Briti sh American

Tobacco Company
Bangladesh Ltd. (BATB)
Topic: Managing Strategies and Strategic Planning Analysis.
Presented By,
MD. Mahabub Alam Rifath
ID: 12007034
 Index
1. Introduction Part 2. Analysis Part
1.1- About British American Tobacco Bangladesh. 2.1- SWOT Analysis.

1.2- History of British American Tobacco

Bangladesh. 2.2- Porter’s Generic Strategy.

1.3- Core Business activities of British American

2.3- Miles and Snow Typology.
Tobacco Bangladesh.
1.4- Marketing Segment of British American 2.4- Diversification Strategies.
Tobacco Bangladesh.
1.5- Market Share of British American Tobacco
2.5- BCG Matrix.
Bangladesh.
2.6- GE Matrix.

2.7- Conclusion.
 About British American Tobacco
Bangladesh. (BATB)
BAT Bangladesh is a part of British American Tobacco plc, one of the
world’s most international businesses, with brands sold in more
than 200 markets around the world. BATB produces high quality
tobacco products for the diverse preferences of consumers,
spanning the business 'from crop to consumer' and committed to
embedding the principles of corporate social responsibility Group
wide.
• 2nd biggest multinational company in BD. (In industrial area, paid-up
capital and employee satisfaction)
• Top Large Tax payer of BD.
• Market leader of Tobacco Industries.
• Approximately 51,200 works directly or indirectly among them
34,000 are registered farmers.
 History of British American
Tobacco Bangladesh.
BAT Bangladesh is a part of British American Tobacco plc, one
of the world’s most international businesses, with brands sold
in more than 200 markets around the world. BATB produces
high quality tobacco products for the diverse preferences of
consumers, spanning the business 'from crop to consumer'
and we are committed to embedding the principles of
corporate social responsibility Group wide.
Core Business Activities of BATB.
• Tobacco Leaf Growing.
• Leaf processing.
• Cigarette Manufacturing.
• Distribution.
 Market Segmentation of BATB.

Segments Brand
Premium Benson & Hedges.

High John Player Gold Leaf, John Player Series and Capstan.

Medium Star, Royals.

Low Derby, Pilot and Hollywood

Market Share of BATB.
Low
11%

Medium Premium
28% 52%

High
9%
 SWOT Analysis
S W

Strengths Weaknesses

Opportunities Threats

O T
 Strengths
Strengths

 Strength is a resource or
capacity the organization can
use effectively to achieve its
objectives.
 Leader of Cigarette Market, Holds
66.6% of Total Tobacco Market.
 Top Employee Satisfied Firm.
 Largest Tax Payer of Bangladesh.
 Well Known for Their Benchmark
CSR Initiatives.
 Weaknesses
Weaknesses

 Weakness is a limitation, fault,

or defect in the organization
that will keep it from achieving
its objectives.
 Needs too much Managing
Proficiency.
 Breaking Constitutional Laws.
 Opportunities
Opportunities

 Opportunity is any favorable

situation in the organization's
environment.
 R&D (Harm Deduction).
 E-cigarettes.
 Online Market.
 Limited Competitors.
 Threats
Threats

 Threat is any unfavorable

situation in the organization's
environment that is potentially
damaging to its strategy.
 Governmental Laws.
 Porter’s Generic Strategy

Broa
d
Cost
Differentiation
Leadership

Narr
Cost Differentiation
ow
Focus Focus

Lower Cost Differentiation

 Cost Leadership

Cost Leadership
Broa   Cost leadership means
d
Cost
Differentiation keeping the prize of the
Leadership
product as low as possible.

 Used to ensure to have a larger

market share.
Narr
Cost Differentiation
ow
Focus Focus

Lower Cost Differentiation

 Differentiation
Differentiation
Broa   Generally differentiation
d
Cost
Differentiation means the difference
Leadership
between the existing
market product and the
operating market product.
In which way the firm is
Narr different from others to
Cost Differentiation
ow increase the brand value.
Focus Focus
 Offering unique features.

Lower Cost Differentiation

 Focus Market

Focus strategy means concentrating on

Narrow Scope particular market (also called a
Market
segmentation strategy or niche
Cost Focus
strategy), understanding the dynamics
Market
Focus

of that market and the unique needs of

Narrow customers within it. Most important
Market part of focus market are
Scope Differentiation Focus  Loyalty
 Quality
 Prize
 Differentiation Focus

Differentiation Focus
Broa  Targeting a focused market
d
Cost
Differentiation (niche market, ‘little
Leadership
competition’) and the
product or service has
unique features.
 Strong brand loyalty among
Narr consumers.
Cost Differentiation
ow
Focus Focus
 BATB Uses This
Lower Cost Differentiation Strategy.
 Cost Focus

Cost Focus
Broa  Targeting a focused market
d
Cost
Differentiation (niche market, ‘little
Leadership
competition’) and offering
the lowest possible price.
 Understanding the market
dynamics and stay low.
Narr
Cost Differentiation
ow
Focus Focus

Lower Cost Differentiation

 Miles and Snow Typology

Prospector Analyzer

Miles
&
Snow

Defender Reactor
 Prospector
Prospector

  Prospectors are organizations that
almost continually search for
market opportunities, and they
regularly experiment with potential
responses to emerging
environmental trends.
 Market Creator.

