Anw internship-report-final

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Anw internship-report-final

  1. 1. A STUDY ON MARKETING STRATEGY IN THE CONTEXT OF ABUL KHAIR TOBACCO COMPANY LTD. Submitted to Mohammad Nazmul Huq Assistant Professor Department of Business Administration (Marketing) Submitted by Md. Anowar Hossain ID: B.B.A - 027 07143 Department of Business Administration Stamford University BangladeshMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 1
  2. 2. This is to certify that Anowar Hossain, ID NO. -BBA-02707143, student of StamfordUniversity Bangladesh of BBA Program has completed the Internship report titled“MARKETING STRATEGY IN THE CONTEXT OF ABUL KHAIR TOBACCO COMPANYLTD.”I wish him every success in life.________________________Mohammad Nazmul HuqAssistant professorDepartment of Business AdministrationStamford University BangladeshMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 2
  3. 3. LETTER OF TRANSMISSION28th January, 2010Md. Nazmul HuqAssistant ProfessorDepartment of Business AdministrationStamford University BangladeshSub: Submission of BBA Internship Report.SirWith due respect and honor, I have much pleasure to present the report of the internshipprogram on “A STUDY ON MARKETING STRATEGY IN THE CONTEXT OF ABUL KHAIRTOBACCO COMPANY LTD”. The report deals with working environment of a field leveldistributor and selling strategy. I am submitting this report as a part of my internshipprogram in Abul Khiar Tobacco Company Ltd. This report is going to provide valuableassistance to me in finding out the working environment, which have influence on theservice quality.The Officers of AKTCL were very cordial and extended their hands within the limit of theirauthority. As the time was limited, the report could not be done more comprehensive andanalytical. Therefore, I need your kind attention to assess my report considering thelimitations of the study. Your kind suggestion will encourage me to perform betterresearch work in future.Sincerely yours,………………………………….Md. ANOWAR HOSSAINID. NO: B.B.A. 027 07 143E-mail: anw1219@gmail.comMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 3
  4. 4. AcknowledgementAt the very first moment, I am expressing my gratitude to Almighty Allah for giving me thepatience and competence to complete the Internship program by writing a report.In the preparation of this internship report, I acknowledge the encouragement andassistance given by a number of people from Abul Khair Tobacco Bangladesh Ltd. I amgrateful to Mr. Mohsin (Distributor of Abul Khair Tobacco Khilgaon Branch), for hisvaluable suggestions and assurance. Besides, I was well-guided by Md. Anwar Hossain(Territory Sales Officer) of AKTCL.I would like to extend my sincere regards and gratitude to all of my honorable teachers ofthe Department of Business Administration, Stamford University Bangladesh (SiddeswariCampus), who guided and assisted me a lot to reach in the present stage of academicposition, unless this, it was not possible for me. I would like to express my gratitude to myhonorable teacher & my Internship Instructor Md. Nazmul Huq, assistant professor as wellas assistant superintendent of examination, Department of Business Administration,Marketing Siddeswari Campus, who helped me in every step of my internship & reportwriting by giving proper guidance, advice & inspiration, for his untold efforts andcooperation in completion of entire internship program successfully. No noble objectivecan be achieved by a single individual. I am indebted to a number of persons for their kindadvice, suggestions, directions & cooperation which has enable me to have an experiencein the dynamic environment of the AKTCL & ultimately to prepare this report. The veryfirst person of the Abul Khair Tobacco Company Limited to whom I like to convey mygratitude is the Mr. Mohsin (Distributor of AKTCL) as he gave me the opportunity to do myinternship.I would like to express my gratitude to my supervisor Md. Nazmul Huq, for sharing hisideas and interests with me about my study. His contribution boosted my confidence andhelped me finish my study on time. Lastly, I want to show my gratefulness to all the staffsthat spared their precious time in answering my query.I would also like to thanks Sales Representative Md. Helal and manager Mr. Bappi as wellas Md. Kamruzzaman Zone In Charge for their response toward my query.I am very much grateful and I do thanks to Md. Anwar Hossain (TSO), Territory SalesOfficer, for his great response and help. Though he was very busy at his job, he tried toteach me most of the job responsibility about how they are selling their brands.Last but not the least; I am grateful to Md. Al-Amin (Managing Director), Md. Nasir(Managing Director) and Md. Rafique (Marketing Manager) of RAN enterprise for theirgreat effort furnishing the required information, which was needed for successfulcompletion of this report.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 4
  5. 5. DeclarationI hereby declared that this report entitled “A STUDY ON MARKETING STRATEGY INTHE CONTEXT OF ABUL KHAIR TOBACCO COMPANY LTD.” submitted by me toStamford University Bangladesh for the partial fulfillment of B.B.A (Bachelor of Science inBusiness Administration) degree is of my own and has not submitted to any otheruniversity or institute for the award of any degree as well as this paper may not use anyactual market scenario.Place: DhakaDate: January 28, 2010……………………………………..……..Muhammad Anowar HossainBBA Id # BBA 02707143BBA, Batch 27thSTAMFORD UNIVERSITY BANGLADESHMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 5
  6. 6. EXECUTIVE SUMMARYThe report is prepared on the basis of 3 months practical experience at Abul KhairTobacco Company Limited. The internship program helped me a lot to learn about thepractical situation of a distributor. This program helped me to implement my theoreticalknowledge into practical and realistic work environment.This study intends to experience the relationships of in context of on marketing strategyand Organizational Support, Supervisory Support, Work Climate, and Employee ServiceQuality, problem solving environment in the context of Abul Khair Tobacco Company Ltd.Perceived organization support (POS) – the extent to which employees believe that theiremployer is concerned about and aware of their well being and contribution – can helpemployees’ self-esteem and, therefore performance. POS is more likely to increase theemployees’ expectancies that greater efforts toward meeting organizational goals will berewarded, and consequently these expectancies may increase their efforts in serviceworks to meet the organizational goals. Support from supervisors is also an importance toemployee performance but the employees may take it for granted, considering it to bepart of the supervisor’s job, and it might, therefore, not have the degree of positiveinfluence on service effort that might have been expected. The aim of my struggle is toknow about the market and its difficulties. I want to know about the activities of AbulKhair Tobacco Company Ltd. How a cigarette company works.AKTCL target market is to capture whole country middle and low as well as very lowsegment market. AKTCL offers quality services to its customers. AKTCL tried to formulateits strategies in such a way that the extraction of customer and outstanding tobacco canfind a suitable platform. Nevertheless, it is important that, to produce greater jobsatisfaction, service management should render on-the-spot supervisory support toemployees, design and implement supportive supervisory practices and reward positiveresults. Work climate also have significant impact on employee service quality. It’s foundin the study that employee perceptions of work climate have important effects on theirwork effort & thus the quality of the service they rendered. In this internship I was attached to different people like TMO, SR, BP TSO etc. So I learnmaximum knowledge about market. With the help of these people I practically learndifferent strategies that AKTCL adopts in the marketing. During this internship I learntheoretical knowledge in a practical form. I did my work in field and offices both placesare very informative.So According to my opinion AKTCL is very productive as well as effective selling orientedcompany.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 6
  7. 7. INTRODUCTION TO THE STUDYMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 7
