PTC Project Report
PTC Project Report
PTC Project Report
Pakistan Tobacco Company was the first multinational to set up its business in 1947 in Pakistan. It
took over business from Imperial Tobacco Company that was operating since 1929. In 1948
commenced pioneering of Virginia Tobacco Cultivation. Pilot production plant was set up in a
warehouse near Karachi port. The rapid expansion in the cigarette market over the years led to the
establishment of our state of the art manufacturing facilities in Jhelum and Akora Khattak.
Pakistan Tobacco Company is one of the largest multinational company working in Pakistan. PTC is
a subsidiary of British American Tobacco (BAT group), which is the largest international tobacco
group and has its business in 180 countries all over the world. It owns two tobacco factories in
Pakistan and gives employment to more than 1700 people. Moreover it contributes more than Rs.
30 billion in taxes and excise duties to the government of Pakistan playing an important role in the
development and growth of the country.
Pakistan Tobacco Company has come a long way from being just a single factory operating to a
company which is involved in every aspect of cigarette production, from tobacco cultivation to
packaging. But what is really significant about these sixty six years is the tremendous efforts that
Pakistan Tobacco Company has made in the development of the country. By spear heading, the
campaign for modern agriculture and industrial practices, they have been instrumental in the
development and progress of the agriculture and industrial sector in the country.
Pakistan Tobacco Company has been leader in innovative marketing campaigns, which brought a
whole new competitive edge to Pakistan business world.
1. DUNHILL
DUNHILL LIGHTS
DUNHILL SWITCH
4. Capstan
Capstan Filter
5. PALL MALL
CAPSTAN BY PALL MALL ORIGNAL
PALL MALL PLUS
6. GOLD FLAKE
GOLD FLAKE
GOLD FLAKE SC
GOLD FLAKE STYLE
7. EMBASSY
EMBASSY FILTER
8. WILLS
WILLS INTERNATIONAL
VISION STATEMENT
“World’s best at satisfying consumer moment in tobacco and beyond”
MISSION STATEMENT
“To champion informed consumer choice and deliver our commitment to society”
“DARE TO BE DIFFERENT”
TOBACCO PLAYERS MARKET SHARE(June 2016)
PTC 46.3%
PHILLIP MORIS INTERNATIONAL (PMI) 19.4%
DUTY NON PAID (DNP) 29.7%
IMPORTED 4.6%
PTC Functions:
Marketing
Supply Chain
Legal and Cora
I.T
Security
Finance
HRM
EHS
Marketing Departments:
Trade Marketing and Distribution
Brands Marketing
SPI research department (R & D)
Central Punjab:
Southern Punjab:
S&B:
Supply Chain:
Working Chain:
Key Points:
Distribution work as a third party for PTC.
44 distributor or VBP in Southern Punjab.
Hierarchy of distribution is different according to their volume.
Through distribution management model distribution works.
Advance payment is done in distribution.
45-55 shops to be visited / deal each day by each DR.
Distribution Chain:
Segmentation of Brands:
Premium segment (high) Rupees: 100+ per pack
Medium segment Rupees: 65-100 per pack
Low segment Rupees: 50-65 per pack
Sale Types:
Primary Sales:
Secondary Sales:
Stock Management:
Stock management work on first in first out (FIFO) and sometimes on last in first out (LIFO)
Depot on Hand:
Warehouse manager knows how much stock is available in the warehouse.
DR Attachment:
Call Sequence:
DR route for visiting the outlets
Productivity:
Total number of shops visited out of total number of shops assigned.
Sales Target:
Target assigned to salesman is called sales target.
Cash Memos:
The bill given by salesman to retailer is called cash memos.
DSR:
(Daily Sales Report) A report in which salesman enter total number of brand wise sales and
the number of shop visited is written.
OOS Recording:
Salesman should see before his next visit that retailer should not be out of stock.
Consumer Contact:
The specification given by company of consumer to whom BA can contact, like BA cannot
contact less than 18 years old person.
Program Introduction:
Project Supremacy plan is extension of 2015 project supremacy-4 plan. Plan is aimed at
improving our business health in MG Strong Hold markets, Stamping CbPMO growth in MG strong
holds and to curtail declining VFM distribution and minimize OOS in all segments in context of
squeezing shelf space of our key brands in rural led by DNP’s.
Key Objectives:
To make Pall Mall bigger then Morven Gold Strong hold markets.
To curtail OOS and improve VFM distribution in rural.
Mechanics
Basket Offer : 1 CbPMO Free pack on purchase of following Brand Mix (CbPMO : 10 Packs +
Cold Flake : 5 Packs)
Free Pack to be given max thrice monthly i.e. Retailers can avail this offer three times a
month.
Credit Extension : Bill to bill credit extension to outlets on need basis by VBP’s
DR will take on hand of key brands on every visit and maintain tracker.
Controls
DR will maintain trackers of these outlets on daily basis.
Free stock to be mentioned on trackers and Cash memo.
Retailers signature to be taken on cash memo and receiving to be taken in tracker.
Free stock to be mentioned on SD-20 on daily basis.
Distributor will maintain the record of all requisition and tracking sheets, which will be
attached with Distributor’s claim.
