The aim of my struggle is to know about the market and its

difficulties. I want to know about the activities of Pakistan

Tobacco Company. How a multinational company works.

PTC target market is to capture whole country market.

PTC offers quality services to its customers. PTC tried to
formulate its strategies in such a way that the extraction of
Customer and out standing tobacco can find a suitable
platform.

In this internship I was attached to different people like TMO,

Sp and salesmen etc. So I learn maximum knowledge about
market. With the help of these people I practically learn
different strategies that PTC adopts in the market. 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 PTC is very productive company.

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PTC is a part of the trans-national British American Tobacco
Group, which employs some 90,000 people worldwide at its
operations in 180 countries. British American Tobacco has a
position of market leader in more than 50 countries selling
over 300 brands there. In 2004, the Group sold and produced a
nearly 16% share of the global market of cigarettes.

PTC is the largest excise tax generator in the private sector in

the country. In 2004 alone, PTC paid the government close to
Rs.16 Billion in excise and sales taxes. This amounts to over
Rs. 50 million per working day. Over one million people are
economically dependent on the industry in Pakistan. Being a
subsidiary of BAT Pakistan Tobacco Company’s 50% shares
are of parent company, remaining 50% share are owned by the
general public and financial institutions. Pakistan Tobacco
Company is listed in the all three stock exchanges of the
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country that is Karachi, Lahore and Islamabad. PTC is
committed to providing consumers with pleasure through
excellent products, and to

demonstrating that we are meeting our commercial goals in

ways that are consistent with reasonable societal expectations
of a responsible tobacco group in the 21st century.

Ever since it arrived in Europe since the late 15th century,

tobacco has divided opinion, sparked controversy, and
generated substantial revenue through tax. Not long after it
reached Europe, it was being described in terms ranging from
"vile custom of manifold abuses" and "feast for the fiend" to
"the divine herb" and "cornucopia of all earthly pleasure".
Tobacco has periodically been subject to royal disapprovals,
the whims of fashionable use, medicinal studies, smuggling,
trade disputes, and bans.

In this section we offer a brief snapshot of the long and

fascinating history of this enduring product, smoked by
roughly one billion adult consumers around the world today.

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Pakistan Tobacco Company Limited was incorporated in 1947
immediately after partition, when it took over the business of
the Imperial Tobacco Company of India, which had been
operational in the subcontinent since 1905. Tobacco has been
smoked for at least the last three thousand years. Christopher
Columbus found it when he landed in the Americas in 1492.

1st Choice
for everyone
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 To transform PTC to perform
with he speed, Flexibility and

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 Enterprising spirit of an
Innovative consumer focused
“Dare to be Different”

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Our Objective is to grow our brands and
the value of our business, to improve
productivity and to embed the
principles of Cooperate Social
Responsibility Group-wide PAUL
ADAMS, Chief Executive

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AQIL JAMIL 8
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  GOLD LEAF (JPGL)
 CAPSTAIN
 DUN HILL
 GOLD FLAKE
 WILL INTRNATIONAL
 BANSON AND HEDGES
(B&H)
 PALL MALL (P&M)
 EMBASSY

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 Number of Distribution
71
PTC Own Volume
591 min
LTC volume
537 min
Total Industry
1610 min
Total population
20.0 min

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 Geographic spread
1750 sq Km

Othrs
30% Own
37%

LTC
33%

The Headquarter of Pakistan Tobacco Company is in

Islamabad in Saudi Pak Tower. For distribution and
administration purpose it is divided into four regions.
 Sind, Balochistan region
 Southern Punjab region
 Central Punjab region
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  North Punjab region
For the Sind, Balochistan region the Karachi office
controls all the business. Multan office controls the working in
southern Punjab. Lahore office control Central Punjab, while
office located in Rawalpindi controls the business of Northern
Punjab. Karachi, Lahore, Multan and Rawalpindi offices are
called district sales offices. These district sales offices are
further divided into 13 zones; every district sales office
controls the operations of 3 to 4 zones.

Pakistan Tobacco Company

Lakson Tobacco Company

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 Premier Tobacco Company

Khyber Tobacco Company

Souvenier Tobacco Company

In Term of value and Volume

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 Of high quality Products

Prove to work in a controversial industry

One team one dream all for one

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PROCESSING DEPARTMENT

MATERIAL MANAGEMENT DEPARTMENT

This department knew as “MMD”. Flowing are the main sections of

“MMD. Prime function of dept. is providing quality material for
production.

