internship report_iba_copy
TRANSCRIPT
Marketing Strategies of BATB in the Chittagong Region:
Feni Market in Focus
1
FENI
Marketing Strategies of BATB in the Chittagong Region: Feni Market in
Focus
Submitted to
Syed Munir Khasru
Assistant ProfessorInstitute of Business Administration
University of Dhaka
Submitted By
Numayer Alam
Roll No.57BBA 8th Batch
Institute of Business AdministrationUniversity of Dhaka
Submitted on
6th June 2004
2
06 June 2004
Mr. Syed Munir Khasru
Assistant Professor
Institute of Business Administration
University of Dhaka
Sub: Letter of Transmittal
Dear Sir,
Attached please find the internship report titles “Marketing Strategies of BATB in the
Chittagong Region: Feni Market in Focus”.
I have done my internship in British American Tobacco Bangladesh (BATB) during a 3
month attachment period. I did the internship study as a part of my job as territory officer.
The report focuses on the marketing strategies under a special project of BATB in the
Chittagong region. I have explained all the reasons and philosophies behind the activities
in Chittagong and also formulated activity plans for the Feni market which is being
implemented.
I hope the report meets your expectation. I will be glad to answer any queries regarding the
study and report.
Thanking You
Sincerely,
Numayer Alam
Roll No.57
BBA 8th Batch
Institute of Business Administration
University of Dhaka
3
Acknowledgment
I am very grateful to my faculty advisor Mr. Syed Munir Khasru for helping and guiding
me a lot with the project. All through out the preparation of the report he has been
extremely supportive.
I would also like to thank my organization supervisor Mr. Sajjad Alam, Area Manager
Comilla, British American Tobacco Bangladesh for being a perfect mentor. He was always
eager to help and make me understand the practical implications of different activities.
Lastly, I want to thank the following persons for helping me in many situations regarding
the project activities-
Mr. Shahzad Hossain Jishan, Territory Officer, Comilla
Mr. Sanzid Alvi Ahmed, Territory Officer, Chowmuhoni
4
Executive Summary
British American Tobacco Bangladesh (BATB) is the one of the leading multinational
companies in Bangladesh and is the market leader in the tobacco industry. It leads the
industry with more than 50% share in the cigarette market. BATB manufactures and
markets some of the best intentional cigarette brands like Benson & Hedges, Rothmans,
John Player Gold Leaf and Capstan. They also have some local brands like Star Filter and
Scissors Filter. Among these brands JPGL and Star Filter are the driving brands for the
company. BATB is currently giving a special focus in these two brands regarding their
marketing activities.
This report comprises of the special and innovative marketing strategies applied by the
BATB in the Chittagong region of their trade marketing operation. A special focus has
been given to the activities in the Feni distribution market. In this regard, the detail
activities of Project Topedo, initiated by the marketing department of BATB, have been
described in this report.
The report starts with an overview of the tobacco industry of Bangladesh. The industry is
divided into two major markets-Biri Market and Cigarette Market. BATB operated
only in the cigarette market. Being the leader in the cigarette market, BATB face
significant competition only in the 1 taka segment from companies like Dhaka Tobacco
Industries and Alpha Tobacco Industries. BATB’s brand Star Filter shares the 1 Taka
segment with brands like Navy and Senor Gold.
BATB has a very systematic organizational structure with eight major departments-
Leaf, Marketing, Operations, Finance, Corporate and Regulatory Affairs, Human
Resource, Information Technology and Legal- with Leaf and Marketing being the two
most important departments. The marketing department works in twofold- Brand
marketing and trade marketing.
5
Geographically, the trade marketing department operates in six regions- Dhaka North,
Dhaka South, Chittagong, Syllet, Bogra and Khulna. Among all these regions Chittagong
is the biggest region in terms of size and population. It is also by far the biggest region
in terms of industry contribution as the region contributes 29% of the total national
cigarette industry. Currently, Chittagong region is performing below par by holding a
38% market share as compared to BATB’s national share of around 50%. As a result
BATB has taken a special project in January 2004 named Project Torpedo with a view to
improve the business performance of the Chittagong region.
Project Torpedo focuses on some new marketing initiatives towards the target
consumers of the Chittagong region. These marketing activities will be implemented in
those markets in the Chittagong region where BATB has 30%-50% market share with a
view to get the market leadership by achieving over 50% share. Feni is such a market in
the Chittagong region. The project comprises of a set of marketing activities in specific
identified markets, to exploit maximum growth potential for BATB. Major issues for
BATB in these markets are weaker performance of SRF vs. Navy and slow up-
trading rate to John Player Gold Leaf (JPGL). Project Torpedo will address these
issues and build the base for sustainable growth.
Feni is the kind of distribution market where BATB has around 35% market share.
There is a very distinct opportunity for BATB to gain the upper hand in this market. The
two main brands for BATB in Feni are JPGL and Star Filter. There are different set of
marketing activities for both brands in specific target areas of the market.
JPGL activities include consumer contact, consumer engagement programs, JPGL brand
world experience through caravan, trade related activities etc. Star Filter activities include
consumer contact, consumer engagement programs, trade competition, Star World
experience, trade related activities etc. All these activities are meant to enhance and
ensure brand loyalty, conversion, up gradation and brand awareness. Overall, the
ultimate objective is to increase volume. Under Project Torpedo, the average monthly
6
volume target of Feni market for JPGL and Star Filter is 12.2 million and 9 million
sticks respectively.
So far the impact of Project Torpedo in Feni is quite good. Till April, JPGl has
successfully reached the targeted volume in January and March. The progress for JPGL
is very promising and it seems that it will achieve the target at the end of the year. For
Star Filter the situation is not so good yet. So far during the four months, it failed to reach
the target in any month. It seems that it will gain volume in the second half of the year.
7
Table of Contents
Chapter 1: The Research Study 01
1.1 Introduction…………………………………………………………………….…...011.2 Background of the Study……………………………………………………...……011.3 Scope……………………………………………………………………………….021.4 Objectives…………………………………………………………………………..021.5 Methodology………………………………………………………………………..031.6 Limitation…………………………………………………………………………..03
Chapter 2: The Tobacco Industry 04
2.1 Nature of the Industry……………………………………………………………...042.2 Industry Segmentation……………………………………………………………..042.3 Competitive Scenario in the Cigarette Market………………………………….….052.4 Industry Facts and Figures…………………………………………………………06
Chapter 3: Corporate Profile and Background . 07
3.1 Historical Background……………………………………………………………...073.2 BAT & BATB: The Relation……………………………………………………….083.3 Structure of BATB………………………………………………………………….093.4 Ownership Status of the Company…………………………………………………093.5 BATB: At a Glance………………………………………………………………...103.6 Physical Infrastructure……………………………………………………………...113.7 Human Resource & Unionization………………………………………………......123.8 Organizational Directions and Philosophies………………………………………..13
3.8.1 Strategic Directions……………………………………………………....133.8.2 Corporate Principals and Values…………………………………………133.8.3 Environmental, Health, and Safety Policy and Afforestation Program......14
3.9 SWOT Analysis…………………………………………………………………….15
Chapter 4: Organizational Structure 16
4.1 The Departments…………………………………………………………………...164.2 The Organogram…………………………………………………………………....174.3 Production Department……………………………………………………………..17
4.3.1 Existing Production Facilities…………………………………………….174.3.2 Annual Cigarette Production……………………………………………...184.3.3 Production Process………………………………………………………..184.3.4 The Process Diagram……………………………………………………...204.3.5 Production Department Organogram……………………………………...21
4.4 Leaf Department…………………………………………………………………….224.4.1 Green Leaf Threshing Plant……………………………………………….22
8
4.4.2 Tobacco Processing……………………………………………………….244.4.3 The Leaf Department Organogram………………………………………...25
4.5 Finance Department……………………………………………………………….…264.5.1 Functions of Finance Department……………………………………….…264.5.2 The Structure of Finance Department……………………………………...26
4.6 Human Resource Department………………………………………………………..274.6.1 Activities of Human Resource Department………………………………..274.6.2 The Structure of Human Resource Department……………………………28
4.7 Marketing…………………………………………………………………………….294.7.1 The Structure of the Marketing Department……………………………….294.7.2 Brand Marketing………………………………………………………...…294.7.2.1 Brand Marketing Organogram……………………………………….…..314.7.3 Trade Development Team (TDT)………………………………………….314.7.4 Trade Marketing and Distribution (TM&D)…………………….…………324.7.4.1 TM&D Mission………………………………………………………..…334.7.4.2 TM&D Structure…………………………………………………………334.7.4.3 Trade Marketing Operation………………………………………....……35
4.8 Information Technology……………………………………………………………..394.8.1 IT Organogram…………………………………………………………….39
4.9 The Corporate & Regulatory Affairs Department (CORA)…………………………404.9.1 Structure of CORA………………………………………………………...404.9.2 Code of Conduct for Tobacco Marketing……………………………….…414.9.3 Activities of CORA………………………………………………………..42
Chapter 5: The Brand Portfolio 44
5.1 International Brand (IB) ……………………………………………………………445.2 Domestic Value for Money (DVFM)…………………………………….…………46
Chapter 6: Overview of the Chittagong Market 47
6.1 Geographical spread………………………………………………………………...476.2 Administrative Structure: Area & Territory ……………………………………..…486.3 Market composition………………………………………………………………...496.4 Industry Growth………………………………………………………………….…506.5 Growth in Different Price Segment…………………………………………….…..52
6.5.1 Low Segment………………………………………………………….….526.5.2 Medium Segment…………………………………………………………536.5.3 Premium Segment………………………………………………………...53
6.6 Market and BATB’s Relative Share…………………………………………….….546.7 Market Growth Potential for BATB…………………………………………….….546.8 Chittagong Regional Scenario: Findings at a glance…………….............................576.9 Action Plan for Gaining Market Leadership……………………………………….58
Chapter 7: Project Torpedo 59
9
7.1 Project Overview…………………………………………………………………597.2 Vision of the Project………………………………………………………..……597.3 Objectives for 2004…………………………………………………………..…..607.4 Strategy…………………………………………………………………….…….607.5 Scope of the Project…………………………………………………………..….627.6 Framework………………………………………………………………….……62
Chapter 8: Feni Distribution Market 63
8.1 Market Overview……………………………………………………………...….638.2 Sales Performance……………………………………………………………..…63
8.2.1 Average Monthly Sales by Brand…………………………………...….638.3 Competitive Scenario in Feni ………………………………………………...….658.4 Project Torpedo in Feni……………………………………………………..……65
Chapter 9: JPGL Activity Plan for Feni 67
9.1 Volume Target………………………………………………………………..…..679.2 Target Markets………………………………………………………………..…..679.3 JPGL Specific Strategy ………………………………………………………..…679.4 Activity grid9.5 Detail Activity for JPGL…………………………………….….679.5 Detail Activity for JPGL……………………………………………………….…68
9.5.1 Consumer activity………………………………………………..……..689.5.2 Administration of the Activities…………………………………….….709.5.3 Consumer Contact ………………………………………………….….709.5.4 HoReCa campaign………………………………………………….…..719.5.5 JPGL Caravan……………………………………………………….….719.5.6 Festival Celebration ……………………………………………………749.5.7 Trade related activity…………………………………………………...749.5.8 Merchandising………………………………………………………….759.5.9 Field force Reward……………………………………………………..75
9.6 Activity Progress…………………………………………………………………75
Chapter 10: Star Filter Activity Plan for Feni 76
10.1 Volume …………………………………………………………………………7610.2 Target Markets…………………………………………………………………..7610.3 Star Specific Strategy………………………………………………………… ...7610.4 Activity grid……………………………………………………………………..7710.5 Detail Activity Plan for Star…………………………………………………….78
10.5.1 Consumer Contact…………………………………………………….7810.5.2 Administration of the Activities………………………………………7910.5.3 HoReCa campaign…………………………………………………….7910.5.4 Star World……………………………………………………………..8010.5.5 Additional POS campaign……………………………………………..8010.5.6 Trade Related Activity………………………………………………...8110.5.7 Merchandising…………………………………………………………8210.5.8 Field Force Competition……………………………………………….83
10
10.6 Activity Progress………………………………………………………………...83Chapter 11: Result, Analysis and Findings 85
11.1 Sales Performance of JPGL…………………………………………………….8511.1 1 Sales Performance of Target Hubs…………………………………...86
11.2 Sales Performance of Star Filter………………………………………………..8611.2.1 Sales performance of Target Hubs…………………………………...87
Chapter 12: Strategic Implication of Project Torpedo for BATB 91
12.1 Implications for Chittagong Market……………………………………………9112.2 Feni: Key Strategic Market for Project Torpedo……………………………….92
Chapter 13: Recommendation and Conclusion 93
13.1 Recommendation……………………………………………………………….9313.2 Conclusion……………………………………………………………………...94
Take Aways…………………………………………………………………………95
Annexure: Route Wise Sales Analysis of Feni Market
11
List of Tables
Table I: Price Segmentation of Cigarette Industry…………………………………….05Table II: Competition in Different Price Segment…………………………………….06Table III: Ownership status of BATB…………………………………………………10Table IV: BATB at a Glance…………………………………………………………..11Table V: Raw Material Procurement Sources…………………………………………18Table VI: Annual Cigarette Production………………………………………………..18Table VII: Volume Class Outlets………………………………………………………32Table VIII: The Brands of BATB……………………………………………………...44Table IX: Chittagong Area Details…………………………………………………….48Table X: Comilla Area Details………………………………………………………...48Table XI: Growth Percentage of Different Market…………………………………….51Table XII: Segment Growth and Volume in Chittagong………………………………52Table XIII: Segment Size and Market Share…………………………………………..54Table XIV: Volume contribution by Market type……………………………………...55Table XV: Growth trend by Market type………………………………………………56Table XVI: Offtake Growth trend of SRF and Navy…………………………………..56Table XVII: Project Torpedo result expectation……………………………………….60Table XVIII: Monthly Sales Trend……………………………………………………..63Table XIX: Monthly Sales Performance of Feni ………………………………………85Table XX: Monthly Sales Performance of JPGL Hubs………………………………...86Table XXI: 2004 Monthly Sales Performnace of SRF…………………………………87Table XXII: SRF Sales of Chagalnaiya………………………………………………...88Table XXIII: SRF Sales of Sonagazi…………………………………………………...88Table XXIV: SRF Sales of Lemuya…………………………………………………….89Table XXV: SRF Sales of Kajirhat……………………………………………………..90
List of Figures
12
Figure 1: Relation between BAT and BATB…………………………………………08Figure 2: Departments of BATB…………………………………………………….. 16Figure 3: Organizational Hierarchy of BATB……………………………… ………..17Figure 4: Production Process Diagram………………………….…………… ………20Figure 5: Production Organogram…………………………………………… ……....21Figure 6: Leaf Organogram…………………………………….………… ………….25Figure 7. Finance Organogram………………………………….………… …………26Figure 8: HR Organogram………………………………………..……… …………..28Figure 9: Marketing Department Structure………………………………..…… …….29Figure 10: Brand Marketing Organogram……………………………….…… ……...31Figure 11: Trade Marketing Organogram………………………………………… …34Figure 12: Trade Marketing Operational Hierarchy…………………… ……………35Figure 13: Channel of Distribution………………………………………… ……….37Figure 14: IT Organogram……………………………………………………………39Figure 15: CORA Organogram……………………………………………… ………41Figure 16: Geographical area of Chittagong Region…………………………………47Figure 17: Market Composition………………………………………………………49Figure 18: Price Segment in Different Regions………………………………………49Figure 19: Competition in Different Region………………………………… ………50Figure 20: Growth Trend of Chittagong Market……………………………… ……..50Figure 21: Growth of Different Segment in Chittagong…………………… ………..51Figure22: Volume Contribution – Yellow markets are the biggest ………… ………55Figure 23: Sales Trend of Feni……………………………………………… ………64Figure 24: Caravan layout……………………………… ……………………………72Figure 25: Trade Related Activities……………………… ………………………….74Figure 26: JPGL 2004 Sales Trend of Feni………………… ……………… ……….85Figure 27: Sales Trend of JPGL in Target Hubs…………… ………………… …….86Figure 28: Sales Trend of SRF in 2004……………………………… ………………87Figure 29: SRF Sales Trend of Chagalnaiya…………………………… ……………88Figure 30: SRF Sales Trend of Sonagazi……………………………… …………….89Figure 31: SRF Sales Trend of Lemuya……………………………… …… ………..89Figure 32: SRF Sales Trend of Kajirhat……………………………… ……… ……..90
13
Chapter 1: The Research Study
1.1 IntroductionThe report is tilted “Marketing Strategies of BATB in the Chittagong Region: Feni
Market in Focus”. The research is done as a part of the BBA internship program 2004 of
Institute of Business Administration (IBA). The study has been carried out in British
American Tobacco Bangladesh (BATB) under the direct supervision of respective
authorities within a 10 week internship attachment period.
