It shows the comparison among these four multinational companies product mix

1. I
Term Paper for
Course Name: Brand Management
Course Code: 425
Submitted to:
Muhammad Ismail Hossain
Associate Professor
Department of Marketing
Faculty of Business Studies
University of Dhaka
Submitted by:
Group- Sparkling Stars
Batch: B.B.A (18th), Section- A
Dept. of Marketing, University of Dhaka
SL NO. NAME ROLL NO.
1. Farhana Tarannum Tania 51
2. Md. Kalam Hossain 73
3. AntuAich 87
4. Md. Abu Sufian 93
5. Md. Al-amin 97
6. Md. Khairul Islam 103
7. Md. MobarakHossain 153
8. Md. AlamgirHossain 191
9. Nadia Nasrin 205
10. FahmidaAkterShahela 207
Date of Submission:26th November, 2015

2. II
LETTER OF TRANSMITTAL
15th November, 2015
Muhammad Ismail Hossain
Associate Professor
Department of Marketing
Faculty of Business Studies
University of Dhaka
Subject: Submission of Term paper.
Dear Sir,
It is great to submit the report on” Brand Management, course no- 425 “as a BBA program. We
are to state that we are very much pleased to submit our report which is a part of our course.
We enjoyed preparing the report, which enriched our practical knowledge of theoretical
concept regarding Brand Management. I am very much glad that you have given us the
opportunity to prepare this report to you and hope that this report will help us to standardize
your judgment.
We apologize for any unified mistake found in writing or structuring this report. We are
confident that your advice clarifying any mistakes. We will always accept your suggestion
pleasantly.
Yours sincerely
Group- Sparkling Stars
Section – A, 18th Batch, BBA
Department of Marketing
University of Dhaka

3. III
ACKNOWLEDGEMENT
All glory and honor is for Allah, the Supreme Being who bestowed profound perseverance and
ability on us to accomplish this work.
We express our profound and cordial gratitude to offer thanks to our learned, kind and
experienced teacher, Muhammad Ismail Hossain, Associate Professor, Department of Marketing,
University of Dhaka for his valuable guidance constructive comments and continuous
encouragement throughoutassignment.
We also wish to give thanks to those parsons who encourages and co-operate with us in
preparing the business plan.
Yours Sincerely
Group- Sparkling Stars
18th Batch, BBA
Department of Marketing
Faculty of Business Studies
University of Dhaka

4. IV
EXECUTIVE SUMMARY
The report is as a requirement of BBA program of the Department of Marketing. The total report is
dividedinto4parts.The firstpart includesthe product/brandmix depth, width, length and consistency
of PRAN-RFL Group, Square group, Reckitt Benckiser and Caterpillar Inc.
In the 2nd
part of the report we have discussed the reasoning of diversification undertaken by the 3
companies.
In the 3rd
part we have foundthe reasoningof diversificationof PRAN RFLGroup- perceivedandgivenby
the stakeholders (e.g. customers, suppliers, dealers, distributors, retailers) other than the company
itself.
Andin the lastpart we have made an overall assessment of PRAN RFL against the chosen 3 companies.

