External environmental analysis of frooto

INTERNALNATIONAL BUSINESS | 0
INTENATIONAL BUSINESS
UNIVERSITY OF DHAKA
External Environmental Analysis of Frooto

INTERNALNATIONAL BUSINESS | UNIVERSITY OF DHAKA 1
University of Dhaka
Department of International Business
Course Name: International Strategic Management (EIB-516)
Session: Fall-19
Assignment on
External Environmental Analysis of Frooto
Submitted to-
Dr. Chowdhury Saima Ferdous
Professor
Department of International Business
Faculty of Business Studies
Submitted By:
Name Roll
A.H.M. Ashiquzzaman 801724025
Mohammad Mostafizur Rahman 801825016
Touseef Mesbah Kazi 801825023
Md. Oliur Rahman Pritom 801825040
Asif Areafin 801825054
Date of Submission: 07/11/2019

A diversified company consists of two or more individual business enterprises. The
individual enterprises (or the lines of businesses) operate their businesses under a common
umbrella, called parent company. The parent company is the diversified company. Its
operations are usually carried on in a multi-industry environment, as opposed to a single
business company which operates in only one industry environment. As a result, managers of
a diversified company (i.e., corporate managers) need to formulate strategies for several
different business Divisions/enterprises in diverse industry environments. They formulate
‘multi-industry, multi-business strategy.’
Diversification aims at building shareholder value. This becomes possible when a diversified
group of businesses can perform well under the auspices of a single corporate parent. In fact,
diversification facilitates enjoyment of synergistic benefits (2+2=5 effect). However,
diversification does not always yield beneficial results. It works well
 When a company runs out of profitable growth opportunities in its original or core
businesses;
 When a company possesses technological expertise and resources that are well suited
for competing in different industries;
 When a company wishes to establish a strong institutional image and that wish is
supported by adequate manpower, physical and financial capabilities;
 When a company has opportunities to add value for its customers;
 When a company has the opportunities to gain competitive advantage by extending its
business in complimentary products;
 When a company finds it useful to transfer its existing competencies to new business
arenas;
 When a company can avail of cost-saving opportunities that can be exploited by
diversifying into closely related businesses.

A company may follow a number of strategies to diversify its business. The strategies for
entering new businesses include: (a) internal start-up or internal new venture strategy, (b)
acquisition strategy and (c) joint venture strategy. A company may follow any or all of these
strategies for diversifying into related or unrelated businesses.
In 2019-2020 financial year, per capita income of Bangladesh hits the record growth. It has
achieved 7.3% highest ever GDP growth rate in history of Bangladesh. For last 2 decades,
Bangladesh’s economy has grown by 6% annually where Bangladeshi Local Companies are
contributing remarkably. It’s surprising for the world but Bangladesh is somehow pulling
their economy up with 109.1 million labor forces. Diversified Companies like PRAN, ACI,
NAVANA, ABUL KHAIR GROUP, BASHUNDHARA GROUP, BEXIMCO, CITY
GROUP and SQUARE are the asset in Bangladesh’s Economy.
PRAN-RFL Group is one of the largest conglomerates in Bangladesh.PRAN stands for
Program for Rural Advancement Nationally. In Bangla “Progoti Rupayone Agrani
Noboddom”. It is the largest agro producer in Bangladesh. PRAN (Programme for Rural
Advancement Nationally) was established in 1981 by retired Major General Amjad Khan
Chowdhury. ‘PRAN’ started its operation in 1981 as a processors fruit and vegetable in
Bangladesh. PRAN has become one of the largest food and beverage brands in Bangladesh
and has been exported to 138 countries.
“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.
VISION
Poverty & Hunger are Curses. The organization thinks that poverty and hunger is a curse for
nation and they are trying to overcome the poverty.

