Online Shop Marketing Strategy of PRAN RFL Group PDF

Preview

Summary

Download Online Shop Marketing Strategy of PRAN RFL Group PDF

Description

Acknowledgement First I do like to pay gratitude to almighty God by whose grace and blessing I have been able to conduct this Assignment. Then I would like to thank Md. Humayun Kabir Chowdhury who sincerely supervised my work by providing valuable ideas, concepts, guidance and suggestions. This assignment is not an exception from the mentioned criteria. In spite of my best efforts if there is any errors fall out, please suggest me to improve myself.

1

Assignment on

Online Shop Marketing Strategy of PRAN RFL Group

Introduction: PRAN RFL Group, one of the most reputed conglomerates in Bangladesh since 1981. It started mainly with Foundry business and gradually diversified to Light Engineering, PVC Fittings, Plastics, Food and Beverage, and Agro-Processing. PRAN has now established itself as one of the top manufacturing companies and has set the grounds for development for any potentialities. It has a marketing and selling network in about 110 countries. But PRAN has not introduced their online shop yet. It has lots of grocery products, ready-made foods which are consumers' daily necessities. So it is high time to go for an online shop for the betterment for both the consumers and the company. Shop link will be 'shop.pran.com'. Vision: Improving Livelihood Mission: Making the consumer life more convenient & being the market leader in Online Shop Goals: 1. Provide better customer services 2. Achieve customer satisfaction 3. Increase profit margin 4. Capture a bigger market share

Marketing: Marketing is the activity, institutions and set of processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients and society. Market means value. If any product has no value then there will be no market. And marketing creates the value for the consumer. 2

Market-Driven Strategy: A market-driven strategy is the planning and deployment of business resources to achieve a central set of objectives through a continuously changing set of circumstances. It is customer-focused and organizational-wide with every level of the organization having its business unit strategy nested within the larger corporate strategy. A market-driven strategy allows a company to truly understand its market and the customers that are the basis for this market. This effort allows for more effective integration of all activities that may impact customer value, which in turn affects both return-on-investment and profitability. Characteristics of Market-Driven Strategies: 1. Becoming Market Oriented 2. Leveraging Distinctive Capabilities 3. Creating Value for Customers 4. Becoming Market Driven

Strategic Situation Analysis: Consumers are getting busier day by day. They want their product in a very convenient way. If it comes with grocery shopping then the question comes about convenience, time-saving, cost minimization, etc. Now consumers are used to shopping online regularly. On the other hand, the whole world is facing a pandemic situation which is COVID 19. The whole world is locked down. So people are shopping more frequently online. Those who were not used to online, now they are placing orders online using mobile or computer. Already PRAN has great value to the consumer. If they can get their daily needs online sitting on the home it will be more beneficial to them. So it is high time to go for online of PRAN RFL Group.

Markets and Strategies: Strategies and Markets are interlinked. Market changes often require altering business and marketing strategies. Customer expectations are changing frequently. Time is very much short in their hand for grocery shopping. Now Bangladesh is facing COVID 19 as people all over the

3

country are locked down. They are expecting their daily needs at their door. So online service will be very effective for them. Demographic shifting is another reason. For demographic shifting consumers’ life and work style are changing day by day. Everything is going online and the consumers want it. Globally this change has been noticed in previous years. Bangladesh is not lagging behind. Already online shopping is popular and it is getting more popular day by day. With this changing lifestyle of the consumers’ selling style should be changed. So, we have to go to an online service.

Value migration: Value migration is the process of customers shifting their purchases away from products that offer inferior value to new ones that offer superior value. Consumers always search for better value. If they find superior value than the previous, they will go for the superior value. Sometimes price comes to question if the value is more. It should be in consideration of the choice of the consumer. Consumers should get their desire value in their price range. Then the consumer will be loyal to the product. Marketing Environment The Marketing Environment includes the macro factors and the micro factors that surround the business and influence its marketing operations. Macro factors mean external factors and micro factors mean internal factors. Some of these factors are controllable while some are uncontrollable and require business operations to change accordingly. Micro Environment Factors 

Suppliers: Suppliers can control the success of the business when they hold power. The supplier holds the power when they are the only or the largest supplier of their goods. But PRAN is a large company. Here supplier power is limited.



Customers: Customers are the reason for buying the product will play a large role in how you approach the marketing of your products and services to them. PRAN has already a huge loyal customer. They will be happy to shop online. 4



The competition: Those who sell the same or similar products is market competitor and the way they sell needs to be taken into account. There are many good competitors in market. Good competitors are another reason for the growth of sell.

Macro Environment Factors 

Demographic forces: Different market segments are typically impacted by common demographic forces, including country/region; age; ethnicity; education level; household lifestyle; cultural characteristics and movements.



