Professional Documents
Culture Documents
Marketing Strategy of Abul Khair Tobacco Company LTD
Marketing Strategy of Abul Khair Tobacco Company LTD
Submitted to
Mohammad Nazmul Huq
Assistant Professor
Department of Business Administration (Marketing)
Submitted by
Md. Anowar Hossain
ID: B.B.A - 027 07143
Department of Business Administration
Stamford University
Bangladesh
________________________
Mohammad Nazmul Huq
Assistant professor
Department of Business Administration
Stamford University Bangladesh
LETTER OF TRANSMISSION
28th January, 2010
Md. Nazmul Huq
Assistant Professor
Department of Business Administration
Stamford University Bangladesh
Sub: Submission of BBA Internship Report.
Sir
With due respect and honor, I have much pleasure to present the report of the
internship program on A STUDY ON MARKETING STRATEGY IN THE CONTEXT
OF ABUL KHAIR TOBACCO COMPANY LTD. The report deals with working
environment of a field level distributor and selling strategy. I am submitting this
report as a part of my internship program in Abul Khiar Tobacco Company Ltd.
This report is going to provide valuable assistance to me in finding out the
working environment, which have influence on the service quality.
The Officers of AKTCL were very cordial and extended their hands within the
limit of their authority. As the time was limited, the report could not be done
more comprehensive and analytical. Therefore, I need your kind attention to
assess my report considering the limitations of the study. Your kind suggestion
will encourage me to perform better research work in future.
Sincerely yours,
.
Md. ANOWAR HOSSAIN
ID. NO: B.B.A. 027 07 143
E-mail: anw1219@gmail.com
Acknowledgement
At the very first moment, I am expressing my gratitude to Almighty Allah for
giving me the patience and competence to complete the Internship program by
writing a report.
In the preparation of this internship report, I acknowledge the encouragement
and assistance given by a number of people from Abul Khair Tobacco
Bangladesh Ltd. I am grateful to Mr. Mohsin (Distributor of Abul Khair Tobacco
Khilgaon Branch), for his valuable suggestions and assurance. Besides, I was
well-guided by Md. Anwar Hossain (Territory Sales Officer) of AKTCL.
I would like to extend my sincere regards and gratitude to all of my honorable
teachers of the Department of Business Administration, Stamford University
Bangladesh (Siddeswari Campus), who guided and assisted me a lot to reach in
the present stage of academic position, unless this, it was not possible for me. I
would like to express my gratitude to my honorable teacher & my Internship
Instructor Md. Nazmul Huq, assistant professor as well as assistant
superintendent of examination, Department of Business Administration,
Marketing Siddeswari Campus, who helped me in every step of my internship &
report writing by giving proper guidance, advice & inspiration, for his untold
efforts and cooperation in completion of entire internship program successfully.
No noble objective can be achieved by a single individual. I am indebted to a
number of persons for their kind advice, suggestions, directions & cooperation
which has enable me to have an experience in the dynamic environment of the
AKTCL & ultimately to prepare this report. The very first person of the Abul
Khair Tobacco Company Limited to whom I like to convey my gratitude is the
Mr. Mohsin (Distributor of AKTCL) as he gave me the opportunity to do my
internship.
I would like to express my gratitude to my supervisor Md. Nazmul Huq, for
sharing his ideas and interests with me about my study. His contribution
boosted my confidence and helped me finish my study on time. Lastly, I want
to show my gratefulness to all the staffs that spared their precious time in
answering my query.
I would also like to thanks Sales Representative Md. Helal and manager Mr.
Bappi as well as Md. Kamruzzaman Zone In Charge for their response toward
my query.
I am very much grateful and I do thanks to Md. Anwar Hossain (TSO), Territory
Sales Officer, for his great response and help. Though he was very busy at his
job, he tried to teach me most of the job responsibility about how they are
selling their brands.
Last but not the least; I am grateful to Md. Al-Amin (Managing Director), Md.
Nasir (Managing Director) and Md. Rafique (Marketing Manager) of RAN
enterprise for their great effort furnishing the required information, which was
needed for successful completion of this report.
Declaration
Place: Dhaka
....
Muhammad Anowar Hossain
BBA Id # BBA 02707143
BBA, Batch 27th
STAMFORD UNIVERSITY BANGLADESH
EXECUTIVE SUMMARY
The report is prepared on the basis of 3 months practical experience at Abul
Khair Tobacco Company Limited. The internship program helped me a lot to
learn about the practical situation of a distributor. This program helped me to
implement my theoretical knowledge into practical and realistic work
environment.
This study intends to experience the relationships of in context of on marketing
strategy and Organizational Support, Supervisory Support, Work Climate, and
Employee Service Quality, problem solving environment in the context of Abul
Khair Tobacco Company Ltd. Perceived organization support (POS) the extent
to which employees believe that their employer is concerned about and aware
of their well being and contribution can help employees self-esteem and,
therefore performance. POS is more likely to increase the employees
expectancies that greater efforts toward meeting organizational goals will be
rewarded, and consequently these expectancies may increase their efforts in
service works to meet the organizational goals. Support from supervisors is
also an importance to employee performance but the employees may take it
for granted, considering it to be part of the supervisors job, and it might,
therefore, not have the degree of positive influence on service effort that might
have been expected. The aim of my struggle is to know about the market and
its difficulties. I want to know about the activities of Abul Khair Tobacco
Company Ltd. How a cigarette company works.
AKTCL target market is to capture whole country middle and low as well as very
low segment market. AKTCL offers quality services to its customers. AKTCL tried
to formulate its strategies in such a way that the extraction of customer and
outstanding tobacco can find a suitable platform. Nevertheless, it is important
that, to produce greater job satisfaction, service management should render
on-the-spot supervisory support to employees, design and implement
supportive supervisory practices and reward positive results. Work climate also
have significant impact on employee service quality. Its found in the study that
employee perceptions of work climate have important effects on their work
effort & thus the quality of the service they rendered.
In this internship I was attached to different people like TMO, SR, BP TSO etc.
So I learn maximum knowledge about market. With the help of these people I
practically learn different strategies that AKTCL adopts in the marketing. During
this internship I learn theoretical knowledge in a practical form. I did my work
in field and offices both places are very informative.
So According to my opinion AKTCL is very productive as well as effective selling
oriented company.
INTRODUCTIO
N
TO
THE STUDY
INTRODUCTION
Tobacco Industry is one of the very few controversial industries operating in
Bangladesh. Now, almost 100% of the consumption is being supplied by the
local and multinational manufacturers operating here. This industry is also a
key source of tax revenue for the Government of Bangladesh due to high tax
structure of the industry. Tobacco products are charged with as high as 70% tax
of the total sales. This provided the Government to impose strong control on
profitability and expansion of the tobacco manufacturers. Total Cigarette
industry is however only 30% of the total tobacco industry with majority driven
by non-filter tobacco products likes Biri, Gul, and Jorda etc. This 70% market is
mainly driven by DTI and AKTCL with their Biri products with many local
operators operating in local hubs. The overall cigarette industry is now stable
with a 3% growth yearly which is not always consistent. The industry comprises
of products varied with different taste offers and also price. Three major
competitors compete in the market with small presence of two other
manufacturers and some local suppliers. British American Tobacco Bangladesh
(BATB) leads the market followed by Dhaka Tobacco Industries (DTI) and distant
third position by Abul Khair Tobacco Industries (AKTCL). Nasir Tobacco Company
(NTC) & New Age have insignificant market share and locally present in many
markets. Following are some of the key brands offered to the market by the
major suppliers:
BATB Benson & Hedges, John Player Gold Leaf, Pall Mall, STAR Filter, Viceroy
DTI Castle, Navy, Sheikh White, Sheikh Full Flavor, Five Star, K2
AKTCL Marise, Sunmoon, Marise White, Super King white, Rally, Special Abul
Bidi
The market is almost saturated with growth and decline of segments among
themselves keeping the standards vibrancy in the industry. Cigarette though as
a commodity, has strong distribution network and commonly carried by general
outlets all over the country. It is a time tested industry with one of the key
business for all of the Group of Companies operating. The product has a
general appeal and still considered to be source of business for the traders.
