A Report on the Marketing Strategy and SWOT Analysis for a

New Product by PRAN Food Limited

Submitted To
Sahelee Parveen Dipa
Associate Professor
Department of English
Shahjalal University of Science and Technology, Sylhet.

Submitted By
Md Tasnimul Haque
Reg. No: 2021731040
1st Year 2nd Semester
Department of Business Administration
Shahjalal University of Science and Technology, Sylhet.

Date of Submission: 26th September 2023

Table of Content

2|Page
 1. Introduction
1.1 Background of the Report:
The food and beverage industry is a noteworthy segment in the country's industrial area.
Thanks to its immense contributions to job creation and providing economic value to the
country. PRAN-RFL Group, the country's biggest name in the business arena holds the
largest food and Beverage Company in Bangladesh “PRAN Food Limited” admired by
millions of people globally. The journey of PRAN started in 1981 under the visionary
leadership of its founder, Mr. Amjad Khan Chowdhury. The primary objective of PRAN is to
generate employment and earn dignity and self-respect for their compatriots through
profitable enterprises. PRAN has devoted itself to the betterment of society and employment
and earned dignity & and self-respect for their compatriots through profitable enterprises and
continuous product and service expansion. In the local global market, PRAN truly strives to
exceed itself every year. Currently, PRAN products are available in 145 countries and
thriving every day in those markets, including Asian, African, and European regions. In the
local Market, More than 100 brands and products are in place and new products are
continuously in the process of launching. This report presents an analysis and marketing plan
for a new product introduction by PRAN Food Company into the market. The report outlines
essential marketing strategies and tactics aimed at successfully launching this new product
considering the companies market position by SWOT analysis

1.2 The Objective of the Report:

The primary objective of this report is to formulate an effective marketing strategy for the
introduction of PRAN Food Company's new product into the market under one of its brand
PRAN dairy products.

 To provide insights into the launch process and the recommended marketing approach for
this new product.

 To find out the challenges of marketing activities that can impact the product's growth
and capture the market share among its potential competitor brands.

1.3 Scope of the Study:

4|Page
It is important to note that this report does not comprehensively cover all aspects related to
the study. It strives to encompass as much relevant information as possible within its scope.

1.4 Methodology of the Report:

Two distinct categories of sources provided the data for this study and its research. The
information is as follows:
1.3.1 Primary Sources:
 Communication and discussion with employees of PRAN Foods Ltd.
1.3.2 Secondary Sources:
 The company website of PRAN Food Limited.
 Annual Reports of PRAN-RFL Group and PRAN Food Ltd.
 Articles, Newspaper and Journals.

1.4 Limitations of the Study:

Several limitations the company encountered during the preparation of this report. These
include the constraint of time available for completion, limitations in accessing sufficient
information, and the limited data provided by the company during the survey.

2. Literature Review
2.1 Marketing:
An organized collection of activities used to guide the flow of products and services from
producers to consumers is referred to as "marketing" (Kotler, 2018).

Marketing is the process by which companies engage with customer, build strong customer
relationships and create customer value to capture value from customers in return.(Kotler
2018). Marketing aims to deliver standalone value for prospects and consumers through
content, with the long-term goal of demonstrating product value, strengthening brand loyalty,
and ultimately increasing sales.

2.2 Importance of Marketing and Research:

The importance of marketing for your business is that it makes the customers aware of your
products or services, engages them, and helps them make the buying decision. Furthermore, a
marketing plan, a part of your business plan helps in creating and maintaining demand,
relevance, reputation, competition, etc.

'Marketing' is the one word that can provide the companies to each of these queries. The
benefit of marketing for your company is that it engages consumers and helps them decide
5|Page
whether to purchase your goods or services. A marketing strategy, which is a component of
your business plan, also aids in establishing and sustaining demand, relevance, reputation,
competition, etc. It may therefore be a little challenging to manage and maintain a successful
business in today's world without understanding the importance of marketing, given the
important role that marketing plays in making your firm a tremendous success.

3. Company and Existing Product Review

3.1 Company Background:
PRAN Food Company is affiliated with the Agricultural Marketing Co Ltd and initially
focused on the production of juices and packaging foods. More recently, it has diversified its
product line to include dairy milk products.

Corporate Office:
PRAN Dairy Ltd.
12 R.K Mission Road, Dhaka.
The company website: www.pranfoods.net
Phone: 880-2-9563126
Factory Location: Bagerpara, Palash, Narashingdi.

3.2 Existing Product Review:

6|Page
PRAN Dairy Limited currently manufactures and markets a range of juices and packaging
products. Additionally, it produces dairy products, with most of PRAN's offerings designed
for immediate consumption. The key products of interest in this report are the frozen and
instantly usable juices, including PRAN mango juice, PRAN lichi drink, PRAN fruity, and
others.

