INTERNAL

ENVIRONMENTAL
ANALYSIS OF FROOTO
 University of Dhaka
Department of International Business
Course Name: International Strategic Management (EIB-516)
Session: Fall-19

Term Paper on
Internal Environmental Analysis of Frooto

Submitted to-
Dr. Chowdhury Saima Ferdous
Professor
Department of International Business
Faculty of Business Studies

Submitted by

Oliur Rahman Pritom

801825040

Date of Submission
05-12-2019

Internal Environmental Analysis of Frooto 1

 LETTER OF TRANSMITTAL

Date: 05-12-2019

To

Dr. Chowdhur Saima Ferdous

Professor

Department of International Business

University Of Dhaka

Subject: Submission of Term paper on “Internal Environment Analysis of Pran Frooto”.

Respected Faculty,

This is my great pleasure to have the opportunity to submit report on the “Internal
Environment Analysis of Pran Frooto” as part of my course studies. The paper is prepared
based on visiting company, published reports, websites and other related documents and the
documents collected from library. Through my sincerity I have tried to uptake all the related
issues in the paper within several limitations. I sincerely hope and believe that these findings
will be able to meet the requirements of the course.

Therefore I would like to place this report for your kind judgment and valuable suggestion and
consideration.

Thanking you.

Sincerely yours

Oliur Rahman Pritom

801825040

Internal Environmental Analysis of Frooto 2

Table of Contents
Introduction ............................................................................................................................................ 4
Mythology ................................................................................................................................... 4
Analytical tool ......................................................................................................................................... 5
Data collection Method .......................................................................................................................... 5
Part One
How well is the company’s present strategy working .................................................................... 7
What are the company’s competitively important resource and capabilities…………………………………….9

Is the company able to seize market opportunities and overcome external threats……………………….11

Are the company’s cost structure and customer value proposition competitive……………………………..13

Is the company competitively stronger or weaker than key rivals……………………………………………………14

What strategic issues and problems merit front-burner managerial attention……………………………….18

Part 2

Analysis of the company……………………………………………………………………………………………………………….21

BCG matrix……………………………………………………………………………………………………………………………………21

Product life cycle…………………………………………………………………………………………………………………………….23

Part 3

Brand development strategies………………………………………………………………………………………………………24

Corporate strategy………………………………………………………………………………………………………………………..25

Business level strategy………………………………………………………………………………………………………………….25

Value chain activity………………………………………………………………………………………………………………………26

SWOT…………………………………………………………………………………………………………………………………………….26

Prospect of FROOTO………………………………………………………………………………………………………………………28

Limitation of the study…………………………………………………………………………………………………………………..30

Learning Statement………………………………………………………………………………………………………………………..30

Suggestion and recommendations…………………………………………………………………………………………………31

Conclusion……………………………………………………………………………………………………………………………………..35

Internal Environmental Analysis of Frooto 3

INTRODUCTION
An internal analysis is an exploration of an organization’s competency, cost position and
competitive viability in the marketplace. Conducting an internal analysis often incorporates
measures that provide useful information about your organization’s strengths, weakness,
opportunities and threats – a SWOT analysis. The data generated by an internal analysis is
important because it helps to develop strategic planning objectives to sustain and grow of a
business. A corporate-level strategy affects a company's finances, management, human
resources, and where the products are sold. The purpose of a corporate-level strategy is to
maximize its profitability and maintain its financial success in the future. A corporate-level
strategy is utilized to help increase competitive advantage over its competitors and to continue
to offer a unique product or service to consumers. Through this study we will be aware about
the internal environmental analysis of an organization and through this we will be prepare for
business sustainability, growth and superior profitability.

Methodology
The term ‘methodology’ means an “analysis of and rationale for the particular method or
methods used. For this term paper primary approach or secondary approach is applied.
Information was collected from relevant research and development done by workshop,
marketing, sales, operation department and other divisions PRAN. The steps are:

(a) Primary Source

 Conversation with the core them member. (Assistant Manager_Abdullah.Al

Rumi).
 Importers, distributors, sales etc.

Internal Environmental Analysis of Frooto 4

(b) Secondary Source

I have elaborated different types of secondary data in my research. Sources of secondary

Information can be defined as follows:

 Annual Report
 Sales
 External Sources
 Books and Newspaper
 Website
 Internal Information

Analytical tool
To present the data I have used the following analytical tools:
 Table
 Chart
 Graph etc.

