ID: 1210142 1210349 1230529 1210081
A REPORT ON
Assessment of Demand Response and Advanced Metering Of PRAN-RFL GROUP
GROUP: B
Assessment of Demand Demand Response Response and Advanced Metering Of PRAN-RFL GROUP
Submitted to Mr. Masud Rahman
Managing Director
Submitted by Md. Ismail Hossain
Sales Manager
Date of Submission 23 July 2013
PRAN-RFL Center, 105, Progoti Sarani, Middle Badda, Dhaka1212, Bangladesh Phone: +88 0288214, 02882154; Email:
[email protected]
Acknowledgement
I express all my gratitude and praises to the God, who has given me energy and capability to prepare this report.
I sincerely feel it, a proud privilege to express heartfelt gratitude and profound indebtedness to my Managing Director for his scholarly, supervision, instruction, valuable suggestion, encouragement, inspiration, untiring help, unprecedented patience, sympathy during the whole period of assignment works and critical review of this report.
I am also grateful to the officers of PRAN RFL Group for providing necessary data about investment and other secondary source of information of PRAN-RFL Group.
Letter of Transmittal
July 23 2013
Mr. Masud Rahman
Managing Director Pran-RFL Group Dhaka
Subject: Solicitation for acceptance of Business Report
Sir, I am pleased to submit my Business Report after successful completion of three months survey in our Group. I express my gratitude to you for giving me chance to learn about the downfall demand of PRAN Juice Industries. In spite of various shortcomings, I have devoted my best effort to cover all the relevant areas of Sales and Marketing Department of the organization. I hope that you will appreciate my endeavor and satisfy this report up to your expectation. It is indeed that without your advice and co-operation it would not be possible to submit this report. I have tried my best effort to make this report in comprehensive and informative manner. All of my works and information presented in this report is done with utmost sincerely and honestly. I shall be gratified to answer any sort of queries you think necessary regarding this report, assuring of my presence if and when needed.
Sincerely Yours,
Mr. Ismail Hossain Sales Manager Pran-RFL Group (Beverage section) Dhaka.
Contents TOPIC Acknowledgement List of Illustration Executive Summery Introduction Analysis Suggestions Conclusion Recommendation
PAGE#
List of Illustration Chapter
Content
Page No.
1
Introduction
1.1 Origin of the Study 1.2 Objectives of the Study 1.3 Methodology 1.4 Time schedule of the study 1.5 Literature review 2
Analysis
4.1 Current market analysis 4.2 Product life cycle 4.3 Market size 3
Suggestion
5.1 Situation Analysis 5.2 Swot Analysis 5.3 Marketing Strategy 5.4 Forecast and Financial analysis 5.4 Implementation & Control 4
Conclusion Recommendation Bibliography
Executive Summery
Introduction: 1.1 Origin of the study At present business is very much complex because of even changing customer choice, preference, taste etc. and for the technological and high competition. As globalization is on the competition is spread an over the world. So every organization should be international standard. Every company or firm wants to make their loyal customer group. Each firm would like to gain maximum profit through consumer's satisfaction. To day each company has to face so much competition. To perform all marketing tasks marketer are to faces. Two types of environment, one is macro or external and another is micro or internal environment.
We know that juice is a consumer goods. It is classified as shopping goods. People usually drink juice for the refreshment and to reduce tiredness. In all seasons juice is widely consumed by the customers. But the demand becomes high in the summer. Juice is tasty and nutrition's. There is a wide demand and high prospects for the juice products PRAN.
This study tries to focus on marketing problems and prospects of PRAN juice industries. PRAN juice is one of the popular brands in Bangladesh and also in international market recently. It is manufactured and marketed by Agriculture Marketing Company Ltd. (AMCL) of PRAN group. PRAN juice is selling mainly local market (all over Bangladesh) already it is exporting in Europe, America and Middle East also in India. We see that there is decrease the demand of PRAN product in our local market. Because of other competitors imports some juice from Pakistan, India and other countries juice is one of the items to meet this demand.