PRAN Food Company has also introduced pasteurized liquid milk in various packet sizes
(250mg, 500mg, and 1 liter) to the market. Notably, the company has developed a unique
milk collection system that involves daily visits to thousands of farmers across the country,
ensuring the availability of pure and fresh milk with high nutritional value.

3.3 New Product Review:

PRAN Food Company, renowned for its juice and packaging food products, is poised to
launch a new dairy product alongside its existing offerings. The new product is branded as
"PRAN Chocolate Milk" and is part of the following product line:

a. PRAN Strawberry Chocolate Milk

b. PRAN Vanilla Chocolate Milk

PRAN Strawberry Chocolate Milk will be one of the exciting additions to the company's
diverse product portfolio. Further Details are as follows-

Name of the Product: PRAN Chocolate Milk.

Product Line:
a. PRAN Strawberry Milk
b. PRAN Vanilla Milk
Ingredients:

Particulars % per 100ml (minimum)

Milk Fat 3.5%
Protein 3.4%
Carbohydrates 4.7%
Minerals 0.7%
Chocolate (Flavor) 4%
Energy 60%

7|Page
Total 100%
Chart: Ingredients combination

Quantity:

200ml and 500ml Packs for Chocolate, Strawberry, and Vanilla Milk.

Common features: The back side of the packet will show all the features of the product.

Collection of milk:
The milk collection system of PRAN Dairy Ltd. is unique and best. The company workers
are reaching to the thousands of farmers in the country every day to collect fresh milk so that
the consumers get pure and fresh milk full of nutrition. PRAN Dairy Ltd. is going to establish
a dairy farm very soon to ensure the production of fresh milk.
Type of the product:
Frozen food that is instantly usable.
Value Proposition for PRAN Chocolate:
Full cream HALAL milk with Strawberry and Vanilla flavored and colored.
Process:
PRAN Milk is processed at Ultra High Temperature. It needs no boiling before use, and no
refrigeration till open.
Durability:
Thus, it is processed by Ultra High Temperature and Tetra Fino pack, will be usable up to
three months from the manufacturing date.
Packaging:
Tetra Fino packaging, a packet from Tetra pack.
Price of the product:
Same price for Strawberry and Vanilla Chocolate Milk as mentioned in bellow:
200 ml – Tk. 15 and

500 ml – Tk. 35

4. Current Market Situation Analysis

4.1 Market Situation Analysis
Diary industries are mainly developed and expand its business in the cities areas. In diary
sector, The PRAN Company has many competitors in the current market. If the company
analyze the market share, the company find the following scenarios:

8|Page
4.2 Product Situation Analysis
The current product situation has been shown in the chart. Three year’s financial data are included in
the chart.

Particulars Years
2020 2021 2022
Industry Sales (in Units) 250 ml 30,00,000 32,00,000 35,00,000
500 ml 10,00,000 11,00,000 15,00,000
Market Share (%) 250 ml 12% 12.9% 15%
500 ml
Average Cost (Taka/Unit) 250 ml 12 14 15
500 ml 22 25 26
Variable Cost Per Unit 250 ml 6 8 10
(tk) 500 ml 13 15 17
Contribution Margin 250ml 3-4 7.5 8.8
Average 500 ml
Sales revenue 250ml 5,80,00,000 7,23,00,000 9,15,00,000
500 ml
Net C.M (Amount) 250ml 3,00,00,000 3,44,00,000 4,00,00,000
500 ml
Marketing Expense(Tk) 250ml 1,80,50,000 2,05,00,000 2,65,00,000
500 ml
Net operating income 250ml 1,19,50,000 1,39,00,000 1,35,00,000
(Tk) 500 ml

4.3 Competitive Situation Analysis

Competitor’s products available in the current market are as Milk Vita, Arong, R.D and Farm
Fresh. Individual descriptions of these products are given in below:
Milk Vita
Milk Vita is one of the most famous and reputed Milk-producing dairy companies in our
country. It has a strong brand image. Milk Vita has normal dairy milk in 2500ml, 500ml and
1 liter pack. It has also Chocolate milk in 200ml and 500ml packs. Milk Vita is the market
leader in dairy industry.
Arong
Arong is the sister firm of BRAC. It also has a reputation among the consumers. Arong is
providing its products through various distribution outlets, and selling Arong milk in their
super shops. Arong has also Chocolate milk with normal dairy milk in the market.
R.D
R.D. is marketing normal dairy milk with various types of fruit milk in the current market.
Farm Fresh
Farm Fresh dairy company is producing milk in Tetra pack instant drinking.

