Pakistan Tobacco Company Analysis

Pakistan Tobacco Company
LAHORE SCHOOL OF ECONOMICS
Sales Force Management
MBA 2
SECTION: C
NAME:
Noman Ezad
Khawaja Muhammad Ahmed
Malik Sultan Haider
Rana Noraiz
DATE:
16th April 2015
TOPIC:
Sales Force Management at Pakistan Tobacco Company
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Contents
LAHORE SCHOOL OF ECONOMICS.................................................................................1
Executive Summary.................................................................................................... 4
Tobacco Background................................................................................................... 5
Tobacco Industry in Pakistan....................................................................................... 5
Cigarette contributing to Economy of Pakistan...........................................................7
Fabricating offices in Pakistan.................................................................................... 7
Pakistan "Tobacco Policy Status"................................................................................8
Tobacco Control in Pakistan :...................................................................................... 8
Tobacco Related Policies in Pakistan........................................................................8
Difficulties to the business....................................................................................... 10
Pakistan Tobacco Company...................................................................................... 11
History...................................................................................................................... 12
Structure.................................................................................................................. 13
Real Brands........................................................................................................... 14
Operations in Departments...................................................................................... 15
Promoting Department.......................................................................................... 15
Product Housing.................................................................................................... 16
Goddown Management Information System (GMIS).................................................18
Working of Distributors............................................................................................. 19
Deals Promotion.................................................................................................... 20
Real Functions....................................................................................................... 20
Product Housing.................................................................................................... 21
Deals Promotion.................................................................................................... 22
Marketing.............................................................................................................. 23
Sales......................................................................................................................... 24
Tax............................................................................................................................ 24
Marketing Activities.................................................................................................. 25
The Lotus Notes........................................................................................................ 27
Contextual analysis Pakistan Tobacco Company.......................................................27
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BCG Matrix for P.T.C.................................................................................................. 29
Our Visit.................................................................................................................... 31
Stock ordering by Distributor.................................................................................... 32
Key performance indicators...................................................................................... 33
Research................................................................................................................... 33
Problems................................................................................................................... 34
Recommendations.................................................................................................... 35
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Executive Summary
We have done our project on Pakistan Tobacco Company for our sales force management
project. We learned how they are performing their operations in territory of Lahore. We have
done several visits to the office of Pakistan Tobacco Company that is located in D.H.A Lahore.
Our group has also visited the distributors office that is located in Dharampura, Lahore. Pakistan
Tobacco Company had two distributors but we only have visited S.M.I (Sheikh Muhammad
Illayas) office and learned how they are performing their operations so effectively and how they
are managing their sales force. They are managing the sales force of 38 people in their territory.
We have interviewed sheikh Muhammad Illayas and asked different questions related to our
course. We also have interviewed different retailers (pan shops) That are their major contributors
in sales and they told us how cigarette consumption has increased over time. Research was
conducted in Pakistan it revealed that cigarette consumption show drastic increase in summer
season because during summer people spent a lot of their time out side and consumption of
cigarette increases.
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Tobacco Background
Tobacco is not another style of society; scientists are as yet thinking that its inception and the
time when precisely individuals begin utilizing it. The most punctual types of cigarettes were to a
great extent Indistinguishable from their ancestor, the stogie. Cigarettes have been validated in
Central America around the 9th century as reeds and smoking tubes and later the smoked tobacco
and different psychoactive medications in religious ceremonies and much of the time delineated
ministers and divinities smoking on stoneware and sanctuary engravings. The cigarette and the
stogie were the most well-known systems for smoking in the Caribbean, Mexico and Central and
South America until later times. The South and Central American cigarette utilized different
plant wrappers; when it was taken back to Spain, maize wrappers were presented, and by the
17th century, fine paper. By 1830, the cigarette had crossed into France, where it got the name
cigarette; and in 1845, the French state tobacco syndication started assembling them. In the
English-talking world, the utilization of tobacco in cigarette structure got to be progressively
well known amid and after the Crimean War, when British warriors started copying their friends
and Russian adversaries, who had started moving and smoking tobacco in segments of old daily
paper for absence of legitimate stogie moving leaf.
Tobacco Industry in Pakistan

