internship report bokchud group

7/30/2019 Internship Report Bokchud Group

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Introduction:

No knowledge is fully complete unless it is fully supported by events on ground. Whatever

may be the quality of theoretical knowledge, it is n complete without practical implications

on ground. This realization more pronounce in the study of Business Administration where

ccperience on ground plays a dominant role.

Masters of Business Administration (M.B.A.) is specialized course. The course is designed

with an excellent combination of practical and theoretical aspect. After completing the

M.B.A. program, three months preserved for internship program. This internship program is

very bnportant for M.B.A. students. This program helps M.B.A. students to g an initial

experience about the practical field. As a student of M.B.A. with the partial fulfillment of the

course requirement I was gned to Shah Cement Ind. Ltd Corporate Head office, 13 Dilkusha,

I have tried my best to use this opportunity to enrich my knowledge on Marketing Sector of

Prome Agro Foods Ltd, Dhaka. After observing thoroughly, I have completed this report on

the basis of my findings and observation relating to the topics.

1 2 Objective of the study

Ey rk has its own objectives. So the main objectives are to fulfill the ..„lemic requirements for

the degree of Masters of Business Administration A). More specifically the objectives of the

study divided in to two categories.

Main objectives are as:

1. To measure the customer satisfaction

2. To know the perception of the people toward select a Brand in consumer goods Industry.

— oiUve obiectives:

The study covers the following supportive objectives: -

1. To learn about Prome Agro Foods Ltd

2. To learn about user of Prome Agro Foods Ltd

3. To find the problem & prospect of Prome Agro Foods Ltd

4. To know about the customer demand of Prome Agro Foods Ltd

5. To suggest some recommendation for improving the operational efficiency to satisfy the

client.

6. To evaluate their customer satisfaction.



I ha tried my best to touched and discussed about all of above-mentioned point ii my report &

give the report to a complete shape. So that anyone can .mderstand about Prome Agro Foods

Ltd.

1. 3 Methodology

• The study of the customer satisfaction of Prome Agro Foods Ltd is based on theoretical and

analytical. So the data collected by systematic investigation. The most important thing of the

study was collected necessary Information and data. The general sources of data collection

are:

• Interviews

• Questionnaires

• Reference Books,

• Journals and Periodicals

The source on which report has been made is secondary one. This is not a primary source.

Because haven‟t used the directly had to collect is as a secondary

ffCC.

I collected my information and data from two sources:

1.3.1 Primary sources:

These types of sources include following:

1. Practical field work with the help of assistant managers.

2. Personal interview of assistant managers.

3. Face to face conversation with the senior managers and managers.

4. Observation of the total export tasks.

1.3.2 Secondary sources:

These types of sources include the following:

1. Brochure Of Prome Agro Foods Ltd

1 4 Problem Statement:

1.4.1 lime Constraints:

In preparing the report time was the principal constraint. As my Internship program was only

for two months, it was difficult for me to figure out the report with absolute information and



required data. For the report and proper presentation after internship program It needs much

time for preparation.

1.4.2 Data Constraints:

Last few decades our cement industries have developed much with its ,ources and

collaborations. But comparison to Western countries we have the different of few more

decades realized (by me) when I tempted to collect essential and required data. These are still

scarce hi our country whether it is primary or secondary data.

1.4.3 Experience Constraints:

To prepare and produce such kind of report properly it is needed ecpeilences. In preparations

of the internship report, also used my previous faculty experience although it is needed much

more. I think experienced could have different a great deal.

1.4.4 Organization Constraints:

As a competitive organization, it has a great deal of hidden information that is not possible to

present in the report. As interns of Prome Agro Foods Ltd, I tried to find out possible

information. So this is also one of the bmitations of my report.

GROUP PROFILE

PROME-.Agro Foods Ltd

Head office: 46, Abdullahpur, Uttara Dhaka-1230

Branch Office: 744, Uttarkhan, Dhaka-1230

Introduction

Prome Agro Foods Ltd is a concept to fight poverty & hunger in Bangladesh in the shortest

pcle time through employment generation. Twenty-five years ago the Group started btEiess

with a vision: to create employment opportunities for its rural compatriots. Tim Gotç focused

on agriculture & agro-processing. Agriculture in Bangladesh is an

ecld vocation but considered fit only for rural peasantry. They have been exploited by . —

.LI&men and seldom receive fair prices for their products. They are destined to live at

eistence level and in abject poverty. Agriculture was never considered commercially

ich less as an industry.

The Group was born in 1981 and it has diversified its business into various areas and it grown

over the years. Today it is a large Group with diversified interests. At ,.reimt, the Group



consists of 11 companies with 10 modem factories around the coudry. The Group head

offices are located at Dhaka- the capital city of Bangladesh & Sie different agro-growing &

processing units & factories are located around the country.

COMPOSITION OF PROME AGRO FOODS LTD

maw Foundrvitd (RFIJ

Rongpur Foundry Ltd (RFL), Prome Agro Foods Ltd‟s first venture set up in 1980 has been

bwmed from a small cast iron foundry into a major diversified industry covering cast Eon,

plastic and engineering industries catering to the mass market for agricultural *ment and

machinery such as tube-wells, hullers, piston rings & liners, centrifugal pinps, stoves etc as

well as PVC pipes, fittings, rope, furniture etc. Production is Eicreasingly being sub-

contracted out to small workshops in North Bangladesh thus readlng technology and income

generation activities to small operators. The first ever .ports of plastic pipes took place when

RFL exported these to Tripura, India.