Local Purchase (Purchase sundry & miscellaneous items, on Behalf

of
company)
Traffic (Provide transport for factory and clearing builties).
Reclaiming (Resale, auction of remaining items).
Godown (In time supply of finished good to “Zone” For market)

LEAF DEPARTMENT
The tobacco is received from leaf go downs from the
various places. One type of tobacco is imported and the other comes
locally. Lamina is received in the form of cases and the stem is received
in the bags. Both are used in manufacturing of cigarettes. From the Leaf
Reception Room, this tobacco is sent to the primary manufacturing
department.

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PRIMARY MANUFACTURING DEPARTMENT
This is known as “PMD”. The bale of tobacco is
converted into blend in this department. This department
creates differ types of blend with different ratios. The stem and
lamina of the tobacco are treated into blend in this department.
The required moisture is added into tobacco and flavors are
added into this. Flavor mixing is known as “casing process”.
The ready tobacco is known as “Cut Tobacco.” This is stored
in cut tobacco store. In addition, through “Automatically
90seconds are taken to fill a machine. According to Product
Steward Policy, “we shall design our products and processes in
conformance the principles of sustainable development for the
betterment to the environment and society.”

SECONDARY MANUFACTURING DEPARTMENT

 This department is further divided into two

departments.
 Cigarette Making Department.
 Cigarette Packing Department.

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CIGARETTE MAKING DEPARTMENT
In this department, the cut tobacco is filled in the
cigarettes. The filter rods come from the Filter Rods
Department and they are combined to prepare the cigarettes.
There are different types of cigarette making machines high
and low machines. Tow Loga Machines, which have a capacity
of manufacturing 850 cigarettes per minute and one machine,
which have a capacity of manufacturing 8000 cigarettes per
minute and two machines, which have 7500 capacities per
minute. Eight Mark-8 machines running in this department,
which have capacity of manufacturing 2000 cigarettes per
minute. Loga machine run 24 hours.

CIGARETTE PACKING DEPARTMENT

The cigarettes come in the ready form to be packed
here in his section. Deferent machines are used for the purpose.
The material management department provides the packing
material required in this department. The cigarettes are first
packed in packets, and then these packets are put into the outer,
which are further packed in the big cartons known as the

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CBCs. From the packing department, the cigarettes are
transferred to the shipping godowns from where they are
shipped out of the factory.

According to the speed, there are four types of packing

machines running in the Cigarette Packing Department. GDX2,
which have capacity of 380 packets per minute. Another
machine is a soft Cup his capacity 160 or 180 packet per
minutes.

HUMAN RESOURCE DEPARTMENT

This department is also known as “EMPLOYEE RELATION
DEPARTMENT”. Department deals with the employees of the
“FACTORY”. Flowing are the main functions.

 Maintains industrial relation between Labor

management and Employer.
 Binomial agreement relation between Labor
management and Employer.
 Maintain worker services record.

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  Worker Training & Promotion.
 Legal obligation on behalf of Labor and
management.
 Worker Welfare activity. Running Canteen & Fair
Price Shop.

QUALITY DEPARTMENT
Quality excellence is the foundation for every
management, and key for “GOAL” of CUSTOMERS
SATISFACTION.
 Consistently provide product and services that meet the
quality expectations of customer.
 Actively pursue ever-improving quality through
programs that enable each employee to do his or her job
right the first time.

INFORMATION TECHNOLOGY DEPARTMENT

This department is also known as Management
Services Department. It connects all offices and factories of the
company with one computer network function. Following are
the some functions of the IT department:

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  IT risk analysis
 Backup cycle
 IT system standing instruction
 System development methodology
 Request for system modifications
 Fixed assets movement

 Email access policy-MEEG (Managed External

Email Gateway).
 Internet browser access request/policy
 IT logs

EH&S DEPARTMENT

This department is known as “Environment Health and Safety

Department”. This department provides and maintains safe and
healthy working environment including use of cleaner
technologies and safe system of work for all its employees and
non-company personnel on the company premises. Pay due
regard to all impacts of its activities on the physical

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environment. Comply withal applicable national laws,
regulations, and BAT (British American Tobacco) policy
pertaining to environment health and safety. Establish
procedures for regularly assessing and reviewing the EH&S
impact of its present and future activities. Adopt a pro-active
role to continually identify cost-effective measures, which it
can take to safeguard the health and safety of its employees,
non-company personnel on company premises, the neighboring
communities and the physical environment.

