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 International Islamic University Islamabad

Course: Marketing Management

Class: MBA-17(A)

Instructor: Sir Bashir Ghuman

Group Members: Sara Shafiq

Tehmina Ameer
 Zubaria Mumtaz
Misbah Mumtaz

PAKISTAN TOBACCO COMPANY (PTC)

BUSINESS:
Pakistan Tobacco Company is the reputed tobacco company of Pakistan. It is a
member of British American Tobacco Company which is the world’s most International
tobacco group with brands sold in 180 markets around the world aimed to sell to informed
adults.
Origin:
PTC is the first multinational Company to start its operations in Pakistan since
1947. Its foundations were established immediately after partition after taking over the
business of Imperial Tobacco Company of India which had been operational in the
subcontinent since 1905. It started its workings out of a warehouse near Karachi Port.
From being the single factory operation, it has now involved in every aspect of cigarette
production i.e. from crop to the consumer. Now PTC run two state of the art factories and
employ more than 1700 people who work at various levels of the business which is an
indicator of providing livelihood to more than a million.
Features:
• It has played a vital role in promoting modern agricultural and industrial practices
and also helped a great deal in the development and progress of the industrial and
agricultural sector in the country.
• It also takes pride in being the leading Tobacco Company with the highest market
share and the highest tax payer with giving more than 30 million to Government in
excise duties and taxes in its sector.
• It has been the remarkable supporter of social responsibility by playing its role in
various social responsibility issues i.e. educating farmers in using latest technology
 and techniques in agriculture, forestation and health care in designated areas are a
few examples.
• Its brand encompasses its values and provides a variety of tastes to consumers
according to their need and preferences while ensuring the high quality standards.
• PTC is involved constructively with others and engaged with stakeholders by
effectively listening to their voice which is a blend of behavior of a responsive and
responsible tobacco company.
• It provides a good platform to the employees by polishing their skills through
continuous training and development programs and good exposure.
Products:
They manufacture Tobacco cigarettes. Here the word brand is more suitable to explain its
different offerings. Following is the list of brand being produced under the banner of
PTC.

Dunhill

Dunhill, a premium global brand, celebrated its centenary in 2007. 2008

was an exceptional year for Dunhill in Pakistan as the brand witnessed
exponential growth; fuelled by its re-launch in July. Going forward,
Dunhill is poised to strengthen its foothold in the premium segment.

Benson & Hedges

In 1873, Richard Benson & William Hedges started a partnership in

London. Benson & Hedges was launched in Pakistan in March 2003 and has
since been able to build strong brand loyalty among its consumers showing
excellent year on year growth.

John Player Gold Leaf

The story of John Player Gold Leaf has to start from the story of its
founder, John Player. An enterprising businessman, John Player started a
small tobacco selling business in 1877 and turned it into a thriving
cigarette company, John Player and Sons.

John Player Gold Leaf has become an institution in itself, becoming one of
the most recognizable cigarette brands in the country. John Player Gold Leaf has recently
been declared the largest Urban Brand in Pakistan, beating out products across the Fast
Moving Consumer Goods (F.M.C.G.) spectrum.

Capstan by Pall Mall

Capstan has a rich heritage, originating in Britain in the 19th century. The
brand was created under the auspices of W.D. & H.O. WILLS at Bristol and
London.

Gold Flake

Gold Flake, like many of PTC’s brands, also boasts its origins at W.D. & H.O.
WILLS where it was a premium brand around the end of the 19th century.
Launched in 1982, in 'soft cup' packaging, the brand took off when it was
repositioned in the Value for Money (VFM) segment and later a 'hinge lid'
variant was introduced in 2000.

Since 2004, Gold Flake has doubled its volume base, closing the year 2008 at close to 26
billion sticks, making it the largest volume brand in Pakistan, and the second largest brand
in British American Tobacco's Asia Pacific region. The key to Gold Flake’s success has been
its novel engagement schemes which have fuelled growth over the years. Through
consumer relevant initiatives, Gold Flake has established itself as a fresh and modern
offering in the VFM segment and is all set to consolidate its position as the major volume
driver for Pakistan Tobacco Company.

Embassy

Embassy, is a leading volume brand in Pakistan, and is most popular in Punjab

where it enjoys a leading position. Having built its heritage over a number
of years, Embassy thrives on its brand loyalty and locally tailored taste
characteristics.

Core competencies:

Core competencies are cited by PTC in collaboration of business principles and core belief
which are termed as the core competencies of the organization. So before moving towards
citing core competencies there is need to explain business principles and core beliefs.
 • Business principles of PTC:

Following quote is cited from PTC which the firm thinks its business principles are
meant to be:

“Pakistan Tobacco Company is a commercial enterprise and our primary role is to

build long term shareholder value by meeting consumers’ preferences for high-
quality tobacco products. However, we believe that by absorbing and balancing a
wider range of expectations, we are best placed to continue building a sustainable
tobacco business.”