  8. 8. INTRODUCTIONTobacco Industry is one of the very few controversial industries operating in Bangladesh.Now, almost 100% of the consumption is being supplied by the local and multinationalmanufacturers operating here. This industry is also a key source of tax revenue for theGovernment of Bangladesh due to high tax structure of the industry. Tobacco products arecharged with as high as 70% tax of the total sales. This provided the Government toimpose strong control on profitability and expansion of the tobacco manufacturers. TotalCigarette industry is however only 30% of the total tobacco industry with majority drivenby non-filter tobacco products likes Biri, Gul, and Jorda etc. This 70% market is mainlydriven by DTI and AKTCL with their Biri products with many local operators operating inlocal hubs. The overall cigarette industry is now stable with a 3% growth yearly which isnot always consistent. The industry comprises of products varied with different tasteoffers and also price. Three major competitors compete in the market with small presenceof two other manufacturers and some local suppliers. British American TobaccoBangladesh (BATB) leads the market followed by Dhaka Tobacco Industries (DTI) anddistant third position by Abul Khair Tobacco Industries (AKTCL). Nasir Tobacco Company(NTC) & New Age have insignificant market share and locally present in many markets.Following are some of the key brands offered to the market by the major suppliers:• BATB – Benson & Hedges, John Player Gold Leaf, Pall Mall, STAR Filter, Viceroy• DTI – Castle, Navy, Sheikh White, Sheikh Full Flavor, Five Star, K2• AKTCL – Marise, Sunmoon, Marise White, Super King white, Rally, Special Abul BidiThe market is almost saturated with growth and decline of segments among themselveskeeping the standards vibrancy in the industry. Cigarette though as a commodity, hasstrong distribution network and commonly carried by general outlets all over the country.It is a time tested industry with one of the key business for all of the Group of Companiesoperating. The product has a general appeal and still considered to be source of businessfor the traders. The mass distribution network set by the manufacturers though however,reduced margins at different levels of supply chain channels, yet traders did not loseinterest because of consistency in demand and supply.Cigarette being a product common to both mass and upper class has impact of theongoing economy and consumption power of the buyers. Being a regular consumedproduct, disposable income of citizens has significant impact on the mix of the industry.The industry has its own demand and supply situations, fluctuations, price sensitivity,elasticity, forecasting techniques and impact of seasonality and occasions. Like all theMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 8
  9. 9. other commonly used products, it has fluctuations in a demand year and socio-economic,environmental and political factors have significant impact on tobacco consumption.A Brief Review of the Tobacco Story to 1964The surprising thing about the history of tobacco in Western Society is not so much howpervasive its presence has been, but how controversial its use has been. By 1607 theVirginia company had landed in Jamestown with the goal of producing tobacco profits forthe English crown. Throughout the 18th century tobacco use was encouraged. But evenas a pervasive consumer good, it still retained a "faintly immoral" reputation. ThomasJefferson was a proponent of its use and saw profits for government in its taxation anddistribution. This position is reminiscent of what is happening today with tobacco taxesbeing used as the source of regulatory capital. With the advent of the cigarette in the 19thcentury, tobacco became even more widely used. The mechanization of cigaretteproduction, the brain child of James Buchanan Duke and his American Tobacco Company,dropped the cost of producing a cigarette dramatically in the decade between 1880 and1890. In effect, "Buck" Duke, whose statue with a cigar in hand presides proudly over theDuke campus to this day, was among the first real "leaders" of the tobacco movement. Asthe Henry Ford of tobacco production, he made the product vastly more available andaffordable. In the 1920s cigarette usage spread as women turned to cigarettes for the firsttime (emboldened perhaps by the passage of the 16th Amendment extending them theright to vote). Schudson reports that cigarette consumption per capita "was remarkablysteady from 1913 to 1945, rising when the real income per capita rose, falling when realincome fell." During this period the sales of big tobacco companies grew. During War IIcigarette use was reinforced among the military, which once again became the largestdistributor of "free" cigarettes.STATEMENT OF THE PROBLEMMost of the people of Bangladesh are illiterate. Those who are educated they do not havemuch more practical and analytical knowledge to make better prospect of their life. In thiscase people need to get involved to do the productive work and getting job in the nativecompany to improve our local productivity.As a local company Abul Khair Group doing potential deed in our country where more thanthousand employee working whole around the Bangladesh.ORIGIN OF THE STUDYThis is the last part of BBA program. As a professional degree it is essential to fulfill all therequirements the program demand. Only after preparing & submitting the report thisprogram becomes completed. Ascertainment of the Dean, Department of BusinessAdministration, Stamford University Bangladesh, I compare this report from my practicalMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 9
  10. 10. experience. I earned at the time of my internship (10th November 2009 to 17th January2010) in Abul Khair Group under a distributor of tobacco commodity in Khilgaon area,which should be submitted on 2010.OBJECTIVE OF THE STUDY(a) Broad Objective:The ultimate objective of the study is to gain real life exposure in any kind of servicesector get a clear idea about sales strategy and promoting brand.(b) Specific Objectives:  Various consumer perceptions about cigarette  Different positioning strategy of AKTCL  Market monitoring of AKTCL program  To determine the origin of consumer perception & positioning strategy in terms of Tobacco organizations in Bangladesh  Informative promotional activity to inform consumer about the product  About the Communication of different media  To understand the selling activity and working climate  To experience the problem solving strategyNEED AND PURPOSE OF THE STUDYThe purpose of the study to contemplate the knowledge and experience accumulated fromthe internship program according the set guidelines. This study comprises of anorganization part and a project part. The purpose of the first part is to study and analyzethe organization with special emphasis on its background. On the other hand the projectpart enables the intern to study a problem and to arise at a feasible and implementalsolution with the help of different analytical tools.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 10
  11. 11. METHODOLOGY OF THE STUDYMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 11
  12. 12. SCOPE OF THE STUDYThe distributor is covering the area if we consider Khilgaon as a center, Rampura in NorthWest poll, Bonosri in North poll, Madarteck in North East poll, Jatrabari in East poll,Motijheel in East South poll, Shantibag in South poll, Sonargaon Hotel Mogbazar in Westpoll side.LIMITATION OF THE STUDYThe present study was not out of limitations. I faced some limitations at the time ofpreparing this report. But as an intern it was a great opportunity for me to know the salesactivities. Some constraints are as follow; • One of the major limitations is the shortage of time. Since the officials had no enough time to respond toward my query but they had tried their best to help me to provide information. • Because of the limitations of various sources of information the report doesnt contain many important information and data. So, I was incapable to provide valuable information. • The main constraints of the study are inadequate access of information, which has hampered the scope of analysis required for the study.SOURCES OF DATA(a) Sources data:All marketing information comes either from internal sources to the firm or from externalsources during the project.(b) Tools of data collection:(I) Primary Data: Data originally collected for an investigation are known as primary data.Such data are original is character and are generated in large number of surveys by someindividual institutions.(II) Secondary Data: The data, which are collected for some earlier research work and areapplicable or useable in the study. I have presently undertaken that the secondary datacan be divided into two types. Such as – (1) Internal Secondary Data (2) External Secondary DataSecondary data are obtained by visiting competition offices and is the report of thecompany. Both primary and secondary sources of data were explored for the study.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 12
