Strategic management of Pran Foods 1. Introduction 2. History 3. SWOT Analysis 4. BCG Matrix 5. Suggestions 6. References

1. 2019
AMITY COLLEGE OF COMMERCE AND FINANCE
COURSE TITLE: STRATEGIC MANAGEMENT
COURSE CODE: STRA701
NAME: Lucky Upadhyay
ENROLLMENT NUMBER: A90957618010
SEMESTER: 3
TOPIC: Strategic Management of PRAN Foods.
SUBMITTED TO: Mr, Sandeep Bhattacharjee
DATE OF SUBMISSION: 07 / 11 /2019

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INTRODUCTION
PRAN-RFL Group Is one of the largest conglomerates in Bangladesh. It is the largest agro-
producer in Bangladesh. PRAN stands for Program for Rural Advancement Nationally. The
Products of the PRAN groups are Juice, Drinks, Bakery, Electronics, E-commerce, Coca-Cola
Bangladesh, Snacks, Culinary, Frozen Food, Noodles, Spices, Agro products, Confectionery,
Biscuits, Dairy, Plastic products, Furniture, Cycles, Super shops, Sweets and bakery stores, Textile
and Online shops.
PRAN has become one of the largest food and beverage brands in Bangladesh and its products are
exported to 138 countries. Pran pioneered agro business in Bangladesh. They provided farmers
with guaranteed prices. Pran Foods, a sister concern of PRAN-RFL Group, produces a number of
agro products under the banner of PRAN. Pran established a subsidiary company in UAE in 2003.
In 2008, the company announced plans to open a production facility in Tripura, India, after the
Indian government lifted the ban on direct investment from Bangladesh in 2007.
Pran's exports had reached 10 billion taka value by 2016, the biggest markets for the company
were India, Saudi Arabia, the UAE, Malaysia, and Oman. In April 2016, PRAN started to
export cassava, the first shipment, worth US$3 million, was exported to New Zealand. PRAN has
80 thousand direct employees and 200 thousand indirect employees.

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HISTORY
PRAN was established in 1981 by retired Major General Amjad Khan Chowdhury. A successful
period of 5 years led to the diversification of PRAN’s operations into agriculture in 1986 through contract
farming, with the coordination of AMCL, (Agriculture Marketing Company Limited). PRAN further
cemented its place in the industry through a food processing plant at Ghorashal in 1992. Coming
through this period of endeavor, PRAN has now established itself as one of the top manufacturing
companies and has set the grounds for development for any potentialities. The Head Offices are
located at Dhaka with production facilities around the Bangladesh.
Agricultural Marketing Co Ltd-PRAN-RFL is the first food dispensation company in Bangladesh
to achieve the impressive dissimilarity ISO 9001:2000 certification for their quality management
system. This ultimate certification ensures that PRAN-RFL Products reach the consumers table
maintaining the highest level of quality. In addition to ISO, PRAN-RFL has got certifications like
HALAL & HACCP. They have set their goal as; “Be Number One”.
Vision : “Improving Livelihood”
Mission: “Poverty & hunger are curses. Our aim is to generate employment and earn dignity
& self-respect for our compatriots through profitable enterprises.”
The establishment of PRAN was based on the vision of providing products that enhance health,
nutrition, and well-being of society. Along the way it has contributed to increased rural livelihood
in its domestic country, improvement in the standard of living, a boost of the national foreign
reserve and employment generation. PRAN is keenly aware of its responsibility for society and
this awareness is reflected in its activities.

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PRAN Food’s principal source of raw food material is contract farming. It greatly contributes to
an economic improvement of rural livelihood by means of employment generation and overall
improvement of the condition of the rural localities. Growers are provided with quality inputs
(seeds, fertilizers, pesticides), improved and advanced cultivation techniques, access to finance,
crop insurance, advanced storage and collection system and access to the international market for
their products.
PRAN believes in providing benefits that are sustainable in the long-run. The provision of tools,
knowledge, and finance nurture self-sufficiency. Also, PRAN supports the farmers working by
providing them with financial assistance on every level.
PRAN’s contributes to government expenditure in education, infrastructure development, public
employment generation and cash transfer under safety nets. It is also one of the largest corporate
taxpayers in its domestic country.
As a company, PRAN has always endorsed environmentalism and understands its responsibility
to advocate and practice ecologically beneficial activities. Furthermore, it nurtures the belief of
taking care of each of its stakeholders as well as the society at large. PRAN puts its belief into
practice by carrying out activities that benefit the economy and thus, the people operating within
that economy.