5. V
Table of Contents
EXECUTIVE SUMMARY ..................................................................................................................................................................IV
METHODOLOGY...............................................................................................................................................................................1
LIMITATIONS ....................................................................................................................................................................................1
CATERPILLAR INC.............................................................................................................................................................................2
PRODUCT MIX OF CATERPILLAR INC.:.........................................................................................................................................2
PRODUCT MIX WIDTH:.....................................................................................................................................................................2
PRODUCT MIX LENGTH:....................................................................................................................................................................2
PRODUCT MIX DEPTH:.....................................................................................................................................................................2
PRODUCT MIX CONSISTENCY:...........................................................................................................................................................2
REASON OF DIVERSIFICATION OF CATERPILLAR INC.:.............................................................................................................3
HERITAGEOF INNOVATION:...............................................................................................................................................................3
TO SUSTAIN AND LEAD IN THIS COMPETITIVE MARKETPLACEAGAINSTCOMPETITORS: ..........................................................................3
CREATING VALUEFOR CUSTOMERS:...................................................................................................................................................3
CREATING SOLUTION FOR CUSTOMER’S PROBLEM:.............................................................................................................................4
MEETING THEDEMAND OF DIVERSIFIED MARKET:...............................................................................................................................4
PRAN-RFL GROUP............................................................................................................................................................................4
PRODUCT MIX ..................................................................................................................................................................................5
PRODUCT LINE .................................................................................................................................................................................5
PRODUCT LINE LENGTH ....................................................................................................................................................................5
PRODUCT LINE DEPTH ......................................................................................................................................................................5
PRODUCT MIX WIDTH......................................................................................................................................................................5
REASONING OF DIVERSIFICATION OF PRAN-RFL................................................................................................................................6
RECKITT BENCKISER (RB)................................................................................................................................................................7
INNOVATION AT RB AS ADRIVEFOR DIVERSIFICATION........................................................................................................................8
SQUARE GROUP...............................................................................................................................................................................9
PRODUCT MIX OF SQUARE GROUP:............................................................................................................................................9
PRODUCT MIX WIDTH:.....................................................................................................................................................................9
PRODUCT MIX LENGTH:....................................................................................................................................................................9
PRODUCT MIX DEPTH:.....................................................................................................................................................................9
PRODUCT MIX CONSISTENCY:...........................................................................................................................................................9
REASONS FOR DIVERSIFICATION: ..............................................................................................................................................10
THE OVERALL ASSESSMENT OF PRAN RFL AGAINST CATERPILLAR INC., RECKITT BENCKISER AND SQUARE LTD...11
OUR CONCLUSION ABOUT THE OVERALL ASSESSMENT OF PRAN RFL AGAINST CATERPILLAR INC. IS GIVEN .........11
ASSESSMENTON MARKETING MIX ACTIVITIES:..................................................................................................................................11
EXTERNAL ENVIRONMENT ASSESSMENT (PORTER’S FIVE FORCES COMPETITIVE ANALYSIS):...............................................................12
SWOTANALYSIS (THAKRAL,2015):...............................................................................................................................................13
RECOMMENDATIONS:.....................................................................................................................................................................14
FOR CATERPILLAR:..........................................................................................................................................................................15
CONCLUSION ..................................................................................................................................................................................16
WORKS CITED .................................................................................................................................................................................17

6. 1
Methodology
The study is descriptive in nature. Data used in this study are basically from secondary sources.
Primary data cannot be collected because of many constraints. Secondary data derive from
various sources including different websites. There are also some parts that have been derived
from others study of the persons who are in the real field.
Limitations
Collecting data was difficult as a lot of journals, periodicals and published data on this issue are
not available. We put all efforts to collect necessary data through resource and budgetary
constraint. Moreover, Interviewing target respondents were difficult as they were inaccessible
or not available. Officials were found too busy and also reluctant to talk without a proper
written permission from the competent authority. Moreover, while collecting data they did not
disclose much information/data due to the secrecy of the organization.

7. 2
Caterpillar Inc.
Caterpillar Inc. is an American corporation which designs, manufactures, markets and sells
machinery, engines, financial products and insurance to customers via a worldwide dealer
network. Caterpillar is the world's leading manufacturer of construction and mining equipment,
diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. CAT
provides a product line that effectively caters the different needs of its customers and also in
order to sustain in the competitive farm and construction machinery industry against other
companies such Komatsu Ltd and Deere & Company.
Product Mix of Caterpillar Inc.:
A product mix is the set of all products and items a particular seller offers for sale. The product
mix of Caterpillar Inc. consists of various product lines such as- Equipment, Power Systems, and
Attachment etc. A company’s product mix has a certain width, length, depth and consistency.
These terms are illustrated in case of Caterpillar Inc. in the following description-
Product Mix Width:
The width of product mix is the number of product lines in the product mix. In case of
Caterpillar Inc. Product Mix Width consist of its five product lines such as- Equipment, Power
Systems, Attachment, Technology, and Financing & Insurance.
Product Mix Length:
The Length of Product Mix refers to the total number of items in the mix. In case of Caterpillar
Inc. Product Mix Length consist of its (37+4+45+2+2=90) total Ninety products.
Product Mix Depth:
The Depth of Product Mix refers to how many variants are offered of each product in the line.
In case of Caterpillar Inc., one item/product of Power System, Electric Power Generation has
seven variants. So the depth of Electric Power Generation is Seven. We can calculate the
average depth of Caterpillar Inc. by averaging the number of variants within each product in the
product line.
Product Mix Consistency:
The consistency of the product mix describes how closely related the various product lines are
in the end use, production requirements, distribution channels, or some other way. The various
product lines of Caterpillar Inc. are consistentin that they are mainly construction and mining
equipment and technology needed for the effective performance of those equipment and
financial products for the smooth purchase of its products. Its products lines are less