SECURITY DEPARTMENT
To ensure that the company property, assets,
material & information are protected from loss, criminal
activity, fire damage and other forms form of waste. Thus
ensuring that men are working under congenial environment
without any fear, terrorism and sabotage activities are the
functions of the security department. There are seven
permanent employees and 44 are on contract basis. The
contract is with the Phoenix Company.

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ENGINEERING DEPARTMENT
All goods must be checked physically by
counting/weighing/ measuring. All receipts form outside
sources other than imported spare will be inspected ensuring
that their quality is according to the specification.
All goods received from outside sources must be
detailed on Goods Receiving Register immediately on the day
of receipt. This register forms the only record of goods within
the factory an interim period until the goods are inspected and
finally G.R. sheeted. G.R. Register will therefore, always be
stored overnight in the safe in shift Manager’s Office/Main
Engineering Office along with Engineering Stores keys.

In the event of goods being short, excess or damaged as

compared to delivery Challan/invoices, an endorsement will be
made in red against the items on the G.R. Register and the
suppliers will be advised accordingly.

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STORE RETURNS
New or useable machine spares received from Factory
Departments should be accompanied by Store Return (R 15).
New or useable must be recorded on Store Return for new and
used spares respectively to enable correct valuation by the
system for used spares i.e. 10% of the value of stock. For new
and reconditioned items the Finance Department will report
values.

Training and development

We recognize that getting the right start is crucial to building a
successful career. This is how we approach your early training and
career development.

Managerial skills

Business Awareness

Performance Appraisal

Marketing department

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The consumer is at the centre of our business. Marketing in the tobacco
industry requires skills beyond the demands of other products. The
ability to differentiate our marketing initiatives, to manage productive
and profitable relationships with our key accounts, to integrate strategies
above and below-the-line and to innovate while always marketing
responsibly are the fundamentals of the marketing challenge.

Consumer Insights

Product Development

Managing Availability and Distribution

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REGIONAL MANAGER ATTACHEMENT

Role of Regional Manager

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Regional manager is the team leader of his region. He motivates and
impels his team members to achieve the targets. Basically he
implements the distribution plan in his region with the help of his team.
The regional manager reports to the head of Trade Marketing and
Distribution.

AREA MANAGER ATTACHEMENT

ROLE OF AREA MANAGER
The area manager helps out RM in the implementation and development
of TM&D national plans and strategies for his area.
He is the team leader for his area team. He utilizes the company human
resources in an effective manner. In addition he also utilized the
distributor resources in a manner by which he gains the maximum
output.

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TRADE MARKETING OFFICER (TMO)
ATTACHEMENT

Role of the TMO and area team

A TMO is a key person of PTC. He focused outlets for which he makes
& executes trade marketing & distribution plan to meet out TMO assists
the AM for implementation of above said goals in an effective and
efficient manner. Further he directly interacts with the distributor and
Trade .The achievements of SOP targets and merchandizing in
his one of the core responsibility of TMO.He also manages the
given human resource of own and distributor.

AREAS OF TMO

 TMO 200 outlets visit

 Distribution management

 Intelligence of market

 Cycle activity execution

 SP management

 Wholesale management

 Merchandising selection & placement

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  Administration of record & stock.

TMO 200 Outlets

The basic responsibility of a TMO is to visit 200 selected outlets in a
month to keep in touch with the market information of our own brand
and competitors. He go to these outlet and create a good relationship
with shopkeeper and with the help of good relationship he can increase
the sale of PTC brand Government ban to advertisement of tobacco so
TMO focus on these retailers because they are advertisers of PTC brand

ATTACHEMENT WITH MERCHANDISING AND

PROMOTION CO_ORDINATOR

M&PC is attached with Regional manager and give report to him about
any activity that he performs. Company gives promotional material in
regional office .M&P coordinator control this and after that he divides
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.

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RESPONSIBILITIES

1 Main responsibility of M&PC is to effective utilization of budget

according to brand.
2 He should control the supplier management.
3 He must fulfill the distributor claim.
4 Maintain supplier settlements.

BUDGET OF BELOW THE LINE

It is responsibility of M&PC to take care of budget allocation to the

region with the approved of Regional Manager. He gives budget
according to brand wise and he should maintain brand expenses. His
responsibility is to develop and execute promotion plan through TMO,
Horace’s and key accounts in line with the promotion strategy in
conjunction with the cycle planning process and to ensure maximum
benefit out of below the line muscle and
advancement. Internally the sales promotion coordination with Area
manager cycle planning manager and brand manager for promotion
design and executions etc. Externally he deals with suppliers contractors
trade channels organizers and consumers. He also deals with local
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administration for public relation and permissions to ensure smooth
execution of promotion, sponsorship activities and promotion van
operation etc.

