Business Plan 2012 TM&D Peshawar Area

BUSINESS DEVELOPMENT PLAN 2012

KOHAT MARKET

Distribution: Al-Farooq Traders Owner: Haji Saleh Area: Peshawar Region: North

Business Plan 2012 TM&D Peshawar Area

PTC VISION
1st choice for every one

TM&D VISION
To achieve global leadership of the tobacco industry

TM&D MISSION
Excite shoppers to buy and customers to sell our brands in support to the growth strategy

Business Plan 2012 TM&D Peshawar Area

Prologue
Kohat market is around 70km from Peshawar. Total industry volume is around 15 million per month. PMP is market leader with sales volume of around 7 million, PTC average monthly volume is 5.5milllion. ITBs and others contribute around 2.5million. Kohat market has got immense business potential but due to volatile situation of law and order especially in villages side, the businesses are suffering a lot. Other major industries of this market are textile, and cement but agriculture being the major occupation of the area. Kohat market shares border with Peshawar, Hangu, Karak, Nowshera and Attock. We can considerably increase the market share in the high, medium and low categories in this area by focusing and reacting to the market trends and changes occurring there. There is a strong need to strengthen the distributor network for this market as our Key competitor PMP is quit strong in this market. Major brands of this market are Gold Leaf, CbPMO, Capsten Filter, Morven Gold and Diplomat. Pine and press are other two brands which are growing. VBPs focus is required on coverage, as there are considerable gaps in distribution network. Also VBP has to improve his financial muscle for achieving committed targets.

Brand/Family Dunhill Family B&H Family Gold Leaf Family Capstan by Pall MallFamily Capstan Family Wills Family Gold Flake Family Wills King Family Embassy Family Total 3

Co.plan 0 260 16268 27777 13887 0 8889 138 100 67319

SOP 0 351 18699 27119 12397 0 12106 82 106 70860

SPLY 0 241 16956 15862 14890 0 11841 169 120 60079

Act. '10 40 337 19563 23430 13200 0 9085 40 100 65795

+/-% Co Plan 0% 30% 20% -16% -5% 0% 2% -71% 0% -2%

+/SOP 0% -4% 5% -14% 6% 0% -25% -51% -6% -7%

+/SPLY 0% 40% 15% 48% -11% 0% -23% -76% -17% 10%

Business Plan 2012 TM&D Peshawar Area

Business Plan 2012 TM&D Peshawar Area

Table of Contents
1.OBJECTIVE.................................................................................................................................................................1 CRITICAL SUCCESS FACTORS (CSF)....................................................................................................................1

A) DISTRIBUTION STRATEGY AND PLANNING.................................................1

Rural Coverage...................................................................................................................................................2 Wholesale Coverage...........................................................................................................................................3

B) SUPPLY CHAIN MANAGEMENT..............................................................3

Volume ...............................................................................................................................................................4 DD, VDD,Whole Sale Ratio................................................................................................................................4 Market Share.......................................................................................................................................................4 Stock Cover Days (on Hand)...............................................................................................................................5

C) CUSTOMER SERVICE........................................................................6 D) RESOURCE MANAGEMENT..................................................................7 E) INFORMATION MANAGEMENT (DOCUMENTS, REPORTS,

AND

RETURNS )..................8

Business Plan 2012 TM&D Peshawar Area

1.

OBJECTIVE
To be number one in terms of overall business functionalities, minimize market share difference with key competitor, and produce double digit growth versus SPLY!

CRITICAL SUCCESS FACTORS (CSF)

The performance objectives will cover following critical success factors: o o o o o Distribution Strategy and Planning Supply Chain Management Customer Service Resource Management Information Management Detailed Descriptions of various elements within each CSF, and their measures of success (KPIs) are outlined below:

A) DISTRIBUTION STRATEGY AND PLANNING

Description To devise such a strategy in which maximum universe would be covered. Availability of key brands should be must at every covered outlet. Measures of Success Availability of Drive brands Proper DD & VDD beats Clear and consistent pricing communication to trade 100% thrice weekly coverage on volume class 1 to 7 outlets.

Gap Analysis. Availability of key brands Some new shops has not been added to DD & VDD beats Frequency to volume class 1-7 is not 100% thrice. .