1.2 Objectives of the Study 1.2.1 Main Objective: The main objective of the report is how to handle the business related problem like decreasing the demand of the product and make a business plan for recovery the market shares of PRAN Juice Industries.
1.2.2 Specific Objectives: The specific objectives finding the reason of decreasing demand and make a plan for recovery by the marketing activities of PRAN Juice Industries are as follows:
To gather knowledge about the organization and the sales and marketing department.
To identify and analysis the reason of downfall of demand and prospects of PRAN juice industries.
To know the market demand & position
To identity the different types of problems and prospects of marketing activities of PRAN juice industries.
To know about competitors
To synthesize the findings and draw recommendations.
1.3 Methodology of the study For smooth and accurate study everyone have to follow some rules and regulation. The study impute were collected from two sources:
1.3.1 Primary source:
Face to face conversation with my colleagues.
Practical desk work.
Relevant file study as provided by the concerned officers.
Direct observation.
1.3.2 Secondary data sources:
Annual reports of the PRAN-RFL Group.
Company profile of the PRAN-RFL Group.
Files and Folders.
Various manuals of PRAN-RFL Group.
Extensive literature search on the basis of these documents of publication.
Newspapers, magazines, periodicals, and other pertinent articles.
1.4 Time schedule of the study For this kind of report paper its need much more time. But I’ve got a very short time for this. So it
was so tough for me to know about the proper marketing. It was not possible to me to know and include all kind of detail information on the report paper within this short time.
1.5 Literature Review Philip Kotler (2001): Marketing must be understood not in the old sense of making a sale- “telling and selling”-but in the new sense of satisfying customer needs. If the marketer does a good job of
understanding consumer needs; develops products that provide superior value; and prices, distributes, and promotes them effectively, these products will sell very easily. Thus, selling and advertising are only part of a larger “marketing mix – a set of marketing tools that work together to satisfy customer needs and build customer relationships. Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others.
Analysis: 2.1 Current market analysis: According to the information from different sources “Pran” 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.
Positioning according to RIES AND TROUT:
The world positioning was popularized by two advertising executives, AL RIES AND JACK TROUT. So PRAN Company has considered their strategy to be successful. So PRAN (AMCL) Company has creative exercise with an existing product, which is given below by a chart.
Company Target consumers
Benefits
Price
Tasty and
10%
healthy
premium
Value proposition
Product
PRAN
Quality
Conscious
consumer of young. (Age (Juice)
within 3-30)
The tasty, most healthy juice in which your family can rid to disease.
Company communicates positioning effectively. Suppose a company choose the "best-in-quality" is communicated by choosing these physical signs and cues that people normally use to judge quality. Further, company should be followed consumers perceptual mapping properly.
2.2 Product life cycle The market of PRAN juice is not new at present PRAN juice of AMCL takes position in the Rapid Growth stage in the product life cycle. This can be shown in a figure:
Product life cycle of PRAN juice:
PRAN Juice
s e l a S
Introduction
Early
Rapid
Growth Growth
Mature Stage Time
Saturation
Decline
2.3 Market Size An industry sale of juice is Tk. 55.5 crores at present. The AMCL is Tk. 45 crores at present.
Market Size Characteristics Market of juice is promising. It's increasing day by day. All sorts of people usually drink juice. But the children and the young people drinks most of them. They are very fond of drinking juice. The people of 3-35 years old age usually drink, upper of middle class people like juice. Most of people prefer tasty juice; they are price sensitive, want to get easily from any retail shop.
Total units (sales): Total units (sales) for the last eight years are given below:
Year
Total Units (Sales)
2003-04
35500000
2004-05
39500000
2005-06
43500000
2006-07
46000000
2007-08
51500000
2008-09
55200000
2009-10
50000000
2010-11
50500000
2011-12
45000000
2.4 Findings of the Study This section of the report contains findings of the study. The findings are the outcome of the syntheses of the analyzed data as well as decrease the demand of PRAN Juice Industries. Synthesis of the analyzed primary as well as secondary data covering different qualitative variables of the study, reviewing of a number of documents and oral discussion with the marketers resulted in a series of findings as follows.