PURCHASE ORDER
It is conduct after the approval of indent from Regional Manager. It is
permeation from Regional Manager and it conform the availability and
allocation of funds for certain activity that relates to promotion.

GOOD RECEIPT NOTE

It is essential before the processing of bills and claims. After receiving
GRN merchandising and promotional coordinator perform next activity.

ONLINE ACTIVITY
Merchandising and promotion coordinator is working on two computer
programs for the purpose of payment process of claims and bills. The
first program that performs M&PC is system application product (SAP)
and next is supplier relationship management.

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Overview of Trade Marketing and distribution(TM&D)

TM&D Mission
To reach the customers in the most effective & efficient manner and to
become benchmark supplier in the market.

Critical success factors

There are five CSFs for TM&D team

 Resource Management

 Strategy and planning

 Supply Chain Managements

 Account Management

 Information Management

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ATTACHMENT WITH SP

A SP is working under the supervision of TMO. TMO give them

overall instruction. At the end of day a SP give report to TMO. So
we can say PTC supervises a SP and distributor supervises all
salesmen. The basic responsibility of SP is to communication of
product & promotion both. I was attached with Mr. Tanveer (sp). He
is a graduate. He is very funny person. His presentation is excellent.
He is very careful about

consumer. His speaking power is very attractive. He acts upon all

objectives of SP in real sense.

So I learn maximum knowledge about market with the help of Mr.

Tanveer. I was also attached to another SP but unfortunately he is not so
much active. But Mr. Tanveer is very active He was the member of
special force. He is very cooperative and young. He was properly done
his duty to ensure the availability of all brand and specially Pall Mall.
He convinced the Consumer with the help of incentives like, cap, digital
clock, 20 HL Pall Mall pack, 10 HL Pall Mall pack, etc

PTC gives a Plano gram to every SP. So Mr. Tanveer is also working
according to Plano gram. He put Pall Mall light stock then Pall Mall
filter is second and at last Pall Mall menthol. HE was also decorating
the out let with merchandising material.
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 OBJECTIVES OF SP
 Topping Up

 Availability

 Visibility

 Pack display

 Promotion awareness

 Consumer contact

 Merchandising awareness

 Competition awareness

 Market intelligence

 Out of stock

ATTACHEMENT WITH SALESMEN

Salesmen are the key persons of the PTC company .We can say that
salesmen are the earning hand and air of PTC, so he is the only person
who faces all customers directly. So they can play a vital role in any
company. PTC takes care of their salesmen. PTC conducts lot of
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training programs for salesmen. PTC conduct training program once in
a year. Salesmen are working under the section of Trade Marketing
officer. Field sales officer is a line manager of salesmen. PTC is the
only company in which most of salesmen are educated so that’s away
they done their work in proper manners. The basic responsibility of
salesmen is to communication of product and promotion both. Work of
salesman is to get order from the outlets and to deliver the stock
requirement in accordance with TM & D instructions. A salesman
should be a best communicator. He should create a long term and good
relationship with their shopkeepers to get highest benefit from trade .A
salesman should responsible for providing after sales service in case of
any complaint means return of D+D (damage & dry) stock etc. I was
attached with Mr. Tahir. We move 50 approximately outlet and give
them stock.

Preparation

Approach

Stock check

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 Presentation

Closing

Internal store marketing

Consumer contact

Evaluation

Administration

NINE STEPS OF CALL.

Nine step of call is very effective for salesmen and as well as

employee of PTC.

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 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:
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 bike and he should have the
cash memo and ballpoint.

Approach:
Complete the passage from distributor to shop and when reach
in shop he must understand the behavior of shopkeeper.

Stock check:
Check that 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 is sale volume.

Presentation:

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If salesman has any information about any brand of PTC, he
should give to shop keeper and if PTC offers any scheme and
promotion, the responsibility of salesman 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.

In store Marketing & Merchandising:

-If PTC give OGD to any shopkeeper. Salesman should check

the display of all brands, arrangement of all brands. The place
where OGD exists should be neat & clean.

Consumer contact:
This step is most important for salesmen and sales promoters as well. In
which we convert the smoker to PTC brand if he use any other brand. In
this step salesman convince the customer to use the brand of PTC.

Administration:
Administer to all activities like cash memo, D.S.R etc.