The report covers an elaborate descriptive study on the marketing strategies in the
Chittagong region. BATB has taken a special project in order to enhance the business
performance of the region. The study is based on this project of the Chittagong region with
a special focus on the Feni Market.
1.2 Background of the StudyBritish American Tobacco Bangladesh (BATB) is one of the leading multinational
companies in Bangladesh operating in the tobacco industry. It is currently the market
leader in the industry by holding a 51% market share. BATB divides their national market
in six regions- Dhaka South, Dhaka North, Chittagong, Syllet, Borga and Khulna. All these
regions operate as individual business units. The performance of these individual regions
makes up the companies overall performance. Among all these regions Chittagong is one
of the most important one because it contains around 29% of the total tobacco industry in
Bangladesh. The revenue and profitability is higher compared to other regions. Statistics
from the last couple of years revealed that the Chittagong region is currently performing at
below par to the other regions with 38% of the share in the Chittagong tobacco market.
According to statistics a 3% increase in market share of Chittagong region will increase the
national market share by 1% with a year. All this factors have made BATB to take an
aggressive marketing approach that is to be implemented in this region in the name of
Project Torpedo.
14
Project Torpedo
Project Torpedo focuses on some of the new and creative marketing initiatives in the
Chittagong region with a view to improve the market share and sales volume. In BATB’s
term these activities are called as New World of Marketing (NYOM). Activities include
different trade promotions, channel development, merchandising, consumer contact and
event management. All these activities will be implemented on the basis of different
markets and target consumers. Currently, the activities under this project are carried out to
those markets in the Chittagong region where BATB has 30-50% share in the market.
From BATB’s perspective the main reason behind this is that they think the opportunities
in these markets are relatively higher and there is a lot of scope for gaining the upper hand
in these markets.
1.3 ScopeContent Dimension
The report will be prepared in two major sections- the first section will cover industry and
organizational overview; the second part will cover the research part giving an overview of
the Chittagong region, Project Torpedo and detailed activities of Project Torpedo in the
Feni Distribution Market. The whole dimension here will be of descriptive nature and the
implementation of the Project Torpedo will be stated.
Physical Dimension
All the marketing activities done under Project Torpedo is applicable only in the
Chittagong region. The detailed marketing activities will be described based only on the
Feni Market.
1.4 ObjectivesThe general objective of this study is to elaborate the new and creative marketing
initiatives taken by BATB and their implementation of these activities. The detailed
objectives are-
To gain an understanding on the tobacco industry and competitive market scenaion.
To understand the different functions of BATB
To get an overview of the performance of the Chittagong region.
15
To get an overview of the Project Torpedo- the background of the project in
relation to the Chittagong region.
To get an understanding on the importance of Feni market and the relation with the
Project Torpedo.
Understand and implement the different strategies and activities to be performed in
Feni territory.
To find the impact of the project activities up to date.
1.5 MethodologyAs the study is of descriptive nature the data and information will be collected mainly
through interview method. Interview will be carried out with the following group of
peoples-
Respective BATB employees
Distributors
Consumers and Retailers
1.6 LimitationThere is no such limitation that could be considered in such a descriptive study. The only
problem would be to understand or identify the proper impact of the project Torpedo with
duration of 4 months. The project started to implement in January 2004. The actual impact
would be estimated after 12 months. So it would be difficult to draw proper conclusions.
16
Chapter 2: The Tobacco Industry
2.1 Nature of the IndustryThe tobacco industry of Bangladesh is an age old industry. There a distinct monopoly in
this industry where British American Tobacco Bangladesh (BATB) leads the market with
more than 50% market share. The other major players are-
Dhaka Tobacco Industries (DTI)
Alpha Tobacco Manufacturing Company (ATMC)
Abul Khair Tobacco
Azizuddin Tobacco
The industry is very price sensitive in nature. It is also a stick selling market, which means
that most of the tobacco consumers normally buy tobacco in sticks, not in packs. These
two features-price sensitive and stick selling-influences the business philosopies of the
companies.
2.2 Industry SegmentationThe tobacco industry can be divided into two markets-Biri market and Cigarette market.
Biri Market
Biri market is comprised of 72% of the tobacco market. It is basically the non-filter
cigarette market with a very two pricing. So biri is by far the dominating segment in the
tobacco industry. Recent trend has shown that biri market is experiencing decline which is
a favourable sign for the cigarette market. BATB does not operate in this market.
The major brand in this market is ‘Akiz Biri’, product of Dhaka Tobacco Industries. This is
by far the most popular Biri in the country.
Cigarette Market
Cigarette market is where BATB has all its focus. The market covers the rest 28% of the
industry. But the value of this market is lot higher than the biri market. The market can be
divided into four segments on the basis of price-
17
Segment Price Range
Premium Tk.3.00-4.00
Medium Tk.2.00
Low Tk.1.00
Very Low <Tk.1.00
Table I: Price Segmentation of Cigarette Industry
BATB operates in the top three segments of the industry. It does not operate in the very
low segment. Along with BATB, DTI and Alpha Tobacco is also a major player in the low
segment.
2.3 Competitive Scenario in the Cigarette MarketThe competition in the cigarette market is based on the price segment. There are individual
competitive brands in each price segment. There is no competition in the premium and
medium segment where the top International Brands of BATB dominate the market. Only
in the low segment there is a competition where mainly three companies have their
individual stakes and trying to take the segment leadership. In the very low segment, there
is also competition among brands like Sun Moon, Five Star, Wilson, Gold Hill etc.
Segment Price Range Brands Company
Premium Tk.3.00-4.00
Benson & Hedges
State Express 555
Rothmans
BATB
Medium Tk.1.5-2.00John Player Gold Leaf
Capstan
BATB
Low Tk.1.00
Star Filer
Navy
Senor Gold
Marine
BATB
DTI
Alpha Tobacco
Abul Khair Tobacco
Very Low <Tk.1.00
Sunmoon
Five Star
Wilson
Gold Hill
DTI
Azzizuddin Tobacco18
Table II: Competition in Different Price Segment
2.4 Industry Facts
83 billion sticks contribute to Biri Market. Recent trend shows that Biri market is
experiencing a declining trend.
35.5 billion sticks contribute to the cigarette market.
6.4 million adult male smokers comprises the industry.
There 21 companies contributing to the industry with around 112 brands.
Top 10 companies share 91% of the volume and 93% of the value.
19
Chapter 3: Corporate Profile and Background
3.1 Historical BackgroundBritish American Tobacco Bangladesh (BATB) is a subsidiary of British American
Tobacco Group. It has been incorporated in 1972 as Bangladesh Tobacco Company (BTC).
Since 1972 BATB has been operating in Bangladesh as one of the leading multinational
organization. Since 1972 BATB is operating as the market leader in the tobacco industry
by providing some of the most powerful global and local brands. At present BATB is the
highest tax paying company, contributing around 7% of the total revenue of the
Government of Bangladesh. BATB is renowned as one of the most prominent socially
responsible and ethical company in the minds of the citizen.
Based in England, British American Tobacco was formed at the turn of the 20th century
with the objective of establishing a worldwide business. British American Tobacco is
World's most global tobacco company. Today British American Tobacco sells the leading
brands in over 30 markets covering 102 countries, has more than 200 brands worldwide,
employs more than 55,000 people and produces some 2 billion cigarettes every day. More
than a billion people across the globe enjoy smoking tobacco. One in every eight chooses a
British American Tobacco brand.
In order to support the company's business goals the merger of British American Tobacco
with Rothmans International had been announced on 11 January 1999. This global merger
was completed on 7th June 1999. This brings together the number 2 and 4 players which
together will boast a combined volume exceeding 900 billion cigarettes around the world
with some 120,000 employees and a world-wide market share of 16 percent (Phillip Morris
has a 17 percent share). The merger is a major step forward in British American Tobacco’s
vision of becoming the world’s leading International Tobacco Company.
3.2 BAT & BATB: The RelationThe parent company of BATB is called BATCO or British American Tobacco Company.
They are the major shareholders of BATB. The operations of BATB are regulated
20
according to BATCO regulations and BATCO looks after the management aspects of
BATB. BATB management is trained by BATCO and in many occasions BATCO sends
their management to work in BATB. BAT industries are widely known as BATCO has two
major divisions:
1. Tobacco Division
2. Financial Division
With the help of the following diagram we can easily see the relationship between BATCO
and BATB very clearly:
Figure 1: Relation between BAT and BATB
Currently British American Tobacco Bangladesh is retaining 63% of the cigarette market
in Bangladesh. British American Tobacco Bangladesh is a sister concern of British
American Tobacco Company (BATCO). The cigarette division is known as “British
American Tobacco Holdings (BAT Holdings)", which operates in more than 78 countries.
"BAT Holdings" is a sister concern of BAT industries - a London based world famous
business house. BAT industries operate in financial services, paper manufacturing, and
tobacco sector. BATCO divided its cigarette operation in five regions. They are:
21
TOBACCO DIVISION FINACIAL DIVISION
AMESCA
BATB
BATCO
North and Central America
Europe
South America
Asia Pacific
AMESCA
BATB actually maintains a relationship with BATCO through AMESCA. It is actually a
region of BATCO to which BATB reports. AMESCA is made up of: A = Africa, ME =
Middle East, S= Subcontinent, CA = Central Asia.
3.3 Structure of BATBBATB is a public limited company. Management Director is the operational head and
appointed by the British American Tobacco. Head of every department carries out their
functions with the help of line managers. Different departments have different structure
according to their function and responsibility.
The “Board of Directors” and Executive Committee (EXCO) govern the overall activities
of the company. The "Board of Directors" is composed of 10 members who are called
Directors. The Chairman heads the “Board of Directors”. Chief Executive of British
American Tobacco Bangladesh is called the "Managing Director" who is normally
appointed by "BAT Holdings". Managing Director of the company is the chairman of the
Executive Committee. This committee includes the head of all the functional departments.
3.4 Ownership Status of the CompanyBritish American Tobacco Bangladesh is listed in the "Dhaka Stock Exchange (DSE)". It
has an authorized capital of Tk. 400,000,000 of 40,000,000 ordinary shares of Tk. 10 each.
British American Tobacco Bangladesh, which encompasses 62% of the shares of the
British American Tobacco, London. The Government held 32% of its shares. Subsequently
the government has gradually sold its holdings to different organizations of the country.
Raleigh Investment Co. Ltd. UK 65.91%
22
Investment Corporation of
Bangladesh
26.99%
Sadharan Bima Corporation 2.86%
Bangladesh Silpa Rin Sangstha 0.84%
Government of Bangladesh 0.65%
Sena Kalyan Sangstha 0.52%
Others 2.23%
Table III: Ownership status of BATB
3.5 BATB: At a Glance
Name of the Company British American Tobacco Bangladesh
Name of the Parent Company British American Tobacco Group
FormationFormation of Pakistan Tobacco Company (PTC)
in March 1949
FactoryIn 1954 PTC opened its first factory in
Fouzdarhat, Chittagong
Branch in DhakaPTC opened a branch in Moulavibazar, Dhaka in
1962
New Factory In 1965 factory was built in Mohakhali, Dhaka
IncorporationIncorporated in 1972 as Bangladesh Tobacco
Company (BTC)
Change of NameIn March 22 1998, BTC was renamed as British
American Tobacco Bangladesh
Nature of BusinessGrowing and Processing Tobacco;
Manufacturing and Marketing Cigarettes
Corporate Slogan Success and Responsibility go together
Corporate Vision Extend our leadership through world class
23
performance
Corporate Mission
Double our net revenue by 2005 while growing
our share of the total tobacco market and
dominating key identified segments
Table IV: BATB at a Glance
3.6 Physical InfrastructureThe infrastructure of the company has a broader field where the company plays its
important role. BATB has 6 Regional Trade Marketing Offices (RTMOs), 12 Regional
Sales Depots, 1 Factory, 1 Green Leaf Threshing Plant, 7 Leaf Depots and a Head office
consisting of Corporate Head office and Production Head office. The Company’s Head
office and Cigarette factory are located in Dhaka. A Green Leaf Threshing (GLT) Plant has
been set up in Kushtia and it has started operation from April 1995.
The company’s products are manufactured in the factory at Mohakhali, Dhaka. The Plant
Manager who reports to the Production Director at the Head Office heads Dhaka factory.
The company’ procures tobacco leaf maintaining the international standard and it imports
processed tobacco leaf for its international brands. It procures green tobacco from the
registered farmers of the leaf area mainly for it’s local brands.
The company’s authorized leaf areas are located in Kushtia, Chittagong and Manikgonj.
But bulk of tobacco leafs comes from Kushtia region. The Chittagong area is under
development process and it now covers Rangunia and Lama. The company operates 7 leaf
depots in he leaf area. 4 of them are located in Kushtia region, 2 of them are located in
CDA and other 1 is in Manikgonj, The company provides all sorts of supports to the
registered growers through its depot personnel. This includes technical know how,
agricultural inputs and financial assistance.
The company performs its sales and distribution operation all over the country through its
five regional sales offices. They are located in Dhaka, Khulna, Chittagong, Sylhet and
Rajshahi. Each of the regions is again divided into operational areas, each of which in turn
24
is divided into territories. To perform its sales and distribution smoothly, the company
operates 10 sales depots in different locations of the country and it has 63 authorized
distributors.
3.7 Human Resource & UnionizationThe employees of the BATB are dynamic, self-motivated and energetic to perform any
assigned job, because they are selected on the basis of excellent academic and experience.
The company employs 1,244 permanent employees and varying number of seasonal and
temporary workers as required. Each permanent employee receives remuneration in excess
of Tk. 36,000 per annum. Remuneration depends on the nature and conditions of work.
The workers are labeled in the following categories:
Permanent
Probationer
Temporary (seasonal)
Badli
Casual Trade union are established in the following company’s working
locations:
Head office and Dhaka factory
Kushtia leaf factory
There is a positive relationship between the company and the trade union based on mutual
trust and respect. All the employees of the company belong to the trade union. When a
worker becomes a member of the union, according to his request a certain amount of his
wage is deducted as the union subscription fees on a check off system. Trade union
election is held after every two years and governed by their respective constitutions. The
terms and conditions of services of the employee are negotiated and determined through a
process of collective bargaining between the company and the union.
25
3.8 Organizational Directions and Philosophies
3.8.1 Strategic DirectionsBATB follows some specific strategic directions in a view to succeed to her overall
corporate objectives-
Increase market value
Dominate ASU30
Develop and dominate new and emerging segments
Drive International Brands
Volume leader in three key segments
Leadership in distribution, trade relations and brand communication
Optimize supply chain efficiency
Leadership in corporate responsibility
Create value through information technology
Excellence in people development
3.8.2 Corporate Principals and ValuesBATB focuses to develop their employees’ performance, effectiveness, morality and ethics
in a very unique manner. They have these four guiding principles and nine corporate
values which guides and builds the BATB employees to a more effective and efficient
performer.
Guiding Principles
Open Minded
Enterprising Spirit
Freedom through Responsibility
Strength through diversity
Values
Achievement
o Vision: We understand what each of us has to do
o Map: We believe in our plans
o Consumer Focus: We live for our consumers
26
Commitment
o Confidence: We expect to win
o Standards: We keep raising our standards
o Drive: We take responsibility
Trust
o Teamwork: we have trust in each other
o Support: We learn from each other
o Belonging: we are proud of what we do
3.8.3 Environmental, Health, and Safety Policy and Afforestation ProgramAll the activities in the manufacturing unit and Green Leaf Threshing Plant ensure that
work is conducted in a manner to minimize environmental pollution. Kushtia a GLT has
won British American Tobacco’s Environment, Health and Safety Merit award for the year
1995 and 1996 for achieving consecutive two years of operation with zero accident. The
company also received the prestigious EHS Silver Award for 1999 without any lost time
accident in any part of the company, which was the second year in a row.
In line with BAT's environmental, health, and safety policy, the company is involved in an
afforestation program. The contribution of the company in afforestation program in
Bangladesh has earned recognition in the country though winning of the Prime Minister’s
Trophy in 1993. In 1998 the company distributed 3.5 million free saplings in Dhaka
through the Bonsai Nursery project. This program had caused more than 28.5 million trees
planted or distributed till 1998 and is expected to yield around 120,000 metric tons of
timber for fuel-wood, furniture making, or construction process in 1998 The Food and
Agricultural Organization (FAO) has awarded British American Tobacco Bangladesh for
pioneering the development of vegetable seed industry in Bangladesh. The company had
started its vegetable seed multiplication program in 1990 with the technical support of
FAO with a view to provide quality vegetable saplings for free distribution amongst
farmers in the tobacco growing areas.