8. 3
consistentin the functions they perform for different customers (mining versus building bridge).
The various product lines of Caterpillar Inc. are consistent in case of production requirement
because raw materials, processes and man power needed for the production of its products are
quitesimilar. In case of distribution channels, Caterpillar’s various products lines are also
consistent because products are distributed to end-users in nearly 200 countries through their
worldwide network of 220 dealers.
Reason of diversification of Caterpillar Inc.:
Caterpillar Inc. was formed in 1925 in California after a merger between Holt Caterpillar
Company and C.L. Best Gas Tractor Company (Caterpillar Inc., 2015). From inception,
Caterpillar is striving towards creating value for customer and finding solution for customer
problems. In this process Caterpillar does not rely much on product development as an
intensive strategy for growth. The company mainly focuses on improving existing products. The
firm rarely introduces an entirely new product. Instead, existing Caterpillar products are
modified to provide new features and improve customer value (THOMPSON, 2015). At present,
Caterpillar serves customers in more than 180 countries around the globe with more than 300
products(caterpillar.com, 2015).Reason of such diversification of Caterpillar can be found by
analyzing Caterpillar´s vision, strategy, goal, norm, value, belief and corporate culture. The
reasons are described in the followings-
Heritage of innovation:
Caterpillar’s vision for innovation started in California when it was formed in 1925 – long before
Silicon Valley became the technology hub it is today. Its pioneering spirit is the driving force
that moves the employees in Caterpillar forward and motivates them in continuous innovation.
Through innovation theybring in new or different product, process or production methodology
to their work and find a way to commercialize it in a way in which it delivers value for the
customers. They consider innovation as race between life and death because of their learning
from Companies like Kodak, Blockbuster and Nokia who failed as they did not keep pace with
the progressive world(www.caterpillar.com, 2015)
To sustain and lead in this competitive Marketplace against competitors:
Caterpillar Inc. believes that to sustain and lead in this competitive Marketplace against
competitors, they need to anticipate the need of customer, the problem the customers are
facing, what their latent demands are, long before the competitors. For this reason they launch
product within short term interval.
Creating value for customers:
Caterpillar Inc. works to create value for the customer so that they can do their job effectively
and efficiently. They are determined to provide necessary help (i.e. Providing training to handle
their equipment, providing insurance and financial service etc.)to their customer. The following
message of the CEO Doug Oberhelman of Caterpillar Inc. describes, how they focus on creating

9. 4
value for customer (caterpillar.com, 2015).
Creating solution for customer’s problem:
At present Caterpillar Inc. can boast for having more than 300 products that they launched for
solving customers problem.
Meeting the demand of diversified market:
Caterpillar Inc. is careful about the difference/variation of customer need around the world.
They don’t do the same thing for each market. They launch product based on their customer
needs. What delights a customer in Panama is not the same thing that delights a customer in
Venezuela and certainly not in the U.S.” (caterpillar.com, 2015)
PRAN-RFLGROUP
PRAN stands for Program for Rural Advancement Nationally. RFL Stands for Rangpur Foundry
Limited (It is a water pump and plastic pipe industry).PRAN-RFL GROUP was born in 1980. In
1981 they were merged and started their group named PRAN-RFL Group. Keeping in view the
corporate mission of the group they have over the years diversified their activities. Today they
are the largest processors of fruits & vegetables in Bangladesh. They encourage contract
farmers and help them grow quality crops with increased yields and to obtain fair prices. The
Group comprises of 10 companies. The head offices are located at Dhaka with production
facilities around the country. Their management is modern adapted to our environment &
culture. Their largest asset is their competent team of hands-on-mangers & dedicated
employees (Imam, Ifti, & Sakif, 2014).
PRAN-RFLis continuously making critical decisions about their product range. Product decisions
will include whether to develop new products and how to manage existing products. The
following is short sketch about the different ways they manage the type and number of
products they sell and related terms.

