PRAN - Assignment Point
PRAN Spice Market Analysis And Its Evaluation
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introduction
The spice market is growing since consumers are showing reluctance to go for traditional systems of processing spices. Use of processed spices is increasing both in rural and urban areas, Consumers' growing awareness about hygienic spices and busy urban life has led to rise in branded spices consumption. The country's processed spices market is heating up as big business houses battle to win shares in the booming mark. This is growing by around 15 percent a year. A leading conglomerate ACME is set to enter the market by year-end and another business group, ACI, has already made its debut. SQUARE, PRAN and BD Foods are other major players in spice market. The report is confined to the Dhaka city. The report is the consisted analysis of complain of Powder Spice and the satisfaction level of consumer toward PRAN Spice.
The report is also the analysis of the effective media of communication with customers; the report ignores the information available in the company, which are confidential, and not for public dissemination. The total Spice Market of the country could not be observed significantly in the report. Therefore, this report does not actually compare the position of the total spice market in the context of the total business situation of the country.
1.2 Report objectivies:
1.2.1. Broad Objective:
← “PRAN” Spice Market Analysis & its evaluation.
1.2.2 Short Objectives:
← To identify the condition of spice market in Bangladesh.
← To analyze the market competition in the spice market in Bangladesh.
← To evaluate the situation level of spice in Bangladesh.
← To identify the pattern of use of PRAN spice consumer.
← To analyze the satisfaction level of marketing mix of PRAN spice & its major competitor.
← To identify the problem of PRAN spice in marketing the product.
← To find out some solutions to overcome this problem.
1.3 Methodology:
1.3.1. Type of Research:
This report is a descriptive type of research in nature and it administered by collecting both primary and secondary data. It has tried to use both the primary and secondary sources of collecting information and some are to make the report presentable with as less abstraction as possible.
1.3.2. Sources of data:
In order to attain the objective of the study in this report all-necessary information are prepared by collecting both primary & secondary sources of data. These are:
1.3.2.1. Primary sources:
Primary data collected directly to solve the customer problem through face-to-face interaction. It is the systematic collection of information directly from respondents using survey. Several sources of data collection are use to make this report. The source of data are-
← Questionnaire survey.
← Consumer study.
← Retailer’s study.
← Job experience.
1.3.2.2. Secondary sources:
Some secondary data collected to make the report more concrete. These data has been collected from different books, newspapers, web site, Annual report of PRAN and combination of all these sources; I am able to write this report.
← Books.
← Journals.
← Company annual report.
← Newspaper.
1.3.3. Methods of Primary data collection:
1.3.3.1. Primary data:
Filling the questionnaire by consumer (users, lapsers and other brand users).
1.3.4. Questionnaire Design:
This questionnaire developed with the combination of open-ended, close-ended and multiple-choice questions. For close ended questionnaire, multiple-choice question was used where the respondent will choose one option among several possible alternatives and for close-ended questions are used to write down the respondent any opinion, complain and feelings. The length of the questionnaire is 3 (Three) pages (A4 size paper). The questionnaire has 3 (Three) sections. In section - 1 the general question of spice, section - 2 is for PRAN spice user and section - 3 is for other spice user. The average interviewing has been twenty minutes.
The questionnaire was mainly use to find out the satisfaction level of PRAN spice. Besides, I attempt to find out the main reason of use RADHUNI spice, monthly consumption of spice, attractive media of advertisement, favorite TV and Radio Channel, favorite advertisement of PRAN spice also its competitors.
1.3.5. Sample plan:
← Population:
The population of my survey is all of customer of powder spice. The first step of the sampling design is to define the study population. Due to time restriction and other limitations, the survey mainly focused on households.
← Sample Elements:
The sample element of this research is the existing consumers of powder spice of Bangladesh.
← Sample frame:
There is no concrete list or number of subscriber of the selected area of the population.
← Sampling procedure:
In the data collection procedures, it is used non-probability convenience sampling.
← Sample Size:
The total sample size for the study is 100 and all of respondent are home user.
← Field Work / Data collection:
The questionnaire survey was administered in different household based on socio economic class A, B &C.
1.3.6. Analysis and reporting
Statistical tools and computer software are used for analysis and reporting.
1.4 Limitations:
The study is not free from some practical limitations. Following limitations have faced during the study and the time of working & data collection:
← Time and budget constraints for this kind of research.
← Lack of instrumental facilities to get proper information.
← Only simple statistical tools were used for data analysis.
← Due to the confidentiality concern, much detailed information could not retrieve.
← The sample size is too small so the result may not convey the scenario perfectly for whole country.
← Lack of Records, Sufficient books, unavailable information in website. These constraints narrowed the scope of accurate analysis.
2.0 Overview of PRAN:
2.1 Company profile:
PRAN stands for
P = Programme for
R = Rural
A = Advancement
N = Nationally.
In Bangla “ cÖMwZ iƒcvq‡b AMÖbx b‡evϨg ”
PRAN GROUP was born in 1980 with Rangpur Foundry Limited. Keeping in view the corporate mission of the group they have over the years diversified others areas. Today they are the largest processors of fruits & vegetables in Bangladesh. PRAN encourage contract farmers and help them grow quality crops with increased yields and to obtain fair prices. The Group comprises of 9 companies. The head offices are located in Dhaka with production facilities around the country. Various companies under PRAN Group are:
← Agricultural Marketing Company Limited.
← Pran Foods Limited.
← Pran Agro Limited.
← Banga Agro Processing Limited.
← Bangladesh Lift Industries Limited
← Property Development Limited.
← Rangpur Foundry Limited.
← Pran Agro Business Limited.
← RFL Plastics Limited.
The management of PRAN group is modern adapted to the environment & culture. Their largest asset is their competent team of hands-on-mangers & dedicated employees. 10 (Ten) departments perform PRAN Group's various business activities. These departments are common for the entire sister companies. For example Marketing Department does the marketing job for all companies of PRAN Group. Other departments are Legal Department, HR Management. Business Department, Material Management, Accounts Department, Management Information System (MIS), Import. Export and Head Office Department. All departments work in coordination with each other. All the department head directly report to the Deputy Managing Director (DMD), who works under Group's Chief.
PRAN in Bangladesh are blessed with a climate ideally suited to agriculture, specially fruits and vegetables-rich in taste and flavor, sweet, mellow and juicy. Their deltaic plains are among the most fertile in the world created and drained by the mighty rivers-the Padma, the Jmauna, and the Meghna. There is plenty of water.
It is the policy of Agricultural Marketing Company Limited to market products of consistent quality at home and abroad as per the world standards produced hygienically in accordance with good manufacturing practices in state-of-the-art plants and processes, packed in appropriate packaging and remain committed to these objectives at all times.
AMCL have adopted ISO-9001 as the model for their quality management system. Accordingly documented systems of producers and instructions have been established throughout the organization defining business processes, responsibilities and authorities.
Management is committed to providing the resources and creating and environment in which each employee can contribute his/her skill, talent and ideas in a never-ending process of improvement and innovation in all aspects of business.
The company initially started its operation by farming-cultivating different fruits like banana, tomato, pineapple etc in their own lands. They used to sell the fruits directly to the market. But the business was not profitable as the products were seasonal and were not getting expected price from the market this led the company to think processing the fruit and increase the shelf life, which could be used round the year. The increasing demand for products in the market, strong supply base, and export opportunity for the products helped the company to diversify their business.
AMCL therefore set up a factory on 8 acres of land in Ghorashal with machinery for bottling and canning in May 1991. In 1993 the Company redefined their operation and started processing the fruits into Juice. They launched their first product in 1993 and now it is the largest agro foods processing company in the country, the factory has expanded substantially over the last several years in all spheres of food processing e.g. bottling, canning, pulping, pickling, concentrating, dehydrating as well as installation of Bangladesh's first Tetra-Pak facility. The company is the first ISO 9001 certified company in food processing industry in Bangladesh. PRAN is the brand name of the products of the company, which implies "Program for Rural Advancement Nationally". AMCL and its Brand name "PRAN" have twin objectives - 'achieving social values with sustainable pecuniary advantage for all our stakeholders."
2.2 Mission:
The corporate mission of PRAN group is "Poverty and hunger are curses".
2.3 Aim:
The prime aim of PRAN group is "To generate employment and earn dignity and self-respect for our compatriots through profitable enterprises'.
2.4 Management structure of marketing department of PRAN foods:
Figure: Management structure of marketing department of PRAN foods.
2.5 Spice Product line of PRAN:
The following products are in the product line of PRAN spice:
|Chilli | |
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|Coriander | |
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|Turmeric | |
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|Curry Masala | |
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|Fish Masala | |
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|Chatpati Masala | |
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|Haleem Masala | |
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2.6 Target customer (SPICE):
The main target consumers are all age group (Except children) and household commodities. Gender specifically women and housewives and secondary husband of these women.
← Buyers:
Customer Group:
❖ All general stores and kachabazar (Whole sellers and retailers)
❖ All Super markets & Institutions.
Consumer Group:
❖ All householders & house-wives.
❖ Hotel & Restaurants
2.7 Distribution Channel:
To make the Group’s products available at the every knock & corner of the country PRAN has developed the best sales & distribution network all over the country.