Data Collection Method

For primary data collection, survey questionnaire, observation and personal communication
method is followed:

a) Sample: Sample is the most important representative part of the population. If sample is not
correct, study will be wrong. When I have selected sample then I consider few factors, such as
age, sex, occupation, rate, income etc.

b) Sample area: I have selected sample area in Dhaka City and Pabna town. Most of the data
has collected from Dhaka at Zigatola, Zigatola kacha Bazar, Agora(Dhanmondi), Shwapno
(Dhanmondi), Meena Bazar(Dhanmondi), some local street store also from pabna.

Internal Environmental Analysis of Frooto 5

 Part-1

Through the below six questions we can have an idea about the Internal Environmental analysis
of Pran Frooto. These six questions will help us not only to determinate the strengths and
weaknesses of Pran Frooto but also help us to understand critical analysis, value creation and
corporate level strategy of the company. The Six questions are given below;

1. How well is the company’s present strategy working?

2. What are the company’s competitively important resource and capabilities?

3. Is the company able to seize market opportunities and overcome external threats to its

future well-being?

4. Are the company’s cost structure and customer value proposition competitive?

5. Is the company competitively stronger or weaker than key rivals?

6. What strategic issues and problems merit front-burner managerial attention?

Internal Environmental Analysis of Frooto 6

How well is the company’s present strategy working?
Two steps involved determining company present strategy working or not

 Determine current strategy of company

 Examine key indicators of strategic and financial performance

Key Indicators of How Well the Strategy Is Working

1. Trend in market share

2. Trend in profit margins
3. Trend in net profits, return on investment
4. Trend in sales growth
5. Credit ranking
6. Trend in stock price and stockholder value
7. Image and reputation with customers
8. Leadership role(s) -- technology, quality, etc.
9. Competitive advantages or disadvantages

In terms of Frooto

Internal Environmental Analysis of Frooto 7

 Chart Title

25

20

15

10

0
Frutika sip Shezan Frooto Mangole

Market share Profit margins

sales growth Credit ranking
stock price and stockholder value Brand image

Pran Frooto sales are growing faster than most of its competitors and also it has acquiring
some overseas customers in recent time. Pran Frooto has already achieved superior profitability
if we consider it with the other rival brands. Also the company’s overall financial strength and
credit rating are improving. In March 2019, current ratio was 1.36% and in March 2018,
current ratio was 1.28%. Again, net profit ratio was 3.53% in March 2019 instead of 3.45%
from March 2018. In 2019 gross profit ratio was 22.16% compare to 21.80% of 2018. Again
debt ratio has declined from 63.01% of March 2018 to 60.31% in March 2019. Moreover, the
equity ratio has increased up to 65.27% from 56.86% within a year ( Pran-RFL Annual Report,
March 2019).

Other indicators of how well a company's strategy is working include:

1. Whether the firm's sales are growing faster, slower or about the same pace as the
market as a whole, thus resulting in a rising, eroding or stable market share.
2. Whether the company is acquiring new customers at an attractive rate as well as
retaining existing customers.
3. Whether the firm's profit margins are increasing or decreasing and how well its
margins compare to rival firms' margins.

Internal Environmental Analysis of Frooto 8

 4. Trends in the firm's net profits and returns on investment and how these compare to
the same trends for other companies in the industry.
5. Whether the company's overall financial strength and credit rating are improving or
on the decline.
6. Whether the company can demonstrate continuous improvement in such internal
performance measures as days of inventory, employee productivity, unit cost,
defect rate, scrap rate, delivery time, and warranty costs.
7. How shareholders view the company based on trends in the company's stock price
and shareholder value, relative to stock prices of other companies in the industry.
8. The firm's image and reputation with its customers.
9. How well the company stacks up against rivals on technology, product innovation,
customer service, product quality, delivery time, price, getting newly developed
products to market quickly and other factors on which the buyers base their choice
of brands.

What are the company’s competitively important resource and

capabilities?

A strength is something a company is good at doing or an attribute that enhances its

competitiveness.

