Comilla University

Department of Marketing

Course Title: Business Environment

Course Code: MKT-312

Term paper on: Expansion of Pran Mr. Noodles in Philippine

Submitted to:

Mahfuzur Rahman

Assistant Professor

Department of Marketing

Comilla University.

Submitted by:

MD. Kaosar Ahmed

ID: 12007026

Department of Marketing

Comilla University

Submission Date: 11-10-2022

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 Company: Pran RFL

Product: Mr. Noodles

Country: Philippines

Table of Content

Serial Title Page

Number
1. Introduction(Selected Company,Product and Country) 3-8

2. Expansion and Reason to select the country 8-9

3. PESTEL Analysis 9-14

4. Opportunity and Threats 14

5. Entry Mood 15-16

6. Recommendation 16

7. Conclusion 17

8. Reference 18-19

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 Part A:

1. Introduction

1.1 Company:

Pran RFL

PRAN means Programmer for Rural Advancement

Nationally. The Pran Foods Company is sister firm of the
Agricultural Marketing Co Ltd. It is established first as
juice and packaging foods producing company.

Background: PRAN' took birth in 1981 as a processors fruit and vegetable in Bangladesh. In
due course of time, the company has not only grown its importance but also greatly contributed
to the overall socio-economic development of the country. "PRAN" is currently one of the most
admired food brands among the millions of people of Bangladesh and other 106 countries of the
world where PRAN Products are regularly being exported. All the PRAN products are produced
as per international paradigm maintaining top class level of quality at every stages of the
production process. PRAN in modern times producing more than 200 food products under 10
different categories i.e. Juices, Drinks, Mineral Water, Bakery, Carbonated beverages, Snacks,
Culinary, Confectionery, Biscuits & Dairy and so on. 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 that only the best quality products are reaches to the consumers
table across the Globe.

Achievement of Pran Exports: For excellence in export market including product development,
market development etc. Pran has been awarded numerous trophies in home and abroad. In
recognition of contribution towards earning foreign currency, PRAN achieved “Best National
Export Award”.

Source: (pranfood.net)1

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1.2 Strength and Weakness of Pran Group

Strength Weakness
The PRAN Company has excellent brand Management Efficiency
awareness and a high quality image as juice and
packaging product producing company.

Dealers and sale personnel who sell the PRAN's Training and development of product
product are knowledgeable and well trained in Maximum products of PRAN of
selling. That refers the strong distribution Agricultural Marketing Company Limited
channel. (PRAN) are not that quality level which
customer wants. They should try to
maintain the quality.
The PRAN Company has an efficient service Short life cycle of product
network and strong distribution channel to
reach the product to the consumers quickly.

As far we know PRAN is one of the leading Positioning as a local manufacturing

food producing and food exporting in BD. company though they have expanded their
PRAN export 140 countries over the world business in different country they still
considered as a local manufacturing
company.

Because of the variety of product PRAN leads

in the share market and increasing the market
share.
Source: (course hero)2

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1.3 Product:

Mr. Noodles!!!

It was launched in the market back in January of 2012. Now some new flavors are being
launched under the brand: Chicken, Vegetable, Beef, and Tomato and tom yum shrimp flavor
etc. We have also started to export the brand to Middle East and other foreign markets. Recently
we have launched Mr. Noodles Cup noodles in the Bangladesh market. PRAN RFL brands of
instant noodles come pre-packaged with vegetables, meat, spices and eggs, and people just need
to add hot water and its ready to eat. Stick noodles are more cumbersome. They have to be boiled
and mixed with vegetables, meat, or eggs, which also have to be cooked before serving.

Name Mr. Noodles

Available Size (8 pcs x 62 gm), (14 pcs* 40gm)

(4 pcs, 12pcs, 16 pcs *62gm)
Category Snacks

Flavor Vegetables, Tomato, Chicken, Beef, Korean

Super Spicy, Magic Masala, Shrimp
Pack Type Combo foils, Cup Noodles

Country of Origin Bangladesh

Manufacturer Pran Agro Limited.

