Ptc Internship Report

The aim of my struggle is to know about the market and its difficulties. I want to know about the activities of Pakistan Tobacco Company. How a multinational company works. PTC target market is to capture whole country market. PTC offers quality services to its customers. PTC tried to formulate its strategies in such a way that the extraction of Customer and out standing tobacco can find a suitable platform. In this internship I was attached to different people like TMO, Sp and salesmen etc. So I learn maximum knowledge about market. With the help of these people I practically learn different strategies that PTC adopts in the market. During this internship I learn theoretical knowledge in a practical form. I did my work in field and offices both places are very informative So According to my opinion PTC is very productive company. AQIL JAMIL MB04007 Internship Report

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PTC is a part of the trans-national British American Tobacco Group, which employs some 90,000 people worldwide at its operations in 180 countries. British American Tobacco has a position of market leader in more than 50 countries selling over 300 brands there. In 2004, the Group sold and produced a nearly 16% share of the global market of cigarettes. PTC is the largest excise tax generator in the private sector in the country. In 2004 alone, PTC paid the government close to Rs.16 Billion in excise and sales taxes. This amounts to over Rs. 50 million per working day. Over one million people are economically dependent on the industry in Pakistan. Being a subsidiary of BAT Pakistan Tobacco Company’s 50% shares are of parent company, remaining 50% share are owned by the general public and financial institutions. Pakistan Tobacco Company is listed in the all three stock exchanges of the AQIL JAMIL MB04007 Internship Report

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country that is Karachi, Lahore and Islamabad. PTC

is

committed to providing consumers with pleasure through excellent products, and to

demonstrating that we are meeting our commercial goals in ways that are consistent with reasonable societal expectations of a responsible tobacco group in the 21st century.

Ever since it arrived in Europe since the late 15th century, tobacco has divided opinion, sparked controversy, and generated substantial revenue through tax. Not long after it reached Europe, it was being described in terms ranging from "vile custom of manifold abuses" and "feast for the fiend" to "the divine herb" and "cornucopia of all earthly pleasure". Tobacco has periodically been subject to royal disapprovals, the whims of fashionable use, medicinal studies, smuggling, trade disputes, and bans. In this section we offer a brief snapshot of the long and fascinating history of this enduring product, smoked by roughly one billion adult consumers around the world today. AQIL JAMIL MB04007 Internship Report

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

1st Choice for everyone AQIL JAMIL MB04007 Internship Report

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To transform PTC to perform with he speed, Flexibility and AQIL JAMIL MB04007 Internship Report

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

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Our Objective is to grow our brands and the value of our business, to improve productivity principles

and of

to

embed

Cooperate

Responsibility Group-wide

the Social

PAUL

ADAMS, Chief Executive

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

GOLD LEAF (JPGL)



CAPSTAIN



DUN HILL



GOLD FLAKE



WILL INTRNATIONAL



BANSON

AND

HEDGES

(B&H) 

PALL MALL (P&M)



EMBASSY

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

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Geographic spread 1750 sq Km Othrs 30%

Own 37%

LTC 33%

The Headquarter of Pakistan Tobacco Company is in Islamabad in Saudi Pak Tower. For distribution and administration purpose it is divided into four regions.  Sind, Balochistan region  Southern Punjab region  Central Punjab region AQIL JAMIL MB04007 Internship Report

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 North Punjab region For the Sind, Balochistan region the Karachi office controls all the business. Multan office controls the working in southern Punjab. Lahore office control Central Punjab, while office located in Rawalpindi controls the business of Northern Punjab. Karachi, Lahore, Multan and Rawalpindi offices are called district sales offices. These district sales offices are further divided into 13 zones; every district sales office controls the operations of 3 to 4 zones.