Analysis of the Marketing Activities of the PRAN-RFL Group is not adopting with current procedures of other Groups.
Lack of proper marketing activities records and documents keeping system is not modern and scientific in PRAN-RFL Group.
PRAN-RFL Group is lacking of modern scientific tools to collect the marketing activities related information in time and proper way.
Training and Research Department is not modernized and regularized PRAN-RFL Group because very short qualified trainer.
Some time the highly qualified Marketer does not apply to the PRAN-RFL Group because of their lengthy process.
Maximum Marketers are unable to perform proper marketing activates because they have not adequate marketing knowledge.
Some Marketers have not adequate marketing knowledge about analysis, planning, implementation, and control.
Suggestion:
3.1 Situation Analysis: Pran produces Mango Juice, orange juice, Lichi Juice etc. We are successful in making profit of all the products mentioned. To give the customer a new fruit taste depending on marketing research information of the customer, we have decided to launch a new juice named “Strawberry Juice”. Our market area is Bangladesh. For the market, our consumers typically are in the 50,000 tk per year on average and higher income range. Competition for our immediate market is a group of five companies roughly comparable to our company. Only one of these firms, frutika juice, has an interest in marketing itself. We believe we rank first in the group of competitors, behind frutika.
3.2 SWOT Analysis: Strengths: 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. 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.
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).
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.
Weaknesses: External threats: Too much competition from international organizations, for example Coca-Cola, PepsiCo, RC-Cola, Virgin Cola, Rasna (India), Shezan (Pakistan) etc.
Internal weaknesses: Large size of the business and workforce makes it difficult to manage perfectly. As a result it often causes internal conflict.
Opportunities
Existing competitor of the current market is not that much strong which the pran company has.
Pran can be export to other countries.
Existing distribution channel is being used.
High growth rate in this industry.
Threats
Competitor can produce the same product.
Downward pressure on pricing.
Political instability, economy etc.
New innovation from other competitors could be a threat.
3.3 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.
Important
Distinctive
Superior
Communicable
Affordable and Profitable
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 followingCompany Name
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 o f 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 Strawberry 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.
3.4 Forecast and Financial analysis: it just a hypothetical forecasting and financial analysisThe brands of “ Strawberry 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 Strawberry Pran Juice.
July: After meeting with the dealers we will provide sample Strawberry 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 2013 to 2015 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.
Profit/loss: January 31,2011, AMCL(PRAN) As per un-audited half yearly accounts as on 31.12.12 (July’12 to Dec’12), 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.
3.5 Implementation & Control For Control Purposes the plan also allows for month by month comparison of actual versus projected sales and expenses. A contingency plan, attached has been developed for implementation in the case of severs downward pricing pressure. Advertisements are vital in our types of marketing. Salespeople will also be a fully trained in sale. Additional, every quarter we will try to monitor all the problematic areas by performing customer satisfaction surveys in limited areas. We also prefer to purchase retail store audit report, which would be the key to our strategies advantage in having superior data on market share and prospects.
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 to the 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.
Recommendation:
As being a very successful organization and there flawless management system has enabled Pran group to enjoy economies of scale through our profit maximization but as being a part of the culture of Bangladesh through our share of quality products. We should also emphasize 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.
Appendix A: Bibliography
1. www.pran-rflgroup.com 2. www.bdjobs.com 3. http://en/wikipedia.org 4. Financial reports 5. Kotler, Philip, Gray Armstrong, Jhon Saunders and Veronica Wong, Principles of Marketing, London : Prentice Hall Europe nd
6. Jobber, David, Principles and Practice of Marketing (2 Ed.), London: McGraw-Hill Publishing
7. Statistical Techniques in Business & Economics, Robert D. Mason, Douglas A. Lind & William G. Marchal. 8. Marketing Research, Naresh K. Malhotra