• It can take the following forms:

1. A skill or important expertise - low cost manufacturing capability, technological know-

how, defect free manufacturing.
2. Valuable physical assets - state-of-the-art plants and equipment’s, real estate location,
worldwide distribution facilities or ownership of valuable natural resources.
3. Valuable human assets - an experienced and capable workforce, talented employees in key
areas, cutting-edge knowledge and intellectual capital, collective learning embedded in the
organization or proven managerial knowhow.
Internal Environmental Analysis of Frooto 9
4. Valuable organizational assets - proven quality control systems, proprietary technology,
key patents, mineral rights, highly trained customer service representatives, sizable
amounts of cash and marketable securities, a strong balance sheet and credit rating or a
comprehensive list of customers' e-mail addresses.
5. Valuable intangible assets - well-known brand name, reputation for technological
leadership or a strong buyer loyalty and goodwill.
6. Competitive capabilities - product innovation capabilities, short development times in
bringing new products to markets, a strong dealer network, cutting-edge supply chain
management capabilities, quickness in responding to changing market conditions and
emerging opportunities, or state-of-the-art systems for doing business via the internet.
7. An achievement or attribute that puts the company in a position of market advantage - low
overall costs relative to competitors, market share leadership, a superior product, wider
product line than rivals, wide geographical coverage, well-known brand name, superior e-
commerce capabilities or exceptional customer service.
8. Competitively valuable alliances or cooperative ventures fruitful partnerships with
suppliers that reduce costs and/or enhance product quality and performance; alliances and
joint ventures that provide access to valuable technologies, competencies or geographical
markets.

Company competencies and competitive capabilities

• A company's resource strength relates to specific skills and expertise and sometimes it is the
pooled knowledge and expertise of different groups. e.g. new product innovation requires
expertise of various departments like R&D, engineering and design, cost-effective
manufacturing and market testing.

• Company competencies can range from merely a competence in performing an activity to a

core competence to a distinctive competence.

Competence

• A competence is something an organization is good at doing.

Internal Environmental Analysis of Frooto 10

• It is nearly always the product of experience.

• It originates with deliberate efforts to develop the organizational ability to do something.

• It is about selecting people with the requisite knowledge and skills, upgrading individual
abilities as needed and molding the efforts and work products of individuals into a cooperative
group effort to create organizational ability.

• As expertise builds and company gains proficiency in performing the activity consistently
well at an acceptable cost the ability evolves into a true competence and company capability.
e.g. proficiency in specific knowledge, selecting good locations for retail outlets,
merchandising and product display.

Pran Frooto has its own trade mark in the fruit juice industry of the country. The whole
production process is done by the modern technological machinery without any human touch
being interfered. Pran Frooto has easy access to good raw material and also financially well
established. Pran Frooto has their own distribution facilities and manufacturing plants
including easy access to the physical location. Pran has highly coordination and superior
control system than most of the company. Pran Frooto has always satisfy the customer with
high quality and well designed product. Pran has the ability to distribute their product whole
country wide which many companies are failed to do so.

Is the company able to seize market opportunities and overcome

external threats to its future well-being?

SWOT Analysis Is a powerful tool for sizing up a firm’s:

 Internal strengths (the basis for strategy)

 Internal weaknesses (deficient capabilities)
 Market opportunities (strategic objectives)
 External threats (strategic defenses)

Internal Environmental Analysis of Frooto 11

Internal strengths of Frooto

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).It
has huge market in Bangladesh as well as in worldwide. Pran has great distribution channels and
FROOTO is taking this advantages of pran distribution channels and networks in business
expansion and sales to achieve maximum profitability in business.

Internal weaknesses of Frooto

Large size of the business and workforce makes it difficult to manage perfectly. As a result it often
causes internal conflict between management and employers.

Market opportunities of Frooto

Frooto has great opportunities in Bangladesh as well as in international market. Because of

PRAN bran value and distribution channel it has create a great opportunity for itself in the
liquid juice market of Bangladesh and because of its great network and channels the company
in expanding its business worldwide.

External threats of Frooto

FROOTO competitive forces are very strong in the industry. There are chance of potentials
new entrants and also there have power of supplies and buyers. Rivalry among existing
companies exist too. The driving forces of the industries are strong too and they are creating
huge impact in the business. Even market rivals occupy great position in juice market scenario.
Different types of Growth Drivers of Juice Industry and they are consumers awareness,
Hygienic, lifestyle, Rising Disposable Incomes, Habitual purchase etc. Different strategic
moves are taken by rivals to compete with the market leader FROOTO.KSF,CSF must maintain
to run in long run.

Internal Environmental Analysis of Frooto 12

Pran FROOTO need to go through their strengths and weakness to identify market opportunity
and external threats. Government support cosmos 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. Pran Frooto has too much
competition from international organizations, for example Coca-Cola, PepsiCo, RC-Cola,
Virgin Cola, Rasna (India), Shezan (Pakistan) etc. It also has large size of the business and
workforce makes it troublesome to manage perfectly.

Are the company’s cost structure and customer value proposition

competitive?

Signs of A Firm’s Competitive Strength:

 Its prices and costs are in line with rivals.