The distribution network of the company underwent major restricting through opening of several sales depots at important locations across the country and appointment of a large number of distributors at the thana and union levels who are supported by an expanded sales force to achieve maximum market penetration. With improved management and better logistic support provided to it the upgraded distribution system of the company is being geared to fully cater to the increased requirements that will come up due to inclusion of items of PRAN products.
To ensure fast & smooth distribution companies has set up 9 distribution depots & have appointed more than 1000 dealers all over the country.
Figure 2: Distribution Network of PRAN Spice.
2.8 Imported Items:
As the largest food processing company of Bangladesh usually we import the following to meet our requirements:
← Raw Materials:
Cassava powder, Corn Grits, Orange Concentrate, Potato starch, Potato granules, powder milk, Peanuts, pulses & beans, onion, Chilli, ginger etc
← Chemicals:
Ascorbic Acid, Beta Carotene, CMC, Citric Acid, Caustic Soda, Hotmelt, Pectin, Potassium Sorbet, Xanthan Gum, Different Flavors, Confectionery raw material.
← Packaging Materials:
Aluminum Foil, Crown Cork, Flexible Packing material, Glass Bottle, Glass Jars, HDPE, Lug Cap (30, 53 & 63mm), PET, Shrink Labels, Shrink caps, Tin Can, U-Straw.
2.9 Exported Items
PRAN Group exports its products in 21 countries all over the world. It is expanding day by day. All types of products are not exported in all the countries. Juice and mineral water are exported in India whereas snacks like chanachur, crackers etc are exported in Middle East. There are regional managers for export in SAARC countries and India. Attending trade fair and visit of DMD in different countries are
← Major Market:
India, Saudi Arabia. UK & US
← PRAN has also been exporting to:
Singapore, Malaysia, Korea, Japan, Switzerland, Germany, France, Italy, Austria, Qatar, Kuwait, UAE, Pakistan, Sri Lanka, Nepal, Bhutan, Myanmar, Australia, Canada, Lebanon, Ghana,Gabon, Angola, Oman, Mayetta, Cabe Verde Island, Senegal.
← Exported Items:
Fruit Juices in Aseptic Pack & Glass Bottle, Fruit Drinks in Plastic Bottle, Pickles in Glass Jar & bulk. Canned Fruits & Vegetables, Extruded & Bangladeshi Snacks, Tea, Rice, Puffed Rice, Flatten Rice, Jam/ Jelly in Glass Jar, Cup & bulk. Spices, Mustard Oil, Mineral Water, Dehydrated Fruits, Tomato Ketchup / sauce in Glass Jar, Candies, Bubble Gum, Ball Gum, Lollipop, Cup Jelly, and Vita Plus are exported by PRAN.
2.10 Advertising & Promotion:
Advertising & Promotion is the key to the marketing of any product or brand. To cope up with the rapid & ever changing market situation & to come up with innovative marketing strategy and ideas company has set up a full-fledged In-house advertising agency comprises of the best talents of the country. Company spends a large portion of their promotional budget in brand building exercises at home & abroad.
2.11 Future Plan:
PRAN may very rightly take pride in having built the largest agro based food product business in the country. PRAN do not bask under their laurels. In all that we do, or will do. They never forget that they never forget that they face an increasingly fierce competitive environment. Additionally as we look ahead, we do not foresee the business environment to improve dramatically. At the same time as they appreciate many external factors are beyond their control, PRAN also understand they have influence on their business. To this end, PRAN continue to re-align their business strategies to that of shifting market dynamics. It will be pleased to note that considerable necessary investment have already been made this year to balance the existing plant capacity for further enhancement of productivity.
AMCL are quite aware of the challenges lying ahead and according they have braced their selves to face them. AMCL shall continue to aggressively purpose a strong marketing strategy to secure and maintain significant growth not only in the domestic market but also in the international markets through intensification of search for potential new geographic locations. They should like to repeat that significant investments in new products and markets will be continuously undertaken. They are poised to further enhance the R&D activities base. Additionally with the prevailing conducive regional business environment specially relating to the forthcoming SAFTA, management structure of the company is being recognized to effectively face prevailing competition and gain more market share in the neighboring countries in order to maximize profit margins.
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|PRAN at a Glance |
|1. |Origin |: |Bangladesh |
|2. |Head office |: |PRAN Foods LTD |
| |Property Heights |
| |12 R K Missin Road |
| |GPO BOX : 83 |
| |DHAKA – 1203 |
| |E_mail: pfl@ |
| |Web: |
|3. |Factory |: |Eakdala, Nator. |
| |Ghorashal, Tangail. |
|4. |Corporate Sales office |: |161, Rahman Mansion, (4th Floor), Motijheel |
| |DHAKA – 1000. EXT - 125 |
|5. |Launching year |: |1980 |
|7. |Business Line |: |Consumer products |
|8. |Status |: |Private Limited Company |
|9. |Position in the Industry |: |2nd (Spice) |
|10. |Special Achievement |: |ISO 9001: 2000 |
ISO 9001: 2000 Certificate (2004 - 2006):
HALAL Certificate:
HACCP Certificate:
3.0 Theoretical Aspect:
In the arena of competitive business, organizations are surviving on strategy, which play very vital role to achieve the organization goal. Marketing policy is one of the major strategies for stay in the market with brand locality. Especially in consumer products, the role of marketing is very important to satisfy the customers through quality of product, attractive TV advertisement, new flavor, better packaging, competitive pricing and product availability.
According to Webster, “Preference is grant of favor or advantage to one over another. That means some criteria of marketing that create willingness to receive any product. That may be influenced by the product’s quality, promotional activities, organizational commitment, facility, packaging, value addition etc.”
3.1 Market:
The set of actual and potential buyers of a product or service is called market.
Figure: Elements of a Modern Marketing System.
3.2 Marketing:
Marketing is a social and Managerial process by which individuals and groups obtain what they needs and wants through creating and exchanging products and values with others.
3.3 Needs:
Need is states of felt deprivation. Human needs are states of felt deprivation. They include basic physical needs for food, clothing, and satisfy: social needs for belonging and affection: and individual needs for knowledge and experience.
3.4 Wants:
Want are the form of human needs take as shaped by cultural and individual personality.
3.5 Demand:
Demand is human wants that are backed by buying power.
3.6 Market demographic:
Dividing a market into smaller groups of buyer’s distinct needs characteristics or behavior that might require separate products or marketing mix.
3.7 Geographic:
Dividing a market into different geographical units such as nations, stats, regions, counties, cities or neighborhoods.
3.8 Demographic:
Dividing the market into different groups based on demographic variables such as, sex, age, family size, family life cycle, income, occupation, education, religion, race and nationality.
3.9 Behavioral factor:
Dividing a market into groups based on consumer knowledge, attitude, use or response to a product.
3.10 Market positioning:
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
3.11 Target market:
The process of evaluating each market segments attractiveness and selecting one or more segments to enter.
3.12 Customer Satisfaction:
The extent to which a product’s perceived performance matches with buyer’s expectations. If the product’s performance falls short of expectations, the buyer is dissatisfied. It the performance matches or exceeds expectations, the buyer is satisfied or delighted (Principles of Marketing 13th edition, Philip Kotlar & Gary Armstrong).
Customer satisfaction is the extent to which a product or service’s perceived performance matches a buyer’s expectations. If the product or service’s performance falls short of expectations, the buyer is dissatisfied. If performance matches or exceeds expectations, the buyer is satisfied or delighted.
Expectations are based on customers past buying experiences, the opinion of friends and associates, and marketer and competitor information and promises. Marketer must be careful to set the right level of expectations. If they set expectations too low, they may satisfy those who buy but fail to attract enough buyers. In contrast, if they raise expectations too high buyers are likely to be disappointed. Dissatisfaction can arise either from a decrease in product and service quality or from an increase in customer expectations. In either case, it presents an opportunity for companies that can deliver superior customer value and satisfaction.
Today’s most successful companies are rising expectations—and delivering quality product. Such companies track their customers’ expectations, perceived company performance, and customer satisfaction. Highly satisfied customers produce several benefits for the company. Satisfied customers are fewer prices sensitive, remain customers for a longer period, and talk favorably to others about the company and its products & services.
Although the customer center of firms seeks to deliver high customer satisfaction relative to its competitors, it does not attempt to maximize customer satisfaction. A company can always increase customer satisfaction by lowering its price increasing its services, but it may result in lower profits. Thus, the purpose of marketing is to generate customer value profitably. This requires a very delicate balance: The marketer must continue to generate more customer value and satisfaction but not “give away house”.
3.13 SWOT analysis:
A SWOT analysis is a tool, used in management and strategy formulation. It can help to identify the Strengths, Weaknesses, Opportunities and Threats of a particular company or industry. Among the internal factors, strengths and weaknesses create value or destroy value. These may be included assets, skills, or resources that a company or an industry has at its disposal, compared to its competitors. Strengths and weaknesses can be measured using internal assessments or external benchmarking.
On the other side, external factors constitute with opportunities and threats, which create value or destroy value. These are beyond the control of a company or an industry. But opportunities and threats emerge from either the competitive dynamics of the industry/market or from demographic, economic, political, technical, social, legal or cultural factors.