27
3.9 SWOT Analysis
Strength WeaknessPhysical Infrastructure and
Technological Advancement
High Quality International Brands
Leadership in Key Price Segments
Quality Man Power
Efficient Trade Marketing
Department
Socially Responsible Company
Raw Material Wastage
Quality Issues regarding Packing
Lower market coverage than Dhaka
Tobacco Industries
Opportunity ThreatDeclining Biri Market
Increasing Cigarette Market
Volume leadership in 1 Taka
Segment
Up gradation of Smokers into higher
priced brands
Anti Smoking Campaigns
Law Enforcement against Public
Smoking
28
Chapter 4: Organizational Structure
4.1 The DepartmentsBATB has very organized departmentalization with in the organization. There are six
departments that perform all the activities different activities regarding the whole business
process of BATB. The department structure is as follows:
Figure 2: Departments of BATB
29
OPERATIONS
LEAF
MARKETING
HUMAN RESOURCE
FINANCE
INFORMATION TECHNOLGY
CORPORATE AND REGULATORY AFFAIRS
(CORA)
LEGAL
BATBCorporate
Headquarter
4.2 The OrganogramThe organizational hierarchy of BATB starts with the Managing Director and Deputy
Managing Director. There is an executive committee in BATB which comprises of MD,
DMD and the Head of Departments. The organizational hierarchy is as follows:
Figure 3: Organizational Hierarchy of BATB
4.3 Production DepartmentThe Head of Production looks after the production and takes necessary steps to smooth out
the production process. The entire production process is performed at the Dhaka Factory.
The motto of Production Department is to ensure the high quality and productivity steadily
for the last few years. The production department has been very successful in meeting the
challenges and the company now produces a wide range of filter cigarettes to meet the
market demands. All the local brands are now available with its international brands.
4.3.1 Existing Production FacilitiesCapacity Output: The country’s biggest manufacturing plant is owned by BATB with a
capacity of 80 million (rounded) sticks of cigarettes per day in 3 shifts.
Actual Output: Presently the factory is producing 60 million sticks per day hence they
need 70.000 kg of tobacco leaf.
30
Managing Director
Deputy Managing Director
Headof
Marketing
Headof
Finance
HeadofHR
Headof
Operations
Headof
Leaf
Headof
CORA
HeadofIT
Reasons for the difference: The market is the main reason for the difference between
actual and capacity output. Wastage is approximately 4% - 5% of the tobacco leaf used and
it occurs in three from namely - rejection, yield loss and accountable loss.
Raw Material Used: The following table summarizes the raw materials used for producing
cigarettes. The procurement sources are shown in the same table.
Raw Materials Source
Bulk Tobacco Locally produced in leaf
areas
Blending Tobacco Imported
Cigarette Paper Imported
Filter Material Imported
Packing Material Local
Table V: Raw Material Procurement Sources
4.3.2 Annual Cigarette Production
1999 2000 2001
Cigarette (in million Stick) 9,604 12,723 15,070
Pipe tobacco (in Kg) 35,000 - -
Table VI: Annual Cigarette Production
4.3.3 Production ProcessThe Primary Manufacturing Department: The primary manufacturing department (PMD)
is responsible for further conditioning the domestic and important tobacco to make it ready
for production. The tobacco passes through a set of integrated and regulated machinery
whose purpose is to blend the different 'packing grades' in specified proportions, convert
the bales into 'rag' suitable for use in cigarettes, and bring tobacco to a uniform temperature
and moisture.
31
The Secondary Manufacturing Department: The secondary manufacturing department
(SMD) uses the tobacco that is blended and conditioned by the PMD along with wrapping
materials to manufacture cigarettes. The PMD delivers its final processed tobacco to the
Cut Tobacco Store (CTS). The CTS has a 50-ton storage capacity and the tobacco is stored
there typically for one and a half days before it is used. The SMD brings in the processed
tobacco from the CTS as needed for production along with wrapping material.
Currently there are 16 cigarette-making machines at Dhaka factory, which are operated in
three daily shifts. Shift engineers and officer's monitor shift activities to ensure quality
production. The flow of tobacco and cigarette paper to the cigarette making machines are
regulated by six (programmable Logic Controlled) PLC controlled feeders. These feeders
send in the required quantities at the right time to ensure smooth production. Each brand of
cigarette is monitored by a separate feeder. In addition to the tobacco and cigarette
wrapping material, filter rods are fed into the machines for cigarette production. The
machines combine these three inputs to generate cigarettes as output. Defective cigarettes
are either identified manually or by built in sensors and removed from the production flow.
The tobacco from these wastes is removed and reused for cigarette production. The
manufactured cigarettes are deposited in trolleys and carted to the packing machines.
There are currently 18 packing machines at Dhaka factory. These machines are equipped
with the wrapping material used to pack the cigarettes. Almost all of the wrapping
materials used are imported. Local companies, however, conduct the printing work that is
required. The manufactured cigarettes are fed from trolleys into the packing machines,
which generate the packed cigarette as output. The flow is monitored closely to identify
and eliminate defective products.
In addition to the cigarette manufacturing and packing machines, Dhaka factory has two
Secondary Production Units (SPU). These are used exclusively to produce the State
Express 555 and John Player Gold Leaf brands. These modern production lines are
different from the other machinery in that both cigarette manufacturing and cigarette
packing can be conducted in one process flow. This reduces the time needed to manually
32
put the cigarettes into trolleys and cart them to the packing machinery. The SPU makes
approximately 8000 cigarettes per minute. Defective cigarettes are detected by sensors in
the machines and are removed automatically. In addition manual checking is conducted for
quality control purpose.
4.3.4 The Process Diagram
Figure 4: Production Process Diagram
4.3.5 Production Department OrganogramThe hierarchical structure of the production department is given in the next page-
33
Lamina
Stem
Conditioning of Lamina
Mixing & Conditioning of
Stem and Lamina
Primary Manufacturing
Department
Secondary Manufacturing
DepartmentWare House
CSC and Shipment
Conditioning of Stem
Head of Production
Coordinating Officer
Manufacturing Manager
Quality Services Manager
Technical Development Manager
Procurement Manager
Security Manager Human Resource Manager: Production
Operations Development & Regional EHS Manager
Planning & Logistics Manager
Asst. Quality Services Manager
Project Engineer
Security & Services Manager
DF
Coordinating Officer EHS Manager
Production Training & Development
Manager
Industrial Relations & Welfare Manager
Employee Relations
Officer
Material Procurement
Manager (Printing)
Material Procurement Manager (Papers &
Spares)
SMD Shift Manager
Processing Manager
Maintenance Manager
Services Manager
D Shift ManagerMaintenance Engineer E&E
E Shift Manager
C Shift Manager
Maintenance Engineer PMD
Maintenance Engineer HL
Maintenance Engineer SC
Production Planner Wrapping Material Manager
Leaf logistics Manager
Primary Supply Chain Logistics Manager
Leaf Import Logistics Manager
Coordinating Officer
Figure 5: Production Organogram
34
4.4 Leaf Department
At the time of the liberation war in 1971, only 600 acres of land were used for the
production of cigarette type’ of tobacco. Major portion of the total local requirement of
cigarettes were imported from West Pakistan. Immediately after the independence, owing
to the shortage of foreign exchange, import had to be reduced. There was an urgent need
for increasing local production of tobacco. The sustaining efforts of the company and the
response of the farmers were so effective that the country became self sufficient in
cigarette tobacco by 1975. In recognition to that outstanding performance, the company
was awarded the President’s Medal in 1976. In 1996, the company purchased about 5500
tons of tobacco leaf from its registered farmers.
The Leaf department is involved in cultivating and purchasing flue-cured tobacco. BAT
does not do not own farmland nor does it employ farmers directly to produce the tobacco it
uses for cigarette production. Instead, each year the company registers thousands of
farmers along with their land, to grow and cultivate tobacco crop. The company provides
seed, fertilizer, and other loans to the farmers throughout the crop season to ensure quality
growth. At the end of the season BAT buys fixed quantities of tobacco from the farmers,
paying rates based on the grade of the crop. Tobacco growing and buying activities is
conducted throughout the country. The two main areas are Kushtia Leaf Division and
Chittagong Development Area.
4.4.1 Green Leaf Threshing PlantThe tobacco crop is processed at the Green Leaf Threshing (GLT) plant in Kushtia. The
purpose of the GLT is to convert the tobacco into a form suitable for cigarette production.
The tobacco is brought to a uniform moisture level and temperature. Initial blending of the
different grades of tobacco takes place at the GLT. The processed tobacco is sized and
packed before delivery to Dhaka factory.
35
The Leaf department makes an estimate of the quantity of tobacco that BAT will need to
purchase for the based on the input of the Sales & Operation Planning (SOP) committee.
Based on these estimates the number of farmers and the amount of land, which will have to
be registered, are fixed.
The leaf season begins in the month of July. At this time tobacco seedbeds are prepared to
generate the seed that will be distributed to the farmers for cultivation. Plantation in the
registered lands occurs during October and November. BAT provides the necessary
fertilizer, pesticides, and other loans to ensure proper growth for the crop. Farmers use
their own irrigation and plowing methodology to prepare the land. Harvesting and curing
begins at the end of January and continues till March. Almost 100% of raw tobacco is 'flue'
cured.
The buying process begins in mid-February and continues till the end of May. The farmers
bring in their cured tobacco in the form of bales to the buying courts in the depots. The
tobacco is graded according to set criteria and purchased at these sites. All relevant
information is marked on the bales and stored at the depots till shipment to the GLT.
At the beginning of the season the various depots distribute registration forms to the
farmers in its region. BAT strives to maintain an ongoing relationship with its registered
farmers. Information on each farmer is maintained at the depots through in-house database
software called Integrated Leaf System (ILS). On the basis of these records a decision is
made on whether to register the farmer for the following crop season.
Buying courts are located at the depots. The farmers bring their tobacco to these sites in the
form of bales on a specific day and time. At the buying courts the bales are graded, priced
and weighed. After the tobacco is bought and graded it is stored in the depot godowns;
each bale identified with its grade, weight, and price. These bales are stored in the depots
and moved to the GLT when needed for processing.
36
4.4.2 Tobacco ProcessingThe Green Leaf Threshing Plant in Kushtia is used to treat the raw tobacco and convert it
to a form suitable for use in cigarette production. It is a seasonal factory operating for six
months of the year, on two shifts per day. The remainder of the year is used to clean the
machinery and make modifications as necessary.
Each tobacco leaf that is processed at the GLT is separated into four components- tip,
lamina, stem, and by product. At the beginning of the process flow, tips of the tobacco
leaves are cut off by a calibrated cutter. The leaves are then passed through the sand reel
where foreign materials and dirt are separated. The tobacco leaves are then proceeds to the
threshing line to separate the lamina from the stem by hitting the leaves. The separated
lamina are then dried and the re-dried lamina is then packed at a temperature of about 43
Degrees Centigrade with approximately 12% moisture content for storage. The separated
stem, meanwhile, moves to the stem dryer where it is re-dried for storage purposes and
then sent to the stem packer. The moisture content level of the stem is brought to around
12% at the time of storage. By-products are sold to the outside contractors.
4.4.3 The Leaf Department OrganogramThe hierarchical structure of the leaf department is given below-
37
Head of Leaf
Export Manager
Leaf Blender
Leaf Social Projects Manager
GLT Plant Manager
Leaf Finance Manager
Leaf Human Resource Manager
Divisional Manager (Kushtia)
Assistant Leaf Blender
Leaf IT Manager
Maintenance Manager
Processing Manager
Shift Manager, 1
Shift Manager, 2
Deputy Leaf Finance Manager
Assistant Leaf Finance Manager
Divisional Manager
(Chittagong)
Regional Manager
(Chittagong)
Regional Manager
(Cox’s Bazar)
Leaf Officer Leaf Officer
Regional Manager
(Meherpur)
Regional Manager
(Chechua)
Regional Manager
(Allardarga)
Regional Manager
(Manikganj)
Agro-chemical Manager
Regional Manager
(Jheneidah)
Area Leaf Manager
Leaf Officer Area Leaf Manager
Area Leaf Manager
Leaf Officer
Coordination Officer
Figure 6: Leaf Organogram
38
4.5 Finance Department
4.5.1 Functions of Finance Department
Finance company assets, personnel and operational facilities of the cigarette
factory, leaf factory and head office.
Prepare and verify consolidated financial statement of all units of the
company.
Monitor and control all financial activities of the.
Monitor sales collections.
Process Management information.
Structure capital policy.
Carry out by auditing internal and external auditors.
4.5.2 The Structure of Finance Department
Figure 7: Finance Organogram
39 39
Supp
ort F
inan
ce
Head of Finance
Senior Corporate Finance
Internal Audit Manager
Deputy Corporate
Finance Manager
Treasury Manager
Deputy Treasury Manager
CORA Finance
Brand Marketing Finance
Trade Finance Manager
Leaf Finance
Production Finance
Deputy Corporate
Finance Manager
Billings
&
Taxation Manager
Product Costing Manager
Budget Manage
r
The Supporting Finance managers, Audit Manager and Treasury Manager assist the
Head of Finance. The Finance Department comprises of six areas. They are:
Treasury: Corporate (L/C opening, fund management, banking relationship
etc.)
Core Finance and Management Accounts: Corporate
Marketing Finance: Supporting
Excise Management: Supporting
Taxation: Corporate
Audit: Separate
Insurance: Corporate
The Core Finance and Management Accounts activities includes monitoring and
controlling all the Accounting and Financing activities of the company such as
product costing, invoice pricing, taxation etc. Audit Manager manages all the internal
and external auditing of the company.
4.6 Human Resource Department
4.6.1 Activities of Human Resource DepartmentBATB believes in the strength of human resource and uses the modern concept of
resource utilization. Every job description is carefully designed and modified under
dynamic environment. The company believes in the concept of best fit and trains and
develops company personnel as the key ‘human capital’ of the company.
The Human Resource Department thus concentrates all its activities for the
development of human resource for the benefit of the company. The department also
believes in maintaining harmonious relationship between the management and
workers all the times. The department ensures that managerial development
contributes to organizational development.
The departments’ various activities cover setting criteria for the selection procedures.
Interview techniques, training standards etc. According to the BAT policy guideline,
the department maintains the personnel through formulation policies on wages, fringe
benefits, annual leave, training calendar, provident fund, performance appraisal etc.
Remuneration is managed centrally and there is never any negotiation but settlement.
40 40
It also settles with the trade union for Long Term Agreement (LTA) between
management and workers and the ‘collective burgeoning agents’. The concept behind
the industrial relations is always ‘win-win’ situation.
4.6.2 The Structure of Human Resource Department
Figure 8: Human Resource Organogram
41 41
Head of Human
Resource
Human Resource
Development Manager
Human Resource Manager:
Production
Resource and Remuneration
Manager
Human Resource Manager:
Leaf
Coordinating Officer
Training
Manager
Industrial Relations and
Welfare Manager
Employee Relations Officer
Payroll & Funds
Manager
Human Resource Services Manager
Production
Training
and
4.7 Marketing
4.7.1 The Structure of the Marketing DepartmentMarketing is “The Department” of BATB. The marketing department has recently
been rebuilt by merging brand marketing and trade marketing. Earlier these two were
individual departments. But now with the “Power of One” theme the brand and trade
department has formed a very efficient marketing department.
Marketing Mission
We will grow to 60% volume share by 2010 while
Owning IB (i.e.100%)
Dominating ASU 30 (i.e. more than 60%)
Leading DVFM (i.e. more than 50%)
The marketing department can be divided into three sub departments-
Figure 9: Marketing Department Structure
4.7.2 Brand MarketingThe Brand Marketing department concentrates on satisfying consumers’ needs from
within the brand portfolio. Once consumers’ needs are understood and evaluated,
brands can be made available, accessible and desirable through strong, consistent
communication. The brand marketing elements covers the adopting of products,
logistics and brand marketing policies that best meet the needs of particular trade
channels and strategic customers. The Brand Managers and Brand Executives are
responsible for the allocated brand(s). They are responsible for all type of brand
management activities.
42 42
Marketing
Brand Marketing
Trade Marketing & Distribution
Trade Development
Team
Market intelligence includes the market research team. The team keeps constant eye
on the market situation. Through continuous research, market research teams generate
useful market information for the brand managers. Interface is required between brand
marketing and research which is carried out by any project that is divided by three
phases:
Preparation prior to the study
Collection and analysis of data
Presentation and utilization of information
There are different sort of researches carried out in the field level for gaining
important information. For example, a retail census (RCS) is done on a yearly basis
that provides an elaborated list of cigarette selling outlets through out the country.
Also a retail audit is carried out bi-monthly every year to understand the market
scenario in terms of the own and competition brands’ reach, out of stock and selling
price.
4.7.2.1 Brand Marketing Organogram
43 43
Figure 10: Brand Marketing Organogram
4.7.3 Trade Development Team (TDT)This department works in between the brand and trade department in a view to
facilitate and coordinate the activities from the two ends. TDT performs different
functions like channel management, cycle planning, merchandising etc.