The mass distribution network set by the manufacturers though however,
reduced margins at different levels of supply chain channels, yet traders did
not lose interest because of consistency in demand and supply.
Cigarette being a product common to both mass and upper class has impact of
the ongoing economy and consumption power of the buyers. Being a regular
problem and to arise at a feasible and implemental solution with the help of
different analytical tools.
METHODOLO
GY
OF
THE STUDY
SOURCES OF DATA
(a) Sources data:
All marketing information comes either from internal sources to the firm or
from external sources during the project.
(b) Tools of data collection:
(I) Primary Data: Data originally collected for an investigation are known as
primary data. Such data are original is character and are generated in large
number of surveys by some individual institutions.
(II) Secondary Data: The data, which are collected for some earlier research
work and are applicable or useable in the study. I have presently undertaken
that the secondary data can be divided into two types. Such as
(1) Internal Secondary Data
(2) External Secondary Data
Secondary data are obtained by visiting competition offices and is the report of
the company. Both primary and secondary sources of data were explored for
the study.
Primary Sources:
(I) Official records of AKTCLCL.
(II) Face to face interview with the AKTCLCL officials
Secondary Sources:
(I) Monthly financial report of AKTCLCL
(II) Resume of the activities of the international institutions
(III) Through different web address.
(V) Other published materials
BACKGROUND OF THE STUDY
(a) Organizational Background of the study:
Having an understanding of customers is not enough; todays companies are
starting to play as much attention to tracking their competitors as to
understanding their target customers. A company should constantly compare
its services, price channels and promotion with those of its close competitions.
Like other number and profitable tobacco firm AKTCL also consider competition
carefully. Quality is highly considered in case of foreign marketing but in case
of home marketing it is in different presently. Need to conduct regular
attractive and informative promotional activities.
(b)Theoretical Background of the study:
AKTCL one of the most promising local segmented corporate in Bangladesh.
The already launched brands of the AKTCL have been gaining popularity among
all lower segmented smokers. It gained popularity particularly among low
segmented people and old aged people.
ORGANIZATIO
N
PROFILE
COMPANY PROFILE
Abul Khair Group is one of the largest and rapid growing companies in
Bangladesh. It is a family oriented business. It was established in 1953 by late
Abul Khair. The company started with Abul Bidi, still a familiar brand for those
who smoke bidis. Later on, the company expanded its business to other
sectors. It is now one of the most successful companies in terms of
professionalism and management excellence. The main business objectives are
to prove guaranteed quality, fair and competitive price and optimum services
leading to total consumer satisfaction.
The product lines of Abul Khair Group include Fast Moving Consumer Goods
(FMCG), Industrial Products and Trading. The company has its prime
manufacturing ventures in steel products, food and beverage, condensed milk,
full cream milk powder, cement, tobacco, soyabean oil, coconut oil, butter oil,
tea etc. Over 10,000 personnel are working for this renowned company directly.
Among the several units of Abul Khair Group, milk and beverage is one of the
most vital divisions of the group. This division produces and packs condensed
milk, powder milk, several types of juice, flavored milk, drinks, snacks and
supreme quality tea. All of these products ensure supreme quality, availability
and customer satisfaction. All the products are produced under better hygienic
conditions by using sophisticated technology. Total Quality Management (TQM)
is practiced in this division (milk and beverage) and that's why the company
was awarded with the certificate of ISO and HACCP. Premium quality raw
materials are used to produce all the products. These products are distributed
under a strong distribution system. For this reason, the company has a large
number of satisfied and loyal customers with strong brand image.
THE VISION OF THE COMPANY
To attain quantitative and qualitative leadership in all the sectors we operate.
THE MISSION OF THE COMPANY
Consolidate our position in the areas where we lead and continue to invest in
people, processes and technology to enhance our organizational capability to
ensure long-term and substantial growth. Embracing change at every level to
achieve highest level of professionalism remains as the key focus for all.
Brands Name
Brands Name
C.R. Coil
C.G.I. Sheet
G.P. Sheet
Shaad Pineapple
Drink
Ridging
Shadd Chanachur
Seylon Tea
Shaad Snacks
Marise-Special
Blend
Sun Moon-Filter
Kings
Shah Cement
Marise White
Jhalor
Rally
STUDY
OF
THE REPORT
Chittagon
g
2008
NC-95
28
30
33
37
40
K326
13
15
17
18
20
SG-28
09
10
10.5
11
12
Total
50
55
60.5
66
72
Out of the above production about 80% to be used for local consumption and
20% will remain for export.
BURLEY
Bangladesh produces burley in
Rangpur, the northern part
and Manikgong, the center
part of Bangladesh. The
tobacco has natural burley note with medium nicotine.
The volume projection is given below (fig. in Million)
2004
2005
2006
2007
2008
Rangpur
1.80
2.00
2.25
2.50
3.00
Manikgo
nj
3.00
3.50
3.75
4.00
4.50
About 90% of the production is exported and only 10% is used for domestic.
DARK VIRGINIA (DV)
This tobacco is grown historically for consumption in Biri.
The manufacturers are not involved in growing this type of
tobacco. Farmers of Rangpur and Dinajpur are traditionally
growing this tobacco. Among the Dark Virginia there are
varieties of category among them JATI, MOTIHARI, TALIM are
notable among them.
JATI
Traditional Bangladeshi variety air cured
Tobacco, Heavy Bodied, brown to dark brown
Color, strong smoke characteristics, high
Nicotine 3-4.5%, Low sugar 1-2%. Used in Biri.
MOTIHARI
This is also another Bangladeshi native
Variety of air cured tobacco, heavy body, round
Shape leaf, brown to dark color high nicotine
Tobacco (3-5% nicotine) and low sugar (1-2%).
This variety is used for Biri and also used as
chewing tobacco.
TALIM
Traditional Bangladeshi variety air cured
Tobacco, Heavy Bodied, brown to dark brown
color,
Strong smoke characteristics,
High nicotine 3-4.5%, Low sugar 1-2%.
Used in Biri.
MARISE
MARISE WHITE
SUPER KING WHITE
SUN MOON FILTER KING
RALLY
SPECIAL ABUL BIDI
SALMON MATCH
FLAME BOX MATCH
MARISE
Paper:
High
Porosity
(minimum
60
SUN MOON
BUSINESS PHILOSOPHY
Abul Khair Group diversified their business in tobacco industry because in
Bangladesh we have 14 crore people. It is large market size to serve and
cigarette demand is increasing continuously for the population. Abul Khair
Tobacco wants to serve medium and low segmented cigarette for their target
market.