L lass Ltd (RL);

RFL plastics Ltd- one of the sister concern of Prome Agro Foods Ltd, Bangladesh. PROME

— Agro Foods Ltd irled its journey in 1981 with the manufacturing cast iron products

specially to ensure pae (frg water for the masses, providing cheap irrigation facilities to the

framers and making rw l icr.

grew steadily over the last 27 years and slow gained its recognition for its expertise in cg high

quality & cost effective products for its customers. Accordingly the group has

á,uai&d its business activities in PVC & PLASTICS.

L Plastics Ltd. managed by a professional organization has already established itself as one of

leading manufacturer and exporter of quality molded PLASTIC products in addition to cast

ion products at home & abroad with the brand name RFL.

At present RPL has got molded plastic products in the following category: Furniture,

Kitchenware, Table ware, Bathroom ware, House ware, multipurpose ware, Gannent

accessories

L hse already set up a benchmark for competitors on the lines of quality and elegance W

man&acturing premium quality products to give clients excellent services and true

,e for their money.



is committed to achieving highest level of customer satisfaction by continuous ivrovement of

human resources in production and marketing of its products using adwaiced technology that

ensures continuous growth. RFL has already achieved ISO 9001 certifications for its quality

management system, accordingly a defined system & pocechires has been developed through

the organization. Best raw materials are amaced & products are produced as per ISO &

British standards that ensure the highest ci customers‟ satisfaction

I --„ Marketing Co Ltd

launched in 1985 as an agro-business venture to:

& Aseist small farmers by providing inputs

b. Uket farm produce

C. (ganize contract growers with a view to growing specific crops

d. Eqot ricultural produce

Soon transpired that a processing facility was imperative for a sustainable enterprise. ANCL

therefore set up a factory on 8 acres of land in Ghorashal & machinery was

jistalled for betting & canning in May 1991.

ibe factory has expanded substantially over the last several years in all spheres of food

processing i.e. pulping, pickling, concentrating, dehydrating, bottling, canning as well as

installation of Bangladesh‟s first aseptic packaging facility.

Machineries for all these lines are being installed, expanded, modified & fabricated inuo.

AMCL with its brand PROME have twin objectives: achieving social values with

aiiable pecuniary gain for all our stakeholders.

PROME FOODS LTD (PFL) was established in 1996 as a private limited company to

explore the inmense possibilities & potentials in agricultural sector of Bangladesh. PFL is

trying to create wealth by adding value to farm produce & increasing their shelf life & so

generating employment & income in rural areas.

Presently PFL is buying & processing potato, pulse, corn etc. for the manufacture of iallty

food items like chips, chanachur & related snacks, crackers & confectionery items ii a

modem, hygienic & state-of-the-art plant.

PROME Dahv Ltd

Aiming at meeting the nutrition demand all over the country by procuring, processing,

peckaging & marketing of pure drinking milk & products at affordable prices, PROME IRY

LTD started its operation in 2002. It was established as a private limited ccnpany & the

factory is situated at Narsingdi.



We „e the country‟s first aseptic pack introducer in milk category having latest technology for

piocessing & packaging. Currently PROME DAIRY is processing Ultra High Temperature

(UHT)

ii aseptic pack, pasteurized milk, powder milk, flavored milk & other allied products. The iy

has already achieved ISO-9001, HACCP & Halal certifications.

PKAN Afro Ltd

PROME AGRO LTD was established in 1999. Objective of this Company is to work as a

*“awd h*age industry for PROME; as such we are involved in collection & processing d breit

seasonal fruits & vegetables. Accordingly state-of the-art plant & machineries h been

installed. Additionally, the Company is involved in the production of finished pcJcts Nke

tomato ketchup & sauce, ffied peanuts, spices, juice, chutney, pickles, j.njeIy, vermicelli etc.

PROME B.v.raae Ltd

PRPN Beverage Ltd was established in 2004 at PROME Industrial Park, Palash, Narsingc.

which is 55 km away from the capital city Dhaka. Primary objective of this Coaipay s to

produce quality beverage in the country & eventually establish itself as a sigrc player in the

growing carbonated beverage i.e. cola market in Bangladesh.

PRAII Exports Ltd

serving millions of consumers at home successfully, PROME has focused on

qorts to serve the billions abroad. With this end in view, a 100 percent export oriented

Ccnany has been formed called PROME Exports Ltd in 2004. The aim of the Company

— to market all types of PROME Group products abroad.

At present PROME is the largest exporter of agro-processed food items in Bangladesh.

bi recognition of the extraordinary performance in exports, PROME has achieved the bestpro

ssed agro food exporter trophy for the last three consecutive years.

Qrrently PROME products are regularly being exported to 64 countries all over the globe. or

export markets are Asia, Middle East & Africa.

AN Confectionery Ltd

PROME Confectionery Ltd was established in 2005 to introduce quality confectionery and

other VOI items with a view to grab the immense potential of confectionery business in

Bangladesh well different export markets; currently our confectionery portfolio consists of

different sugar besed products i.e Hard Boiled & Deposited candy, lollipops; Gum based



products i.e bdb4egum, ball gum etc; Soft chewy products & Chocolate based products i.e

Liquid chocolate, hffce, beans etc.

rzza Aaro Processing Ltd

MnEig at meeting the increasing demand for fine & quality rice at home & abroad, 1GA

AGRO PROCESSING LTD (BAPL) started its journey in the year 2000. BAPL is iwod m

processing & packaging of fine & quality rice & marketing the same in local &

— mkets.