In ahead of schedule times Pakistan to a great extent imports the tobacco items, for example,
crude tobacco, cigarettes, Cigars and so on. The import of tobacco was high in those days and to
maintain a strategic distance from such item it was chosen to create bit low quality tobacco in
northern zones (KPK). The Pakistan Tobacco Board, as a team with the tobacco organizations,
heightened innovative work exercises and investigated the dirt and climatic conditions in the
sub-rocky territories of Mansehra, Buner, Swat and Dir regions to meet the quality prerequisites
of cigarettes for residential utilization. The nearby oriental sorts of tobaccos are developed in the
fields of KP and, to some degree, in the territories of Punjab, Sindh and Baluchistan Punjab is, on
the other hand, well known for the generation of dim air cured and hookah sort tobaccos. At
present, all the tobacco devoured by the tobacco organizations for cigarettes is created in the
nation with the exception of an ostensible amount which is imported for utilization in prevalent
brand of cigarettes. The creations of cigarettes were begun during1950's with low value and poor
quality, in 1960 British American Tobacco Company dispatched its warehousing office in Akhora
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Khatak District Noshahra. BAT propelled its assembling in 1974 and introduced most recent
cigarette making machines in1975.
Pakistan's tobacco industry has been a generally tried and true wellspring of government wage,
contributing approximately 27.5 billion rupees every year - what might as well be called 4.4% of
Pakistan's GDP. It has the biggest yield of any harvest in that nation and utilizes practically 1
million Pakistanis.
Yet in the most recent couple of years, there has been a developing worry about the evil impacts
of cigarette smoking and the effect it has on the wellbeing and prosperity of Pakistanis. Case in
point, more or less 90% of lung malignancies in Pakistan are attributable to cigarette smoking.
In the most recent decade or somewhere in the vicinity, there has been a huge hostile to smoking
backfire in the United States. The later out-of-court settlement of $360 billion between
"Enormous Tobacco" and members in a class activity suit has impelled the advancement of
hostile to smoking coalitions in different parts of the world.
The decrease in smoking in North America, particularly the United States, has been balanced by
a solid push from the huge tobacco organizations to discover changes over in the creating scene.
As tobacco control is fixing in the West, transnational tobacco organizations are getting to be
more dynamic in creating nations. The outcome is that tobacco utilization is declining at the rate
of 1.5% in the West however in the meantime it is expanding at the rate of 1.7% in the creating
nations.
While the opposition to tobacco development in the USA helped lower cigarette deals, Big
Tobacco, the biggest US organizations: Philip Morris, R.J. Reynolds and Brown and Williamson,
and additionally the British American Tobacco Co., have keep on extending abroad.. They have
overwhelmed the businesses in Asia and Eastern Europe with notices, limited time items and cutvalue brands intended to energize new smokers.
As indicated by the Pakistan Pediatric Association, consistently more than 1,000 kids between
the ages of six and 16, begin smoking. It is evaluated that more than 33% of men and nearly four
percent of ladies in the nation are smokers. Consistently, the legislature spends some US$20,000
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on hostile to smoking messages yet cigarette organizations burn through a great many dollars
every year on publicizing.
As per the prestigious promoting magazine 'Age', the Lakson Tobacco Company spent a
shocking $6.4 million on attention in 1998, making it the third biggest business promoter in
Pakistan that year.
Against tobacco campaigners blame the legislature for being influenced by the tobacco business.
As per free gauges, the Pakistani government gathered over $300 million in tobacco charge in
1990, somewhat more than a tenth of the administration's aggregate income profit that year. Anittobacco activists say that whatever advantages the legislature is procuring in the fleeting from
tobacco-related commercial ventures will be fundamentally balanced by the long haul health
awareness issues of normal Pakistanis crushed by smoking addictions.
Cigarette contributing to Economy of Pakistan

Pakistan is 6 biggest populated nation of the word and as per a journalist Waqar Gillani:
Educational organizations get to be essential spots to begin smoking 85 percent begin smoking in
adolescents; LAHORE: Around 85 percent of smokers begin in their high schoolers, Daily Times
found in the wake of directing a review on adolescent smoking, held as a team with the nongovernment segment and wellbeing associations . According to demonstrated by the
correspondent of Daily Times; the interest of cigarettes expanded greatly in Pakistan.
Fundamentally Pakistan fares its tobacco items to Afghanistan, Gulf nations and Central Asian
nations.
Fabricating offices in Pakistan

There are 26 cigarette fabricating manufacturing plants of 15 tobacco organizations in the nation
with an introduced limit up to 126 billion pieces on three movement premise. The Pakistan
Tobacco Company (PTC) has gotten to be principle supporter to the Government Exchequer with
almost Rs. 50 billion gathered in the manifestations of Excise Tax, Sales Tax, Tobacco
Development heads, and different assessments.
Sources say that the tobacco business assumes a discriminating financial part in Pakistan by
producing pay and occupation in the tobacco cultivating, assembling, dispersion and retailing.
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There are just about 350,000 individuals, straightforwardly and by implication, working in the
tobacco business
Pakistan "Tobacco Policy Status"

Smoke free environment
Smoking is banned in indoor workplaces, eateries, Health care and instructive offices and on
open Transportation in Pakistan. Requirement on the boycott on smoking is remiss.
Bans on Advertisement and Promotion
Pakistan does not have a far reaching boycott on tobacco promoting and advancement.
Wellbeing WARNINGS ON TOBACCO PACKAGES:
Pakistan executed pictorial notices on cigarette packs on May 31, 2010.The new notices cover
40% of both the front and back of cigarette packs. 30% of the notice is pictorial and 10%
content.
Tobacco Taxation and Prices
A mixture of tobacco items are utilized as a part of Pakistan. Assessment on tobacco items is
high in examination with different nations in there yet duty rates have stayed relentless as of late
and stay under universally suggested level
Tobacco Control in Pakistan :