10. 5
Product Mix
The Product mix is the total variety of products a firm sells. Some firms will sell just one
product, whilst others will sell a large number of different products. For example Pran-RFL has
different product mix like Pran foods, Plastics, Agriculture, Buildings Materials etc. Firms should
select their product mix carefully as they will need to generate a profit from each of the
products in the product mix.
Product Line
A product line is a number of products grouped together based on similar characteristics. The
characteristic used to split products, will depend on the firm and its product strategy. They
include product price, product quality, who the product is aimed at (target group), and product
specification/features. For example-Pran foods are divided into drinks, biscuits, Jam & Jelly,
snacks, Dairy Derivatives etc. Product lines help firms manage their products as product
strategy can be designed around product lines. This is useful if the firm has a large product mix
as there is less need to concentrate on individual product type strategy.
Product Line Length
The product line length shows the number of different products in a product line. A long
product line has lots of different products in it and a short product line has a small number of
different products. The product manager's job is to work out how many products to include in
the product line. For example, within product line of soft drinks Pran foods has Mango, PRAN
up, Orange, Energy Drinks, and Drinking Water.
If there are too many product types in a product line, they will begin to compete with each
other, increase costs unnecessarily and even confuse customers. If the product line is too short
it will limit customer choice and send customers to competitors with a greater selection of
products.
Product Line Depth
Some of the product types in a product line may be split again into groups; the product line
depth shows how many subgroups the product line contains. For example, under the line of
Juices and Drinks Pran foods have Mango, Apple, Pineapple, and Orange.
Product Mix Width
The product mix width is the number of product lines in the product mix. A wide product mix
increases the type of customers a firm can target.

11. 6
But a narrow product mix is easier to manage and allow the firm to specialize in particular
product lines and product types. However a small product mix reduces the type of customers a
firm can target as they can't cater for everyone's product "needs and wants".
Reasoning of diversificationof PRAN-RFL
PRAN-RFL works to generate employment and earn dignity and self-respect for competitors
through profitable enterprises.
Customers Perspective
PRAN-RFL as a top of mind awareness has grasped the every sector of customers´ need with the
continuous diversification of product both in terms of consumer as well as business goods. As
the customers of PRAN-RFL they perceive that PRAN-RFL has diversified its production and
distribution to serve their need best in every corner of the world. Some of the specific factors
that customers think as a diversification initiatives are technological impact, standard of living,
social media effect, increasing demand of consumers.
RetailersPerspective
What PRAN-RFL produces goes sell in the market that is the main reason of diversification as
their retailers perceive. Retailers themselves try to brand their own stores through the products
they offer for the consumers. For this they try to make product available according the their
local customers need. They more they can serve their customers need they more they can earn
margins by selling large in quantity. So, retailers patronize the company and distributors whose
products serves as an anchor of their stores. They can sell any product of PRAN-RFL that they
store in their shop.
Dealers and Distributors Perspective
Dealers as well as distributors see PRAN-RFL as a blooming global company in the business
world. They think that PRAN-RFL has the capacity to produce as well as distribute worldwide
which gets sync with many of the dealers and distributors mission of being worldwide
distributor as a successful partner of the company. They see PRAN-RFL working with the aim to
cover both FMCG and FMCD markets.