4.4 Distribution Situation Analysis

All producers of packaged milk utilize their unique transportation facilities to deliver the
product to retailers, supershops, and even grocery stores. Each company employs rapid

9|Page
transportation due to the product’s limited shelf life. PRAN Company, a well known juice
producer, has established a swift distribution channel. As a result, PRAN Company is
capitalizing on the finest opportunities for distributing dairy products, and consumers are
reaping the benefits. Generally, people above the upper-middle class tend to purchase from
super shops, while those below the middle class typically buy from retailers and grocery
stores. Super shops account for 30%, retailers 20%, and grocery stores 50% of distribution
outlets, as depicted in the chart:

Particulars Percentage

Super Shops 30%

Retailers 20%

Grocery Shops 50%

4.5 Macro Environment Situation Analysis

This section of the report describes the broad macro-environment factors that include-
demographic, economic, technological, political-legal, socio-cultural factors that can
affect the future of the product line. Before entering into the market, marketing
manager must have to consider for getting benefit over those factors.

5. SWOT Analysis
strengths, the Marketing manager is responsible to conduct a thorough analysis of
the product’s company's strength, weaknesses, opportunities, and threats (SWOT)
is essential before entering the market. This analysis guides decision-making,
indicating what actions should be taken or avoided, and even whether the product
should be launched.

5.1 Opportunities and Threats Analysis:

The marketing team has identified the primary opportunities and threats facing the
business.
5.1.1 Opportunities:
The main opportunities for PRAN Food Company’s product line include:
• Market research indicates a significant consumer interest in a variety of milk
products.
• Most retailers and supermarkets are willing to stock PRAN Company’s products.
5.1.2 Threats:

10 | P a g e
Every company faces threats when entering a new market or even as an existing
entity. The threats facing PRAN Food Company include:
• PRAN has numerous competitors in the dairy products market, including strong
competition from Arong in producing Chocolate Milk.
• The current political instability may impact new product launch activities.
• Rising commodity prices pose a threat to new products entering the market
• The Bangladesh government may implement stringent product safety laws,
necessitating product redesign.
5.2 Strengths and Weakness Analysis:
Before launching a product into the market, a product manager must identify its
strengths and the weaknesses.
5.2.1 Strengths:
PRAN Food Company has several strengths:
• PRAN Company enjoys excellent brand awareness and a high-quality image as a
producer of juice and packaged products.
• Dealers and sales personnel selling PRAN’s products are knowledgeable and the
companyll-trained.
• PRAN Company has an efficient service network and strong distribution channel
to deliver products to consumers quickly.
• PRAN is introducing its Chocolate Milk with two popular flavors (Strawberry &
Vanilla).
5.2.2 Weaknesses:
PRAN Food Company also has some the weakness concerning “PRAN Chocolate
Milk”:
• Compared with Arong and Milk Vita, PRAN’s line is not positioned in the dairy
product market.
• The current advertising campaign for the dairy product lacks creativity and
excitement.
• The quality of the core product (Milk) is similar to that of competitors’ products.
• The budget for advertising and promotion is insufficient than its competitors.

6. Financial & Marketing Objective

6.1 Financial Objective

PRAN management wants each business unit to deliver a good financial performance. The
product manager sets the following financial objectives:
• Earn an annual rate of return on investment over the next 5 years of 3 percent after taxes
• Produce net profits of Tk.50,00,000 in 2024.

6.2 Marketing Objectives

11 | P a g e
In this section of the plan, marketing objectives must convert the financial objectives into
marketing objectives. The company want to earn Tk.50,00,000 profits and its target margin is
10 percent on sales, then it must set a goal of Tk.5,00,00,000 of sales revenue. The company
set an average price tk.15 for 200ml and Tk.35 for 500ml. The company expects the total
sales of Chocolate Milk are 20,00,000 units of 200ml and 5,72,000 units of 500ml pack that
include 6,86,000 liters of prepared milk. For achieving this market share, the will have to set
certain goals for consumer awareness, distribution coverage, and so on.

7.Marketing Strategy for “PRAN Chocolate Milk”

7.1 Market Segment
The market has been segmented based on geographic and demographic factors. People who
live in the Dhaka city, aged 6 to 25 years and high income generated, do not prefer normal
milk are our primary segmentation for “PRAN Chocolate Milk”. It is an effective
segmentation; because it is accessible, substantial, and actionable.

7.2 Target Market:

In evaluating different market segments, the company set our target market as 6 to 25 years
old people who live in Dhaka city considering the selective specialization.

7.3 Market Positioning:

The product strategy is also based on quality. In this case, the company have positioned our
product as full cream HALAL Proved milk with Strawberry and Vanilla flavor that can
differentiate it from the competitors’ products.