  13. 13.  Primary Sources: (I) Official records of AKTCLCL. (II) Face to face interview with the AKTCLCL officials Secondary Sources: (I) Monthly financial report of AKTCLCL (II) Resume of the activities of the international institutions (III) Through different web address. (V) Other published materialsBACKGROUND OF THE STUDY(a) Organizational Background of the study:Having an understanding of customers is not enough; today’s companies are starting toplay as much attention to tracking their competitors as to understanding their targetcustomers. A company should constantly compare its services, price channels andpromotion with those of its close competitions. Like other number and profitable tobaccofirm AKTCL also consider competition carefully. Quality is highly considered in case offoreign marketing but in case of home marketing it is in different presently. Need toconduct regular attractive and informative promotional activities.(b)Theoretical Background of the study:AKTCL one of the most promising local segmented corporate in Bangladesh. The alreadylaunched brands of the AKTCL have been gaining popularity among all lower segmentedsmokers. It gained popularity particularly among low segmented people and old agedpeople.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 13
  14. 14. ORGANIZATION PROFILEMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 14
  15. 15. COMPANY PROFILEAbul Khair Group is one of the largest and rapid growing companies in Bangladesh. It is afamily oriented business. It was established in 1953 by late Abul Khair. The companystarted with Abul Bidi, still a familiar brand for those who smoke bidis. Later on, thecompany expanded its business to other sectors. It is now one of the most successfulcompanies in terms of professionalism and management excellence. The main businessobjectives are to prove guaranteed quality, fair and competitive price and optimumservices leading to total consumer satisfaction.The product lines of Abul Khair Group include Fast Moving Consumer Goods (FMCG),Industrial Products and Trading. The company has its prime manufacturing ventures insteel products, food and beverage, condensed milk, full cream milk powder, cement,tobacco, soyabean oil, coconut oil, butter oil, tea etc. Over 10,000 personnel are workingfor this renowned company directly.Among the several units of Abul Khair Group, milk and beverage is one of the most vitaldivisions of the group. This division produces and packs condensed milk, powder milk,several types of juice, flavored milk, drinks, snacks and supreme quality tea. All of theseproducts ensure supreme quality, availability and customer satisfaction. All the productsare produced under better hygienic conditions by using sophisticated technology. TotalQuality Management (TQM) is practiced in this division (milk and beverage) and thats whythe company was awarded with the certificate of ISO and HACCP. Premium quality rawmaterials are used to produce all the products. These products are distributed under astrong distribution system. For this reason, the company has a large number of satisfiedand loyal customers with strong brand image.THE VISION OF THE COMPANY“To attain quantitative and qualitative leadership in all the sectors we operate.”THE MISSION OF THE COMPANY“Consolidate our position in the areas where we lead and continue to invest in people,processes and technology to enhance our organizational capability to ensure long-termand substantial growth. Embracing change at every level to achieve highest level ofprofessionalism remains as the key focus for all.”MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 15
  16. 16. THE DIFFERENT SECTION OF ABUL KHAIR GROUP: Abul Khair Condensed Milk Industries Limited Shah Dairy Products Limited Abul Khair Condensed Milk & Beverage Industries limited Shah dairy Foods Limited Abul Khair Corporation Limited Abul Khair Tobacco Company Limited Abul Khair Steel Mills Limited Abul Khair Vegetables Oil Industries Ltd Abul Khair Properties Limited Smark Coconut Oil Products Limited Abul Khair Steel Mills Limited Abul Khair Tea LimitedTHE PRODUCTS OF ABUL KHAIR GROUP: Brands Name Brands Name Brands Name· C.R. Coil · Star Ship Mango Milk · Shaad Mango Drink· C.G.I. Sheet · Star Ship Pineapple Juice · Shaad Orange Drink· G.P. Sheet ·Star Ship Orange Juice · Shaad Pineapple Drink· Ridging · Star Ship Mango Juice · Shaad Lichi Drink· Star Ship Condensed Milk · Star Ship Chocolate Milk · Shadd Chanachur· Star Ship Full Cream Milk Powder · Seylon Tea · Shaad Badam Bhaja· Star Ship Fruit Juice · Shaad Snacks · Marise-Special Blend· Star Ship Soyabean Oil · Star Ship Coconut Oil · Sun Moon-Filter Kings· Star Ship Mustard Oil · Shah Cement · Marise White· Jhalor · 42 No. Abul Bidi · RallyMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 16
  17. 17. STUDY OF THE REPORTMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 17
  18. 18. ABUL KHAIR TOBACCO COMPANY LTD.Abul Khair Tobacco is the most trusted name in the tobacco industry of Bangladesh. Thishas been in the industry since 1952 and has been exporting the best quality tobacco inmany countries of the world. Chittagong is an area located in southern Bangladesh wherea distinct type of flue cured tobacco is grown. The tobacco produced in this zone isaccepted as a semi flavor to flavor style. The color is light orange to deep orange andquality is riper with medium to high nicotine and medium sugars. The higher stalk positionproduces a ripe, orange to deep orange, full flavor style. This style of tobacco has goodsmoking characteristics to improve smoke perception.LEAF PRODUCTIONIn Bangladesh Flue Cured Tobacco started to grow from 1968 on experimental basis inKushtia district. After 6 years of extensive fieldwork and grower’s participation,Bangladesh became self sufficiency oftobacco in terms of volume.Subsequently, the extension andgrowing extended to elevated hily lightsoils of Chittagong, the southern part ofBangladesh, focussing on quality.In Kushtia NC-95 variety is grown for long time and yield is about 500 to 550 kilo per acre.The tobacco is usually lemon to lemon orange color, thin to medium bodied, pliable andsoft nature, low to low medium nicotine and medium sugars. The tobacco of Kushtiaregion is generally considered as good quality neutral filler.An American variety K326 is grown in Meherpur, Jhenaidah and part of Kushtia in NorthWest part of the Bangladesh. This tobacco has medium to high nicotine, orange tomahogony color and has medium sugars. In terms of quality, this tobacco is considered asripe, neutral filler to semiflavour tobacco. It has distinct taste and flavor, physicalappearance giving it different identify for improvement of Smoke quality of Cigarette.Chittagong is an area located in southern Bangladesh where a distinct type of flue curedtobacco is grown. The tobacco produced in this zone is accepted as a semi flavor to flavorstyle. The color is light orange to deep orange and quality is riper with medium to highnicotine and medium sugars. The higher stalk position produces a ripe, orange to deeporange, full flavor style. This style of tobacco has good smoking characteristics to improvesmoke perception.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 18
  19. 19. The projected volume forecast of flue-cured production is given below (Figure in million): 2004 2005 2006 2007 2008 Kushtia NC-95 28 30 33 37 40 K326 13 15 17 18 20 Chittagong SG-28 09 10 10.5 11 12 Total 50 55 60.5 66 72Out of the above production about 80% to be used for local consumption and 20% willremain for export.BURLEYBangladesh produces burley inRangpur, the northern part andManikgong, the center part ofBangladesh. The tobacco hasnatural burley note with medium nicotine.The volume projection is given below (fig. in Million) 2004 2005 2006 2007 2008 Rangpur 1.80 2.00 2.25 2.50 3.00 Manikgonj 3.00 3.50 3.75 4.00 4.50About 90% of the production is exported and only 10% is used for domestic.DARK VIRGINIA (DV)This tobacco is grown historically for consumption in Biri. Themanufacturers are not involved in growing this type of tobacco.Farmers of Rangpur and Dinajpur are traditionally growing thistobacco. Among the Dark Virginia there are varieties of categoryamong them JATI, MOTIHARI, TALIM are notable among them.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 19
  20. 20. JATI Traditional Bangladeshi variety air cured Tobacco, Heavy Bodied, brown to dark brown Color, strong smoke characteristics, high Nicotine 3-4.5%, Low sugar 1-2%. Used in Biri.MOTIHARI This is also another Bangladeshi native Variety of air cured tobacco, heavy body, round Shape leaf, brown to dark color high nicotine Tobacco (3-5% nicotine) and low sugar (1-2%). This variety is used for Biri and also used as chewingtobacco.TALIM Traditional Bangladeshi variety air cured Tobacco, Heavy Bodied, brown to dark brown color, Strong smoke characteristics, High nicotine 3-4.5%, Low sugar 1-2%. Used in Biri.ABUL KHAIR TOBACCO BRANDSAbul Khair is renowned for producing the finest quality of tobacco in Asia. Abul Khair has avast range of product to meet the needs of our existing and potential buyers all aroundthe world. Abul Khair’s products are widely exported in many countries of the eastern andwestern world. The cigarette manufacturing factory of Abul Khair Tobacco Company Ltd.is in Comilla. There are many brands of Abul Khair Tobacco. Among the brands thecommodities that are distributed by the M/S. HASHEM TRADING Khilgaon distributor areas follows;MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 20