PROME is the first and largest fruits & vegetables processor company in

BnnIiii4esh. The company has celebrated its Silver Jubilee in the year (2006).

As the first fruits and vegetables processor company in Bangladesh it earns the

jesaigious distinction certificate ISO-9001, HALAL & HACCP. PROME is an abIihed brand

in Bangladesh and has a well-developed infrastructure for

1woduction, sales & distribution. It has been exporting products to 72 countries around the

world with brand registration in 32 countries including Asia, Europe and Africa.

1.1 HISTORiCAL BACKGROUND OF THE COMPANY

a. Serve mI1 farmers with inputs.

b. Markcting farm produce for profits.

c. contract growers to grow specific crops.

d. Ezpwls of agricultural produce.

Soes I apparent that a processing facility was imperative for a sustainable venture. cfr,e t up a

factory on 8 acres in Ghorsal with machinery for bottling and canning

y 1991. The factory has expanded substantially over the last 9 years in all spheres dkod

processing e.g. bottling, canning, pulping, pickling, concentrating, dehydrating as

as installation of Bangladesh‟s first Tetra-Pak facility and a modem Extrusion plant mack

food. Machinery for all these lines are being installed, expanded, modified and bricated

continuously.

AN1ZAT1ONAL STRUCTURE:

Bengladeshi corporate culture incorporating in it all the applicable concept of good

maiagement as practiced in the developed countries.



SdIed professionals hold key managerial posts developing & building the capacities of SW

subordinates through intensive training, exposure to similar external positions and en-the job

supervision.

Responsibilities and accountability are clearly defined for managers who are mostly young

but well-educated. Chains of command ensure that decisions are taken after due deIIeration

and diligence.

Ccithnuous training has become a way of life in the organization.

bi ipile of rapid growth industrial units of Prome Agro Foods Ltd have established benchks

for harmonious relations between labour and management.

Ieanai resource development and organizational capacity building is always in high foam of

the management.

ity assurance, hygiene and sanitation parameters and other checks & balances are Eirporated

in the production lines and in the standard operating procedures in the odes. Both AMCL —

PROME and RFL are ISO 9001-2000 certified and PROME has also oned HCP & HALAL

Certifications.

The Group is driven by a strong sense of social responsibility as a enshrined in its acronym :

PROME” and its corporate mission statement which are the focal point of all endeavors of

the Group.

PARTICULARS OF DIRECTORS:

GqneraI Am,Iad Kja ChowdhuyRetd):

Ma Genera Amjad Khan Chowdhury (Retd), Director of the company & CEO of

PROMEAgro Foods Ltd is an established Industrialist and business man of the country who

served m Pdstan & Bangladesh Army with distinction having held high positions in field as

well

I. After retirement from Army he started his own business setting up of Rangpur Foww*y Ltd

— RFL in 1981. He is a notable social worker and is associated with different socio-a*ural

organizations.

.Mun Khan Chowdhury

. Ahsan Khan Chowdhury, is the son of Gen Chowdhury. After completing his BBA

*Gn USA, he joined the group as Executive Director & later promoted as Managing Obector

of RFL. He is a dynamic young man and has been playing a vital role in veIoping the group‟s



business by actively & dedicatedly participating in day to day management. He is responsible

for day to day operational activities of the group reporting to the Chief Executive.

Ms Sabiha Amiad:

Ms. Sabiha Amjad wife of General Amjad, is a highly accomplished lady with masters in

Eormornics & English. She has been in business for the last 20 years having helped in bhing

Property Development in 1983. She has keen interest in business of the oup and has gained

appreciable practical experience in involving industrial activates of lie Group.

A simple overview about PROME AGRO FOODS LTD

OBJECTIVES

Marketing Objectives:

„Maintain positive steady growth each month.

4ncrease market penetration every quarter.

„Generate increased brand awareness quantified by reactions/feedback of

Coiners at the trade shows.

• Product introduction

• Product awareness

• Company and product image building

• Product loyalty forming

• Building goodwill

• Communication with the consumer

• Building “top of the bead”. Consumers get brainwashed after looking at

adveitisements

!I.ancial Objectives:

•Decrease customer acquisition costs by 1% a quarter.

Continue to decrease variable costs through efficiencies gained from experience.

•lzcase 1xofit margins by 0.5% per quarter.

Profit making Co1npete in global market Build-up business

SCOPE

1. Mketing mix analysis

2. Distribution system



3. Specific Recommendation

4. Limitations finding.

3. Analisis of data.

6. Learn export procedure.

7. Learn corporate culture.

8. Know about export items.

9. Build-up handling capability

10. Learn about foreign market.

COMPANY AIM

1. PROME wants to generate employment.

2. They want to earn dignity & self-respect for their compatriots.

3. Increasing long-term market presentation by using technology and equipment to develop

new products and improve current products.