MISSION
Improving Livelihood. Improving the people living standard in society and create the respects
and prosperity for the nation.
AIM
To Generate Employment and Earn Dignity & Self Respect for our Compatriots through
Profitable Enterprises.
CORE VALUES
PRAN believes in providing quality by considering the customers’ demands and
expectations. Continuous innovation and improvement is the motive of this organization by
focusing customers and tries to maintain fairness and transparency in all segments. The
Corporate values for PRAN are-
• Consumer care
• Supplier care
• Employee care
• Trade care.
The company's activity goes well beyond the sphere of business. As socially conscious and
responsible corporate body it is committed to the improvement of the society as a whole.
Therefore, it considers the interests of customers, employees, shareholders, communities, and
ecological considerations in all aspects of its operations. This obligation is seen to extend
beyond its statutory obligation to comply with legislation. It is involved in the welfare
program of the acid burn victims and helps many NGO's to make available healthcare to the
disadvantage population of the Country. It sponsors programs to build awareness on the
healthcare need.

Now we are going to discuss about “Frooto” the product of PRAN-RFL GROUP, a
leading Diversified company of Bangladesh.
Frooto was launched in Bangladesh in 2007 as refreshing mango juice & quickly went on to
become the leader in juice category market.Since launching of Frooto, consumers fall in love
with its unique taste & packaging. With new pack graphic & clutter breaking communication,
Frooto created a strong & powerful appeal among the target group of people.
Some of the Frooto products are illustrated below

In Bangladeshi market most of the juice brands are Bangladeshi and those have high sale in
the market. It happens because the Bangladeshi manufacturers focus on cost efficiency rather
than quality in producing juice. The list of these brands are;
The Name of manufacture Brands
Pran Foods Ltd. Frooto, Sunny, Apple Nectar, Kagozee
Akij Food and Beverage limited Frutika
Globe soft Drinks Mangole
Acme Sip
Fu wang Food Orange juice
Transcom Beverages Tropicana,Slice
Shajeeb Group Shezan
Abdul Monem Limited Maaza

Through the six question one can easily determine Opportunities and threat of a diversified
company or any product. The six questions are given below;
1. How strong are the industry’s competitive forces?
2. What are the driving forces in the industry, and what impact will they have on
competitive intensity and industry profitability?
3. What market positions do industry rivals occupy—who is strongly positioned
and who is not?
4. What strategic moves are rivals likely to make next?
5. What are the industry’s key success factors?
6. Is the industry outlook conducive to good profitability?
Through the six question we are going to find out the opportunity and threat of the diversified
product of pran ‘FROOTO’.

How strong are the industry’s competitive forces?
The tool was created by Harvard Business School professor Michael Porter, to analyze an
industry's attractiveness and likely profitability. Since its publication in 1979, it has become
one of the most popular and highly regarded business strategy tools.
Porter recognized that organizations likely keep a close watch on their rivals, but he
encouraged them to look beyond the actions of their competitors and examine what other
factors could impact the business environment. He identified five forces that make up the
competitive environment, and which can erode your profitability.
Competitive Rivalry. This looks at the number and strength of your competitors. How many
rivals do you have? Who are they, and how does the quality of their products and services
compare with yours?
Where rivalry is intense, companies can attract customers with aggressive price cuts and
high-impact marketing campaigns. Also, in markets with lots of rivals, your suppliers and
buyers can go elsewhere if they feel that they're not getting a good deal from you.

