Approach(Growth-Share Matrix)
PRAN
Analyzing the Current Business Portfolio in PRAN
Star
Snacks(fried, pallet)
Pure Drinking Water
Sauce, Ketchup and Paste
Lachcha Semai
Jam & jelly
Juice
Question Mark
PET Bottle ?
Candy
Lollypop
Instant Power Drink
Chewing Gum
Spice
Fruit Bar
Cast Iron Product
Building Materials
Frozen food
Bakery
HDPE shape pack
Cash cow
Aseptic Pack
Tin Canned
Fruit Drink
Milk drink
Health Food Drink
Noodles
Dogs
Energy Drink
Instant Consumable Jelly
Honey
Safe salted drink
Breakfast and Refreshment
Canton Soup
Mustard oil
5. 5 | P a g e
Star:
These star products have high growth rate and high relative market shares. The high profitable
products for PRAN .
Cashcow:
Cash cow PRAN products have low growth but high market shares.
QuestionMark:
Question mark PRAN products have high growth but low market shares.
Dogs:
Dogs PRAN products have low growth and low market shares.
RFL:
The growth share matrix (Boston consulting Group) each product is assigned a strategic role on
the basis of its market growth rate and relative market share.
There are four types of strategic business units:
Stars: stars are those business units having high growth and high share. In RFL the star product
in jug category is Prism jug .
Cash cows: cash cows are those services that have a dominant share of a slowly growing market.
In RFL the cash cow product in jug category is conical jug.
Question marks: question marks are also known as problem children. These services are
services with low share of fast growing market. In RFL the question mark product in jug
category is Trans Blue Orchid.
Dogs: Dogs are those service units with a low share of a slowly growing market. In RFL Blue
color jug is termed as dog .
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Michael Porter’s Generic strategic
Goals indicate what a business unit wants to achieve and strategy is a game plan for
getting there.
PRAN & RFL following cost leadership and also focuses differentiation strategy.
Aiming to become Lowest Cost Producer
The firm can compete on the price with every other industry and earn higher unit profits.
Cost reduction provides the focus of the organization’s strategy.
Targets a broad market PRAN focus Indian market.
Competitive advantage is achieved by driving down costs.
A successful cost leadership strategy requires that the firm is the cost leader and is
unchallenged in this position.
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Especially beneficial : where customers are price sensitive
the customer satisfaction and cost consideration RFL can come about through the premise that
increases in quality resulting in increased customer satisfaction can lead to reduced costs through
improving market place performance .As a result successful pricing bridges the gap between
internal costs and external market demand to achieve a positional advantage. The strategic
options for RFL are defined by:
Cost structure of the firm: RFL sells provide reasonable product with reasonable price.
Competitive status of the firm: RFL is the market leader in the plastic industries.
Marketing strategies based on competition: RFL usually formulates marketing strategies
based on the competitors in the relevant field such TALUKDAR plastic, TANIN plastics
etc.
Organizational capabilities: Being the market leader, RFL possess enough resources that
is their competitive advantage.
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Product/Market Expansion Grid Strategies: The
Ansoff’s Matrix:
Beyond evaluating current business, designing the business portfolio involves finding businesses
and products the company should consider in future. PRAN is Currently Producing More Than
200 Food Products Under 10 Different Categories.
Market Penetration Strategy: Current market + Current Product .
• Advertisement
• Encourage new customers
• Increase Market Share
• Attract new customer
• Competitors' customers
Market development: Best National Export Award” for 8 consecutive fiscal yearsIn Recent
Times, PRAN has Got the “UDC BUSINESS AWARDS 2011” as the Best Food & Beverage
Products Manufacturer in Malaysia.
• Target new market
9. 9 | P a g e
• New potential group
• Encourage new customers
• Add distributional channel
• New location
• Thay are export existing product new market like india , malosia europ country there are
so many product export such as juce , drinke , confectionary , culinary , beverag , dairy
etc .
• PRAN is looking for new markets by applying different marketing strategies to increase
their market share as much as possible
Product Development Strategy : Current market + New Product
• Develop product feature and new look
• New taste
• New flavour
• Quality
Diversification Growth: There are three types of diversification
Concentric Strategy:
• Sugary, Orange-flavored, non-carbonated soft drink( With Fruit nutrition) like
Tang.
• Orange Powder Drink-Technological similarity
Horizontal Strategy:
• By Developing a new product line of “Ice Cream”
• Row material Support
Conglomerate Strategy:
• Organic Food - Existing channels of supply
10. 10 | P a g e
• By developing a totally new product line concept of Organic food (Vegetables, Fruits)
and Introducing “PRAN Super Store” for Organic Food.
The Area Of concentration:
• New Marketing effort should be introduced.
• Launch in same economic environment.
• New skills and techniques are required.
• Expansion of human resources and financial resources are required.
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 which they provide products to give better satisfaction to the
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