Subject: Strategic Management

Code: MGT 4802

Assignment on BCG Matrix of PRAN

and Proposed Investment Plan

Submitted By
Sajeed Mahmud Mahee
ID: B1506045

Submitted To
Major General (Retired) Prof.
Alauddin M A Wadud, BP

Date of Submission: July 29, 2018

 BCG Matrix of PRAN and Proposed Investment Plan
To construct the BCG matrix, I have studied different reports on performance of different products of
PRAN and their respective industries’ market growth. I also visited 3 shops for collecting primary data:

 One Stop Supermarket (61 Greenroad, Dhaka 1205): Customers are higher and middle class people
 Asha Bazar Departmental Store (50/A Greenroad, Dhaka 1205): Customers are higher and middle
class people
 Manoshi General Store (32 Greenroad, Dhaka 1205): Customers are middle and lower class people

BCG Matrix of PRAN

Relative Market Share
High Low
Growth
Market

High Stars: PRAN Drinking Water Question Marks: Robust Malted Food Drink
Rate

Low Cash Cows: PRAN Mango Bar Dogs: PRAN Magic Cup

 Dogs: PRAN Magic Cup

Low Market Share: Its market share is very low in edible gel products market. Among my visited 3
shops, only Manoshi General Store sells it.

Low Market Growth: BSTI has found harmful ingredients in edible gels from many brands. Besides,
lots of substitutes are available. So, sales of these are declining. The customers of this products are poor
children according to Manoshi General Store, only seller of edible gels among visited shops.

 Cash Cows: PRAN Mango Bar

High Market Share: It is the most common packaged mango bar in Bangladesh with almost 60% market
share. This success is mainly due to first mover advantage. Except Manoshi General Store, other two
shops sell it and they don’t sell mango bar of other brands as customers only ask for the one from PRAN.

Low Market Growth: Many substitute snacks have been introduced since packaged mango bar’s arrival.
On the other hand, all the mango bars of different brands provide almost the same taste. None of them
have come up with new flavor. So mango bar market is declining and the stores also agree on this issue.

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 Stars: PRAN Drinking Water
High Market Share: It has around 30% market share in bottled water industry. I got similar opinion from
my visited shops. After MUM and Aquafina, it is their highest selling drinking water. It is due to its easy
availability and brand value.

High Market Growth: Bottled drinking water’s current growth rate is around 25% due to inadequate
source of pure water. Its usage is increasing in hospital, educational institutions, events, hotels etc. The
salesmen of the visited shops also agreed on the matter of increasing sales of bottled water as a whole.

 Question Marks: Robust Malted Food Drink

Low Market Share: Robust has only 2 % market share in health food drink market. Among my visited
shops, only One Stop Supermarket sells Robust and the product’s sales are not satisfactory. It’s because
strong competitors like Horlicks, Complan, Bournvita have strong brand value and offer wide variety of
products for different types of customers. But Robust is a new product with no variety of option to offer.

High Market Growth: Health awareness has become new hype to customers. While previously health
food drink was considered as expensive product, now it is being consumed by middle and even lower
middle class people. Its current growth rate is 30% which is consistent with data from the visited stores.

Proposed Investment Plan

 Divest PRAN Magic Cup (Dogs): It is a cash trap because of the money tied up in a business that
has little potential. So I will get rid of this product.
 Harvest PRAN Mango Bar (Cash Cows): Though its respective market is declining, it generates a
stable cash flow which can be used for many purposes of the company. So, I will reduce investment
in it and try to generate maximum cash flow from the product to increase overall profitability.
 Hold PRAN Drinking Water (Stars): It owns good market share in rapidly expanding bottled water
market. Even if its market share remains stable, it will provide the opportunity to make more money.
So, I won’t invest more in this product but I will hold it in the same quadrant to maintain status quo.
 Divest Robust Malted Food Drink (Question Marks): It is quite impossible for Robust to own a
better market share. Though it is in high growth market, it lack the potential to turn into star. Because
it is relatively product but its market is dominated by big and vastly experienced players. So I will
divest Robust and identify prospective markets suitable for me to enter and strategize accordingly.

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