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April 16, 2013

Term-paper on Marketing Strategy of PRAN, A fast food chain




Introduction

‘PRAN’ started its operation in 1981 as a processors fruit and vegetable in Bangladesh. Over the years, the company has not only grown in stature but also contributed significantly to the overall sociology-economic development of the country. “PRAN” is currently one of the most admired food & beverages brand among the millions of people of Bangladesh and other 82 countries of the world where PRAN Products are regularly being exported.
All the PRAN products are produced as per international standards maintaining highest level of quality at every stages of its production process.
PRAN is currently producing more than 200 food products under 10 different categories i.e. Juices, Drinks, Mineral Water, Bakery, Carbonated beverages, Snacks, Culinary, Confectionery, Biscuits & Dairy. The company has adopted ISO 9001 as a guiding principle of its management system. The company is complaint to HACCP & certified with HALAL which ensures only the best quality products are reaches to the consumers table across the Globe.
 

Company Overview
PRAN  Group becomes a popular company in South Asian region also in Middle East. PRAN Group has grown up in stature and became the largest fruit and vegetable processor in Bangladesh from 1980. “PRAN” is currently the most well-known household name among the millions of people in 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.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.

Current Marketing Situation
Fast food business is very profitable in Bangladesh. Therefore, PRAN cannot appeal to all buyers in the market place or at least to all buyers in the same way. Buyers are too numerous too widely scattered and too varied in the need and buying practices. Therefore, generally want to serve different segments of the market. We must identify the parts of the market that it can serve best and most profitable.  It needs to design strategies to build the right relations with customers. Firstly, we identify markets segments. We segment the market for the buyers need. Segmentation is very important. We also segment our market occasions, user status, and usage rate.
We are focusing on buyers who have greater interest in the values they crate best. Secondly, we will identify the target market segment. Market segmentation revels us market segments opportunities. Beyond deciding which segments of the markets it will target, we must decide what position is the way the mango is defined by customers on importance attributes, the place the product occupies in customers mind relative to competing products. We selling the
competitive positioning for the the fast food product which are creating a detail marketing mix.

 Steps in Marketing Segmentation, Targeting, Positioning






Market Description
PRAN’s market consists of consumers who need to conveniently store, communicate and exchange information to go on. In evaluating target market segments, company looks at three factors: segment size, growth, segment structure attractiveness and our company’s objects
and issues. Our company first collects and analyze data on current sales, growth rates and expected profitability for various segments.
Our main goal to catch up consumer’s value and maintain long-term relationship with customers. If our market growth increase, we can easily beat our competition and our brand image is achieve popularity day by day. Company also identifies major structural factors that affect long run segments attractiveness. Our main product is fast food items. In market, buyers with strong bargaining power relative to sellers will; try force price down, demand more services and set competitors against one another-all at the expenses of sellers’ profitability. Another important issues focus on powerful suppliers who can control prices or reduce the quality or quantity of ordered goods and service. We take short marketing channel because our product which is perishable.

Objectives
  1. Expand our business in new market
  2. Managing profitable customer relationship
  3. Understanding the marketplace
  4. Managing marketing information
  5. Consumer market and consumer buyer behavior
  6. Segmentation, targeting and positioning the product
  7. Product, service and branding strategies 
  8. New product development
  9. Pricing considerations and approaches
  10. Pricing strategies
  11. Marketing channel and supply chain
  12. Sales promotion
  13. Creating competitive advantage
  14. Export our product in foreign country
  15. Branding, labeling, Grading decision



Product Review
Product is the key element in the marketing offering .Our marketing mix planning begins with formulating an offering that brings value to the target market. This offering becomes the basis upon which the company builds profitable relationship with customer product Fast food item products become more and more commoditized, PRAN is moving to a new level in creating value to their consumers




We discuss here fast food products attributes
1.      Quality
2.      Features
3.      Style and design
Quality:
Quality is the important part of the product attributes. We always try to maintain better quality than competitors do. We never use chemical into the mango, and our product always
offer freshness. Here product quality means performance quality-freedom from defects and consistency in delivering a target level of performance. Our company has tuned consumer-driven quality into a potential strategies weapon. Our company have creates consumer satisfaction and value by consistently and profitably meeting customers need and preferences for quality.
Features:
Product can be offered with varying features. Our company can create high quality product by adding features. Features are competition tool for differentiating the company’s product from competitor’s product.








Design and Style:
Another away to add consumer’s value is through distinctive product style and design. we can improve our packaging design for capturing customers value


Three level of Mango product

Product line: Beyond decision about fast food products and services, product strategy also calls for build a product line .Our products that are aloes related because they function in a similar manner, are sold in same customer groups, are marketed through the same types of outlets or fall within give price ranges. We have different kind of mango in product line.

Competitor Review:
Increase enter of established companies have pressured in participant to continually add features and cut prices because competitors make a major role into a marketplace.