On the other hand, where competitive rivalry is minimal, and no one else is doing what you
do, then you'll likely have tremendous strength and healthy profits.
If we look at PRAN Frooto which is one of the pioneer fruit juice brands in Bangladesh has
many competitors in market like Akij, Shezan etc. The PRAN Frooto is one of the most
selling juice in Bangladesh market which has to compete with other brands to present in the
market. As Pran is old brand among them so the popularity of the product is much higher
than others. Also the supply chain is good than other brands.
Supplier Power. This is determined by how easy it is for your suppliers to increase their
prices. How many potential suppliers do you have? How unique is the product or service that
they provide, and how expensive would it be to switch from one supplier to another?
The more you have to choose from, the easier it will be to switch to a cheaper alternative. But
the fewer suppliers there are, and the more you need their help, the stronger their position and
their ability to charge you more. That can impact your profit.
If we look at the market, we see there are many companies with their supplies. To stay in the
market every company need to follow some steps to supply them like price, supplier & their
service. PRAN is an old company & they are popular too so the supply power is much higher
than other companies.
Buyer Power. Here, you ask yourself how easy it is for buyers to drive your prices down.
How many buyers are there, and how big are their orders? How much would it cost them to
switch from your products and services to those of a rival? Are your buyers strong enough to
dictate terms to you?
When you deal with only a few savvy customers, they have more power, but your power
increases if you have many customers.
If we look at the buyers, they want the products with good quality with less price. So Pran
always need to look forward to continue that strategy. If we look at the market, we can see
the prices of these products are almost same. It depends actually on the taste of buyers & their
choice. Also the availability of that product on the market. People switch to new or other
brands when the quality has fallen or the service is growing down as well as price of new
brands also.

Threat of Substitution. This refers to the likelihood of your customers finding a different
way of doing what you do. For example, if you supply a unique software product that
automates an important process, people may substitute it by doing the process manually or by
outsourcing it. A substitution that is easy and cheap to make can weaken your position and
threaten your profitability.
The threat of substitution means other products which can replace it. In our market without
Pran there are many foreign markets which produce fresh juices. Some soft drinks also
produce mango jucie lika Mazza, Slice etc available in the market. They are also popular
among the buyers. So Pran is losing their stop in the market place as the substitutions are
growing demand in the market.
Threat of New Entry. Your position can be affected by people's ability to enter your market.
So, think about how easily this could be done. How easy is it to get a foothold in your
industry or market? How much would it cost, and how tightly is your sector regulated?
If it takes little money and effort to enter your market and compete effectively, or if you have
little protection for your key technologies, then rivals can quickly enter your market and
weaken your position. If you have strong and durable barriers to entry, then you can preserve
a favorable position and take fair advantage of it.
Threats of new entry also creates the problems to the existing companies which is currently
available on the market. New companies come with new ideas, discount & new product
which has always a positive vibe in the market place. So if the new entries into the market
than it will be competitive for the new companies.
What are the driving forces in the industry and what impact will they have no
competitive intensity and industry profitability?
The essence of strategy formulation is coping with competition. Yet it is easy to view
competition too narrowly and too pessimistically. While one sometimes hears executives
complaining to the contrary, intense competition in an industry is neither coincidence nor bad
luck.

Moreover, in the fight for market share, competition is not manifested only in the other
players. Rather, competition in an industry is rooted in its underlying economics, and
competitive forces exist that go well beyond the established combatants in a particular
industry. Customers, suppliers, potential entrants, and substitute products are all competitors
that may be more or less prominent or active depending on the industry.
The state of competition in an industry depends on five basic forces, which are diagrammed
in the Exhibit. The collective strength of these forces determines the ultimate profit potential
of an industry. It ranges from intense in industries like tires, metal cans, and steel, where no
company earns spectacular returns on investment, too mild in industries like oil field services
and equipment, soft drinks, and toiletries, where there is room for quite high returns.
In the economists’ “perfectly competitive” industry, jockeying for position is unbridled and
entry to the industry very easy. This kind of industry structure, of course, offers the worst
prospect for long-run profitability. The weaker the forces collectively, however, the greater
the opportunity for superior performance.
Considering the PRAN driving forces of pran is they are one of the oldest company in this
industry & one of the largest also. So they know the sector very well. They have large
manpower with huge plants. They collect their raw materials from all over the country. After
the production they also provide it with their supply chain management throughout the
country & abroad also.
If they have no completion in the intensity, then other brands will go ahead of them. Because
this a moving industry & everyone has to know their strengths & weakness at the same time
to stay in the market. Profitability primarily indicates to what extent a company is
able to produce and sell its goods in the market place for a profit. Broadly, it is a
reflection of how well a company renders a product and/or service and to what
degree it is able to generate sales.

