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 JAMILMB04007 Internship Report

1

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 country that is

Karachi, Lahore and Islamabad. PTC is committed to providing

consumers with pleasure through excellent products, and to


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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.

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


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least the last three thousand years. Christopher Columbus found it

when he landed in the Americas in 1492.

1st Choice for everyone


4

To transform PTC to perform with

he speed, Flexibility and

Enterprising spirit of an

Innovative consumer focused

“Dare to be Different”


5

Our Objective is to grow our brands and

the value of our business, to improve

productivity and to embed the principles

of Cooperate Social Responsibility Group-

wide PAUL ADAMS, Chief Executive


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7


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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

Geographic spread

1750 sq Km


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Own37%

Othrs30%

LTC33%

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

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


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into 13 zones; every district sales office controls the operations of

3 to 4 zones.

Pakistan Tobacco Company

Lakson Tobacco Company

Premier Tobacco Company

Khyber Tobacco Company

Souvenier Tobacco Company


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In Term of value and Volume

Of high quality Products

Prove to work in a controversial industry


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One team one dream all for one


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PROCESSING DEPARTMENT


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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.

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.


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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.

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


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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 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.


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HUMAN RESOURCE DEPARTMENT

This department is also known as “EMPLOYEE RELATION

DEPARTMENT”. Department deals with the employees of the

“FACTORY”. Flowing are the main functions.

Maintains industrial relation between Labor

management and Employer.

Binomial agreement relation between Labor

management and Employer.

Maintain worker services record.

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.


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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:

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


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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 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,


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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.

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

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-


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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

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.


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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.

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.


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AREAS OF TMO

TMO 200 outlets visit

Distribution management

Intelligence of market

Cycle activity execution

SP management

Wholesale management

Merchandising selection & placement

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


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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.

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 AQIL JAMILMB04007 Internship Report

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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 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 NOTEIt is essential before the processing of bills and claims. After receiving GRN

merchandising and promotional coordinator perform next activity.


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ONLINE ACTIVITYMerchandising 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.

Overview of Trade Marketing and distribution(TM&D)

TM&D MissionTo 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


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Account Management

Information Management

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


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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.

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


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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 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


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Approach

Stock check

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:

If salesman has any information about any brand of PTC, he

should give to shop keeper and if PTC offers any scheme and AQIL JAMILMB04007 Internship Report

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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:

Means self-analysis during whole day and if any deficiencies note

them and control in the next tour.


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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.

STEPS CLAIM PROCESS OF DAMAGED & DESTROYED

STOCK


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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.

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 AQIL JAMILMB04007 Internship Report

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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 accumulated

sales trends and brand wise sales trends, PTS also written all their

promotions and activities.


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Order control form (OCF)

Distributor produced OCF in which defined the estimated consumer

demand. OCF is monthly average channel wise sale and it is prepared

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

DISTRIBUTOR CLAIMS & REPORTS

ICA (inward cartage allowance)

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

Arrangement. It is paid monthly to distribute.

OCA claims (Outward Cartage Allowance)

The cartage paid to the transporters for transportation of stock from

warehouse to Distributor is called OCA.


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PLANNING ABOUT JOURNEY

AM set out the monthly activity plan for TMO. This is called journey

planning. A TMO visit those shops, which have high sale volume. So with

the help of this a TMO easily plan out their monthly activities.

OBJECTIVE OF JOURNEY PLANNING

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

2: He should also visit wholesale market.

3: the main objective of journey is to contact with DSO salesman.

4: In the morning TMO give instructions or planning to all SPs.

5: In distribution he should also control distribution all of management.

6: Planning of 200 outlets

RCS (Retail Classification System)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.


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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

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.


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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

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


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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

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.


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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

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


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No. Of FSOs

1. Out of Stock (OOS):

Numeric OOS levels

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


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2. Stock investment

3. Productivity

4 Coverage

5 Vehicles / assets

6 Expenses

7 Return on investment

SPV UTILIZATION

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


49

research that there are some customers which take 12-14 cigarettes

daily, so they launched this 14 cigarettes pack product.

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


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misperception we launch an international brand that have

international image.

Pall Mall is more fine then Capstan and available in the same

price.

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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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.

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

sale


CAPSTAN Other similar price brands.

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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

We divide our force into two forces.

1. Task Force


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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

Task Force’s Members


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T.M

..O

I (as an internee)

SP

SP

SP

SPV

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

In-store merchandising material

All merchandising that are placed inside the shop is called In-

Store Merchandising material. For Pall Mall launching we had

large number of material for In-Store Merchandising.


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On-store merchandising materialAll 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 HomeOut 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 P

all Mall L

aun

chin

g

On

-Store M

erchan

disin

g Material

Shop Fascia and Counter


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Shop Fascia and Counter


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For P

all Mall L

aun

chin

g

In-S

tore Merch

and

ising M

aterial

JPGL Outlet

O.G.D(Organized Grocery Dispenser)

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


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JPGL Outlet


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Capstan / GF Outlet


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Capstan / GF Outlet


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In-store sheet


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In-store sheet

Wobbler


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Bunting

Mobile


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Launch Poster

1st Two weeks

Price Poster


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Range Poster

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. Redemption2. Pack Display Competition3. 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.AQIL JAMILMB04007 Internship Report

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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 12. Tier 2

Tier 1In 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 2Tier 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


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Motor BikesFood FactoriesMobile PhonesColor TV

*”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.


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Supply Chain

Seed/Leaf Department

Production Department

Material Management Department

Primary Manufacturing Department

Stick Manufacturing Department

Factory Warehouse

Area Warehouse

Sales to End Consumers

Supply to Wholesale and Retail

Distributor Warehouse

STRENTHS

PTC offer heavy incentive package like Motorcycles, TV, tape

recorders and wall clocks in promotion.

PTC is a consumer-focused company.


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PTC is working in systematically way.

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

Salaries of salesmen are very low due to this reason they are

not satisfied.AQIL JAMILMB04007 Internship Report

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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.

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.


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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.

Recommendations

1. PTC in Multan needs to increase the efficiency of

Consumer Contact in a more planned way. In the


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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.

5. As a big Target Market, PTC is ignoring the Rural

Areas in Multan, which should be considered.


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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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ptc internship report

Documents

standing tobacco

ptc target market

opinion ptc

responsible tobacco

country market

productive company

parent company

multinational company