In tobacco industry, there are many local & foreign companies. Abul Khair
wants to be local unique tobacco producer with the same quality of foreign
company. For this purpose AKTCL produces Rally for middle segment target
group who like to live stylist life.
AKTCL has its own marketing & sales department in AKTCL chamber. The
functions of this distributor are not very wide and dynamic. Main functions
performed by this department are:
Product orientation program
Collection of commodity transferred
Create market for its product
Push sale adopt
Problem solving of sales representatives
Developing communication strategy
Preparing sales forecast
Maintain sales management in the field
Keeping record of sales
Keeping record of stock
Collection & analysis of competitors activities
Setting Sales Target amount
Revising Sales Target amount
Maintaining Sales Target amount
Beside these, it performs a number of activities to conduct their day-to-day
business. Under marketing & sales department, a Brand team performs the key
role of real marketing.
DISCUSSION
ON
THE REPORT
MARKETING DEFINITION
1. The act or process of buying and selling in a market.
2. The commercial functions involved in transferring goods from producer to
consumer.
SELLING DEFINITION
Selling is trying to make sales by persuading someone to buy one's product or
service. From a management viewpoint it is thought of as a part of marketing,
although the skills required are different. Sales often form a separate grouping
in a corporate structure, employing separate specialist operatives known as
Sales Representatives (singular: Sales Representative). Selling is considered by
many to be a sort of persuading "art". Contrary to popular belief, the
methodological approach of selling refers to a systematic process of repetitive
and measurable milestones, by which a Sales Representative relates his or her
offering of a product or service in return enabling the buyer to achieve their
goal in an economic way.
This report will be dealing with the selling and distribution policy and strategies
of Abul Khair Tobacco Company Limiteds distributor. The main study is to
compare and distinguish the distributors selling activities with the selling
approach theory.
Selling Strategies
Cold calling
Consultative selling
Direct selling
Guaranteed sale
Needs-based selling
Persuasive selling
Price based selling
Relationship Selling
Target account selling
COLD CALLING
Cold calling is the process of approaching prospective customers or clients,
typically via telephone, who was not expecting such an interaction. The word
"cold" is used because the person receiving the call is not expecting a call or
has not specifically asked to be contacted by a sales person. From the above
study we have already come to know that the selling process of the TSO Md.
Anwar Hossains troop is not actually matching with the definition of cold
calling selling strategies. So it can be easily say that the distributor agency of
Mohsin is not actually performing the cold calling selling strategy.
CONSULTATIVE SELLING
Consultative Selling is a selling technique that emphasizes the dialogue
between the salesperson and the customer. Before talking product and/or
service, the salesperson strives to learn about the customer's needs, and may
even help the customer identify and phrase these needs. Then, instead of
delivering a standard sales pitch about a product or service, the salesperson
can sell a tailored solution that meets the customer's needs, using the
customer's language.
There are three primary differentiators that mark a Consultative Salesperson:
o They ask more questions.
DIRECT SELLING
Direct selling is a retail channel for the distribution of goods and services. At a
basic level it may be defined as marketing and selling products, direct to
consumers away from a fixed retail location. Sales are typically made through
party plan, one to one demonstrations, and other personal contact
arrangements. A text book definition is: "The direct personal presentation,
demonstration, and sale of products and services to consumers, usually in their
homes or at their jobs."
According to the WFDSA, consumers benefit from direct selling because of the
convenience and service it provides, including personal demonstration and
explanation of products, home delivery, and generous satisfaction guarantees.
Direct selling is distinct from direct marketing because it is about individual
sales agents reaching and dealing directly with clients. Direct marketing is
about business organizations seeking a relationship with their customers
without going through an agent/consultant or retail outlet.
By far the majority of direct selling companies use a multi-level compensation
plan, where the agent is paid not only for their own sales but also a percentage
of the sales of other representatives they introduce into the organization and
help train.
We know that the basic commodities of AKTCL are cigarettes. Sometimes, TSO
Md. Anwar Hossain adopt direct selling strategy to promote brands. During my
internship, I have experienced this type of strategy adopted by the TSO Md.
Anwar Hossain to promote Marise brand. TSO trained all the SR and BP about
the technique that he actually wants to adopt. Then he divided all of them into
team basis in different region to promote their brand with a team leader. They
were trained to give free sample if necessary to those customers who are the
smoker of competitive brand.
PRICE-BASED SELLING
Price-based selling is a specific selling technique in which a business,
exclusively reduced their price in attempt to close the sales cycle. Price-based
selling clearly exists in businesses such as: commodity sales, auto sales,
hospitality, and even some retail stores. However, it is only recommended that
commodity items like petroleum be sold exclusively by price. Price based
selling does nothing more than erode your price, reduce profit levels and
creates an impression in your customers mind that all of your products and
services are priced at a level to take advantage of them. The drawback to
Price-based selling is that it results in the good or service that is sold becoming
a commodity and a commodity by definition is a product or service that has no
differentiating qualities or characteristics from competing products or services
in its class. A 2007 Shop zilla survey asked 2000 shoppers what the most
important factor was in their buying decision, and 49% said price is the most
important.
Most businesses sell their items, whether they are expensive automobiles, or
inexpensive services based upon price. They do this not because it is the most
profitable, but because they believe it is the easiest way to attract customers.
Consumers and Business-to-Business buyers alike may be easily enticed to buy
based upon price. Consumers are always hunting for the best bargain and price
has a direct impact on whether or not they will buy a product or service.
Businesses know that offering the lowest price gives them a competitive
advantage against other similar products the customer may be looking at.
The goal of price based selling is to capture the business of price sensitive
sellers. Customers who shop purely based on product cost will have the most
interest in bargain buys. Pricing is directly related to the revenue management
department of a business, and any good revenue manager will make sure they
are doing everything possible to maximize profits.
The price of cigarettes is one of the most important factors affecting tobacco
consumption as high cigarette prices can prevent people from taking up
smoking and encourage those who smoke to quit. The World Bank (1999)
calculated that a 10% increase in the price of cigarettes can reduce demand by
around 4% in high income countries. Due to this high cost of cigarettes many
smokers are switching to lower priced discount brands.
As it is assured that the cigarette of AKTCL is lower segmented brands, all types
of lower income based customer are the market of AKTCL.
Various Methods
Price-matching guarantees
Price-matching guarantees are commonly used in consumer and industrial
markets. Best Buy has always been known for their price-matching guarantee
as well. While a store with price matching guarantees has no fear of losing
customers to rivals price cuts, it has every incentive to raise its own price to
charge a higher price to its loyal customers. It is an anti-competitive tactic that
warns competitors not to attempt to steal market share by undercutting prices.
AKTCL is not actually allowed this type of selling strategy. That does not mean
the price is different from the competitors, price is same as far as the lower
segment is consideration.
Price slashing
Price cutting is a sales technique that reduces the retail prices to a level low
enough to eliminate competition. Businesses will implement this as a way to
under-cut the competition and offer the best price to the consumer. Basically,
no company implement this type of method in terms of cigarette industry.
Discounting
Discounting is something seen in almost every retail store, and grocery store.