Tobacco Related Policies in Pakistan
There are scopes of exercises and laws that can diminish the utilization of tobacco in nations
around the world. Three such viable laws have been executed in Pakistan through the declaration
of Prohibition of Smoking Ordinance 2002. These laws can demonstrate compelling if legitimate
research on the foundation of laws and execution practices can be completed. In spite of the fact
that noteworthy change has been made in declaration of statutes and enactment yet the usage
of the said laws need to be went down by exhaustive research on the financial determinants
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that frustrate the execution of these laws. The administration of Pakistan additionally tells
Statutory Regulation Orders for powerful execution of the tobacco control statutes.
Sales Restrictions to Minors
This law forbids offer of cigarettes to minors inside Pakistan. The historical backdrop of this law
can be followed to 1959. This Ordinance, basically until 2002, wasreplaced by the Prohibition of
Smoking Ordinance 2002, forcing a boycott marked down to minors. In light of this law venders
can be considered responsible for offering cigarettes to minor
Clean air approaches
The advancement of clean air approaches is a standout amongst the best general wellbeing
measures to reduce the measure of tobacco utilized as a part of open spots and to protect the
soundness of non-smokers. The Prohibition of Smoking Ordinance 2002 bans tobacco use in
every open place, transport and indoor work environments. This Ordinance went live on the 30th
of June, 2003. This statute has been particularly effective in banning smoking in the Pakistan
International Airlines and the Pakistan Railways and some nearby government workplaces. Be
that as it may it is yet to be executed in genuine soul and one can in any case see numerous
infringement of this mandate by higher government authority
A sum of three separate assessments are required on tobacco and cigarettes in Pakistan. These are
General Sales Tax (GST), Central Excise Duty (CED) and the Tobacco Cess (TC), totaling
around 78% of the deal cost of the cigarettes. The legislature of Pakistan has been consistently
expanding the tobacco charge. In spite of the fact that the charges on tobacco have been rising
relentlessly, the tobacco organizations in Pakistan have been gathering more assessments and
paying less to the administration. Hence the tobacco assessments are helping them all the more
as opposed to cutting down the frequency of cigarette use in Pakistan. In spite of the increment in
tobacco charges they are less expensive and henceforth more open in Pakistan today than they
were 15 years back following the genuine cost of cigarette has gone down in money related term
because of swelling and a multifold increment in costs of different items. The accessibility of
cigarettes in single sticks additionally make them more reasonable to youth
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Augmentation of Rotational Health Warnings .Moreover SRO 863(I), a 2010 law that adequately
bans the promoting and offers of the littler 10-cigarette packs
Difficulties to the business

Volume deals keep on dropping : Cigarette volume deals in Pakistan kept on dropping in 2011 as
the offer of illegal cigarettes and rising attention to wellbeing dangers connected with smoking
kept on hampering development of legitimate deals. Another substitute for cigarettes that
recorded an increment sought after in 2011 was water channel ('sheesha'), which is particularly
mainstream among more youthful 18-25 year-olds. Moreover, high assessment, swelling,
unemployment and moderate financial development in 2011 diminished obtaining force,
primarily amongst the extensive number of low-wage buyers.
New enactment produces results
In 2011, beforehand passed enactment with respect to the base pack size of cigarettes and offer
of cigarettes to under-age buyers and confinements on smoking in broad daylight spaces was
actualized. In spite of the endeavors of campaigning gatherings to postpone execution to 2013,
the administration conveyed on its guarantee to put these fundamental laws energetically by
upholding fines on resistance. In spite of this activity, because of a powerless lawful framework
and elevated amounts of debasement, the effect of the new enactment is prone to be constrained.
Deals pioneers face contracting main concerns
Tobacco in Pakistan is oligopolistic in nature, with Pakistan Tobacco (possessed by British
American Tobacco) and Phillip Morris (Pakistan) (claimed by Philip Morris International)
keeping on overwhelming deals in 2011. Higher expenses, principally because of rising vitality
costs and expansion, and a drop in volume deals brought on both players to experience a
decrease in net revenues in 2011, with Philip Morris (Pakistan) giving back a misfortune for the
initial nine months of 2011.
Rising illegal exchange deals
High assessment and costs are bringing about lower edges for retailers and merchants and are
expanding the extension for the offer of illegal cigarettes, which give higher benefits to these
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players. An absence of solid execution of laws from the administration has left the lawful market
unprotected against unlawful players. The center of the administration's strategy is by all
accounts on decreasing general utilization of tobacco items and controlling use amongst underage assembles rather than guaranteeing that just legitimate items are sold. Despite the fact that
the tobacco business is a huge wellspring of expense income for the administration, law
authorization offices have neglected to ensure this wellspring of pay.
Difficulties expected for figure period
The tobacco business confronts a two dimensional test over the estimate period. The principal is
the authorization of against smoking laws and falling request as an aftereffect of high assessment
and new hostile to tobacco enactment. Then again, the expanded fame and constrained regulation
of choices as illegal cigarettes and water funnels is likewise undermining development of lawful
tobacco deals. Notwithstanding, the financial recovery of the nation and expanded spending
force of shoppers implies that tobacco volume deals ought to increment over the figure period.

