Presentation on

International Business

Topic:

Entry Strategy of PRAN-RFL company into overseas counties: “A study on Drinks, Bakery and confectionary items”.

Submitted to: Mr. Golam Mohammad Forkan Associate ProfessorEastern University

Submitted by:Jasfia Khanam FamaID: 133200105Group: 2Course Code: BUS 303Fall semester,2015Eastern University

An overview about PRAN-RFL Company:

• ‘PRAN’ has started its operation in 1981 as a processors of fruit and vegetable in Bangladesh.

• The organization later revealed that they can’t add more value in the agricultural based economy without entering into the production and entering into international market.

• Hence develop the idea of establishing PRAN.

Products: PRAN is currently producing more than 200

food products under 10 different categories sush as:

• Drinks: Juice, Mineral water, soft drinks, Energy Drinks.

• Bakery Items: cake, toasts and biscuits.• • Dairy farm products: milk

• culinary items: Rice, Dal, oil, spices, sauce & ketchup, Noodles, Soup.

• confectionary Items: chocolates, candy, toffee loly-poop, edible jell, Fruits Bar etc.

Bakery Items

Drinks Items

Confectionary Items

Gradually PRAN Company expands and after meeting the huge domestic demand it started to do international business into the overseas countries for earning more profits.

• PRAN -RFL Company mainly follows two types of entry mode strategy for marketing Drinks, Bakery & confectionary items:

Exporting & Investment

Export Procedure :• PRAN started its export operation firstly in 1996 with exporting

their products like Drinks, Bakery & confectionary items in France.

• From then they have expanded their export business worldwide.

• PRAN Company usually uses direct exporting procedure for entering the overseas market.

• PRAN Export Limited is thus engaged with two types of exporting as:

A) Foreign distribution channel B) Foreign subsidiary channel

A) Foreign distribution channel:

• Currently PRAN distributing their products in more than 118 countries in the world.

• At present PRAN Export limited divided their foreign distribution channel into 6 units. Those are India, Asia, Middle-East, Africa, Europe, America and Others.

• The Indian market is one of the largest markets of export and PRAN have created a strong entity in the Indian market.

B) Foreign branch/ subsidiary channel:

• In many countries, especially USA (NY), Australia, UAE, Saudi-Arabia, Qatar, Oman, Malaysia, Singapore, Somalia PRAN-RFL company have got its own foreign branch or subsidiary channel for Drinks, Bakery and confectionary items equipped with full fledged office, warehouse, distribution vehicles, sales force, & other sophisticated supports.

Exporting process of Drinks, Bakery and confectionary items overseas Market:

• For the export purpose generally the buyer contact with PRAN through The Chamber of Commerce. Besides it PRAN take part in different trade fair around the globe which attracts more potential buyer.

• After getting response from the potential buyers the organization send sample to the buyer according to their demand and preference.

• If the buyer is satisfied then the organization start negotiating with the buyer regarding the price and the total value chain.

• After the buyer is agreed with the pricing and the value chain then both the buyer and the organization have to agree on the term FOB (Freight on Board) or CNF (Cost and Freight).

• After deciding the consignment mode the company needs to prepare sale contract & the buyer set the payment mode and payment procedure.

Payment Procedures:

Generally there are 4 way of transferring the fund which PRAN-RFL company follows:

• Cash in Advance• Telegraphic Transfer/Electronic Transfer• L/C• Full Party Payment

Factors that initiate exporting process of PRAN company

• Huge market demand• More quick feedback from the target market• Economies of scale• Less risk• Full control over the market• More profit etc.

Other types of entry strategies followed by PRAN Company

• There are many other strategies followed by PRAN Company to

do the international business. As like-

Licensing: Recently the organization took the initiatives of doing licensing

business as its successfully working with the Coca cola company in Bangladesh.

Investments: To accelerate continuous growth, it already set up production

plants in India to produce its Drinks, Bakery and confectionary items and production has already been started.

• PRAN-RFL Group is a leading food, beverage & plastic industrial company & market leader in Bangladesh.

• It is one of the most profitable companies of Bangladesh.

• Thus the company is doing international business more successfully in to the overseas countries throughout the world.