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trade war. The Imperial Tobacco Company of the United Kingdom and the American Tobacco Company of the United States agreed to form a joint venture, the „British-American Tobacco Company Limited.The BAT business began life in countries as diverse as Canada, China, Japan, Denmark, Germany, New Zealand, South Africa and Australia – but not the UK or the USA. By 1910, its operations had extended to the West Indies, India, Ceylon (now Sri Lanka). East Africa, Java, Malaya (now Malaysia) and Nigeria. BAT listed on the London Stock Exchange in 1912 and British investors acquired most of its American parent‟s shares.BAT held strong market positions around the world and had leadership in more then50 markets. Since 1994, the group has grown global market share from 10.7percent to over 15 percent. BAT has 86 factories in 64 countries. BAT uses more than 700 million kilos of tobacco and has 25 leaf growing projects and 23 leaf processing plants, with over 300 brands in BAT portfolio and a market share of 15percent, make the cigarette chosen by one in seven of the world‟s one billion adult smokers. BAT differentiated portfolio of brands included well established international brands such as Lucky Strike, Kent, Dunhill, Benson & Hedges, 555,Viceroy, Pall Mall. John Player Gold Leaf (JPGL). BAT is the second largest quoted tobacco group with annual shipment of more than 800 billion cigarettes. PAKISTAN TOBACCO COMPANY Pakistan Tobacco Company is the first-multinational company of Pakistan andrecently completed 54 years of its operations in the country. The company is themember of the multinational British American Tobacco group, which employs over 100,000 people, operates in 180 countries and is one of the top 5 FMCG trade-marketing companies in the world. History of Pakistan Tobacco Company PTC was incorporated in Pakistan and is listed on the three stock exchanges of thecountry. It was established in the same year when Pakistan took its birth in 1947, andtook over the business of Imperial Tobacco Company (India). It had three branches –Karachi, Jehlum and Akora Khattak, but Karachi factory however has been closed since1992 due to heavy losses and some other reasons. The first plant was set in a warehouse in Karachi port with monthly production of
25. recent increase in activities of the tax-evading sector was stated to be alarming. a development project was initiated in N.2.8billion. . the gaps being filled up by import. Pakistan Tobacco Company has divided the whole country into 5 regions (Central Punjab. Northern Region.After six years of serial losses (1997-2002). For PTC. rose sharply by 175 % to Rs.162 in 1994. nonetheless. during which the company said to have unparalleled performance in new product innovation in the cigarette industry.50 in 2000. Lower Sind and Upper Sind).F.0 billion for the corresponding period of last year. and the top quality American Tobacco found way to Pakistan. The accounts for the six months to end-June 2002.P. shareholders‟ equity amounted to Rs2. They include Gold Flake.F. The company has continued to claim that four out of the five top selling brands in Pakistan are those of PTC.337 million on the balance sheet. 22 areas. When Pakistan came into being all tobacco was imported in for production of cigarettes. However.P. The price slipped over the years to hit the lowest Rs8. the company urging government support in the matter. and each area is further sub-divided into directdelivery and wholesale.129 Million.rupee share in PTC had hit its record high at Rs. But the important thing is that the shareholders' equity is back in the black. John Players Gold Leaf and Embassy. The 10. "We reiterate that tax evading sector remains a major threat to the government revenue and to our business. Pre-tax profit.The Board did not declare a dividend for shareholders for 2001 and used all of the profit to wipe out the huge accumulated deficit of Rs.A factory was established in 1955 at Jehlum. from Rs.820 billion. But in1952.W. New products introduced during the past two years accounted for 33 % of PTC's sales during the six months under review. there are four to six areas.30million cigarettes against sales of 60 million.248 million. 355distributors and 12 area ware houses. and PTC became a Public LimitedCompany in the same year. it isn't still a smooth journey." directors complain in their half term report. Southern Punjab. In1975 a new cigarette factory was set up at Akora Khattakto meet the increasing demand.555 billion being the paid up capital.W. but the stock has now recovered to Rs60.152 million and after tax profit showed growth of 92 % to Rs. At end-June 2002. released recently. with Rs. With in each region. In total. Pakistan Tobacco Company Limited had managed to swing back to a profit of Rs354 million in 2001. Akora Khattak factory is now one of the largestfactories of N.417 million. adding that the steps taken by the government in the past to check evasion had been encouraging.11. the company has five regions. from Rs. Capstan. show 2% slip in the top line to Rs10. from Rs. The company had paid the last cash dividend in 1995.