Source: (Pranfoods.net)3

1.4 Market Share : The market for noodles –

a very popular snack item – has expanded rapidly
in Bangladesh in the last few years due to rapid
growth and urbanization. Also with restaurants
closed under Covid-19 restrictions, entrepreneurs

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both here and abroad are keen to explore the market potential for noodles. The noodle market in
Bangladesh is worth around Tk1,000 crore, and it has shown an annual growth rate of about 10%
in the last few years. But the growth jumped to around 16% during the pandemic with many
people staying home, for the most part, industry insiders told The Business Standard. Along with
the growth in the local market, exports grew too – increasing 25% in FY2020-21, year-on-year.
Urbanization and people's work and lifestyle have brought the boom naturally to the noodles
market. Seeing the steady growth in demand, a number of large conglomerates, both local and
foreign, have invested in this market, say insiders. Aside from giants like Nestlé, Cocola, Pran-
RFL, Bashundhara, Square, and Ifad, a number of smaller companies have also entered the
Bangladeshi noodles market. On the matter, Pran-RFL's Director of Marketing, Kamruzzaman
Kamal, said, "When people stay home, they tend to snack more. Noodles are a very popular
snack item, and it can be prepared quickly. "This is why the noodles market is booming at this
time." Pran's Mr Noodles is one of the most popular noodle brands in Bangladesh. The market
share of PRAN Mr Noodles have 22%. And it is increasing day by day. There are two types of
noodles available in the local market – instant and stick noodles. The demand for instant noodles
is higher in the country, as they can be prepared relatively quickly. 60% of all noodles sold in the
market are instant noodles. In reports of 2020 the business standard. Source (The business
Standard)4

1.5 Country:

PHILIPPINE: The Philippines, officially the Republic of the Philippines, is an archipelagic

country in Southeast Asia. It is situated in the western Pacific Ocean and consists of around
7,641 islands that are broadly categorized under three main geographical divisions from north to
south: Luzon, Visayas, and Mindanao

Name Philippine
Republic of the Philippines
Motto "For God, People, Nature and Country"
Capital Manila
Area 300,000 km
Population 112,771,528

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 GDP $450.340 billion (nominal)
Background: The Philippines is a tropical country in Pacific Ocean, blessed with beautiful
natural landscapes - and active volcanoes and extreme weather patterns. The Philippines,
consisting of some 7,107 islands, is
located in the western Pacific Ocean.
Taiwan lies to its north, and Vietnam
to the west. It is the 73rd-largest
country in the world by surface area,
but with a population of some 98
million people, making it the seventh
most populous country in Asia, and
the 12th most populous in the world. Its capital, Manila, is the second largest city in the country
after Quezon City (the former capital) - and home to most of the country's educational and
political institutions. The Philippines is made up of thousands of islands The country, once a
Spanish colony, eventually gained its independence from US occupation in 1946. The
Philippines is located close to the equator on the so-called Pacific Ring of Fire - or typhoon belt -
a large Pacific region where many volcanic eruptions and earthquakes occur. More than 170
different languages are spoken across the Philippines, the most popular being Tagalog (Filipino),
followed closely by English. More than 90 percent of Filipino people are of the Christian faith,
while five percent practice Islam. The remaining five percent are made up of a mix of minority
religions. Source: (Wikipedia)5

1.6 How much Filipinos love noodles:

Just like other Asian cultures, Filipinos view noodles as a symbol of long life. Every major
occasion and celebration, from birthday parties to Christmas celebrations, will feature at least
one pancit dish. Almost every pancit dish (expect for a few varieties) is served with
calamansi, a local citrus fruit. The sour juice serves to brighten the flavors of the dish. Despite
it being substantial, Filipinos rarely view pancit dishes as a full meal unto itself. They are
mostly viewed as merienda (snacks). Unlike in other Asian countries, slurping loudly is not a
common way of enjoying noodles in the Philippines. Almost every pancit dish is enjoyed with
another carb, like bread or rice. In fact, some fill a pan de sal (local bread) with pancit and eat

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it like a sandwich. It wouldn’t be a birthday, at least in their house, without noodles. The
Filipino tradition of eating noodles, or pancit (the Filipino language, pansít is the generic word
for noodles), to celebrate a birthday is one that was adopted when noodles were introduced to the
Philippines by the Chinese, and is meant to symbolize long life and good health or The long
pancit (noodles) are good luck for long life. This blog-birthday week would not be complete if
they did not celebrate with pancit!