  21. 21.  MARISE  MARISE WHITE  SUPER KING WHITE  SUN MOON FILTER KING  RALLY  SPECIAL ABUL BIDI  SALMON MATCH  FLAME BOX MATCH MARISEBrand Name: Marine Special Brand.Segment: Medium.Pack Design: Golden, Soft and Dreamy.Brand Identity: Red strip on upper side of golden packaging, golden foil, Ambushedbrand name and special engraved brand logo, company monogram and bar codes on HLP,Cigarette Die print.Brand Core Value: Finest special blend at lower nicotine andhigher sugar with smooth taste at lower price.Cigarette Size: King Size (84 MM).Tipping Paper: Regular Cork Tipping.Filter Plug: 21 MM, Cellulose Acetate Filter with higherpressure drop.Cigaretter Paper: High Porosity (minimum 60 coresta).Packet Size: SS-10s, HLP-10s and HLP-20s packet.After meeting the local demand of tobacco, Abul Khair has the provision of exporting themto some foreign countries.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 21
  22. 22.  SUN MOONBrand Name: Sun Moon Filter Kings.Segment: Low.Pack Design: Red & Blue (Sun and Moon shaped).Brand Identity: Crescent strip in between red and blue color combination.Brand Core Value: Super quality blend with lower nicotine and higher sugar. Smoothtaste and flavor.Cigarette Size: King Size (84 MM).Tipping Paper: Regular Cork Tipping.Filter Plug: 21 MM, Cellulose Filter.Cigaretter Paper: High Porosity (Minimum 50 coresta).Packet Size: SS-10s packet.After meeting the local demand of tobacco, we have the provision of exporting them tosome foreign countries. SPECIAL ABUL BIDIBrand Name: Abul Bidi (42 No. and Special),Launched Date: 1953,Segment: Very Low,Brand Core Value: Lower nicotine and higher sugar with Smooth taste and flavor.Packet Size: SS-10s packet. After meeting the local demand of tobacco, we have the provision of exporting them tosome foreign countries.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 22
  23. 23. BUSINESS PHILOSOPHYAbul Khair Group diversified their business in tobacco industry because in Bangladesh wehave 14 crore people. It is large market size to serve and cigarette demand is increasingcontinuously for the population. Abul Khair Tobacco wants to serve medium and lowsegmented cigarette for their target market.In tobacco industry, there are many local & foreign companies. Abul Khair wants to belocal unique tobacco producer with the same quality of foreign company. For this purposeAKTCL produces Rally for middle segment target group who like to live stylist life.AKTCL has its own marketing & sales department in AKTCL chamber. The functions of thisdistributor are not very wide and dynamic. Main functions performed by this departmentare:  Product orientation program  Collection of commodity transferred  Create market for its product  Push sale adopt  Problem solving of sales representatives  Developing communication strategy  Preparing sales forecast  Maintain sales management in the field  Keeping record of sales  Keeping record of stock  Collection & analysis of competitors activities  Setting Sales Target amount  Revising Sales Target amount  Maintaining Sales Target amountBeside these, it performs a number of activities to conduct their day-to-day business.Under marketing & sales department, a Brand team performs the key role of realmarketing.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 23
  24. 24. DISCUSSION ON THE REPORTMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 24
  25. 25.  MARKETING DEFINITION 1. The act or process of buying and selling in a market. 2. The commercial functions involved in transferring goods from producer to consumer. SELLING DEFINITIONSelling is trying to make sales by persuading someone to buy ones product or service.From a management viewpoint it is thought of as a part of marketing, although the skillsrequired are different. Sales often form a separate grouping in a corporate structure,employing separate specialist operatives known as Sales Representatives (singular: SalesRepresentative). Selling is considered by many to be a sort of persuading "art". Contraryto popular belief, the methodological approach of selling refers to a systematic process ofrepetitive and measurable milestones, by which a Sales Representative relates his or heroffering of a product or service in return enabling the buyer to achieve their goal in aneconomic way.This report will be dealing with the selling and distribution policy and strategies of AbulKhair Tobacco Company Limited’s distributor. The main study is to compare anddistinguish the distributor’s selling activities with the selling approach theory. SELLING THROUGH SALES PERSONFirms exist only when their products and services are sold. The various options that firmshave to sell their products are called go-to-market strategies. Strategies include sellingthrough the Internet, field sales representatives, business partners, value added resellers,manufacturer agents, franchises, telemarketers, and others. Selling firms determinewhich strategy to use based on such factors as the estimated value of the customer overthe lifetime of the relationship, often called lifetime customer value. Sometimes firms useseveral of these strategies at the same time. Using various strategies at the same time iscalled a multichannel strategy. Even with changes in technology, salespeople are still oneof the most important elements in many go-to-market strategies. Organizations whose go-to-market strategies rely heavily on salespeople are called sales-force intensiveorganizations. AKTCL is heavily trying to promote their commodities through thesalespeople. The activities of salespeople depend on the type of selling job they choose.Salespeople often have multiple roles, including client relationship manager, account teammanager, vendor and channel manager, and information provider for their firms. AKTCL’ssalespeople also play these types of role in the selling market.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 25
  26. 26.  Selling StrategiesA number of specific selling strategies come under the umbrella of sales or selling,including the following:  Cold calling  Consultative selling  Direct selling  Guaranteed sale  Needs-based selling  Persuasive selling  Price based selling  Relationship Selling  Target account selling COLD CALLINGCold calling is the process of approaching prospective customers or clients, typically viatelephone, who was not expecting such an interaction. The word "cold" is used becausethe person receiving the call is not expecting a call or has not specifically asked to becontacted by a sales person. From the above study we have already come to know thatthe selling process of the TSO Md. Anwar Hossain’s troop is not actually matching with thedefinition of cold calling selling strategies. So it can be easily say that the distributoragency of Mohsin is not actually performing the cold calling selling strategy. CONSULTATIVE SELLINGConsultative Selling is a selling technique that emphasizes the dialogue between thesalesperson and the customer. Before talking product and/or service, the salespersonstrives to learn about the customers needs, and may even help the customer identify andphrase these needs. Then, instead of delivering a standard sales pitch about a product orservice, the salesperson can sell a tailored solution that meets the customers needs, usingthe customers language.There are three primary differentiators that mark a Consultative Salesperson: o They ask more questions. o They provide customized (as opposed to generic) solutions.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 26
