MKT 382 | International Marketing |

THE COUNTRY NOTEBOOK

A GUIDE FOR DEVELOPING A MARKETING PLAN

Name of Country : Benin
Name of the Company: Pran
Products: food items

Date of Submission: 19/12/2012 Company Overview

Pran Foods Limited
“PRAN” is currently one of the most admired food & beverages brand among the millions of people of Bangladesh and other 82 countries of the world where PRAN Products are regularly being exported. ‘PRAN’ started its operation in 1981 as a processors fruit and vegetable in Bangladesh. Over the years, the company has not only grown in stature but also contributed significantly to the overall socio-economic development of the country PRAN is currently producing more than 200 food products under 10 different categories i.e. Juices, Drinks, Mineral Water, Bakery, Carbonated beverages, Snacks, Culinary, Confectionery, Biscuits & Dairy. The company has adopted ISO 9001 as a guiding principle of its management system. The company is complaint to HACCP & certified with HALAL which ensures only the best quality products are reaches to the consumers table across the Globe.
Mission

“ TO GENERATE EMPLOYMENT AND EARN DIGNITY & SELF RESPECTFOR OUR COMPATRIOTS THROUGH PROFITABLE ENTERPRISES.”
Vission

“Improving Livelihood”

PRAN takes a comprehensive approach to all kinds of agro processed food products, considering all of the ways their lives can be enriched through ensuring hygienic and quality food products.
With HACCP compliance to ensure best quality products reach to the consumers, PRAN places great importance on hygienic manufacturing processes. This encompasses everything from choosing quality materials to the use of storage facilities and careful monitoring of products using electronic sorting. Skilled and experienced personnel select finished products which are then examined in a laboratory to verify their quality and to check for residual substances both before and after the production process.
Furthermore, company’s computer systems offer continuous monitoring of all manufacturing process to ensure the highest levels of quality.
Some of the products that they are manufacturing are juice, drink, mineral water, bakery, carbonated soft drinks, snacks biscuits, confectionary, biscuit, dairy etc.
Export strength of Pran Food Ltd
PRAN, the largest exporter of processed food from Bangladesh, had a vision of creating a huge demand globally of those agro based products produced by native farmers. The key was to process the agro products and increase shelf-life thereby. Starting successful journey to export market in 1996, the first country where they imported was France. And now it currently exports to over 82 countries. Country Overview Benin Cultural Analysis