Any organization or industry must try to create a fit with its external environment. The SWOT diagram is a very good tool for analyzing the (internal) strengths and weaknesses of a corporation an industry and the (external) opportunities and threats. However, this analysis is just the first step. To adjust with the external environment is often really the most difficult work.
Confrontation Matrix
It’s a tool to combine the internal factors with the external factors.
| |Opportunities |Threats |
|Strength |Offensive |Adjust |
| |Make the most of these |Restore strengths |
|Weaknesses |Defensive |Survive |
| |Watch competition closely |Turn around |
The two columns of the SWOT diagram are pointing in opposite directions. Strategic decision makers must deal with the paradox of creating alignment. They should focus on market-driven strategy or resource-driven strategy.
|S |Internal Environment |W |
|Positive |Strengths |Weaknesses |Negative |
| |The consumer product for all groups. |No distribution network. | |
| |World wide demand for the product |New to export process | |
| |Enriched with nutrition. |Political instability | |
| |Committed and skilled workforce. |Currency devaluation | |
| |New installed technology. |High government control | |
| |Financial strength. |High exit cost | |
| |Economies of scale. |Financial backup | |
| |Demand for the product. |Inability to forecast accurate market segment | |
| | |Unavailability of raw materials | |
| | |Lack of Govt. incentives | |
| |Potential market in Bangladesh. |The foreign company’s product covering the | |
| |Intense opportunity in export to abroad. |market at present. | |
| |Advertising for create consumer need. |Highly standard product of the competitors. | |
| |International brand image. |Natural disasters hamper the production process.| |
| |Better quality at low price. |Political instability | |
| |Contribution to the economy (GDP) |Impact of The World Economy | |
| |Use “Piggy-riding” for product distribution. |Change in exchange rate. | |
| |Competitive advantage in low price but high |Advertising cost will cut the profit shares. | |
| |quality product. | | |
| |Opportunities |Threats | |
|O |External Environment |T |
3.14 Marketing mix (4 Ps) analysis:
The marketing mix is probably the most famous phrase in marketing. The elements are the marketing 'tactics'. Also known as the '4 Ps', Marketing decisions generally fall into the following four controllable categories:
← Product
← Price
← Place (distribution)
← Promotion
The concept is simple. Think about another common mix - a cake mix. All cakes contain eggs, milk, flour, and sugar. However, you can alter the final cake by altering the amounts of mix elements contained in it. So for a sweet cake add more sugar! It is the same with the marketing mix. The offer you make to you customer can be altered by varying the mix elements.
Another way to think about the marketing mix is to use the image of an artist’s palette. The marketer mix’s the prime colors (mix elements) in different quantities to deliver particular final colors. Every hand painted picture is original in some way, as is every marketing mix.
"Marketing mix" is a framework which acts as a guideline for marketers to implement a marketing concept. It consists of a set of major decision areas that a company needs to manage in order to at least satisfy consumer needs.
According to Kotler et al. (1999) the mix is a set of "controllable tactical marketing tools that the firm blends to produce the response it wants in the target market". Hence, in an effective marketing programme all of those elements are "mixed" to successfully achieve the company's marketing objectives.
Origins of Marketing MIX (4 Ps):
The term "marketing mix" became popularized after Neil H. Borden published his 1964 article, The Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940's after James Culliton had described the marketing manager as a "mixer of ingredients". The ingredients in Borden's marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped these ingredients into the four categories that today are known as the 4 P's of marketing, depicted below: These four P's are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response.
4 Ps Definition:
The traditional marketing mix contains of four major elements, the "4-Ps of marketing". As defined by Kotler et al. (1999):
1. Product: "Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. In includes physical ob-jects, services, persons, places, organizations and ideas."
2. Price: "The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service."
3. Promotion: "Activities that communicate the product or service and its merits to target customers and persuade them to buy."
4. Place: "All the company activities that make the product or service available to target customers."
The set of controllable tactical marketing tools – product, price, place and promotion – that firm blends to produce the response it wants in the target market.
Figure: The 4 Ps of the marketing mix
All of these elements have their specific place in any company's marketing strategy:
4p in Details
← Product:
The product is the most important aspect of the marketing mix. The product can be a service or even a holiday destination. Products have both tangible and intangible benefits. Tangible benefits include benefits which can be measured such as the top speed of a car. Intangible benefits are benefits that cannot be measured such as the enjoyment the customer will get from the product.
It is important that the product is changed as necessary to bring it up to date and prevent it from being overtaken by competitors.
Exactly what product or service are you going to sell to this market? Define it in terms of what it does for your customer. How does it help your customer to achieve, avoid or preserve something? You must be clear about the benefit you offer and how the customer's life or work will be improved if he or she buys what you sell
The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made:
← Brand name
← Functionality
← Styling
← Quality
← Safety
← Packaging
← Repairs and Support
← Warranty
← Accessories and services
← Price:
The product is the most important aspect of the marketing mix. The product can be a service It is very important that the correct price is charged for a product. If the price is too high consumers will avoid the product as they will believe it to be too expensive yet if the product is priced too low they may believe that there is something wrong with the product for it to be so cheap. Also if the company charges too low a price, it may not cover its costs. There are many different pricing strategies that companies can use to decide on a price for their product including market and psychological pricing methods.
Exactly how much are you going to charge for your product or service, and on what basis? How are you going to price it to sell at retail? How are you going to sell it at wholesale? How are you going to charge for volume discounts? Is your price correct based on your costs and the prices of your competitors?
Some examples of pricing decisions to be made include:
← Pricing strategy (skim, penetration, etc.)
← Suggested retail price
← Volume discounts and wholesale pricing
← Cash and early payment discounts
← Seasonal pricing
← Bundling
← Price flexibility
← Price discrimination
Value pricing is also common in luxury items. Sometimes, the higher the price, the more you sell: Fashionable clothing or restaurants for snob people. Of course value pricing is limited by the price elasticity as you have already learnt in Economics.
← Place:
The product is the most important aspect of the marketing mix. The product can be a service. The place is where you can expect to find your customer and consequently, where the sale is realized. Knowing this place, you have to look for a distribution channel in order to reach your customer.
The place is not where is located your business but where our customers are. For a retailer it is the same but for a boat producer located in Philippines the real place is the entire world. Do not confuse positioning and place. Here place means the real physical position of the customer in a geographic area or along a distribution channel.
Distribution is about getting the products to the customer. Some examples of distribution decisions include:
← Distribution channels
← Market coverage (inclusive, selective, or exclusive distribution)
← Specific channel members
← Inventory management
← Warehousing
← Distribution centers
← Order processing
← Transportation
← Reverse logistics
It exists today, with the internet, more channels than in the past but basically, you have to consider three main distribution channels:
← Selling to the customers:
Whether you sell by yourself ( as retailer) whether you employ a sales force, you are in these cases in front of the final customer. There are not intermediaries between you and him. Unfortunately, except for the retailer business, this situation is far to be the general case.
← Selling to the retailers:
For example, you manufacture the fun boards and you sell them to the Arizona retailers. This practice could be a bit complicated.
← Selling to the wholesalers:
There are maybe four or five sport articles wholesalers in Arizona. You sell your fun boards to these big men. On turn the wholesalers sell the fun boards to the retailers which finally sell to their customers
As you can see, the choice of your distribution channel heavily depends on your product and place in the productive process. If you are in coal mining, do not expect to sell some coal buckets to the final consumer!
← Promotion:
The product is the most important aspect of the marketing mix. The product can be a service in the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include:
← Promotional strategy (push, pull, etc.)
← Advertising
← Personal selling & sales force
← Sales promotions
← Public relations & publicity
← Marketing communications budget
Advertising, public relations and so on are included in promotion and consequently in the 4Ps. Sometimes, packaging becomes a fifth P. As promotion is closely linked to the sales, I will mention here the most common features about the sale strategy.
Definition:
The function of promotion is to affect the customer behavior in order to close a sale. Of course, it must be consistent with the buying process described in the consumer analysis. Promotion includes mainly three topics: advertisement, public relations, and sales promotions.
Advertisement:
It takes many forms: TV, radio, internet, newspapers, yellow pages, and so on. You have to take notice about three important notions:
Reach is the percentage of the target market which is affected by your advertisement. For example, if you advertise on radio you must know how many people belonging to your segment can be affected.
Frequency is the number of time a person is exposed to your message. It is said that a person must be exposed seven times to the message before to be aware of it. Reach*frequency gives the gross rating point. You have to evaluate it before any advertisement campaign.
Message:
Sometimes, it is called a creative. Anyway, the message must: get attraction, capture interest, create desire and finally require action that is to say close the sale.
Public relations:
Public relations are more subtle and rely mainly on your own personality. For example, you can deliver public speeches on subjects such as economics, geo-economics, futurology to several organizations (civic groups, political groups, fraternal organizations, professional associations)
These speeches will enable you to develop new relationships and their cost is nil !
Sales promotion:
It includes fair trades, coupons, and discounts and is linked to the sales strategy.
Limitations of Marketing MIX (4Ps):
The marketing mix framework was particularly useful in the early days of the marketing concept when physical products represented a larger portion of the economy. Today, with marketing more integrated into organizations and with a wider variety of products and markets, some authors have attempted to extend its usefulness by proposing a fifth P, such as packaging, people, process, etc. Today however, the marketing mix most commonly remains based on the 4 P's. Despite its limitations and perhaps because of its simplicity, the use of this framework remains strong and many marketing textbooks have been organized around it.