12. 7
Perceived Reasons of Diversification
PRAN FOODS - Ours is an economy of agriculture and PRAN´s target is to develop our
agriculture sector in fullest sense. They are trying to create more demand for agro product,
produced by our farmers with the target is to make their product available to every corner of
our country so that every customer get the right to consume.
RFL - RFL started its journey with Cast Iron (CI) products in 1980. The initial main objective was
to ensure pure drinking water and affordable irrigation instruments for improved rural life.
Today the company has its wide ranges of CI products like pumps, tube wells, bearings, gas
stoves etc. and has achieved the prestige as the largest cast iron foundry and light engineering
workshop in Bangladesh. With a vision to serve the common people of Bangladesh with quality
necessity products, RFL diversified its operation into PVC category in 1996 & in Plastic Sector in
2003. At present it is market leader in all these three sectors-Cast Iron, PVC & Plastic in the
country. Sizable amount is also exported to different countries.
Reckitt Benckiser (RB)
Reckitt Benckiser (RB) is the world's leading consumer health and hygiene company, with
brands sold in nearly 200 countries and operations in over 150 years of innovation for
consumers across the world. German and British heritage, it organizes the majority of its
products into three main categories-health’s, hygiene and home-with other brands belonging
to three further categories: food, pharmaceuticals and portfolio brands. The company's
strategy is to have a highly focused portfolio concentrating on its 19 most profitable brands,
which are responsible for 70% of net revenues.Their vision is a world where people are
healthier and live better.
Reckitt Benckiser’s purpose is to make a difference by giving people innovative solutions for
healthier lives and happier homes. This means they are expanding their capabilities and
investing in innovation to stay ahead of the game.They position around health, hygiene and
food which is the core of their passion to grow worldwide.
 Consumers’ health inspires them to innovate. They believe that feeling well is at the heart
of their rapidly growing consumer health business. They take making a difference to the
lives of consumers as expanding their research and innovation to stay ahead of the
business. They are in fact changing the play in consumers’ health.They have strong
commitment to producing top quality, trusted medicines and medical devices with a fast-

13. 8
paced, entrepreneurial and rigorous workplace. They are constantly evolving their global
portfolio with a purpose, supported by relevant medical facts and scientific based evidence.
 They consider hygiene as the foundation of healthy living. Actually, people are living longer
than ever before due to better health and hygiene. Their 2015 target, to achieve 72% of the
core net revenue from health and hygiene, was achieved two years early as they continue
to develop new and effective solutions to help improve standards of hygiene worldwide.
 They also see the home as the center of family life and so this is at the center of their vision
for healthier lives and happier homes.
 They can understand that consumers not only want practical solutions for keeping their
homes clean and fresh, but also those extra little things that make their homes of their
own.They do this not only through developing exciting new products but through helping
consumers to get the best of their products.
Innovationat RB as a drive for Diversification
RB is a true leader, in market terms and financially. Its strategy is simple: Power brands driven
by innovation, rolled out globally & heavily marketed. Innovation is the main drive behind their
brand and product extension decisions. RB is a genuinely global force and a truly multinational
company.
RB reinforces its brands with an exceptional rate of innovation. Their Innovation drives their
strategy. They believe that innovations must be great in performers, fast to the market and
cost-effective also. Their innovation pipeline is built around brand strategy. So innovative cost
savings improve margins and fuel growth. They put Consumers at the center of their
innovation. Innovation starts and ends with consumers – the small ways RB can make life
better. So RB builds consumers into product development, validating every idea with them.
They don’t focus on ideas, but ideas that sell because they meet consumer needs.This
philosophy creates they become powerful global brands that can adapt to local preferences.RB
has its own technology insights and merging their own insight with consumers’ insight that they
find by spending time with consumers their innovation comes. They also keep a close eye on
technological and societal trends to find consumers need.
RB considers their innovation as a team effort. Driving a global formula means reacting fast and
efficiently that requires teamwork.So innovation is integral to the business and RB creates
strategic and external alliances in their business.All of which together give consumers
worldwide reasons to buy RB products (www.rb.com, 2015).