4. Creating and implementing working environment both in plant and office.

PRODUCT POSITIONING STRATEGIES

The product is a mango fruit juice, which we would like to position as a Healthy alternative

to carbonated beverages and other artificial sodas and drinks & foods. The mango juice will

add variety to the diet for the people of UAE. That is why we want to position Prome foods a

fast moving consumer good in UAE. To huge Bangladeshi expatriates living in UAE, Prome

will also serve a national symbol and be a source of

PRICING STRATEGY

We think that since there is a number of competing brands in the mango juice market, Prome

should follow the market pricing strategy. The penetrative pricing policy should be used in

Prome‟s case because BANGLADESH is country with low per capita income ($ 1000)

money is a factor to the conswners in BANGLADESH. Also the fact that there are a kA of

high profiled brands, which are already quite competitively priced, makes iiaiet,ation pricing

less appropriate.

MARKETING MIX OF PROME



The marketing mix is one of the major concepts in modem marketing. We define uwketing

mix as the set of controllable, tactical marketing tools that the firm blends to produce the

response it wants in the target market. The many responsibilities are collected into four

groups of var iables known as the “4 P‟s”: product, price, place and promotion.

hoiht is the thing that can be offered to market for attention, acquisition, use or .cII.11.nption

that might satislr a want or need.

PROME has several types of food products. It is Bangladesh‟s largest grower and processor

and vegetables. Their growers cultivate the choicest fruits and vegetables, which

— c pocessed in their modem and hygienic factories to highest quality & international iI.ds.

PROME tries its best to serve its customer the best product.

PROME follows marketing concept in terms of product and price. At first they fmds the ns l

wants of the consumers and then they try to meet these need & wants through ibeir products

and makes profit by long term customer relationship. But they think more th custoine?s

satisfaction rather than the profit.

PRODUCT

AMCL has a predominant retail market presence for more than a decade. The agroprocessing

company of the group, properly named as “AMCL-PROME”, has in the ntinie accessfully

established its name and prominence, which promoted the otors to rename “Property Group”

as “PROME” and they create it as a licensed

Figure ======

&snd And the brand name is also easy to pronounce, recognize and remember. It is

distinctive and registered. With its wide brand awareness, it is recognized in terms of quality

and food safety. Its market share is well secured by its brand name “ PROME” and li name is

available at every niche and corner of the country and thus it has become a husthold name.

At Kit in average consideration PROME products are in the growth stage. But in D — 1gbitcth

PROME has occupied the leadership in juice market. But a few days ago They



dr diallengers to the “Sezan”. They can occupy the leadership within a short time bce of its

quality, target market and competitive advantages. But in other products I ks, aackers and tea

they are the followers.

Chart=====

WAN expects that the non-refundable beverage market have an obvious growth opportunity

in Bangladesh. Non-carbonated beverages have made their footage and grabbed substantial

market share, fuelling a quick shift in preferences from carbonate to non-carbonated

beverages. PROME has tremendous growth opportunity with the increase in literacy and

health consciousness among the urban population people who will be 1ined to natural

processed fruit drinks as opposed to carbonated soft drinks.

PRICE

is the amount of money charged for product or service or the sum of values that amsumer‟s

exchange for the benefits of having or using the product or service. PROME considers

competitor‟s prices and other internal and external factors to fmd the best price.

Sije Bangladesh is a developing country the demand of juice is lower than other ai..dzy. Here

people are not very much concern about health. In Bangladesh the demand of carbonated

drinks like Coca-Cola, Pepsi, RC Cola is much higher than fruit juice. So, PROME has to

fight with these strong competitors everyday. Now-a-day PROME only has 14% shares in

beverage market where Coca-Cola and Pepsi have 38% and 30% shares. So, their main

marketing objective is to survive in this competitive market. In order to survive PROME

offers as low price as possible.

In the organizational consideration it approves the prices proposed by lower level nnagement

or sales-people. In the term of pricing the organization considers descending order. The sales

people give the information about the pricing and promotions of the competitors and the

consumers demand and satisfaction about their price to the top management. Then the top

management decides about the pricing of their products.

PROME‟s great competitors are Coca Cola, Pepsi, RC Cola, Sun fill, and Slice, They have

occupied 86% market shares. Only 14% market shares are occupied by PROME. As there are

many buyers and sellers in beverage market PROME follows monopolistic competition. Tlir

pricing decisions are buyer oriented. The management sets the price of the



PROME follows cost based pricing. Their follow descending order in pricing

Organogram====

Fig- The decision making process in pricing strategy

System. They add a standard markup to the cost of the product to gain profit but if the

awnpetitors change their price PROME has to change their price. The top management

considers the information given by the sales people to set the price of their product.

PLACE

Place includes company activities that make the product available to the target customers.

Distribution channels do these jobs perfectly. They perfonn various functions like

information gathering, promotion, contact, negotiation etc. PROME‟s marketing channel is

indirect marketing channel. It has an intermediary level between manufacturer and camers.

The level is retailer. PROME uses channel 2 as their distribution channel.

fl wtxle AMCL has an independent marketing department, which is responsible for dcgning

marketing plans and strategies and implementing them. It has developed ne programs for

promoting all products in order to create a new customer base and to ntain existing level of

demand. PROME‟s major strength is the distribution network with 263distributors spreading

all over the country.

In order to support its operations, PROME has developed a full-fledged and independent

sales department. There are 40 supervisor executives to monitor the field forces and overall

sales performance of the company. These executives visit the distribution regularly. The sales

team collects orders and lifts the refundable bottles from the diatributors. These distributors

cover the 64 districts and 489 Thana areas perfectly.