What market positions do industry rivals occupy—who is strongly positioned and who
is not?
Market Positioning refers to the ability to influence consumer perception regarding a brand or
product relative to competitors. The objective of market positioning is to establish the image
or identity of a brand or product so that consumers perceive it in a certain way. The rising
number of health-conscious consumers is giving a boost to fruit juices; it has been observed
that consumers are shifting from fruit-based drinks to fruit juices as they consider that it is
healthier breakfast/snack option. Pran Frooto has created a significance image over the years
in the consumers’ mind but there are also some rival brands those always try to take the
spotlight. Pran Foorto has close competitor like Frutika(AFBL),Shezan(Shajeeb),
Mangolee(Globe), Tropicana (Transcom), Starship(AKG) and also some none direct
industrial rival like Coca-cola, PepsiCo etc.
Praan Frooto is of Bangladeshi origin and is associated with beverage industry. It is a
nutritional drink with mango flavors and has been projected as a flagship product of its parent
company Pran-RFL Group Ltd. Pran Frooto was launched in the year 2007 as a ready-to-
serve drink and with time has occupied an important part of market share. Pran Frooto has
been rated as Most Trusted Fruit Beverage Brand in Bangladesh. Colorful and playful nature
of brand advertisements has helped it in earning acceptance and accolades from younger and
older generation time and again. The company has taken several innovative initiatives to
increase its brand visibility in the consumer market. Pran Frooto has targeted teenager section
with its playful commercials that are shown via electronic, print and social media. Most of
the channels in television are telecasting its promotional ads. Radio, newspaper, hoardings
and billboards are some main advertising tools to market this brand effectively.
Major Competitors of Pran Frooto
 Frutika- Frutika is the biggest and closest competitor of Pran Frooto. The brand has
seen growth in organic revenue in 2014-2015. It has also awarded as the best juice
brand in ‘Best brand award 2015’. The two brands compete across several categories
including price, quality and calories as well as bottled size and promotional activities.

In fact, Frutika is the toughest competitor of Pran frooto and both the brand always
been almost in a cold war from the very beginning. Though Frutika still is the biggest
rival of Pran Frooto but they still cannot able to extend their business overseas where
Pran Frooto has now developing a good market share in India, Saudi Arabia,
Malaysia, UAE and Oman.
 Shezan- Shezan is a product of Sajeeb Group and once it was also very popular
brand in mango fruit juice. Shezan is basically focused more on children then elder
people when they started in the market. But in recent years, it has become to lose
popularity due to lack of quality, poor in taste, promotion and availability. Mostly,
Shezan is now available only in small shops and outside the city area.
 Mangolee- Mangolee is a product of Globe and it has less popularity in the fruit juice
market. Mangolee is mainly available in the rural area and also does not have proper
promotional activities nor any demand in the market. Though, Mangolee wanted to
compete with other popular drinks but unfortunately it has also lack of quality, not so
good in taste and less known to the people so that is the reason that it is not a
successful pioneer of the company.
 Tropicana- Tropicana is a product of PepsiCo group and Transcom actually brought
it to the Bangladesh market very recently. Tropicana is a famous brand that sells
across 25 countries and is now focusing on core markets of western Europe and USA
for farther growth.. Tropicana saw its sales booming in 2017 in five major markets
including Canada, United States, Argentina, Netherlands, Germany, Northern Europe
and United Kingdom. In Bangladesh, Tropicana is now available in only
supermarkets and some of high class area of Dhaka City. Hopefully, they will try
create more market share by proper promotional activates.
 Starship- Starship is a product Abul Khair Group and it is been only few months as
they started their bottled mango drink before they had only paper pacs. Starship is a
well-known brand in the country but their mango drink is very new and most of the
people are not even know about it. Starship should set their standard of quality and