Thus staying true to John Player‟s very first big brand Player‟s Gold Leaf Navy Cut cigarettes. An enterprising businessman. PTC launched Benson & Hedges in Pakistan in March 2003. Benson & hedges In 1873. which is why the business started from London‟s fashionable West End. John Player. PRODUCTS OF THE COMPANY The main product of the company is cigarette Main Brands of the company 1. Dunhill Dunhill is imported from other countries. the idea was to make Benson & Hedges a style statement.VISION STATEMENT 1st choice For Everyone MISSION STATEMENT Transform PTC to perform with the speed. Richard Benson & William Hedges started a partnership in London. John Player Gold Leaf has an identity entrenched in sailing and maritime adventure. John Player and Sons. . flexibility and enterprising sprite of an innovation. the brand is packed with perfection to seal its freshness. 3. consumer-focused company. John player gold leaf The story of John Player Gold Leaf has to start from the story of its founder. With a distinct lifebuoy and sailor trademark. John Player started a small tobacco selling business in 1877 and turned it into a thriving cigarette company. 2. Made with the finest hand picked golden Virginia tobacco from across three continents. From the very start.
2.OTHER BRANDS OF THE COMPANY 1. Capstan by Pall Mall Capstan has a rich heritage. like many of our brands. Lakson Tobacco Company Mardan wallas Tobacco Company Counterfeit Brands .O.O. in a 'soft cup' packaging. & H.D. also boasts its origins at W. WILLS where it was a premium brand around the end of the 19th century. 2. WILLS WILLS takes its name from the heritage of one of the original Imperial Tobacco Company families: the Wills Brothers of London. 4.D. The brand was created under the auspices of W. 3. the third leading volume brand in Pakistan. Gold Flake Gold Flake. is most popular in the Punjab where it enjoys a leading position due to its equity and loyalty Competitors of Pakistan Tobacco Company There are also competitors of Pakistan Tobacco Company which are given as follows: 1. Embassy Embassy. originating in Britain in the 19th century. WILLS at Bristol and London. the brand took off when it was repositioned in the value for money segment and later a 'hinge lid' variant was introduced in 2000. & H. Launched in 1982. 3.
There are also other tax evaded – that are smuggled brands in the market.The goal of the Mardanwalls is solely money-making. No proper marketing structure or strategies exist for these brands. PTC has suffered a huge loss in the recent years as its premium brand Gold Leaf. These brands are normally sold in thickly populated villages to uneducated and low-income people. are extremely low. This company is manufacturing following brands: • • • • Marvin Gold K. and at interchanges and motorways. which include electronic and print media. These are usually smuggled from Peshawar through Afghanistan or Dubai . These are called ITBs (International Transit Brands). As a result. these brands are manufactured without any fear. As a result. These brands usually survive on BTL activities. The government has made legislation regarding this issue. Secondly. their factories are located in the northern areas so tax evasion becomes very easy. has been copied in three different qualities with three different prices for each. nothing has been doneso far. This is major competitor of Pakistan Tobacco. These are also 100% tax evaded. which mainly consist of posters Counterfeit brands Counterfeit brands emerge as a threat for PTC. and later become competition as well. In Pakistan. Their ATL activities.Lakson tobacco company Lakson Tobacco is competing Pakistan Tobacco Company. 10) for example Gold Street . however.2 Diplomat Red & White Mardan wallas Tobacco Company These brands are manufactured in Mardan and thus are called the “Mardanwallas. and are not concerned about acquiring a strong position in the market. the concept of copyright laws and its implications is almost non-existent.”These are normally low category cigarettes (under Rs.
brand marketing and trade marketing the marketing research department carries out its surveys and other such activities to find out the demand for each brand. John Players Gold Leaf. Advertising through different media‟s and sponsorships of event is also the job of brand marketing.70% 44.20% 2. PTC has also been a harbinger in establishing scientific methods of marketing research to focus on the changing consumer requirements. Capstan. More recently. Wills.000 retailers and over 7000 wholesalers were surveyed. and to discover the potential cigarette market. PTC is also a pioneer in introducing filter cigarettes in Pakistan as early as 1955. wholesalers. and the customers. retailers. and Embassy which is the largest selling brand in the market. The trade marketing staff works direct in the field and interacts with the distributors.8% MARKETING EFFORTS Marketing at PTC is divided into three further categories: marketing research. a gigantic task never undertaken by any business outfit in Pakistan. keeping in view the shift towards light.20% 1. Total of about 270.PTC has always been looked upon as one of the most dynamic organizations with its exuberance to quickly adapt to the changing needs of the market. The brand-marketing department comprise of brand managers who have the responsibility for success and health of their individual brands. services a very large retail and wholesale network across thecountry. gold leaf lights has been . through 343 distributors.PTC has been consistently meeting consumer expectations for the past ten years with the popular international brand names like Benson and Hedges. the company recently conducted a detailed urban and rural retailer census. region wise requirements/demands and also helped in streamlining PTC‟ scurrent distribution network thereby reducing costs. PTC. The census facilitated in determining the volume of business. Each brand manager designs and executes promotions to increase the sale of his brand.Market shares: Market Share of PTC and its Competitors Pakistan Tobacco Lackson Tobacco Mardanwalls Counterfeit/other 45. As part of this tradition.
