Shana EnamID# 052-214-030

Company Overview

• PRAN stands for Programme for Rural Advancement Nationally.

• In Bangla "Progoti Rupayone Agrani Noboddom".

• PRAN has started their operation since 1980.

• They are the largest processors of fruits & vegetables in Bangladesh.

Products

JuiceDrinks

BeveragesCulinarySnacks

Confectionary Dairy

Diversification Growth

Integrative Growth

Intensive Growth

Three types of Growth Opportunities

Intensive Growth Strategy :

Product-Market Expansion Grid

Market Penetration

Strategy

Product Development

Strategy

Market Development

Strategy

Diversification Strategy

Current Market

New Market

Current product New product

Ferdous Ahamed Bhuyan ID# 052-080-030

•Advertisement•Encourage new customers •Increase Market Share•Attract new customer•Competitors' customers

Intensive Growth

•Target new market •New potential group•Encourage new customers•Add distributional channel•New location

Product Development Strategy

Intensive Growth

•New market with new product•New customer•Advertisement•campaign

They can import

Md. Sabbir AhmmedID# 052-289-530

Integrative Growth

• Sales & profit increased through

▫ Backward

▫ Forward

▫ Horizontal integration

Backward

Forward

Horizontal

Backward integration

• Backward integration achieved through

▫ Acquire one or more supplier

To gain more control on cost

To ensure quality product

For PRAN it can be package industry, plastic material producers and other raw materials supplier.

Forward integration

• Forward integration through

▫ Acquire whole sellers and retailers

To gain more profitability

To gain more control on market

To obtain a solid distribution channel.

Horizontal integration

• Horizontal integration through

▫ Acquire on or more competitors because Acquisition is quicker than internal expansion

To gain competitive advantage

To Achieve synergic effect

Operative - More efficient use of capital, Increased specialization

of labor and capital, Spreading the overhead etc.

Directive - when the acquiring firm believe that it can manage the

target firm better and could increase its value

Horizontal integration (cont..)

• By working together companies can combining their financial, production, or marketing resources

• For PRAN horizontal integration can be effective

▫ Acquiring competitor like Acme

▫ Doing strategic alliance with Nestle

Pran Group

Competitor

1

Competitor

4

Competitor

3

Competitor

2

Ataul Kaium ChowdhuryID# 052-214-030

Diversification Growth

There are three types of diversification:

The Way PRAN Can Diversify it’s Products Concentric Strategy:

Sugary, Orange-flavored, non-carbonated soft drink( With Fruit nutrition) like Tang.

Horizontal Strategy: By Developing a new product line of “Ice Cream”

Conglomerate Strategy:- By developing a totally new product line concept of

Organic food (Vegetables, Fruits) and Introducing “PRAN Super Store” for Organic Food.

Advantages: PRAN can Achieve Through Diversification

Concentric Strategy: Orange Powder Drink• Technological similarity

Horizontal Strategy: Ice Creamo Row material Support

Conglomerate Strategy: Organic Food• Existing channels of supply.

• New Marketing effort should be introduced.

• Launch in same economic environment.

• New skills and techniques are required.

• Expansion of human resources and financial resources are required.

The Area Of concentration