The Marketing Plan Of PRAN Drinks

PRAN

The Marketing Plan Of PRAN Drinks

Executive Summery:

Pran group of companies is one of the leading business institute of Bangladesh. We have prepared report is based on “Business Plan on “Pran Juice Company”. To prepare this report we have followed marketing research methodology for people who drinks pran. To see the market need and wants we prepared a questionnaire made by pran juice Company. We have done the marketing plan of Pran Drinks on the basis of pran industrial analysis from different sources like internet surfing. In this report, we described the current marketing analysis for drinks, financial projection and actions that has been taken by pran and we have also done the SWOT analysis for pran dirnks on this report.

Current Market Situation

PRAN Group was born in 1980. Keeping in view the corporate mission of the group they have over the years diversified their activities in several areas. PRAN’s biggest asset is their competent team of hands-on managers and dedicated employees. PRAN is Bangladesh’s largest grower and processor of fruits and vegetables, which are produced in their modern and hygienic factories to highest quality and International standards. Pran founded 28 years ago by many entrepreneurs with experience in the product market of Bangladesh. Different types of products increasingly popular today, forecasts suggest that annual sales of such products will grow at more than 49 percent for the next 3 years. Because our population is increasing day by day and products needed is also increasing. To gain market share in this environment, pran must carefully target specific segments with features that delivers benefits value by each customer group.

According to the information from different sources “Pran Drinks” is now the market leader in the juice sector of soft drinks market. After Pran, frutika, fruto are in the position. Most market shares are now holding by AMCL (Pran), next frutika and then fruto.

Product Review

Among many of their products PRAN’s main product is their fruit juice and fruit drinks, which is very popular among the existing market. The product line is:

Fruit juice in glass bottle (returnable):

It is hygienically produced by state-of-the-art machinery. Available in mango flavor, made from fresh local ripe mangoes.

Pran juice in glass bottle

Fruit juice in glass bottle (non-returnable):

This category of juice is found in non-returnable glass bottle in flavors of mango, guava and orange.

Pran juice in glass bottle (non-retunable)

Fruit juice in aseptic pack:

Available flavors in this category are: mango, lemon, orange, pineapple, guava and mango-pine.

Fruit juice in aseptic pack:

Available flavors in this category are: mango, lemon, orange, pineapple, guava and mango-pine.

Fruite juice in aseptic pack

Fruit juice in can:

The fruit juices in cans are hygienically produced by state-of-the-art machine from flavors of mango, orange and guava.

Fruite juice in can

Review of competitors

Currently there are so many juice companies in our country. Among them pran is the leader of juice sector in Bangladesh.

Except pran there are - 

• Lemu
• Mojo
• RC cola
• Pepsi
• URO Cola
• Virgin
• Fruti
• Coca cola
• 7up
• Tiger
• Shezan Juice
• Rasna

Review of distribution

 Pran primarily use existing distributors for distributing their product Pran Juice then; they make some new channels and assign some distributors to promote their product to all over the country. So pran deal with this chain:

Distribution of Pran

Distribution Channel Company using mobile shop in the shopping malls, offices and crowded areas so that people can purchase the product easily when they like to consume. We will make our consumer by Value Delivery Network.

SWOT Analysis

Strengths:

1)      Government support: Being the biggest local force in the industry AMCL always had government by its side. Government has been supporting PRAN in many ways like subsidies, export subsidies, tariffs on foreign competitors etc.

2)      First mover’s advantage: PRAN entered the market when the product was still very new to the consumers and there was little or no presence of any other local companies with such investment. Therefore PRAN had the first mover’s advantage which they are still enjoying till now.

3)      Internal strength: AMCL has a very powerful management team to guide a strong gigantic workforce. Despite its huge size PRAN has been able to maintain labor productivity and increasing sales. Its labor productivity is twice as much as any other local company in the market (Not foreign companies).