Pakistan Tobacco Company Lakson Tobacco Company AQIL JAMIL MB04007 Internship Report

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Premier Tobacco Company Khyber Tobacco Company Souvenier Tobacco Company

In Term of value and Volume

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Of high quality Products

Prove to work in a controversial industry

One team one dream all for one

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PROCESSING DEPARTMENT MATERIAL MANAGEMENT DEPARTMENT This department knew as “MMD”. Flowing are the main sections of “MMD. Prime function of dept. is providing quality material for production. Local Purchase

(Purchase sundry & miscellaneous items, on Behalf of company)

Traffic

(Provide transport for factory and clearing builties).

Reclaiming

(Resale, auction of remaining items).

Godown

(In time supply of finished good to “Zone” For market)

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

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

This department is further divided into two departments.



Cigarette Making Department.



Cigarette Packing Department.

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CIGARETTE MAKING DEPARTMENT In this department, the cut tobacco is filled in the cigarettes. The filter rods come from the Filter Rods Department and they are combined to prepare the cigarettes. There are different types of cigarette making machines high and low machines. Tow Loga Machines, which have a capacity of manufacturing 850 cigarettes per minute and one machine, which have a capacity of manufacturing 8000 cigarettes per minute and two machines, which have 7500 capacities per minute. Eight Mark-8 machines running in this department, which have capacity of manufacturing 2000 cigarettes per minute. Loga machine run 24 hours. CIGARETTE PACKING DEPARTMENT The cigarettes come in the ready form to be packed here in his section. Deferent machines are used for the purpose. The material management department provides the packing material required in this department. The cigarettes are first packed in packets, and then these packets are put into the outer, which are further packed in the big cartons known as the AQIL JAMIL MB04007 Internship Report

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

According to the speed, there are four types of packing machines running in the Cigarette Packing Department. GDX2, which have capacity of 380 packets per minute. Another machine is a soft Cup his capacity 160 or 180 packet per minutes. HUMAN RESOURCE DEPARTMENT This department is also known as “EMPLOYEE RELATION DEPARTMENT”. Department deals with the employees of the

“FACTORY”. Flowing are the main functions.



Maintains

industrial

relation

between

Labor

between

Labor

management and Employer. 

Binomial

agreement

relation

management and Employer. 

Maintain worker services record.

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

Worker Training & Promotion.



Legal

obligation

on

behalf

of

Labor

and

management. 

Worker Welfare activity. Running Canteen & Fair Price Shop.

QUALITY DEPARTMENT Quality excellence is the foundation for every management, and key for “GOAL” of CUSTOMERS SATISFACTION. 

Consistently provide product and services that meet the quality expectations of customer.



Actively pursue ever-improving quality through programs that enable each employee to do his or her job right the first time.

INFORMATION TECHNOLOGY DEPARTMENT This department is also known as Management Services Department. It connects all offices and factories of the company with one computer network function. Following are the some functions of the IT department: AQIL JAMIL MB04007 Internship Report

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

IT risk analysis



Backup cycle



IT system standing instruction



System development methodology



Request for system modifications



Fixed assets movement



Email access policy-MEEG (Managed External Email Gateway).



Internet browser access request/policy



IT logs

EH&S DEPARTMENT This department is known as “Environment Health and Safety Department”. This department provides and maintains safe and healthy working environment including use of cleaner technologies and safe system of work for all its employees and non-company personnel on the company premises. Pay due regard to all impacts of its activities on the physical AQIL JAMIL MB04007 Internship Report

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environment.

Comply

withal applicable

national

laws,

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

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

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ENGINEERING DEPARTMENT All goods must

be

checked physically

by

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

In the event of goods being short, excess or damaged as compared to delivery Challan/invoices, an endorsement will be made in red against the items on the G.R. Register and the suppliers will be advised accordingly.