Channel Development: There are three types of channel outlets where cigarette is
sold. This is classified on the basis of quality, authority, environment etc.
Convenience
Grocery
Horeca
Volume Class Outlets: The cigarette selling outlets are classified on the basis of their
daily sales of cigarette.
Volume Class Stick Sales/Day
44 44
Head of Brand Marketing
Coordinating Officer
CORA Marketing Manager
Senior Brand
Manager VFM
Group Brand
Manager Premium
Senior Brand
Manager DVFM
Marketing Intelligence Manager
Product Development
Manager
Brand Marketing Finance Manager
Brand Manager
JPGL
Brand Executive
JPGL
Brand Manager
B & H
Assistant Marketing Intelligence Manager
1 54795+
2 27397-54794
3 13699-27396
4 5479-13698
5 2740-5478
6 1370-2739
7 548-1369
8 274-547
9 Below 274
Table VII: Volume Class Outlets
Cycle Planning: Cycle planning is a process by which a particular brand’s message is
designed and communicated to the trade and consumers. Usually, a particular brand
cycle continues for at least a month. It can also be for 2/3 months. Cycle
communication is implemented through the TM&D level.
Merchandising: Merchandising can of different type. It can be permanent or
temporary. BATB uses a combination of these two categories of merchandising.
Permanent Merchandising
In store merchandising: e.g. Street Cabinet
On store merchandising: e.g. Fascia
Out of Home (OOH): e.g. Billboard
Temporary Merchandising
Point of Purchase (POP): Bunting, Dangler, PVC
4.7.4 Trade Marketing and Distribution (TM&D)TM&D carries out the activities like ensuring proper distribution and reach of the
brands in the market, implementing promotional campaigns and brand communication
programs.
45 45
4.7.4.1 TM&D MissionTo reach our target consumer in the most efficient and effective way by becoming the
benchmark supplier to the trade within strategic channels in every market place.
4.7.4.2 TM&D StructureFor the purpose of smooth distribution operation BATB has geographically divided
Bangladesh into regions, areas and territories. There are total six regions with 12 areas
and 42 territories under which the TM&D activities are implemented.
Following is the organogram of Trade Marketing and Distribution. The hierarchy
starts with Head of Marketing and ends with territory officer.
46 46
47
Trade Development
Manager
RMDhaka North
AMDN 1
TO-DN 1a(Agrani)TO- DN 1b (Agrani)TO- DN 1c (Alpha)
National Sales Manager
Demand Manager
RMDhaka South
RMBogra
RMSyllet
RMKhulna
RMChittagong
Head of Marketing
AMDN 2
AMDS 1
AMDS 2
AMComill
a
AMCtg
AMSylle
t
AMMymensing
h
AMBorg
a
AMRajshahi
AMEclips
e
AMKhulna
AMBarisal
TO-ComillaTO-ChowmuhoniTO-ChadpurTO-Feni
TO-Ctg Metro 1TO-Ctg Metro 2TO-Ctg Metro 4TO-Ctg Metro 5TO-Coxsbazar
TO- DS 1a (Alam)TO- DS 1b (Alam)TO- DS 1c (Savar)TO- DS 2a (N’ganj)TO- DS 2c (N’ganj)TO-EclipseDO-Eclipse
TO- DN 2a (Smah)TO- DN 2b (Smah)TO- DN 2c (Tongi)TO- DN 2d (J’Pur)
TO-Syt Metro1TO-Syt Metro2TO-Syt Metro3TO-Srimangal
TO-MymensinghTO-TangailTO-B’BariaTO-Kishorgonj
TO-BograTO-RangpurTO-Dinajpur
TO-RajshahiTO-Pabna
TO-KhulnaTO-JessoreTO-KushtiaTO-BarisalTO-Faridpur
Figure 11: Trade Marketing Organogram
47
4.7.4.3 Trade Marketing Operation
Regional Trade Marketing Operation
The British American Tobacco Bangladesh has a well-defined mission for the
marketing and distribution of products, which is to reach the target consumer in the
most efficient manner by becoming the benchmark supplier to the trade within the
strategic channels in every market where the company operates. A well-organized
trade marketing team is working continuously to make this mission successful;
furthermore the whole country has been divided into six regions to perform the
marketing activities efficiently. Moreover the regions are further spitted into 12 areas.
Right now there are 6 regional managers, 12 area managers and 43 territory officers
working under the Head of Trade Marketing. At present, there are 63 distributors
involved with BATB who are responsible to make the products of the company
available throughout the country.
Trade Marketing Operational Hierarchy
Figure 12: Trade Marketing Operational Hierarchy
48
Two area managers under each regional manager
Head of Trade Marketing
Regional Manager
Area Manager
Territory Officer
Six regional managers
One for each territory
National Sales Manager
The British American Tobacco Bangladesh considers the distributors as their
customers. They have identified the distinction between the ‘customers’ and
‘consumers’ in a proper way. Consumers are those who buy cigarette for smoking.
The Company sells their product to the distributors; in turn the distributors sell to the
retailers and cash & carry as well. Cash & Carry are nothing but wholesalers. Cash &
Carry are needed because at times the retailers may not have adequate funds to buy
the required quantity. However, the company is trying to discourage the use of these
wholesalers to control the price of their product in the market. Generally, the trade
marketing and distribution team performs three main activities, which are trade
coverage, cycle implementation and training & development.
Trade Coverage: Accumulating primary data from the market is a function of trade
coverage. There is a team working to identify retailers who contribute eighty percent
(80%) of their total sales volume. The Territory Officers (TO) are responsible for
making a route plan by which they can identify which outlets to visit and in what
frequency on the basis of those classes. The Territory Officers have to visit at least 12
outlets a day and collect raw data from the retailers on the call card in the Laptop
computer. A set of questions regarding the various aspects of the out lets make up the
call card. There is a database at the RTMO, which is updated regularly by using those
calls. This database serves as a powerful tool to identify and classify different outlets
in terms of volume sales, outlet characteristics and consumer profile.
Cycle Implementation: The marketing people of BAT have divided the whole year
into 13 cycles and each cycles focuses on a particular brand, Furthermore, the brand
marketing group along with trade marketing people develop promotional campaign
plans for each brand. They also select the brand for the cycle and develop cycle
instructions and send it to RTMOs. After that the trade marketing team develops some
objectives and implement those within their territory, which helps to follow the
proposal cycle instructions. The regional manager and the area manager(s) then brief
the TOs about the cycle objectives and in turn the TOs brief the distributor and
ultimately work with the retailers. In this regard the contract merchandisers generally
perform well to accomplish the TO’s job, at the end of each cycle, the TOs prepare a
cycle evaluation report.
49
Training & Development: To train the working people is one of the most important
jobs of any TO. They generally train the people working for the distributors, for
example distribution representative and also the contract merchandisers within his
territory. They also train the retailers about how to approach customers, if necessary.
The Marketing Department and the Production Department activities are highly
correlated. According to the needs of the Marketing Department, Production
Department carries out the cigarette manufacturing. The marketing Department
forecasts the sales volume of the different brand cigarettes for the coming business
year and based on this, prepare a marketing plan known as the Sales Operational Plan
(SOP). According to the Plan, Marketing Department communicates the brand wise
sales target for each month to the Production Department. Based on the SOP,
Production Department sets its production schedule. The inventories of cigarettes are
also evaluated at this stage to find out the actual output to be produced.
Channel of Distribution
Figure 13: Channel of Distribution
50
Factory
Sales Depots
Distributors
Retailer
Consumer
Cash & Carry
Internal Carrying Agent
Regional Go-down: There are five regional go-down through out the country to fill
every regional demand just at the time of need, and to overcome various uncertainties
related to physical distribution of products, every regional go-down is directly
controlled by separate Regional Manager to face the regional physical distribution
challenge.
Carrying Contractor: They are the party engaged in the physical movement of
cigarettes from head office godown to regional office godown. Normally they are the
truck owners who take all the risk and responsibilities of physical movement of goods
between two warehouses.
Distribution Warehouse: All distributors have their own warehouse, where cigarette
can be kept safely while not degrading its product quality. Distributors buy the
cigarette from BATB and from that point ownership and all responsibilities of the
products go under the distributors.
Internal Carrying Agent: They are like carrying agent but carry small volume of
products. Normally they are local truck owners. They carry products from, regional
godowns to distributor warehouses. They also take al the responsibilities and risk
engaged in physical movement of products.
Opening Stock at Distributors’ Office: Apart from the warehouse, every distributor
also maintains another stock at their office. This stock is for maintaining any change
in market demand instantly. Dealers sometimes sell cigarette through their counters to
face special situation.
Delivery Van: All the delivery vans are owned by the dealers to assure the supply of
cigarette on the door of wholesalers, cash & carries and retailers just according to
their demand. There are two types of delivery vans. One is Scooter van and another is
Rickshaw van.
Cash & Carry: They are businessmen who sell cigarette directly to consumers and at
the same time they sell cigarette to the retailers.
51
Retailers: Retailers are at the end of the physical distribution system of cigarette
selling products directly to the consumer.
4.8 Information TechnologyInformation Technology department was mainly acting as a supporting service for all
the other functions of BAT. As the emergence of super information highway and
other technological advancement made the business world more competitive, BAT
also made necessary adjustments towards the changes and in continuation with that
process IT was made a separate department in February 2000. The head of IT is also a
member of the executive committee and he is supported by the function support IT
managers.
4.8.1 IT Organogram
Figure 14: IT Organogram
52
Head of IT
Technology IT Manager
Services IT Manager
Marketing IT Manager
Operations IT Manager
Corporate IT Manager
Leaf IT Manager
Logistics IT Manager
Systems Administration Manager
Communication & Group Working Manager
Assistant Manager, IT Services
Assistant Manager, IT Services
Quantum System Manager
Three Local Area Networks (LANs) have been set up in the Head Office to channel
necessary information among the Head Office, main Factory and Kushtia leaf factory.
Three LANs are connected via a Wide Area Network (WAN). BAT has a private E-
mail network through which management personnel can deal with each other even
with the foreign suppliers.
4.9 The Corporate & Regulatory Affairs Department (CORA)
The Corporate & Regulatory Affairs Department (CORA) of the company is
dedicated towards achieving the company’s fifth strategic imperative, which is: To be
a responsible company in an industry seen as controversial
Globalization and increased scrutiny of businesses by consumers and the general
public mean that companies are today judged not only by the quality of products that
they produce but also the manner in which they carry out their business activities. It is
therefore, an imperative that corporate bodies are responsible not just in their
businesses but also in the social domain that they operate in. British American
Tobacco’s philosophy has been to be conscious corporate citizens wherever they
operate, respectful of local cultures
The company recognizes that it manufactures a product, which carries significant
risks. In this light, the company believes that only informed adults should use its
products and that under-age persons should not smoke. It also believes that the
company must act, behave and carry out its business activities in a manner accepted
by society at large as responsible. This includes dissemination of the company’s
positions on issues.
The Corporate & Regulatory Affairs function is charged with driving reputation
management to the heart of the business and ensuring the company’s involvement as a
leading development partner of the country.
4.9.1 Structure of CORAThe Corporate and Regulatory Affairs Department programs are lead by the Head of
Corporate Affairs who is assisted by the Company Secretary and the CORA
Managers. The company’s Legal and secretarial function also reports in to the Head
53
of CORA.The Company Secretary looks after the legal sides of the company such as
trademark Protection, Infringement of Company Rights, Distributor Agreement, and
Trust Fund etc. He also looks after the share market activities of BAT shares.
The organogram is given below-
Figure 15: CORA Organogram
4.9.2 Code of Conduct for Tobacco MarketingIn a competitive market, BAT wants adult smokers to choose its brands over those of
its competitors. Advertising has two purposes – to maintain brand loyalty and to
encourage smokers to switch brands. Advertising provides consumers with
information to make choices. BAT believes that the use of tobacco products should be
an adult choice. Advertising programs, including promotional activities for tobacco
products should be carried out in a responsible manner.
54
Head of CORA
CORA Manager, Economic
Issues
Company Secretary
CORA Manager, Social
Responsibility
CORA Manager
CORA Manager, Shareholder
Communication
Asst. Co. Secretary
Executive, Legal and Regulatory
Affairs
Executive, Share and
Agreement
Confidential Assistant
CORA Executive, Internal
Communication
CORA Manager, External
Communication
Public Relations Officer
Executive, Media
Relations
Coordinating Officer
CORA Marketing Manager
CORA IT Manager
The guiding principles for the company’s advertising are stated below and for the
purpose of these principles, and adult is defined as anyone who is 18 years of age or
more.
1. Advertising is intended for, and will be directed at adult smokers.
2. Advertising will not be false or misleading.
3. Advertising will not make health claims about tobacco products or smoking.
4. Advertising will not depict the use of tobacco products as being important to
sexual success.
5. Any person appearing in advertising will not be younger, nor appear to be younger
than 25 years of age.
6. Where television and/or radio advertising is permitted, it will only be broadcast in
those hours when programming is primarily directed at adults.
7. Print advertising will not be placed in publications primarily directed to persons
under adult age.
8. Cinema advertising will not be shown during films directed primarily at persons
under adult age or at times when the audience is likely to comprise primarily of
persons under adult age.
9. No payment shall be made for the placement of advertising or tobacco product in
any film produced for viewing by the general public.
10. Advertising will not be displayed on billboards directed at or in close physical
proximity to schools or other facilities used mainly by persons under adult age.
11. Direct marketing, market research and sampling of tobacco products will only be
carried out with, or in relation to adult smokers.
12. Promotional items and premiums bearing tobacco trademarks will only be directed
at adults.
4.9.3 Activities of CORA
The Corporate and Regulatory Affairs Department of the company is dedicated for
maintaining a good image of the company to the society by keeping customers,
media, government, suppliers etc. contended. The company believes that as a
corporate citizen, it has a conscious duty towards the societies well being. The
company promotes and sponsors various community development programs to
increase its image in the society.
55
The department maintains good and continuous liaison with the media, government
and other pressure groups in order to protect its business image from any unwanted
situation in the context of prevalent anti smoking campaign, nationally and
internationally.
The company enjoys credibility with a majority of stakeholders for its transparent
business systems and as an honest taxpayer.
CORA is also entrusted with upholding the image of the company as a good corporate
citizens through a range of activity that include issue based relationships with key
stakeholder groups such as media, government and suppliers. The company’s
contribution to society as a whole is well known i.e. an afforestation program that has
seen 30 million trees planted in 20 years. This has led to it being awarded first prize in
the Prime Minister’s award for afforestation in 1999. International bodies such as the
FAO and the World Bank have recognized this program as an exemplary initiative by
a private sector company.
56
Chapter 5: The Brand Portfolio
BATB holds some of the most powerful international and local brands in the tobacco
industry of Bangladesh. The brands can be classified from two different perspectives-
5.1 International Brand (IB) BATB produces international brands like Benson & Hedges (B&H), State Express
555 (SE555), Rothmans (RM), John Player Gold Leaf (JPGL) and Capstan (CAP).
These are very popular IBs that are being produced and marketed successfully
through out the country.
Benson & HedgesThe Gold Standard Premium and Status Brand for the
Consumers
State Express 555The brand that is enjoyed by certain hardcore loyal
consumers
RothmansThis famous European brand has been launched recently
and it is trying to establish its position
John Player Gold LeafIt is “The Brand” for BATB and the most popular brand
among the mass cigarette smoking population.
CapstanThis popular brand is positioned in a smaller scale to a
specific customer base.
Table VIII: The Brands of BATB
Benson & Hedges
This brand was launched in early 1997 in order to give consumers the choice to
purchase a fresh, duty paid legal alternative to the widely available smuggled version.
To generate product awareness, international image campaign was introduced in key
outlets in Dhaka and Chittagong. Distribution was later extended to Sylhet and
Khulna. The objective behind introducing the brand was to gain price leadership, not
profit. Later its distribution base was expanded and brand imagery was changed from
57
father’s brand to modern, more appealing; towards ASU 30 (adult smokers under 30).
The company arranged successive music events staged under “Golden Tones”, “Star
Search”, “Live and Explosive” etc. banner. The demand of this product is largely high
all over the world. Very recently BATB has set up plants to produce it in Bangladesh.
BATB has started producing B&H in a large scale after the head office approves the
quality standard of the B&H cigarettes produced in Bangladesh. It is mainly the
processing part of ‘cut rag’, which is done locally. The copy line of the brand is ‘Be
Gold’.
Benson & Hedges Lights
The Benson & Hedges Lights is a new member of B&H family. It is a new variant of
the existing Benson & Hedges. It was first introduced in 1998 in Dhaka and
Chittagong. The objective was to give the smokers more options within the same
brand and to keep pace with the modern trend of smoking light cigarettes throughout
the world.