 Its customer-value proposition is competitive and cost effective.
 Its bundled capabilities are yielding a sustainable competitive advantage.

Pran Frooto has maintained a well-established cost structure which highly comparative with
their rivals. 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.
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 25 taka makes the consumers
feel satisfied since they are getting a healthy fruit drink in a small bottle and in a reasonable
price. So Pran value proposition is also very competitive in the market.
Internal Environmental Analysis of Frooto 13
Is the company competitively stronger or weaker than key rivals?

 Can the firm’s position be expected to improve or deteriorate if present strategy is

continued?
 How the firm ranks relative to key rivals on each industry KSF and relevant measure
of competitive strength
 Whether the firm has a sustainable competitive advantage or disadvantage
 Ability of firm to defend its position in light of
 Industry driving forces
 Competitive pressures
 Anticipated moves of rivals

Assessing a Company’s Competitive Strength versus Key Rivals

1. List industry key success factors and other relevant measures of competitive strength

2. Rate firm and key rivals on each factor using rating scale of 1 - 10 (1 = weak; 10 = strong)

3. Decide whether to use a weighted or unweighted rating system

4. Sum individual ratings to get overall measure of competitive strength for each rival

5. Determine whether the firm enjoys a competitive advantage or suffers from competitive
disadvantage.

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

Internal Environmental Analysis of Frooto 14

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.

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.

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 Beverage 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.

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.

Internal Environmental Analysis of Frooto 15

An Unweighted Competitive Strength Assessment

KSF/Strength FROOTO FRUTIKA SHEZAN SIP MANGOLE

Measure
Quality/product 8 8 7 7 5
performance
Reputation/image 8 7 5 4 5
Manufacturing 8 7 5 5 5
capability
Technological skills 7 10 6 6 5
Dealer 10 6 5 5 4
network/distribution
New product 9 5 5 5 5
innovation
Financial resources 9 7 5 7 7
Relative cost 9 8 5 5 4
position
Customer service 9 8 6 3 2
capability
Overall strength 77 66 49 45 42
rating

Rating Scale: 1 = Very weak; 10 = Very strong

Internal Environmental Analysis of Frooto 16

A Weighted Competitive Strength Assessment

KSF/Strength Weight FROOTO FRUTIKA SHEZAN SIP MANGOLE

Measure
Quality/product 0.10 8/0.80 5/0.50 10/1.00 1/0.10 6/0.60
performance
Reputation/image 0.10 8/0.80 7/0.70 10/1.00 1/0.10 6/0.60
Manufacturing 0.10 2/0.20 10/1.00 4/0.40 5/0.50 1/0.10
capability
Technological skills 0.05 10/0.50 1/0.05 7/0.35 3/0.15 8/0.40
Dealer 0.05 9/0.45 4/0.20 10/0.50 5/0.25 1/0.05
network/distribution
New product 0.05 9/0.45 4/0.20 10/0.50 5/0.25 1/0.05
innovation
Financial resources 0.10 5/0.50 10/1.00 7/0.70 3/0.30 1/0.10
Relative cost 0.35 5/1.75 10/3.50 3/1.05 1/0.35 4/1.40
position
Customer service 0.15 5/0.75 7/1.05 10/1.50 1/0.35 4/1.40
capability
Sum of weights 1.00
Overall strength 6.20 8.20 7.00 2.10 2.90
rating

Internal Environmental Analysis of Frooto 17

WHAT STRATEGIC ISSUES AND PROBLEMS MERIT
FRONTBURNER MANAGERIAL ATTENTION?

What should management be worried about -- what items should be on the company’s “worry
list”?

Requires thinking strategically about

 The pluses and minuses in the industry and competitive situation

 The company’s resource strengths and weaknesses and the attractiveness of its
competitive position
 A “good” strategy must address each and every strategic issue.

Strategic “How To” Issues:

● How to meet challenges of new foreign competitors.

● How to combat the price discounting of rivals.

● How to both reduce high costs and prepare for price reductions.

● How to sustain growth as buyer demand slows.

● How to adapt to the changing demographics of the firm’s customer base.

Strategic “Should We” Issues:

● Expand rapidly or cautiously into foreign markets.

● Reposition the firm to move to a different strategic group.

● Counter increasing buyer interest in substitute products.

● Expand of the firm’s product line.

● Correct the firm’s competitive deficiencies by acquiring a rival firm with the missing
strengths.