Pakistan Tobacco Company (PTC) is a partner of one of the world's driving tobacco bunches,
British American Tobacco Company, which has a legacy spreading over 100 years. The BATC
has vicinity in more than 180 nations and is known for its superb tobacco brands.
English American Tobacco Company began its operations in Pakistan in 1947 and is the first
multinational to set its foot in Pakistan. In 62 years it has developed from an organization
working from a distribution center close Karachi port to having two best in class offices utilizing
more than 1,700 individuals.
The Company is included in every single part of cigarette generation from products to buyers.
The item arrangement of PTC is very much differentiated; it has diverse assortments to offer an
extensive variety of smokers from low cost to premium quality expensive cigarettes. Pakistan is
the 6th most crowded nation on the planet with more than 60 percent populace underneath the
age of 30; this populace lump guarantees great future for PTC.
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History
Pakistan Tobacco Company was established in 1947 with a perspective to over take the matter of
Imperial Tobacco Company of India, in the domains and areas incorporate in east and West
Pakistan. The guardian organization of PTC is British American Tobacco, which is a very much
presumed organization of the world. It remains at 2nd position in the of world cigarette market.
PTC is the piece of BAT commercial ventures bunch, which has worldwide workers' quality of
190,000, and operations in more than 80 nations.
PTC was the first remote organization to set up business in Pakistan. A pilot creation plant was
situated up in a stockroom in Karachi Port with a month to month generation of 30 million
cigarettes against offers of 160 million, the hole being made up by imports. The quick extension
of cigarette business sector prompted foundation of Jhelum Factory in 1955. That year PTC
turned into a Public Limited organization. In 1952, advancement of the Leaf Area quickly
advanced in NWFP. Henceforth PTC was the first outside interest in Pakistan and spearheaded
the production of cigarettes and development of Virginia tobaccos in the nation furthermore
begin exploration work in the field of tobacco to delivered finest quality tobacco in Pakistan.
In 1965, as a result of financial motivating forces a plant was created in Dhaka. In December
1971, East Pakistan we lost and the impact on PTC was traumatic both mentally and
operationally 60% of the deal volume was lost and the organization was left holing a huge
creation limit y and inventories overflow. Surgical measures were vital for survival and this
included of administration by 30% conservation/ partition of more than 500 representatives and a
cut in remittances for those held. With the resettlement/ detachment of more than 500 workers
and a cut in payments for those held. With the resettlement of operations, to take care of
expanding demand, a cigarette production line was situated up at AKORA KHATTAK in 1975.
Real improvements from that point forward are modernization of GLT (Re-drying) plant in 1988,
proceeded with interest in redesigning essential and Secondary assembling offices at AKORA
KHATTAK and JHELUM Factories (the Karachi plant having been shut in late 1991) and the
obtaining of fast Loga/ Max D creators.
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PTC is additionally popular for its social welfare exercises. It performs this occupation through
supporting the games occasions, tree ranch, and free portable dispensary for rustic regions. PTC
is additionally doing work in the field of R&D.
Structure
PTC is lead by the Chairman/Chief Executive, and afterward there are departmental heads who
are in charge of their specialties. Taking after are the branches of the PTC:
Corporate & Regulatory Affairs

Money
Human Resource
Data Technology
Creation
Leaf
Showcasing
Deals Marketing
Brand Marketing
Creation Units
PTC has two creation units one in Jhelum and other is in Akora Khattak. Akora Khattak unit is
the biggest creation unit in Pakistan. At the time of development PTC had one unit in Karachi
which was shut later.
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H.O.T /
N.S.M
R.S R.S
.M .M
A.S
.M
R.S
.M
A.S
.M
A.S
.M
T.E
T.E
R&D
PTC has its own Research & Development massacre. PTC is doing examination in IT and Leaf.
PTC was the 1st organization in Pakistan that got to be thousand years agreeable. PTC is doing
exploration in Leaf and giving rules to tobacco producers. PTC is additionally doing examination
in Sunflower seed for oil creation.
Real Brands
Cigarette may be grouped by tobacco, by flavor or by length. On Pakistan Cigarettes are
characterized by quality and length which are as per the following;
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Premium Class
It is the Cigarette created by the best accessible tobacco. Gold Leaf is considered in this class. In
the wake of getting the privilege of Benson & Hedges by PTC now it is additionally included in
this class.
Middle Class
The tobacco of these cigarettes is minimal hard and in this class Wills, Red & White, Morven
Gold is incorporated.
Lower Class
In this class Embassy K-2 Royal and all Mardan Wala brands, for example, Daily, Time Square,
Rangers and so on are incorporated. The essence of these Cigarette is hard and lower pay
gathering individuals smoke generally these brands.
A few brands are characterized by and sizes. Brands of PTC characterized by and length are as
per the following;
Operations in Departments
Promoting Department
PTC's cigarette brands incorporate such popular as GOLD LEAF, CAPSTAN, WILLS, GOLD
FLAKE and EMBASSY. Five of the brands are amongst the main ten offering cigarettes in
Pakistan. PTC likewise showcases CAPSTAN channel tobacco. PTC's brands are sold through
the biggest circulation organize in the nation with 520 merchants coming to the remotest regions.
Every merchant guarantees that retailers and wholesalers in his general vicinity are served on
foreordained days of the week through an arrangement of courses and call frequencies. This
framework, which was presented in the mid-fifties and constantly enhanced after some time, has
subsequent to been received by scores of multinational and Pakistani organizations for an
extensive variety of purchaser products. PTC is one of the pioneers in the utilization of statistical
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surveying in the nation and has added to various systems, which have encouraged the
advancement of promoting aptitude and aptitudes in the nation.
As we now that by showcasing an item can spill out of makers to buyers. All cigarette fabricating
associations spending parcel of cash for promoting and other limited time exercises. For this
reason they are vigorously spending on promoting and on other limited time exercises so that
individuals ought to think about their brands. For these reasons PTC burn through cash for
Cricket occasions, organizes Meals in town's and so on. This all is being done to make great will
among the individuals about the PTC and its brands.
Real Functions
A range Manager and all these territory Managers are responsible to heads every zone Regional
trough. In every locale there is a Merchandising Coordinator ( MC ) Who is in charge of all
promoting and exercises; he likewise gives endorsement for diverse Schemes and exchange
offers with the assistance of concerning zone supervisor.
Product Housing
The work of promoting provincial office begins with the warehousing. Under the local office
north. Every product house is overseen by the distribution center director who is going by the
senior dissemination officer. There are three distribution centers under the north district. Taking
after are the real logistics capacities performed there.
Stock IN
At the point when a truck originates from the plant. The stock is down stacked and it is supplied
in by filling the structures ST 7 and STA. STA is the stock exchange counsel and it has four
duplicates. One with stockroom the other is with the processing plant and third goes to the head
office while the fourth one is the copy one. While the second real record is the structure ST-7. It
has the points of interest of the expense paid and the duty and custom powers acknowledge it.
Requesting
Requesting happens by the accompanying three techniques. A merchant to the distribution center
port spots request.
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1- Mail
2- Phone
3- Self
Stock Out
To get stock out of the distribution center. A DA/I ( Dispatch counsel/ Invoice) is needed. The
DA/I is the report that fills numerous needs. It is really an interest receipt from the wholesaler. At
the point when a merchant gives a request, the stockroom harbor prints out the DA/I and sends it
to the bank. Bank checks the equalization of the wholesaler and affirms that the obliged sum is
show in the specific record.
At that point Physically stock is exchanged to its destination. For this reason there are three
separate routines.
1- Local stock out happens if a wholesalers comes and takes away the stock through its own
particular transport course of action.
2- Some stock is sent under the sending merchandise class to the far flung regions of the nation.
For this reason organization employs the trucks secretly.
3- The basically utilized strategy is the course system to transport the stock out of the stockroom
to the wholesaler. Every distribution center runs 5 courses consistently that disseminates stock to
its a large portion of merchants.
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Goddown Management Information System (GMIS)
The logistics capacities have been made simple with the assistance of electronic
Goddown administration data framework. It is a mechanized database that is halfway associated