Current Status

Agreed Actions

Deadlines

Key brands Unproductive outlets of Ongoing unavailability in certain key brands would be outlets listed and salesmen is
1

Business Plan 2012 TM&D Peshawar Area

directed to make brand available there and strong follow up DD & VDD beats Some new opened 30th March revision outlets to be added to DRs beats and closed outlets to be removed. Visit frequency of DRs Additional salesman to to volume 1-7 class is be hired for DD Immediate not 100% thrice a week.

Urban Coverage Volume Class 1-7 Outlets Volume Class 1 2 3 4 5 6 7 8 9 Total RCM outlets 4 3 16 16 18 146 286 94 583 Covere d outlets 4 3 16 16 18 146 250 75 528 Current Frequency Thrice Thrice Thrice Thrice Thrice Twice Twice Twice Covere d Plan 2012 Plan Frequency Thrice Thrice Thrice Thrice Thrice Thrice Twice Twice 55

36 19

Rural Coverage Cover ed Villag es 35 35 Freque ncy Plan 2012 Once Villa ge Outle ts 321 321 80% villa ge Outl et 145 145

Total

Total Villag es 51 51

80% Villag es 18 18

80% Cover ed 18 18

Covera ge Plan 10 10

Business Plan 2012 TM&D Peshawar Area

Wholesale Coverage Total Wholesaler 14 Covered Wholesaler 12 Coverage Plan 2

B) SUPPLY CHAIN MANAGEMENT

Description Look after and manage volumes by keeping control on all channels and emphasis on DD and VDD a lot more. Measures of Success Forecasting of sales Proper follow up of lifting plan Required funds availability DSD & VDSD Volume Growth over wholesale. SOP

Gap Analysis. Issues Lifting plan not 100% followed on certain occasions. Lack of funds availability noticed. Wholesale share is higher than DD,VDD Irregularities in SOP achievement Current Status Lifting plan oftenly changed and agreed numbers on particular date not achieved without any solid reason. Funds shortage for stock been noticed. Agreed Actions Deadlines Each and every lifting will be strongly checked. No change in Immediate lifting date or number will be done without any solid reason. VBP to generate more Ongoing funds in order to achieve every month SOP.
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Business Plan 2012 TM&D Peshawar Area

Strong focus on Wholesale as compared to DD,VDD SOP not achieving on regular basis

Increase DD,VDD share Immediate as compare to wholesale. Strong check on number committed per Ongoing lifting. SOP achievement priority at utmost.

Volume

Family B&H Dunhill JPGL CBPM AY SX Total

Volume 2011 332 40 19563 22966 13200 9085 65186

Plan 2012 500 70 20500 28500 13500 9200 72270

% age Growth 51% 75% 5% 24% 2% 1% 11%

DD, VDD,Whole Sale Ratio Channel DD VDD WS Current 34 28 38 Target 2012 35 32 33 % age Growth 3% 14% -13%

Market Share
Share PTC PMI Current Share 36% 46% Target 2012 40% 43% % age Growth 11% -6%
4

Business Plan 2012 TM&D Peshawar Area

Others

16%

15%

-6%

Stock Cover Days (on Hand)

Brand B&H JPGL 20 JPGL S 20 CBPM 20 AY SX 20 Total ECD 40 1900 30 2300 1100 500 5870 7 Days Reserve 9 443 7 537 257 117 1370 Value Reserve 32,526 1,454,970 22,973 746,155 540,851 162,194 2,959,668

Business Plan 2012 TM&D Peshawar Area

C) CUSTOMER SERVICE
Description Take retail and wholesale channels onboard by building strong relationship through solid communication and to fulfil their any need on time and in a much better way than the competition. Measures of Success Regular meeting session with retailers and wholesalers like trade events. VBP strong market intelligence and visit. Timely removal and replacement of damaged goods from the market. Gap Analysis. W/Sale and retailers session needs to be started. Regular market visit of VBP to retailers and wholesaler. Complaints noticed regarding late pick up of D&D from market.

Current Status

Agreed Actions to once be a

Deadlines April

Retail and wholesale Sessions session are missing arranged quarter. No regular visit of VBP.

market VBP will regularly visit retailers and wholesalers for market feedback and solve any of their issues. D&D stock often D&D will be picked picked late instantly.