  27. 27. o Their calls are more interactive.The customers needs are identified by the Consultative Salesperson through acombination of preparation and interactive probing. Above definition cleared that in termsof consultative selling strategy, products or commodity are well decorated after a need beidentified. It is known to us that the commodities of AKTCL are ready or produced beforethe need of customer is identified. So, we can straightly as well as clearly say that theMohsin’s distributor is not actually performing or adopting the consultative selling strategytoo. DIRECT SELLINGDirect selling is a retail channel for the distribution of goods and services. At a basic levelit may be defined as marketing and selling products, direct to consumers away from afixed retail location. Sales are typically made through party plan, one to onedemonstrations, and other personal contact arrangements. A text book definition is: "Thedirect personal presentation, demonstration, and sale of products and services toconsumers, usually in their homes or at their jobs."According to the WFDSA, consumers benefit from direct selling because of theconvenience and service it provides, including personal demonstration and explanation ofproducts, home delivery, and generous satisfaction guarantees. Direct selling is distinctfrom direct marketing because it is about individual sales agents reaching and dealingdirectly with clients. Direct marketing is about business organizations seeking arelationship with their customers without going through an agent/consultant or retailoutlet.By far the majority of direct selling companies use a multi-level compensation plan, wherethe agent is paid not only for their own sales but also a percentage of the sales of otherrepresentatives they introduce into the organization and help train.We know that the basic commodities of AKTCL are cigarettes. Sometimes, TSO Md. AnwarHossain adopt direct selling strategy to promote brands. During my internship, I haveexperienced this type of strategy adopted by the TSO Md. Anwar Hossain to promoteMarise brand. TSO trained all the SR and BP about the technique that he actually wants toadopt. Then he divided all of them into team basis in different region to promote theirbrand with a team leader. They were trained to give free sample if necessary to thosecustomers who are the smoker of competitive brand. GUARANTED HOME SALEThe guaranteed home sale is a program offered by some realtors in North America. Theprogram guarantees that a home will be sold for a certain amount of money and by acertain date, or the realtor (or in some cases the brokerage or an investor) will purchasethe house. This type of selling strategy is not using by the Mohsin’s distributor.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 27
  28. 28.  PRICE-BASED SELLINGPrice-based selling is a specific selling technique in which a business, exclusively reducedtheir price in attempt to close the sales cycle. Price-based selling clearly exists inbusinesses such as: commodity sales, auto sales, hospitality, and even some retail stores.However, it is only recommended that commodity items like petroleum be sold exclusivelyby price. Price based selling does nothing more than erode your price, reduce profit levelsand creates an impression in your customers mind that all of your products and servicesare priced at a level to take advantage of them. The drawback to Price-based selling isthat it results in the good or service that is sold becoming a commodity and a commodityby definition is a product or service that has no differentiating qualities or characteristicsfrom competing products or services in its class. A 2007 Shop zilla survey asked 2000shoppers what the most important factor was in their buying decision, and 49% said priceis the most important.Most businesses sell their items, whether they are expensive automobiles, or inexpensiveservices based upon price. They do this not because it is the most profitable, but becausethey believe it is the easiest way to attract customers. Consumers and Business-to-Business buyers alike may be easily enticed to buy based upon price. Consumers arealways hunting for the best bargain and price has a direct impact on whether or not theywill buy a product or service. Businesses know that offering the lowest price gives them acompetitive advantage against other similar products the customer may be looking at.The goal of price based selling is to capture the business of price sensitive sellers.Customers who shop purely based on product cost will have the most interest in bargainbuys. Pricing is directly related to the revenue management department of a business, andany good revenue manager will make sure they are doing everything possible to maximizeprofits.The price of cigarettes is one of the most important factors affecting tobacco consumptionas high cigarette prices can prevent people from taking up smoking and encourage thosewho smoke to quit. The World Bank (1999) calculated that a 10% increase in the price ofcigarettes can reduce demand by around 4% in high income countries. Due to this highcost of cigarettes many smokers are switching to lower priced discount brands.As it is assured that the cigarette of AKTCL is lower segmented brands, all types of lowerincome based customer are the market of AKTCL.Various MethodsPrice-matching guaranteesPrice-matching guarantees are commonly used in consumer and industrial markets. BestBuy has always been known for their price-matching guarantee as well. While a store withprice matching guarantees has no fear of losing customers to rivals’ price cuts, it hasMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 28
  29. 29. every incentive to raise its own price to charge a higher price to its loyal customers. It isan anti-competitive tactic that warns competitors not to attempt to steal market share byundercutting prices. AKTCL is not actually allowed this type of selling strategy. That doesnot mean the price is different from the competitors, price is same as far as the lowersegment is consideration.Price slashingPrice cutting is a sales technique that reduces the retail prices to a level low enough toeliminate competition. Businesses will implement this as a way to under-cut thecompetition and offer the best price to the consumer. Basically, no company implementthis type of method in terms of cigarette industry.DiscountingDiscounting is something seen in almost every retail store, and grocery store. Discountingis present in just about every business in some way, whether it be coupons, advancedpurchases, or bulk buying, businesses are quick to offer a pricing discount. AKTCL has asystem of free pack program. If any retailer gives 7 inside cover of any brand he or shewill be given a single pack brand totally free. Coupons and promotions give an economicincentive for the customer to use when purchasing a brand. The effect on consumerredemption of coupons has mostly been positive as it attracts customers, and gives theminterest in a particular brand. Discount brands are becoming more popular among lowerSocio-economic Groups. As the price of cigarettes continues to increase smokers arebecoming more likely to trade down to discount brands which are becoming more andmore acceptable due to their increased recognition and popularity in the market-place.Overall, the industry recognizes that discount brands have the potential to fulfill both theemotional needs and the practical needs of many smokers.HagglingHaggling, otherwise known as bargaining, is most present in businesses where items haveno fixed price. Sellers will often price the item higher than they want to sell it, knowingthat buyers are going to want to negotiate the price.As the prices of AKTCL brands are fixed, there is no option to bargain but to shift thesegment or taste.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 29
  30. 30.  TARGET ACCOUNT SELLINGAKTCL distributor follows the TAS strategy. This selling target varies from 1020 to 1030unite per SR daily. Not only SR but also this selling target varies from brand to brand.When this target is given to each SR for one month, each day all the SRs are givenreminder by the TSO about the monthly selling target improvements. If any one fails tocomplete his or her daily target unit, the next day he will be reminded about the monthlytarget and the previous uncompleted target amount to fulfill that day, so that the SR cancomplete his monthly selling target properly. Introduced in an intensive, highly interactiveprogram, the TAS process helps sales professionals win more business by: • Focusing on the right issues with the right people at the right time • Developing effective plans for sales campaigns • Communicating more effectively within the sales team • Shifting the focus of salespeople from tactical to strategic issues(TAS) is a structured, repeatable methodology that enables sales organizations to:  Improve bid-to-win ratios  Shorten selling cycles  Minimize discounts and negotiated concessions  Establish clear, unique business value with customers  Reduce selling costs through more efficient resource allocation  Increase sales per employee  Build successful sales organizations quickly by getting new employees more productive sooner  Decrease risk of unprofitable, resource-intensive contracts  Enhance account control and forecast accuracy  Eliminate departmental barriers with a common sales languageTAS emphasizes real-world application by testing the program concepts against live salesopportunities. Throughout the program, sales professionals create a refined, winning planfor securing new business. TAS is highly effective in organizations with sellingenvironments marked by: o Intense competitionMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 30