PTC’s three business principles are: Mutual Benefit, Responsible Product Stewardship and
Good Corporate Conduct, each of which is supported by a number of Core Beliefs, which
explain what they think the principle means in more detail. Together, these form the basis
on which they run their business in terms of responsibility. Both the Business principles
and the core beliefs and the way they have been developed are consistent with four
Guiding Principles, which collectively express the culture of the Group and Pakistan
Tobacco Company as part of it.

The four Guiding Principles are:

• Strength from Diversity

• Open Minded
• Freedom through Responsibility; and
• Enterprising Spirit

 Now the Business Principles are explained in detail.

Mutual Benefit
The Mutual Benefit Principle is the basis of building relationships with the stakeholders.
The organization primarily builds long term shareholder value and the best way to do this
is to seek to understand and take account of the needs of all stakeholders.
The core beliefs regarding Mutual Benefit Principle cited by the firm are:
• We believe in creating long term shareholder value.
• We believe in engaging constructively with our stakeholders.
• We believe in creating inspiring working environments for our people.
• We believe in adding value to the communities in which we operate.
• We believe that suppliers and other business partners should have the opportunity
to benefit from their relationship with us.
Responsible Product Stewardship
The principle of Responsible Product Stewardship is the basis on which the firm meet
consumer demand for a legal product which causes serious diseases so that their products
and brands should be developed, manufactured and marketed in a responsible manner. The
firm also aspires to produce tobacco products with critical mass appeal that will, overtime,
be recognized by scientific and regulatory authorities as posing substantially reduced risks
to health.
The core beliefs regarding Responsible Product Stewardship as cited by the firm are:

• We believe in the provision of accurate, clear health messages about the risks of
tobacco consumption.
• We believe the health impact of tobacco consumption should be reduced whilst
respecting the right of informed adults to choose the products they prefer.
• We believe that relevant and meaningful information about our products should
continue to be available.
• We believe that underage people should not consume tobacco products.
• We believe that our brands and products should be marketed responsibly and
directed at adult consumers.
• We believe in the appropriate taxation of tobacco products and the elimination of
illicit trade.
• We believe in regulation that balances the interests of all sections of society,
including tobacco consumers and the tobacco industry.
• We believe that public smoking should be approached in a way that balances the
interests of smokers and non-smokers.
Good Corporate Conduct
The principle of Good Corporate Conduct is the basis on which firm’s business is managed.
Business success brings with it an obligation for high standards of behavior and integrity
in everything organization do and wherever they operate. These standards should not be
compromised for the sake of results.
The core beliefs regarding Good Corporate Conduct principle are:

• We believe our businesses should uphold high standards of behavior and integrity.
• We believe that high standards of corporate social responsibility should be
promoted within the tobacco industry.
• We believe that universally recognized fundamental human rights should be
respected.
• We believe the tobacco industry should have a voice in the formation of
government policies affecting it.
• We believe in achieving world class standards of environmental performance.
In the light of above cited Business principles and core beliefs PTC’s core competencies
are as follows:

• Striking feature of “Social Responsibility” is one of the core competencies.

• Goodwill based on the remarkable history of good corporate conduct.
• Quality ensuring techniques used by the firm.
• Ensure profit generator though the work of highly skilled workforce and the
highest tax payer even in the periods of recession.
• Easily availability of brands in the market.
• Sustainable growth.

Organization Chart:

b). Non-Executive
a). Executive
Board of Directors

Chief Executive

Deputy Chairman

Head Head Head Head Head Head

Leaf Marketing Finance Human Production & Cop. & Legal
Resource Supply Chain Affairs

Head Head Purchases Distribution

Brand Trade Manager Manager

Brand Regional Manager

Manager Manager Human
Chief Treasury Financial Internal Chief
Resource
Financial Manager Accountant Auditor Financial
Officer Manager
Competitors:

Main competitors of PTC are:

• Lakson Tobacco Company

• Mardanwalls
• Khyber Tobacco Company

Other manufactures and exporters in this sector include:

• Souvenir Tobacco Company

• Saleem Cigarette Industry
• Universal Tobacco Company
• Imperial Cigarette Industry
• International Cigarette Industry
• Walton Tobacco Company
• Sarhad Cigarette Industry

Contacts:

The head office of PTC is located in Islamabad and its given contact information is:
Pakistan Tobacco Company Limited
Silver Square, Plot No. 15,
F-11 Markaz. Islamabad, Pakistan.

Tel: +92 (51) 2083200, +92-(51)2083201

Fax: +92 (51) 2224216

The address of regional sales office is:

North Punjab & NWFP

House# 57-A/6, Satellite Town Rawalpindi
Tel: +92(51)4582390-91
Fax: +92(51)4582392

Web address of PTC is:

www.ptc.com.pk