State Express 555
It is the profitable brand of the company. The 555 centenary celebrations took off in
the spirit of 100 years on 5-5-1995 when five planets were aligned. Bangladesh, like
many other countries, celebrated the introduction of the new centenary pack with
birthday parities special promotional events, and integrated advertising & promotion
activities. The copy line of the brand is ‘Smoothness Above All Else’.
John Player Gold Leaf
It is the leading international brand of the world. It is the cash cow and the key-
driving brand for BATB with the highest spending in brand support. 1995 was an
important year for John Player Cord Leaf as the brand was re-launched in the new
international pack. Given the importance of the brand for the company and the risk
associated with such change, the management of change process included four phases
to properly condition the consumer and the trade to the new pack. Specific materials
were use ahead of the re-launched to announce the change to the consumers and to the
trade. JPGL recorded strong growth in 1996. Investment in in-store and on-store
permanent merchandising ensured brand availability, quality image and showed
company’s favorable commitment towards the retail trade partners. JPGL launched its
first ever international sponsorship in 1996,with John Player Gold Leaf Formula 1
powerboat team competed in the UIM world championships in more than ten races.
The final race was attended by a delegation of Bangladesh sports journalists. Another
58
famous international promotional activity was ‘Voyage of Discovery’, which was a
long journey of a JPGL yacht that stopped at 12 international ports, lastly bringing an
end at Chittagong port. In June 14, 1998, the price of JPGL was increased from Taka
2 to Taka 2.5 and volume share reduced substantially with the invasion of transit
brand London. In December 16, 1999, the price was re-fixed at Taka 2. The ultimate
objective of the brand is to upgrade the low segment consumers into medium
segment. The copy line of the brand is ‘John Player Gold Leaf – Follow The World
Adventure’.
5.2 Domestic Value for Money (DVFM)Under DVFM category there are two brands- Star Filter (SRF) and Scissors Filter
(SSF). Star Filter is the most popular brand in the lower segment. On the other hand,
Scissors Filter has a much defined niche.
Star Filter
A new image for a promising future 1995 was an excellent year for Star Filter as the
brand demonstrated an outstanding volume and growth of share. This performance
was the result of a major blend improvement, supported through an appropriate
communication campaign, as well as the launch of a new advertising campaign with
the theme of The Flavor of tradition and modernity.
Scissors Filter
Scissors filter has been helping BAT to regain segment leadership in the medium
price segment till 1995, as the brand has experienced dramatic increase in volume and
market share. The brand distribution was gradually extended to different parts of the
country with the help of focused brand support, emphasizing on POS materials and
consumer promotions.
BATB has strategic implications for different brands:
Destination/Strategic Brand: B&H, JPGL and Star.
Supporting/Profit Opportunity Brand: SE 555, Capstan and Scissors.
59
Chapter 6: Overview of the Chittagong Market
6.1 Geographical spread
Chittagong Trade Marketing Region is the 2nd largest region in Bangladesh, in terms
of area size and population. It is located at the north east corner of the country. In
North it starts from Comilla district and in the south ends with Cox’s Bazar. Port city
Chittagong district is the most prominent district of the region which happens to be
the 2nd largest city in the country. Other Major districts of the region are Feni,
Noakhali, Rangamati and Khagrachari. In the East, the whole region is flanked by
India & Myanmar. There is also a maritime boundary along the western border of
Chittagong, Western & Southern tip of Cox’s Bazaar districts.
Figure 16: Geographical area of Chittagong Region
60
Feni
6.2 Administrative Structure: Area & Territory
Administratively BATB has divided the region into two areas – Chittagong and
Comilla.
Chittagong Area
Chittagong area has six territories in the area. A brief description follows:
Territory Containing Areas
Chittagong Metro 1: Halishahar,– the industrial zone of Chittagong district.
Chittagong Metro 2: EPZ, Airport, Agrabad – a mix of port, commercial &
industrial areas of Chittagong district
Chittagong Metro 3: Khagrachari, Nazirhat, Old town of Chittagong – Urban &
hilly areas
Chittagong Metro 4: Rangamati, Hathazari, Ctg University, Cantonment – Hilly
& Semi urban Areas
Chittagong Metro 5: Patia, Kaptai, Anwara – Semi urban & rural areas of
Chittagong district.
Cox’sbazar: Coxs Bazaar, Bandarban, Chokoria – Mix of Tourist city,
rural and hilly areas.
Table IX: Chittagong Area Details
Comilla Area
Comilla has four territories in the area. All of them are a mix of town and rural areas.
Territory Containing Areas
Comilla Comilla town, Laksham, Chouddagram- Mix of urban and
rural areas.
Chadpur Chandpur town, Daudkandi, Shahrasti, Hajigonj- River port
and rural areas.
Chowmuhoni Choumuhoni, Maizdi, Lakshmipur- Mostly semi urban &
rural areas.
61
Feni Feni, Sitakundo, Swandip-mostly urban and rural areas,
highway based market.
6.3 Market composition
Chittagong is the biggest region in terms of industry size. The region contributes 29%
of the cigarette industry which is almost one third of the total industry. This makes
Chittagong very important for BAT since 3% growth of market share in the region
will result into 1% growth of market share nationally.
Figure 17: Market Composition
Market composition in Chittagong is different from other regions. The resonsons are
stated below:
Firstly, unlike other regions Very Low is the largest segment in Chittagong. At the
same time the size of the biri market is smaller than other regions. This is due to
higher per capita income in Chittagong which has probably led to faster
cigarettization than the other regions.
62
Table X: Comilla Area Details
Secondly, nobody truly dominates the market in Chittagong. The market is
fragmented among four companies. Other than BAT and DTI, Abul Khair and Aziz
Tobacco have strong presence in Chittagong. BAT leads the region with 38% share,
followed by DTI with 28%.
Figure 19: Competition in Different Region
6.4 Industry Growth
Chittagong is the fastest growing region
Over the last three years Chittagong has always been the highest contributor behind
national industry growth. Since 2000, cigarette market is growing strongly and has
become the fastest growing region.
63
Figure 18: Price Segment in Different Regions
Figure 20: Growth Trend of Chittagong Market
Not only in terms of absolute volume but also at a percentage growth level,
Chittagong has provided highest growth than any other region over the last two years.
Company 2000 2001 2002 2003
National 11% 27% 5% 12%
DN 22% 12% -17% 7%
DS 14% 21% -3% 7%
Ctg 7% 29% 14% 16%
Bog 10% 51% 12% 12%
Khl 9% 32% 14% 10%
Syl 5% 26% 7% 14%
Table XI: Growth Percentage of Different Market
Growth in Chittagong is driven by Low and Very Low Segment
Growth of low and Very low segment is the driving force behind the overall industry
growth in Chittagong. In 2002 Very Low growth rate contracted and Low became the
fastest growing segment. The same trend has been observed in 2003 where Very low
growth rate has declined further and Low has grown more strongly.
Medium segment in Chittagong remained flat in 2003 after strong growth in 2002.
Unlike other regions mid has not declined in Chittagong.
Premium is growing strongly over the last two years from a very small base. Growth
rate over 20% for consecutive two years indicates the segment will pick up much
faster in 2004.
64
Segment Volume Growth Rate
2000 2001 2002 2003 2000 2001 2002 2003
Premium 22 21 26 32 29% -1% 24% 21%
Medium 92 104 132 133 11% 14% 27% 1%
Low 153 181 256 289 2% 18% 41% 13%
V Low 241 288 335 349 15% 19% 16% 4%
Industry 508 595 749 803 10% 17% 26% 7%
Table XII: Segment Growth and Volume in Chittagong
6.5 Growth in Different Price Segment
6.5.1 Low Segment
Low segment is poised for strong growth in future
Low has shown strong growth in all the parameters over the last two years. Firstly, it
has been attracting significantly higher number of new entrants over the last two
years. Secondly, though ASU30 share has dropped this year, the level has remained
high. However, strong new entry indicates that Low ASU30 will grow faster in future
and the segment will remain the major driver of industry growth.
Scissors & Senor Gold is declining making room for Star and Navy to grow
Like other regions Star and Navy are becoming the major two low segment brands. In
2003 both Scissors and Senor Gold have declined and the growth opportunity is
captured by Star and Navy.
Navy has grown faster than Star but recent trend indicates Star has higher
potential
65
Figure 21: Growth of Different Segment in Chittagong
Navy has experienced robust growth in all the parameters over the last two years. Star
has maintained its smoker share during the period while its ASU30 share declined.
However, Star has maintained strong new entry share indicating future potential for
growth in ASU30. This indicated Star’s growing strength vs. Navy in the region.
6.5.2 Medium Segment
Medium segment trend in Chittagong indicates potential for future growth
Though medium is still weaker vs. national in Chittagong, recent results indicate
significant improvement in all parameters. Particularly the growth in both ASU30 and
new entry showed promising results vs. national.
JPGL is weaker in urban centres in Chittagong
Though overall JPGL performance was well recently, deeper analysis reveals that
there are still few weaker areas in the region. JPGL has remained weak particularly in
Chittagong City and other Large Towns, where it has either declined or remained
stable. The main growth has come from either rural and smaller towns where it’s
share has remained smaller than National level.
6.5.3 Premium Segment
In all the key parameters of smoker share, ASU30 share and new entry share Premium
segment in Chittagong has remained much unexploited compared to National. Recent
trend in all of these key parameters indicates potential for faster growth.
B&H has weaker image in Chittagong compared to other regions
The major issue for B&H in Chittagong is image. Compared to other regions B&H
has lower image perception among target consumers in all the major parameters in
Chittagong. The region was always the major market of transit B&H. Locally
manufactured B&H had lower quality and image perception among the consumer who
were exposed to transit B&H. While B&H image has improved in other regions, in
Chittagong brand image remained flat at a significantly lower level.
B&H growth is faster in the areas where smokers are more exposed to Dhaka
Chittagong is the second most affluent city in Bangladesh. While people of other
districts in the region (closer to Dhaka) are dependent on Dhaka for economic and
66
business activities, while this is less a case for people of Chittagong. Accordingly,
interaction with Dhaka is lower compared to other districts.
6.6 Market and BATB’s Relative Share
BAT business performance in Chittagong region is very diverse from market to
market. Based on BAT share performance, these markets can be classified into three
broad groups: Green, Yellow and Red.
Green Markets: Markets where BAT has clear leadership i.e. BAT Market share is
more than 50%. Comilla, Daudkandi and Sitakunda markets are green which together
contributes 20% of Region’s total Industry.
Yellow Markets: Markets where BAT has some base but not leadership. i.e. BAT
share is between 30-49%. Chittagong, Feni, Rangamati, Khagrachari and Laksam are
yellow and together they contribute 50% of Region’s total industry volume.
Red Markets: Markets where BAT lack leadership and competition has dominance
i.e. BAT share is below 30%. Choumuhoni, Chandpur and Cox’s Bazaar markets are
red. Turnaround in these markets will require long term investment.
6.7 Market Growth Potential for BATB
Green markets provides the current volume base for BATB in the Region
Key characteristic of Green market is that the V. Low segment is significantly smaller
Vs. other markets in the region. Low is the dominating segment and BATB is already
a strong player. Also, these markets very closely resemble National scenario and
provides the major portion of BATB’s current volume base for the Region.
Green Yellow Red Region National
Premium Segment Size 6% 5% 4% 5% 8%
Medium Segment Size 17% 16% 13% 15% 17%
Low Segment Size 49% 39% 31% 39% 47%
Very Low Segment Size 28% 40% 53% 41% 27%
BAT Total Share 63% 41% 21% 38% 51%
67
(SRF+SSF) Combined
share40% 20% 3% 19% 24%
Table XIII: Segment Size and Market Share
Yellow and Red provide the future growth opportunity
Competitors’ volume in Red and Yellow markets is huge! Total competition volume
in these markets alone represents around 48% of the entire Region’s Low segment
volume! This leaves an enormous growth opportunity for BATB to capitalise on.
Also, among the Yellow and Red markets, the biggest opportunity lies in Yellow
markets, both in volume terms and also, from the fact that BATB has reasonable
presence and has already gained initial successes in these markets.
Market Type Green Yellow Red Region
Comp Volume within Low 16 mln 84 mln 72 mln 172 mln
Figure22: Volume Contribution – Yellow markets are the biggest
Yellow markets are the fastest growing markets in Chittagong
Yellow markets are also the most potential markets in the region. Contribution of
these markets is on a steady increasing trend over the last two years due to intense
competition and activity by the major brands.
Contributio
n
Green Yellow Red
2001 30% 49% 20%
2002 30% 51% 17%
2003 30% 53% 16%
68
Table XIV: Volume contribution by Market type
Yellow markets have provided highest growth for BAT over the last two
years
Despite not being a clear leader, contribution of Yellow markets to BATB business is
highest. Star has also gained higher growth in these markets.
GrowthBAT Growth Star Growth
Green Yellow Red Region Green Yellow Red Region
02 vs '01 28% 34% 11% 28% 49% 85% 220%* 68%
03 vs 02 16% 17% 3% 14% 28% 41% 10% 34%
*smaller base
Table XV: Growth trend by Market type
Navy is getting higher growth by capitalising on Red and Yellow markets
Unfortunately, Navy continued capitalising on the opportunities successfully
primarily in Yellow and Red markets; in fact, these are the markets where Navy has
registered higher growth in the Region. Star has also generated its due growth, but its
growth has slowed down significantly this year, particularly in Yellow and Red
markets. Moreover, in Red and Yellow markets, since it has been growing from a
very small base (hence, the growth rates are very high), Navy’s continued growth may
very well threaten Star’s presence in these markets, if it is not addressed immediately.
Off-take
growth %
Green Yellow Red Region
03 vs 02
02 vs 01
03 vs '02
02 vs 01
03 vs '02
02 vs 01
03 vs '02
02 vs 01
SRF 28% 49% 41% 85% 10% 225% 34% 68%
Navy 81% 25% 58% 41% 4% 20% 26% 34%
Table XVI: Offtake Growth trend of SRF and Navy
69
6.8 Chittagong Regional Scenario: Findings at a glance
Chittagong is a very promising market both in terms of size and opportunity.
However BAT’s presence in region is weakest among the six regions. Overall
BAT share has remained significantly below national share (Chittagong 38%,
National 51%).
Low segment provides the strongest growth opportunity in Chittagong. Low is
fuelling overall industry growth of the region.
Though medium is showing early signs of growth but full potential yet to be
explored.
Less focus on premium brands left the premium segment in Chittagong
significantly smaller than National.
BAT’s position across the region can be classified in three groups based on
share performance – Green markets, Yellow markets and Red markets.
Green is the market which BAT clearly dominates. This market constitute
BAT’s current volume base.
Yellow markets are the markets where BAT has reasonable share but weaker
than total competition.
Yellow markets provide the highest growth opportunity given their size and
competitive presence. BAT has already shown initial success in these markets
but due to heavy competitive pressure, competition is better capitalizing in
these markets than BAT. Without a focussed attention in these markets it is
deemed not possible to expand BAT’s presence in these yellow markets.
Red markets are the one where BAT is smaller than the biggest competition in
terms of total portfolio volume. Competition is extremely aggressive in these
markets and significant effort and time will be needed to dent competition
strength.
70
6.9 Action Plan for Gaining Market Leadership
Project Torpedo has been designed and will be implemented from 2004 in
order to accelerate growth in yellow markets and gain the absolute industry
leadership (50%) by 2008.
A pilot project for a selected red market would be developed and implemented
in order to prepare a business model to expand BAT business in markets
where BATB’s presence is significantly weaker than competition.
71
Chapter 7: Project Torpedo
7.1 Project Overview
Project Torpedo is aimed at establishing BAT dominance in Chittagong Region. The
project comprises of a set of marketing activities, in addition to national
cycle/marketing activities at specific identified markets, to exploit maximum growth
potential for BAT. These identified markets are primarily Yellow markets, where we
have reasonable base but not industry leadership. Major issues for BAT in these
markets are weaker performance of SRF vs Navy and slow up-trading rate to JPGL.
Project Torpedo will address these issues and build the base for sustainable growth.
Apart from this, Project Torpedo will also address weaker image perception of B&H
among Chittagong Metro Consumers and to device an effective turnaround strategy
for Red Market. The project will be rolled out in 2004 and it will focus on bringing
sustainable results throughout next few years.
7.2 Vision of the Project
“To establish strong leadership of BAT in Chittagong region through sustainable
growth of the drive brands in the portfolio by 2008.”
Strong leadership: meaning total market share above 50%. BAT currently holds 38%
market share in Chittagong region.
Sustainable growth: will be achieved through a 2% gain in market share each year
starting from 2004. It has earlier been established that every 3% volume share gain in
Chittagong results in 1% national share gain. Therefore the volume gain in
Chittagong region should result in 53.9% national market share achievement.
72
Year Chittagong Region share National share
2004 40.8 50.7
2005 42.8 51.3
2006 45.8 52.1
2007 48.8 53.0
2008 51.8 53.9
Table XVII: Project Torpedo result expectation
7.3 Objectives for 2004
Gain 2% total BAT share growth at the end of 2004.
