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Frooto

Frooto is a fruit juice product launched in 2007 by PRAN Beverage Limited that quickly became the market leader in Bangladesh. It uses natural ingredients like mango pulp, water, sugar and vitamins. As a functional product with a predictable demand, Frooto aims to have a physically efficient supply chain to meet demand at low cost. PRAN's supply chain involves sourcing ingredients from suppliers and farms, producing Frooto at their factory, and distributing to retailers through a network of over 15,000 distributors. This allows PRAN to maintain their leading position in Bangladesh's beverage market.

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513 views25 pages

Frooto

Frooto is a fruit juice product launched in 2007 by PRAN Beverage Limited that quickly became the market leader in Bangladesh. It uses natural ingredients like mango pulp, water, sugar and vitamins. As a functional product with a predictable demand, Frooto aims to have a physically efficient supply chain to meet demand at low cost. PRAN's supply chain involves sourcing ingredients from suppliers and farms, producing Frooto at their factory, and distributing to retailers through a network of over 15,000 distributors. This allows PRAN to maintain their leading position in Bangladesh's beverage market.

Uploaded by

rifat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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INTRODUCTION

• Frooto is a beverage product of PRAN beverage Limited.


• It launched in 2007 & quickly became leader in juice category
market of Bangladesh.
• It's unique taste & packaging created a strong & powerful appeal
among the target group of people.
• Frooto has deliciously natural & sweet taste, besides it is so
refreshing and nutritious.
• The first ever fruit juice in Bangladesh that symbolizes the Youth ,
Fun and the Real Taste of Fruit.
INGREDIANTS
• Mango Pulp
• Water
• Sugar
• Citric Acid (E-330)
• Vitamin C (Ascorbic Acid E-300)
• Vitamin A (Beta Carotene E-160a)
• Stabilizer (E-415)
• Natural Identical Mango Flavor
Type of Product &
Reasons
• Frooto is a functional product.
• As it does not change much over time, satisfy basic
needs and have predictable, stable and long life
cycle.
• As this is not an innovative product, as it doesn't
have new additive features with the existing
product.
Characteristics of a
Functional Product
• Product life cycle more than 2 years
• Contribution margin between 5% to 20%
• Product variety is low
• Average margin of error in forecast 10%
• Predictable demand for product
• Average stock rates 1% to 2 %
• Average forced markdown 0%
• Lead time required for made to order is 6 months to 1
year.
VISION & MISSION
Vision,
• Improving Livelihood

Mission,
• Poverty & hunger are curses
• To generate employment and earn dignity & self-respect for
our compatriots through profitable enterprises.
Strategy Used in
PRAN Frooto
An efficient supply chain should be build for a functional product like Frooto.
Physically efficient process-
• Primary purpose- Supply predictable demand efficiently at the lowest
possible cost.
• Manufacturing Focus- maintain high average utilization rate.
• Inventory Strategy- generate high turns and minimize inventory throughout
the chain.
• Lead time focus- shorten lead time as long as it does not increase cost.
• Approach to choosing Suppliers- Select primarily for price and quality.
• Product design strategy - Maximize performance and minimize cost.
Current Supply Chain
of PRAN Frooto
PRAN has been using the traditional supply chain structure more
effectively than any other company in Bangladesh. Their supply
chain structure is depicted below:

Suppliers PRAN- RFL Distributors Retailers Customers


Suplliers

• Collects raw materials like mango from


rural area

• Collects other components like bottle,


chemicals etc. from different suppliers in
Dhaka.
Distributors

• Fastest & Strongest network of


distribution

• Has more than 15000 distributors

• Has own transportation system


Drivers of Supply Chain of PRAN Frooto
Facilities

• Storage sites (warehouse)


Where the collected raw materials &
other things are stored

• Production sites (Ghorashal factory)


Where the production process is done.
Inventory

• Has own garden in Rajshahi

• Deals with the farmers to collect the raw


materials such as mangoes

• Collect mango pulp from dealers in off


season.
Transportation

• Inbound transportation system


PRAN’s own transport

• Outbound transportation system


Distributors transport
Sourcing

• Outsource mango pulp, water, sugar,


chemical, bottle etc. from different dealers.

• In-source the raw materials such as fruits


from their own garden.
Pricing List of Frooto

250ml 20/-

500ml 40/-

1000ml 70/-
Conclusion

PRAN beverage limited is on the leading position among the


country’s agro-based beverage sector. Frooto, a product of
PRAN beverage Limited, has captured the largest market share
in the countrywide juice market. PRAN beverage limited has
become able to make a strategic fit between its competitive
strategy and supply chain strategy to increase its
responsiveness.

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