A Summery table of the Marketing MIX:
The following table summarizes the marketing mix decisions, including a list of some of the aspects of each of the 4Ps.
Summary of Marketing Mix (4Ps) Decisions
|Product |Price |Place |Promotion |
|Functionality |List price |Channel members |Advertising |
|Appearance |Discounts |Channel motivation |Personal selling |
|Quality |Allowances |Market coverage |Public relations |
|Packaging |Financing |Locations |Message |
|Brand |Leasing options |Logistics |Media |
|Warranty | |Service levels |Budget |
|Service/Support | | | |
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4.0 Analysis & Findings:
4.1 Current Spice market scenario of Bangladesh:
The country's processed spices market is heating up as big business houses battle to win shares in the booming mark. This is growing by around 15 percent a year. A leading conglomerate ACME is set to enter the market by year-end and another business group, ACI, has already made its debut. SQUARE, PRAN and BD Foods are other major players. The market is growing since consumers are showing reluctance to go for traditional systems of processing spices. Use of processed spices is increasing both in rural and urban areas, Consumers' growing awareness about hygienic spices and busy urban life has led to rise in branded spices consumption. The ACME will be the second entrant in the processed spices businesses in the year 2008. Earlier ACI Foods hit the market with its 'ACI Pure' brand in January.
Some companies also export spices to the Middle East, Europe and North America. A section of rural people are also showing interest in spices. Square, which entered the market with its Radhuni brand in 2001 now controls about 70 percent of about Tk 150 -160 crore branded spices market, according to industry insiders. It's really a big market because our (Bangladeshi people) food habit is spices based. But the market is still dominated by non-branded ones. According to stakeholders, the yearly market of both brand and non-brand spices is around Tk 4,000 crore with 2, 52,000 metric tons of spices are consumed every year. The domination of non-branded spices, in this situation new entrants company will fall. Any new entrant will help expand the overall branded spices market through campaign among consumers, the entry of more companies will help expand the market. A market without competition is always bad. Entry of new players will improve quality as well as the size of the market.
Agricultural Marketing Company Limited (AMCL) – PRAN possesses good information about the market and knows a great deal about the common attributes of the customer.
Source: The Daily Observer Sunday, March 16.2008.
`
4.2 Target market:
The main target consumers are all age group (Except children) and household. Specifically women, housewives and in some case husband of these women.
← Buyers:
Customer Group:
❖ All general stores and kachabazar (Whole sellers and retailers)
❖ All Super markets & Institutions.
Consumer Group:
❖ All householders & house-wives.
❖ Hotel & Restaurants
4.3 Market demographic:
The profile for the typical PRAN spice customer consists of the following geographic, demographics & behavior factors.
4.3.1 Geographic:
← PRAN spice already covered Bangladesh market.
← PRAN are exporting their product within 63 countries.
← PRAN’s major markets are India, Djibouti & UK.
← With the help of internet & strong distribution channel, PRAN serve both domestic & international customers.
4.3.2 Demographic:
← Most of spice consumers are mainly female in some case male are also use spice.
← The main consumers are all age group (Except children) of PRAN spice.
← PRAN produce their spices for all classes consumer like upper class, middle class & working class.
4.3.3 Behavioral factor:
← Consumers' growing awareness about hygienic, convenience and quality spices.
← Customers also want cost effective product.
← Urban people also becoming busy life and has led to rise in branded spices consumption.
4. Market positioning:
PRAN spice plays the Niche Market segment with no specific positioning. PRAN spices needs to increase its position in spice industry. The position will increase by quality spice, competitive pricing, availability and advertisement.
4.5 Market needs:
PRAN providing hygienic, convenience, quality and healthy spice for their consumer. The company seeks to fulfill the following benefits that are important to its consumer:
← Quality product:
The customers are more careful about quality of spice. PRAN has ISO 9001 certificate ensures that PRAN products reach the consumer maintaining the highest level of quality.
← Domestic product:
Without spice Bengali food is trestles. The raw material of PRAN spice comes from nature of Bangladesh and produced it without any chemical which are hazard for human life. In our daily life we used different types of spices to make our foods. So the customer purchases the PRAN spice with their mantel satisfaction.
← Competitive pricing:
Consumer wants to purchase high quality of spice with a competitive price.
4.6 Market trend:
In 2003 PRAN first launched the spice in the Bangladesh market. PRAN produce different flavor of spice. At the moment spice market is growing faster, more competitor are coming in the market also customer are more knowledgeable for that they want different types of quality and convenience product. PRAN already covered 63 countries all over the world. PRAN has strong distribution channels and skilled sales force since 1994. PRAN still captured a great image for their continuous better work. The greatest achievement of the company during the year was award of ISO-9001 certification for quality management system.
4.7 Market growth:
Gradually total spice industry is going upward with a strong competition. With the domestic market and the international market growth statistics is increasing day by day. The previous statistics shown that the sale is increase by (2005 – 72,54,85,800 & 2006 – 85,22,10,000) 17% in 2005-2006 income years.
Product:
PRAN spice is prepared from the selected varieties of spices (Chili, Turmeric, Coriander, and Cumin) through completely automatic process that ensures absolutely free from hand touch. PRAN spice is 100% natural, fresh and pure. It ensures natural coloring and taste of the curry, at the same time, is helpful for health and hygiene.
|Product |: |Spice |
| | | |
|Brand name |: |"PRAN" |
| | | |
|Brand logo |: | |
| | | |
| | | |
|Product offering |: |PRAN powder spice has mainly three plain sub category of Spice Such as (Chili, Turmeric & |
| | |Coriander) |
| | | |
|Product size |: |These three sub brands have the following stock keeping unit: |
| | |50 gm, 100 gm, 200 gm, 500 gm, & 1000 gm |
| | | |
|Product type |: |Convenience product (Consumer product that the customers usually purchase frequently, immediately |
| | |and within a minimum comparison and buying effort.) |
| | | |
|Product feature |: |The best quality of spices which is produced using modern machinery and hygiene way. Always fresh |
| | |and good smell of the PRAN spice will ensure attractive smell and test in our day to day life. |
| | | |
|Product Quality |: |High quality Spice made from the natural raw materials in Bangladesh. |
| | | |
|Product style and design |: |It is a Powder type product and its packet is much attractive to the customer. |
| | | |
|Packaging |: |Pouch bag, Plastic Jar & Paper box. |
|Product verity |: | |
| | | |
| | | |
Price:
|MRP (PRAN) |
|Weight |Chilli |Turmeric |Coriander |
|50gm |16 |9 |8 |
|100gm |29 |16 |15 |
|200gm |55 |30 |28 |
|500gm |120 |62 | 60 |
Place:
Placement or distribution refers to how the product gets to the customer; for example, point of sale placement or retailing. Place included with channels, coverage, transportation and logistic support.
1. Distribution Channel:
PRAN has very strong distribution network. In fact, it is considered to be one of the best distribution networks in FMCG category market in Bangladesh.
2. Transportation:
PRAN company give free transportation facility to there distributor channel.
3. Coverage area :
PRAN covers whole Bangladesh and export abroad also in spice market.
Promotion:
The promotion tools of PRAN Consumer Limited are:
1. Advertising:
The advertisement program of PRAN Foods Limited is done through three media. Print media by giving advertisement in newspapers, magazines, and leaflets. Broadcast media to reach mass people by television radio etc. the corporate web-site provides necessary information about their company products and benefits of each product. The display media is used to inform customer about products and additional offer through billboards, banners signboard.
TV AD of PRAN spice.
2. Sales promotion:
PRAN has very strong distribution network. In fact, it is considered to be one of the best distribution networks in FMCG category market in Bangladesh. Through their distribution channels, various kinds of sales promotion are implemented to ensure product and brand activities are correctly managed.
3. Public relation:
PRAN Foods Limited is involved with different types of public interaction.
← Sponsored different types of program.
← Arrange effective promotional campaigns.
← House to Hose (H2H) camping.
← Occasional concert.
← PRAN moushumi Ranna Ghar.
← Cooking competition.
← Charity show.
← Etc.
All the above mentioned promotional tools are used to promote product within the country and PRAN Foods Limited is involved has set foot in the international arena.
❖ Competitors’ Activities:
|Radhuni |Arku |
| | |
|Brand Image. |Brand Image. |
|Pioneers in the spice sector. |High Awareness. |
|High indoor & outdoor presence. |Core Business. |
|Quality consistency. | |
|High market position. | |
|PRAN |Pure |
| | |
|Product is not well known to the potential consumers. |New product image. |
|Spice awareness low. |High e-media and billboard presence. |
|Better quality. |Consistency in quality. |
|Corporate brand image. |Attractive packaging & design. |
|No planned positioning strategy. |Long term positioning strategy. |
SWOT Analysis of PRAN spice:
← Strength:
1. Strong distribution network nationwide.
2. Moderate local brand image.
3. Huge coverage & sales force.
4. Attractive and only one plastic JAR of spice.
← Opportunities:
1. There is a huge opportunity for PRAN spice to take over the smaller players in the brand & non-brand segments.
2. There is only one big player (Radhuni) is playing in spice market; PRAN can take gorilla warfare policy to grab their market share.