Internal Environmental Analysis of Frooto 18

Identifying the strategic issue

 Is present strategy adequate in light of competitive pressures and driving

forces?
 Is the strategy well-matched to the industry’s key success factors?
 Does the company need new or different resource strengths and
competitive capabilities?
 Does present strategy adequately protect against external threats and
resource deficiencies?
 Is firm vulnerable to competitive attack by rivals?
 Where are strong/weak spots in present strategy?

A well-stated issue involves such phrases as

 “What should be done about …….?”

 “How to …….?”
 “Whether to …….?”
 “Should we …….?”

Issues need to be precise, specific, and “cut straight to the chase”

Issues raise questions about

 What actions need to be considered?

 What to think about doing

It is the final and most important analytical step as it is about exactly what strategic issues the
company managers need to address and resolve it for the company to be more financially and
competitively successful in the years ahead. For instance, how the company needs to meet
challenges of new foreign competitors. Again, how to comeback price discounting with rivals
and prepare for cost reduction or sustain growth if demand falls. The growth rate of Pran Frooto
is becoming stagnant which is an indication that they are claiming the highest amount of market
share both in terms value and volume of sales.

Internal Environmental Analysis of Frooto 19

Due to high competition and low cost strategies, Pran often face problem if any new entrant
come to the market.

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.

Internal Environmental Analysis of Frooto 20

 PART-2

Critically Analysis of the Company

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. Quality is the most important factor of a product and also the marketer’s
major positioning tools. Quality refers to how good or bad service a product gives or how
customer’s satisfaction it can give. PRAN Frooto is a product made for people of all age. So
the company tries to ensure good quality. The company made some advertisements showing
that their product is safe, high quality, made from real ingredients in their state of art factory
by using modern technology and by ensuring a safe and hygiene process.

Matrix is developed by Bruce Henderson of the Boston Consulting Group in the early 1970’s.
According to this technique, business or products are classified as low or high performance
depending upon their market growth rate & relative 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.

Internal Environmental Analysis of Frooto 21

Stars (high growth rate and high market share)

 Stars are leader in business with high growth rate and high market share.
 They also require heavy investment to maintain it’s large market share.
 It leads to large amount of cash consumption & cash generation.
 Attempts should be made to hold the market share otherwise the star will became a cash
cow.

Cash cow ( LOW GROWTH, HIGH MARKET SHARE)

 They are foundation of the company & often the stars of yesterday.
 They generate more cash than required
 They generate more cash than required.
 They extract the profits by investing as little cash as possible
 They are located in an industry that is mature not growing or declining

DOGS (LOW GROWTH, LOW MARKET SHARE)

 Dogs are the cash traps

 Dogs do not have potential to bring
 High cost – Low quality
 Business is situated at a declining stage

QUESTION MARKS (HIGH GROWTH, LOW MARKET SHARE)

 Most business start of as question marks

 They will absorb great amount of cash if the market share remains unchanged (low)
 Question marks have potential to become star & evenly cash cow but can also become
dog.
 Investment should be high for question marks.

Internal Environmental Analysis of Frooto 22

Frooto was launched in Bangladesh in 2007 as refreshing mango juice & quickly went on to
become successful in juice category market. It has 2.6% growth rate per year and 5.8%
market share per year. Pran frooto is in a mature slow growth industry that belongs to cash
cow that has large share market and require little investment.

Product Life cycle

The market of PRAN juice pack is not new at present PRAN juice pack of AMCL takes
position in the Rapid Growth stage in the product life cycle. This can be shown in a
figure

Product life cycle of Pran Frooto juice pack:

FROOTO (Pran Juice)

Sales

Introduction Early Rapid Mature Saturation Decline

Growth Growth Stage

Time

Internal Environmental Analysis of Frooto 23

 Part-3

Brand Development strategies

According to most of the people brand is the most important factors for choosing a product. So, the
companies should always focus on how to develop their brands. Brand development strategies have
different segment.

Line extension means when a company extends existing brand names to new forms, colors, sizes,
ingredients of an existing product category. PRAN has introduced different forms (pet bottles,
aseptic/tetra packs), different sizes (250 ml, 500 ml and 1000 ml) of PRAN Frooto.

Brand extension is the way of extending a current brand name to new modified products in a new
category. PRAN Foods Ltd. has extended its current brand name “PRAN” to new modified products in
a number of categories like, Juice, drink, bakery, carbonated beverages, snacks, culinary, biscuits,
confectionary, dairy, health food drink, frozen foods, breakfast and refreshment, rehydration etc.

Multi brands are there when the companies introduce additional brands in the same category. PRAN
has many product categories and the company has introduced many different brands in each of its
product categories. Such as in terms of juice they have junior juice and frooto.