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STORE RETURNS New or useable machine spares received from Factory Departments should be accompanied by Store Return (R 15). New or useable must be recorded on Store Return for new and used spares respectively to enable correct valuation by the system for used spares i.e. 10% of the value of stock. For new and reconditioned items the Finance Department will report values. Training and development We recognize that getting the right start is crucial to building a successful career. This is how we approach your early training and career development. Managerial skills Business Awareness Performance Appraisal

Marketing department

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

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REGIONAL MANAGER ATTACHEMENT Role of Regional Manager AQIL JAMIL MB04007 Internship Report

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

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

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TRADE MARKETING OFFICER (TMO) ATTACHEMENT Role of the TMO and area team A TMO is a key person of PTC. He focused outlets for which he makes & executes trade marketing & distribution plan to meet out TMO assists the AM for implementation of above said goals in an effective and efficient manner. Further he directly interacts with the distributor and

Trade .The achievements of SOP targets and merchandizing in his one of the core responsibility of TMO.He also manages the given human resource of own and distributor. AREAS OF TMO  TMO 200 outlets visit  Distribution management  Intelligence of market  Cycle activity execution  SP management  Wholesale management  Merchandising selection & placement AQIL JAMIL MB04007 Internship Report

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 Administration of record & stock.

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

ATTACHEMENT WITH MERCHANDISING AND PROMOTION CO_ORDINATOR M&PC is attached with Regional manager and give report to him about any activity that he performs. Company gives promotional material in regional office .M&P coordinator control this and after that he divides this material in all areas according to their sale volume or their requirement. His job is to execute plan to increase merchandising presence in the region.

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

according

to brand.

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

BUDGET OF BELOW THE LINE It is responsibility of M&PC to take care of budget allocation to the region with the approved of Regional Manager. He gives budget according to brand wise and he should maintain brand expenses. His responsibility is to develop and execute promotion plan through TMO, Horace’s and key accounts in line with the promotion strategy in conjunction with the cycle planning process and to ensure maximum benefit out of below the line muscle and advancement. Internally the sales promotion coordination with Area manager cycle planning manager and brand manager for promotion design and executions etc. Externally he deals with suppliers contractors trade channels organizers and consumers. He also deals with local AQIL JAMIL MB04007 Internship Report

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administration for public relation and permissions to ensure smooth execution of promotion, sponsorship activities and promotion van operation etc.

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

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

ONLINE ACTIVITY Merchandising and promotion coordinator is working on two computer programs for the purpose of payment process of claims and bills. The first program that performs M&PC is system application product (SAP) and next is supplier relationship management. AQIL JAMIL MB04007 Internship Report

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Overview of Trade Marketing and distribution(TM&D) TM&D Mission To reach the customers in the most effective & efficient manner and to become benchmark supplier in the market.

Critical success factors There are five CSFs for TM&D team  Resource Management  Strategy and planning  Supply Chain Managements  Account Management  Information Management

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

consumer. His speaking power is very attractive. He acts upon all objectives of SP in real sense. So I learn maximum knowledge about market with the help of Mr. Tanveer. I was also attached to another SP but unfortunately he is not so much active. But Mr. Tanveer is very active He was the member of special force. He is very cooperative and young. He was properly done his duty to ensure the availability of all brand and specially Pall Mall. He convinced the Consumer with the help of incentives like, cap, digital clock, 20 HL Pall Mall pack, 10 HL Pall Mall pack, etc PTC gives a Plano gram to every SP. So Mr. Tanveer is also working according to Plano gram. He put Pall Mall light stock then Pall Mall filter is second and at last Pall Mall menthol. HE was also decorating the out let with merchandising material. AQIL JAMIL MB04007 Internship Report

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OBJECTIVES OF SP  Topping Up  Availability  Visibility  Pack display  Promotion awareness  Consumer contact  Merchandising awareness

 Competition awareness  Market intelligence  Out of stock

ATTACHEMENT WITH SALESMEN Salesmen are the key persons of the PTC company .We can say that salesmen are the earning hand and air of PTC, so he is the only person who faces all customers directly. So they can play a vital role in any company. PTC takes care of their salesmen. PTC conducts lot of AQIL JAMIL MB04007 Internship Report

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

Preparation Approach Stock check AQIL JAMIL MB04007 Internship Report

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Presentation Closing Internal store marketing Consumer contact Evaluation Administration

NINE STEPS OF CALL. Nine step of call is very effective for salesmen and as well as employee of PTC.