Discounting is present in just about every business in some way, whether it be
coupons, advanced purchases, or bulk buying, businesses are quick to offer a
pricing discount. AKTCL has a system of free pack program. If any retailer gives
7 inside cover of any brand he or she will be given a single pack brand totally
free. Coupons and promotions give an economic incentive for the customer to
use when purchasing a brand. The effect on consumer redemption of coupons
has mostly been positive as it attracts customers, and gives them interest in a
particular brand. Discount brands are becoming more popular among lower
Socio-economic Groups. As the price of cigarettes continues to increase
smokers are becoming more likely to trade down to discount brands which are
becoming more and more acceptable due to their increased recognition and
popularity in the market-place. Overall, the industry recognizes that discount
brands have the potential to fulfill both the emotional needs and the practical
needs of many smokers.
Haggling
o Intense competition
o Customer buying decisions with high financial, strategic or
organizational impact
o Decision makers at many levels in the customer organization, often
requiring a team sale
o Protracted, costly sales cycles
o Big rewards for success, and even bigger costs for failure
Target Account Selling Includes Learning To:
Assess the Opportunity
TAS is an objective process that reveals critical customer, business and
competitive information, and drives an informed decision to compete. AKTCL
adopted this type of selling strategy to assess the opportunity for the sales
persons.
Set the Competitive Strategy
TAS creates or shows a framework for determining the most effective approach
to winning the customers business. Through this type of selling strategy
salesperson of AKTCL can do competitive selling effort every period of their job
schedule.
Identify the Key Players
TAS is a method to identify the roles and status of people who affect or will be
affected by customer buying decisions. Through TAS strategy a salesperson of
AKTCL can be able to know the monthly mission to do. So that, he can moves
himself according to the monthly target schedule.
Define the Relationship Strategy
TAS is a process to align with influential decision-makers in the buying
organization who can help you win the sales opportunity. As target has been
prescribed monthly and revised everyday, they keep good relationship with the
key buyer of their commodity.
Turn Ideas into Activities
TAS is an approach to identify specific tactics needed to win the opportunity
and the resources required to support each task. According to the target, every
salesperson of AKTCL tries to push sale through their interpersonal skill with
emotional motivation.
supplies. Sales jobs involving important decisions for customers differ greatly
from sales jobs involving minor decisions. Consider the company that needs a
computer controlled drill press. Buying the drill press is a big decision. The drill
press sales representative needs to be knowledgeable about the customers
needs and the features of drill presses. The salesperson will have to interact
with a number of people involved in the purchase decision. But the AKTCL
cigarettes is not so heavily expensive not so important or convenient goods,
thats why purchasing decision is not important in this case. As results, all the
BP and SR have to be very sincere about their selling effort.
EMPLOYEES or HIERARCHY
In AKTCL marketing and sales department have a number of employees
working under R.S.O. (Regional Sales Officer). R.S.O. sits on the 1 st floor of the
chamber. Numbers of employees are working in different positions in the
ground floor of AKTCL chamber. Here I found:
Md. Kamruzzaman
Md. Fazlul Karim
Md. Abdul Latif
M. R.
(Merchandising
Representative)
Regional Sales Officer (R. S. O.) sits on the first floor of the chamber. In
numbers (R. S. O.) is one and he controls three territory offices, which are
located in Dhanmondi office, Basabo office and the Khilgaon office. I am doing
my internee in the Khilgaon branch distributor. Among the other staffs Territory
Sales Officer (T. S. O.) is one in number and he control a large areas sales
volume. T.S.O. is the in charge of a single office. He will responsible for the one
particular areas sales target. He controls all the other staffs of the offices.
Among the Zone In charge (Z. I.) they are 6 in numbers but during my intern
period I have found four Z. I. and I have also exposed their name too. Less than
six Zone In charge there are twenty Sales Representative (S. R.) as well as Van
Puller (V. P.) with each S. R. There have also two Merchandising Representative
(M. R.) who works under T. S. O. too. About twenty seven Brand Promoter (B. P.)
also working under personal supervision of T. S. O. These employees have
divided by zone basis and each zone has an in charge. All the forces and staffs
are recruited and maintained by the territory sales officer Md. Anwar Hossain.
Territory Sales Officer (T. S. O.) recruited by the head office recruiting
procedures. Sales team working all over the zone. Six zones in charge manage
these sales forces and try their hard to fulfill their monthly sales target unit.
The actual marketing activities of AKTCL are performed by the Territory Sales
Officer. Not only that about the entire job under the marketing and selling
department are directed and maintained by the T. S. O. Md. Anwar Hossain.
AREAS OF T. S. O.
The area of Md. Anwar Hossain, T. S. O. of Khilgaon distributor agency is vastly
well organized. He perform the major part of hi job in building a good image of
his brands toward the customer as well as retailer. He perform and supervise
the below activities;
Golapbag Chowrasta
Tikatuli Chowrasta
Khilgaon Chowrasta
Sepahibag
Area
of
Razdhani Super
Market
Kaptan Bazar
Meradia
Bonosree
Rampura
Territory
Sales Officer
(T. S. O.)
Khilgaon Jhilpar
Modhu Bag Road
Nobabpur Road
Bongshal Road
Md. Anwar
Hossain
Chankhar Pull
Mogbazar Road
Dhaka Medical College
Beylli Road
TSC and Shahid Minar
Eskaton Road
Shahabag Road
Shahabag Road Right Side Only
RESPONSIBILITY
Review discussion on the previous days morning meeting topics and the
instructions given
Let the SR inform to the retailer about the particular decision taken by
the head office for the retailer
Writing down some important suggestion from the SR which were given
by the retailer and let inform to the head office to emphasize on that
If there are any logistic problems discuss with the BP, SR, ZI about the
problems to solve
If there are any promotional activities going on discuss with all the BP,SR
and ZI about the matter
After distributing all the daily task of BP, ZI and SR, supervise them all
ATTACHEMENT WITH MERCHANDISING REPRESENTATIVES
PROMOTION CO_ORDINATOR
Merchandising Representatives (M. R.) is attached with Regional manager and
give report to him about any activity that he performs. In my office there are
two Merchandising Representatives (M. R.) and they are Md. Mitul Hassan and
Md. Zakir Hossain. Company gives promotional material in regional office. M. R.
coordinators control this and after that they divide this material in all areas
according to their sale volume or their requirement. His job is to execute plan
to increase merchandising presence in the region.
RESPONSIBILITIES
PURCHASE ORDER
It is conduct after the approval of indent from Regional Sales Officer. It is
permeation from Regional Sales Officer and it conform the availability and
allocation of funds for certain activity that relates to promotion.
careful about consumer. His speaking power is very attractive. He acts upon all
objectives of BP in real sense.
So, I have learnt maximum knowledge about market with the help of Mr. Anwar
Hossain (TSO). I saw other ZI but unfortunately they are not so much active.
But Md. Anwar Hossain (TSO) is very active. He has a sharp brain too. He is
very cooperative and young. He properly does his duty to ensure the
availability of all brand and specially Rally and Marise brands. He convinced the
consumer with the help of incentives like, cap, digital clock, glass, plate as well
as free sample of particular brand etc.
AKTCL gives a Plano gram to every BP. So Md. Anwar Hossain (TSO) also works
according to Plano gram. He put Marise brand stock then Marise White, Super
King special filter is second and at last Rally and Special Abul Bidi. He was also
decorating the out let with merchandising material.