  31. 31. o Customer buying decisions with high financial, strategic or organizational impact o Decision makers at many levels in the customer organization, often requiring a team sale o Protracted, costly sales cycles o Big rewards for success, and even bigger costs for failureTarget Account Selling Includes Learning To:⇒ Assess the OpportunityTAS is an objective process that reveals critical customer, business and competitiveinformation, and drives an informed decision to compete. AKTCL adopted this type ofselling strategy to assess the opportunity for the sales persons.⇒ Set the Competitive StrategyTAS creates or shows a framework for determining the most effective approach to winningthe customer’s business. Through this type of selling strategy salesperson of AKTCL cando competitive selling effort every period of their job schedule.⇒ Identify the Key PlayersTAS is a method to identify the roles and status of people who affect or will be affected bycustomer buying decisions. Through TAS strategy a salesperson of AKTCL can be able toknow the monthly mission to do. So that, he can moves himself according to the monthlytarget schedule.⇒ Define the Relationship StrategyTAS is a process to align with influential decision-makers in the buying organization whocan help you win the sales opportunity. As target has been prescribed monthly andrevised everyday, they keep good relationship with the key buyer of their commodity.⇒ Turn Ideas into ActivitiesTAS is an approach to identify specific tactics needed to win the opportunity and theresources required to support each task. According to the target, every salesperson ofAKTCL tries to push sale through their interpersonal skill with emotional motivation.⇒ Test and Improve the PlanIt is a structured process that analyzes Opportunity Plans and refines them to the highestpossible quality for implementation in the field. To foster teamwork and maximize thereturn on training investment, sales teams should attend the TAS program with theirMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 31
  32. 32. managers. Team members can then immediately apply the Target Account Selling toolsand language for more effective collaboration in the field. DESCRIBING SALES JOBSDescriptions of sales jobs focus on six factors: 1. The stage of the buyer–seller relationship. 2. The salesperson’s role. 3. Importance of the customer’s purchase decision. 4. Location of salesperson–customer contact. 5. The nature of the offering sold by the salesperson. 6. The salesperson’s role in securing customer commitment. Stage of Buyer–Seller Relationship: New or ContinuingSome sales jobs emphasize finding and selling to new customers. Selling to prospectsrequires different skills than selling to existing customers. To convince prospects topurchase a product they have never used before, salespeople need to be especially self-confident and be able to deal with the inevitable rejections that occur when making initialcontacts. On the other hand, salespeople responsible for existing customers place moreemphasis on building relationships and servicing customers. Salesperson’s Role: Taking Orders or Creating New SolutionsSome sales jobs focus primarily on taking orders. This type of selling jobs is already inAKTCL. SR goes to the route level and takes order from the shopkeepers. Sometimes tocomplete their daily target unit, they push shopkeepers to buy their brands, of coursepersuasive and emotional way rather than forceful way. Importance of the Purchase to the CustomerConsumers and businesses make many purchase decisions each year. Some decisions areimportant to them, such as purchasing a building or a business telephone system. Othersare less crucial, such as buying candy or cleaning supplies. Sales jobs involving importantdecisions for customers differ greatly from sales jobs involving minor decisions. Considerthe company that needs a computer controlled drill press. Buying the drill press is a bigdecision. The drill press sales representative needs to be knowledgeable about thecustomer’s needs and the features of drill presses. The salesperson will have to interactwith a number of people involved in the purchase decision. But the AKTCL cigarettes is notso heavily expensive not so important or convenient goods, that’s why purchasing decisionMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 32
  33. 33. is not important in this case. As results, all the BP and SR have to be very sincere abouttheir selling effort. Location of Salesperson–Customer Contact:Field or Inside Sales⇒ Field salespeople spend considerable time in the customer’s place of business,communicating with the customer face-to-face.⇒ Inside salespeople work at their employer’s location and typically communicate withcustomers by persuasive and push sale method. Field selling typically is more demandingthan inside selling because the former entails more intense interactions with customers.Especially BPs of AKTCL are trying to play this type of role. Field salespeople are moreinvolved in problem solving with customers, whereas inside salespeople often respond tocustomer-initiated requests. The Nature of the Offering Sold by the Salesperson: Products or ServicesThe type of benefits provided by products and services affects the nature of the sales job.Products such as chemicals and trucks typically have tangible benefits: Customers canobjectively measure a chemical’s purity and a truck’s payload. The benefits of services,such as business insurance or investment opportunities, are more intangible: Customerscannot easily see how the insurance company handles claims or objectively measure theriskiness of an investment. Intangible benefits are harder to sell than tangible benefitsbecause it is difficult to demonstrate intangible benefits to customers. It is much easier toshow a customer the payload of a truck than the benefits of carrying insurance. Ascigarette commodity AKTCL giving one pack free for those retailer who buy one cartoncigarette that means if any retailer buys 200 cigarette (One Carton) 10 cigarette or onepacket free for those retailer.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 33
  34. 34. EMPLOYEES or HIERARCHYIn AKTCL marketing and sales department have a number of employees working underR.S.O. (Regional Sales Officer). R.S.O. sits on the 1 st floor of the chamber. Numbers ofemployees are working in different positions in the ground floor of AKTCL chamber. Here Ifound: (R. S. O.) Regional Sales Officer (Atiqul Ehsan) (T. S. O.) Territory Sales Officer Md. Kamruzzaman (Md. Anwar Hossain) Md. Fazlul Karim Md. Abdul Latif (Z. I.) Zone In charge Md. Shoriful Islam Total 4 (Z. I.) (S. R.) Sales Representative = Total 20 (S. (V. P.) Van Puller = Total 20 (V. P.) M. R. Md. Mitul Hassan (Merchandising Representative) Total 2 (M. R.) Md. Zakir Hossain (B. P.) Brand Promoter = Total 27 (B. P.)Regional Sales Officer (R. S. O.) sits on the first floor of the chamber. In numbers (R. S.O.) is one and he controls three territory offices, which are located in Dhanmondi office,Basabo office and the Khilgaon office. I am doing my internee in the Khilgaon branchdistributor. Among the other staffs Territory Sales Officer (T. S. O.) is one in number andhe control a large area’s sales volume. T.S.O. is the in charge of a single office. He willresponsible for the one particular area’s sales target. He controls all the other staffs of theMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 34
  35. 35. offices. Among the Zone In charge (Z. I.) they are 6 in numbers but during my internperiod I have found four Z. I. and I have also exposed their name too. Less than six ZoneIn charge there are twenty Sales Representative (S. R.) as well as Van Puller (V. P.) witheach S. R. There have also two Merchandising Representative (M. R.) who works under T.S. O. too. About twenty seven Brand Promoter (B. P.) also working under personalsupervision of T. S. O. These employees have divided by zone basis and each zone hasan in charge. All the forces and staffs are recruited and maintained by the territory salesofficer Md. Anwar Hossain. Territory Sales Officer (T. S. O.) recruited by the head officerecruiting procedures. Sales team working all over the zone. Six zones in charge managethese sales forces and try their hard to fulfill their monthly sales target unit.The actual marketing activities of AKTCL are performed by the Territory Sales Officer. Notonly that about the entire job under the marketing and selling department are directedand maintained by the T. S. O. Md. Anwar Hossain. ATTACHMENT OR JOB DESCRIPTIONI have done my internship on AKTCL and through my internee; I have learned the fieldselling executive job as well as employee control strategy as well. I have gone through alot of practical job experience; which I have tried to mention them in my report aspossible as my best effort; REGIONAL SALES OFFICER ATTACHEMENTRole of Regional Sales Manager (R. S. O.)Regional Sales Officer is the team leader of his region. He motivates and impels his teammembers to achieve the targets. Basically he implements the distribution plan in his regionwith the help of his team. The regional manager reports to the head of Trade Marketingand Distribution. A Regional Sales Officer (R. S. O) controls three or four area’sdistribution process and holds the power of sales territory management. R. S. O. helps outin the implementation and development of TM&D national plans and strategies for hisarea. He is the team leader for his area team. He utilizes the company human resources inan effective manner. In addition he also utilized the distributor resources in a manner bywhich he gains the maximum output.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 35