Source: (Pinterest.Com)6

1.7 Philippines noodles import data:

Noodles import shipments in Philippines are 14.5K, imported by 716 Buyers.

Philippines imports most of its Noodles from South Korea, Indonesia and Japan. The
top 1 import markets for Noodles are Philippines. Philippines is the largest importer
of Noodles and accounts for 14,461 shipments.

Source (Volza.com)7

1.8 Reason to expansion and why choose the country: Some main point to select the
Pran company’s Mr. Noodles for Expansion and reason to select Philippine.

Reason for Expansion:

 Pran RFL has a big brand image in Bangladesh and Aboard

 Excellent brand awareness about packaging product producing company.
 The company have strong distribution channel.
 Most Important thing the company PRAN RFL is exporting its product more than 140
countries all over the world.
 Mr. Noodles have huge Demand in BD market for its taste.
 Mr. Noodles have many variety of package of Combo foils and Cup noodles

Why select the Country:

 Figures from the World Instant Noodles Association meanwhile has put the Philippines’
instant noodles demand at 4.47 billion servings as of last year, ranking the country at 7th
in its list.

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  Philippine have huge market demand of Noodles.
 Based on the market study conducted by market research firm Euro monitor, the instant
noodles market in the Philippines grew a compounded 10.2 percent in the last five years,
2016 to 2020, valued at $565.2 million in 2016.
 Huge opportunities to start up a noodles export business in Philippines.

Source: (Malaya business insight)8

Part: B

2. PESTEL Analysis:

PESTEL analysis of the Philippines

This detailed PESTEL analysis of the Philippines aims to examine the political, economic,
social, technological, environmental, and legal factors that shape the Philippines today. The
Philippines is officially known as the Republic of the Philippines. It is a country of more than
7,641 Islands.

2.1 Political factors affecting the Philippines:

Government system: The country is a democracy, led by a directly elected president who serves
as both the head of state and the head of government. The president heads the executive branch,
and has significant political powers. Presidents are limited to a single six-year term of office. The
Philippines has a presidential system with the president being the head of state, the head of
government, and the commander-in-chief of the armed forces. It is a unitary state; however,
the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) is mostly free from the
control of the national government.

Political stability and absence of

violence/terrorism: It measures
perceptions of the likelihood of
political instability and/or politically-

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motivated violence, including terrorism. Estimate gives the country's score on the aggregate
indicator, in units of a standard normal distribution, i.e. ranging from approximately -2.5 to 2.5.
The political environment is relatively stable; however, nepotism, controversial anti-drugs
campaigns, and extra-judicial killings of suspects in the Philippines have drawn a lot of local and
international criticisms. Though the government has launched wars, corruption still remains a
major problem in the country

Source: (Trading economics)9

2.2 Economic factors affecting the Philippines

The Philippines' economy is considered as one of the most dynamic economies in East Asia and
the Pacific. The Philippines is the 38th largest economy in the world. Its GDP in 2018 was worth
$330.91 billion. The industries that dominate the country’s economy are travel and tourism,
agriculture, manufacturing, mining and mineral processing, pharmaceuticals, shipbuilding, and
electronics. The Philippines’ top trading partners are China, Hong Kong, the United States,
Japan, Germany, South Korea, and Thailand. The Philippines is a very good country to invest
because of the low business set-up cost, strategic location, and the availability of a top-notch
workforce. Foreign direct investment (FDI) to the country was worth $8.7 billion in 2017;
however, it fell to $6.46 billion in 2018 which was below the target set by the Central Bank of
Philippines (Santander, 2019). As of December 2019, corporate tax rate in the Philippines is 30%
for both resident and non-resident corporations, charged against their net income. The individual
tax rate varies from 5% to 32% depending on the income generated both in the country and
abroad.