Evaluation:

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Means self-analysis during whole day and if any deficiencies
note them and control in the next tour.
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.

CUSTOMER RELATIONSHIP MANAGEMEN

A salesman should build a very healthy relationship with the retailers.

He should have a strong grip on local languages. He should checks rates
offered to retailers.

FIXED SALES SEMMARY (FSS)

A salesman should monitor brand wise sales productivity. In particular
beat FSS is essential tool

SALESMAN SALERY
PTC gives commission based salary to its salesmen. PTC gives
commission according to brand wise.

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STEPS CLAIM PROCESS OF DAMAGED &

DESTROYED STOCK

1: Collection of D+D stock

2: Physical presence & verification by TMO.

3: Entry on D+D book by TMO

4: Entry on computerized summary of claim

5: D+D claim form preparation by distribution

6: Signature from AM

7: Handing over to MC for payment process.

SALESMEN TRAINING PROGRAM

PTC is very caring company. PTC conducts salesmen training

program once in a year. During my internship PTC Multan region
conduct a training program in Zanzibar Hotel. Cities that include in
their program are Khanewal, Kabeerwala, Jahanian, and Jatoi. All
salesmen of these cities are there. In which two TMOs are also
available there. This program was conduct under the supervision of
Mr. Khushall Khan Khatak (area manager of Multan). At the start of
program, TMO give introduction to all of salesmen to Area manager
for making program more interesting.

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 TMO start a game between salesmen. For this proposes they set
teams. Every team conducts 6 members or there are 6 members in
every team. After that they start a movie. This movie is about 9 step
of call. So that was very interesting program and was very effective
for salesmen at the end PTC lunch to all of candidates. Timing of
program is (9to6) am. So whole day salesmen learn maximum
knowledge about 9 steps. At the end Mr. AM give instruction to all
salesmen. Actually the basic purpose of this program was to increase
the efficiency of all salesmen.

WARE HOUSE EXECTIVE ATTACHEMENT

Warehouse executive is accountable for the supply chain
management of from areas warehouse to the distributor. Warehouse
execute’ other responsibility are inventory control, system
administration, route planning, record maintenance and stock
management as per supply chain guidelines. The function of
warehouse is to provide right product, at right time, in right quantity
in an efficient manner to satisfy customers. “Warehouse in -charge”
and an excise officer in the routine operations assist warehouse
executive. Production and supply chain department controls area
warehouse. There are 13-area warehouse across the country. Each
warehouse is required to feed fixed number of distributors. Multan
has 34 distributors for supply of stocks.

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STOCK REGISTER

PTC maintains a register that is called SD 20 for the purpose

of daily sales. This is the legal responsibility by the
company to maintain a stock register on daily bases

Register shows

 : Total stock that received during the month

 : Total stock available at month start

 : On hand stock

 : Split of DD, VDD and village wholesales SD-9

This is the annual marketing information register in which all the

information about total brand of PTC on annually basis this register
shows the market volume of PTC. It also shows the secondary sale
volumes, coverage of village, productivity. In this register they
written all activities of competitors through this register we see that
where we stand in the market. With the help of this register we see
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 accumulated sales trends and brand wise sales trends, PTS also
written all their promotions and activities.

Order control form (OCF)

Distributor produced OCF in which defined the estimated consumer

demand. OCF is monthly average channel wise sale and it is
prepared for 10 days forwarded to the area office with the lifting
plan.

DISTRIBUTOR CLAIMS & REPORTS

ICA (inward cartage allowance)

It is paid to distributor on lifting of stock from where on their

transport Arrangement. It is paid monthly to distribute.

OCA claims (Outward Cartage Allowance)

The cartage paid to the transporters for transportation of stock from

warehouse to Distributor is called OCA.
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PLANNING ABOUT JOURNEY
AM set out the monthly activity plan for TMO. This is called journey
planning. A TMO visit those shops, which have high sale volume. So
with the help of this a TMO easily plan out their monthly activities.

OBJECTIVE OF JOURNEY PLANNING

1: It is the basic responsibility of TMO to visit all rural areas.

2: He should also visit wholesale market.

3: the main objective of journey is to contact with DSO salesman.
4: In the morning TMO give instructions or planning to all SPs.
5: In distribution he should also control distribution all of management.
6: Planning of 200 outlets

RCS (Retail Classification System)

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Every TMO visits 200 outlets monthly. He visits 20 outlets every day.
So retail classification survey is called as RCS. RCS give information
about classification of outlets in connection to volume, quantity,. With
the help of RCS a TMO perform trade marketing and development
activities. RCS provide ease to develop beats of salesman & coverage
plan. With the help of RCS we can get the information of total outlets.
Total outlets in Multan area
are 500, in this database both high and low sale wise outlets are
included. TMO select 200 outlets, which are high sale volume.