  36. 36.  TERRITORY SALES OFFICER (T. S. O.) ATTACHEMENTRole of the Territory Sales Officer (T. S. O.)A Territory Sales Officer (T. S. O.) is a key person of AKTCL. He focused outlets for whichhe makes & executes trade marketing & distribution plan to meet out. T. S. O. Assists theR. S. O. for implementation of above said goals in an effective and efficient manner.Further he directly interacts with the distributor and Trade. The achievement of TM and Dtargets and merchandizing is one of the core responsibilities of T. S. O. He also managesthe given human resource of own and distributor. Even sometimes or it can be said thatmost of the cases he recruits his own Sales Representatives as well as brand promoterand others also. His main agenda behind the recruiting personnel is to fulfill the tradingtarget amount given by the TM and D.  Visiting the outlets everyday  Distribution management  Intelligence of market  Cycle activity execution  SR management  Wholesale management  Merchandising selection & placement  Administration of record & stock  Supervision on Zone In charge (Z. I.)The basic responsibility of a T. S. O. is to visit most of the selected outlets in a month tokeep in touch with the market information of our own brand and competitors. He go tothis outlet and create a good relationship with shopkeeper and with the help of goodrelationship he can increase the sale of AKTCL brands. Government bans advertisement oftobacco, so T. S. O. focuses on these retailers because they are the advertisers of AKTCLbrands.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 36
  37. 37.  AREAS OF T. S. O.The area of Md. Anwar Hossain, T. S. O. of Khilgaon distributor agency is vastly wellorganized. He perform the major part of hi job in building a good image of his brandstoward the customer as well as retailer. He perform and supervise the below activities; Comola Pur Stadium Saeda Bad Road Shah Jahan Pur Golapbag Chowrasta Under Khilgaon Fly Over Tikatuli Chowrasta Khilgaon Chowrasta Razdhani Super Market Sepahibag Area of Kaptan Bazar Meradia Nobabpur Road Bonosree Territory Rampura Sales Officer Bongshal Road (T. S. O.) Khilgaon Jhilpar Nazim Uddin Road Modhu Bag Road Md. Anwar Chankhar Pull Hossain Mogbazar Road Dhaka Medical College Beylli Road TSC and Shahid Minar Eskaton Road Shahabag Road Shahabag Road Right Side OnlyMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 37
  38. 38.  RESPONSIBILITY  Review discussion on the previous day’s morning meeting topics and the instructions given  Discussion on the solution to the problem created during the previous days  Give instruction to all the Sales Representatives as well as Zone In charge in accordance to the head quarter direction if there are any  Let the SR inform to the retailer about the particular decision taken by the head office for the retailer  Writing down some important suggestion from the SR which were given by the retailer and let inform to the head office to emphasize on that  Special instruction giving to the SR, BP or ZI about the promotional activities taken by the head office  In case of employee absence, let know to all employee about that absenteeism  If there are any logistic problems discuss with the BP, SR, ZI about the problems to solve  Discuss with the distributor about the DD/TT stocks  If there are any promotional activities going on discuss with all the BP,SR and ZI about the matter  After distributing all the daily task of BP, ZI and SR, supervise them all ATTACHEMENT WITH MERCHANDISING REPRESENTATIVESPROMOTION CO_ORDINATORMerchandising Representatives (M. R.) is attached with Regional manager and give reportto him about any activity that he performs. In my office there are two MerchandisingRepresentatives (M. R.) and they are Md. Mitul Hassan and Md. Zakir Hossain. Companygives promotional material in regional office. M. R. coordinators control this and after thatthey divide 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. R. is to effective utilization of budget according to brand. 2 He should control the supplier management.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 38
  39. 39. 3 He must fulfill the distributor claim. 4 Maintain supplier settlements.⇒ BUDGET OF BELOW THE LINEIt is responsibility of M. R. to take care of budget allocation to the region with theapproved of Regional Sales Officer. He gives budget according to brand wise and heshould maintain brand expenses. His responsibility is to develop and execute promotionplan through T. S. O. Internally the sales promotion coordination with R. S. O. cycleplanning and brand manager for promotion design and executions etc. Externally he dealswith suppliers contractors trade channels organizers and consumers. He also deals withlocal administration for public relation and permissions to ensure smooth execution ofpromotion, sponsorship activities and promotion van operation etc.⇒ PURCHASE ORDERIt is conduct after the approval of indent from Regional Sales Officer. It is permeationfrom Regional Sales Officer and it conform the availability and allocation of funds forcertain activity that relates to promotion.⇒ GOOD RECEIPT NOTEIt is essential before the processing of bills and claims. After receiving GRN merchandisingand promotional coordinator perform next activity. ATTACHMENT WITH BRAND PROMOTERA Brand Promoter (B. P.) works under the personal supervision of T. S. O. T. S. O. Givesthem overall instruction. At the end of day a B.P. give report to T. S. O. So we can sayTSO supervises all BP, SR, ZI VP as well as MR. The basic responsibility of BP is tocommunicate with customer and promote their brands. TSO divided all of the BP into tenarea with two or three members a group where necessary to do their promotionalactivities. TSO confirmed me that because of the government prohibition of advertisementin public, we have increases our brand promoter. I was attached with Md. Anwar Hossain(TSO). He is a graduate. He is very funny person. But when requires he can performextreme serious man in the office. His presentation is excellent. He is very careful aboutconsumer. His speaking power is very attractive. He acts upon all objectives of BP in realsense.So, I have learnt maximum knowledge about market with the help of Mr. Anwar Hossain(TSO). I saw other ZI but unfortunately they are not so much active. But Md. AnwarHossain (TSO) is very active. He has a sharp brain too. He is very cooperative and young.He properly does his duty to ensure the availability of all brand and specially Rally andMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 39
  40. 40. Marise brands. He convinced the consumer with the help of incentives like, cap, digitalclock, glass, plate as well as free sample of particular brand etc.AKTCL gives a Plano gram to every BP. So Md. Anwar Hossain (TSO) also works accordingto Plano gram. He put Marise brand stock then Marise White, Super King special filter issecond and at last Rally and Special Abul Bidi. He was also decorating the out let withmerchandising material.OBJECTIVES OF BP o Topping Up o Availability o Visibility o Pack display o Promotion awareness o Consumer contact o Merchandising awareness o Competition awareness o Market intelligence o Out of stock ATTACHEMENT WITH SALES REPRESENTATIVESales Representatives are the key persons of the AKTCL company .We can say that SalesRepresentatives are the earning hand and air of AKTCL, so he is the only person whofaces all customers directly. So they can play a vital role in any company. AKTCL takescare of their Sales Representatives. AKTCL conducts lot of training programs for SalesRepresentatives. AKTCL conduct training program once during recruitment period. Md.Anwar Hossain (TSO) directly train them. These training undergoes into threedepartments. After all these three way training process, (TSO) Md. Anwar Hossain reexamine them for their effective training completion. Sales Representatives are workingunder the direct supervision of Zone In charge as well as Territory Sales Officer (Md.Anwar Hossain). Zone In charge is a line manager of Sales Representatives. AKTCL is suchtype of company in which most of Sales Representatives are educated, so that, they donetheir work in proper manners. The basic responsibility of Sales Representatives is tocommunication of product and promotion both. Work of Sales Representative is to getorder from the outlets and to deliver the stock requirement in accordance with TSO’sMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 40