Products Cannibalization may occur which one successful brand may be strong enough to take away
the other brand such as if frooto 250 ml is too successful it might take away the market share of junior
juice.

New brands: A company may believe that the power of its existing brand name is waning and a new
brand name is needed. Or it may create a new brand name when it enters a new product category for

Internal Environmental Analysis of Frooto 24

which none of the company’s current brand name is appropriate. It occurs when firm uses an entirely
new brand name to enter a very different type of product category. PRAN Frooto does not follow this.

Corporate Strategy for the Company

Though Pran Frooto is not much old items but still now we can generally say that Pran is
holding first position in the agro based industry. This firm has fairly large market share in the
relevant product market and usually leads the other firms in price changes, new product
introductions, distribution coverage and promotional intensity. But Pran have to be alert on 3
founds to stay in the industry. First, the firm must find ways to expand total market demand
that is size of the market. Secondly, the firm must protect its current market share through good
defensive and offensive actions. Third the firm can try to increase its market share even if the
market size remains constant.

Through above discussion we came to know in spite of having different product still it needs
to be exercise the leadership strategy because if we considered Pran to be as number one then
ACME, SQUARE food products, BD food the firm’s known as challengers followers soon well
catch up the first position.

In an organization strategic planning is very important. It helps to define the strategy of the
company, helps to determine the goals, to allocate the resources of the company. To determine
the future directions of the company it is necessary to make strategic planning. The managers
of Pran make strategic plans to determine the organizational goals and also to achieve it. The
top level managers set the goal or objective for the middle level managers.

Business Level Strategies

Pran (Frooto) follows both Cost Leadership and Uniqueness Strategies. As,

 Provide reasonable product with reasonable price.

 Features of products are acceptable to all.
 Relatively standardize Product.
 Monitoring cost and customer’s choice.

Internal Environmental Analysis of Frooto 25

  As a market leader FROOTO has to always apply defensive pricing strategy.
 Enhancement of market segmentation strategies.
 Some Non Standardize product.
 Some differentiated product out of reasonable price.

Value Chain activity of Frooto

Raw material

Component Pran (FROOTO) Distributor Wholesale

Rural Retailer

The SWOT analysis is having identified the company's external opportunities and threats as
well as internal strength and weakness. In other word the overall evaluation of a company's
strength, weakness, opportunities, and threats is called SWOT analysis. It can be develop new
function business or corporate strategies to accomplish this change. A SWOT analysis for juice
pack of PRAN is as follows:

First, I have defined strengths of FROOTO which are given in below:

Strengths

 Management competence.
 Good marketing skills.
 Good materials management systems.
 Competence of information system.
 Competence of human research.
 Brand name reputation.

Internal Environmental Analysis of Frooto 26

  Differentiation advantages.
 Innovation effectiveness.
 Appropriate organizational style.
 Appropriate management style.
 A large market share.

Secondly, I defined weaknesses of FROOTO which are given in below:

Weaknesses:

 Partial poor marketing plan and maximum time emphases on only TV advertisement

not on other promotional mix.

 Conflict in between pure marketing knowledge and application.

 Decline in research and development for innovation.

 Don't feel necessity of market survey and not eager to understand consumer behaviors.

 Not eager to redesign or reformat the product.

 Lack of technical manufacturing skill.

 It has no attractive advertisement

Thirdly, I have defined opportunities of FROOTO which are given in below:

Opportunities:

 Company can expand its product line by introducing differentiation or introducing new
items for various using purposes.
 Can apply research and redevelopment in new areas.

Internal Environmental Analysis of Frooto 27

  Diversity into new growth business.
 Extend cost or differentiation advantages.
 Widen product range.
 Exploit new market segments.
 Overcome barriers to entry.

Finally, I have defined threats of FROOTO which are given below:

Threats:

 Increasing foreign companies’ domination.

 Changes in consumer tastes.

 Rapidly rising and invention of new or substitute products.

 New forms of vigorous industry competition.

 Political instability and government regulation.

 Economic depression.

PROSPECTS OF FROOTO

After analysis SWOT FROOTO, I find out few prospect of FROOTO, which are discussing
sequentially.

Geographical diversification:
I think that the FROOTO has also high demand in all over the market of Bangladesh. The
customer for whom the products are producing, they have scattered everywhere in the country
and they have the same liking for this product. Beside it has goodwill in the whole country. So
I think that there is a great opportunity of geographical diversification in domestics and foreign
markets.

