Professional Documents
Culture Documents
INTRODUCTION
• Political
• Economic
• Government
• legal
“Success and Responsibility Go
Together”
CONTRIBUTION IN THE LOCAL
EMPLOYMENT SECTOR
• According to a study of the International Labor Organization (ILO), the
unemployment growth rate of Bangladesh in 2016 was 3.3%
• British American Tobacco Bangladesh is playing an important role by
providing employment opportunity. Directly and indirectly many people
work in British American Tobacco Bangladesh
• In Bangladesh directly employs more than 1,200 people and indirectly
employs more than 50,000 people (mostly farmers).
MARKET SEGMENTATION
MARKET SEGMENTATION
Segment Brands
Premium Benson & Hedges Lights, Benson & Hedges Full Flavors
High John Player Gold Leaf, Pall Mall Full Flavors, Castle, Pall Mall Lights, Pall Mall Menthol,
Capstan Filter
Low Pilot
Medium
28% Premium
52%
High
9%
COMPETITORS
• They consider their product segmentation for following their core competitors in
Bangladesh. The competitive brands are given below according to the same segmentation.
• • Premium: Marlboro
• • High: Castle
• British American Tobacco Bangladesh’s target market is only Smokers who are more
than eighteen (18) year old and above
MARKET POSITIONING
• All marketing is based on the fundamental ’5 Ps’: Product, price, packaging, promotion
and place. For BATB, promotion is now much more limited and very carefully
controlled
• British American Tobacco Bangladesh does not have any permission to advertise their
product publicly. But they try to promote their product by giving there retailer leaflet
• They got an extra force of personal sellers who tries to promote BATB’s brands by
pleasing the consumers.
BAT B PRICING STRATEGIES COMPARE
WITH BAT GLOBAL PRICING
• can vary from market to market or product to product
• Bangladesh is an over populated country. There are 7.12 crore male in our country.
Most of the male doing smoke.
• smoking is harmful to our health .So Govt. impose high amount of tax on tobacco
product for reducing use of product
• The price of B&H per packet is 210tk (20sticks). so its price is very high for
Bangladeshi people according to their per capita income
• On the other hand the price of B&H size cigarette (20) in U.K is about 7.35 Pound
which in Bangladeshi currency is about 770tk where in Bangladesh 210tk(20).
BAT B PRICING STRATEGIES COMPARE
WITH BAT GLOBAL PRICING
600
500
400
300
Series 1
200
100
0
Netherlands Honduras Mecadonia Angola Nigeria Azerbijan
The cigarette price comparison chart shows that price for B&H (per pack) in
Bangladesh is 268.42% lower than the same cigarette price in Netherlands.
So, here we can see that the price varies globally.
PORTER’S DIAMOND MODEL
PORTER’S DIAMOND MODEL
• Factor conditions: Porters argue that “key” factor of production are created not inherited. Main
factors of production are skilled labor, capital and infrastructure
• Demand condition: In our country 7.12 crore are male among total population. Most of the male
above 80% male doing smoke in Bangladesh. So, BATB takes a right decision to set up a
business in Bangladesh because here they can find easily a big amount of their product
demand.
• Supporting industries: supporting firms should be located in same area. BATB is located in
Mohakhali DOHS but their suppliers far away from their firm.
• Firm strategy: BATB entered through FDI in Bangladesh. Their strategy enable their business
to deliver growth today .They is continuing to invest to more grow up. Since, tobacco is the core
of their business and it will continue to provide with opportunities for growth.
SWOT ANALYSIS
Strength:
• BATB is well known brand in the Bangladesh. So, the brand name is a strength for BATB
• Because of high regulations and high entry barriers new entrants are discouraged and it’s good for current and established
market player.
• No need to promote their product towards the customer
• Strong Financial position
• Strong market position
• Technology and product innovation
Weakness:
• Dealing with a product which is sensitive in many issues.
• Can’t promote their product.
• A high volume but low value industry
• Centralize decision making. Every decision made from Hong Kong
SWOT ANALYSIS
Opportunity:
• In Bangladesh, tobacco market is pretty strong.
• Migration rate is good enough to sustain the cigarette industry.
• Among the sale of tobacco products, 42% is cigarette.
Threat:
• Increasing amount of awareness among the consumers about the health risk caused by
smoking.
• Increasing number of regulations and laws imposed by government about selling
cigarettes.
• E- Cigarette
RECOMMENDATION
• BATB must further focus on price, quality and performance of their product lines and
brands to stay competitive in the industry.
• Although people are becoming more aware of the health, so BATB should research for
better verity of tobacco leaves.
• Identify opportunities and build on strength.
• It can think of focusing on unrelated business diversification.
• They should maintain strong relationship with its suppliers and customers.
CONCLUSION
• BATB has established value addition in every stage of the supply chain. BATB is a
company with world class people, products, system and process. BATB is a leading
company in the cigarette industry in Bangladesh with a market share of more than 50%
and employee more than 1,200 people directly and they provide indirect employment
to more than 50,000 people as farmers, Distributors and local suppliers.
• The way BATB operating their business world enables them to be the market leader for
a really long period of time.
THANK
YOU