OBJECTIVES OF BP
o Topping Up
o Availability
o Visibility
o Pack display
o Promotion awareness
o Consumer contact
o Merchandising awareness
o Competition awareness
o Market intelligence
o Out of stock
Nine step of call is very effective for salesmen and as well as employee of
AKTCL. With
the help of these steps a salesman done his job in a good
manner he accomplishes his work within time. These steps are;
Preparation
Approach
Stock check
Presentation
Closing
Internal store marketing
Consumer contact
Evaluation
Administration
PREPARATION:
In this first step a salesman should check the stock, which is required in
market. In the morning he should be neat & clean if he feels any deficiency, he
should be control this deficiency. He should check the van and he should have
the cash memo and ballpoint. All the point also be checked by the TSO Md.
Anwar Hossain too.
APPROACH:
Complete the passage from distributor to shop and when reach in shop he
must understand the behavior of shopkeeper. According to the behavior of the
retailers, the SR approach in accordance with the situation.
STOCK CHEK:
SR of AKTCL check all brands are available in the shop and if any brand is short
then he should complete the stock and give the stock to shopkeeper according
to its sale volume.
PRESENTATION:
If SR has any information about any brand of AKTCL, he should give to shop
keeper and if AKTCL offers any scheme and promotion, the responsibility of SR
is to give all these information to shop keeper.
CLOSING:
Give maximum material to shopkeeper. Check cash memo and at the end,
close all written work.
A Sales Representative cannot act on nine step of call, because lack of
education a Sales Representative faces a lot of problems. I saw shopkeepers
were very angry with Sales Representative. They demand shirts, Caps, wall
clocks and other such incentives. So Sales Representative also faces these
types of problems.
IN STORE MARKETING & MERCHANDISING:
If AKTCL gives promotion to any shopkeeper, Salesman should check the
display of all brands, arrangement of all brands. The place where these
promotional activities exist, should be neat & clean.
COSUMER CONTACT:
This step is most important for salesmen and sales promoters as well. In which
we convert the smoker to AKTCL brand if he use any other brand. In this step
SR convince the customer to use the brand of AKTCL.
ADMINISTRATION:
Administer to all activities like cash memo, DSD etc. All the SR has to report
everyday in daily cash memo. SR also has to perform administrative job during
field work.
EVALUATION:
Sales Representatives always do evaluation of self-analysis during whole day
and if any deficiencies occur note them and control in the next tour. An
ordinary SR try to maintain the nine step of sales call process.
A salesman cannot act on nine step of call because lack of education a
salesman faces a lot of problems. I saw shopkeepers were very angry with
salesman. They demand shirts, liters, wall clocks and other such incentives. So
salesman also faces these types of problems.
AKTCL gives salary on monthly based instead of sales commission based to its
Sales Representatives. AKTCL gives monthly salary according to the company
regulation. AKTCL clear the monthly salary within 30 days. The actual working
day period according to the AKTCL regulation and policy is 25 days working
period and remaining 5 days left for their payment clearance. Friday is the
weekly holiday for the all employees. During Eid special vacation period, it is
done just before the Eid day.
program in indoor office at first floor. There all the SR were gather together and
trained by the RSO and by the ZI as well as by the TSO after one day gap. This
raining was occurring at 6:30 pm. That was the end time of that days sales
job. This time was selected by the AKTCL authority because of not disturbing
the regular sales volume. All Sales Representatives of this distributor were
there. In which two T. S. O. are also available there. At the start of program, T.
S. O. gave introduction to all of Sales Representatives to RSO for making
program more interesting.
T. S. O. plays a game between Sales Representatives. For this proposes they set
teams. Every team conducts 5 members or there are 5 members in every
team. The TSO train all the SR about the 9 step sales call process. So, that was
very interesting program and was very effective for Sales Representatives. At
the end AKTCL launch to all of candidates. Timing of program was (6 to 8) pm.
So, in two hour Sales Representatives learn maximum knowledge about 9
steps. At the end Md. Anwar Hossain gives instruction to all Sales
Representatives. Actually the basic purpose of this program was to increase the
efficiency of all Sales Representatives.
STOCK REGISTER
AKTCL maintains a register that is called SD for the purpose of daily sales. This
is the legal responsibility by the company to maintain a stock register on daily
bases.
REGISTER SHOWS
On hand stock
This is the annual marketing information register in which all the information
about total brand of AKTCL on annually basis this register shows the market
volume of AKTCL. It also shows the secondary sale volumes, coverage of daily
sales stock. With the help of this register we see accumulated sales trends and
brand wise sales trends.
By the above draft all the SR summarizes their daily sales and report this paper
to the Zone In charge and approved by the TSO Md. Anwar Hossain and after
all this activities done Assistant Manager note down the daily sales and receive
the cash amount from the SR. After receiving the cash from the SR, all SR
become relieve from their days job. Thus, AM Mr. Bappi maintain the account
records and also prepare monthly profit and loss account.
TSO set out the monthly activity plan for SR as well as ZI and BP too. This is
called journey planning. A Territory Sales Officer visits those shops, which have
high sale volume and very big occurrence happened. So, with the help of this a
T. S. O. easily plan out their monthly activities. A ZI planned about the monthly
journey in a written form and TSO revise them very often, whether they are
doing appropriately or not. With the help of this monthly journey planning a
TSO can very well know and understand when and where a ZI can be found. If a
ZI or any other personnel can not be found in accordance with the planned
paper, then those personnel will be punished in accordance with the rule
regulation of the AKTCL.
The successful salesperson realizes that the same sales approach does not
work with all customers; it must be adapted to each selling situation. The
salesperson must be sensitive to what is happening and flexible enough to
make those adaptations during the sales presentation. TSO of AKTCL Md. Anwar
Hossain always trains to all the sales representatives to be flexible during
selling the commodity with the retailer. He also trains them to cope with the
situation during the selling approach.
CREATIVITY
Successful salespeople use their creative juices to build bridges to their
customers, gain long-term commitments, and effectively manage relationships.
Creativity is the trait of having imagination and inventiveness and using it to
come up with new solutions and ideas. Sometimes it takes creativity to get an
appointment with a prospect. It may take creativity to develop a longremembered presentation in the buyers mind or it takes creativity to solve a
sticky installation problem after the product is sold.
CONFIDENCE
Successful salespeople tend to be confident about themselves, their company,
and their products. They believe that their efforts will lead to success. Dont
confuse confidence, however, with wishful thinking. According to research,
truly confident people are willing to work hard to achieve their goals. They are
open to criticism, seek advice from others, and learn from their mistakes. They
expect good things to happen, but they take personal responsibility for their
fate. People who lack confidence, according to these same studies, are not
honest about their own limits, react defensively when criticized, and set
unrealistic goals.
EMOTIONAL INTELLIGENCE
Salespeople span the boundary between their companies and the companies
customers. At times the objectives of the company can differ from those of the
customers. The company wants the salesperson to make profits, and the
customer wants to buy a product that meets his or her needs at the lowest
price. Dealing with these conflicting objectives can be very stressful for
salespeople.
COMMUNICATION SKILLS
The key to building strong long-term relationships is to be responsive to a
customers needs. To do that, the salesperson needs to be a good
communicator. But talking is not enough; the salesperson must also listen to
what the customer says, ask questions that uncover problems and needs, and
pay attention to the responses.