Improve BAT share performance in ‘Yellow markets’ by 4% to facilitate
region’s 2% share growth target.
o by gaining 8% BAT Segment share growth in Low (from 49% to 57%)
and
o by improving JPGL share up to green market’s level (from 16% to
17%).
Improve B&H market share in Chittagong region through
o Improving image ratings of B&H in the region – at par with national
level
o Improving trial among ASU30 and bring it at par with national level
(trial among ASU30 in 2003: National – 27%; Chittagong – 10%)
Design and pilot Red market turnaround strategy in one single market
Develop a growth model for other markets (where we lack leadership) through
pilot run of new marketing initiatives.
7.4 Strategy
1. Prioritize Markets for faster growth
Design and implement market specific tailored activities in yellow markets
over normal cycle activity for a sustained period of time to establish BAT
leadership.
73
2. Select the right brand to drive in a particular market
Drive Brands for yellow markets will be SRF and JPGL based on individual
market’s nature and its primary issue/need. Activity of two brands and timing
of activities in these markets is carefully planned to avoid any overlap.
JPGL will be the drive brand in metro and urban centres and SRF will be the
drive brand in semi urban and thana based rural markets.
B&H specific image activities will be focussed on Chittagong metro city only.
3. Device focussed, high impact, brand specific consumer centred activity for
sustainable growth
JPGL & Star focussed activities will be centred around specific forms of
consumer contact and events, depending on individual market’s need and
opportunity.
JPGL & Star focussed activities will be rolled out in Blitz approach i.e. 3-7
days all out campaign to create desired impact in a market. This modality will
ensure meaningful impact over target consumers. Activities in general are;
o high impact 165 events and around 2,00,000 consumer contact among
JPGL franchise (consumers currently smoking JPGL) as well as SOBs
(Source of Business: currently smoking competition brands/lower price
brands) - to consolidate current position while accelerating up-trading
to JPGL
o high impact 360 events and around 3,00,000 consumer contact among
SRF SOBs that will generate switching from Navy to Star.
Ensure sustainable growth after a blitz activity in a particular market through
regular support activities.
Blitz activity will be repeated twice in a year in each targeted markets.
B&H focussed activity will be exclusive, high quality consumer interaction
events in Chittagong that have been proven successful in Dhaka.
4. Generate strong trade support behind Star & JPGL through out the year
Consumer activities will be backed up by trade loyalty program based on
necessity to generate push behind a particular brand.
74
Sustainable relationship with trade will be developed and nurtured through
regular field force and brand promoters to maintain growth momentum.
5. Long term focused investment plan for Red markets to build leadership
Implement phased activities in Red Market to build up reasonable base for
SRF- to turn it into yellow.
7.5 Scope of the Project
Activities proposed are in addition to national cycle and other planned
marketing activities. Activities will be designed and scheduled in a manner
that it will not effect implementation of national cycle.
Project activities will concentrate in Yellow Markets, namely- Chittagong city,
Feni, Khagrachari, Rangamati & Laksam.
Activities related to B&H image rating improvement will be confined within
Chittagong city-the only Metro city of the region.
Red Market turnaround plan will be executed on pilot basis in only one
selective red market.
7.6 Framework
Regional Manager, Chittagong will lead the project. He along with senior members
from central marketing team will formulate strategies and provide direction and inputs
in action planning. Project Leader will shoulder overall volume and share growth
responsibility. Furthermore, a CORA manager will be part of the team for maximum
PR exploitation in target markets.
A dedicated implementation team (one Territory Officer and one officer from HR)
will be responsible for designing, detail planning, implementing and evaluating
activities in coordination with core functional team (Area Managers and Territory
Officers). Implementation team will be responsible for efficient and effective
planning and implementation of activities, in consultation with Core Team, as per
planned schedule. A team of contractual personnel will be employed to implement the
activities.
Core functional team will be responsible for identifying and prioritising markets,
support implementation by mobilising necessary Distribution and Trade Marketing
75
forces and resources behind the activities. They will be responsible for volume and
share growth of their designated markets.
Chapter 8: Feni Distribution Market
8.1 Market OverviewThe Feni distribution market comprises of different individual green, yellow and red
markets. Overall it is considered as a yellow market. The detailed market
classification is given below:
Market Category Market Share
Baroyerhat
Green Above 50%
Gunoboti
Mohammad Ali
Ramgar
Heyacco
Feni Main
Yellow 30%-50%
Chagalnaiya
Sonagazi
Lemuya
DacBangla
Basurhat
Fulgazi
Red Below 30%Porshuram
Dagonbhuiyan
8.2 Sales Performance
8.2.1 Average Monthly Sales by Brand Brands 2002 2003 2004 (Avg.)
B&H 1154 2075 2487
SE555 105 19 10
JPGL 10108 11157 11680
76
CAPSTAN 79 90 70
SRF 2550 6179 8415
SSF1431 2240 2023
B&H
From the above statistics we see that B&H has experienced a high growth over the
last two years. In 2004, after the price change Feni has been retaining 65% of the
B&H volume and hopes to increase it to 70%.
SE555
The situation for SE555 is not appraising at all. The reason behind this is that most of
the SE555 consumers have been converted into B&H. As a result only a small scale
loyal consumer segment is left for this brand.
JPGL
JPGL is growing smoothly in the last two years. For the year 2004, Feni has target of
12.2 million average monthly sales. It is most likely that JPGL will continue its
smooth growth in the coming years.
Capstan
This brand peaked in 2003 and will grow even further in 2004. The regular supply of
this brand will enhance sales as the demand is still there in the market.
Star Filter
SRF is growing increasingly over the last two years. This brand will continue to grow
in the coming years because BATB is driving this brand in a mass scale with lot of
activities. Along with JPGL, SRF will be the dominating brand in Feni.
Scissors
Scissors has been established as a major brand in some specific markets. In Feni,
Bashurhat is one such market where Scissors is competing with Navy to lead the
market. Scissors experienced a growth in 2003 and has been stable so far.
77
Table XVIII: Monthly Sales Trend(Figures in ‘000)
0
2000
4000
6000
8000
10000
12000
14000
1 2 3
B&HSE555
JPGL
CAP
SRF
SSF
8.3 Competitive Scenario in Feni
Route
No.Route Details Navy Senor SRF SSF
1 Mohipal 49% 14% 35% 3%2 AB SSK, Hospital 61% 7% 28% 4%3 Station Road 57% 13% 28% 2%4 Trunk Road 52% 19% 26% 2%5 AB Takia Road/Ranir Hat 54% 23% 21% 2%6 AB Pachgasia/Lalpol 46% 30% 23% 1%7 AB Chagalnaiya/Fulgazi 49% 21% 29% 1%8 AB Dorbesherhat/Gunoboti 32% 7% 57% 5%9 AB Kuhuma/Fazilpur 55% 14% 30% 2%10 ABC Baroerhat/Sonagazi/Motigonj 15% 9% 74% 2%11 ABC Heyaco/Ramgar/BoxMohammad 15% 13% 71% 1%12 ABC Lashkarhat/Kajirhat/Shuvopur 45% 28% 24% 2%13 ABC Kuthirhat/Munshirhat/Momtazmia 52% 30% 16% 1%14 ABC Silonia/GM Hat/Lakkhiara 40% 35% 20% 5%15 AB Lemuya/Porshuram 42% 40% 17% 1%16 AB Sharshadi/Jagannath 20% 12% 65% 3%20 AB Bashurhat 35% 18% 3% 43%21 ABC 54% 13% 1% 32%
78
Figure 23: Sales Trend of Feni
22 AB 56% 19% 4% 21%23 ABC 64% 14% 1% 21%
8.4 Project Torpedo in FeniProject Torpedo has a special focus in Feni because the potential of this market is
very high. There is a lot of individual market where SRF is sharing the market with
Navy or Senor Gold. The activities in Feni focus in two brands- JPGL and SRF. There
will no activities for B&H in Feni, because the activities for B&H will only be carried
out in Chittagong metro city due to the consumer profile and volume share.
79
The torpedo activities in Feni can be divided into two parts-
John Player Gold Leaf (JPGL) Activity
Star Filter (SRF) Activity
JPGL Activity
There will be detailed marketing activities for JPGL. The activities will include
consumer contact, brand world experience, retailer engagement, trade promotion etc.
The detail plan of JPGL is stated later. For JPGL the target market in Feni main town.
The town will be divided into two hubs. In each hub there will be separate and similar
series of activities.
SRF Activity
The activities of Star Filter will include consumer contact, consumer engagement in
hotels, trade competition, Star world experience etc. The target market for these
activities will be the yellow outstation markets of Feni distribution market. The
markets are Chagalnaiya, Sonagazi, Lemuya and Kajirhat. The datiled plan is given
later.
80
Chapter 9: JPGL Activity Plan for Feni
9.1 Volume TargetMonthly volume target 12.2 mln.
9.2 Target MarketsUrban centers of yellow markets, having higher percentage of affluent SOB, are target
for JPGL Drive. Identified markets are
Feni Main Market
Hub 1 Mohipal/SSK Road
Hub 2 Trunk Road/Station Road
9.3 JPGL Specific Strategy Maintain loyalty of the franchise through high quality consumer reward
program.
Conduct extensive consumer contact in targeted hubs to generate trial and up-
trading among SOB.
Drive excitement around JPGL among selected target smokers and concerned
trade members through blitz marketing activity.
Reinforce brand awareness/loyalty through routine consumer contact and
small scale consumer engagement event throughout the year.
9.4 Activity grid
JPGL
Franchise
SOB
SmokersRetailers
Field
ForceMerchandising
Objective Ensure
loyalty
among
current
Ensure 30%
conversion
rate to
JPGL
a)Strengthen
relationship
b)Incentive
Give them
the feeling
of big
brand and
Support trade
and create a
brand world
81
consumers
to retailers
for sale
importance
of JPGL in
our
business
Modality
a)Consume
r contacts
b) HoReCa
engagemen
t
c) Caravan
d)Festival
celebration
a)Consume
r contact
b) HoReCa
Engagemen
t
c) Caravan
d) Festival
celebration
b) Trade
engagement
event-
family
night
c) Festival
celebration
a) JPGL
Brand
Orientatio
n.
b)JPGL
volume
driven
promotion
a) Superior
Quality Brand
communicatio
n through
JPGL flagship
outlet.
9.5 Detail Activity for JPGL
9.5.1 Consumer activity
Overall objective of the consumer contact of JPGL is to take consumer through
phases to have the ultimate brand experience. All the consumer related activities are
interlinked, which will be different phase of brand experience and selection modality
for the next phase. In each phase, the mix of JPGL franchise and SOB smokers will be
carefully maintained. The following diagram summarizes overall consumer
interaction plan for JPGL:
82
1st leg contact
SOB Franchise
Local BPs begin contact500/hub
2nd leg contact
BPs re-contact 50% of previous contact
BPs make new contacts
3rd leg contact
BPs re-contact with 50% of previous contact
BPs make new contacts
JPGL HoReCa BPs invite contacts to HoReCa
JPGL Caravan 30% HoReCa invitee attends Caravan
Blitz BPs contact franchise1200/hub
800 franchise contacts attend HoReCa
50% HoReCa franchise attends caravan
Festival Celebration
All caravan attendee receives JPGL give-away.
83
Brand Promoter Contacting Consumer
9.5.2 Administration of the ActivitiesTwo kind of BPs have been recruited:
1. Permanent BPs will be stationed in selected hubs. They will be responsible for
SOB contact and re-contact. There are 4 JPGL BPs for Feni.
2. Blitz BP travels with Caravan and after reaching a market contact JPGL
franchise of that hub. There are 10 Blitz BP.
3. HoReCa engagement event has been rolled out at this stage. 1300 already
contacted franchise and SOB were invited into HoReCa event.
4. Within a week of HoReCa event Caravan reached the market. Only 550
consumers had the privilege of enjoying the ultimate Brand world experience.
5. In this process, around 10000 consumers in two hubs of Feni will have some
form interaction with JPGL.
9.5.3 Consumer Contact Contact phase Nature of contact/BP No. of contact/BP Total contact/ hub
1st leg SOB New 250 500
2nd leg SOB Re-contact 150 500
New 100
3rd leg SOB Re-contact from 1st leg 50 500
Re-contact from 2nd leg 75
New contact 125
Franchise contact New 120 1200
HoReCa (SOB) Re-contact 250 500
HoReCa
(Franchise)
Re-contact 400 800
Caravan SOB 75 550
Franchise 200
Festival greeting SOB 75 550
Franchise 200
Total contact in a
hub
5100
Total contact in 2
hubs
10200
84
9.5.4 HoReCa (Hotel Restaurant Café) campaign
A pre-selected Horeca was decorated for whole day. Brand promoters invited selected
consumers for refreshment, to be sponsored by JPGL. The consumer mix was 60%
JPGL franchise and 40% target SOB consumers. Brand promoters contacted target
SOB consumers from sampling.
9.5.5 JPGL Caravan
Objective
Invite JPGL franchise and high potential SOB from HoReCa campaign.
Facilitate up trading for target SOB by giving them a convincing brand
communication and generate trial.
Achieve 30% conversion rate
The Concept
JPGL caravan is a bus with specially equipped audio-visual and computer
equipments. The bus environment is tailored to provide a complete JPGL
brand experience.
The caravan will move between pre-selected hubs, as per a pre-fixed schedule.
The bus will include six stations each fitted with a computer and screen
o Each station will have it’s own headphone and keyboard.
Each consumer will be taken through an interactive audio-visual experience of
the brand focusing on five aspects
o Introduction to the brand world
85
Horeca Campaign of JPGL
o History of the brand
o Success in Bangladesh
o Product Message
o Cycle Message
Figure 24: Caravan layout
The interactive aspect will come at certain steps where the consumer will have
to ‘cross’ obstacles thrown his way
o These could be questions/tasks that have an interactive element
o Four different types of packs could come on screen asking him to
identify the correct JPGL pack
86
o The pack elements might be appear on screen asking to point-and-click
and assemble the JPGL pack
These will all be presented in a ‘high-tech’ manner with aural effects to
enhance his experience
o Give him something to talk about
The interior branding will also be such as he has never seen before.
Management Modality
Invitation cards with two sticks in sampling pack (to facilitate trial) were
handed over to consumers by brand promoters (BP). Each event covers 550
franchise & SOB.
Territory Officer managed invitation distribution in conjunction with BPs. The
site was decorated with POS.
Selection of invitee from locality was ensured for smooth re-contact.
Invited consumers were given a brief about caravan experience modality.
The BP settled them in their station and the experience begins.
Once experience is finished, he is given a leaflet that summarizes what he has
been through and helps him in spreading the word.
There was one BP on that day to manage the consumers and one technical
person/BP who handled both consumers and software/hardware issues.
At each site, local BPs were assigned beforehand to manage the crowd and
local issues.
87
JPGL Caravan
9.5.6 Festival Celebration
All caravan attendees will be sent festival greetings & give-aways during festival
celebration period.
9.5.7 Trade related activityObjective of the trade related activity is to establish and nurture long term relationship
with the retailers to ensure support behind JPGL. Most supportive retailers were be
selected in phases and will be rewarded for their support. While designing support
activities, focus will be on trade recognition and relationship development activities
rather than sales competition.
Figure 25: Trade Related Activities
a) Trade contact: Engagement events will be conducted with snacks and
entertainment in HoReCa with 300 retailers per event.
b) Eid greeting circulated through eid cards. It will cover DSD outlets before eid
(there will be two eids in 2004).
c) Trade Family Night: BAT will invite 300 top retailers to a JPGL Family Night
program. These retailers will be chosen on the basis of two criteria – 1) sales volume
and 2) influence on local business community.
Retailer involvement
through trade contact
Festival celebration with
DSD Retailer
Retailer & Spouse will be invited in Trade Family Night
88
9.5.8 MerchandisingObjective of JPGL merchandising is to promote the international image of the brand
and maintain awareness through high impact visibility.
9.5.9 Field force RewardObjective
To create winning attitude among the field force of selected Yellow markets.
Frequency
Once in every quarter
Modality
Step 1: At the beginning of the project, the field force will be briefed on JPGL to
increase their appreciation about the Brand. Torpedo objectives and their
responsibility will also be communicated.
Step 2: The field force members will win the prize on the basis of accumulated point
at the end of 6 months. Prize will be incremental for successful field force members.
Step 3: Base station TO will establish a competition where the point accumulation of
each field force member will be highlighted & updated on a regular basis.