14. 9
SQUARE Group
SQUARE Group, founded in 1958, has pioneered the development of the local business in fields
as diverse as Pharmaceuticals, Textile, Information Technology, Healthcare Products, Food
Products, and Hospital etc. With annual turnover above US $ 450 million and with a workforce
more than 22,000, square today is a true icon in Bangladesh business sector.
Product Mix of SQUARE Group:
A product mix is the set of all products and items a particular seller offers for sale. The product
mix of SQUARE Group consists of various product lines such as- Pharmaceuticals, Textile,
Information Technology, Healthcare Products, Food Products, and Hospital etc. A company’s
product mix has a certain width, length, depth and consistency. These terms are illustrated in
case of Caterpillar Inc. in the following description-
Product Mix Width:
The width of product mix is the number of product lines in the product mix. In case of SQUARE
Group, Product Mix Width consist of its fifteen product lines such as- Square Pharmaceuticals
Ltd. Square Toiletries Ltd. Square Textiles Ltd. Square Food & Beverage Ltd. Square Fashions
Ltd. Square Knit Fabrics Ltd. Square Agro Development and Processing Ltd. Square Securities
Management Ltd. Square InformatiX Ltd. Square Herbal and Nutraceuticals Ltd. Square Yarns
Ltd. Square Holdings Ltd. Square Air Limited, Square Formulations Limited, Square Texcom
Limited,
Product Mix Length:
The Length of Product Mix refers to the total number of items in the mix. In case of SQUARE
Group Product Mix Length consist of its (4+18+4+3+5+1+2+17+3+2+8+1+3+11=82) total Eighty
two products.
Product Mix Depth:
The Depth of Product Mix refers to how many variants are offered of each product in the line.
In case of SQUARE Group, one item/product of Food and Beverage, Ruchi has twenty five
variants. So the depth of Ruchi is twenty five. We can calculate the average depth of SQUARE
Group. by averaging the number of variants within each product in the product line.
Product Mix Consistency:
The consistency of the product mix describes how closely related the various product lines are
in the end use, production requirements, distribution channels, or some other way. The various
product lines of Square groups are somehow consistentin that they are mainly pharmaceutical
industry, square hospital ltd., SQUARE Toiletries Ltd, and FMCG which is consistent among each

15. 10
other and square textile ltd., square knit fabrics ltd., square yarns ltd., square fashions are
highly consistentbecause of their vertical integration among them (But these are
inconsistentwith above mentioned industry). The various product lines of square group are
consistent in case of production requirement, for promotional requirements, for substitute
products, because raw materials, processes and man power needed for the production of its
products are quitesimilar. In case of distribution channels, Square groups’ various products lines
are less consistent because products are distributed to end-users by using different distribution
channel.
Reasons for Diversification:
As a large company of Bangladesh Square needed various types of promotional programs but it
required huge amount of many as well many effort. To save this huge amount of many needed
for advertisement program square has created its own advertisement firm “Mediacom”
1. To run the ad firm square needed qualified media stars and to broadcast their promotional
programs they needed a controllable channel so they have created their own TV channel
“Masranga”
2. To fulfill the vacuum of quality data connectivity among their own offices and also profit
motives they have created “square informatix limited”
3. To utilize their capital and as a company of world second largest garments product exporter
country square has invested in Garments sector also
4. To make available the world class health facilities for those patients who go to abroad for
their medical treatment square group has established “square hospital limited” in Dhaka
5. In order to facilitate the movement safely and comfortably for top executives, as well as Air
ambulance/ EMS service for Square Hospital, Square Air has purchased a brand new world
renowned Bell 407 helicopter and established their air business also.
6. To facilitate the farmers of the country square invested in the consumer food sector. By this
line of their business they preserve the collected hygienic food from farmers and package
this product for long-term use.
Those are the specific reasons for their diversification. But square want to fulfill the demand of
quality focused customers as well as price focused customers so they have various product line,
weigh and depth also.

16. 11
The overall assessment ofPRAN RFLagainst Caterpillar Inc.,Reckitt
Benckiser and Square Ltd.
Our conclusion about the overall assessment of PRAN RFL against Caterpillar Inc. is given
in the following as we could not find adequate data to compare PRAN RFL against Reckitt
Benckiser and Square Ltd.
Assessment onmarketing mix activities:
Caterpillar Inc. falls in the category of industrial product and marketing of the industrial
product. But PRAN falls in the category of consumer product and RFL falls in the category of
both consumer product and industrial product.
Caterpillar products are relatively technical in nature, exact from often variable, accompanying
services are very important. But products of PRAN are not technical in nature and there is no
room for service. To some extent, some products of RFL is technical in nature and after sales
service is important.
Caterpillar distribution system is dealer based and short, directs channel to PRAN-RFL market.
Distribution system is broad, here involves distributor, wholesaler and retailer.
As Caterpillar products are complex in nature so relation with customers is relatively enduring
and complex. But in case PRAN-RFL relation with customers is not so complex and enduring as
much as Caterpillar.
Caterpillar demand depends on nature and macro-environment situation because the products
of caterpillar are related to Construction Industries, Resource Industries and Energy &
Transportation. But demand of PRAN-RFL does not so much depend on macro environment
activities. Because the product of caterpillar is FMCG and FMCD
Most of the ads of Caterpillar Inc. has been put emphasis on brand building and improving
corporate image but ads of PRAN-RFL give importance on selling activities as well as brand
building activities.
Caterpillar emphasis on personal selling through dealer’s network and PRAN-RFL uses pull
strategy. It is directing the promotional mix at ultimate consumers to encourage them to ask
the retailer for the product.
Pricing of caterpillar is complex. It uses two system of pricing like Competitive bidding for
unique items and list prices for standard item. PRAN-RFL uses list prices for their entire
item(Thakral, 2015).