3. PRAN can mention the price on product and that can increase the sell.
4. The advantage of umbrella branding is much helpful.
5. PRAN will develop a new AD communication film and give massive campaign.
6. The growth of powder spice market is increasing across the national boundary of Bangladesh. So PRAN can Aviles this opportunity by exporting spices in to those markets.
← Weakness:
1. Lack of Price tag or price identification on packaging is the major weakness for PRAN.
2. Target group awareness is poor.
3. Communication advertisements is so poor in relevant to the competitors.
4. Particular product focus is low due to having a lot of product in a group.
5. Product availability is so poor.
← Threat:
1. New rivalries are coming up by promising quality & brand image which is a threat.
2. Competitors are too much aggressive to capture the market which is alarming for PRAN spice.
3. Popularity of traditional beta spice.
4. Global spice producer can be attracted by the increasing growth of spice market.
5. Technological development or new equipment can pose threat to existing production process of powder spice.
4.10 Market competition:
The main competitor of PRAN is Radhuni, ARKU, PURE, and others. The summaries of competitors are given below:
← RADHUNI
RADHUNI Powdered Spices are made from selected variety of crops and seeds. All essential volatile oils of the spices are kept intact with the modern grinding technology. These powdered Spices ensure the taste and flavor of home grinded spices and can be used to prepare any of the desired dishes.
RADHUNI Powdered Spices has already owned the clear leadership in Bangladesh. Best varieties of quality raw materials are selected from the grower level strictly maintaining international quality standards. All essential volatile oils of the spices are kept intact with the fully equipped German grinding technology. These Powdered Spices ensure the taste and flavor of home grinded quality spices.
| |Chilli: | |
| |Radhuni powdered chilli is vivid in color, precious in flavor. Best | |
| |variety of red chilli provides more hotness. | |
| |Turmeric: | |
| |Apart from having excellent antiseptic and antibacterial properties,| |
| |it has a brilliant golden yellow color. | |
| |Coriander: | |
| |Providing a fragrant flavor Radhuni Powdered Coriander is high in | |
| |food value. | |
Price list:
|MRP (RADHUNI) |
|Weight |Chilli |Turmeric |Coriander |
|50gm |15 |8 |8 |
|100gm |29 |15 |15 |
|200gm |54 |29 |29 |
|500gm |128 |65 |68 |
Distribution:
SQUARE maintaining a strong distribution network for its spices in the country. At present a total no. of 112 (One hundred twelve) highly experienced distributors are engaged to market the products throughout the country.
Promotion:
Radhuni spice is captured maximum market share of spice industries through their attractive advertisement and other promotional activities which help Radhini spice to hold a leading position for a long time in spice industry in our country.
TV AD of Radhuni spice.
Paper AD of Radhuni spice.
← ARKU
Spice is the core product of ARKU. The brand image of ARKU spices has strong position in spice industry in Bangladesh. Huge amount of spice is exported to abroad. ARKU offer lots of flavor with different size of spice to consumers.
| |Chilli: | |
| |Selected fresh matured chilli dried in our own field. Grinding | |
| |in three steps by automatic machine from France and Denmark and| |
| |the dust are cleaned by dust collector. So the standard of the | |
| |coriander is maintained unhindered. Then packed in an automatic| |
| |machine without any hand touch. So before reaching to you the | |
| |quality is controlled in five steps. Hence use ARKU chilli | |
| |powder without any confusion and enjoy the natural taste, smell| |
| |and color of our local coriander. | |
| | | |
| | | |
| | | |
|Banglar lal Arku lal. | | |
| |Turmeric: | |
| |Selected fresh matured turmeric dried in our own field. | |
| |Grinding in three steps by automatic machine from France and | |
| |Denmark and the dust are cleaned by dust collector. So the | |
| |standard of the coriander is maintained unhindered. Then packed| |
| |in an automatic machine without any hand touch. So before | |
| |reaching to you the quality is controlled in five steps. Hence | |
| |use ARKU turmeric powder without any confusion and enjoy the | |
| |natural taste, smell and color of our local coriander. | |
| |Coriander: | |
| |Selected fresh matured coriander dried in our own field. | |
| |Grinding in three steps by automatic machine from France and | |
| |Denmark and the dust are cleaned by dust collector. So the | |
| |standard of the coriander is maintained unhindered. Then packed| |
| |in an automatic machine without any hand touch. So before | |
| |reaching to you the quality is controlled in five steps. Hence | |
| |use ARKU coriander powder without any confusion and enjoy the | |
| |natural taste, smell and color of our local coriander. | |
Price list:
|MRP (ARKU) |
|Weight |Chilli |Turmeric |Coriander |
|50gm |14 |8 |8 |
|100gm |28 |15 |15 |
|200gm |55 |28 |28 |
|500gm |120 |60 |60 |
Distribution:
The core product of ARKU is spice. They provide a various flavor of spice and mix spice also.
The company has a strong newly establish distribution channel in the whole Bangladesh; by which they reach the spice to their targeted potential customer.
Promotion:
ARKU spice is one of the popular brands in spice market in Bangladesh. ARKU tries to capture the market share through their unique advertisement and other promotional activities. ARKU plays different types of TV Ads. Billboard, paper AD etc.
Paper AD of ARKU spice.
← PURE:
The PURE spice is a newborn FMCG (Fast Moving Consumer Goods), which has been launched in Januray2008 with only a few numbers of flavors. According to the company, the taste, quality and hygienic process of product are the key for the success of their company.
Basically ACI is a well-known Pharmaceutical company of our company. But recently they launch spice, which is get popularity in very short time to the market. ACI offers a lot of flavor with different size of spice to the consumer.
| |Chilli: | |
| |PURE chilli powder is hygienically grinded and packed with | |
| |modern technology best variety of chilli to ensure the taste | |
| |and aroma of home-made coriander paste. | |
| | | |
|PURE | | |
| |Turmeric: | |
| |PURE turmeric powder is hygienically grinded and packed with | |
| |modern technology best variety of turmeric to ensure the taste | |
| |and aroma of home-made coriander paste. | |
| |Coriander: | |
| |PURE coriander powder is hygienically grinded and packed with | |
| |modern technology best variety of coriander to ensure the taste| |
| |and aroma of home-made coriander paste. | |
Price list:
|MRP (ARKU) |
|Weight |Chilli |Turmeric |Coriander |
|50gm |15 |8 |8 |
|100gm |30 |15 |15 |
|200gm |56 |30 |30 |
|500gm |120 |55 |58 |
Distribution:
ACI is a well-known Pharmaceutical company of Bangladesh. But recently ACI Foods Ltd launches spices “PURE”. In short time they provide a various flavor of spice and mix spice to the consumer. PURE gets the new brand image facility of spice industry in Bangladesh. The distribution channel of PURE is sufficient for the market.
Promotion:
ACI tries to use the corporate brand image to become in its promotional activities. PURE plays different types of traditional bangle culture based TV Ads. Billboard, paper AD etc.
Paper AD of PURE spice.
4.11 Photo Gallery (Space management)
In Mirpur, Radhuni, Arku, Pure, Fresh & Tiger brands spices are available in BDR shop, Kacha bazaar and different local retail shop but PRAN spices are mainly available in super shop (Agora, Minabazar & Prince Bazaar) and a few number of retail shop with a small quantity. Some pictures of shops spice space management are given below but BDR shop & super shop didn’t allow taking picture of inside their shops.
Mirpur – 1: Value Super Shop (Opposite Buddhijibi Sahidminar)
Mirpur – 1: Value Super Shop (Near Buddhijibi Sahidminar gate)
Mirpur – 1: Kacha bazar
Mirpur – 1: Kacha bazar
5.0 Customer Satisfaction Analysis on Spice market
For this part of the report, I conduct a survey on the Spice customers who lived in Mirpur, Dhaka. The questionnaire is divided into three section for an effective analysis, one is general findings of spice, second one is about PRAN spice and third one is others spices. After finishing the survey, the researcher found the following findings:
1. Demographic analysis on the responded:
5.1.1: Gender identification:
The objective of this section is to identify the gender distribution of the user of spice in Mirpur.
Figure – 1: From the survey it is found that, out of 100 respondent’s 96% consumer are female and only 4% are male. (Appendix – Table - 39)
In our country female are the main users of spice because cooking is done by them and some cases the husband of these women. So from the figure it is observed that the percentage of the female is much higher than male.
5.1.2: Education level:
Here it is tried to identify the education level of the respondents.
Figure – 2: From the survey it is found that, out of 100 respondents 42% customers are up to H.S.C, 22% are graduate, 18% are post graduate, 14% below S.S.C and rest 4% are others. (Appendix – Table - 41)
From the above information it is clear that most of the users’ education level is up to HSC. That the average customers of spice are well educated.
5.1.3: Standard of consumer:
In this section the occupation and income level of respondents are analyzed.
Figure – 3: From the survey it is found that, out of 100 respondents 70% of the (Chief wage earner) customers are service holder and 30% are businessman. (Appendix – Table - 40)
Figure – 4: From this graph it is found that, out of 100 respondents 30% customers income level is 15,000 – 20,000, 26% income level is 20,000 – 30,000, 23% income level is more than 30,000,14% income level is 10,000 – 15,000, 7% income level is 5,000 – 10,000 and no one is below 5,000. (Appendix – Table - 42)
From the above information it can be said that all income group use different spices according to their ability.