7.4 Product line:

a. PRAN Strawberry Chocolate Milk
b. PRAN Vanilla Chocolate Milk

7.5 Quantity:
The company have planned to launch Chocolate Milk in 200ml and 500ml pack for both
Strawberry and Vanilla Chocolate Milk.

7.6 Price of the product:

The company set the price for our valued consumers for 200 ml @ tk.15 and 500 ml @ tk.
35.

12 | P a g e
7.7 Distribution Outlets:
To distribute the new product to consumers, the company will emphasize on Retail stores and
super shops, and even the grocery shops as the companyll which are already involved in
selling our existing products and also allow new one in which frozen foods storage
equipments are available.

7.8 Service:
PRAN Chocolate Milk is a packaging and instantly useable frozen food; the company will
provide our product in time to the sellers so that consumer can get it timely. The company
will open complain box in where consumer will put their complains and suggestions that will
be helpful to the company for further improvement of the product.

7.9 Sales Promotion:

Sales promotion consists of short term incentives to encourage the purchase or the sales of a
product or service. Now, Sales promotion offers reason to buy product or service. The main
objective of this Sales promotion is to increase short term sales or help to build long term
market share. The company will use this Sales promotion strategy in the following cases:
1. When inside the company, product manager faces greater pressures to increase the current
sales, and Sales promotion is viethe companyd as an effective short term sales tool.
2. When externally, the company will face more competition, the company will use Sales
promotion to differentiate our offer from the competitors.
3. When advertising efficiency will decline because of rising cost, media clutter, and legal
restraints.

7.9.1 Sales promotion tools

The company will use the best one among the following Sales promotion tools.
7.9.1.1 Coupon
A coupon is a certificate that gives the buyers a saving when they purchase the specified
product.
7.9.1.2 Rebates
Cash refund offers or rebates are like coupons except that the price reduction occurs after the
purchase. Consumer will show the proof of purchase and get the refund part of the purchase
price.
7.9.1.3 Price pack
Price packs offer consumers saving off the regular price of a product. The company will mark

13 | P a g e
the reduced prices directly on the label or package. Price packs can be single packages sold at
a reduced price such as three for the price of two.

7.10 Advertising:
The company has taken some specific strategies for advertising.
7.10.1 Advertising objectives
An advertising objective is a specific communication task to be accomplished with a specific
target audience during a specific period. Firstly, the company will use advertising to achieve
three aims, such as inform, persuade, and remind.
7.10.1.1 Informative advertising
Informative advertising is used heavily when introducing a new product category. In this
case, the objective is to build primary demand and create awareness among the consumers
about the product. The company will use Informative advertising at the initial time when they
run their new business.
7.10.1.2 Persuasive advertising
Persuasive advertising becomes more important as competition increases. Here, the
company’s objective is to build the selective demand. They will use this Persuasive
advertising at a time when face heavy intensity of competition in the market.
7.10.1.3 Reminder advertising
Reminder advertising is important for the mature company. The company will use it when
our product will be matured.
7.10.2 Advertising message
No matter how big the budget is, advertising can succeed only if commercials gain attention
and communicate with the company. Good advertising messages are especially important in
today’s costly and cluttered advertising environment. The purpose of advertising is to get
consumers to think about or react to the product or the company in a certain way. To attract
the consumers the company will focus on the low price of our product rather than the
competitors, attractive features that is full cream and strawberry and Vanilla flavor. These
offers will give health-conscious consumers physical and financial benefits.

7.10.3 Advertising media

Thus our business will be limited to Dhaka city first; the company will use newspapers;
satellite TVs and billboards as advertising media for newly introduced products.

14 | P a g e
7.11 Research and Development:
The research & and development team is involved in continuous research for developing the
product quality, packaging style, and other features as the consumers demand. The marketer’s
hawk eye on the consumer’s response helps the researcher to develop the product. “PRAN
Chocolate Milk” with Strawberry and Vanilla flavor is a successful creation of that
department.

7.12 Marketing Research:

Due to the market segmentation that the PRAN Food Company has established, will require
constant updates in terms of the potential size, distributions, and purchasing patterns of the
quality-conscious executive's markets. The company will evaluate the performance based on
the sales units, and send a survey team to measure consumer satisfaction.

8. Conclusion and Recommendation

The report intended to explore the product launching marketing strategy and SWOT
analysis of a product of the PRAN Food Company’s product line that is newly
introduced into the market. For that product, the report illustrated a marketing plan
including essential marketing strategies. There were many limitations in preparing this
report. The time to complete the report is too short. Information is not available
enough on first hands and Internet, and the Company did not provide enough
information at the time of the survey.
Diary industries are mainly developed and expand their business in the cities areas. In
the dairy sector, The PRAN Company has many competitors in the current market.
PRAN management wants each business unit to deliver a good financial performance.

15 | P a g e