(Trading Economics, 2019)10

A report of (IMF – World Economic Outlook Database, October 2021)

10
Source: (Mauritius Trade Easy)11

2.3 Social factors affecting the Philippines

Filipinos are generally very friendly, hospitable, helpful, and optimistic people. They are also
well-known for their positive attitude and the sense of humor. Many of them do their best and go
extra miles in making visitors feel almost like VIP’s. No wonder why many tourists visit the
country time and again. Both Filipino and English are the official languages in the Philippines;
however, about 87 dialects are spoken all over the country. Christianity is the major religion, and
Islam is in the 2nd position. As of January 2020, the population of the country is approximately
108 million. The life expectancy for men is 66 years, while 73 years for women (BBC, 2018)

An educated, highly trainable, and English-speaking work force has made it easy for foreign
companies to run their operations in the Philippines. However, the country is not without some
social challenges e.g. corruption, poverty, drug abuse, extra-judicial killings, and lack of job
opportunities to name but a few.

Source: (howandwhat.net)12

2.4 Technological factors affecting the Philippines:

Technological improvement:
The Philippines fell by seven
notches to 61st out of 64 in the
2022 edition of most
technologically advanced
countries ranking by
international
magazine (Global Finance).
The report ranks a country’s

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technological strength across four metrics: internet users as a percentage of a country’s
population; LTE users as a percentage of the population; IMD World Competitiveness
Center’s Digital Competitiveness Score; and share of a country’s research and development
spending to its economic output. Among 11 East and Southeast Asia countries included in the
report, the Philippines ranked second lowest, ahead only of Mongolia (63rd).

Source (Business World, Global Finance)13

The Philippines has made rapid progress over the years in terms of technology and innovation.
Its IT spending is projected to reach US$8.1 billion by 2023. The demand for tech products,
services, and automation across sectors is on the rise. A growing middle class and young
population and their love for tech products and services have been the key drivers behind this
growing demand. The use of smartphones and social media has permeated every socio income
class in the Philippines. Educational organizations have blended traditional learning methods
with technologies to increase the digital literacy of the average Filipino. In fact, the country has a
very tech-savvy work force that has made the operations of multinational companies easier in the
country. However, many analysts argue that the government should invest more on advanced
science, technology, engineering, and mathematics education. Source (Trading Business)14

2.5 Environmental factors affecting the Philippines:

Sustainable Environment: The Philippines was recently ranked number one for environmental
sustainability by the World Energy Council (WEC), in January 2018. This ranking is based on
the council’s World Energy Trilemma Index which ranks 125 countries on their ability to deploy
sustainable energy through three categories which are energy security, energy equity and
environmental sustainability. More than 7,640 Islands, stunning beaches, water parks, world-
class malls, hotels, emerald rice fields, crowded megacities, lurking volcanoes, and many other
attractions mesmerize tourists in the Philippines. However, the country is constantly faced with
some environmental challenges. For instance, it is prone to earthquakes, typhoons and volcanic
eruptions. It loses around $6.4 billion each year due to natural disasters and 20 typhoons on
average hit it every year. Other environmental challenges to mention are air and water pollution,
illegal mining, deforestation, coastal erosion, and loss of biodiversity.

Source (The Asean post)15

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2.6 Legal factors affecting the Philippines

The last factor to discuss in the PESTEL analysis of the Philippines is the legal environment. The
constitution of 1987 is the main source of law. The Labor Code of the Philippines, enacted in
1974 governs the employment practices and labor relations in the country. It provides guidance
on employment issues such as hiring, firing, holiday pay, retirement pay, working hours,
overtime, collective bargaining etc.

Consumer protection low: The Philippine government adopted RA 7394 (Consumer Act of the
Philippines of 1991) as the legal basis for consumer protection in the country. The law embodies
the state policy on the protection of consumers and establishes standards of conduct for business
and industry in the country.

Source: (Centerforfinancialinclusion)16

Anti-trust law: The Philippine Competition Act, officially designated as Republic Act No.
10667, is a Philippine law that was signed into law by President Benigno Aquino III on July 21,
2015 and established the quasi-judicial Philippine Competition Commission to enforce the
act. The act is intended to ensure efficient and fair market competition among businesses
engaged in trade, industry, and all commercial economic activities. It prohibits anti-competitive
agreements, abuses of dominant positions, and mergers and acquisitions that limit, prevent, and
restrict competition.