5.2 General analysis on overall spice market:
← Uses pattern of spice:
5.2.1: Using types of spice:
In this section the types of spices that the consumer uses for cook are analyzed.
Figure – 5: From the graph it is found that, 19.67% consumers use Bata Spice, 59.84% uses Packet (Powder) Spice, 20.49% uses breaking (Loose / Self made) Spice. (Appendix – Table - 41)
Most of the consumer uses the powder packet spice in Mirpur area. Because it can save time, have good quality & easy to use.
5.2.2: Reason for using powder spices:
Here it is tried to find out the reason for using powder spices.
Figure – 6: From the survey it is found that, out of 100 respondents 61.10% use powder spices for its good quality, 6% use for less price, 18.30% use for easy use and 13.70% use for convenient.
Most of the consumer uses the powder packet spice because of it can save time, easy to use, have good quality & convenience. Quality plays a major role in preferring powder spice. Because advertisement of different companies try to persuade spice users by focusing their quality.
5.2.3: Reason for preferring spices:
To specify some factors of purchasing spices were identified and asked to the respondents.
Figure – 7: From the survey it is found that, out of 100 respondents 13.42% use their preferred types of spices for its powder form, 42.28% use for scent & test, 21.48% use for cleanliness, 9.40%% use for price, 12.08% use for brand image and 1.34% use for others.
From above discussion, it can be said that the users’ major influencing factor for spice brand preference is scent & test of the spice. It happened because the scent & test make a dish testy.
5.2.4: Decision maker regarding purchase of spices:
Here it is tried to identify the decision maker regarding purchase of spice of a family.
Figure – 8: From the graph it can be said that, out of 100 respondents 75% purchase decision is taken by the husband of a family, 22% wife and 3% by others take the purchase decision.
Though mainly female are the majority of using spice but the purchasing decision are taking by the male because maximum cases they are the chief wage earner of a family and they go to the market for shopping. That is why the recent advertisement of spices tries to create brand awareness both to the husbands and wives who decided to purchase spices.
5.2.5: Place preference regarding spice:
In this section it is tried to find the place from where out the users choose to purchase spice.
Figure – 9: From the survey it is found that, out of 100 respondents 43.20% consumer purchase their spice from shop near by home, 20% from super shop, 29.60% kacha bazaar, 1.60% from direct promoter, 4% from any where and 1.60% from others which is not specified.
From the above information, it is clear that majority of consumer prefer to purchase spice from shop nearby home and kacha bazar. Almost all over the country the spice are available in the market. So distribution intensity is very important for spice market.
5.2.6: Purchase timing of spice:
Purchase time is most important for both promotion & distribution purpose. Through this the impact of seasonality (if any) can be found.
Figure – 10: From the graph it is clear that, out of 100 respondents 32.04% user purchase their monthly spice beginning of the month and 67.96% any time of the month.
From the above information, it is can be said that majority of consumers purchase spices any time of the month and second most major group purchase in previous month. So there is no major variation in purchasing spices through the month.
5.2.7: Variation in packaging:
The objective of this figure is to find out the variation in packaging of spice.
Figure – 11: From the chart it is clear that, out of 100 respondents 48.72% consumer prefer Polly pack for spice, 36.75% prefer plastic jar and 14.53% prefer box pack for use and store spice.
Here the information shows that, most of the consumer preferred Polly pack & some like plastic jar. Most consumers like the Polly pack because they can purchase it in different sizes & cheaper price.
← Brand choice for spice:
5.2.8: Brand preference of spice:
Here it is tried to find out the brand preference of powder spice in Bangladesh.
Figure – 12: From the survey it is found that, out of 100 respondents 87% users 1st preference is Radhuni spice, only 4% PRAN, 3% Arku and others 6%.
From the above information, it is can be said that, most of the consumers are aware about Radhuni spices. Now it is the most common spice brand in the market. They also take many promotional activities to attract the people.
5.2.9: Uses rate of mixed spice:
The objective of this graph is to find out the uses rate of mixed spices.
Figure – 13: From the survey it is found that, 16.83% consumer use mixed spice regularly, 76.24% use occasionally and others use 6.93% of mixed powder spices.
From above information, it is can be said that most of the consumer use mixed spice occasionally. For this reason the prices of mixed spice is higher than regular normal spices.
5.2.10: Attractiveness of spice packaging:
In this section it is tried to find out the attractiveness of spice packaging.
Figure – 14: From the chart it is clear that, out of 100 respondents 67.48% consumer attracted with the Radhuni spice packaging, 14.63% BD, 7% pure, 4.07% Arku, 5.69% PRAN, and 1.63% others.
From above information, it is can be said that most of the consumer thinks Radhuni spice seems more attractive rather then any spices. Then the second choice is BD & Pure spice. Then comes to the PRAN spice.
5.2.11: Preferred Brand of consumer:
Here it is tried to find out the brand preference of spices.
Figure – 15: From the survey it is found that, the brand preference of PRAN spice is 2.91%, Arku 1.94%, BD 1.94%, Radhuni 86.34%, Fresh 1.64%, Pure 1.40% and others 3.83%.
From above information, it is can be said that most of the consumer preferred Radhuni spice rather then any other spices. Radhuni is the market leader & its quality. The perceived quality of Radhuni is better than PRAN.
← Role of media in purchasing spice:
5.2.12: Sources of information regarding recipes:
The objective of this figure is to identify the sources of information regarding recipes, which is followed by the consumer for cook.
Figure – 16: From the survey it is clear that, out of 100 respondents 41.17% consumer follow the recipes on TV program, 2.94% follow magazine, 38.24% follow both TV program & magazine, and 17.65% don’t interest to follow the recipes.
From above information, it is can be said that most of the consumer preferred the TV program recipes & some preferred magazine & both all preferred by some consumer. So the TV advertisements & programs would give more promotional benefits for spices.
5.2.13 Use of TV media:
Here it is tried to identify the use of TV media in a day.
Figure – 17: From the chart it is shows that, out of 100 respondents 26% consumer watched TV below 1 hour, 58% 2-3 hours and 16% others activities.
From the above information, it is can be said that most of the consumers watch TV 2-3 hours per day. Some are below 1hour.
5.2.14 Preference in TV media:
Here it is tried to find out the types of TV program which consumer generally watch.
From Figure – 18: From this figure it is shows that, out of 100 respondents 45% consumer prefer drama on TV, 39% prefer news and 16% prefer magazine program.
From the above information, it is clear that most of the people like to see drama & some watch news too. So these two times are the main focusing time to promote the customer about the product.
5.2.15. Cooking programs preference in TV media:
The objective of this figure is to identify what % of people watch cooking program on TV channels.
Figure – 19: From the survey it is found that, out of 100 respondents 87% consumer watch the most popular cooking program Siddiqa kabir’s Receipi (NTV), 7% ATN Ranna Ghar and rest 6% others.
From above information, it is clear that most of the people like to see the recipe program mainly the siddiqa Kabir’s recipe which is telecast in NTV.
5.2.16. Regular use of newspaper:
Here it is tried to find out regular use of newspaper brand generally people read.
Figure – 20: From the survey it is found that, out of 100 respondents 54% user reads the most popular daily news paper in Bangladesh The Prothom Alo, 10.61% The Jugantor, 7.08% The Ittefaq, 5.31% The Jonokontho, .88% The Independent and 22.12% others.
From above information, it is clear that most of the people like to read ‘The Prothom Alo’ because it is now the most well known newspaper in our country. So advertisement in The Prothom Alo would give us more coverage.
5.2.17. Uses of magazine:
The objective of this figure is to identify magazine uses of generally people.
Figure – 21: From the graph it is found that, out of 100 respondents 8.7% read Sapthahik-2000, 13.42% Jaijaidin, 3.85% Annodin, 27.88% Shananda and 46.15% read others magazine.
From above information, it is clear that the mostly people like to read ‘The Prothom Alo’ paper but the magazine like to read the middle and upper level of consumer.
5.2.18. Spice brand re-calling:
In this section it is tried to identify the recalling of brand spice advertisement.
Figure – 22: From the picture it is clear that, out of 100 respondents 59% user can recall the advertisement of spice and 41% can’t recall any advertisement of spice.
From above information, it is state that most of the people can recall the AD of any spice which they seen before. Because the spice ad mainly given the time they usually watch TV or other things. Mainly the ad of spice is quite popular to the people.
5.2.19. Uses pattern of leisure time:
Here it is tried to find out uses pattern of leisure time of the consumer.
Figure – 23: From the graph it is clear that, out of 100 respondents 48.25% user watching TV, 3.5% playing, 20.98% listening music, 17.48% gossiping and 6.99% others activities.
From the above discussion it can be said that most of the people spending their leisure time by watching TV programs. Some of the people also spend their time through playing & listening music.
5.3 Analysis on PRAN user
← Over all satisfaction for PRAN spice
5.3.1. Preferred types of PRAN spice:
In this section it is tried to identify the preferred types of PRAN spice to the customer.
Figure – 24: From the survey it is found that, out of three respondent 66.67% user of PRAN spices like Chilli spice, 29.33% like Turmeric and only4% like Coriander.
