Letter of Transmittal

Dear Miss

We are highly pleassed to submit the term paper on the micro and macro environment of a
company that you asked for and so we selected “PRAN-Rfl Group” . This term paper is an
essential part of our course and we tried our level best to work on it carefully and sincerely to
make it informative.

We have gathered information from the secondary sourcess which help us to go deep into the
formation as well as the growth of the company.

we have put our sincere effort to give this report a presentable shape make it as precise as
possible. We do believe that our tiresome effort will help you to get ahead with this sort of
venture. In this case it will be meaningful to us. However, if you need any assistance in
interpreting this assignment please contact us without any kind of hesitation.

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 Table of Content

Background Page 4

Micro environment Page 5-8

a) company Page 5

b) suppliers Page 6

c) competitors Page 6

d) customers Page 7

e) market intermediaries Page 7

f) publics Page 8

Macro environment Page 8-12

a) demographic environment Page 8

b) political environment Page 9

c) natural environment Page 9

d) economic environment Page 10

e) technological environment Page 10

f) cultural environment Page 11

Conclusion Page 12

Executive Summary

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This term peper is done to provide information about the marketing environment of PRAN-RFL
Group. PRAN-RFL group of companies is one of the leading business institutions of
Bangladesh. One of the major organisational goals of this company is to reduce povertyand
hunger through large scale employment generation. It is contributing directly to the economy of
the country through its co-operation with the farmers and export earnings.

This term paper mainly focuses on the marketing environment of PRAN-RFL group of
companies which includes both micro and macro environment. However, marketers need to build
good relationship with the customers and others in the company as well as with the external
partners. To have grip over this, there should be a proper understanding of the surrounding
network and its influence. As the micro environment of a company consists of the company,
customers, compititors, suppliers, marketing intermediaries and publics and the macro
environment of the company consists of the demographic, economic, natural, technological,
political and cultural environment, it affects the marketing capabilities of a management to build
good relationship with the customres. Therefore, successful companies like PRAN-RFL Group
watch the present environment to adapt themselves with the change of the environment.

The interest rates, inflatuin rates, tax policy, environmental law, trade restrictions, weather,
climate, technology incentives create impact on every aspect of the company. To keep pace with
the changing environment, PRAN-RFL Group has to analyze each factors of the marketing
environment.

Background

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PRAN stands for Program For Rural Advancement Nationally. PRAN is currently the most well
known household name among the millions of people in Bangladesh and abroad also. In 1980 for
the first time they become one of the largest company of Bangladesh. PRAN started its journey
as a processor of fruits and vegetables in Bangladesh and in 1981, PRAN and RFL merged
together. PRAN is the pioneer in Bangladesh which involves in contract farming and process raw
materials directly from the farmers. PRAN manipulate the materials by several factories in
hygienic ways. In addition, there are almost 30000 employees working in the company.

Over the years, PRAN has grown not only in dignity but also has contributed in the socio-
economic development of the country significantly. At this time, PRAN is one of the most
greatest and successful companiess in Bangladesh as well as in many other foreign countries.
The company is exporting their products in almost 106 countries. In addition, PRAN is
producing more than 200 products under 10 different catagories which are juices, drinks, mineral
water, baker,y carbonated beverages, snacks, culinary, confectionery biscuits and dairy. All these
products of PRAN are processed in a highly international standard level. Finally, PRAN is
certified with halal products in both national and international level.

Today costomers of PRAN-RFL not only value “PRAN-RFL” for it’s authentic refreshing juice
and other drink products but also appreciate other mouth-watering quality confectionary products
with high visual appeal and exciting texture. Therefore, it intends to expand to every corner of
the world and to make the company a truly international brand to be recognised globally.

Micro Environment

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Company

PRAN-RFL Group is the largest food and nutrition company of Bangladesh. It is the largest
exporter of processed agro products with the compliance of HALAL & HACCP to more than
106 countries. The company's principal activities are the manufacture and sale of fruit juices,
snacks, soft Drink, cakes and dairy products.

On the other hand RFL diversified its operation into the PVC category in 1996 and the plastic
sector in 2003.

Business
PRAN - The largest processors of fruits and vegetables in Bangladesh.
RFL – Cast iron, PVC and plastic items (including kitchen and sanitary items).
Property Lifts – Lift, elevator and generator.

“Poverty and hunger are curses”- is the mission of PRAN-RFL group. So, their aim is “to
generate employment and earn dignity and self respect for our competitors” through profitable
enterprises. For the achievement of this mission and aim, the most recognized PRAN-RFL group
was established and started manufacturing in 1982. Major General (Ret) Amazed Khan
Chowdhury, people of Natore, was the founder and the managing director of PRAN-RFL group.
His son Mr. Ahsan Khan Chowdhury is the deputy managing director of this group. PRAN-RFL
group is now one of the greatest and significant and most successful companies in Bangladesh.
They are now challenging the other multinational companies. Since its inception in 1980, PRAN
Group has grown up in stature and became the largest fruit and vegetable processor in
Bangladesh. It also has the distinction of achieving prestigious certificate like ISO 9001:2000,
and being the largest exporter of processed agro products with compliance of HALAL &
HACCP to more than 70 countries from Bangladesh.