4)      Market share: PRAN AMCL has a great competitive advantage over the other competitors. As mentioned earlier it is the largest fruit and vegetable processing industry in Bangladesh and holds the biggest share in markets in Bangladesh among the local companies. PRAN has the largest sales in fruit drinks after Coca-Cola and PepsiCo.

5)      Large Company: We all know that pran is a very large Company of Bangladesh.

6)      Experience: Pran is a very old company running since a very earlier time. So Pran is a very highly Experienced Company.

7)      Greater Sources of finance: Pran has a greater source of finance.

8)      Greater Control over sources of raw materials: Pran has a greater control over sources of raw materials like mango, orange, guava on our green Bangladesh.

9)      Risk-pooling: Pran is a risk pooling company that is surviving with a huge number of competitors like- sezan, pepsi, frootika etc.

10)  Huge Distribution network: Pran has a huge distribution network all over the country. We can see the products of Pran in very rural areas of our country also.

Weaknesses:

1. External threats: Too much competition from international organizations, for example Coca-Cola, Pepsi Co, RC-Cola, Virgin Cola, Rasna (India), Shezan (Pakistan) etc.
2. Internal weaknesses: Large size of the business and workforce makes it difficult to manage perfectly. As a result it often causes internal conflict.
3. Disproportionate promotions strategy.
4. Control.
5. Lack of first-mover’s advantage.
6. Distance and transportation cost.

Opportunities:

1. Existing competitor of the current market is not that much strong which the pran company has.
2. Pran can be export to other countries.
3. Existing distribution channel is being used.
4. High growth rate in this industry.
5. Huge demand
6. Natural resources
7. Cheap labor 
8. Government incentives

Threats:

1. Competitor can produce the same product.
2. Downward pressure on pricing.
3. Political instability, economy etc.
4. New innovation from other competitors could be a threat.

Objectives:

Marketing Objectives:

•Maintain positive steady growth each month.

•Increase market penetration every quarter. 

•Generate increased brand awareness quantified by reactions/feedback of customers at the trade shows.

Financial Objectives:

 •Decrease customer acquisition costs by 1% a quarter. 

•Continue to decrease variable costs through efficiencies gained from experience. 

•Increase profit margins by 0.5% per quarter

Marketing Strategy

Positioning:

Pran always try to position their product through image differentiation, because related marketing, and product differentiation. Pran will use logo and short advertisement so that people can consistently see the advertisement so the product will occupy a clear, distinctive, and desirable place in the mind of the consumer relative to competitors’ product. Pran will use USP (Unique Selling Proposition) for their product. To do brand differences that make a better differentiation or that has the potential to create company costs as well as customer benefits. A difference is worth establishing to the extent that it satisfies the following criteria.

Ø Important

Ø Distinctive

Ø Superior

Ø Communicable

Ø Affordable and Profitable

Target market:

 Our main target market people are the young age people who like to drink juice very much. Mostly the school going students and the children. Beside that we also focus the young generation people. Although our main target market is young people but we also prefer the people of adult and old ages people. 

Marketing Mix

Our marketing mixes for the product Pran are:

Product Marketing:

For launching a product in the market, there is some procedure that should be followed by every marketer to move in the long run. Our product will enable our customers to have a different experience to try our juice. They will be able to differentiate our product in quality which is unique in the soft drinks market. They will not be able to feel the same way for the other soft drinks in the market.

Pricing Strategies:

 We shall charge based on “Overhead Expenses” and “Cost Plus”. Overhead Expenses include rent, gas and electricity, business telephone calls, packing and shipping supplies, delivery and freight charges, cleaning, insurance, office supplies, postage, payroll taxes, repairs, and maintenance. The accuracy of our costing will depend on estimating logical amounts for all categories of expenses. We have to list all overhead expense items and total they divide the total overhead figure by the number of items per month (or time period we used above). The answer is our overhead per item:

 Overhead + Materials + Labor = Total Cost/Item

From the market research, we received the following-

 Company Name       Price         

 Price Fruti(250ml)          15

 Mojo (250ml)                15

 Pran(250 ml)                 15

Table: Price of different brands:

 We want to charge 250 ml Pran soft drinks at the selling price of Tk.14. On the other hand, the prices for Pran soft drinks are to be charged for 500 ml Tk.32, for 1000 ml Tk. 60. 