the program focuses on business building as a whole rather than a propaganda forum for selling cigarettes. These meetings are held at high quality venues and a gift from PTC is given to each retailer as token of appreciation for their attendance. which will enhance retailer profitability and their relationship with the company in order to regain market leadership in the future. the key goal is not to deceive a trusted consumer for short-term goals. This is a unique concept in the market as PTC is the only comp. It enables PTC to develop and roll out best-practiced retailer methods. Overall. PTC is constantly endeavoring to introduce novel and innovative measures to further the marketing graph and offset the extraneous adverse affects. and tastes of PTC‟s consumers. 000 consumer entries. thereby setting a singular precedent of providing quality entertainment to the nation.introduced in the market representing the house of gold leaf as a truly international offer keeping with the times and remaining in tune with the changing needs. trends. and gaining feedback. which no doubt helps to strengthen the relationship and be responsive to their requirements better than any other FMCG company in the market place. PTC holds numerous trade meetings with its distributors and retailers. to which PTC received in excess of 1500. PTC cosponsored the launch of the epic movie Titanic in Pakistan. which is a set of structured presentations covering subjects such as business ethics. The intention is to transform PTC‟s field staff role into business advisor rather than a mere salesman. In short. It started a retail excellence program.any in Pakistan to embark on such a program for retailers working in line with the company‟s vision to be “first choice for everyone”. PTC stresses the importance of expanding customer base through good service and the removal of counterfeit cigarettes from the market. sharing company information and plans.PTC is one of a very few companies in Pakistan which is paying a great deal of attention to the retail marketing. The focus is how to provide a “world-class” service to consumers. And this was within three months after the “Explore the World” promotion campaign for Gold Leaf was ran. customer focus and how to satisfy customer needs profitably. In keeping up with its tradition of being in the cutting edge of marketing innovation. .
DITRIBUTION CHANNEL FACTORY WHOLESELLER DISTRIBUTOR RETAILER CONSUMER .
in a 'soft cup' packaging. the brand took off when it was repositioned in the value for money segment and later a 'hinge lid' variant was introduced in 2000. Wills King WILLS takes its name from the heritage of one of the original Imperial Tobacco Company families: the Wills Brothers of London. and consistently outselling it throughout. Gold Flake Gold Flake.D. Embassy The third leading volume brand in Pakistan is most popular in the Punjab where it enjoys a leading position due to its equity and loyalty. at this point an aggressive promotion in the market that would ensure the maximum exposure of competition smokers to the new pack. The brand registered a growth of 3%over 2000. There are three new variants were added into the family.D. Gold Flake 10HL and Gold Flake 10SC. The brand was created under the auspices of W. overtaking sales volume of the major competitive brand in the early part of the year. Wills is also a well known brand in Pakistan. WILLS at Bristol and London. & H. Gold Flake 14HL. originating in Britain in the 19th century. Capstan has grown by leaps and bounds to become the fastest growing brand of Pakistan Tobacco Company (PTC) in the year 2001. in order to offer the consumers a wider choice. recording a staggering growth rate of 104%. soon after the new pack was launched in the market and Gold Flake smokers accept the new design of the pack.O. & H. like many of our brands. Embassy continued its growth in the year 2001fortifying its position in the market. WILLS where it was a premium brand around the end of the 19th century. A highly successful pack design change in 2004. In the 3rd quarter of 2001 the brand family was extended with the introduction of . Major focus during the year remained on the introduction of more consumer relevant packaging variants. Gold Flake is PTC‟s largest brand in volume terms and is also a significant contributor towards the value share. Launched in 1982.O. also boasts its origins at W.PRODUCTS Capstan Capstan has a rich heritage.
SALES PROMOTION By giving the incentives to the distributors. Contests and lotteries PTC uses different schemes.Embassy filter 16ss pack followed by Embassy kings 14HL variant. the family now offers more choice to itsconsumer at affordable price. PROMOTION The different types of marketing activities are: Point of Purchase Display By placing products trail packs on the different shops to promote the sales. Posters and Leaflets Display posters and fliers in fronts of shops. providing gifts in the packs and by giving winning prizes by means of lotteries to promote sale and to beat competitor. . whole sellers and retailers like to get the product on credit and sell to the consumer and enhance their and the Company sales. With the launch of these variants. Rebates They usually provide the rebates to the retailers and whole sellers who want to establish their business on their own or who usually contact with them directly.