Objectives
To eliminate CbPMO and Gold Flake OOS in rural (below 5%)
To increase CbPMO rural distribution by 2% in exit 2016
Duration
9 months (April-December 2016)
Mechanics
Monthly sales targets of CbPMO, Gold Flake family shall be given to these retail outlets.
Target will be set over and above the base volume of those outlets.
CbPMO Weightage in target is 70% and Gold Flake is 30% and incentive would be given
based on this ratio, however if retails achieve bottom line target of both brands incentive
can be passed on.
Targets would be given in such a way that desire incremental gain of 7% must be achieved.
These retailers must not have OOS situation during the month for our drive brands (JPGL,
CbPMO, Gold Flake Family)
Winning ratio for retails is 80%
Upon achieving the total monthly target and fulfilling above criteria Retailer would be
awarded with Rs. 1000/- value stock of CbPMO or Gold Flake.
Incentive would be given in the form of CbPMO or Gold Flake free stock.
Controls
Proper outlet wise purchase record (cash memo) to be maintained on format. On every beat
salesman has to fill in the purchases and get it signed from retailer. This form should be
maintained at distributor shop as well on retails.
Monthly distributor claims submission with receipt of free stock from the retailer to area
office.
Managing the given budgets effectively will be responsibility of concerned T.E.
The Communication letter form AO duly signed by AM conveying Mechanics, Budgets,
Duration and Target Outlets should be sent to Distributor through a letter on PTC letter
head at least 1 week before the inception of offer.
TE to monitor cascade of information by visiting selective sample outlets.
Each DR will update his retailer’s sales in his tracking sheet throughout the month which will
be back checked by FSOs
AM and TEs will visit the selected outlets on sample basis to verify sales tracking sheet.
Distributor will maintain the record of all requisition sheets, which will be attached with
Distributor’s claims.
Objectives
Gain CbPMO market share in VFM by 3%
To gain 7% CbPMO growth
To increase CbPMO volume
To increase Distribution width and depth
Duration
6 months (April and August-December 2016)
Multan Market Execution:
Rural Supremacy:
180 180 10
Market visits:
Sales men Visited No of outlets Visited
Javed Arif 36
Khaleeq Ahmad 30
Zubair Mughal 21
Adnan 23
Shabeer 30
Ramzan 13
Kashif 16
Adnan Mujahid 09
Ghazanfar 01
Jawad Hashmi 01
Market Analysis:
Overall availability of our major three brands improved on these outlets.
On some outlets JPGL was not available, we made all the three major brands available on
most of the outlets.
Some retailers did not welcome the scheme as they find it convenient on purchasing from
the whole seller.
Communication gap existed up to a minor level.
Two sales men Kashif and Adnan were being complained constantly by the retailers.
Findings:
Chart Title
120
120
100
80
60
30 30
40
20
0
Scheme Offered Scheme not offered Closed Outlets
100% 100%
100%
99%
98%
97%
96%
95% 94%
94%
93%
92%
91%
JPGL CbPMO Gold Flake
Retailers Feedback:
Most of the retailers warmly accepted the scheme.
It was a great incentive for such week retailers which do not have the purchasing power.
With the exception of some sales men, the retailers were satisfied with overall performance
and communication of the sales men.
Area for improvement:
Continuous follow up.
Counter checking and feedback on regular basis.
Incentives of the sales men should be at risk if the message is not conveyed properly to the
retailers.
Urban Supremacy:
800 100 06
Market Visits:
Sales men visited No of outlets visited
Waseem Abbas 18
Rehan Jameel 12
M Ghazanfar 26
Hasnain 07
Aqeel Ahmad 32
Sana ur Rehman 05
Market Analysis:
Retailers were very motivated towards achieving the targets.
Some of the retailers also requested to increase their targets if there would be greater
incentive on achieving high targets.
Some retailers were not informed about their targets due to the poor communication of the
sales man.
Findings:
25
21
20
15
10
10
6
4
5 3
1
0
Interpretation:
All the outlets were selected up to the criteria on Morven Gold strong hold markets.
Some retailers preferred to purchase from the whole seller.
Overall the retailers warmly welcomed the targets assigned to them.
Area of improvement:
Continuous follow up.
Back check on regular basis.
Incentives of the sales mans should be at risk if message not conveyed properly.
Incentives of the retailers should be incentivized according to the volume class distribution.
Total Target Assigned:
VOLUME/MILLION
CbPMO, 6.5
Conclusion:
OOS COMPARISON
CbPMO Gold Flake
10%
4%
4%
2%
0
APRIL-16 MAY-16
Decrease in OOS
The retailers which do not hold the brands of PTC also started handling our brands.
Increased market share.
Brand awareness generation.
Brand loyalty generation in future.
PTC market extension.
Recommendations:
Gifting to the retailers.
Cash incentives for the retailers.
BA’s should operate in remote areas.
Incentivize DR for better coverage on OOS
Extend credit facility on tactical outlets.
Consumer Contact must be made properly.
Incentives of the sales men should be at risk if the message is not conveyed properly to the
retailers.
Retailers should be incentivized according to the volume class distribution.