with head office and all the stockrooms are connected with one another. It is customized in the
FOX PRO. It performs taking after capacities.
Keeps a nitty gritty record of stock receipts
Keeps and nitty gritty record of the stock that has been delivered to the merchants or have
left the distribution center under any conditions
Have a complete record of every last one of requests that have been set amid a year and
have a complete record DA/I shapes with their complete subtle elements.
Have a complete record of every last one of harms and cases that have been raised
through out the year.
It likewise creates the framework reports and framework questions that are needed by head office
with the end goal of examination. It incorporates taking after
Daily deals report.
Zone insightful Sales.
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Freight costs Payable.

Transit Duration Analysis.
Monthly Stock compromise.
Distributor insightful deals.
Goddown Wise exchanges.
Dissemination Function
The second vital capacity performed by the local office is the keep the dissemination capacity
running smooth, viable and effective.
Working of DOs
Every local office has a group of dissemination officers that is managed by a senior conveyance
officer. Their obligations incorporate after.
1- Go to the documented for all intents and purposes and keep a contact with the wholesalers and
with the retailers for the sake of the organization.
2- To keep and eye on the working of wholesaler and to continue checking the wholesalers
records.
3- To be introduce in the wholesale market and continue working of the entire deal business
sector cover and inconvenience free.
Working of Distributors
The wholesaler is the cigarette office brought when all is said in done. The elements of merchant
incorporates taking after.
To buy the stock from the organization and to offer it to the entire deal and retail
advertise. There are taking after sorts of offers.

1. DD Trivans (tricycle) or Vans
2. S/S Shop Sale
3. VDD Village Sale
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4. W/S Wholesale deal
To keep all the business record and keep up all the archives that are obliged and asked by
the organization. These records incorporate after fundamental classifications.