Place or Distribution: 

We will primarily use our existing distributors for distributing our new product Pran Juice then; we will make some new channels and assign some distributors to promote our product to all over the country. We are using mobile shop in the shopping malls, offices and crowded areas so that people can purchase the product easily when they like to consume. We will make our consumer by Value Delivery Network. Advertising and Promotion: The most successful advertising will be through BTV, NTV, Channel I, ATN Bangla and RTV which are the most popular television channels in the country. We will also use some bill-boards and leaflets and we will hold a sport event to promote the product. We will also use our experience so that we can create attention to the customers. Target market Our main target market people are the young ages people who like to drink juice very much. Mostly the school going students and the children. Beside that we also focus the young generation people. Although our main target market is young people but we also prefer the people of adult and old ages people.

Advertising and Promotion: 

The most successful advertising will be through BTV, NTV, Channel I, ATN Bangla and RTV which are the most popular television channels in the country. We will also use some bill-boards and leaflets and we will hold a sport event to promote the product. We will also use our experience so that we can create attention to the customers. 

Forecast and Financial Analysis

It just a hypothetical forecasting and financial analysis-

The brands of “Pran Juice” will be introduced in September. We make an action program for the next four months. And we believe that, if our four month action programs will run well, then we will achieve our goals easily.

June:

In June we will arrange meeting with our suppliers, dealers. And talk about our new product’s quality, product development etc. Our product is low involvement and buyers show habitual buying behavior. Then we will start production new Pran Juice.

July:

After meeting with the dealers we will provide sample Pran Juice to our customers for getting publicity. On the other hand we will give advertise of our new product in the Television, Radio, Bill Board, Banners, and in the Poster. Then we will launch our product in to the market. In the primary stage we will produce 250ml and 500ml can.

August:

After doing our successful operations of two month, at the third month we give extra benefits to the dealers and sellers to improve our sales. We will give small toys; arrange game. Observing the situations, at this stage we will produce 250ml can, and 500ml can for the consumers. In this month we will start to produce 1000ml can. And this month our product will be available in almost every shop of the country.

September:

In our last month of action program, if situation will favorable then we go for Divisional dealers to distribute to the whole country. Observing and analyzing we take necessary actions to develop product sales and increase our profit. In this way we will continue our production and give a particular image to the mind of every customer.

Budget:

This section will offer a financial overview four company as it relates to our marketing activities. We have shown break-even information.

Sales Forecast:

The sales forecast is broken down into the three main revenue streams; direct    sales, Web sales, consignment sales. The sale forecast for the upcoming year is based on 30% growth rate. Growth rate for year 2006 to 2010 are based on percentage increases as follows:

• Direct sales 20% growth rate per year
• Web sales 50% growth rate per year. 
• Consignment sales 20% growth rate year.

Break even point

Profit/loss:

January 31,2011, AMCL(PRAN) As per un-audited half yearly accounts as on 31.12.10 (July’10 to Dec’10), the company has reported net profit after tax of Tk. 19.44 million with EPS of Tk. 24.29 as against Tk. 17.05 million and Tk. 21.31 respectively for the same period of the previous year. 

Control

Pran’s control depends on the customer satisfaction. If customer demand different things with which they feel comfortable, then we simply change our controlling techniques.

Conclusion

We all know that, today’s fast moving world respect the new, innovative ideas. To keep the same pace with this situation our company had decided to launch a Juice and it has a bright future in its market. As the product is innovative, the consumers are going product will be a strong product mix for our company. And once our Juice will reach to the hand of our targeted customers, we will be able to capture the most market shares.