17. 12
External Environment Assessment (Porter’s Five Forces Competitive Analysis):
A. Threat of new entrants:The threatof new entrantscan be saidto relatively low, because of the
very high capital required to establish a new firm that produces heavy equipment. Small
businesses could enter the industry and provide heavy machinery through small-scale
production. However, these small new entrants have minimal effect on firms like Caterpillar.
Threats of new competitors are high in the business of PRAN-RFL Group. Because any type of
companies can enter in the sector as the government is friendly in giving the trade
license(Thakral, 2015).
B. Threat of product substitutes: For some product category there can be a threat of
substitute product. But for most of the product there is no such threat of product
substitute. The threat of substitution is low. For instance, crude tools can be used as
substitutes to heavy equipment from Caterpillar. However, the current trend is toward
mechanization and automation. Thus, customers are unlikely to shift away from using heavy
equipment like those from Caterpillar. In the business of PRAN-RFL Group threat of the
substitutes is high. As there if Akij group, BD foods etc. are producing the same types of
products. So, P is making something unfair to the consumers, the consumers may switch
to other companies(Thakral, 2015).
C. Power of buyers:Caterpillar’s buyers include groups and organizations. For example,
construction firms and government agencies purchase heavy trucks and machines from firms
like Caterpillar. The bargaining power of buyers is low because of limited options. Only a few
major companies offer products with high quality and durability compared to those of
Caterpillar. But the buying power of the consumers of PRAN-RFL Group is very high. As
there are many consumers in the market so the consumers can bargain the prices of the
products(Thakral, 2015).
D. Power of suppliers: Caterpillar’s suppliers are companies that provide raw materials and
componentsfor its products. The company uses various suppliers for its production because it
has differentmanufacturinglocationsaroundthe world.Nosingle supplier can exert significant
pressure on Caterpillar’s business. Thus, the bargaining power of suppliers is low.Bargaining
power of the suppliers of PRAN-RFLGroup is low. As Bangladesh is agricultural country, so
there are a lot of sellers of the raw materials of foods. So, the bargaining power of the
seller is very low(Thakral, 2015).
E. Intensity of rivalry among competitors:Caterpillarfaceshighcompetition in the industry. In
heavyequipmentmanufacturing,there are significantcompetitorsfromcountrieslike Japanand
the Netherlands. These competitors are also major players in the global market. They have
engineeringexpertisecomparable tothatof Caterpillar.Infinancial services,competitioniseven
higher. There are many small, medium and large financial service companies that directly
compete with firms like Caterpillar. Current rivalry is very much high of the PRAN-RFL
Group. As there are some huge groups like Akij Group and others, so it is seen that the
rivalry amongst the current companies are very high.

18. 13
CATERPILLAR PRAN-RFL Group
Figure: Assessment of five forces of competition.
SWOT analysis (Thakral, 2015):
PRAN-RFL Group Caterpillar Inc.
Strength Weaknesses
Versus
Strength Weaknesses
Strong distribution
channel
Human resource
Wide drinks category
They have their own
factory, dairy and
manufacture
Management
efficiency
Training and
development of
company
Short life cycle of
product
Positioningasa local
manufacturing
company
Contract resource
Global Market leader
Diversifiedgeographical
spread
strong brand image
large-scale assets
strong global
distribution network
improving financial
condition
low rate of
innovation
limited
connections in
emerging
markets
Opportunities Threats Opportunities Threats
Export Tie up with
multinationals
Strong brand image
Competitor’s weak
distribution channel
Aggressive
competitors
Changing consumer
behavior
Availability of
Opportunities in China
and India Rise in raw
material prices
imitation by Chinese
manufacturers
The threats to
Caterpillar’s
business are
continuous
rising in the
Threat of
new entrants
(Low)
Threat of
product
substitutes
(low/moder
ate)
Power of
buyers
(Low)
Power of
suppliers
(low)
Rivalry
among
competitors
(high)
Threat ofnew
entrants
(High)
Threat of
product
substitutes
(lHigh)
Power of
buyers (high)
Power of
suppliers
(low)
Rivalry among
competitors
(high)