 Lack of Efficiency.
 Defender
Defender
 Defenders are organizations which
have narrow product-market
domains and this type of
organization is highly expert in their
organization’s limited area of
operation but do not tend to search
outside of their domains for new
opportunities.
 Narrow focus
 Primary objective is efficiency.
 Seldom needs adjustments to the
technology, or operation methods.
 Analyzer
Analyzer
 Analyzers are organizations that
operate in two types of product-
market domains, one relatively
stable, the other changing.
 Operates in a formalized structures and
processes.
 Watch competitors closely for new ideas
and adopt the most promising ideas.

 BATB Uses This

Strategy.
 Reactor
Reactor
 Reactors are organizations in which
top managers frequently perceive
change and uncertainty occurring in
their organizational environments
but are unable to respond
effectively.
 Lack any consistent strategy.
 Adjust strategy and structure by the force
of environmental pressures.
 Diversification Strategies
Single Diversification
Strategy that involves a company producing only
Product one product or one product version with very few
options.

Diversification a
corporate level
strategy that is used
to get competitive Strategy that involves when a company adds to
advantages over
Related or expands its existing line of production or
other organization by Diversification
markets.
controlling inner
management by the
top level managers
and decision making.
Unrelated Diversification happens the business adds
Unrelated new or unrelated product lines to a new market.
Diversification
 BATB Uses This Strategy.
 BCG Matrix
(Boston Consulting Group Analysis)
RELATIVE MARKET SHARE
High Low
STARS QUESTION MARKS Firms that are fast growing and have high
market share are in the category of stars.
MARKET GROWTH RATE
High

Companies that have high growth

prospects but a low market share are
question marks.

Companies that have a high market share but

low growth prospects are cash cows.
Low

Companies that have low market share in

a mature and slow-growing industry are
CASH COWS DOGS dogs.
 BATBs Product Evaluation

Stars No Products.

Question
Marks

Cash
Cows
BATB Is A
Cash Cow.
Dogs
 GE Matrix
(General Electric’s Strategy)

High Grow Grow Hold

Industry Attractiveness

Medium Grow Hold Harvest

Low Hold Harvest Harvest

Good Medium Poor

Competitive Position
 Measurements of GE Matrix

Grow means the value of the market is

increasing, so it’s high time to invest in that
Grow sector.

Hold means it’s an ambiguous situation and

should only be invested in if there is money
Hold left over after investing in the profitable
sectors.

Harvest means it’s an unattracted

Harvest industry with poor performance this should
only be invested in if they can make more
money than is put into them. Otherwise
they should be liquidated.
 Industry Attractiveness
BATB
Industry Attractiveness
1. Market share ― HIGH✓
High
Hold 2. Technological know-how ―HIGH✓
Industry Attractiveness

Grow Grow
3. Product quality ― HIGH ✓
4. Service network ― HIGH ✓
Medium Grow Hold Harvest 5. Price competitiveness ― HIGH ✓
6. Operating costs ― MEDIUM✓
Low Hold Harvest Harvest
On average BATB is HIGH in Industry
Good Medium Poor attractiveness that indicates GROW.

Competitive Position
 Competitive Position

Competitive Position
1. Market growth ― POOR✓
High Market size ― GOOD ✓
Grow Hold
Industry Attractiveness

Grow 2.
3. Capital requirements ― GOOD ✓
4. Competitive intensity ― MEDIUM
Medium
Grow Hold Harvest ✓

Low Hold Harvest Harvest

Good Medium Poor On average BATB is GOOD in
Competitive position that indicates
Competitive Position GROW.
BATB
 Conclusion of GE Matrix
(On behalf of BATB)

BATB
As in Competitive
Position BATB comes on
High Grow Hold
Industry Attractiveness

Grow GROW & in Industry

Attractiveness BATB also
comes in GROW , so they
Medium Grow Hold Harvest both intersect in both
Good & HIGHs GROW. So
the parent company
Low Hold Harvest Harvest British American Tobacco
Good Medium Poor
should invest in British
American Tobacco
Competitive Position Bangladesh.
 Conclusion
Bangladesh is a country 161.4 million people. According to the report of
WHO estimated 21.9 million of people in Bangladesh smokes among them
21.1 million are males and only 0.7 million are females. According to GATS
Bangladesh, 2009, 37.00% people of urban and 25.2% people of rural
areas consume cigarettes. In 2018, a total number of 91.6 billion cigarettes
were sold in Bangladesh. Tobacco industries in Bangladesh has a huge
change in the market in every aspect. It has a rising markets less
competitor with huge demand. Continuing the current status and
marketing process British American Tobacco Bangladesh will continue its
process to shine.
THANK YOU.