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With

the help of these steps a salesman done his job in a

good manner he accomplishes his work within time. These steps are Preparation:

In this first step a salesman should check the stock, which is required in market. In

the morning he should be neat &

clean if he feels any deficiency he should be control this deficiency. He should check the bike and he should have the cash memo and ballpoint. Approach:

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

Stock check:

Check that all brands are available in the shop and if any brand is short then he should complete the stock and give the stock to shopkeeper according to is sale volume.

Presentation:

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

Give maximum material to shopkeeper. Check cash memo and at the end, close all written work. In store Marketing & Merchandising:

-If PTC give OGD to any shopkeeper. Salesman should check the display of all brands, arrangement of all brands. The place where OGD exists should be neat & clean. Consumer contact: This step is most important for salesmen and sales promoters as well. In which we convert the smoker to PTC brand if he use any other brand. In this step salesman convince the customer to use the brand of PTC. Administration:

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

Evaluation: AQIL JAMIL MB04007 Internship Report

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Means self-analysis during whole day and if any deficiencies note them and control in the next tour. A salesman cannot act on nine step of call because lack of education a salesman faces a lot of problems. I saw shopkeepers were very angry with salesman. They demand shirts, liters, wall clocks and other such incentives. So salesman also faces these types of problems.

CUSTOMER RELATIONSHIP MANAGEMEN A salesman should build a very healthy relationship with the retailers. He should have a strong grip on local languages. He should checks rates offered to retailers.

FIXED SALES SEMMARY (FSS) A salesman should monitor brand wise sales productivity. In particular beat FSS is essential tool

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

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STEPS CLAIM PROCESS OF DAMAGED & DESTROYED STOCK 1: Collection of D+D stock

2: Physical presence & verification by TMO. 3: Entry on D+D book by TMO 4: Entry on computerized summary of claim 5: D+D claim form preparation by distribution 6: Signature from AM 7: Handing over to MC for payment process.

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

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

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

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STOCK REGISTER PTC maintains a register that is called SD 20 for the purpose of daily sales. This is the legal responsibility by the company to maintain a stock register on daily bases Register shows  : Total

stock that received during the month

 : Total stock available at month start  : On hand stock  : Split of DD, VDD and village wholesales SD-9 This is the annual marketing information register in which all the information about total brand of PTC on annually basis this register shows the market volume of PTC. It also shows the secondary sale volumes, coverage of village, productivity. In this register they written all activities of competitors through this register we see that where we stand in the market. With the help of this register we see AQIL JAMIL MB04007 Internship Report

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accumulated sales trends and brand wise sales trends, PTS also written all their promotions and activities.

Order control form (OCF) Distributor produced OCF in which defined the estimated consumer demand. OCF is monthly average channel wise sale and it is

prepared for 10 days forwarded to the area office with the lifting plan.

DISTRIBUTOR CLAIMS & REPORTS ICA (inward cartage allowance) It is paid to distributor on lifting of stock from where on their transport Arrangement. It is paid monthly to distribute.

OCA claims (Outward Cartage Allowance) The cartage paid to the transporters for transportation of stock from warehouse to Distributor is called OCA. AQIL JAMIL MB04007 Internship Report

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

OBJECTIVE OF JOURNEY PLANNING 1: It is the basic responsibility of TMO to visit all rural areas.

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

RCS (Retail Classification System) AQIL JAMIL MB04007 Internship Report

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

Criteria for the Selection of outlets High selling (Minimum from volume –6 class) 80% own volume outlet 50% plus ASU – 30 (adult smoker under 30 year share) Another core responsibility of TMO is to collect the information of both own and competitor brand volumes.

RORT (Retail outlet Reporting Tool) PTC uses a lot of software to increase the efficiency and to improve the performance of their employees. RORT is a software that is used for the AQIL JAMIL MB04007 Internship Report

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purpose of analysis and report generation with the help of we can get

the information about brand analysis we can get outlet wise sales .so RORT is very useful for a TMO.