SWOT Analysis
The planning process is to assess our company current position in the marketplace. This phase also involves an examination of the factors that may help hinder the company in the future .A frequently used tool in this phase of strategic planning is SWOT analysis. To evaluate our firm’s strange and weakness, the planners may examine each functional area such as finance, marketing. Entrepreneur may focuses on the individual skills, experience they bring to a new business.
Strengths
Economic of Scale: PRAN is a established company with huge amount of capital. So we can afford our expenses and protect critical circumstances. We invest huge amount of money that also support our marketing plan. We always try to reduce our product cost that also helpful for company   

High Quality With low Price: The major strength of our company is high quality product and maintain low price. Our products differ from other company because of high quality and low price, we always try to add some value with the product.    
Distribution channels: We select retailers and dealer to carry our product to the shopes.We also inquiry the previous performance of retailer and dealers. Our company select short distribution process as a result, our maintain cost reduce and profit can easily increase. Company use their own transport.
Weakness
Price: Many competitors try to reduce the price of their product.
Target market: Because our companies product and service are international standard in terms if both quality and price. It is difficult for our company to go for mass marketing
Preservation: it is much more difficult for our company to preserve the mango products.Because food is so perishable product and also the problem of temperature
Heavy administration expenses: Pran maintains administration cost increase, In addition, other expenses such as transport. Packaging, labeling, branding, maintain, promotional, agent channel-cost.

Opportunities
New technology: new theology is the biggest advantage for our company. Therefore, we can eliminate our production cost as much as possible.
New Market: The main peruse to enter the new geographical area is to be generate profit as well as increase our brand image
Entering the Mass Market: As the company already has the local presence in the country with strong brand value.



Threats
Competitors: When we lunch our product in a new market, there are available competitors. It is important for us to differentiate our product from other competitors.
Changing Buyers taste: Consumer tastes are always changeable because they always find different features from the product.  The demand of the buyers, change day by day.



Strength                                                            Weakness
 


          
          Economic of scale                                            Price


High quality with low price                              Target market



Distribution channels                                        Preservation



Partner protection                                             Heavy administration expenses





SWOT ANALYSIS
Marketing Strategies
Our marketing strategies are based on target consumers. Our primary consumers target is middle to upper income professional’s. Our secondary consumer target is who consume fast food product not frequently.
Overall Strategy

Main Mission:                                   Export our mango in European countries




Target market:                                   URBAN market



Product:                                            Mango



Marketing strategies:                         Foreign investment  




New market
Market promotion
Branding


We segment our products in various ways such as geographic, behavioral variables.
Geographical Segmentation:
We divide our market into different geographic units where there are sufficient demand for and also think about the competition of those market.
Behavioral Segmentation:
We divide behavioral segmentation among occasional, benefit sought, usage rate, user status and finally loyalty status.
Requirement of Effective Segment
There are many ways to segment s mango market, but not all segments are effective. To be useful, market segment must be:
·         Measurable
·         Accessible
·         Substantial
·          Differentiable
·         Actionable


Evaluate target market segments
In evaluating different market segments, our company must look at three factors. company must first collect and analyze data on current segment sales, growth rates and expected profitability .Our company also needs to examine major structural factors that affect long run segments attractiveness. Finally identify the company’s objectives and resources. The company should enter only segments in which it can offer superior value and gain advantage over competitor.





Choosing a Market-Coverage Strategy


Competitors: we have thought about the competitions because in Cardiff there is lot of competitors
Company resources: our company resources are sufficient to exceed the consumer’s satisfactions
Product variability: we offer different kinds of mango to meet the consumer satisfactionStage is life: product life stage is vital for us because we want to know about the stage of the mango product.
Product Strategy
Product strategy is an easy way to build better image of product. If we want to earn profit product strategy is very vital decision for our marketing plan. Here lots of important issues focus on product strategy, such as quality, features, style and design
Market variability: market variability also affects our marketing plan.


Marketing Mix and Marketing Strategy
They study and analyze potential target markets and then choose among them. They create a marketing mix to satisfy the chosen market. A written marketing plan often becomes a key component of a firm’s overall business plan as it outlines its marketing strategy, includes information about the target market, sales, and revenue goals, and the timing for implementing the elements of the marketing mix.









Marketing Mix
Marketing mix consist of several things

Product                         Price                      Place (distribution)        Promotion









 


Package design              Allowance             Location                       Advertisement






 


Brand name                   Discount                                                                  Media








 


Trade marks                                                                                  Public Relation (PR)






 


Warranties                                                                                       Sales Promotion








 


Product image                                                                              Direct Sealing







Pricing Strategy
Price is the component part of the marketing strategies. So we decide different price for different mango. Because there are lot of competitors in market place so we decide different price. We take some activities within pricing such as discount and allowance.

Promotional activities
Promotional activities are mandatory for all company because without promotional activities any firm cannot generate their profit. Sell our mango products take promotional activities such as :
·         Advertising
·         Sales promotion
·         Public relation
·         Personal selling  


Our main goal how can we differentiate our product from competitions. Therefore, we take some promotional activities such as, we say, “If u will buy 5 kg mango, I will give u 1 kg free”.
Similarly, we offer the market “If u will buy our product regularly, we will give u some discount on purchase”
We select certain media to expose our mango product. For example we give an advertisement to sell our product in Dhaka, Chittagong & Barisal city.
We maintain good public relation for generate our profit. Sometimes we arrange seminar for product awareness. Encourage buying our mango product.



Product Forecasts:
This types of product continuing in the market on the basis of their features, reasonable price, standard maintain and also quality. We are also prepare and determine that our products will be quality full and reasonable price that’s why we are optimist about our product that will be continue a certain time.
Conclusion
Agricultural Marketing Co. Ltd (PRAN Group) is the largest processors of fruits & vegetables in Bangladesh. PRAN stands for Programme for Rural Advancement Nationally. They are trying to increase their business and their own brand. The new idea for setting up a fast-food chain will also help to increase the profit margin and achieve the highest market share then competitors. PRAN’s largest asset is their competent team of hands-on-managers & dedicated employees.

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