Internal Environmental Analysis of Frooto 28

Opportunity to increase sales through advertising:
The firm as well as their competitor's do not effective advertises their products in various
media. I think most of the consumer FROOTO watch TV as well as TV is a popular media in
Bangladesh. So, if the advertisement is given in television most effectively its demand will be
increased day by day.

Increasing purchasing power:

The economic condition of the country and purchasing power of the customers are increasing.
Consumer purchasing power is increasing day by day. As a result the financial condition will
be improved in future as well as the demand and consumption of FROOTO will be increased.

Opportunity of product differentiation:

Most of the competition positions of the markets are alike. And they produce some quality
juice pack, some differentiation and approximately some price of products. So there is a much
opportunity to increase market share through the differentiation of products. Its may be related,
or conglomerate differentiation.

Competitive advantages:
Fully competition is not started in the market of FROOTO. STARSHIP, MANGOOLE, SIP,
SHEZAN & DANISH is the existing competitor of PRAN juice pack. Especially, company has
to face two styles of competitions: i) Price and, ii) foreign image. So, there is an opportunity to
take competitive advantages and increase market share.

Market extension:
Most of the people of Bangladesh are lower middle classes and some are upper class. The lower
middle classes are highly price sensitive to high price. They usually want various qualities and
design of juice pack at a lower price. There is a great chance of increasing the market share, if
a great produce attractive qualities and designs but in lover price.

So, this will indicate the firm has a bright future and prospect. Above these viewpoints the
company can expand its markets.

Internal Environmental Analysis of Frooto 29

Limitations of the Study

 Lack of data due to legal obligation and business confidentiality of the organization.

 Insufficient secondary information on different brands required in the study of the

project.

 In-Person Interviews become difficult as many respondents took time to respond or not
enough comfortable to share information.
 Company policy & secrets of not disclosing some data and information for confidential
reason, which could be very much useful for the report.
 Because of the limitation of information, some assumptions were made. So there may
be some unintentional mistake in the report.
 This study completely depended on official records, website information and annual
reports.

LEARNING STATEMENT

The term paper is about Internal Environmental analysis of diversified product FROOTO.
There are use various kinds of market entry strategies include export, licensing, strategic
alliances and direct investments. These strategies have been explained in detail in this term
paper.

The major objective of this term paper is to describe the internal environmental and analyze
different threat, opportunities, scopes, rival of business, market shares, profits, market entry
strategies in the foreign market and to understand the reasons for their success and failure. It
also is to identify the rules, regulations and policies of the various foreign government and to
clearly understand the present scenario of Juice market in terms of economic, socio-cultural,
political, legal and technological environment in the world. The report is also to identify the
success factors and to arrive at a set of recommendations for foreign companies

Internal Environmental Analysis of Frooto 30

The term paper also rates the different market entry strategies on the continuum of risk,
investments and commitment. The paper also explains PRAN FROOTO business model and
also its sourcing of raw materials to outside suppliers.

Suggestions and recommendations

I think the following suggestion and recommendation are seen feasible for the improvement of
the existing PRAN juice pack marketing in Bangladesh. These are given in below:

Suggestion and recommendation related to product:

 Quality ensures:

The firm should ensure quality of FROOTO according to the consumer’s need and
expectations. Quality of a product is of attributes that the consumer expects in a particular
product. In case of PRAN juice pack these attribute may be design color combination, taste,
etc. So quality should be selected from consumer viewpoint.

 Target market:

New segments will be added with the existing market. New segment will be for middle lower
and old people.

 Product positioning:

The Company will make position of FROOTO pack as ‘economic and quality product’ for
large market share.

 Product differentiation:

Taste, color combination and flavor of FROOTO will be improved.

Internal Environmental Analysis of Frooto 31

  Packaging and labeling:

The Company may charge the packing design a little bit and the instruction of safety ness,
contents of vitamin on the level will be introduced very soon open grade labeling will be
introduced.

Suggestion and recommendation related to pricing:

 Pricing policy: The Company will follow the penetration pricing policy as they do. To
keep the firm running it must set a low price. Because the consumer in domestic market
is high price sensitive to high price.
 Production cost will be reducing: Consumer usually wants to better quality and varied
designed products at a lower price production cost one of the major components of
price. To minimize the production cost, it is recommended that the expert and skilled
workers should be appointed which will reduce the rate wastage and volume of
defective production.
 Establishing the fixed price: The same price should be fixed all through the county. As
a result, the participants should not have to fall into trouble about price control. Besides,
100% participants expect establishing the fixed price.
 To add high commission system: Dealers, agents, wholesalers and retailers should be
given high commission. According to the participants they want high commission from
the authority. The commission system will reduce the business task of the participants.
 Competitive price: Finally, the company will offer competitive price. The company will
fixed a reduced price that will be lower than other competitors.