RFL Stands for Rangpur Foundry Limited (It is a water pump and plastic pipe industry). From
the time being it has now 17 associated companies and they are beverage, property,agro based,
tube wells, plastic pipes, etc. these associated industries are in- Natore, Rangpur, Ghorashal and
Dhaka.

As “Poverty and hunger are curses” is the mission of PRAN-RFL group, their aim is “to generate
employment and earn dignity and self respect for our competitors” through profitable enterprise.

Vision—the vision of the company is to create a wonderful brand image throughout the world.

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 Suppliers:

Suppliers form an important link in the company’s overall customer value delivery system. They
provide the resources needed by the company to produce its goods and services. Supply shortage
or delays, labor strikes and other events cost sales in short run and damage customer satisfaction
in the long run. Raising supply costs may force price increase that can harm the company’s sales
volume. Food, fruits beverage, plastic furniture and plastic hanger are the main raw materials of
PRAN RFL group. The wholesalers are various warehouses. They are the largest food processing
and Plastic Manufacturing Company in Bangladesh having 7 offices across the world. Our
products are being exported to more than 72 countries of the world. The retailers are the grocery
shops avilable in the country.

Competitors:

The marketing concept states that to be successful, a company must provide grater customer
value and satisfaction than its competitors do. They also must gain strategic advantage by
positioning their offerings strongly against competitor’s offerings in the minds of consumers.
The close competitors of PRAN-RFL group are – Square food and beverage, ACI Foods and
Beverage, GAZI Plastic, AKIJ Food and Beverage.

Customers:

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Customers are the most important actors in the company’s microenvironment. The aim of the
entire value delivery system is to serve target customers and create strong relationships with
them. As a merger company, PRAN-RFL takes a big portion on the market share through Food
and Beverage also plastic products are dominating large portion in the market’s plastic products.
They produce goods for customer market. Consumer market consists of individuals and
households that buy goods and services for personal consumption. Business markets buy goods
and services for further processing or for using in their production process, whereas reseller
markets buy goods and services to resell at a profit. Government markets are made up of
Government agencies that buy goods and services to produce public services or transfer the
goods and services to others who need them. RFL group has customers of international markets
that consist of buyers in other countries, including consumers, producers, resellers and
governments.

Marketing Intermediaries:

PRAN’s trade partners are their great support. They care about their needs in the following ways:

 By listening to product complaints

 By providing information about price of product
 By giving information about address of dealer point
 By giving financial help
 By giving proper solution for any unwanted situation associated to their business.

Publics:

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 Most of the people of Bangladesh have potential interest in PRAN’s achievement. The probable
reasons are given below:

 Helping Mosque, Temple & Churches.

 Working together with Red Crescent.
 Collecting and donating blood.
 Working for the disabled.
 Working with ‘SAVE THE CHILDREN’.
 Helping the community in natural calamities and so on

Macro Environment

Every business is affected by macro environmental forces. They can increase or decrease the
need for your product, or create entirely new product needs. Raw material costs might be driven
up or down. New target markets might be created or old ones changed. What’s important for a
company is to identify those macro environmental forces that directly affect their business,
which means understanding the nature of those forces and how to identify and analyze them.

Let us now look at the macro environmental forces affecting the PRAN Group of Industries.

Demographic Environment
PRAN needs to create products or goods that appeal to those of different cultures, especially if
those cultural groups represent large enough segments of its market. Contrarily, manufacturers,
wholesalers, and retailers of PRAN avoid creating too many items that fall outside the norms of
society, such as products used years ago. An aging population may increase the demand for
spices, especially women those who love to cook. Then again, a decrease in birth rates may also
decrease the demands for baby products produced by PRAN.

Pran Frooto is the first ever fruit juice in Bangladesh that symbolizes Youth, Fun and the Real
Taste of Fruit but it has targeted customers of all ages. Pran Frooto 250ml is also affordable for
the majority of people as it costs 22taka

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PRAN produces products for all ages, genders, occupation, places, and society.

Political Environment
A number of political and social macro environmental factors affect small businesses in the
PRAN group of industries. The industry has been repeatedly affected by issues such as workers’
rights. Union workers in the manufacturing industry may picket their employers, especially their
wages or medical benefits are less favorable than workers in comparable industries. Workers
picketing their employers impacts production. This can cause delays for retailers in getting the
products on time. Activists who are not employed by the companies may also picket retailers
who purchase products from counties known for violating workers’ rights laws. This negative
publicity may impact small product retailers’ sales and profits. Also a trade embargo against
another company’s imports would force the wholesalers to find different suppliers.