From the above information it can be said that customers are user of mainly the chili spice & their second choice is turmeric. In case of cooking, mainly these spices are needed. So customer are used these two regularly.
5.3.2. Reason of consuming PRAN spice:
Here it is tried to identify the reason of consuming PRAN spice.
Figure – 25: From the survey it can be said that, out of three respondent 37.50% consume PRAN spice for its quality, 12.50% for its packaging and 12.50% for its Price.
Most of the customer use chilli spice & turmeric spice mainly for quality & test of the spice. So it can be said that test & quality are the main strength of the PRAN spice.
5.3.3. Level of satisfaction regarding brand expectation of PRAN spice:
The objective of this figure is to identify Level of satisfaction regarding brand expectation of PRAN spice.
Figure - 26 it is clear to us that, out of three respondent 100% brand expectation comes from PRAN.
The customers of PRAN spice are fully satisfy about their expectation to the Brand. So it is clear the brand can fulfill their customer demand perfectly.
5.3.4 Level of satisfaction reelected to PRAN spice quality:
|Statement |Types of |Total score |Average |Result |
| |Statement | |Score | |
|4. |I’m fully Satisfied with the overall |Positive |14 |4.7 |Nearly fully agreement Position. |
| |quality of PRAN spice | | | | |
|5. |PRAN gives the best quality spice. |Positive |13 |4.3 |Over agreement Position |
In this section it is tried to find out the customer perceived satisfaction about the quality of PRAN spice.
According to the graph, respondents are agreed with the quality of PRAN spices. So, it can be said the quality of PRAN spice are quite satisfactory from the perspective of the customer.
5.3.5 Level of satisfaction reelected to PRAN spice packaging:
In this section it is tried to find out the customer satisfaction about packaging of PRAN spice.
Figure – 28: From the survey it is found that, out of three respondent 66.67% user satisfied with the quality of packaging PRAN spice and 33.33% user fully satisfied with the quality of PRAN spice are .
Most of the customers of PRAN spice are satisfy about the packaging of the product.
Here it is tried to find out the customer dissatisfaction about the packaging of PRAN spice.
|Statement |Types of |Total score |Average |Result |
| |Statement | |Score | |
|1. |I’m totally dissatisfied with |Negative |8 |2.7 |Nearly medium |
| |packaging. | | | |position.(neither agree or |
| | | | | |disagree) |
According to the graph, respondents are nearly medium positions (neither agree nor disagree) with the packaging of PRAN spice. So, it can be said the packaging of PRAN spice are quite good from the perspective of the customer. From the above two questions the researcher tried to cross check the satisfaction related packaging.
5.3.6 Level of satisfaction reelected to PRAN spice price:
The objective is to find out the customer satisfaction about pricing of PRAN spice.
|Statement |Types of |Total score |Average |Result |
| |Statement | |Score | |
|2. |I’m fully satisfied with the pricing of |Positive |10 |3.3 |Over medium (neither agreed |
| |PRAN spice. | | | |nor disagreed) position. |
According to the graph, respondents are over medium (neither agreed nor disagreed) position with the pricing of PRAN spice. Most of the customers of PRAN spice are satisfy about the pricing of the spice. But some of they want more reasonable pricing.
5.3.7 Level of satisfaction reelected to distribution:
In this section it is tried to find out the Level of satisfaction reelected to distribution.
Figure - 31 From the graph it is clear that, out of three respondent’s 33.33% consumer holds positive position with the statement and 66.67% disagree with the statement.
Most of the customers of PRAN spice are satisfy about the pricing & quality of the product. But they did not get the PRAN spice when they need. So, it cab be said that the product is not properly available in the market.
← Level of satisfaction reelected to product promotion
5.3.8. Source of information about PRAN:
The objective of this figure is to know the source of information about PRAN spice.
Figure – 32: From the survey it is found that, out of three respondent’s 100% consumer know about PRAN spice from TV media.
Mainly the customers know about PRAN spice from the TV media. Now a day’s TV media is most effective sector. So people know most of the thing form TV media.
5.3.9. Recall any AD of PRAN spice:
In this section it is tried to find out the customer can recall any ad of PRAN spice.
Figure – 33: From this graph it is clear to us that, out of three respondent’s 100% consumer can recall the AD of PRAN spice.
Mainly the customers know about PRAN spice from the TV media. Now a day’s TV media is most effective sector. And almost all people can recall some AD of PRAN spice.
5.3.10. Attractiveness of PRAN spice TV ad:
The objective is to find out the attractiveness of PRAN spice TV ad to the customer.
|Statement |Types of |Total score |Average |Result |
| |Statement | |Score | |
|3. |The Advertisement of PRAN spice is |Positive |8 |2.7 |Nearly medium |
| |attractive. | | | |position.(neither agree or |
| | | | | |disagree) |
According to the graph, respondents are nearly medium position (neither agree nor disagree) with the TV advertisements of PRAN spice. The advertisements are not so attractive to most of the customers. From here it can be said that the advertisement of PRAN in TV media should be improved.
4. Analysis on other brand user
← Pattern of last consumption
5.4.1. Last purchased brand:
Here it is tried to find out the brand of spice which the consumer last consumed.
Figure - 35 From the survey it is found that, 84.54% last time consume Radhuni spice, 7.22% are others, 6.18% are Arku spice & PRAN spice is only 2.06%. & there BD spice has no consumption rate.
Most of the customers last consumed brand is Radhuni spice. Radhuni is available in the market all the time so the most customers consume it.
5.4.2. Perceived difference between PRAN spices and others:
In this section it is tried to find out the difference between PRAN spice & other spice.
Figure 36: From the graph it is shows that the difference between PRAN spice and others are 55.37% user says quality, 25.62% advertisement, 2.48% price and 16.53% others reason.
The main difference between PRAN spice & other spices are quality, advertisement, availability.
5.4.3. Reason for brand switching of spice:
In this section it is tried to find out the reason of brand switching.
Figure 37: From the survey it shows that, 56.70% have ever consumed PRAN spice & other 43.30% did not consume it.
Figure 38: From the graph it is found that, 45.24% did not consume PRAN spice recently because of low quality & test, 9.52% have not any specify reason.
Most of the customers did not consumed PRAN spice recently because of advertisement and quality. These happen because of the dissatisfaction of advertisement & insufficient product in the market.
← Consumer awareness related to PRAN spice:
5.4.4. Recall AD of PRAN spice:
The objective of this figure is to find out if the other spice user can recall any ad of PRAN spice advertisements.
Figure 39: This graph shows that, 27.84% user can recall the AD of PRAN spice and 72.16% can not recall.
Mainly the other spice user cannot recall the advertisement of PRAN spice. PRAN spice ads are not so attractive in TV than the competitors.
5.4.5. Source of information regarding PRAN spice:
In this section it is tried to find out the source of information regarding PRAN spice from the other spice user.
Figure 40: From the survey it is clear that people know about PRAN spice from 2.06% billboard, 7.22% newspaper, .06% relatives, 5.15% retail shop, 83.51% TV media.
Mainly the other spice users know about PRAN spice from the TV media.
Overall consumer satisfaction for PRAN spice
|Statement |Types of |Total score |Average |Result |
| |Statement | |Score | |
|1. |I’m totally dissatisfied with packaging. |Negative (-) |8 |2.7 |Nearly medium position.(neither |
| | | | | |agree or disagree) |
|2. |I’m fully satisfied with the pricing of |Positive (+) |10 |3.3 |Over medium (neither agreed nor |
| |PRAN spice. | | | |disagreed) position. |
|3. |The Advertisement of PRAN spice is |Positive (+) |8 |2.7 |Nearly medium position.(neither |
| |attractive. | | | |agree or disagree) |
|4. |I’m fully Satisfied with the overall |Positive (+) |14 |4.7 |Nearly fully agreement Position. |
| |quality of PRAN spice | | | | |
|5. |PRAN gives the best quality spice. |Positive (+) |13 |4.3 |Over agreement Position |
From this it can be said that the perceived satisfaction related to product availability and packaging is satisfactory. But the satisfaction related to availability and advertisement is low. So it is found that out of 4P`s (Marketing Mix) product and pricing strategy is good. But promotion and distribution strategy of PRAN is not satisfactory enough.
6.0 Major Findings:
1. In our country women are the main users of spice because cooking is mostly done by them. There are males as well who also cook in the kitchen but the percentage of the female as user of spice is much higher than male. Though mainly women are the majority of using spice, the purchasing decision is taken by the male because in the maximum cases they are the chief wage earner of a family and they go to the market for shopping. That is why the recent advertisement of spices tries to create brand awareness both to the wives and husbands, who decide to purchase spices.
2. The average education level of the actual users is up to HSC. The income groups among the consumers use different spices according to their ability.
3. Maximum consumers use the powder packet spice in Mirpur area. Because it saves time, has good quality and easy to use.
4. There is only one giant market player (Radhuni) for spice market. So it is easy for PRAN to reach the consumer and create market demand and good position in the market.
5. Quality plays a major role in preferring powder spice. Because advertisement of different companies try to persuade consumers by focusing their quality of the products.
6. The users’ major influencing factor of spice about the brand preference is scent & taste of the spice. It happens because the scent & taste make a dish delicious.