19. 14
Franchise businessall
over the world
foreign product
Ad hock
advertisements of
competitor
Using old
technology
aggressive competition
by Japanese robotics
Increasing construction
activitiesdue togrowing
population
prices for key
raw materials
of the
company.
Brand Development:
For PRAN-RFL:
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 extension is Extending 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.
For Caterpillar Inc.:
Line extension: Caterpillar expanded its heavy machinery equipment line.
Brand extension: Introduce new products: shoes, bags, mobile phones and clothes with the
same brand name.
Multi Brand:
Perkins: is one of the world’s leading suppliers of gas and diesel engines.
Hypac: Provides mining equipment spares and components for electric drive off-highway
trucks.
New Brands: Caterpillar is now introducing new smart phones and they are also introducing
new brand name with application software.
Recommendations:
For PRAN-RFL:
As being a very successful organization and there flawless management system has enabled
Pran group to enjoy economies of scale through their profit maximization but as being a part of
the culture of Bangladesh through their share of quality products they should also emphasize

20. 15
more on products that are within in the purchasing power of the general people of Bangladesh
and ensure that products should be of quality that equal in aspects to compete with the
international standards.
For Caterpillar:
In the next five years of operations, Caterpillar can improve performance through
differentiation. The company must increase its investment in research and development to
create unique products. At present, the heavy equipment, engines and financial services of
Caterpillar are very similar to the ones available from competitors. To increase competitiveness,
the firm must invest more in developing novel products.
Caterpillar can also improve its financial performance by growing its distribution network in the
next five years of operation. The firm must focus on developing markets because these markets
have high economic growth rates. For example, the company can increase the number of
Caterpillar distributors in China.

21. 16
Conclusion
Product selection is as important as the product you are selling. Firms need to strike a balance
between giving customers’ choice and trying to cater for everybody. Dividing products into
product lines and the product line into further groups, helps firms to develop product
strategies. It can also help them identify which product ranges sell well and which do not if they
choose to monitor each product line.

22. 17
Works Cited
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https://en.wikipedia.org/wiki/Caterpillar_Inc.
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http://www.caterpillar.com/en/company/corp-overview/global-footprint.html
iii. caterpillar.com.(2015,Jun 12). www.caterpillar.com.RetrievedNov15,2015, from INNOVATE
OR DIE: http://www.caterpillar.com/en/news/caterpillarNews/innovation/innovate-or-die-vice-
president-greg-folley-unfiltered-on-innovation.html
iv. caterpillar.com.(2015,July24). www.caterpillar.com.RetrievedNov15,2015, from
http://www.caterpillar.com/en/news/caterpillarNews/innovation/innovation-isnt-peanut-
butter-spread-three-thoughts-on-innovation-in-emerging-markets.html
v. Imam,Ifti,& Sakif.(2014). An Assessmenton PRAN-RFLGroup. Dhaka:BrACBusinessSchool.
vi. Thakral,R. (2015). ProjectReport:B2B marketing - Caterpiller. slideshare.net.
vii. THOMPSON,A. (2015, Aug15). panmore.com.RetrievedNov13,2015, from
http://panmore.com/caterpillar-inc-strategic-analysis-vision-mission-swot
viii. www.caterpillar.com.(2015).
http://www.caterpillar.com/en/news/caterpillarNews/innovation/innovate-or-die-vice-
president-greg-folley-unfiltered-on-innovation.html.RetrievedNov11,2015, from
http://www.caterpillar.com/en/news/caterpillarNews/innovation/innovate-or-die-vice-
president-greg-folley-unfiltered-on-innovation.html
ix. www.rb.com.(2015). www.rb.com.RetrievedNov13,2015, from http://www.rb.com/