TRUSTWORTHINESS
Most salespeople work in the field without direct supervision. Under these
conditions they may be tempted to get up late, take long lunch breaks, and
stop work early. But successful salespeople do not surrender to these
temptations. They are self-starters who do not need the fear inspired by a
glaring supervisor to get them going in the morning or to keep them working
hard all day. Spending long hours on the job is not enough. Salespeople must
use their time efficiently. They need to maximize the time spent in contacting
customers and minimize the time spent in traveling and waiting for customers.
To do their job effectively, salespeople must organize and plan their work.
Finally, successful salespeople are motivated to learn. They must continually
work at improving their skills by analyzing their past performance and using
their mistakes as learning opportunities.
INDEPENDENCE AND RESPONSIBILITY
Many people do not want to spend long hours behind a desk, doing the same
thing every day. TSO of AKTCL Md. Anwar Hossain is one of the examples of
such person. They prefer to be outside, moving around, meeting people, and
working on various problems. Selling ideally suits people with these interests.
The typical salesperson interacts with dozens of people daily. Most of these
contacts involve challenging new experiences. Selling also offers unusual
freedom and flexibility. It is not a nine-to-five job. Most salespeople decide how
to spend their time; they do not have to report in. They have the freedom to
determine what they do during a day, to decide which customers to call on and
when to do paperwork. Long hours may be required on some days, and other
days may bring fewer demands. Because of this freedom, salespeople are like
independent entrepreneurs. They have a territory to manage and few
restrictions on how to do it. They are responsible for the sales and profits the
territory generates. Thus their success or failure rests largely on their own skills
and efforts.
MARKETING PROCESS
During the past century most Companies were small and knew their customers
first hand. Managers picked up marketing information by being around people,
observing them and asking questions. During this century, however, many
factors have increase of the need for more and better information. As sellers
use more complex marketing approaches and face more competition, they
need information of the effectiveness of their marketing tools. Managers need
more up-to-date information to make timely decision.
In carrying out marketing analysis, strategies, planning, implementation and
control marketing mangers need information at almost every turn. They need
information about customers, competitors and other forces in the market place.
One marketing executive put it this way To manage a business well is to
manage future and to mange the future is to manage information. Increasingly
marketers are viewing information just as input for making better decision. But
also as an important strategic asset and marketing tools.
In this project work the topic was to Marketing Strategy of Abul Khair Tobacco
Company Limited. During the project, a conclusive method of the marketing
and selling approach was followed to find out the selling concept and reality.
While working on the project, it was realized that the selling tobacco work is
very hard to establish any marketing strategies before making decision.
MARKETING CONCEPT
There are different types of marketing concepts;
Marketing Concepts
Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing
Concept
Customer Concept
MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd.
Page 53
Production Concept is a concept where goods are produced without taking into
consideration the choices or tastes of your customers. It is one of the earliest
marketing concepts where goods were just produced on the belief that they will
be sold because consumers need them.
Management Obligation
Management should concentrate on achieving production efficiency, low cost
and mass distribution.
Assumption
Consumers like cheaper product. In that case, it is possible because huge
production allows cost minimization as well as price minimization up to a
certain level. Consumers like to get product at their hand, at convenient places.
In that case organizations take massive distribution effort.
Limitation
It is very tough to satisfy customer by using this concept because product
quality and feature will not be good.
AKTCL is strictly adopting this type of marketing concept. That is why the price
of the most of the brands of AKTCL is low. The segmentation of the AKTCL is
also middle and lower segment too. For the lower segmented customer it must
keep in mind that the price should be low. That is why production concept must
be followed by the AKTCL.
The Product Concept in marketing refers to the ideology that a product would
be the most successful in the market if the main focus is put on the product
quality and specifications itself. It goes against the Marketing Concept that puts
focus on consumer insight more than on anything else. The Product Concept
simply believes that the product would sell itself, and it is especially applicable
to technological breakthroughs.
Management Obligation
Management should concentrate on making superior products and improving
them over time.
Assumption
It assumes that buyers admire well-made products and can evaluate quality
and performance.
Limitation
Who will define and what would be the definition of quality are the main
problems of that concept.
If AKTCL wants to follow this type of marketing concept, then the price of the
product price will increase and the segment customer may switch that brand
for the price increases. That is why the AKTCL is not following the product
concept.
Many organizations follow the selling concept, which holds that consumers will
not buy enough of the organization's products unless it undertakes a large
scale selling and promotion effort. The concept is typically practiced with
unsought goods, those that buyers do not normally think of buying such as
encyclopedias or insurance. These industries must excel at tracking down
prospects and selling them on product benefits.
Management Obligation
Management must be good at tracking down prospects and selling them on
product benefits.
Assumption
This concept assumes that consumers typically show buying inertia or
resistance and must be coaxes into buying.
Limitation
Marketing based on hard selling carries high risks. It assumes that customers
who are coaxed into buying a product will like it and if they do not they will not
badmouth it or complain to consumer organizations and well forget their
disappointment and buy it again.
AKTCL is adopting this type of selling concept strictly.
MARKETING CONCEPT
The concept holds that achieving organizational goals depends on determining
the needs and wants of target markets and creating, delivering and
communicating the desired satisfactions or customer value to its chosen target
markets more effectively and efficiently than competitors do.
Management Obligation
CUSTOMER CONCEPT
The idea that consumers will favor product that are designed according to their
requirement is called customer concept. A growing number of todays
companies are now shaping separate offers; services and messages to
individual customers. These companies collect information on each customers
past transaction, demographics and psychographics and media and distribution
preferences.
Management Obligation
Managements task is collecting information on each customers preferences
and they are responsible for producing separate offers, services and messages
to individual customers as per requirements.
Assumption
This concept assumes that consumers like to get product according to their
own choice.
Limitation
It is applied to overcome segmentation problem as each person has different
identity. But customization and customerization both are highly expensive.
Since the commodity of AKTCL is cigarette, cigarette is being made without the
concept of customer. That is why this type of customer is not being followed by
the AKTCL.
MARKET SEGMENT
The division of a market into different homogeneous groups of consumers is
known as market segmentation.
Rather than offer the same marketing mix to vastly different customers, market
segmentation makes it possible for firms to tailor the marketing mix for specific
target markets, thus better satisfying customer needs. Not all elements of the
marketing mix are necessarily changed from one segment to the next. For
example, in some cases only the promotional campaigns would differ.
A market segment should be:
measurable
accessible by communication and distribution channels
3)
4)
Premium Segment
II.
Medium Segment
III.
Low Segment
IV.
According to the product price and quality offers, Abul Khair Tobacco Company
Limited segmented their large market into medium segment, low segment and
very low segment.
THE MARKETING MIX
(The 4 P's of Marketing)
Marketing decisions
categories:
generally
fall
into
the
following
four
Product
Price
controllable
Place (distribution)
Promotion
The Marketing Mix
Product
Place
Target
Market
Price
Promotion
These four P's are the parameters that the marketing manager can control,
subject to the internal and external constraints of the marketing environment.
The goal is to make decisions that center the four P's on the customers in the
target market in order to create perceived value and generate a positive
response.
PRODUCT DECISION
The term "product" refers to tangible, physical products as well as services.