1- Daily deals synopsis in structure SD 20
2- Monthly record of offers in the register SD09
3- Cash Memos
Deals Promotion
The following significant capacity performed by the territorial office is the business
advancements. For this reason, a group of offers promoters goes for all intents and purposes to
the field and performs the business advancement capacities. The business promoters help in
putting publications and other makeshift marketing materials. They need to go to the each retailer
of the range and need to enhance the shop with publications as well as buntings and different
deals advancement stuff that is given to him by the local office as per the as of now going on
advancement exercises.
PTC is extremely very much aware of significance of advancement and for this reason distinctive
battles are run occasionally. MC needs to take part/ support different advancement occasions to
actualize the concurred deals advancement arrange by misusing different special open doors in
the region. Taking after steps are taken by MC;
Participate in every single major Mela/Fairs in the region.
Identify arrange and compose unique occasions like games, competitions, shows,
sponsorship and musical shows.
Maintain contacts with neighborhood powers for arranging deals advancement exercises.
Real Functions
A territory Manager and all these region Managers are responsible to heads every zone Regional
trough. In every area there is a Merchandising Coordinator ( MC ) Who is in charge of all
promoting and exercises; he likewise gives approbation for diverse Schemes and exchange offers
with the assistance of concerning region chief.
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Product Housing
The work of promoting territorial office begins with the warehousing. Under the provincial
office north. Every product house is overseen by the distribution center chief who is going by the
senior dissemination officer. There are three distribution centers under the north locale. Taking
after are the real logistics capacities performed there.
Stock IN
At the point when a truck originates from the processing plant. The stock is down stacked and it
is loaded in by filling the structures ST 7 and STA. STA is the stock exchange counsel and it has
four duplicates. One with distribution center the other is with the processing plant and third goes
to the head office while the fourth one is the copy one. While the second real report is the
structure ST-7. It has the subtle elements of the expense paid and the assessment and custom
powers acknowledge it.
Requesting
Requesting happens by the accompanying three routines. A merchant to the stockroom mooring
spots request.
1- Mail
2- Phone
3- Self
Stock Out
With a specific end goal to get stock out of the stockroom. A DA/I ( Dispatch exhortation/
Invoice) is needed. The DA/I is the record that fills numerous needs. It is really an interest
receipt from the merchant. At the point when a merchant gives a request, the stockroom dock
prints out the DA/I and sends it to the bank. Bank checks the parity of the merchant and affirms
that the obliged sum is display in the specific record.
At that point Physically stock is exchanged to its destination. For this reason there are three
separate routines.
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1- Local stock out happens if a merchants comes and takes away the stock through its own
vehicle course of action.
2- Some stock is sent under the sending merchandise classification to the far flung zones of the
nation. For this reason organization contracts the trucks secretly.
3- The generally utilized technique is the course strategy to transport the stock out of the
distribution center to the wholesaler. Every distribution center runs 5 courses consistently that
conveys stock to its a large portion of wholesalers.
Deals Promotion
The following significant capacity performed by the provincial office is the business
advancements. For this reason, a group of offers promoters goes for all intents and purposes to
the field and performs the business advancement capacities. The business promoters help in
setting publications and other makeshift promoting materials. They need to go to the each retailer
of the territory and need to improve the shop with blurbs as well as buntings and different deals
advancement stuff that is given to him by the territorial office as per the as of now going on
advancement exercises.
PTC is exceptionally very much aware of significance of advancement and for this reason
distinctive crusades are run intermittently. MC needs to take part/ support different advancement
occasions to actualize the concurred deals advancement arrange by misusing different limited
time opportunities in the region. Taking after steps are taken by MC;
Participate in every major Mela /Fairs in the region.
Identify arrange and compose extraordinary occasions like games, competitions, shows,
sponsorship and musical shows.
Maintain contacts with neighborhood autSTRATEGIES FOR SALES PROMOTION
Identify the brand to be advanced keeping in view the business sector and shopper
profile.
Operate joint shopper advancement with melas, carnival and enchantment shows.
Consumer advancement like fortunate attracts and different tricks to be composed melas
through slows down.
Discount coupons plan relating to diverse brands is presented.
Scheme mindfulness is done through standards, publications, and through deals
promoters.
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Head Office favors the financial backing for the marketing and special exercises. The MC sends
the proposition to Head Office. In the proposition all the exercises are recorded identified with
the marketing and advancement supports. In the wake of seeing the proposition the Head Office
sends a last plan then MC works out his exercises as needs be.
Marketing
As we know special exercises assume a critical part in the disappointment or achievement of any
item. On the off chance that these are composed in a flawless way then it won't not be right to
say that the item for which these exercises have been planned, will get great position in the
psyche of individuals and the other way around. PTC is mindful of this and for this reason
administration plans periodical limited time battles in which Tele promotions print commercials
and marketing, and so on are incorporated. Likewise PTC conduct certain shows, shows and
competitions. In each locale there is a MC which is in charge of all promoting and special
exercises. He likewise needs to create deals advancement plans. The execution ought to be
completed in powerful and productive way in order to endeavor the business potential and
picture of brands of PTC therefore prompting the general gainfulness and long haul development
of organization. As has been portrayed that every district has one so PTC has four MC. MC
reports to the Regional Manager. He has a Merchandising delegate (Merchandising in Multan
Region) and a versatile film unit the number relies on the necessity of district.
Taking after are the obligations of MC;
Designs and actualize marketing and deals advancements arrangement.

Ensures the presentation of brands at each outlet with the assistance of its staff.
Checks the upkeep of marketing material of outlets.
Prepares decentralized correspondence plan for the marketing and advancement
exercises.
Planning.
Managing People.
Merchandising.
Promotion.
Trade Offers.
Public Relations.
23 | P a g e

Sales
44 billion
sticks
Capstain
24 billion
sticks
Revenue
90 million
Tax
Cigrette manufacturing firms pay almost 85 % of their income in form of taxes and that is a
major amount. There are 4 types of taxes
G.S.T
Health
Tax
Federal Excise
Duty
Advance Income
Tax
Marketing Activities
Marketing exercises are additionally called as BTL (Below The line) exercises. Most
discriminating assignment of a MC is to plan and execute and after that assess marketing
exercises in his locale. Marketing movement has a gigantic impact on the last purpose of offer
fight. MC dependably endeavors to enhance the PTC existing promoting material. Every single
24 | P a g e

marketing activitie which are completed by the MC are in accordance with "Exchange
showcasing" idea i.e. channel/ outlet inclination will be resolved on the premise of high offering
of own/aggressive brands on every one of the 80% tobacco volume offering outlet.
The promoting establishment is in view of division of brands volume, e.g. on the off chance that
a particular markets most noteworthy offering brand is Gold Leaf, then outlet in that market
won't be marketed with Embassy Kings or whatever other brand of PTC. Taking after are the
"sorts of promoting".
Makeshift MERCHANDISING
It incorporates blurbs, wobbles, stickers, mobiles and so on.
Changeless MERCHANDISING
It incorporates Fascia, Counter, Wall Clock, Canopy and so on.
OUT DOOR
The material put at lanes, streets are outside marketing. It incorporates MMTs, Hoarding Wall
Painting, bulletins and so on.
IN STORE
The marketing material put in side of a shop is brought in store promoting. It incorporates,
secluded tube, counters and so on.
OUT STORE
The material which is put out of the outlet. It incorporates Fascia, nameplate, Neo signs and so
on.
Arranging Function
25 | P a g e