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SWOT ANALYSIS
➢ Strengths:
o PRAN has a good brand image in the field ready made food items and dairy products. Itjuices
and potato crackers are well not not only in the home country but also in the neighboring
countries of Asia like India. PRAN mango juice comes to the market by using pure local
mango. They use local fruits as ingredients and they maintain quality.
o PRAN Foods makes sure that their products are always available. They have a good
distribution channel. They make sure that their produicts are available even in the remote places
of Bangladesh. Availability of popular products of PRAN is not a problem even in India and
other parts of Asia.
o The affordable pricing of PRAN is another strength of the company which has helped it to
expand. They know that consumers are price sensitive and majority of their target market is
the middle-income group, hence they have made sure that their pricing doesn’t hurt a common
man’s pocket.
o To make consumers aware about PPRAN-RFL food products different types of events are held
by the marketing team. PRAN’s main event is “PRAN-RFL Competition”.
o PRAN group has a good advertisement policy as well. It ropes in popular celebrities from
time to time as their brand ambassador. It has also used Bollywood face to promote their food
drink Frooto.
o They work according to consumers preference. The Company always collects consumers’
feedback based on that they add or remove ingredients if needed.

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➢ WEAKNESS
o The company is still not able to reach the root levels. The main consumers of PRAN-RFL
are the city dwellers. Its products are still unable to spread to the rural areas.
o Unavailability of raw materials is another major problem which the company faces. Raw
materials to produce the juices are not available throughout the year. The pineapple unit
of PRAN based in Tripura imports concentrate as the local procurement is low.
o PRAN uses common advertising for majority of its food products which fails to give a
clear picture of the product to the consumers.
o The company is still unable to use advertising and promotional strategies effectively
outside the country. Still a large part of the target consumers are unaware about the
existence of the brand’s products.
o The distribution channel of the company is not so strong in India and other parts of Asia
(except their home country).
➢ OPPORTUNITIES
o PRAN-RFL has huge opportunity outside the country: From the year 2003 PRAN-RFL
started its exporting business outside the country. Its focusing in the markets of Middle-
East countries like Saudi Arabia, Dubai, Malaysia. Moreover PRAN-RFL starting its
business in London by matching quality with other well has known company. Some portion
of New-York is also captured by PRAN-RFL successfully.
o It may enter into tie-ups with multinational companies.
o PRAN has always supported farmers and it should continue to do so to produce more fruits.
PRAN’s mango juice market is expanding, so to meet excess market demand they need

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more raw materials and that is mango. Because of using pure local raw material, the
company has to purchase more fruits from the market. It can assist fruits farmers to grow
more because they can sell those to PRAN-RFL indirectly.
o The demand for ready-made food products and beverages have increased over the years
throughout the world. PRAN-RFL can easily satisfy those needs and demands by
expanding their production.
o PRAN should also position its products in the rural areas. There are many potential
consumers there. Since the standards of living and demand for ready-made food items are
rising in rural areas also. But, it should keep a check on the prices and maintain its low cost
strategy.
o It should launch more products in the neighboring countries also. All of PRAN products
are not available in other countries.
➢ THREATS
o Still the women of the home countries prefer homemade foods and juices.
o Changing consumer behavior is another threat to the company.
o Regulations set by BSTI for seedless chutney: BSTI launched a new regulation in terms of making
juice. According to that regulation no company can use seeds when make juice. Every company
has to use only the pulp of the fruits.
o The company still uses outdated technology.

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o High quality foreign products are available in the home country and many consumers have craze
for that.
o The come has lost market share due to fake products. The fake mango juice products were not
healthy and hygienic and hence consumers have lost faith in their juices.
o The biggest and direct competitors of the company are Arong and Bd food which also have
competitive prices and wide variety.
BCG Matrix
STAR
▪ Pran drinking Water
▪ Sauce
▪ Ketchup
▪ Pasta
QUESTION MARK
▪ Chewing gum
▪ Candy
▪ Instant Power Drink
▪ Fruit Bar
CASH COWS
▪ Juice
▪ Tin Canned Fruit Drink
DOGS
▪ Energy Drink
▪ Instant Consumable Jelly

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SUGGESTION
The performance of PRAN-RFLgroup, Bangladesh more than satisfactory level but the following
important positive steps may be taken to improve its product and service and to face competition
at national and international levels.
✓ Experience and expert personnel should be kept in the company.
✓ Improvement in the after sale service.
✓ Setting up effective channels for customer’s feedback and use the latter constructively.
✓ Effective training might help to increase the productivity of the employees.
✓ Upgradation in the technology
REFERENCES
1. http://pranfoods.net/
2. http://www.rflbd.com/
3. http://www.thedailystar.net/business/pran-export-3m-cassava-new-zealand-1207789
4. https://in.linkedin.com/company/pran-rfl-group
5. https://www.thehindubusinessline.com/economy/agri-business/fruit-of-assams-efforts-agri-
exports-from-n-eno-are-theyno-up/article26474651.ece
6. http://www.scribd.com/doc/24622098/Intern-Report-
7. http://www.pranrflgroup.com