Here are some examples of the product decisions to be made:
Brand name
Functionality
Styling
Quality
Safety
Packaging
Repairs and Support
Warranty
Accessories and services
Most of the product decisions are made from the head office of AKTCL which is
located in Chittagong, Pahartali area.
PRICE DECISION
Some examples of pricing decisions to be made include:
Pricing strategy (skim, penetration, etc.)
Suggested retail price
Volume discounts and wholesale pricing
Cash and early payment discounts
Seasonal pricing
Bundling
Price flexibility
Price discrimination
Pricing decision also maintained by the Chittagong head office. As a distributor
TSO of Khilgaon Md. Anwar Hossain is following the instruction abot the price
decision made by the head office.
DISTRIBUTION DECISION
Distribution is about getting the products to the customer. Some examples of
distribution decisions include:
Distribution channels
Market coverage (inclusive, selective, or exclusive distribution)
Information Gathering
The term salesperson covers a wide spectrum of positions from;
o Order Taking
o Commodity Delivering
The Role of the Sales Force
Personal selling is effective because salespeople can;
Adjust the marketing offer to fit the special needs of each customer
Training Salespeople
Compensating Salespeople
Supervising Salespeople
Evaluating Salespeople
Training Salespeople
The average sales training program lasts for one months and has the following
goals
TSO Md. Anwar Hossain adopt training program at a very short time period.
Compensating Sales people
Sales force compensation plans adopted by the AKTCL both motivate
salespeople and direct their activities.
Salary
Bonus
Commission
Benefits
Supervising Salespeople
Organizational climate
Positive incentives
Honor
Awards
Merchandise/cash
Trips
Evaluating Salespeople
TSO evaluate sales people monthly as well as daily sales basis and after
evaluating action taken;
Work plan
INTRODUCTION STAGE
In the introduction stage, the firm seeks to build product awareness and
develop a market for the product. The impact on the marketing mix is as
follows:
Profit Negative
GROWTH STAGE
In the growth stage, the firm seeks to build brand preference and increase
market share.
MATURITY STAGE
At maturity, the strong growth in sales diminishes. Competition may appear
with similar products. The primary objective at this point is to defend market
share while maximizing profit.
o AKTCL attract only those people whom above 18 and not less then that.
o AKTCL gives more incentives to salesmen during any promotion.
o AKTCL is taking care of their employees.
o Management of AKTCL create a database and all its employees are link
between each other
o AKTCL conducts health and safety programs of their employees.
o The working environment of AKTCL is very good.
o AKTCL appreciates all of those employees who show more effort in their
work.
o AKTCL conduct SR training program.
o AKTCL follows Target Account Selling method strategy
o AKTCL follows Selling and Marketing concept.
o AKTCL segments are medium, low and very low which matches most of
the Bangladeshi
o Salaries of Sales Representatives are given in time, thats why they are
satisfied on this.
WEAKENESSES
A weakness is an attributes of the person or company that are harmful to
achieving the objective.
After analyzing the AKTCLs Mohsin distributor, I have found
weaknesses about the organization; these are as follows;
various
elevators, hospitals and clinics, court buildings, airport buildings, sea and
river port buildings, railway station buildings, bus terminal buildings,
ferries, cinema halls, covered exhibition centers, theatres, shopping
centers, public toilets, and government and private owned children
parks.
o Motor vehicles, buses, trains, passenger ships, launches, all mechanized
vehicles and aero planes are referred to as public transport under the
law.
o Salaries of salesmen are very low due to this reason they are not
satisfied.
o Number of distribution is less as compare to its area.
o Brand promoter is not working up to the standard.
o Sales Representatives willingly does not cover rural area according to
their desire.
o Some time SR does not cover his area in proper time.
o TSO always push all the employees for their own job for extra effort.
o Zone In charge, Brand promoter as well as Sales Representatives do not
perform extra effort
OPPERTUNITIES
Opportunity is an external condition that is helpful to achieving the objective.
After analyzing the AKTCLs Mohsin distributor, I have understood and tried to
find out the opportunity for the distributor. These opportunities are as follows;
o Brands acceptance shows that it has potential to grow and grow well.
o Promotion activities give us ideal opportunities to cannibalize substantial
share from declining brands.
o The law, however, does not prohibit smoking in open space, hotels and
restaurants and parks. This is an opportunities to segment market as
well.
o The law suggests that the owner, caretaker, controlling authorities and
management of public places and public transport could have an area
within designated as smoking zone.
o Promotion has been a strong basis towards building up big brand image
for all AKTCL.
The BCG matrix method is based on the product life cycle theory that can be
used to determine what priorities should be given in the product portfolio of a
business unit. To ensure long-term value creation, a company should have a
portfolio of products that contains both high-growth products in need of cash
inputs and low-growth products that generate a lot of cash. It has 2
dimensions: market share and market growth. The BCG Growth-Share Matrix is
a portfolio planning model developed by Bruce Henderson of the Boston
Consulting Group in the early 1970's. It is based on the observation that a
company's business units can be classified into four categories based on
combinations of market growth and market share relative to the largest
competitor, hence the name "growth-share". Market growth serves as a proxy
for industry attractiveness, and relative market share serves as a proxy for
competitive advantage. The growth-share matrix thus maps the business unit
positions within these two important determinants of profitability. The basic
idea behind it is that the bigger the market share a product has or the faster
the product's market grows the better it is for the company.
Placing products in the BCG matrix results in 4 categories in a portfolio of a
company:
1. Question Marks (= high growth, low market share)
The business unit has low market share compared to competitors, however it is
doing business in high-growth market. Most of the new businesses start in this
quadrant. There are well established businesses in this market and new
businesses try to grow and capture more market share. This market is growing
and there are opportunities for new businesses. At the same time there is risk
involved with investing in this business because of that these businesses are
called question marks. Question Marks have to develop and grow by investing
and continuously improving their business. Grow sales by increasing market
share. Use cash from Cash Cows to support required investments. Question
marks are growing rapidly and thus consume large amounts of cash, but
because they have low market shares they do not generate much cash. The
result is large net cash consumption. A question mark (also known as a
"problem child") has the potential to gain market share and become a star, and
eventually a cash cow when the market growth slows. If the question mark
does not succeed in becoming the market leader, then after perhaps years of
cash consumption it will degenerate into a dog when the market growth
declines. Question marks must be analyzed carefully in order to determine
whether they are worth the investment required to grow market share.
- have the worst cash characteristics of all, because high demands and low
returns due to low market share
- If nothing is done to change the market share, question marks will simply
absorb great amounts of cash and later, as the growth stops, a dog.
- Either invests heavily or sells off or invests nothing and generates whatever
cash it can. Increase market share or deliver cash
2. Stars (=high growth, high market share)
The business has high market share compared to competitors and it is doing
business in high-growth market. This business is a market leader. Successful
Question Marks will grow their business and capture more market share and
will hopefully become Stars (move from the Question Marks quadrant to the
Stars quadrant). Successful and competitive organizations have at least one
star business unit or product. Abul Khair Tobacco Company Limited in going
under stars category. Stars have to improve their business continuously in
order to keep their position in the marketplace. As long as this market is
growing new question marks will try to capture new business. Invest for sales
growth and market share. Use cash from Cash Cows to support required
investments. Stars generate large amounts of cash because of their strong
relative market share, but also consume large amounts of cash because of
their high growth rate; therefore the cash in each direction approximately nets
out. If a star can maintain its large market share, it will become a cash cow
when the market growth rate declines. The portfolio of a diversified company
always should have stars that will become the next cash cows and ensure
future cash generation.