The organization has an exceptionally extensive and composed framework to figure it deals each
moth. It is done through an OCF (Order Control Form). The OCF is a frame that is to be put
together by every merchant three times in a moth after like clockwork. This struc
Impermanent Merchandizing
It incorporates blurbs, wobbles, stickers, mobiles and so on.
Changeless Merchandizing
It incorporates Fascia, Counter, Wall Clock, Canopy and so on.
OUT DOOR
The material put at lanes, streets are outside promoting. It incorporates MMTs, Hoarding Wall
Painting, bulletins and so on.
IN STORE
The marketing material put in side of a shop is brought in store promoting. It incorporates,
secluded tube, counters and so on.
OUT STORE
The material which is put out of the outlet. It incorporates Fascia, nameplate, Neo signs and so
on.
Arranging Function
The organization has an exceptionally thorough and sorted out framework to conjecture it deals
each moth. It is done through an OCF (Order Control Form). The OCF is a frame that is to be
presented by every merchant three times in a moth after at regular intervals. This structures
ranges to the distribution center and afterward send to the local office. The territory trough gets
26 | P a g e

all the structures and afterward gauges the interest for the following moth and after that submits
the request that the amount of stock he will be requiring for the following month.
The Lotus Notes

The lotus notes make the last significant commitment to the effective and successful promoting.
The organization has its own Intranet. All the workplaces of the PTC in Pakistan are connected
with PCs to one another. This self Intranet of organization is exceptionally proficient and
organization has its own tweaked electronic information exchange system as programming called
"Lotus Notes" With the Help of this product and systems administration , any individual can pass
on his thoughts, most recent data or records to any piece of the organization with in only ten
minutes. The delicate duplicates of lotus notes are all that much the part of organization's
archives and are similarly critical and legitimate as the papers in highly contrasting.
Contextual analysis Pakistan Tobacco Company

1)
Are you included in direct dispersion or procured an outer gathering ?
Ans : Our Company Do not straightforwardly convey the item , we contracted a wholesaler and
this is the obligation of the merchant to accessible our item in a business sector .
2)
Who are your target Market ?
Ans : We Targeted the particular age bunch . The Age Group is lie between 25 to 40 year old .
3)
Do You set cost for wholesalers or they charge any cost ? What edge you offer ?
Ans: Yes , We set the cost of our item , we give the cost to our wholesaler and we entirely let
them know you must offer on that cost . Everything including cost is chosen by ptc . Furthermore
Government least value confinements are there , in light of the fact that they debilitate the
tobacco . Wholesaler edge is close to home we can't let you know , edge is low however our
deals are high .
4)
Do you utilize SEC for your image situating ?
27 | P a g e

Ans : Yes we Segmented our business sector into three Different classifications . Our First
classification is for Elite Class , we offer Premium Product for this class . furthermore, we
likewise offer the item for the midlle class furthermore for the lower class
5)
Who are your key records ? Also, their turnover ?
Ans : Our Key records are the same as the FMCG,s organization . Also, we can't specifically
disperse our item to the Key records we tell our wholesaler's who accessible the item on the key
records . They scarcely contribute in our deals roughly 7 to 10 % .
6)
Do you Pay key records for Shelf space ?
Ans : Yes , we pay for the Shelf Space

7 ) What is most imperative for your appropriation system ?
Ans : Weighted entrance is the critical for our organization .
8) Have Distributors contract with you ?
Ans : Yes , We have an agreement with Distributor , Each and everything is composed in the
agreement . What's more, Distributor is controlled by Ptc . Wholesaler and business sector
execution is seen by ptc themselves in business sector .
8) Who are your rivals ?
Ans : 2 MNCS work in our nation including PTC , other is Philip Morris . be that as it may in
Pakistan P.T.C is business pioneer and just about 50 to 55% piece of the pie catch by ptc . In
premium Product there is no contender on P.TC. P.T.C Only face rivalry in VFM and Low class .
Furthermore the enormous risk for the P.T.C is obligation not paid items in light of the fact that
they effortlessly accessible in a b=very modest expense for the buyer , and its not a feasible for
the P.T.C to keep up his expense contrast with his rivals .
9)
Distribution Model of PTC?
10 ) How your Distribution is Having focused edge ?
28 | P a g e

Ans : Distribution is gainful in light of the fact that PTC is business pioneer in all items . In Last
2 Sec Category the benefit of the items are the same as contenders is offering . In any case in
Premium there is no contender is there and we concentrate on the privileged and the ROI is high
for this class , That's the reason we have aggressive edge on our rivals . We have very nearly 50
to 55 % piece of the pie . Furthermore, this is likewise a game changer of our organization
11 )Who bear the Transportation cost ?
Ans : Transportation expense is facial hair by organization just till wholesalers premises .
PTC select Distributors on the accompanying bases :
1)
Sustainable
Practical for the organization