Brand World orientation: To reinforce confidence on JPGL, a briefing session will
be organised for field force. It will highlight JPGL Brand world through audio visual
aid
9.6 Activity Progress
The JPGL activities in Feni have progressed in good. All the activities are going
according to the plan. The status of the plan is given below:
Activity Status Details
Consumer Contact Completed Total Contact=10125
Horeca Completed Two Horeca Organized
Caravan Completed Continued for 14 days
Field Force Competition Pending
Trade Contact/Engagement Completed 250 retailers participated
in one event
Festival Greeting Pending
Trade Family Night Pending
89
Chapter 10: Star Filter Activity Plan for Feni
10.1 Volume Monthly target 9 mln.
10.2 Target MarketsGenerally Semi-urban and thana-based rural centres of Feni are the target markets.
The markets selected for the activities are
Hub 1 Chagalnaiya
Hub 2 Sonagazi
Hub 3 Lemuya/Samitirbazar
Hub 4 Kajirhat/Baktarmunshi
10.3 Star Specific StrategyDrive trial and conversion among competition smokers through 1-2-1
consumer contact.
Develop relationship with key competition Tk.1 smokers to influence
conversion of their peers.
Provide brand experience to the franchise and potential competition
smokers in branded events throughout the year to ensure loyalty.
Drive excitement around SRF in selected market/hub through in every 2-3
months interval and reinforce brand awareness and loyalty.
Implement special cycle activities in selected Yellow markets to improve
awareness and image of the brand.
Improve Star distribution in identified Yellow markets through market
specific trade promotion and trade incentives.
Encourage brand advocacy by the influential retailers through robust trade
engagement program.
Create winning attitude among the field force through competition.
90
10.4 Activity grid
Competition & SOB smokers
Franchise Trade Field force
Objective Induce switch among competition and SOB smoker
Ensure loyalty among current consumers
a)Competitive edge over Competition in terms of SRF stocking
b) Convince and advise to smoke SRF to SOB smokers
Create drive in DRs to improve trade relationship & increased SRF volume
Modality a) Consumer contact
b) Consumer re-contacts
c) HoReCa engagement events
d) Star World- special event
e) Festival Greeting
a) Consumer contacts
b) HoReCa engagement event
c) Star World
a) Retail relationship development event b) HoReCa engagement event
c) Route C&C competition
a) Volume driven promotion
b) Distribution support- hilly areas
Number of contact
5760 1280
91
10.5 Detail Activity Plan for Star
10.5.1 Consumer Contact
Consumer contact will drive relationship with the smokers, thus ensuring conversion
and loyalty. All the consumer related activities are interlinked and the consumers will
be rewarded in phases.
1st leg contact
Competition & SOB
Franchise
Local RDTs make 720 contacts
2nd leg contact
RDTs re-contact 50% of previous contact
RDTs make similar new contact
3rd leg contact
RDTs re-contact with 50% of previous contact
RDTs make similar new contact
Star HoReCa RDTs invite 540 contact to HoReCa
Star World 270 HoReCa invitees attend Star World
RDTs contact 320 franchise
All the previous contacts attend HoReCa
130 HoReCa franchise attends Star World
Festival greetings
All Star World attendee receive greeting card & give-away.
92
10.5.2 Administration of the Activities
6 RDTs have been recruited:
1. The RDTs have been recruited for selected markets.
2. In each hub, RDTs will contact competition & SOB smokers primarily for
three weeks. The number of contact for in each week will be 720.
3. After their contact, HoReCa campaign for 540 target competition & SOB
smokers will be rolled out in the target hub.
4. After SOB HoReCa campaign, RDTs will make 320 franchise contacts in the
target hub. They will cover 320 contacts. It will be followed by franchise
HoreCa campaign for all franchise contacts.
5. Once all the HoReCa campaigns have been rolled out, Star World activity will
be held in target hub. Only 400 HoReCa puzzle winners will have the
privilege to join the Star World experience.
6. The Star World experience will be reinforced with festival greeting and give-
aways.
10.5.3 HoReCa campaign
Objective
Engage Consumers with SRF in an exclusive SRF Branded environment with active
support from HoReCa owner and surrounding retailers.
Modality
RDT members will identify potential switchers during his re-contact and invite
them through coupons to local HoReCa for the event.
The HoReCa will be decorated and branded with SRFT POS materials to
ensure exposure the Star brand world.
Once they come in, RDT members will treat them to free refreshment &
arrange sampling.
The invitees will enjoy Star sponsored refreshment and get a SRFT discount
coupon from the HoReCa Owner
By producing the coupon he can get 3 sticks of SRFT by spending only Tk 2
in surrounding outlet.
93
RDT will engage targeted consumers in a simple puzzle game. If he wins, he
will earn the ticket to attend Star World program.
10.5.4 Star World
Objective
Generate positive awareness of Star among the Tk. 1 competition smoker
Generate trial among SOB smokers.
Target Consumers
ASU30 competition Tk. 1 brand smokers and SOB smokers (22,400 smokers will be
covered through 56 events).
Modality
HoReCa puzzle winners will be invited to Star World campaign.
There will be arrangement with local cinema hall owner/ community centre
owner to arrange show of the most favourite movie for our invited guest only.
A small briefing about SRFT through an AV before the show and after
interval
Providing 1 pack of SRFT 10ss while departing from the venue as a gift.
Security Measures
Preparation & management of the event as per checklist (prepared in
consultation with Security team).
Local security force will be deployed during the event.
Ensure support from administration through distributors in conducting the
event.
Exclusive POS campaign in surrounding clusters:
Retailers around Star World event area (10 clusters/event) will have POS campaign
coverage using poster, bunting, banner and Roman banner to create an overall impact
among the smokers. A total of 560 clusters will be covered during Star World activity.
10.5.5 Additional POS campaign:
In every 2-3 months interval POS campaign will be rolled out in 3rd week of the
months when there is no priority activity of national cycle on those markets. Timing
as per current cycle grid is – February, April & September. These will be based in
94
addition to regular Star cycle activity during premium cycle activity in the selected
Yellow markets having awareness issue. This POS bas campaign will be supported
through consumer contact and trade related activities.
10.5.6 Trade Related Activity
Objective
To generate strong trade push behind Star to reward retailers for their support. Also to
create brand advocates among the retailers.
Level I: Regular trade activity
a) Blitz brief: Permanent Relationship development team (RDT) members will
contact retailers and brief them about Star Blitz activities two working days
prior to the event.
Level II-Focussed trade activity
a) Special distribution support: Special distribution support (DDSD) during
blitz period in selected hubs through concerned distributors.
b) Route C&C: One month long SRF volume driven promotion with
incremental target in every week. Successful C&C will get utility gifts- dinner
set, table fan etc.
c) Sales exclusivity program: Sales Exclusivity program will be rolled out.
Under this program 50 retailers in proximity to Star World programs, will be
offered additional profit margin that he would have earned from selling
competition brands during exclusivity. This activity will be monitored by
dedicated supervisor.
d) Point based trade competition: The objective is to ensure reach and
reasonable stocking drive. Target participants will be all outlets in the Star
World hub during first Star World event. The retailers will earn points in each
lifting; following are the milestones to achieve for rewards. Earned points will
be exchanged with gifts.
G Sticks
95
i
f
t
s
800Points 25 Glass
2000 50 Hot Carrier
3000 75 Umbrella
4000 100 Radio
5000 125 Cup-Set
6000 150 Soup Set
7000 175 Dinner Set
8000 200 Blender
9000 225 6” TV
10000 250 VCD player
11000 275 14” B&W TV
15000 375 14” colour TV
Level-III: Retail advocacy establishment:
a) Star HoReCa: 300 retailers in each hub will be invited to take in the
Star HoReCa experience. These retailers will be both volume
contributors and influential retailer in local community.
b) Star Family Day: BAT will invite 300 top retailers from Feni to a Star
Family Day program. These retailers will be chosen on the basis of two
criterions – 1) Their sales volume and 2) Their influence in local
business community. Through the program, BAT intends to create
retail advocates who will promote Star strongly among peer trade
community. BAT will invite these retailers & their spouses to a local
picnic spot and treat them to lunch.
10.5.7 Merchandising
a) Regular: To establish dominant presence of SRF, additional 2350 merchandising
units will be placed in targeted outlets of 28 Hubs. The distribution of these
merchandising will be based on volume share, and DSD coverage in target outlets.
96
Market Facia In-store
Feni 329 113
10.5.8 Field Force Competition
Objective
To create winning attitude among the field force of Feni Distribution Market.
Frequency
Once in every quarter
Coverage
Distribution house Number of field force
Feni 48
Modality
Step 1: At the beginning of the project, the field force will be communicated the
distribution house target, their split and competition modality.
Step 2: The field force members will win the prize on the basis of accumulated point
at the end of 6 months. Prize will be incremental for successful field force members.
Step 3: Base station TO will establish a competition where the point accumulation of
each field force member will be highlighted & updated on a regular basis.
10.6 Activity Progress
Activity Status
Chagalnaiya
Consumer Contact Completed
Horeca Completed
Star World Completed
Festival Greeting Pending
Trade Competition Completed
Trade Engagement Pending
Sonagazi Consumer Contact Completed
Horeca Completed
Star World Completed
Festival Greeting Pending
97
Trade Competition Completed
Trade Engagement Pending
Lemuya
Consumer Contact Completed
Horeca Pending
Star World Pending
Festival Greeting Pending
Trade Competition Completed
Trade Engagement Pending
Kajirhat
Consumer Contact Completed
Horeca Pending
Star Wprld Pending
Festival Greeting Pending
Trade Competition Completed
Trade Engagement Pending
98
Chapter 11: Result, Analysis and Findings
11.1 Sales Performance of JPGLAccording to the plan, the monthly target for JPGL in Feni was 12.2 million. Feni has
performed quite well till April. They have achieved 12.2 million in one month
already. The sales were down in February and April because of less number of
working days. The progress is good so far and it seems that the sales will grow even
higher in the second half of the year.
January 04 February 04 March 04 April 04 May 04
JPGL 12097 10739 12202 10936 12094
Table XIX: Monthly Sales Performance of Feni (Figures in ‘000)
Monthly Sales 2004: JPGL
10.00
10.50
11.00
11.50
12.00
12.50
January February March April May
Month
Volu
me(
in m
illio
ns)
Figure 26: JPGL 2004 Sales Trend of Feni
99
11.1 1 Sales Performance of Target Hubs
From the data below we see that in both the hubs the sales of JPGL have increased.
This is due to the result of the JPGL activities performed. A great hype and
excitement had been created about JPGL which has led to a significant amount of up-
gradation and brand loyalty.
January 04 February 04 March 04 April 04 May 04
Hub 1 597.8 553.1 740.04 715.10 745.24
Hub 2 543.52 445.9 628.16 609.67 630.10
Table XX: Monthly Sales Performance of JPGL Hubs (Figures in ‘000)
JPGL Sales by Hub
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
January February March April May
Month
Hub 1Hub 2Linear (Hub 2)Linear (Hub 1)
Figure 27: Sales Trend of JPGL in Target Hubs
11.2 Sales Performance of Star FilterIn 2004, the monthly sales target for Star Filter under Project Torpedo is 9 million
sticks. So far SRF has not reached 9 million in any month. But the result are not so
bad yet. The sales almost reached the target in May, but were short by only 65
100
thousand. It is more likely that SRF will gain growth in the second half of the year as
there are still a lot of activities left to perform in some target hubs.
January 04 February 04 March 04 April 04 May 04
SRF 8802 8120 8305 7725 8935
Table XXI: 2004 Monthly Sales Performnace of SRF(Figures in ‘000)
From the figure below we see a slight declining trend of SRF. It is due to low sales in
April. But it is not significant because the sales of April were low due to less number
of working days.
Monthly Sales 2004:Star Filter
7.00
7.50
8.00
8.50
9.00
9.50
January February March April May
Months
Volu
me(
in m
illio
ns)
Figure 28: Sales Trend of SRF in 2004
11.2.1 Sales performance of Target Hubs
Chagalnaiya
Chagalnaiya is showing good results in terms of activities performed and sales return.
Most of the planned activities under the project have been completed here. As a result,
the sales have been positively affected. An increasing trend is showing in the SRF
sales in 2004. Especially in April there was a bumper sale due to mainly trade
101
promotion. The sales are not stable yet, but there are still more activities to come
which will create more excitement among the consumers and trade.
January 04 February 04 March 04 April 04 May 04
SRF 204850 155450 213120 273100 206000
Table XXII: SRF Sales of Chagalnaiya
SRF Sales Progress 2004: Chagalnaiya
0
50000
100000
150000
200000
250000
300000
January February March April May
Figure 29: SRF Sales Trend of Chagalnaiya
Sonagazi
Among all the hubs Sonagazi has reacted most positively for SRF. As Chagalnaiya,
most of the activities are performed. The effect on sales is very encouraging.
Currently, the sales are showing a high increasing trend. It seems that the sales are
starting to stabilize from the month of May.
January 04 February 04 March 04 April 04 May 04
SRF 153320 157540 178970 222310 20300
Table XXIII: SRF Sales of Sonagazi
102
SRF Sales Progress 2004: Sonagazi
0
50000
100000
150000
200000
250000
January February March April May
Figure 30: SRF Sales Trend of Sonagazi
Lemuya
In this hub, the consumer related activities is still at the initial level. Only the
consumer contacts have been made, the Horeca event is not done yet. As a result, the
excitement and hype has not been generated yet in this market. The sales are showing
slight increase. After Horeca event, it is likely that sales will rise further.
January 04 February 04 March 04 April 04 May 04
SRF 131360 108000 126220 110450 135300
Table XXIV: SRF Sales of Lemuya
SRF Sales Progress 2004: Lemuya
0
20000
40000
60000
80000
100000
120000
140000
160000
January February March April May
Figure 31: SRF Sales Trend of Lemuya
103
Kajirhat
The situation in this hub is same as Lemuya. Consumer contacts have been completed
only. So far, slow increasing trend in sales are providing good signs. In the coming
months Horeca events and trade related activities will help to boost up the sales
further.
January 04 February 04 March 04 April 04 May 04
SRF 161580 124600 162200 136100 165880
Table XXV: SRF Sales of Kajirhat
SRF Sales Progress 2004: Kajirhat
0
20000400006000080000
100000
120000140000160000
180000
January February March April May
Figure 32: SRF Sales Trend of Kajirhat
104
Chapter 12: Strategic Implication of Project Torpedo for
BATB
12.1 Implications for Chittagong MarketProject Torpedo is a very important project, in the sense that it is supposed to improve
British American Tobacco Bangladesh performance and brand standing in
Chittagong. The project is worth 25 million Taka. So strategically this project is very
much a key concern regarding the marketing activities and financial returns.
First of all, the creative and aggressive marketing strategies used in the Chittagong
market calls for great amount market positioning. Each activity is designed and
customized according to the market dynamics. So the successful implementation of
these activities is very much essential to make an impact. The ultimate outcome of the
project is the sales volume. Strategically, if BATB does not get the result with this
project it would be difficult for them to capture the desired market at some later point
in time. So it is high time for BATB to grab the competitive edge in these yellow
markets.
Secondly, the critical strategic factor for BATB regarding this project is the additional
volume gained at the end of the year. The additional volume expected from the region
is as follows:
Brand Additional Volume from Yellow markets of Ctg.
John Player Gold Leaf 9 million/month
Star Filter 15 million/month
These additional volume is very critical regarding gaining the overall market share of
the region and thus to improve the national market share by 2% at the end of the year.
Thirdly, BATB is investing a lot of money in this project. 25 million Taka in one year
is a lot. So through out the year if the money is not utilized properly, the result will
not come. The potential is there in the market, under utilization of the fund would also
be failure in terms of not availing the opportunity. Therefore, proper utilization of the
fund is strategically very important for BATB.
105
12.2 Feni: Key Strategic Market for Project TorpedoFeni is a very crucial yellow market for Project Torpedo. It is a market where BATB
has 25 million sticks sold in every month. So volume wise, Feni is a very important
market to invest on. The activities in this market are very well planned out as
mentioned earlier. If these activities give result, there will be a good amount of added
volume at the end of the year which will help to achieve the overall volume target of
Chittagong region.
The activities under Project Torpedo will put a significant strategic effect in Feni. The
main effects will be:
Strong Consumer Base: After all the activities with the consumers there will
be a larger loyal consumer base for JPGL and Star Filter. There will be more
possibility of consumers’ attachment with the brand.
Retail Support: Retailers will be very much supportive to the company in
terms of selling the brands and helping in the WOM campaign.
Overall, the activities will bring in some very strategic advantage in the regular
business operation in future.
106
Chapter 13: Recommendation and Conclusion
13.1 RecommendationThe marketing activities under Project Torpedo are mostly related to consumers and
retailers. The main modality behind all the activities is communication and relation.
So to make the communication more effective I think the following measures should
be taken.