Criteria for the Selection of outlets

High selling (Minimum from volume –6 class)

80% own volume outlet
50% plus ASU – 30 (adult smoker under 30 year share)
Another core responsibility of TMO is to collect the information of
both own and competitor brand volumes.

RORT (Retail outlet Reporting Tool)

PTC uses a lot of software to increase the efficiency and to improve the
performance of their employees. RORT is a software that is used for the

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purpose of analysis and report generation with the help of we can get
the information about brand analysis we can get outlet wise sales .so
RORT is very useful for a TMO.

DISTRIBUTOR RESOURCE DEPLOYMENT

TMO use SP and salesman for the improvement of selling .so SPs and
salesman are the resource of TMO and if he maintain them in a proper
manner he can get better results. TMO use resource like human and
financial in best way and in the interest of company to achieve the set
target. Urban coverage is usually thrice in a week a rural coverage is
mostly twice a week.

OUTLET MERCHANDISING

SELECTION PROCESS
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1 Selection by TMO
2 Relations with PTC staff
3 50-meter clause implementation
4 Good relation behavior
5 High visit frequency / percentage of ASUZO
6 Profile selection of market
7 Selection of material in store / on store
8 Retailer agreed on written contract
9 Traffic of low and view

Material of In store Merchandising

1 Village Modular
2 Tube shade
3 In store sheets (14”*29”16”*48” )
4 Counters plastic sheet (64”*32”)

Material of on store Merchandising

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Backlight Flex board
Front –light flex board
Projection boards

Maintenance system of Merchandising

Total outlets merchandising in Multan market by PTC are 5000

For the maintenance of merchandising material installed to these 5000
outlets is through a Hired merchandising Supervisor (MS). Regular
cleaning and maintenance of the material is the core responsibility of
MS. He has to satisfy all the merchandising complaints reported, with in
15 days.
Approximate of 15 to 18 shops are being attended by the MS for
cleaning and maintenance according to the monthly journey plan.

Outlet Maintenance Criteria:

Fascia must be cleaned once fortnightly.

Operations and Finances of Distributor

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It is responsibility to distributor is to maintain the necessary needed
stock level and its distribution in his market. In addition to meet out the
required monthly SOP as per the company instructions is also the
responsibility of distributor.

Competition Evaluation of Distributor

To increase the efficiency of the resources the distributor’s competition
are arranged by PTC.
Their evaluations are done by TMO keeping the following points:
Availability:
Distribution width of all SKUs (numeric&
weighted)
Resources:
Coverage percentage
Load factor

No. Of FSOs
1. Out of Stock (OOS):
Numeric OOS levels

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 2. Customer Services:
After sales service through customer
call centers
3. Volume:
Volume growth over same period last year
(SPLY)
4. Merchandising:
Presence of merchandising system
5. Benchmarking:
Benchmarking of distributor.

Financial Evaluation of Distributor

This is made twice a year (Annual & half Yearly). This is a helping tool
for management to assess and evaluate the financial matters of
distributor. This includes:
1. Overview of business
2. Stock investment
3. Productivity
4 Coverage
5 Vehicles / assets
6 Expenses
7 Return on investment

SPV UTILIZATION
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Sales promoters are working under the instruction of TMO.Basic
responsibility of sales promoter is to carry out the fixed coverage plan
other important responsibilities are
1 New launch promotion
2 Promotion/trade offer communication
3 Pack display
4 Product communication
5 Out of stock tracking
6 Topping up

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PRODUCT LAUNCHING STRATEGY

After marketing research and identifying a customer need PTC

produced the product after production they do test marketing and see the
results & estimate that this product will effect on what level of our own
product and product of competitor and after this they monitor the sales
and see actually the sales volume cut from own product and product of
competitor and that category. This is known by the distribute and sales
men during the product launching company offers the incentive to the
retailer and the customers to create the awareness in the customers
company prints posters and give ads in the News paper and
telegram. In the present a new brand of Embassy Filter 14
cigarettes pack is launched and this strategy was used on this
product. Company come to know after research that there are
some customers which take 12-14 cigarettes daily, so they
launched this 14 cigarettes pack product.