2)
Profitability
Is organization increase more Profit in the event that he connect with his clients with merchants.
3)
RTM
Practical RTM bases on
Reach
Relevance
Productivity
BCG Matrix for P.T.C
29 | P a g e

RELATIVE MARKET SHARE (CASH
GENERATION)
HIGH
MARKET
GROWTH
RATE
HIGH
STARS
LOW
CASH COW
QUESTION
MARK
DOG
The above table shows the BCG matrix for the Pakistan tobacco company. On horizontal axis
there is market share for the company and market growth is on the vertical axis.
Star
Benson and Hedges is the star for the P.T.C because it has high market share as well as high
market growth. So this product has a lot of growth potential and will be more profitable for the
company if P.T.C put more effort to sell the product more in the market.
Cash cow
30 | P a g e

Capstan is the cash cow for the P.T.C because it has high market share but its market growth is
low. That means product is not growing. There is no need for the P.T.C to put additional effort on
this product all they need to do is to make the product available in the market and enjoy profits.
Question mark
Gold Flake is question mark for P.T.C because it has low market share but its growth is high.
This is just because a lot of people living in the villages are purchasing this product. There is a
growth potential thats why there is a need to put significant effort in order to increase the sales
and market share as well.
Dog
Embassy is placed as a dog for P.T.C because it has low market share and low growth as well.
This is because people stop purchasing Embassy as some old people were used to buy this as a
substitute of Hukkah. P.T.C need to make a decision whether to stop producing Embassy or not.
Our Visit
We have visited P.T.C office that is in Lahore DHA and distributors office that is in Dharampura.
Trade
Executive
Distributi
on
Manager
Distributo
r
31 | P a g e
Mr.
Akmal
Mr.
Shafeeq
Dogar
Sundarda
s road
Dharampu

Mr Akmal is the Trade executive that is from the the company. He works under the distributor.
He keeps a check on the activities in order to make sure that the company policies are being
followed. There are two distributors both are brothers.
Allied Distributor.
Sheikh Muhammad Illayas
Both have their territories defined and trade executive is there to make sure that there is
no breach of territory and everyone is performing under their territory. Our major concern
in the report is on the Sheikh Muhammad Illayas. How he is handing the distribution of
the P.T.C. We have visited their office at Dharampura. They have enough facility
available to perform the operations and too distribute the product effectively and on time
at every corner in Lahore.
Total employees
38
Rickshaws
Bikes
20
Vans
10
Stock ordering by Distributor

Decision about when to order the stock is made on the basis of two decisions
On hand stock
Distributor checks whether enough stock is available or not. If enough stock is not available in
the inventory then they order stock from the company in order to meet the daily demands on
different shops in Lahore. They set the minimum inventory level and whenever inventor falls
beyond that level distributors order the inventory.
Expectation of price increase
32 | P a g e

Whenever the distributor feels that there is chance of price increase in the future he order more
inventory in order to earn more profits because distributor have to make payment on the spot and
there is no credit given by the company.
Key performance indicators

There are certain performances measures on the basis of which performance of the distributors
are measured. Following are tree of the key performance indicators.
Sales.
Sales of distributors are measured each month and quarterly in order to make shore that
distributor is putting his effort to make sales. If sales are not up to the mark different types of
questions are asked from the distributors in order to know whether its the fault of distributor or
there is certain problem in their product.
Visits
Sales are also measured on the basis of no of visits by the employees of distributors to each shop
in their territory and also no of productive visits are measured. Productive visits means that they
get order from a shop on a visit, otherwise visit became un productive.
Coverage
Coverage means the territory in which the distributor is performing operations is covered or not.
In order to increase the coverage distributor have to increase the no of employees and assign
each employee certain area and made him responsible for that region.
Research
More consumption in summer.
Research is conducted and it tells that consumption of the cigarette increases in summer due to
the fact that, In summer people love to go outside and stand at pan shop and enjoy cold drink
with cigarette.
33 | P a g e

Problems
PTC follows a very standardized system. To find a problem is bit difficult but besides that every
business had anything which goes wrong. The problem which observe is as follows.
PTC gave the task of indoor promotion to the third party contractors who perform that
task. But what they do, they don not perform it honestly. They just came to the retailers,
sit with them and ask them if you receive any call from the company then let them know
that they are in the field and performing their task or done their job.
Its result in company free expenditure and did not get any return from that. So, this is one of the
problems which we analyze by observing the retailers and by interviewing them.
Recommendations
By analyzing the above, we recommend them that they should solve this indoor promotion
problems by following the one of these suggestions.
34 | P a g e
PTC should do this task by own yourselves. Because PTC is spending too much money
on third party contractors for indoor promotion. If they hire its own sales force and spend
this money on them then they can perform this task more efficiently through its own sales
force.
Besides the above, they should give this task to its distributors because they have already
established sales force which is generating demand for them. If they gave this additional
task to its sales force and increase their compensation or PTC should provide incentive to
distributors if they perform this task then they can perform it efficiently.
By following one of these suggestions, PTC can mitigate this indoor promotion problem.
35 | P a g e

Pakistan Tobacco Company Analysis

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Pakistan Tobacco Company

LAHORE SCHOOL OF ECONOMICS

Sales Force Management