Consumer Related Activities
It is highly necessary to monitor the activities of Brand Promoters more
frequently. Whether the brand promoters are contacting the target consumers
with proper method needs to be monitored. Random visit by management in
the specific markets where BPs worked might be a good way of monitoring. A
BPs need to be very careful and observant in selecting the right consumers for
re-contacting. There is no point is giving time to consumers who are hard core
brand loyal to competition brands. Rather, the BPs should target the
consumers who are more interested in their communication and shows sign to
get converted.
BPs should focus more on consumers between the age bracket of 18 to 30
years of age. This age group can become the future opinion leaders and
permanent customer base.
Trade Related Activities
Regarding the trade promotion activities, it is highly necessary to take the
correct Average Daily Sales (ADS) of the outlets. Because the volume target
given in the promotion will be based on the ADS of each outlet. So it is
important to collect the correct ADS to give a correct and achievable target to
the retailers.
Frequent visit by management in the target markets is necessary to build good
relationship with the retailers. A strong relationship with a retailer can be a
very strategic advantage in gaining the volume share.
Merchandising
The merchandising materials like posters should be placed in key transit point
and consumer gathering places. The visibility needs to be created regularly. So
107
in the target markets, placing posters regularly can become very effective
regarding strong visibility.
Permanent merchandising materials should be placed in the target markets as
many as possible. The objective should be to get most number of outlets
branded with BATB product.
13.2 ConclusionBATB being the market leader in the cigarette market is not complacent at all. It
continuously tries to enhance its business performance in every aspect. Project
Torpedo is such an initiative from BATB with a view to extend their leadership
further in the Chittagong region. Chittagong is a very lucrative market for BATB in
terms of its characteristics and potential. As a result, a huge investment in the form of
Project Torpedo is going on with great pace.
Feni is one of the special focuses under the project. As a market, Feni is improving
day by day. Under Project Torpedo, this market has gained a special focus and BATB
is very optimistic in winning and dominate this market completely. Successful
implementation of all the activities in proper manner will be key to BATB’s success
of Project Torpedo in Feni.
108
Take Aways
The cigarette industry in Bangladesh is divided into two markets-Biri market
and Ciagrette Market.
Bidi Market comprises around 70% of the industry where cigarette market is
made of with the rest 30%.
6.4 million adult male smokers comprises the industry.
BATB leads the national cigarette market with 51% market share. BATB’s
only competition is in Tk.1 segment with Dhaka Tobacco. Star Filter and
Navy is fighting to dominate the market in one Taka.
BATB provides 7% of the total revenue earned by Government of Bangladesh
in very year.
John Player Gold Leaf and Star Filter are the driving brands for BATB.
The price of Benson & Hedges has been increased from Tk.3 to Tk.4 due to
increase in price of imported tobacco, currency rate and government tax.
Chiitagong is the biggest region for BATB in terms of volume contribution. It
contributes about 29% of the national cigarette industry.
In Feni, Project Torpedo is implemented to drive JPGL and Star Filter. Under
this project, the average monthly volume target for JPGL and Star Filter is
12.2 million and 9 million respectively.
The activities are under Project Torpedo comprises of consumer contacting,
Horeca events, brand world experience, trade engagement program, trade
promotion and field force promotions.
109
Annexure
Feni Market: Route Wise Details
Route 1: Mohipal
B&H SE555 RMF JPGL CAP SRF SSFDec 03 169.2 2.08 315.66 7.62 192.52 12.26
January 170.00 2.08 - 265.00 7.00 185.00 12.00February 128.00 1.54 6.00 270.00 3.50 192.00 16.00March 99.00 2.30 4.14 364.00 4.50 220.00 15.00
Route 1: Mohipal
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
January February March
B&H
JPGLSRFLinear (JPGL)
Linear (B&H)Linear (SRF)
Analysis
JPGL experiencing an increasing growth in this route. This trend may be an
outcome of the Torpedo activities and Rainbow effect.
B&H has decreased due to the price increase in the month of February. But
sales has stabilized from March onwards.
Star Filter is enjoying a steady situation in this route. Continuous focus from
DRs can sustain this steady growth.
110
Route 2: SSK, Hospital Road
B&H SE555 RMF JPGL CAP SRF SSFDec 03 106.96 0.44 144.5 2.54 52.57 6.84January 172.28 0.80 332.80 2.28 203.82 22.28February 114.42 0.66 8.64 283.10 0.76 135.01 19.68March 111.76 0.68 6.58 376.04 1.40 157.60 20.74
Route 2AB: SSK/HOSPITAL
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
January February March
B&HJPGLSRF
Analysis
JPGL is showing a good increase in March due to torpedo activities. The drop
in February is due to less number of working days available.
B&H is showed a stable situation regardless of the price increase. The March
sale was at par with the February sales-this shows a high retention of B&H
volume in this route.
Star Filter is showing a variable picture here. The January sale was high due to
Eid and the February drop was due to the working days. This route needs
special attention from the DR level.
111
Route 3: Station Road
B&H SE555 RMF JPGL CAP SRF SSFDec 03 139.02 1.34 305.56 7.76 166.8 21.14
January 126.62 1.20 242.52 5.48 132.34 1.35February 89.62 1.16 230.70 1.30 143.94 16.18March 81.00 1.34 2.34 325.16 4.52 193.71 22.40
Route 3: Station Road
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
January February March
B&HJPGL
SRF
Analysis
JPGL experienced high growth in March.
Star Filter growing consistently in this route. We need to get most out of this
growth by keeping special focus.
B&H has showed good retention in this route compared to February sales.
112
Route 4: Trunk Road
B&H SE555 RMF JPGL CAP SRF SSF
Dec 03 140.54 2.78 266.4 9.46 137.37 11.6January 153.60 0.29 301.00 159.00 18.00
February 93.30 3.10 215.20 148.00 14.60
March 108.00 2.70 3.90 303.00 170.00 4.10
Route 4: Trunk Road
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
January February March
B&H
JPGLSRF
Analysis
JPGL showing good volume in January and March.
Star Filter is stable. Special drive is needed in the form of trade competition.
B&H showed good performance in retention.
Route 5: Takia Road/RanirHat
B&H SE555 RMF JPGL CAP SRF SSF
Dec 03 79.74 0.08 188.6 3.34 83.55 7.76January 60.12 0.16 158.78 4.46 76.90 10.53
February 52.16 5.40 208.36 1.62 174.21 13.52
March 48.92 5.42 250.52 4.67 148.46
113
Route 5 AB: Takia Road/Ranirhat
0.00
50.00
100.00
150.00
200.00
250.00
300.00
January February March
B&H
JPGLSRF
Linear (JPGL)Linear (B&H)
Linear (SRF)
Analysis
JPGL got consistent growth in these three months. We need to get maximum
growth before it reaches stability.
SRF dropped in March significantly. DR needs to be briefed specially and
retail relation is highly necessary.
B&H is performing very well in terms of retention. It is retaining about 80%
of January sale.
Route 6: Pachgasia/Lalpool
B&H SE555 RMF JPGL CAP SRF SSF
Dec 03 74.06 0.00 224.70 0.00 89.21 17.10January 57.00 0.04 142.20 4.30 94.00 5.30
February 53.70 0.04 2.80 169.20 0.90 102.00 4.20
March 48.00 1.70 236.00 0.80 139.00 4.40
114
Route 6: Pachgasia/Lalpol
0.00
50.00
100.00
150.00
200.00
250.00
January February March
B&H
JPGLSRF
Analysis
JPGL and Star Filter enjoyed significant increase in March. We need to push
this growth further to establish our base.
B&H situation is average in this route. Retention is quite good.
Route 7: Chagalnaiya/Fulgazi
B&H SE555 RMF JPGL CAP SRF SSFDec 03 20.60 0.22 47.30 0.24 22.55 0.40
January 95.30 553.00 0.50 249.00 2.70February 83.60 0.80 3.70 556.00 0.60 219.00 3.90March 66.50 0.90 2.50 624.00 2.10 256.00 22.00
115
Route 7: Chagalnaiya/Fulgazi
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
January February March
B&H
JPGLSRF
Analysis
Overall sales here are relatively stable here. The JPGL has shown slow growth
in first three months. Trade level activities can be effective to boost this sales
up.
SRF is experiencing steady movement. I think that recent Torpedo activities
and trade competitions will increase sales in Chagalnaiya from April onwards.
This will help to create a firm base of SRF in Chagalnaiya.
B&H dropped in March, but will stabilize automatically. WOM campaigns
needs to be continued regularly.
Route 8: Dorbesherhat/Gunoboti
B&H SE555 RMF JPGL CAP SRF SSFDec 03 66.96 0.00 424.38 6.30 839.25 50.44
January 64.14 430.54 8.28 800.74 72.14February 79.18 3.08 438.70 4.86 895.78 68.92March 47.42 2.34 553.24 3.70 924.57 68.38
116
Route 8: Dorbesherhat/Gunoboti
0.00100.00200.00300.00400.00500.00600.00700.00800.00900.00
1000.00
January February March
B&HJPGLSRF
Analysis
SRF is very strong in this route. But still the growth in March is not so
significant. We need to maintain full-proof distribution in this route. DRs need
to be very focused in covering every outlet.
JPGL enjoyed good growth in March. We need to focus in maintaining this
situation.
Route 9: Kuhuma/Fazilpur
B&H SE555 RMF JPGL CAP SRF SSFDec 03 71.36 371.66 4.28 255.23 7.78
January 46.86 211.86 1.60 137.69 3.42February 62.34 3.04 327.94 1.08 171.42 10.50March 26.62 1.24 336.14 1.24 164.28 11.08
117
Route 9: Kuhuma/Fazilpur
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
January February March
B&HJPGLSRF
Analysis
B&H has dropped significantly in March. Special attention from WOM
campaign in needed. Retail relation is also important here.
SRF has dropped in March compared to February. We need to find out the
problem and go for trade level activities.
Route 10: Baroerhat/Sonagazi/Motigonj
B&H SE555 RMF JPGL CAP SRF SSFDec 03 163.36 1.62 555.76 2.10 679.55 62.12January 332.30 1.00 1329.00 2.20 2180.00 95.00February 223.30 0.80 14.20 1142.00 1.40 1633.00 7.90March 165.00 1.20 6.30 1468.00 2.50 2173.00 96.00
118
Route 10: B.Hat/Sonagazi/Motiganz
0.00
500.00
1000.00
1500.00
2000.00
2500.00
January February March
B&HJPGL
SRF
Analysis
Another strong market for SRF. Regained the January volume in March. We
need to maintain this growth and do some trade promotion to further increase
the sale.
Extensive distribution needed for JPGL for further increase. Utilize the March
growth as communication.
Route 11: Heyaco/Ramgar/BoxMohammad
B&H SE555 RMF JPGL CAP SRF SSFDec 03 77.40 322.40 1.00 1089.18 1.16
January 106.10 509.20 1.20 1167.00 10.40February 84.40 2.50 462.20 1.50 1192.00 7.80March 52.70 0.60 554.00 2.00 1282.70 7.50
119
Route 11: Heyaco/Ramgar/BoxMoh.
0.00
200.00
400.00
600.00
800.00
1000.00
1200.00
1400.00
January February March
B&HJPGL
SRF
Analysis
Special drive needed for JPGL growth. Trade level activities can benefit.
Huge market for SRF. Need to maintain the growth.
Route 12: LashkarHat/KajirHat/Shuvopur
B&H SE555 RMF JPGL CAP SRF SSFDec 03 79.60 0.00 493.80 2.02 131.66 8.76
January 81.00 525.00 0.80 290.00 41.00February 57.00 2.30 393.00 0.80 170.00 11.50March 32.00 2.50 430.00 220.00 11.00
120
Route 12: Las.Hat/Kaj.Hat/Shuvopur
0.00
100.00
200.00
300.00
400.00
500.00
600.00
January February March
B&HJPGL
SRF
Analysis
JPGL & SRF experienced mega sale in January due to Eid. Gain stability in
March. Need special distribution effort in this route.
B&H slowing down, immediate WOM and retail communication needed.
Route 13: KuthirHat/MunshirHat/Momtazmia
B&H SE555 RMF JPGL CAP SRF SSFDec 03 106.70 0.42 562.70 7.20 193.54 13.14
January 113.10 1.34 552.92 3.60 164.67 10.82February 69.06 1.04 5.30 400.52 1.14 132.15 7.66March 41.24 0.48 2.98 473.24 0.30 151.77 9.08
121
Route 13: Kut.Hat/Mun.Hat/Mamtazmia
0.00
100.00
200.00
300.00
400.00
500.00
600.00
January February March
B&HJPGL
SRF
Analysis
Mega Sale of JPGL in January. Regained volume in March.
SRF is stable. Maintain DR level focus in the route.
Significant drop in B&H. Need immediate attention.
Route 14: Silonia/GMHat/Lakkhiara
B&H SE555 RMF JPGL CAP SRF SSFDec 03 101.78 0.20 626.72 0.60 362.72 42.96January 86.00 395.50 4.40 188.50 20.20February 53.00 1.20 307.00 0.80 95.00 75.00March 44.00 0.20 1.60 411.00 0.60 135.00 13.00
122
Route 14: Silonia/GM Hat/Lakkhiara
0.0050.00
100.00150.00200.00250.00300.00350.00400.00450.00
January February March
B&HJPGLSRF
Analysis
Mega Sale in January due to Eid.
JPGL gained huge growth in March.
SRF needs special drive to gain further growth.
Route 15: Lemua/Porshuram
B&H SE555 RMF JPGL CAP SRF SSFDec 03 88.82 0.00 366.12 2.58 135.45 12.20
January 87.00 435.00 4.70 190.00 12.00February 61.40 2.40 370.00 1.00 137.00 12.00March 33.00 0.30 473.00 2.50 164.00 11.40
123
Route 15: Lemua/Porshuram
0.0050.00
100.00150.00200.00250.00300.00350.00400.00450.00500.00
January February March
B&HJPGLSRF
Analysis
Good growth of JPGL in March. Increased volume than January.
SRF is stable. More growth can be made in coming months.
Route 16
B&H SE555 RMF JPGL CAP SRF SSFDec 03 89.70 0.30 447.48 1.88 682.54 28.66
January 73.24 361.14 0.88 840.40 40.51February 39.06 1.92 231.10 634.21 26.50March 16.28 0.50 235.38 599.32 22.42
124
Route 16: Sharshadi/Jagannath
0.00100.00200.00300.00400.00500.00600.00700.00800.00900.00
January February March
B&HJPGLSRF
Analysis
Significant decreasing situation of SRF. Needs to identify the problem
immediately and act as required.
JPGL needs trade level activities.
Route 20: Bashurhat Main
B&H SE555 RMF JPGL CAP SRF SSFDec 03 137.80 0.00 474.32 6.96 14.93 449.18
January 152.30 486.90 7.60 23.28 444.46February 87.74 6.34 349.08 1.72 15.46 281.66March 77.02 5.92 438.80 28.89 352.18
125
Route 20: Bashurhat Main
0.00
100.00
200.00
300.00
400.00
500.00
600.00
January February March
B&HJPGLSRFSSF
Analysis
JPGL and SSF regained volume in March. Need to continue this growth.
B&H needs to be communicated to sustain the existing situation.
Route 21: Dagonbhuiyan/BhuyanHat/CHowdhuryHat
B&H SE555 RMF JPGL CAP SRF SSFDec 03 48.84 0.00 192.68 1.22 4.42 216.00
January 77.24 333.94 5.18 11.24 360.62February 72.90 3.30 360.72 2.72 15.50 306.32March 42.36 2.16 397.00 13.37 406.18
126
Route 21: Dagonbhuiyan/Bh.Hat/Chow.Hat
0.0050.00
100.00150.00200.00
250.00300.00350.00400.00450.00
January February March
B&HJPGLSRFSSF
Analysis
Good volume in March. JPGL and SSF moving at par.
Continue focused distribution effort.
Route 22: Dagonbhuiyan/Tulatoli
B&H SE555 RMF JPGL CAP SRF SSFDec 03 159.48 0.00 465.58 4.88 24.98 139.70January 222.14 633.60 9.76 37.60 229.22February 127.98 10.04 462.84 3.48 23.28 134.32March 99.44 7.48 586.52 39.81 163.06
127
Route 22: Dagonbhuiyan/Tulatoli
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
January February March
B&HJPGLSRFSSF
Analysis
SSF needs trade level attention
Growth of SRF in March. Try to use this growth to establish a firm base.
Route 23: ChowdhuryBazar/Chaprashirhat
B&H SE555 RMF JPGL CAP SRF SSFDec 03 93.82 0.00 564.62 5.44 7.22 343.72January 101.42 593.06 3.16 7.18 346.1February 72.84 4.78 482 1.24 6.68 233.68March 59.18 3.02 740 17.87 281.28
128
Route 23: Chow.Bazar/Chaprashirhat
0
100
200
300
400
500
600
700
800
January February March
B&HJPGLSRFSSF
Analysis
Huge growth of JPGL in March. Try to maintain this by full poof distribution.
Good retention of B&H.
SSF needs trade level activities.
129