Source: (Wikipedia)17

3. Opportunity and Threats to business in Philippines:

Stable open market economy. Skilled and well-educated human resources. Reliable infrastructure
support. Strategic location in Asia Hospitable and int'l standard lifestyle and Attractive

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investment incentives. Extreme weather events. Natural catastrophes. Failure of critical
infrastructure. Energy price shock. Failure of national governance. Failure of urban planning.
Unemployment or underemployment.

Opportunity Threats

Philippines is the 7th country to consume of Extreme weather event

noodles an noodles food.

As a 7th country of consuming noodles the As the export by shipping the natural disaster
be a threats.
market demand is so high

The opportunity of expansion is also so high Unemployment or underemployment

for the stability of political issue.

In economic environment the Philippines is a Failure of climate-change mitigation and

adaptation
very good country to invest because of the
low business set-up cost, strategic location,
and the availability of a top-notch workforce.

4. Entry Mode:

4.1 Export:

Bangladesh Exports to Philippines was US$35.81 Million during 2015, according to the United
Nations COMTRADE database on international trade. Bangladesh Exports to Philippines - data,
historical chart and statistics - was last updated on September of 2022.

14
 Source: (TRADING
ECONOMICS)17

4.2 Philippines wants more Bangladeshi products: Philippines is interested in

importing more products from Bangladesh. On the other hand, they want Bangladeshi
businessmen to invest in that country. A 15-member delegation from the Philippine agriculture
and vegetables, tea, beverages, pharmaceuticals, cosmetics and packaging machinery sectors
participated in the seminar organized in collaboration with the Bangladesh-Philippines Chamber
of Commerce and Industry (BPCCI). The delegation is visiting Dhaka under the leadership of
Agnes Perpechua Legaspi, assistant director of the Philippine Department of Trade and
Industry. DCCI has informed this information in a notification. Dhaka Chamber President
Osama Taseer said that bilateral trade between Bangladesh and the Philippines is very promising.
In the financial year 2017-18, the trade volume between the two countries was 650 million US
dollars, which is about 550 million tk. in Bangladeshi currency. He gave hopeful encouragement
to Bangladeshi businessmen to export agricultural and food production, packaging food products
of Bangladesh Source: (Prothom Alo Published:03 September 2019)19

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 Part C:

5. Recommendation:
1.The entry strategies they are following like exporting licensing, franchising, through different
distribution channel needs to be monitored well day by day

2. They can use joint venture strategy to enter into so that they can develop long term success in
Philippines market.

3.The PRAN Company has to create creative advertisements that will create more attention to
target the Philippines customer.

The company can participate in trade fair in different places where consumers are convent rated.
These activities will help to create image and consumer awareness'. The price standard should be
fixed all through the country in whichever area of Philippines they are operating. Should offer
customers products at an affordable price.

4.PRAN-RFL needs to take part in the Corporate Social Responsibility (CSR) activities into
action to create a good image in Philippines market.

5.The participants in the international business is not an easy task so they need to be updated to
stay in Philippines market and compete with their product.

6. Conclusion:
In the study, there have much important information and many scope for doing business in
Philippines by exporting. We can see that in PESTEL analysis the political environment is very
stable and economic environment also growing and their standard of living is better. And my
product as a noodles the probability is to high too doing business in Philippine. Because the
Philippine people are very much like the noodles. As a report World Instant Noodles Association
16
meanwhile has put the Philippines’ instant noodles demand at 4.47 billion servings as of last
year, ranking the country at 7th in its list. The Philippines is a very good country to invest
because of the low business set-up cost, strategic location, and the availability of a top-notch
workforce. So the opportunity is to high to expand business in Philippines. And the export
opportunity is also very high, already in 2015 Bangladesh export in Philippine 35.80 million U.S.
dollar and after that the huge amount of export is growing day by day and its reach in 2020 – 650
million U.S dollar. So the export and expansion of our business in Philippine is much high
possibilities and we have to grab this possibilities, and this opportunity is increasing day by day.