PROME follows conventional distribution channel. Its retailers are individual and have iqiate

business seeking to maximize its own profits. PROME doesn‟t have any control s. the

retailers. They sell their products to the retailers and the retailer‟s resale the iroducts to the

customers.

When the company faces any types of problem in distribution channel it takes the help of

third party finn. For sometimes this party controls their distribution process.



In the distribution strategies PROME follows intensive distribution. They stock their oducts

in as much as possible. And they serve the products to the market when the atomers need

them.

J‟RAN and its distribution channel are very much concerning about the price policies,

awkhtion of sales and specific services performed by each party. PROME provides list pice

and discount to the retailers. The retailers also perform their jobs perfectly.

Sales & Distribution Network

Countrywide Distribution Network

• Company appointed Sales FoPROMEe all over the Country Sales Network

• 70 Executives

• 486 Sales Representatives (Selling to retailers all over Bangladesh through

Dn

• Country Divided by Sales Zone Distribution Network

• At this moment total Distributors are 345

Figure==

i3ROiO

Promotion means activities that communicate the merits of the product and persuade target

customers to buy it. In the term of advertising PROME uses informative and persuasive

advertising. Generally they use persuasive advertising for their building brands but in case of

their new products they use informative advertising to inform the customers about their

products. In the case of creating budget PROME follows percentage- of-sales method.

PROME spends 8-10% of their yearly sales for advertising purpose.

PROME prefers television as the advertising media. They prefer it for some purposes, such -

in Bangladesh television is the media, which reaches to their target customers who live in the

town, and it has a great impact on the viewers. In term of rural people they use radio

commercial in local dialect The message of PROME is “PROME for health” or “Deshi r

beshi shwad”. A firm named “Property development” is engaged in PROME‟s advertising

jobs.



PROME offers premium goods such as car as a promotional tool. They also offer Newspaper

coupons and free gifts with every purchase to the customer who is expected generate

consumer trial and penetration. Special POP items like buntings, caps, Tshirts are also

offered. IncentIves, like attractive stickers are offered with every purchase k give them better

value for money. Press advertising on important national or cultural events like New year,

Victory Day etc are published.

To build public relation PROME provides diary, calendars, pens etc to their regular

customers. They publish annual reports for their stack holders. They have also some

competitive advantages. Such as-

Diversified products base allows the customers to enjoy a higher degree of

fienty.

Countiywide distribution through well-established network ensures that the products ,rdi to

the customers in good shapes and on time.

.Rcpation with financiers, including local and multinational institution provides ability oIain

adequate financing promptly and at competitive prices.

•The brand name image “PROME” has been successfully promoted and carries goodwill.

PROME informs consumers about product benefits through these promotions and for these

types of activities they can create a position on the consumers‟ minds. So, various marketing

programs are launched to promote sales as well as to further develop the image of the

company as the prime agro-based food processing industry of the country.

Advertising & Promotion

h-heuse advertising agency provides full advertising support. Major emphasis is on TV

advertisements as this is the most popular Media available. 50% of the annual budget is

dedicated to TV. New ads for Mango Juice Bottle, Aseptic Juice, Tea Radio, Press, Cinema,

POS, Outdoor ads (Billboards, Wall Painting) also used in promotion Outdoor coverage

(PROME Branding) all over Bangladesh.

Promotional Objectives

The main promotional objectives of PROME are:

Product introduction

Product awareness

Company and product image building



Product loyalty forming

Building goodwill

Communication with the consumer

BF \ t Fl IS HR

• Good Quality Products conforming to local tastes, health & hygienic standards.

Affordable price within the reach of target consumers.

• Available everywhere all the time.

• Local product but of international standard

BIt1 Fç)Ui1V

T1 more the brand equity the strong is the brand, the better the position.

Organogram====

Figure: Brand Equity Diagram

LI‟\1[[i )S OF 1 iêF (O\I 1‟A\\

An advertiser always has limitations. While making an ad the company as well as the

advertising firm has some limits. Almost all companies face these limitations. T1 limitations

that PROME was faced with were as follows:

• Time: The ad firm was given a time within which they had to fmish the ad, as the launching

of PROME happened much earlier than scheduled.

• Lack of advanced technology: In Bangladesh the ad producer face the problem of having to

use technology that it a bit back dated. This decreases the quality and

the special effects. The advertising firm did the best with what they had.

• Money: This is another important factor. The company gave the advertising firm an ad

budget. The producers had to work within that. But it is not always true that

the ad will be better if the money spent on it is very high.

Export mechanism in Prome Agro Foods Ltd Part: 1 introduction of export

Definition of export



The definition of “export” is when you trade something out of the country. In economics, an

export is any good or commodity, transported from one country to anher country in a

legitimate fashion, typically for use in trade.

In national accounts “exports” consist of transactions in goods and services (sales, h.ter, gifts

or grants) from residents to non-residents. The exact defmition of ckpolls includes and

excludes specific “borderline” cases. A general delimitation of exports in national accounts is

given below:

• An export of a good occurs when there is a change of ownership from a resident to a non-

resident; this does not necessarily imply that the good in question physically crosses the

frontier. However, in specific cases national accounts impute changes of ownership even

though in legal terms no change of ownership takes place (e.g. cross border financial leasing,

cross border deliveries between affiliates of the same enterprise, goods crossing the border

for significant processing to order or repair). Also smuggled goods must be included in the

export measurement.