7. Usually consumers of spice prefer to purchase spice from the shops near the home and kacha bazaars any time of the month. So the distribution intensity is very important for spice market.
8. In case of packaging, most of the consumers prefer Polly pack & Plastic jar. Most of the consumers use mixed spice occasionally. For this reason the prices of mixed spice is higher than regular spices.
9. Particular product focus is low due to having a lot of product in a group. Lack of Price tag or price identification on packaging is a major problem for PRAN. Pricing strategy should be considered very carefully. Because market leader Radhuni’s price is lower than PRAN. And the Square’s product, Radhuni’s position is very high to the consumers. They assume that it provides the best quality with good pricing.
10. Maximum numbers of consumers are aware of Radhuni spice and seem more attracted to it than any spices. Then the second choice is BD & Pure spice. Then come to the PRAN spice. The consumers preferred Radhuni spice rather than any other spices. Radhuni is the market leader for its quality and distribution intensity. The perceived quality of Radhuni is better than PRAN.
11. Advertisements of PRAN spice are not satisfactory and customers’ demand oriented. Advertisements that are given broadcasting are not telecasting. And telecast advertisements are not even up to the mark. It should be in customers’ program schedule so that target group of customers can be familiar with the product.
12. Most of the consumer preferred the TV program recipes & some preferred magazine & both of preferred by some consumer. The consumers like to watch TV drama & news average 2-3 hours a day. So these two times are the main focusing time to promote the product to the customer. Most of the consumers like to see the recipe program mainly in the Siddiqa Kabir’s recipe which is telecast in NTV. The TV advertisements & sponsored cooking related programs would give more promotional benefits for spices.
13. Most of the target consumers like to read ‘The Prothom Alo’ because it is now the most well known newspaper in our country. So advertisement in The Prothom Alo would give us more coverage.
14. Most of the consumer can recall the advertisement of any spice which they saw mostly in the TV. Because the spice ads are mainly given at the time when they usually watch TV drama and news. They also saw other advertisements than TV ads. However the advertisement of spice is more popular to the consumers.
15. The customers are user of mainly the chili spice & their second choice is turmeric. In case of cooking, mainly these spices are needed. So the customers use these two items regularly. Most of the customers use chilli spice & turmeric spice mainly for quality & taste of the spice.
16. The customers of PRAN spice agreed with the quality. So, it can be said the quality of PRAN spice is quite satisfactory from the perspective of the customer. They are nearly at the medium position (neither agree nor disagree) in the packaging of PRAN spice. The respondents are over medium (neither agree nor disagree) position with the pricing of PRAN spice. Out of three respondents most of the customers of PRAN spice are satisfied about the pricing of the spice.
17. Most of the customers of PRAN spice are satisfied about the pricing & quality of the product. But they did not get the PRAN spice when they needed. So, it can be said that the product is not properly available in the market.
18. Mainly the customers know about PRAN spice from the TV media. They possess nearly medium position (neither agree nor disagree) with the TV advertisements of PRAN spice. The advertisements are not so attractive to most of the customers. From here it can be said that the advertisement of PRAN in TV media should be improved.
19. Most of the customers last consumed brand is Radhuni spice. The main differences between PRAN spice & other spices (Radhuni) are quality, advertisement and availability. Other spice users first knew about PRAN spice from TV media but they can’t recall any advertisement of PRAN spice.
20. The perceived satisfaction rate related to PRAN spice availability and packaging is satisfactory. But the satisfaction rate related to availability and advertisement is low. So it is found that in the overall situation out of 4P`s (Marketing Mix) product strategy is good. But pricing, promotion and distribution strategy of PRAN is not satisfactory enough.
7.0 Recommendation:
1. Lot of opportunities & scopes are available in this segment for reaching PRAN products to the traditional, untouched & non users of the community. Significant development of technology and improvement of the life standard have made the spice product popular in the market. So it is a great opportunity for PRAN.
2. As spice is a convenient product and in the spice market there is only one giant player that is (Radhuni) in the market so PRAN has to be the best by defeating Radhuni with the effective product and pricing strategy. Sponsoring cooking program and looking books to attract the house wives is a nice and effective way for PRAN brand promotion.
3. The rate of working ladies has been increasing significantly and life standard has been improving with the development of technology. So PRAN has to ensure providing information about the benefits of processed spice and its usage and quality. They have to make the working ladies and housewives believe that PRAN can understand completely about their desires, wants and demands.
4. PRAN should take steps specifying their target group of different locations and zones. They have to promote their brand and their product according to the standards of life style.
5. Variety of spices would be helpful and attract customers to use in their daily cooking life and make them sure that through this product they will make their family happy.
6. PRAN is the market challenger in the spice market. PRAN has no synchronized target group for their spice market. They have the general target group. All types of spices should be focused carefully according to the demand of market.
7. PRAN has improved awareness about the using of spices for family’s daily hygienic foods. For this, effective promotional tools should be developed and administrated.
8. PRAN has to improve focus on particular product so that customers can be well known about the product.
9. Price tag and identification and date of manufacturing and expiry on packaging should be ensured.
10. Advertisements of PRAN spice should be customers’ demand oriented and focused on clearly about the basic needs.
11. Pricing strategy should be considered very carefully as it is a convenience product. Because of its absence price of the same PRAN product varies a lot in different markets. It should take cost plus pricing strategy.
12. PRAN should keep and develop their distribution network according to market size and demand. Strong distribution network for PRAN can help to reach the product to the consumers effectively & efficiently.
13. There should be more telecast advertisements in an efficient way. It should be in the customers’ program schedule either the starting or at the ending or in the interval of drama, Bangle movies and cooking program. So that target group of customers can be familiar with the product.
8.0 Conclusion:
Science has given us the light of developed society and it contributes to our daily life in all sectors. And consumers' growing awareness about hygienic spices and busy urban life has led to rise in branded spices consumption. Thus spice which is a very essential item for preparing food has changed its traditional form into a more scientific and hygienic powder form to make the cooking easier and tasty. It not only increases the taste of foods but also enhances the art of cooking, and brings a pleasant moment for housewives. The spice market is growing since consumers are showing reluctance to go for traditional systems of processed spices. So we should accept it positively to our daily life to get the opportunity to make our life easy and hygienic. And PRAN processed powder spice to make the best alternative for the consumers. They have all the scopes and facilities that they need. The only thing they have to do it just be a bit more aggressive in the market by solving a few of errors that they have.
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Figure - 22: Spice brand re-calling
Figure - 21: Uses of magazine
Figure - 20: Newspaper generally read
Figure - 19: Cooking programs preference in TV media
Figure - 18: Preferred programs
Figure - 17: Use of TV media
Figure - 16: Sources of information regarding recipes
Figure - 15: Preferred Brand of consumer
Figure - 14: Attractiveness of spice packaging
Figure - 13: Uses rate of mixed spice
Figure - 12: Brand preference of spice
Figure - 11: Variation in packaging
Figure - 10: Purchase timing of spice
Figure - 9: Place preference regarding spice
Figure - 8: Decision maker regarding purchase of spices
Figure - 7: Reason for preferring spices
Figure - 6: Reason for using powder spices
Figure - 5: Using types of spice
Figure - 4: Income level of consumer.
Figure - 3: Occupation of consumer.
Figure - 2: Education level
Figure - 1: Gender identification
4.9 SWOT Analysis of PRAN spice
Consumers
Retailer
Whole seller
Distributor/ Dealer
Production
Auto van/ Rickshaw van
TSS form company side
4.8 Marketing MIX (4Ps) Analysis of PRAN spice
PRODUCT
PROMOTION
PLACE
PRICE
Marketing Mix
4P’s
End
Users
Marketing intermediaries
Competitors
Company
(Market)
Suppliers
Consumers
Retailer
Whole seller
Distributor/ Dealer
Production
Auto van/ Rickshaw van
TSS form company side
Assistant Brand Manager
General Manager (Brand)
Sales
Department
Accounts
Department
MIS
Department
R & D
Department
Marketing
Department
Finance
Department
HR
Department
Executive Director (PRAN)
Chief Executive Officer (CEO)
Managing Director (MD)
Executive Director (Mktg)
Deputy Managing Director (DMD)
Chairman
Figure - 23: Uses pattern of leisure time
Figure - 24: Preferred types of PRAN spice
Figure - 25: Reason of consuming PRAN spice
Figure - 26: Level of satisfaction regarding brand expectation of PRAN spice
Figure - 27: Level of satisfaction related to spice quality.
Figure - 28: Level of satisfaction of PRAN spice packaging
Neither agrees nor disagrees
Figure - 29: Level of dissatisfaction of PRAN spice packaging
Figure - 30: Level of satisfaction of pricing of PRAN spice
Figure - 31: Distribution of PRAN spice
Figure - 32: Source of information about PRAN
Figure - 33: Recall any AD of PRAN spice
Figure - 34: Attractiveness of PRAN spice TV ad
Figure - 35: Last purchased brand consume
Figure - 36: Perceived difference between PRAN spices and others
Figure - 38: Why did not consumed PRAN spice recently
Figure - 37: Ever consumed PRAN spice
Figure - 39: Recall AD of PRAN spice
Figure - 40: Source of information regarding PRAN spice
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