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 MARKET SEGMENTATION

“Market segmentation is the process of dividing the

total perceived market into subsets, in each of which the
potential customers have characteristics in common leading to
similar needs from a product or service”.
PTC also makes the segments for their brands and
income is the base for this segmentation

ROLE OF MARKETING RESEARCH IN PTC

Pakistan Tobacco Company gives a much

importance to the marketing research.

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 Pall Mall

What is Pall Mall?

• Pall Mall is an international brand of B.A.T. and now it is

brand of P.T.C
• Why we launch Pall Mall?

We gave smokers another choice to smoke an international

brand.

Pall Mall is an international drive brand that has

international image. For Pall Mall our target market is
capstan’s smoker and other similar priced brand but we
focus Capstan that is locally drive brand but has
international image. To overcome this misperception we
launch an international brand that have international image.

Pall Mall is more fine then Capstan and available in the

same price.

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In our markets we don’t find any brand that has three different
flavors. So to get more market share and fill this gap we launch
Pall Mall.

Launching of Pall Mall

Out target market was Capstan. So we make Capstan as a
primary source of business and secondary source of
business were Red & White, Wills International, and other
similar price brands.

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 CAPSTAN
Other similar
price brands.

We planned all activities on the bases of Capstan’s sale. We

get daily capstan’s sale information from”R.C.S”. Then
other source of information was salesmen and T.M.Os.
Through both sources we come to know that there are 5,000
points where cigarette is sold.

For launching we take out 313 shops out of 2,600 points where
Capstan’s sale is higher then other remaining outlets.

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Then we categories all 2,600 points according to their
Capstan’s sale

Category Capstan’s daily sale

A .2 M or more then .2M
B Between .1M to .2M
C Between .020M to .1M

After surveying and planning, now its time to launch Pall Mall
in the markets. For launching we need more men power and
sources to regulate this launching according to plan, to control
and launching activities. For that purpose we request other
sections T.M.Os and S.Ps to join us. And we are very thankful
to Mr. MALIK AFTAB, Mr. JAVED ASHRAF, Mr. MUSHTAQ
and all S.Ps who accept our request and join us to make this
launching successful. In Multan area we have 1 Area manager,
5 T.M.Os, and 30 S.Ps

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 We divide our force into two forces.

1. Task Force
2. Regular Force

Task Force
It was the right time to take care of high selling areas specially
Capstan’s high volume selling areas. From surveys and other
sources of information we take out 313 shops where Capstan
sales volume was highest. Sales of those shops were more then
.2M per day. For these 313 shops we establish an energetic,
hardworking and motivated force named TASK FORCE. We
establish Task Force because we know that we get best and
positive result from these shops and Pall Mall will click from
here. So we planned that only task force will visit 313 shops (A
category) on daily bases.

Mr. Malik Aftab was supervised Task Force

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Task Force’s Members
SP

SP

SP

SPV
I (as an internee)
T.M..O

SPV

SPV

SP

SP

SP

SP

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REGULAR FORCE

For other 2,300 shops we had 4 T.M.Os and 20SPs.

Responsibility of this force was to doing all activities
according to plan. They visit B and C class or category shops
on twice and thrice weekly bases.

♦ Our next step was decorating the out let with

merchandising material. We have three types of merchandising
materials

♦ In-store merchandising material

♦ On-store merchandising material
♦ Out of Home

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 In-store merchandising material

All merchandising that are placed inside the shop is called In-
Store Merchandising material. For Pall Mall launching we
had large number of material for In-Store Merchandising.

On-store merchandising material

All merchandising that are placed Out-side the shop is called
On-Store Merchandising material. For Pall Mall launching we
had large number of material for On-Store Merchandising.

Out of Home
Out of home means to convey company massage through bill
board.
But now on 30th of JULY Government of Pakistan banned all
bill boards of tobacco base products. Now OOH is not in
practice.

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 62
For Pall Mall Launching
On-Store Merchandising Material

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 S h o p F a s c ia a n d C o u n t e r

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 S h o p F a s c ia a n d C o u n te r

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 66
For Pall Mall Launching
In-Store Merchandising Material

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 J P G L O u t le t

O.G.D
(Organized Grocery Dispenser)

• With JPGL header sheet

• 7 pack O.G.D
• Arrangement of packs

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 J P GL O u t le t

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 C a p s t a n / G F O u t le t

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 C a p s t a n / G F O u t le t

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 In-s
tores
hee
t

In-store sheet

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 Wobbler

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 Bunting

Mobile

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 LaunchPoster

1st Two
weeks

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 Price Poster

Range Poster

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• During launching for company communication and for more
awareness and to entertain the shopkeepers we gave promotions on Pall
Mall. Promotion’s mechanics was