phone no and will also write the competitors brand which the consumers use and will also get the consumers feed back after testing their own brand. complete addresses. tell them about their company. Posters Stickers Bunting . Temporary Merchandizing Activity: The following tools include in temporary merchandizing activity. if the shopkeeper did not know about the company and their brand. The SP will bring awareness. And also give market intelligence report to TM about the competitors which they use in the market. brand and advantages of the brand. means to ensure all time availability of the stocks in the respective beats by doing the exercise of toping up. Pack Display/Pack facing: Small 4 or 3 row displays at hotspots in which prescribed pangram is implemented.SP’s OBJECTIVES Toping up Talking with shopkeeper. Consumer Contact It is the SP activity that he will contact the consumers and will write their names. Market Intelligence The SP is also responsible to note the competition Activity of their competitors and look at their promotional tools they use. Brand Availability To conform from the shopkeeper that all the brands are available or not.
PTC‟s efforts . Best practices of Good Corporate Conduct Governance being adhered to include producing an Annual Report that provides quality information to all stakeholders Environment. based on issues identified in the stakeholders mapping classification exercise. Both its production facilities were rectified with ISO 14001 earning the “Evergreen” status. PTC‟s commitment to EH&S was further strengthened during 2006 as PTC achieved significant improvements on the EH&S road map. eye care via Layton Rehmutullah Benevolent Trust. Learning Resource Centre. Second cycle of the social reporting dialogue. non formal education through the NGO Adult basic education society. inaugurated in September 2006. PTC has consistently sustained its accreditation in last seven surveillance audits with zero major and minor points. Rehabilitation of earth quack Affectees in Battagram. In 2005 PTC became the first company in Pakistan to publish a duly audited social report.In November 2006 PTC undertook a project to combat the spread of viral hepatitis in northern Areas. mobile free dispensaries. Health & Safety (EH&S) Being fully alive to its role as a responsible corporate citizen PTC has implemented a well structured EH&S programme in addition to embedding internationally recognized best practices.Permanent Merchandizing Activity Fascia Tube Shade Counter CORPORATE SOCIAL RESPONSIBILITY PTC has been at the forefront of CSR subsequent to its initiatives of afforestation. PTC is committed to ensure that it nurture an environment where its employees and surrounding communities are safe from any hazards that may affect their health and minimize the impact of its operation on biodiversity. was competed in November 2006 and the social report is planned for publication in early 2008. supporting citizen‟s foundation to prove educational facilities for the children and installation of water filtration units.
Learning Resource Centre and Portable Water. it strongly believes in building effective and constructive partnership with communities by helping address various EH&S issues. Over the years the company has invested substantial resources in terms of finances and manpower in various initiatives like Mobile Free Dispensaries.has further been sustained with National Forum for Environment & Health awarding PTC the Annual Environment Excellence award on “Health. Health & Safety (EH&S) Policy: It is PTC‟s Policy to: Provide and maintain a safe and healthy working environment including use of cleaner technologies and safe systems of work for all its employees and non-company personnel on the company premises.Through out the company‟s history. it has maintained a strong stance on corporate and social responsibility. Comply with all applicable National laws and regulations and BAT policy pertaining to Environment Health and Safety. Establish procedures to regularly assess and reviewing the EH&S impact of its present and future and seek continuous improvement to its EH&S performance. Safety and Environment” for second consecutive year in 2006. . Environment. Pay due regard to all impact of its activities on the physical environment.
Focus on health and safety on the company premises. Lowering the downsizing will create a good image in the eye of regulatory authorities and government. Very minimum marketing as compare to its competitors. Market leadership in the world. Training and development of its employees. .SWOT ANALYSIS STRENGTHS Continuous learning and improvement. Being beneficial to the community (Corporate Social Responsibility) Diversified workforce and environment. Technologically advanced machinery and equipments. WEAKNESSES Salaries difference between workers who work more and the one who put minimum efforts. Technological advancement would decrease the workforce and unemployment will increase. Workers are always under threat because of downsizing. Sustainable growth. Environmental standards achievement. PTC has the potential to further improve the cost reduction method. Improper distribution of work OPPORTUNITIES Greater opportunity of promoting lower brands in rural region. Create a better work environment in GLT department because of more hazards in this department. Good salaries packages.
The political. Limitation of their product Decline in tobacco growth . Internationally some countries are continuously promoting anti-smoking slogans like the ban of smoking in Bhutan in 2002. Focus on its key brands i. Their well-established brands are highly copied by some local manufacturer. economic situation is not stable in Pakistan.e. Export of premium brands THREATS Some of its competitors are also producing high quality brands like Marlboro by Lackson. high growth like Gold Flack this year‟s growth was around 27%. Better marketing campaigns by rivals.
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