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

OUTLET MERCHANDISING SELECTION PROCESS AQIL JAMIL MB04007 Internship Report

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1

Selection by TMO

2

Relations with PTC staff

3

50-meter clause implementation

4

Good relation behavior

5 High visit frequency / percentage of ASUZO 6 Profile selection of market 7 Selection of material in store / on store 8 Retailer agreed on written contract 9 Traffic of low and view

Material of In store Merchandising 1 Village Modular 2 Tube shade 3 In store sheets (14”*29”16”*48” ) 4

Counters plastic sheet (64”*32”)

Material of on store Merchandising AQIL JAMIL MB04007 Internship Report

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Backlight

Flex board

Front –light flex board Projection boards

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

Outlet Maintenance Criteria: Fascia must be cleaned once fortnightly.

Operations and Finances of Distributor AQIL JAMIL MB04007 Internship Report

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

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

No. Of FSOs 1. Out of Stock (OOS): Numeric OOS levels AQIL JAMIL MB04007 Internship Report

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2. Customer Services: After sales service through customer call centers 3. Volume: Volume growth over same period last year (SPLY) 4. Merchandising: Presence of merchandising system 5. Benchmarking: Benchmarking of distributor. Financial Evaluation of Distributor This is made twice a year (Annual & half Yearly). This is a helping tool for management to assess and evaluate the financial matters of distributor. This includes: 1. Overview of business 2. Stock investment 3. Productivity 4 Coverage 5 Vehicles / assets 6 Expenses 7 Return on investment

SPV UTILIZATION AQIL JAMIL MB04007 Internship Report

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Sales promoters are working under the instruction of TMO.Basic responsibility of sales promoter is to carry out the fixed coverage plan other important responsibilities are 1

New launch promotion

2

Promotion/trade offer communication

3

Pack display

4

Product communication

5

Out of stock tracking

6

Topping up

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PRODUCT LAUNCHING STRATEGY After marketing research and identifying a customer need PTC produced the product after production they do test marketing and see the results & estimate that this product will effect on what level of our own product and product of competitor and after this they monitor the sales and see actually the sales volume cut from own product and product of competitor and that category. This is known by the distribute and sales men during the product launching company offers the incentive to the retailer and the customers to create the awareness in the customers

company prints posters and give ads in the News paper and telegram. In the present a new brand of Embassy Filter 14 cigarettes pack is launched and this strategy was used on this product. Company come to know after research that there are some customers which take 12-14 cigarettes daily, so they launched this 14 cigarettes pack product.

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MARKET SEGMENTATION

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

ROLE OF MARKETING RESEARCH IN PTC

Pakistan

Tobacco

Company

gives

a

much

importance to the marketing research.

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Pall Mall What is Pall Mall? • Pall Mall is an international brand of B.A.T. and now it is brand of P.T.C • Why we launch Pall Mall? We gave smokers another choice to smoke an international brand. Pall Mall is an international drive brand that has international image. For Pall Mall our target market is capstan’s smoker and other similar priced brand but we focus Capstan that is locally drive brand but has international image. To overcome this misperception we launch an international brand that have international image. Pall Mall is more fine then Capstan and available in the same price. AQIL JAMIL MB04007 Internship Report

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

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

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CAPSTAN Other similar price brands.

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

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

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

Category

Capstan’s daily sale

A

.2 M or more then .2M

B

Between .1M to .2M

C

Between .020M to .1M

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

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We divide our force into two forces. 1. Task Force 2. Regular Force

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

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Task Force’s Members SP SP SP SPV

I (as an internee)

T.M..O

SPV SPV SP SP SP

SP

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REGULAR FORCE For other 2,300 shops we had 4 T.M.Os and 20SPs. Responsibility of this force was to doing all activities according to plan. They visit B and C class or category shops on twice and thrice weekly bases.