create their proper market by doing proper marketing strategy as many other
companies are already available in the market.
Growth Drivers of Mango Juice Industry
There are several reasons behind the growth the Bangladeshi bottle mango juice category has
realized; some of these are mentioned below:
 Changing consumer lifestyles: Given the change in eating habits, the wider global
exposure, and the growing time-poverty, has provided a fillip to the convenience food
segment. Again, consumer preferences are shifting towards healthier lifestyles. As a
result, the packaged juices market has charted a high growth trajectory thanks to its
easy availability, anytime-anywhere consumption, and convenience. Juices are often
seen to be quick, yet nutritional, fillers.
 Increased Health Awareness: The rising awareness about heart- and weight-related
health issues, especially among teenagers and young adults, has propelled the
consumption of bottled fruit drinks.
 Hygiene matters: Juices are healthy only when prepared hygienically. Bottled juices
from trusted national and international brands have usually been prepared and
certified to be in accordance with health and safety regulations. They thus underpin
the confidence of consumers in considering them to be a healthy and convenient
option, as compared to the fresh juices available at local joints and street stalls.
 Growing category of informed buyers: There is a growing category of informed
buyers who are able to distinguish between fruit-based beverages and fruit juices.
These consumers are health conscious, highly aware, and have higher disposable
income. They have, therefore, led the demand for 100% fruit juices in the past couple
of years.

 Rising Disposable Incomes: In the past few years, there has been a sharp change in
the number of nuclear families, in tandem with a surge in the number of working
couples, which has led to higher disposable incomes. This has aided the affordability
of packaged fruit juices, which are fast replacing fresh, homemade juices and
becoming a compulsory item on breakfast tables.
 Booming modern retail: The dynamics of growth in the fruit-based beverage space
are attributed to modern retail and alluring shelf displays which drive impulse
purchases.
 Habitual purchase: The trend of consumers evolving from fruit drinks in bottles to
sweetened juices to 100% packaged juices has been observed largely in the past
couple of years. Consumers are buying in greater quantities, for household
consumption, and buying fruit juices is becoming more of a habitual purchase than a
need-based purchase.
Market Growth and Market Share
In order to understand the market position of all these mango juice brands, we must need to
put them under the BCG matrix model. BCG matrix will help the business to analyze growth
opportunities by reviewing the market growth and market share of products and show them
which categories, they fall under. BCG Model puts each of the brands into one of four
categories. The categories are all given remarkable names- Stars, Cash Cows, Dogs, and
Question Marks.

 Stars: Stars are leaders in business. These products have rapid growth and dominant
market share. However, they require heavy investment to maintain its position and its
large market share. In this contest, definitely Pran Frooto is the Star of the mango
juice industry with their high market share and high market growth even outside the
country.
 Cash Cows: Cash Cows category represents businesses having a large market share
in a mature, slow-growing industry. Businesses under this category usually follow
stability strategies. Further, these firms required little investment and generate cash
that can be utilized for investment in other business units. If we consider this scenario
then Frutika is the cash cow of AFBL with high market share and low market
growth.
 Dogs: Dogs represent business having a low market share in a low growth market.
These firms have low market share due to poor quality, ineffective market, high cost,
etc. They neither generate cash nor require a huge amount of cash. Due to low market
share, these firms face cost disadvantages. Currently, Shezan and Mangolee are
following under this category but their positions can be better if they come up with
some potential strategies.

 Question Marks: These businesses represent a low market share in a high growth
industry. Generally, these products are the startup or new products, which have a good
commercial prospect. Therefore, they require a huge amount of investment to gain or
maintain market share and to become a Star product. No doubt the market has growth
opportunities, but these products have not succeeded to take benefits of these market
opportunities to such an extent that they can be recognized as Stars. At present,
Tropicana can be mentioned as Question Marks as because its higher market share is
going to depends on the company which brought them in our market by setting up
proper distribution channel and heavy promotional activities.
What strategic moves are rivals likely to make next?
 A firm’s own best strategic moves are affected by
o Current strategies of competitors
o Actions competitors are likely to take next
 Profiling key rivals involves studying
o Current position in industry
o Strategic objectives
o Basic competitive approaches
 Successful strategists take great pains in scouting competitors
o Understanding their strategies
o Watching their actions
o Evaluating their vulnerability to driving forces and competitive pressures
o Sizing up their resource strengths and weaknesses and their capabilities
o Trying to anticipate rivals’ next moves