7. Reference:

1. https://www.pranfoods.net/about

2. https://www.coursehero.com/file/p6ucllgd/SWOT-Analysis-of-the-Organization-16-CHAPTER-6-SWOT-analysis-of-
PRAN-group-are/

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3. https://www.pranfoods.net/brands/snacks/noodles-pasta/mr-noodles

4. https://www.google.nl/url?sa=t&source=web&rct=j&url=https://www.tbsnews.net/economy/bazaar/noodles-market-
growing-rapidly-amid-urbanisation-pandemic-282208&ved=2ahUKEwjVzN-
P9o_6AhXpxDgGHQm7DtgQFnoECAoQAQ&usg=AOvVaw1H2h5vR68al-zZ2kqXbRa3

5.https://www.google.nl/url?sa=t&source=web&rct=j&url=https://en.m.wikipedia.org/wiki/
Philippines&ved=2ahUKEwizwLXdgZH6AhU9RmwGHUFxC0YQFnoECBMQAQ&usg=AOvVaw103WQ4Fs733goSuk
TgBf9Z

6. https://www.google.nl/url?sa=t&source=web&rct=j&url=https://www.pinterest.com/pin/275915914643290751/
&ved=2ahUKEwiJw-yUq436AhXdwnMBHQxFAe8QFnoECAsQBQ&usg=AOvVaw0p9ztB_MZ3cHvEQvYittjb

7. https://www.volza.com/p/noodles/import/import-in-philippines/

9. https://tradingeconomics.com/philippines/political-stability-and-absence-of-violence-terrorism-estimate-wb-data.html

10. https://tradingeconomics.com/philippines/political-stability-and-absence-of-violence-terrorism-estimate-wb-data.html

11. https://www.mauritiustrade.mu/en/market-survey/philippines/political-outline

12. https://www.google.nl/url?sa=t&source=web&rct=j&url=https://howandwhat.net/pestel-analysis-philippines/
&ved=2ahUKEwi-t_r3x436AhWE1zgGHYVQBIoQFnoECAsQAQ&usg=AOvVaw02D8J6nR1F8bdTrsUVMt88

13. https://www.google.nl/amp/s/www.bworldonline.com/infographics/2022/05/30/451342/philippines-lags-in-national-
technological-strength-list/%3famp

15. https://theaseanpost.com/article/philippines-tops-energy-ranking-environmental-sustainability

16 https://www.google.nl/url?sa=t&source=web&rct=j&url=https://www.centerforfinancialinclusion.org/client-
protection-in-the-philippines%23:~:text%3DThe%2520Philippine%2520government%2520adopted%2520RA,and
%2520industry%2520in%2520the
%2520country.&ved=2ahUKEwis8N6VpK36AhX4UGwGHae2BmAQFnoECBEQBQ&usg=AOvVaw0gERt601eJ_RLg-
ByJj6Na

17. https://en.m.wikipedia.org/wiki/Philippine_Competition_Act

18. https://www.google.nl/url?sa=t&source=web&rct=j&url=https://tradingeconomics.com/bangladesh/exports/
philippines&ved=2ahUKEwjO_97csI36AhX603MBHRNFAvsQFnoECAsQAQ&usg=AOvVaw05XvmUIF-
3q1FemSy2qkYK

19. https://www.google.nl/url?sa=t&source=web&rct=j&url=https://www.prothomalo.com/business/
%25E0%25A6%2586%25E0%25A6%25B0%25E0%25A6%2593-%25E0%25A6%25AC%25E0%25A6%25BE
%25E0%25A6%2582%25E0%25A6%25B2%25E0%25A6%25BE
%25E0%25A6%25A6%25E0%25A7%2587%25E0%25A6%25B6%25E0%25A6%25BF-%25E0%25A6%25AA
%25E0%25A6%25A3%25E0%25A7%258D%25E0%25A6%25AF-%25E0%25A6%259A%25E0%25A6%25BE
%25E0%25A7%259F-%25E0%25A6%25AB%25E0%25A6%25BF%25E0%25A6%25B2%25E0%25A6%25BF
%25E0%25A6%25AA%25E0%25A6%25BE

18
%25E0%25A6%2587%25E0%25A6%25A8&ved=2ahUKEwif8a2mvY36AhUq3jgGHVDkDUwQu7wFegQIExAE&usg=
AOvVaw0nvOgQAXa4I4FfmzvA3JQ1

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