- Use large amounts of cash and are leaders in the business so they should also
generate large amounts of cash.
- Frequently roughly in balance on net cash flow.
However, if needed any attempt should be made to hold share, because the
rewards will be a cash cow if market share is kept.
The BCG Matrix method can help understand a frequently made strategy
mistake: having a one-size-fits-all-approach to strategy, such as a generic
growth target (9 percent per year) or a generic return on capital of say 9.5% for
an entire corporation.
In such a scenario:
A. Cash Cows Business Units will beat their profit target easily; their
management has an easy job and is often praised anyhow. Even worse, they
are often allowed to reinvest substantial cash amounts in their businesses
which are mature and not growing anymore.
B. Dogs Business Units fight an impossible battle and, even worse, investments
are made now and then in hopeless attempts to 'turn the business around'.
C. As a result (all) Question Marks and Stars Business Units get mediocre size
investment funds. In this way they are unable to ever become cash cows.
These inadequate invested sums of money are a waste of money. Either these
SBUs should receive enough investment funds to enable them to achieve a real
market dominance and become a cash cow (or star), or otherwise companies
are advised to disinvest and try to get whatever possible cash out of the
question marks that were not selected.
Under the growth-share matrix model, as an industry matures and its growth
rate declines, a business unit will become either a cash cow or a dog,
determined solely by whether it had become the market leader during the
period of high growth.
While originally developed as a model for resource allocation among the
various business units in a corporation, the growth-share matrix also can be
used for resource allocation among products within a single business unit. Its
simplicity is its strength - the relative positions of the firm's entire business
portfolio can be displayed in a single diagram.
Limitations
The growth-share matrix once was used widely, but has since faded from
popularity as more comprehensive models have been developed. Some of its
weaknesses are:
The matrix depends heavily upon the breadth of the definition of the
market. A business unit may dominate its small niche, but have very low
market share in the overall industry. In such a case, the definition of the
market can make the difference between a dog and a cash cow.
While its importance has diminished, the BCG matrix still can serve as a simple
tool for viewing a corporation's business portfolio at a glance, and may serve
as a starting point for discussing resource allocation among strategic business
units.
RECOMMENDATION
&
CONCLUSION
RECOMMENDATION
Among the fast moving consumer goods company AKTCL is one of the
prominent native company which has several product line and many more
come in future. So in term of consumer perception and positioning they should
make in mind the following recommendation
Research on the characteristics of effective salespeople indicates that many
different personality types can be successful in sales. However, successful
salespeople do share some common characteristics. They are highly motivated,
dependable, ethical, knowledgeable, good communicators, flexible, creative,
confident, and emotionally intelligent.
AKTCL in Khilgaon needs to increase the efficiency of Consumer Contact
in a more planned way.
In the weak belts in respect of less volume share AKTCL can increase the
Market Share by improving the Consumer Contact with the help of
Competent Workforce.
Warehouses in Khilgaon are overloaded. So, AKTCL needs more capacity
based warehouses in Khilgaon.
AKTCL needs more improvement in Merchandising Maintenance System.
TSO is always under pressure due to High Target Achievement, managing
the Distributor issues as well supervising the SR.
Sales force should be more trained up and proactive to capture the
market of tobacco.
Product availability should be maintained by the company.
Production should be as per demand of the customer.
It is recommended that certain promotional activities to be undertaken in
order to effective the program like face to face discussion, free samples,
incentives providing etc.
It is recommended that AKTCL should arrange for training program of all
the employee, sales personnel and executives.
The concerned sales & marketing executive should occasionally visit the
remote markets to encourage the SR.
As a big Target Market, AKTCL is ignoring the Rural Areas in Area of TSO,
which should be considered.
Sales Representatives are the earning hand of any Organization. But the
percentage of the commissions or salary of Salesmen is less.
Authority should pay more attention on promotional tools.
Authority should adopt performance appraisal system.
CONCLUSION
We should study personal selling because we all use selling techniques. If we
want to work in business, we need to know about selling because salespeople
play a vital role in business activities. We might become a salesperson. Selling
jobs are inherently interesting because of the variety of people encountered
and activities undertaken. In addition, selling offers opportunities for financial
rewards and promotions. Salespeople engage in a wide range of activities,
including providing information on products and services to customers and
employees within their firms. Most of us are not aware of many of these
activities because the salespeople we meet most frequently work in retail
stores. However, the most exciting, rewarding and challenging sales positions
involve building partnerships: long-term, winwin relationships with customers.
The specific duties and responsibilities of salespeople depend on the type of
selling position. However, most salespeople engage in various tasks in addition
to influencing customers. These tasks include managing customer relations,
serving as the account team manager for their firm, managing the relationships
with vendor and channel members, and providing information to their firm.
Sales jobs can be classified by the roles salespeople and their firms play in the
channel of distribution. The nature of the selling job is affected by whom
salespeople work for and whether they sell to manufacturers, distributors, or
retailers. Other factors affecting the nature of selling jobs are the customers
relationship to the salespersons firm, the salespersons duties, the importance
of the buying decision to the customer, where the selling occurs, the tangibility
of the benefits considered by the customer, and the degree to which the
salesperson seeks a commitment from customers. After conducting this
assignment successfully I found that AKTCL of Bangladesh can be able to
create a significant position to our economy and try to boost up the economy
of Bangladesh. In conclusion I can strongly predict that AKTCL contains a great
future ahead of it.
APPENDIX
Graph & Chart
No.
1
Page
No.
16
Leaf Production
19
Burley Production
19
Employee Hierarchy
34
37
55
60
SWOT analysis
63
BCG Matrix
66
10
67
Detail Information
BIBLIOGRAPHY
o Gerald L. Manning, Barry L. Reece; eighth edition, Selling Today.
o By Philip Kotler, Eleventh edition Marketing Management
o Naresh K.Malhotra ,5th Edition, Marketing Research .
o John Daniel D.; Radebaugh Lee H.; ninth Edition; International
Business.
o www.bangladeshyellowpages.com
o www.abulkhairtobacco.com
o www.google.com
o www.answers.com
o www.wikipedia.org
Reference
1. Philip Kotler, Principles of Marketing, Prentice -Hall, 1980
2. Mack Hanan, Consultative Selling: the Hanan Formula for High-Margin Sales
at High Levels, Kindle Edition, 1970.
3. Linda Richardson, Stop Telling, Start Selling: How to Use Customer-Focused
Dialogue to Close Sales, McGraw-Hill, 1998.
4. Atul Uchil, Relationship Selling: the Fine Art of Consultative Sales, Outskirts
Press, 2007.
5. Michael A. Belch George E. Belch Advertising and Promotion: An Integrated
Marketing Communications Perspective, 7/e., McGraw-Hill/Irwin, 2006
6. Guaranteed Sale - Five Steps
7. Di Frances, John. "Relationship Selling Sales Speaker." Motivational Speaker
Professional Keynote Speaker - Motivational Public Business Speakers
Bureaus. 14 Mar.
8. www.thetasgroup
9. CDP (1995a). Benson & Hedges in the South (Excl. London). Consumer
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