Economic factors: The economic environment can impact both the organization’s production and the consumer’s decision-making process. Now the govt. is facing a recession that can affect the business. Physical shopping can decrease, on the other hand, online shopping can go up.



Technological factors: The skills and knowledge applied to the production, and the technology and materials needed for the production of products. PRAN has modern technology so that the production can’t be hampered.



Political and legal forces: Sound marketing decisions should always take into account political and/or legal developments relating to the organization and its markets.



Social and cultural forces: The impact the products of PRAN brings to market have on society must be considered. PRAN has few negative ideas about some products. Those should be eliminated to show PRAN is taking social responsibility.

Identifying and Describing Buyers: Family Size is the main issue of grocery shopping. Large family needs a large amount of grocery every day. They will be the main target so that they can get their regular necessary things near their door.

5

Age is also a good factor. Young people always want to shop online. They don’t want to go into the market physically. On the other hand, aged consumers prefer physical to online. So, promotion should be in the proper way so that the aged consumers can feel the necessity of online. Higher-income consumers will buy premium quality products more frequently. Geographical location is also a good factor for online shopping. If someone is in a remote area he/she will try to buy using online. That will be more convenient for those consumers. Occupation is one of the main factors. The corporate people are so much busy to shop for daily necessary products. They always try to place orders online using their mobile or computer within their office time. So that their valuable time can be saved and easily can get good products in their home. How Buyers make Choices: Buyers make a choice when he/she faces a problem. When consumers recognize problems they search for information. Then they evaluate the need. When they get a good overview they make a purchase decision. After purchasing the product they show post-purchase behavior. If the consumers satisfy and get the proper value they give a good review. Observing the review of other consumers gets more attractive to that particular product. Competitive Arena: There are two types of competitors. Direct and indirect competitor. A direct competitor offers the same products and services aimed at the same target market and customer base, with the same goal of profit and market share growth. An indirect competitor is another company that offers the same products and services, much like direct competitors; however, the end goals are different. These competitors are seeking to grow revenue with a different strategy. The first task is to identify the key competitor. There are many online grocery services available in the market. So, there will be several key competitors. After research, I found the key competitors are ChalDal, Shopno, Evaly, Othoba, Daraz.

6

Key Competitor Analysis: For an online shop competitor analysis is so important. Many competitors got essential information’s from their customers about their choice, preferable price, behavior, recommendations, etc. Chaldal.com: Chaldal has essential information about their customers, still their resources grow day by day on your choices, preferences, recommendations and orders. Chaldal.com has a database of target customers also, whom they do text message with invitation coupon or free delivery of goods.

shwapno.com: Their motto is “Everyday A Better Life ” They are the largest grocery chain in Bangladesh. They deliver orders within two days. They have no delivery charge but they take 7% vat. They are growing day by day.

Daraz.com: We have seen previously that Daraz was not interested in this sector, but now we can see that Daraz is also selling home appliances, remedies or groceries. They created Daraz Mall and are selling different kinds of groceries. But they steal have a problem that is delivery time. They take 3-5 days to deliver the product because they have different sellers. They have to collect products from them. That’s why their product variety is huge.

7

Othoba.com: They strive to utilize the power of the internet in its highest peak to fulfill the needs of your busy life. They have different kinds of products but their sellers are also different like Daraz. Customers can’t find everything from a store and the delivery charge also becomes very high.

Evaly.com: Evaly is the fastest growing online market place in Bangladesh. Recently evaly has introduced Grocery express, Bullet express, Food express. Though they are providing 20% cashback in evaly balance, product price is too high. Their delivery system is poor.

Competitor Evaluation: Customer

Product

Awareness

Quality

Chaldal

G

G

Shopno

F

Daraz

E

Product

Technical

Selling

Assistance

Staff

P

G

E

G

G

P

G

G

F

E

F

Availability

Note : E - Excellent; G - Good; F – Fair; P - Poor

8

SWOT analysis: To identify the strength and weaknesses, and opportunities we have and threats for us- doing SWOT analysis in important. Evaluating a company’s strength, weakness, opportunity and threat is known as SWOT analysis. Strengths: 

What opportunity PRAN RFL has over its competitor? I think the most strength will be its reputation. It has become a brand which is their main strength.



Products of PRAN are quality full.



PRAN is able to serve all over the country.



PRAN products are BSTI certified.



PRAN can able to handle a large amount of demands.



Marketing skill is good.



Brand name has a reputation in current market.

Weaknesses: 

PRAN doesn’t have its’ own outlet. So people who want to buy by physically can choose another brand product from any shop.



Still, PRAN can’t produce vegetables, fruits, and raw spices; as the market demand is huge.

Opportunities: 

In Bangladesh still online based shopping market is growing, so there are enough future ahead.



Still, the numbers of competitors are few.



Diversified products could be marketed by suing the same platform

Threats: 

There are strong competitors like chaldal, shwapno, and daraz are rolling the market.