• Export of services consists of all services rendered by residents to non- residents. In national

accounts any direct purchases by non-residents in the economic territory of a country are

recorded as exports of services; therefore all expenditure by foreign tourists in the economic

territory of a country is considered as part of the exports of services of that country. Also

international flows of illegal services must be included.

Advantages of exporting

Owflership advantages are the firm‟s specific assets, international experience, and the ability

to develop either low-cost or differentiated oducts within the contacts of its value chain. The

locational advantages of a particular market are a combination of market potential and

investment

Iiernationalization advantages are the benefits of retaining a core ampetence within the

company and threading it though the value chain rather than obtain to license, outsource, or

sell it. In relation to the Eclectic paradigm, companies that have low levels of ownership

advantages either do not enter foreign markets.

If the company and its products are equipped with ownership advantage and internalization

advantage, they enter through low-risk modes such as exporting. Exporting requires

significantly lower level of investment than her modes of international expansion, such as



FDI. As you might expect, the lower risk of export typically results in a lower rate of return

on sales than possible though other modes of international business.

In other words, the usual return on export sales may not be tremendous, but neither is the risk.

Exporting allows managers to exercise operation control but does not provide them the option

to exercise as much marketing control. An exporter usually resides far from the end consumer

and often enlists various intermediaries to manage marketing activities.

Disadvantages of exporting

For Small-and-Medium Enterprises (SME) with less than 250 employees, selling goods and

services to foreign markets seems to be more difficult than saving the domestic market. The

lack of knowledge for trade regulations, cultural differences, different languages and foreign-

exchange situations as well as the strain of resources and staff interact like a block for

exporting. Indeed there are some SME‟s which are exporting, but nearly two -third of than

sells in only to one foreign market. The following assumption shows (1w main

disadvantages:

• Financial management effort: To minimize the risk of exchange -rate fluctuation and

transactions processes of export activity the financial

management needs more capacity to cope the major effort

• Customer demand: International customers demand more services from their vendor like

installation and startup of equipment, maintenance or

more delivery services.

• Communication technologies improvement: The improvement of communication

technologies in recent years enable the customer to interact with more suppliers while

receiving more information and cheaper communications cost at the same time like 20 years

ago. This leads to more transparency. The vendor is in duty to follow the real-time demand

and to submit all transaction details.

• Management mistakes: The management might tap in some of the organizational pitfalls,

like poor selection of oversea agents or distributors

or chaotic global organization.

Part: 2

Eiport procedure



To expo1t products, a company should follow the following documentation.

1. Order collection from buyer.

2. Prepare sales contract.

3. conduct with buyer

4. Confirmation of sales contract.

5. Give job order to factory.

6. Prepare commercial invoice.

7. Prepare packaging and weight list.

8. Issue EXP (export permission).

9. Give DO/DR.

1O.Select bank.

II .prepare vat-Il

12.Send CNF documents.

13.Shipping line confirmation.

1 4.Inspection.

15.Send buyer document.

16.Collect freight invoice.

17.CO preparation.

1 8.Collect B/L.

19. Send bank document.

20.Submission of cash incentive papers.

Part: 3

Export in Prome Agro Foods Ltd

PRA1I.L GROUP was born in 1980. Keeping in view the corporate mission of the group we r

the years diversified our activities. Today we are the largest processors of fruits & . —„Ies in

Bangladesh. We encourage contract farmers and help them grow quality crops with .z:i yields

and to obtain fair prices. The Group comprises of 10 companies. The head ..... we located at

Dhaka with production facilities around the country. Our management is

“PROME” is currently the most well known household name among the millions of people

• Bng1adesh and abroad also. Since its inception in 1980, FRAN Group has grown up a ue

and became the largest fruit and vegetable processor in Bangladesh. It also has fr distinction

of achieving prestigious certificate like ISO 9001:2000, and being the I.gcst exporter of



processed agro products with compliance of HALAL & HACCP to we than 70 countries

from Bangladesh.

PROME is the pioneer in Bangladesh to be involved in contract fanning and procures raw

material directly from the farmers and processes through state of the art machinery at our

several factories into hygienically packed food and drinks products. The brand “PROME”

established itself in every category of food and beverage industry and can boost a product

range from Juices, Carbonated Drinks, Confectionery, Snacks, and Spices to evai Dairy

products.

Today, our consumers not only value “FRAN” for its authentic refreshing juice drinks

products , but also for its mouth watering quality confectionery products with high visual ql

and exciting texture. We intend to expand our presence to every corner of the and strive to

make “FRAN” a truly international brand to be recognized globally.

Major Market:

Mai.r Exports Destination

Angola, Australia, Austria, Bahrain, Belgium, Benin, Brunei, Burkina Faso, Bhutan,

Cameroon, Canada, Capo Verde Islands, Chad, Congo, Cambodia, Cyprus, Cabinda,

Djibouti, Eritrea, Equatorial, Ethiopia, France ,Guinea, , Gabon, Gambia, Germany, Ghana,

Greece, Guyana, Haiti, India, Italy, Ivory Coast, Japan, Jordan, Korea, KSA, Kuwait, Kenya,

Liberia, Lebanon, Malaysia, Mali, Mauritania, Mauritius, Myanmar, Mayotee, Maldives,

Nederland Antilles, Nepal, Niger, Oman, Pakistan, Palestine,Papua new Guinea, Qatar, RCA,

Reunion Islands, Senegal, South Africa, Sierra Leone, Singapore, Somalia,Sri Lanka, Sudan,

Sweden, Switzerland, Togo, UAE, UK, USA, Yemen and Zimbabwe.