♦

Our next step was decorating the out let with

merchandising material. We have three types of merchandising materials

♦ ♦ ♦

In-store merchandising material On-store merchandising material Out of Home

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

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

Out of Home

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

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For Pall Mall Launching

On-Store Merchandising Material

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

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S h o p

F a s c ia a n d

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For Pall Mall Launching

In-Store Merchandising Material

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J P G L O u t le t

O.G.D (Organized Grocery Dispenser) • • •

With JPGL header sheet 7 pack O.G.D Arrangement of packs

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J P GL O u t le t

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C a p s t a n

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O u t le t

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

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In-s to res h e e t

In-store sheet

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Wobbler

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Bunting

Mobile

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LaunchPoster

1st Two w eeks

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Price Poster

Range Poster

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•

During launching for company communication and for more

awareness and to entertain the shopkeepers we gave promotions on Pall Mall. Promotion’s mechanics was 1. Redemption 2. Pack Display Competition 3. Lucky Draw

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

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

On first 3 visits they gave a 20HL Pall Mall Filter outer as a gift and on fourth visit we gave them a prize bound worth R.S 750 and on the same visit we gave lucky draw coupon and through that coupon they participated in lucky draw. Tier 2 Tier 2 was for remaining 213 shops of “A” category and all shops of “B” category. In tier 2 S.Ps visited these shops and gave them two lucky draw’s coupons in a week. And lucky draw was held on the end of each week. Prizes of lucky draw was Motor Bikes Food Factories Mobile Phones Color TV

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

Supply Chain Seed/Leaf Department Production Department Material Management Department Primary Manufacturing Department Stick Manufacturing Department Factory Warehouse Area Warehouse Distributor Warehouse Supply to Wholesale and Retail Sales to End Consumers

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STRENTHS PTC offer heavy incentive package like Motorcycles, TV, tape recorders and wall clocks in promotion.  PTC is a consumer-focused company.  PTC is working in systematically way. AQIL JAMIL MB04007 Internship Report

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 PTC is working as doing good not only doing well.  PTC attract only those people whom above 18 and not mare then 40.  PTC gives more incentives to salesmen during any promotion.  PTC is taking care of their employees.  Management of PTC create a database and all its employees are link between each other  PTC conducts health and safety programs of their employees.

 The working environment of PTC is very good.  PTC appreciates all of those employees who show more effort in their work.

WEAKENESSES

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 Salaries of salesmen are very low due to this reason they are not satisfied.  Number of distribution is less.  Sales promoter is not working up to the standard.  The actual price of Gold leaf is Rs 39.60 most of the shopkeepers sales it on Rs 42.  Company not covers rural area according to their desire.  Some time salesmen not cover his area in proper time.

OPPERTUNITIES  Brand‘s acceptance shows that it has potential to grow and grow well.  Promotion activities give us ideal opportunities to cannibalize substantial share from declining brands.

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 Promotion has been a strong basis towards building up big brand image for all PTC  In promotion PTC give more incentives and LTC give less it is best opportunity.

TREATS  When PTC starts any activity of coupon scheme LTC also start such type of scheme.  Some times LTC introduce consumer promotion with better and attractive prizes.  Sometimes LTC reduce its prices.  LTC cover more area instead of PTC.  Customer of Marvin Gold is very loyal.  The prices of competitor are very less as compare to PTC brand.

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Recommendations 1. PTC in Multan needs to increase the efficiency of Consumer Contact in a more planned way. In the weak belts in respect of less volume share PTC can increase the Market Share by improving the Consumer Contact with the help of Competent Workforce. 2.

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

3.

PTC needs more improvement in Merchandising Maintenance System. There is no proper check and balance on SPs.

4.

TMOs are always under pressure due to High Target Achievement, managing the Distributor issues as well supervising the SP.

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5.

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

6.

Salesmen are the earning hand of any Organization. But the %age of the commissions of Salesmen is less.

PTC should increase the no. of OGDs, especially in Rural Areas. Because proper display in the Market to increase PTC Merchandising Share. 7. Most shopkeepers sell Gold Leaf at higher Prices. Company should consider it by pertaining Original Prices.

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