Suggestion and recommendation related to distribution:

The company will look for intensive distribution the company wants all the retail shop store
juice pack. The firm should develop a clear cut combination between channel members to
distribution of properly FROOTO. For the cordial co-operation of channel and sellers and
wholesalers in distributing and selling PRAN juice pack successfully. It is recommended that
the firm would like to get more benefit to profit share and profit margin might be increased.

Internal Environmental Analysis of Frooto 32

The distribution pattern needs to be changed the company have to added few pickup vans for
proper timely distribution. A juice pack is a very necessary product for the customer; demand
oriented distribution should be introduced. Firstly it is necessary to estimate the number of
customer in a certain area. And then to estimate their annual demand. Then it is necessary to
appoint a dealer distributor for a certain area.

Suggestion and recommendation related to promotion:

The PRAN Company has to create creative advertisements that will create more attention to
target customer. The company can participate in trade fair in different places where consumers
are concentrated. These activities will help to create image and consumer awareness in flavor
of its PRAN juice. Besides, the firm can advertise through the print media and electronic media.

The company will be taken sales promotion program. Cash discount quality discount and gift
will be given to the sales forces. Sales promotional budget will be increased as for as possible.

Current adverting theme will be change a little bit the company is eager to make brand
advertising on the front page of daily national newspaper.

Suggestion and recommendation related to research and development:

Research and development (R&D) is very essential for every business world. Information is
very necessary for designing effective marketing program. The firm may collect information
regarding consumer's needs, choices, attitude and exceptions through the R&D.

Other suggestions and recommendations:

We see that the participants in the business have very little knowledge about marketing field.
The participants should be properly trained. The intra-communication system will be

Internal Environmental Analysis of Frooto 33

developed if the distributors /wholesalers are trained well. Sometimes workshop and seminars
should be arranged for the participants.

Customer and services are being completely ignored in the existing system. There are no extra
facilities given to the customers. The complains of the customers are considered. Customer
oriented marketing should be established.

Though the existing product life cycle, PRAN juice pack position is rapid group stage. So there
are some additional suggestion has been given to keep this position. During this stage the firm
uses several strategies to sustain rapid market growth as long as possible.

 It improves product quality and adds new product features and improved styling.
 It adds new models and flanker products (i.e. products of different sizes, flavors,
and so forth that protect the main product).
 It enters new market segments.
 It increases its distribution coverage and enters new distribution channels.
 It shifts from product awareness advertising to product preference advertising.
 It lowers prices to attract the next layer of price sensitive buyers.

Internal Environmental Analysis of Frooto 34

Conclusion

PRAN juice is one of the most popular brands in Bangladesh as well as in international market
recently. In all reasons juice is widely consumed by the customers the demand becomes high
to the customers. There is a wide demand and high prospects for the juice packs. PRAN juice
pack is one of the items to meet this demand.

Now the firm is facing various types of marketing problems. In this paper some suggestions
and recommendations have been given so that the firm can overcome those problems. I believe
that the management of PRAN is more experience as well as they are also thinking about those
problems. I think management should be took care this problem. If the firm produces PRAN
juice as for the customer's choice and demand oriented, the consumers will be highly motivated
to purchase the juice of the firms.

So, through the observation of the activities and information collected from the interview of
participant such as wholesalers, retailers, customers it can be said that this firm is being
profitable conduct becomes the firm is not to strong on counter remarkable competition,
workers dissatisfaction, and for sufficient demand in comparison with the manufactured goods.
But the firm is not being able to perform its marketing activities with efficiency. In this
condition continues the firm will be endangered and undergo less in the long run. But it is
possible to expand this firm to a greater extent, if it can make use of its present opportunities
and facilities properly and it will be possible for it to earn more profit than it is earning now.
Therefore, the firm will have to give importance to perform the marketing activities efficiently.

PRAN Juice Company is no doubt one of the basic companies in Bangladesh. So we glad to
know the locally produced juice in now in a position to fulfill the total of PRAN juice pack in
the country. The PRAN juice has that success of business depends on the strength of its existing
marketing policy is appropriate for the present situation. The major problems arising in the
PRAN juice in Bangladesh are as follows. The distribution system is being changed complex
government policy. Through the company wants most of the retail shop to store juice pack. So
the company will have to make intensive distribution. The effective marketing system can be
solving present problems.

Internal Environmental Analysis of Frooto 35

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Internal Environmental Analysis of Frooto 36