 Predicting rivals’ next moves involves
o Analyzing their current competitive positions
o Examining public pronouncements about what it will take to be successful in
industry
o Gathering information from grapevine about current activities and potential
changes
o Studying past actions and leadership
o Determining who has flexibility to make major strategic changes and who is
locked into pursuing same basic strategy
It is determined by following acts:
 Analysis of current strength, weakness, capabilities and strategies of rivals
 Analysis of rival’s current assumption about self and industry.
 Analysis and objective appraisal of current objectives of rivals for financial and
performance target whether they have met those or not. A financial target achiever
rival is less like to move to a new strategy than a non-achiever.
PRAN Frooto is one of the pioneer fruit juice brands in Bangladesh that aims for the youth
generation. The consumers are mainly the young boys and girls of the urban area of Dhaka
and other big and small cities. Consumer Behavior basically is a study of how a person, group
or an organization selects purchases and uses any product or services and what exactly
influences this decision to buy.
Value, satisfaction and quality are interrelated concept. Because customers focus to value,
quality and satisfaction while purchasing the things form the market. Customer value is the
amount of benefits which customers get from purchasing products and services. It can also be
defined as the difference between the values customers gain from using a product and cost of
the product. PRAN holds a strong position regarding value in the consumers‟ minds. Buying

a PRAN product makes a feeling of satisfaction in the consumer minds since its acceptability
is huge. Price is within the budget which makes proper value in the consumer minds when the
product is availed. For example, purchasing a PRAN Frooto 250ml by 22 taka makes the
consumers feel satisfied since they are getting a healthy fruit drink in a small bottle and in a
reasonable price where TropicanaMango is priced at Tk 25 for 250ml and Tk 35 for 350ml,
while TropicanaFutz Orange and Apple are both available at Tk 40 for 350ml.Pran(Frooto)
juice strengths are Good marketing skills,Good materials management systems,Brand name
reputation,A large market share. Where weakness are Lack of technical manufacturing
skill,don’t feel necessity of market survey and not eager to understand consumer behaviors.
Tropicana is a great addition to PepsiCo’s diverse portfolio in Bangladesh.Premium brand
like Tropicana is part of a strategic roadmap for expanding business for Transcom Bevarage
in juice sector. As they have the partnership with pepsico its will help them a lot in terms of
doing business in Bangladesh. Different company will feel its challenge as they have the vast
distribution channel with expert management.Transcom Beverages Ltd is the sole franchisee
of globally renowned PepsiCo in Bangladesh. Tropicana has good reputation among
customers for its value pricing, efficient distribution channel, strong financial position, high
ethical value and standardize business practice. Transcom beverage is the market leader for
liquid drinks products and the only MNC that sell electrodes. But they have lack of brand
awareness, promotional activities, High price of product from customer point of view.
AML (Mazza) currently can distribute its beverages only in Chittagong, Khulna, Sylhet and
Barishal Division. The acquisition of the distributorship of the whole Bangladesh will be a
great opportunity for AML. They have Narrow band of beverage product line compared to
the competitors. Though the competition in the industry is tense than ever, still the price set
by AML is in the top region, so they are not eyeing to be the Low Cost Provider either. They
produce no products for any niche group or for any special price facilitated groups. Thus,
strategically AML can be classified as he Best Cost Provider. The Strength of Abdul Monem
limited is International brand image of Coca Cola. Technical expertise and R&D provided by
international authority of Coca Cola. Nationwide distributorship driven by highly motivated
workforce. Weakness of AML is Over dependency on the international Coca Cola authority.
No room for crafting brand level strategies.