April

Immediate

Business Plan 2012 TM&D Peshawar Area

D) RESOURCE MANAGEMENT
Description Manage and utilize all resources to an optimum level in order to create synergistic effect. Measures of Success

Average Salesmen load factor is 60 outlets/day per salesman. Salesmen mobility in accordance with job requirements. Proper coverage of beats regularly Training & development Proper communication

Gap Analysis. No training or development session. Absenteeism of salesmen Low productivity

Current Status Agreed Actions Deadlines Lack of training and Arrangement of session developing programs regarding improving April communication skills, selling skills etc Low productivity level Improving productivity by listing out all the Ongoing unproductive outlets and directing salesmen to make them productive

Business Plan 2012 TM&D Peshawar Area

E) INFORMATION MANAGEMENT (DOCUMENTS, REPORTS,

Description

AND

RETURNS)

Accurate, credible and timely information recording and sharing in order to produce better business results. Measures of Success planning processes (coverage, cycle planning, salesmen beats, lists, etc) Accurate and timely maintenance of all necessary documents and reports (SD-9, SD-20, claims register, merchandising register, OCF, A1) Merchandising record timely updated. Salesmen level information in terms of total calls, productivity . Gap Analysis. Updated merchandising record at distribution is missing. Late claims submission A lot of mistakes in claims. SD-9 not regularly updated at distribution. Absence of salesmen FSS. Current Status Merchandising record missing at distribution end. Claims are always submitted late or by asking them to prepare it. Irregularities in updating SD-9 at distribution. Agreed Actions Deadlines Presence of proper and updated record of 5th April merchandising Every 2nd of the month to be the deadline for a Ongoing particular month claim submission. Every 5th of a month to be the deadline for a Ongoing particular month SD-9
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Business Plan 2012 TM&D Peshawar Area

Often Absence of FSS

updating. Preparing of FSS to be must for every salesman with no excuses.

Immediate

Business Plan 2012 TM&D Peshawar Area

Urban unproductive outlets

S.no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Market kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat outlet Malaika G/S Pak G/S Abdul rehman Sabir G/S Noor khan Unique G/S Jan Mohammad Unique G/S Imran samdani Zeeshan Alam G/S Najeeb Ullah Riaz Afridi G/s New marwat Bukhari G/S Ajmal Ludo pan shop Niqab G/s Abdul Shakoor Mer momin Adress KDA sec 9 Bannu road shino khel old adda old adda old adda old adda pindi road pindi road pindi road Jungle khel OTS road pindi road pindi road Bannu road peshawar road Hangu road King gate pindi road pindi road peshawar road

*These outlets will be immediately make productive. Each outlet has been highlighted to respective DR.

Rural unproductive Outlets:

S.no 1 2 3 4 5 6 7 8 9 10 11 12 Market kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat outlet Niaz Habib Moin G/S Noor zaman Zahir shah Majeed G/s Mohammad Ali Dilawar Yousaf G/s Marhaba Iqbal Rauf KR Adress billitang billitang Dara adam Dara adam Dara adam Dara adam Terri billitang billitang Lachi Lachi indus 1

Business Plan 2012 TM&D Peshawar Area

13 14 15 16 17 18 19 20 21 22 23 24 25 26

kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat kohat

Zam Zam Hotel Payo KR Hameed G/S Nabi Gul KR Khan Zada G/S Wazir G/S Juma Khan G/S Riaz G/S Javed G/S Ayub Moodi Ellaid Habib Idress

highway indus highway indus highway shakardarra shakardarra shakardarra shakardarra shakardarra hangu pathak hangu pathak hangu road hangu road hangu road hangu road hangu road

*These outlets will be immediately make productive. Each outlet has been highlighted to respective DR and will be properly checked after.

Width Enhancement
Market visit: Unproductive outlet in any brand will be noted during my market visit. These outlets will be immediately highlighted to concern DR of that beat and also to the distributor. Deadline for any such case will be the immediate visit of DR to that beat. (On going) Issue/return stock check: On daily basis each and every DR issue/return stock will be checked and if particular brand is not carried enough by DR, he will be directed to bring enough stock of each brand so market can be properly feed up. (On going)

Business Plan 2012 TM&D Peshawar Area

Enhancing Salesmen productivity level: Productivity of each salesman to be checked daily. Each salesman has to properly cover his beat. And on return check every DR FSS, discuss and make improvement if any DR productivity is continuously coming on low side. Proper follow up will be made sure. (On going) Visiting 80% volume villages 80% volume villages will be regularly visited on weekly basis. Unproductive outlet in any brand will be noted. These outlets will be immediately highlighted to concern DR of that beat and also to the distributor. Deadline for any such case will be the immediate visit of DR to that beat. (Immediate)