The company the products of which we intend to export is the largest exporter of processed food from Bangladesh. The company had a vision of creating a huge demand globally of those agro based products produced by native farmers. They started successful journey to export market in 1996, currently exporting worldwide to over 82 countries reaching out to over 300 million people approximately.
Their products include all kinds of agro processed food products, ensuring hygienic and quality food products. This includes wide range and variety of products including of Snacks, Juice, Spices, Confectionary, Bakery, Diary etc. We want to export mainly the dry food items of Pran to a country where it has not yet exported yet - Benin.
Brief History
From the 17th to the 19th century, modern day Benin was ruled by the Kingdom of Dahomey. This region was referred to as the Slave Coast from as early as the 17th century due to the large number of slaves shipped to the New World during the Trans-Atlantic slave trade. After slavery was abolished, France took over the country and renamed it French Dahomey. In 1960, Dahomey gained full independence from France, bringing in a democratic government for the next 12 years.
A Marxist-Leninist state called the People's Republic of Benin existed between 1972 and 1990. Many sources state this regime led to repression and the collapse of the economy. In 1991, it was replaced by the current multi-party Republic of Benin.
Geographical Location:
Benin, officially the Republic of Benin is a country in West Africa. It is bordered by Togo to the west, by Nigeria to the east and by Burkina Faso and Niger to the north. A majority of the population live on its small southern coastline on the Bight of Benin. The capital of Benin is Porto-Novo, but the seat of government is in Cotonou, the country's largest city. Benin covers an area of approximately 110,000 square kilometers (42,000 sq mi), with a population of approximately 9.05 million.
Benin, a narrow, north-south strip of land in west Africa, lies between the Equator and the Tropic of Cancer. Benin lies between latitudes 6° and 13°N, and longitudes 0° and 4°E. Benin is bounded by Togo to the west, Burkina Faso and Niger to the north, Nigeria to the east, and the Bight of Benin to the south.
With an area of 112,622 km2 (43,484 sq mi), Benin extends from the Niger River in the north to the Atlantic Ocean in the south, a distance of 650 km (404 mi). Although the coastline measures 121 km (75 mi) the country measures about 325 km (202 mi) at its widest point.
It is one of the smaller countries in West Africa, one-eighth the size of Nigeria, its neighbor to the east. It is, however, twice as large as Togo, its neighbor to the west.
Benin is a tropical, sub-Saharan nation, highly dependent on agriculture, with substantial employment and income arising from subsistence farming.[5]
Reiligion
The largest religious group in Benin is Roman Catholicism, followed closely by Islam, Vodun and Protestantism. In the 2010 census, 27.2% of the population of Benin were Christian (7.1% Roman Catholic, 5% Celestial Church of Christ, 3.2% Methodist, 7.5% other Christian denominations), 24.4% were Muslim, 17.3% practiced Vodun, 6% other traditional local religious groups, 1.9% other religious groups, and 6.5% claim no religious affiliation
Literacy
The literacy rate in Benin is among the lowest in the world: in 2002 it was estimated to be 34.7% (47.9% for males and 23.3% for females).
Climate
Benin's climate is hot and humid. Annual rainfall in the coastal area averages 1300 mm or about 51 inches. Benin has two rainy and two dry seasons per year. The principal rainy season is from April to late July, with a shorter less intense rainy period from late September to November. The main dry season is from December to April, with a short cooler dry season from late July to early September. Temperatures and humidity are high along the tropical coast. In Cotonou, the average maximum temperature is 31 °C (87.8 °F); the minimum is 24 °C (75.2 °F)
Political State
Benin's politics take place in a framework of a presidential representative democratic republic, where the President of Benin is both head of state and head of government, within a multi-party system.
Political condition is stable for trading there. Benin scored highly in the 2009 Ibrahim Index of African Governance, which comprehensively measures the state of governance across the continent. Benin was ranked 15th out of 53 African countries, and scored particularly well in the categories of Safety & Security and Participation & Human Rights.
Aesthetic
Beninese literature and art had a strong for ages even before French became their main language. They have brilliant aesthetic sense.
Language
Beninese people speak French and English. However, indigenous languages such as Fon and Yoruba are commonly spoken.
Economic Analysis
Population
Benin as already mentioned, covers an area of approximately 110,000 square kilometers (42,000 sq mi), with a population of approximately 9.05 million.

Distrubution of Wealth
Currently, about a third of the population live below the international poverty line of US$1.25 per day. Distribution of Population
The majority of Benin's population lives in the south. The population is young, with a life expectancy of 59 years. About 42 African ethnic groups live in this country; these various groups settled in Benin at different times and also migrated within the country.Recent migrations have brought other African nationals to Benin that include Nigerians, Togolese, and Malians. The foreign community also includes many Lebanese and Indians involved in trade and commerce.
Economic Statistics
The economy of Benin is dependent on subsistence agriculture, cotton production, and regional trade. Cotton accounts for 40 percent of GDP and roughly 80 percent of official export receipts.Growth in real output has averaged around 5 percent in the past seven years, but rapid population growth has offset much of this increase. Inflation has subsided over the past several years. Benin uses the which is pegged to the euro.
Resources
Benin’s economy has continued to strengthen over the past years, with real GDP growth estimated at 5.1 and 5.7 percent in 2008 and 2009, respectively. The main driver of growth is the agricultural sector, with cotton being the country’s main export, while services continue to contribute the largest part of GDP largely because of Benin’s geographical location, enabling trade, transportation, transit and tourism activities with its neighboring states.
In order to raise growth still further, Benin plans to attract more foreign investment, place more emphasis on tourism, facilitate the development of new food processing systems and agricultural products, and encourage new information and communication technology.