Figure ========

Fwort.Ø 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 I Jelly in Glass Jar, Cup & bulk, Spices, Mustard Oil, Mineral Water,



Spices, Dehydrated Fruits, Tomato Ketchup / sauce in Glass Jar, Cmdies, Bubble Gum, Ball

Gum, Molasses, Lollipop, Cup Jelly, and Vita Plus etc.

FRAN. s Exports basket Item in detail

1. Juice in Tetra Pack -1000 ML, 250 ML, 200 ML. 125 ML and 65 ML ( Mango, Orange,

Pineapple, Guava, Fruit Cocktail, Litchi,)

2. Juice in Tin Can — 250 ML (Mango, Orange, Pineapple, Guava, Fruit Cocktail, Tamarind

and Banana)

3. Juice in Glass Bottle -250 ML ( Mango, Orange, Pineapple, Guava, Fruit Cocktail,)

4. Juice in Pet Bottle — 1000 ML , 500 ML and 250 ML (Mango, Orange, Fruit Cocktail)

5. Carbonated Soft Drinks( Cola and lemon)

6. Drinks in HDPE Bottle — 1000 ML, 400 ML and 170 ML (Mango, Orange, Fruit cocktail,

Pineapple and Litchi)

7. Drinks in Fruit shape Plastic Tube — 50 ML (Mango, Orange, Fruit cocktail, Pineapple and

Litchi)

8. Candy (Hard Boiled , Deposited, Chew and Medicated)

9. Toffee (Coffee and Chocolate)

10. Confectionary ( Cup jelly, Candy, Ball Gum and bubble Gum

11. Snacks ( Chanachur, Chips, Dal Vhaja, Badam Vhaja, Puffed Rice, Chira Vaja, Thai

Muri, Moa Etc)

12. Biscuits( Toast, Soft Dough Biscuits, Dry Cake)

13. Aromatic Rice (Small and Medium Grain)

14. Culinary Item( Lachcha Semai, Noodles, Vinegar, mustard Oil, Sauce, ketchup, Rose

water, Moricha Gur, Ghee)

15. Jam and Jelly ( Mango, Pineapple, Mixed and Orange)

16. Pickles and Chutney (Mango, Olive, Mixed, Chilli, Garlic, Satkora, Boroi, Naga Chilli)

17. Spices ( Chilli, Turmeric, Coriander, Cumin, Curry, Mix Masala, Whole Chilli, Tez pata,

Supari)

18. Mango Bar, Penut Bar

Import



As the largest food processing company of Bangladesh usually we import the following to

mast our requirements:

*qrk: Cassava powder, Corn Grits, Orange Concentrate, Potato starch, Potato gran.ifris

powder milk, Peanuts, pulses & beans, onion, chili, ginger etc

C — : Ascorbic Acid, Beta Carotene, CMC, Citric Acid, Caustic Soda, Hotmelt,

Iktassium Sorbet, Xanthan Gum, Different Flavors, Confectionery raw material.

_-- Materials : Aluminum Foil, Crown Cork, Flexible Packing material, Glass RUle, Glass

Jars, HDPE, Lug Cap (30, 53 & 63mm), PET, Shrink Labels, Shrink caps, Th Can, U-Straw.

QUALITY CERTIFICATIONS

Agricultural Marketing Co Ltd- PROME is the first food processing company in gIfe8h to

achieve the prestigious distinction ISO 900 icertification for their quality

management system. This supreme certification ensures that PROME Products reach the

cumers table maintaining the highest level of quality. I addition to ISO, PROME has get

international certifications like HALAL & HACCP.

& Distribution Network

to make the Group‟s products available at the every knock & corner of the country WAN has

developed the best sales & distribution network all over the country.

To ensure fast & smooth distribution companies has set up 9 distribution depots & have

appointed more than 1000 dealers all over the country.

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. Vaiumer Benefits

• International quality Products

• Competitive price

Wide rage of products that meet the requirement of the consumers of all ages & groups to 70

countries of the 6 continents all over the globe. Major export markets are Asia,

Middle East & Africa.

PROME-RFi_ „oup works with almost all the local & multinational banks available in the



F_

• Hong Kong Shanghai Banking Corporation-HSBC

• Sidard Chartered

• CITIN.A

• Commercial Bank of Cylon

Prime Bank Limited

Standard Bank Limited

Bangladesh Krishi Bank

Arab Bangladesh Bank

Eastern Bank Ltd

Dhaka Bank Ltd

Sonali Bank

Janata Bank etc

çrent Export Volume by TIC

Average Sales per Month -100 Crore

ort Growth last Few Years

ACHIEVEMENTS OF PROME AGRO FOODS LTD:

The Group‟s major achievement has been to try to consolidate fragmented land holdings and

to organize farmers into „contract growers‟ of specific crops for consumption in PROME‟s

major processed products. With the elimination of the middlemen, farmers receive fair prices

for their produce & due to technical assistance from the agro-processing industry; yields,

quality and income have risen considerably. Poverty alleviation through profitable enterprises

is now a reachable goal for many farmers. This resolution is perhaps PROME ‟s greatest

achievement.