Governments do impose new rules and regulations from time to time.



The taste and preferences of consumers don’t remain the same always, so the company needs to update its’ strategy also time to time. 9

Marketing mix: Product, Price, Place, Promotion are the main base of marketing mix. In marketing, this 4 thing is considered very important. Product: This is the most important point because without a product or service business couldn’t be formed. 

PRAN has every type of grocery ready-made products and some unique products comparing to competitors.



The quality of products is good and gives a superior challenge to others.



Packaging and the quality of product will make consumers’ ensure about how hygienic the products are.

Price: To attract customers, pricing policy needs to be always identical. As the market is too much competition, there is no scope for earning much profit from per piece. Offering various promotions, discounts, can reducing products price a bit but selling huge amount will make a good profit. Products price will be same as the body price. Place: PRAN will ship their product all over the country. PRAN will create warehouses in every district and city. They will have pickup vans to carry large order, and to complete small orders, they have delivery boys who will use cycle or motorcycle in order to deliver the product. Delivery time will be at most one day. A Specific time can be set and they will send the products during that time. There are two delivery rates: 20 for normal order and for ordering amount above 1000tk the delivery fee will be free. Promotion: PRAN will not only follow the traditional way of advertising, like print media or electronic media but also some creative advertising. Google Adsense / Adwords: It expenses huge to do advertise by google, that’s how we can see advertise of “PRAN Online” on various WebPages and also on youtube. Facebook.com: It also runs facebook campaign to promote their official offer or videos.

10

Email marketing: Sends individual emails or bulk emails for promoting purpose. SMS marketing: Sends bulk sms to a collected database of numbers. Sales Promotion will include discount 2 – 15% on order price, special offer on different products, free delivery, purchase one get free one, invitation bonus like inviting one’s friend, he/she will get a bonus, etc. Customer care executives, who calls individually to convince people about their products and services. Campaign on university campus or shopping malls will be good publicity.

Market Segmentation: Consumer markets: The characteristics of people fall into two major categories, such as (1) Geographic and demographic and (2) Psychographic (Lifestyle and personality) Geographic segmentation will be customer location, a region like urban or rural. Product and service will vary geographically. First, we have to start an online shop in Dhaka city. Every product and a new product will be available in the city area first. Step by step the shop will spread in the rural area. Demographic segmentation will be age, gender, occupation, socio-economic group. Different products and promotions will be for different ages and gender. Female customers always search for cooking products on the other hand male customer want ready-made food, frozen food, personal things, etc. Occupation also varies for the choice. Public and private jobholders' lifestyle is different. That's why their shopping style is also different. So they will be recommended differently. Psychographic will be personality, lifestyle, attitude, and class and behavioral segmentation will be the rate of usage, loyalty status, readiness to purchase. Psychographic segmentation varies from person to person. Customers' needs and attitudes reflect understanding the nature and intensity of the needs, the buyer's overall liking of or preference for a brand. Consumption variables such as the size and frequency of purchase. Customer daily shopping data will be collected so that we can identify the consumers' lifestyle, class, and loyalty. According to that data, different consumers will be offered different promotions so that they shop online easily. Organizational market segmentation is aided by first examining (1) market type and (2) market size. Online market size will depend on product size. PRAN has lots of products of their own. All

11

products will be available online. When new products will come into the market the shop size will be bigger. Market Targeting: PRAN will target the residents of Dhaka first. In rural areas people won't enjoy shopping online, where the place remains crowd, no parking place, muddy road, needs to bargain a lot. So targeting will be geographic segments. All of the peoples of Dhaka, to get their service, through which they can buy groceries from their home. Day by day the online service will spread though over the country. The product category of PRAN is mass. Still, I don't see any irrelevant products over there, which doesn't suit. In the future, they are going to cover any product which might be needed in-home and in corporate places. PRAN primarily focuses on Improving Livelihood to be its main benefits since it ensures that only the finest quality and freshest products go into making. Hence, it primarily appeals to customers with a basic level of consciousness regarding health issues and it requires a certain educational background for perceiving such benefits. Therefore, the product should be targeted to customers who are educated enough of possessing a minimum understanding of health issues. The socio-economic classes chosen to be primarily targeted include household of medium to a higher level of income who fully possess the purchasing affordability for buying the product. Female customers residing in urban areas are the primary target market because the urban customer-base mainly consists of households where the buying decision of convenience goods is primarily made by housewives and the purchasing is primarily done by the housewives of particular families. This is the niche market segment consisting of male individuals who perform the shopping chores for their families residing in urban and rural areas. So, the male is the secondary target. Psychographic segment targeting like Social Class. Since the product we are dealing with is of all category and concerned with the health issues, the chosen social classes to be primarily targeted include the households of medium to the upper social class who are educated enough to understand the health issues. It is clear that t...