Transportation facilities and infrastructure
Cotonou harbors the country's only seaport and international airport. A new port is currently under construction between Cotonou and Porto Novo. Benin is connected by 2 lane asphalted roads to its neighboring countries (Togo, Burkina Faso, Niger, and Nigeria). Exchange rates 1 BDT= 6.15 CFA Franc Trade Restrictions
Benin is a trade centre and thus committed to the principle of free trade. After discarding the Marxist-Leninist model in 1990, Benin has progressively liberalized its economy in recent years, according to a new report by the WTO Secretariat on Benin's trade policies and practices.
The last ten years have been characterized by the progressive liberalization of trade barriers with the elimination of quantitative import restrictions in 1988, the abolition of import licences in 1991 and the elimination of import price lists. Import licences were eliminated in the framework of the Structural Adjustment in an effort to promote economic liberalization. Thus exporting there would be easy.
Media
Although Benin is one of the least developed countries it has recently developed in providing different media like television, radio etc.
Mobile telephone service is available across the country through various operators. ADSL connections are available in some areas.
Benin is connected to the Internet has been improved through initiation of the Africa Coast to Europe cable in 2011.
Agency Assistance There are many agencies who can help with the marketing programs offering different pricing. Some of the names are - 3M COMMUNICATION, ADECAF BENIN, ADS MULTISERVICES, AG PARTNERS AFRICA, ALBA and so on.
Pran Food products in Benin
Pran has not entered into the food market of Benin but it has already entered into the neighbouring countries and already got popularity. And the Economic activity of Benin gradually recovered in 2011 following the presidential election in March and the general election in April. The growth rate rose from 2.5% in 2010 to 3.0% in 2011. The recovery should continue into 2012 and 2013 with growth rates of 4.2% and 4.1% respectively.
The products we are exporting are
-Pran Mango bar
-Pran Peanut bar
-Pran Kebab mix (spices)
-Pran Biriyani mix (spices)
-Frooto (juice)
-Pran dal (snacks)
-Pran chanachur (snacks)
-Pran pickles
Major importers of food products
The major importer of food products in Benin are-
-Westco International limited
-Kumageorge consulted limited
-Trans Media Hope limited
Major competitors
Shahtex Benin Limited
Galla Foods Private Limited
Yusheng Food Industries company limited
Societe Beninoise De Brasserie Ltd
Food Habbit in Benin
The people of Benin are fond of eating outside. Most of the houses do not have refrigerator so, people has to go market. Beninese people do not like to spend much on food products. Rather they prefer cheap readymade snacks. Among the food products rice and pickles are very popular. Children and adults are very much interested in buying snacks and juice from outside, specially the children, they buy most of the snacks from vendors by using their pocket money. They are also fond of variety of fruits. Specially they are fond of mango puree.
Consumer buying habits
As Beninese people do not have refrigerators, they like to buy processed foods. They usually buy their food stuffs from local retail stores. They like cheap products. They also prefer buying foreign products over local products. So, Pran will get an advantage in doing business in Benin. Pran products are cheaper compare to other foreign products. Bangladeshi products are popular in neighbouring countries of Benin.
Success Factors in Bangladesh
In African countries the demand of processed food products are very high and it is increasing. Moreover they have a good perception abpout Bangladeshi armies because of their activities in UN Peace. Therefore, Bangladesh also has a good reputation. So Bangladeshi products will be easily accepted by the Beninese. Also the economic growth of Benin is increasing at a very low rate in comparison to Bangladesh. Moreover we are offering better quality products at a low price which will be beneficial for us as the Beninese do not spend much on food products.
Entry Mode
We habe chosen “Export” as the way of entering to the market of Benin. For doing that fist we will do a contractual agreement with the importer and then they will retail our products and do the promotion and supply our products to local vendors, grocery shops, departmental stores etc. That is how our products will reach to the customers.
Distribution Channel

Promotional Tools and costs
As our promotional tools initially we have chosen newspaper advertisement, sampling. We will pay specific amount of commission to the retailers to use separate shelves for Pran products and grab customers attention towards them.
Cost Of Promotion
Benin Star- color half page- BDT 85000
Sampling-45000
Agency-3M communication, AG PARTNERS