The Bangladeshi farmer is still the principal beneficiary & prime focus of the enterprise. The

Group‟s achievements include:

• Most diversified product range in two prime areas: food & plastic

• The largest processors of fruits & vegetables in the country with 200 product hnes

• 100 product lines in light engineering & plastic sector

• Its products are manufactured in six different locations spread all over the country

• Employs some twenty thousand people: men & women

• Over forty thousand families subsist on Prome Agro Foods Ltd



• Sources its raw materials from contract growers

• The largest exporter of agro-processed products in the country

• The Group comprises two listed corporate

PROME in Dhaka & Chittagong stock exchanges with blue chip status and

• The Group is still growing.

GOODWILL IN BUSINESS COMMUNITY:

The Group maintains excellent reputation with the financial institutions & trade bodies. It

acts as adviser to Government policy making and reform bodies primarily relating to

agro-processing.

Chief Executive of the Group, Maj Gen Amjad Khan Chowdhury (Retd) was the Founder-

President of Bangladesh Agro-Processors‟ Association (BAPA), and Real Estate Housing

Association of Bangladesh (REI-IAB) and a past Vice-President of Metropolitan Chamber of

Commerce & Industry (MCCI).

The Group is well represented in other trade bodies of the country such as Federation of

Bangladesh Chambers of Commerce and Industry (FBCCI), Metropolitan Chamber of

Commerce & Industries (MCCI) and Dhaka Chamber of Commerce & Industry (DCCI).

Executives of the company retain close liaison with the principal trade bodies of the country.

A few Challenges faced in foreign market

Products pricing Problem to compete with the World class competitor

• Food labeling Information problem Uk -USA

• Hygiene regulation and Treat us like a Third world country

• Diplomatic Mission Absent in Dhaka (Many African countries). As a result importers from

Africa are disagree to come and deal with us as a well as the visit of our sales Representatives

to Africa are very difficult, because we need to go through Delhi for Visa (Africa is very

potential market)

• India needs all products Lab test from CFL but CFL is located in Kolkata or Guwahati This

is done for each and every consignment & It takes at least 15 -25 days to get the CFL report,

as such the Indian authority doesn‟t allow to go any products inside Indian market until they

are getting the CFL report and India doesn‟t accept BSTI I BCSIR/SGS/B1VAC report of

Bangladesh.



• Investment problem for the foreigners in aboard i.e. KSA. impose additional duties and

taxes on earnings.

• Banking Negotiation problem Potential i.e. African buyers like to operate their L/C through

their local banks but it is not accepted by our Bangladesh Banks unless it is backed by a

European, American and Asian Bank.

Steps to take a large Share of the Global Pood market

1. Competitive Price offering to Foreign market

2. Media communication buildup to spread our self.

3. Active promotional activities ensuring

4. One stop communication insists with the Buyer

5. Day to day packing and labeling development as per latest labeling regulation of the world.

6. To get maximum out put of production we are using hi-technology based machinery

7. Attend in different International food and drinks World class fair i.e. Anuga fair

(Germany) SIAL fair ( France) , Gulf fair (Dubai), Malaysia fair, Chicago fair(USA) etc

8. To 100% share from Bengali community people of the World we are doing different

activities.

9. Quality assuring for the first world country.

10. Followed- HACCP, ISO, GMP, TQM, Waste control, Pest Control, Environmental

obligation Etc.

11. Developing Item and packaging as per Global Consumer aspects

ENDING SUMMARY

In this report we have douc the analysis of marketing activities of”PROME”. We have given

some range of products along with prices.

Ranges of the products are:

• Fruit juices

• Drinks Beverages

• Natural Mineral water

• Household items

•Tea

• Dairy products

• Snacks



• Confectioies

• Biscuits

Moreover we mentio,zd the sales and distribution network and the countries where they

export the goods.

And lastly we have illuil the ways of promotional activities that persuade the customers to

buy the lwohKls.

(.(YCLUSION

I think the anocesa of a iroduct almost totally depends on the advertising campaign. You have

s the iaaioi a, which a company has to go through to produce a cessfng

There has to be a edied marketing plan and a strategy to go with it. The company has to keep

the 4 Ps in mind Before doing the above the company must define its promotional objective

and goal.

The com1y then has to do market segmentation so it knows where the market for its product

really lies. It is also important to keep the competitors in mind and to analyze its competitive

advantages and to bank on it.

Every advertising has a policy, budget, timing and media. It is very important to decide on

the media, as it is the medium of communication. Last but not the least it is important to

measure or find out the reaction of the customer, as the feelings of the customer is the

advertisers‟ ultimate goal.

RECOMMENDATIONS

My recommendations are are:

• They should incr ease their marketing budget.

• They should increase their timing and ad frequency.

• Since 20% extra is their main competitive edge they should more focus it, by advertising the

fact, so that people know about it.

• They should have more frequent market surveys so that they know the reaction of the

customers regarding their campaign and product.

• Have their own ad production and creativity team since it is such a customer oriented

company, and hence has to spend uselessly on hiring ad firms to handle their campaigns.

They will most probably be more successful as they know more about their product and

customer than anybody does.

Other Recommendations:



1. Remove Dust Pollution

2. Wearing Selected Dress-code

3. Always uses mask and hand glaives

4. Adequate lighting system

5. Proper Sanitation

6. Tin floors are broken, so, as soon as possible repair the floor.

7. Excessive heat.

internship report bokchud group

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