Natural Environment
Nature is the source of raw materials for the production of a product. The raw materials used by
PRAN may be renewable, infinite, or depleting. The raw materials should be preserved and the
wastage must be minimized. Pollution should be minimized to preserve the ecology. Nowadays,
marketers try promoting the Eco Friendly Concept.

Economic Environment:

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Economic factors always come as vital issue to business organizations. It discloses the nature of
economic system of the country. Most of the companies are affected by ongoing economic
slowdown. It is an important factor which also create impact on PRAN-RFL group. The
company always needs to think about profitability, growth and to expand of the company. So,
they need to consider countries demand, supply, production, distribution, exchange rate, business
cycles and differential economic growth rates. Due to business operation both in Bangladesh and
other countries, PRAN-RFL group faces different scale of tax and revenue measurement. Again,
it faces difficulties because of the currency fluctuations, especially in the distribution of the
products. Consume of subsistence economies affect the agro food products and industrial usage
of the PRAN-RFL company. To capture middle class people both in Bangladesh and other
countries, the company offers good quality products such as furniture, electric materials, house
hold things at a cheaper rate. Furthermore, the company watches some economic variables like
income of the buyers, interest rate and borrowing patterns by using its economic forecasting.
Besides, Local economic condition is also responsible for affecting the company’s operation. If
the local economy of our country is critical, people are discouraged to spend more money for
purchasing the products. As a result, company gets affected.

Technological Environment:

It is said that technology shapes the future of the society. A company must watch the changes in
the technology for keeping track of competition and customer wants. In this modern world, the
pace of technological changes is very fast. Also, it’s environment works at the organization in
terms of investment in technology, consistent application of technology and the effects of
technology on business market. Besides, the impact of technological innovation is also
considerable to meet customer expectation. As one of the leading companies of Bangladesh,
PRAN-RFL group has created a technological environment which also has a great impact on its
business market not only in Bangladesh but also in other countries like India, Nepal, Sri lanka
and so on. As the company is producing agro food products like spices, chocolates, milk, chips
etc as their main products, the company needs to create the opportunities for the new products by
using more technology to succeed in the business market both in Bangladesh and other countries
and to compete with the other marketers or companies as well. Also, the company PRAN-RFL is
producing more household things, daily necessaries, electronic materials, furniture. So, the
company should concern for the safety of new products by using innovative technologies in

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purpose of their profitable business in the market, to make the customer satisfied and make
bonding with their quality products. Also, the use of equipment, special control device,
machineries in the factory, temperature regulator, and point of sales system, financial
information and communications are all linked to different technologies. In this way, technology
create a huge impact on the company.

Cultural Environment:

The cultural environment of a nation determines the value system of the society that affects the
marketing of products. Sociological factors such as caste structure, mobility of labor, customs,
cultural, heritage, etc. might have far reaching impact on business. Cultural environment also
determines the code of conduct that the company should follow for their business. Basically, the
lifestyle of people is being changed and the demand of this change affects the company, PRAN-
RFL. As it affects a society’s basic values, perceptions, and behaviors, the company should
create a business market based on that nation where they can maintain a good relationship with
the customer satisfied by applying their own cultural strategies such as their likes, dislikes,
tradition, core beliefs, values etc. In addition, this changing demand is different in society of our
country as well as other countries like India, Pakistan, Srilanka etc. As PRAN-RFL company is
doing their business not only in Bangladesh but also in the other countries, they have to analyze
the different culture and religion of the different regions customers of that country. They also
need to think about the culture, religion rules and tradition of the specific region or territory in
order to make their business profitable and to get strong relation from the customer of that
specific region or country. For example, in Bangladesh, we have different people of different
religion, of different culture, values, likes, taste etc. In Cox’s bazar, Rangamati, khagrachori and
all rural areas people generally eat more spicy food, their taste is different from other district
people. So, the company should maintain the supply of more spicy powder, masala, rather than
cheesy food products like bun, milk, chocolates in those areas. Besides, PRAN Company is
doing their business in Hindu religion based country like India. They must follow their culture,
tradition such as in holy festival, they used to have a different type of drinks, milkshake etc. On
the contrary, Muslim people of India prefer sweets, chocolates, biriyani masala etc. So, the
company needs to research the market and also need to provide halal or effective products to
those religious people of that country. Therefore, culture also affects the company largely.

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 Conclusion

As a merger company, PRAN-RFL not only takes a big portion of market share through Food
and Beverage but also plastic products are dominating large portion in the market’s plastic
products. By focusing on their marketing environment, it has become possible for the company
taking a stable position in the market share. PRAN-RFL group is successful to cope up with the
changing marketing environment by keeping their focus on both the micro and macro
environment of the company.

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 References

http://www.pranfoods.net/

www.saching.com/Articles/Marketing-Environment-270.html

http://www.suppliers.com/pran_rfl_group_e331717.html

http://www.hitc.company/1771818/products.html

http://en.wikipedia.org/wiki/PRAN-RFL_Group

http://www.rflbd.com/#

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