Frutika captivated a large share in the market because of its taste, packaging and unique
promotional activation. The ingredient of the all types of Frutika is provided in APPE. The
ultimate price is then analyzed by AFBL using two methods. Competition-based pricing and
Market-oriented pricing. They do not use Profit maximization pricing. Their product price do
not change in various geographical areas/ zone pricing do not available. They do not set their
price according to their competitor product price. The distribution channel AFBL employs is
called Dual Distribution Channel (DDC). In DDC, a company itself distributes the products
and also incorporates large number distributes, who are individuals entities, to distributes the
products to the final user. Frutika has unique promotional activities, Strong local presence,
Comprehensive knowledge of the total market and client, Favorable brand image. In spite of
that Frutika has less experience in the beverage market in terms of understanding in timely
proper customer need. Being new in the market AFBL considers a weakness in the entire
supply-chain-management, less compliance to market demand.
OPPORTUNITIES
 Existing competitor of the current market is not that much strong as FROOTO.
 FROOTO can be export to other countries.
 Existing distribution channel is being used.
 High growth rate in this industry.
 Competitor’s weak distribution Channel.
 Export tie up with multinationals.
 Can apply research and redevelopment in new areas.
 Diversity into new growth business.
 Extend cost or differentiation advantages.
 Exploit new market segments.
 Overcome barriers to entry.

THREATS
 Competitor can produce the same product.
 Downward pressure on pricing.
 Political instability, economy etc.
 New innovation from other competitors could be a threat.
 Limited target segmentation.
 Changing consumer behavior.
 Aggressive competitors.
 Availability of foreign product.
 Political instability and government regulation.
 Economic depression.
What are the industry’s key success factors?
Key success factors KSFs) express a relationship between the performance of a business, in
terms of competitive advantages, and the causes of that performance, in terms of assets and
skills. They refer to high leverage functions and activities a company must master in order to
outperform its rivals. (Matthyssens & Vandenbempt, 2007/12/20).
Types of Key Success Factors
Key success factors can vary depending on the type of business you are in and what projects
you are about to undertake. Broadly speaking, there are four different categories of KSFs:
1. Industry KSFs- are related specifically to your industry or market.
2. Strategy KSFs- are related to your competitive strategy.
3. Environmental KSFs- are related to technology or economic changes affecting your
business.
4. Temporal KSFs- are related to organizational changes and requirements.

Key Success Factors in Manufacturing Industry: The reason behind the huge success of
“Frooto” was-
 Low-cost production efficiency:-The production capacity of Pran has gotten bigger over
the time period. Because of the market demand and the fluent distribution channel Pran
successfully reached very close to it’s consumer.
 Quality product manufacturer: Pran never compromise with its quality. Though other
potential competitors have the price benefit over Pran in juice market but Pran stood still
with its quality over the year.
 High utilization of fixed assets: Pran is a leading internationally compliant consumer
brand producing 200 agro-food products in 10 food categories delivering over 110
countries. So it has the great advantage of utilizing it’s both fixed and other assets.
 Low-cost plant locations: Pran has established its plants in various location of the whole
country. Depending on the product criteria and the availability of materials the plant are
made.
 High labor productivity: The management within the corporation has allowed its
excellent workforce to work together in building an organization that believes in
providing equal opportunity for everyone. Also, PRAN acknowledges all the complaints
and suggestions given from every single level of the organization.
 Low-cost design and engineering: Pran made its products as the way that it can be
beneficial for every working group or class. And also priced it accordingly. So in a way
that whatever class you may belong to but you have a need that is being full filled by
Pran.
 Flexibility in manufacturing a range of models: Throughout the assignment we are
taking about the juice segment of Pran so we are going to highlight the variety of Pran’s
juice segment. Such as
i. FRUIT JUICE IN GLASS BOTTLE (RETURNABLE):- Available in mango flavor,
made from fresh local ripe mangoes.