1. Redemption
2. Pack Display Competition
3. Lucky Draw

Redemption
Our first promotion was redemption offer. That was, we gave
a 20HL Pall Mall pack with the replacement of 5 empty Pall
Mall pack. This offer was started from June 29, 2006 to July
12, 2006.
Pack Display Competition.
Objective of this competition was
• To make shops attractive for create consumer’s
attention.
• Display according to Plano gram.
• To create an image in consumer’s mind
We divide this competition into
1. Tier 1
2. Tier 2

Tier 1

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In tier 1 we select 100 “A” category shops where Capstan’s
sale was more then .800M per day. During launching T.M.O or
AREA manager visited 4 times these 100 shops.

On first 3 visits they gave a 20HL Pall Mall Filter outer as a

gift and on fourth visit we gave them a prize bound worth R.S
750 and on the same visit we gave lucky draw coupon and
through that coupon they participated in lucky draw.

Tier 2
Tier 2 was for remaining 213 shops of “A” category and all
shops of “B” category. In tier 2 S.Ps visited these shops and
gave them two lucky draw’s coupons in a week. And lucky
draw was held on the end of each week. Prizes of lucky draw
was
Motor Bikes
Food Factories
Mobile Phones
Color TV

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 *”C” class category was not legible for Pack Display
Competition because they have not sufficient stock for display.
Like we did not gave them Pall Mall Menthol.

Supply Chain

Seed/Leaf Department

Production Department

Material Management Department

Primary Manufacturing Department

Stick Manufacturing Department

Factory Warehouse

Area Warehouse

Distributor Warehouse

Supply to Wholesale and Retail

Sales to End Consumers

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STRENTHS

PTC offer heavy incentive package like Motorcycles, TV, tape

recorders and wall clocks in promotion.
 PTC is a consumer-focused company.

 PTC is working in systematically way.

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  PTC is working as doing good not only doing well.

 PTC attract only those people whom above 18 and not

mare then 40.

 PTC gives more incentives to salesmen during any

promotion.

 PTC is taking care of their employees.

 Management of PTC create a database and all its

employees are link between each other

 PTC conducts health and safety programs of their

employees.

 The working environment of PTC is very good.

 PTC appreciates all of those employees who show more

effort in their work.

WEAKENESSES

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 Salaries of salesmen are very low due to this reason they
are not satisfied.

 Number of distribution is less.

 Sales promoter is not working up to the standard.

 The actual price of Gold leaf is Rs 39.60 most of the

shopkeepers sales it on Rs 42.

 Company not covers rural area according to their desire.

 Some time salesmen not cover his area in proper time.

OPPERTUNITIES

 Brand‘s acceptance shows that it has potential to grow and

grow well.

 Promotion activities give us ideal opportunities to

cannibalize substantial share from declining brands.

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 Promotion has been a strong basis towards building up big
brand image for all PTC

 In promotion PTC give more incentives and LTC give less it

is best opportunity.

TREATS
 When PTC starts any activity of coupon scheme LTC also
start such type of scheme.

 Some times LTC introduce consumer promotion with better

and attractive prizes.

 Sometimes LTC reduce its prices.

 LTC cover more area instead of PTC.

 Customer of Marvin Gold is very loyal.

 The prices of competitor are very less as compare to PTC

brand.

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Recommendations

1. PTC in Multan needs to increase the efficiency

of Consumer Contact in a more planned way. In
the weak belts in respect of less volume share
PTC can increase the Market Share by
improving the Consumer Contact with the help
of Competent Workforce.

2. Warehouses in Multan are overloaded. Capacity

of warehouse is 45 Million sticks but right now
Wharehouses are overloaded. So , PTC needs
more capacity based warehouses in Multan

3. PTC needs more improvement in Merchandising

Maintenance System. There is no proper check
and balance on SPs.

4. TMOs are always under pressure due to High

Target Achievement, managing the Distributor
issues as well supervising the SP.

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 5. As a big Target Market, PTC is ignoring the
Rural Areas in Multan, which should be
considered.

6. Salesmen are the earning hand of any

Organization. But the %age of the commissions
of Salesmen is less.

PTC should increase the no. of OGDs, especially in

Rural Areas. Because proper display in the Market
to increase PTC Merchandising Share.

7. Most shopkeepers sell Gold Leaf at higher

Prices. Company should consider it by pertaining
Original Prices.

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