Role of Trade Promotions in Enhancing Sales at PRAN Foods Ltd.: An Analysis

Abstract

PRAN RFL Group stands as one of the largest FMCG companies in Bangladesh. Since its establishment in 1981, the company has served the country in the agriculture and domestic usage sectors. It is widely known for its production of foods and plastic products, along with agricultural equipment. The mother company is Agricultural Marketing Company Ltd. PRAN and RFL are two main subsidiaries of the company. This research explores the impact of trade promotion strategies on enhancing sales at PRAN Foods Ltd., one of Bangladesh’s leading FMCG companies. Despite the company’s strong distribution network and brand presence, recent sales declines prompted an investigation into the effectiveness of its trade promotional tools. The study specifically focuses on five trade promotion variables: free goods, display allowance, sales contests, trade allowance, and buying allowance.

The research follows a quantitative methodology, using survey data from 20 Dhaka-based retailers, distributors, and wholesalers. Statistical analysis—including descriptive statistics, correlation, hypothesis testing, and regression—was used to assess the relationship between each trade promotion tool and sales performance. The findings revealed that all five trade promotion strategies have a positive correlation with sales enhancement, with trade allowance, buying allowance, and free goods showing the most significant impact. Regression analysis confirmed that these three variables are the most effective contributors to increasing sales. Based on the insights, several recommendations were proposed, such as optimizing incentive structures, improving coordination with retailers, and focusing on promotional tools that deliver the highest return. The study concludes that a well-structured trade promotion program, especially emphasizing free goods, buying allowances, and trade allowances, can significantly boost PRAN’s sales and competitive position in the FMCG market.