ii. 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
a. .
iii. FRUIT JUICE IN ASEPTIC PACK:- Available flavor in this category are MANGO,
LEMON, ORANGE, PINEAPPLE, GUAVA AND MANGO-PINE.
iv. 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.
Key Success Factors in Pricing Strategy:
PRICING STRATEGIES:
FROM THE MARKET RESEARCH, WE RECEIVED THE FOLLOWING:
Company Name Price (250ml)
Frutika 22
Tropicana 25
Frooto 22
In terms of pricing Frooto is considered as the mid-range price group of products which is
neither broad differentiator nor the low cost provider.
PLACE OR DISTRIBUTION: The mother company Pran has the widest distribution
channels all over the country. Through these channels Pran made sure that people can
purchase their product easily when they like to consume. They love to treat their consumer by
Value Delivery Network.

ADVERTISING AND PROMOTION: The most successful advertising through most
popular television channels in the country have succeeded to grave the attentions over the
years. Also some bill-boards and leaflets are seen almost every cities.
TARGET MARKET: “Frooto” always have the appeal in young age’s people who like to
drink juice very much. Mostly the school going students and the children. But eventually the
young generations and people of adult and old ages became the fan of this particular juice
Environmental KSFs: are the macroeconomic influences that affect all competitors
within an industry, and over which the competitors have little or no influence, e.g.,
demographics, economic and government legislative policies etc.
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.
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.
Temporal KSFs: Temporal factors, which are areas within a business causing a time-
limited distress to the implementation of a chosen strategy, e.g., lack of managerial
expertise or skilled workers.

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).
Is the industry outlook conducive to good profitability?
Considering the above five answers, we get a clear view of Froot’s strong position regarding
the value in the consumers’ minds associated with low-cost production efficiency. Buying a
Frooto makes a feeling of satisfaction in the consumer minds since its acceptability is huge.
Price is within the budget compared to it’s competitors. Purchasing a PRAN Frooto 250ml by
22 taka makes the consumers feel satisfied since they are getting a healthy fruit drink in a
small bottle and in a reasonable price.
 Market Profitability
Over the years, being an old and popular Frooto has been the most selling juice
consistently. In the context of Porter’s five force model, it holds competitive position
compared to its rivals on the dimensions like buyer power, supplier power, barriers to
entry, thereat of substitute products and rivalry among competitors.
 Position & growth in the market
The nature of brand advertisements has helped Frooto in earning acceptance and
accolades from younger and older generation time and again.
Some of the reasons behind’s it growth are changing consumer lifestyles, increased health
awareness, growing category of informed buyers.

REFERENCES
1. Kotler Philip, Principles of Marketing, 10th Edition, Prentice Hall International,
Inc, 2001.
2. Kotler, Philip, Marketing Management, Millennium Edition, Prentice Hall of
India Private Limited, 1999.
3. Stantion. J. Willam, Fundamental of Marketing, 9th edition, 1998.
4. Yoram. J. Wind, Product Policy, Concept, Method and strategy,
5. Boyd Harper. W. Westfall Ralph, Marketing Research text and case, 3rd Edition
1972.
6. Potter. Michael, Edeco, Competitive advantage and strategy, The Free Press.
7.Annual Report of AMCL: 1998-99, 1999-2000, 2000-2001, 2001-2003, 2003-04,
2004-05.
8.PRAN website: www.pranrflgroup.com
9.https://www.lawyersnjurists.com/article/organizational-structure-pran-group/
10. https://www.scribd.com/document/261041350/A-Case-study-on-Pran
11. https://www.coursehero.com/file/11864725/SWOT-Analysis-of-PRAN/
12. Corporate Social Responsibility is available at company own website retrieved
from www.PRANfood/csr.net
13. Product Portfolio. (n.d). is prepared with the help of product part of their official
website which is http://www.PRANfoods.net
14. Raw Materials collection issues are written with the help of topic “Supplier Concern”
from the own website of PRAN-RFL group available at www.PRANfood.net

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