  41. 41. instructions. A Sales Representative should be a best communicator. He should create along term and good relationship with their shopkeepers to get highest benefit from trade.A Sales Representative should responsible for providing after sales service in case of anycomplaint means return of D+D (damage & dry) stock etc. I was attached with Md. AnwarHossain.⇒ NINE STEP SALES CALLNine step of call is very effective for salesmen and as well as employee of AKTCL. Withthe help of these steps a salesman done his job in a good manner he accomplishes hiswork within time. These steps are;  Preparation  Approach  Stock check  Presentation  Closing  Internal store marketing  Consumer contact  Evaluation  Administration PREPARATION:In this first step a salesman should check the stock, which is required in market. In themorning he should be neat & clean if he feels any deficiency, he should be control thisdeficiency. He should check the van and he should have the cash memo and ballpoint. Allthe point also be checked by the TSO Md. Anwar Hossain too. APPROACH:Complete the passage from distributor to shop and when reach in shop he mustunderstand the behavior of shopkeeper. According to the behavior of the retailers, the SRapproach in accordance with the situation. STOCK CHEK:MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 41
  42. 42. SR of AKTCL check all brands are available in the shop and if any brand is short then heshould complete the stock and give the stock to shopkeeper according to its sale volume. PRESENTATION:If SR has any information about any brand of AKTCL, he should give to shop keeper and ifAKTCL offers any scheme and promotion, the responsibility of SR is to give all theseinformation to shop keeper. CLOSING:Give maximum material to shopkeeper. Check cash memo and at the end, close all writtenwork.A Sales Representative cannot act on nine step of call, because lack of education a SalesRepresentative faces a lot of problems. I saw shopkeepers were very angry with SalesRepresentative. They demand shirts, Caps, wall clocks and other such incentives. So SalesRepresentative also faces these types of problems. IN STORE MARKETING & MERCHANDISING:If AKTCL gives promotion to any shopkeeper, Salesman should check the display of allbrands, arrangement of all brands. The place where these promotional activities exist,should be neat & clean. COSUMER CONTACT:This step is most important for salesmen and sales promoters as well. In which weconvert the smoker to AKTCL brand if he use any other brand. In this step SR convincethe customer to use the brand of AKTCL. ADMINISTRATION:Administer to all activities like cash memo, DSD etc. All the SR has to report everyday indaily cash memo. SR also has to perform administrative job during field work. EVALUATION:Sales Representatives always do evaluation of self-analysis during whole day and if anydeficiencies occur note them and control in the next tour. An ordinary SR try to maintainthe nine step of sales call process.A salesman cannot act on nine step of call because lack of education a salesman faces alot 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 ofproblems.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 42
  43. 43. ⇒ CUSTOMER RELATIONSHIP MANAGEMENTA Sales Representative should build a very healthy relationship with the retailers. Heshould have a strong grip on local languages. He should checks rates offered to retailers.He also must offer or inform about the incentives given by the organization to the retailer.Sales Representatives of AKTCL is very sharp. They have all the skill to support theirselling job.⇒ FIXED SALES SUMMARY (FSS)A Sales Representative should monitor brand wise sales productivity. In particular beatFSS is essential tool. In TAS selling strategy all the target of each brand has beenprescribed by the superior.⇒ SALES REPRESENTATIVE’s SALERYAKTCL gives salary on monthly based instead of sales commission based to its SalesRepresentatives. AKTCL gives monthly salary according to the company regulation. AKTCLclear the monthly salary within 30 days. The actual working day period according to theAKTCL regulation and policy is 25 days working period and remaining 5 days left for theirpayment clearance. Friday is the weekly holiday for the all employees. During Eid specialvacation period, it is done just before the Eid day.⇒ STEPS CLAIM PROCESS OF DAMAGED & DESTROYED STOCKIn case of any DD or DDT a sales representative of AKTCL follow the belowformality to support the retailer demand; 1: Collection of D+D stock 2: Physical presence & verification by T. S. O. 3: Entry on D+D book by T. S. O. 4: Entry on computerized summary of claim 5: D+D claim form preparation by distribution 6: Signature from T. S. O. 7: Handing over to TM&D for payment process.⇒ SALES REPRESENTATIVES TRAINING PROGRAMAKTCL is very caring company. AKTCL conducts Sales Representatives training programonce in a year. During my internship AKTCL RSO conducted a training program in indooroffice at first floor. There all the SR were gather together and trained by the RSO and byMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 43
  44. 44. the ZI as well as by the TSO after one day gap. This raining was occurring at 6:30 pm.That was the end time of that day’s sales job. This time was selected by the AKTCLauthority because of not disturbing the regular sales volume. All Sales Representatives ofthis distributor were there. In which two T. S. O. are also available there. At the start ofprogram, T. S. O. gave introduction to all of Sales Representatives to RSO for makingprogram more interesting.T. S. O. plays a game between Sales Representatives. For this proposes they set teams.Every team conducts 5 members or there are 5 members in every team. The TSO train allthe SR about the 9 step sales call process. So, that was very interesting program and wasvery effective for Sales Representatives. At the end AKTCL launch to all of candidates.Timing of program was (6 to 8) pm. So, in two hour Sales Representatives learn maximumknowledge about 9 steps. At the end Md. Anwar Hossain gives instruction to all SalesRepresentatives. Actually the basic purpose of this program was to increase the efficiencyof all Sales Representatives. WARE HOUSE EXECUTIVE ATTACHEMENTWarehouse executive is accountable for the supply chain management of from areaswarehouse to the distributor. The name of ware house executive is Mr. Bappi. Warehouseexecutive’s other responsibilities are inventory control, system administration, receive dailymoney account from the SR, maintaining balance sheet, record maintenance and stockmanagement as per supply chain guidelines. The function of warehouse is to provide rightproduct, at right time, in right quantity in an efficient manner to satisfy TSO. “Warehousein -charge” and an excise officer in the routine operations assist warehouse executive.Production and supply chain department controls area warehouse.⇒ STOCK REGISTERAKTCL maintains a register that is called SD for the purpose of daily sales. This is the legalresponsibility 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, VDDThis is the annual marketing information register in which all the information about totalbrand of AKTCL on annually basis this register shows the market volume of AKTCL. It alsoMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 44
  45. 45. shows the secondary sale volumes, coverage of daily sales stock. With the help of thisregister we see accumulated sales trends and brand wise sales trends.⇒ ORDER CONTROL FORM (OCF) / DAILY SALES DRAFTDistributor produced OCF/DSD in which defined the estimated consumer demand. OCF isdaily average channel wise sale and it is prepared for each days forwarded as well asapproved by the TSO and recorded by the ware house in charge Mr. Bappi.The Sample of the DSD or OCF is as follows;By the above draft all the SR summarizes their daily sales and report this paper to theZone In charge and approved by the TSO Md. Anwar Hossain and after all this activitiesdone Assistant Manager note down the daily sales and receive the cash amount from theSR. After receiving the cash from the SR, all SR become relieve from their day’s job. Thus,AM Mr. Bappi maintain the account records and also prepare monthly profit and lossaccount.⇒ PLANNING ABOUT JOURNEYTSO set out the monthly activity plan for SR as well as ZI and BP too. This is calledjourney planning. A Territory Sales Officer visits those shops, which have high sale volumeand very big occurrence happened. So, with the help of this a T. S. O. easily plan out theirmonthly activities. A ZI planned about the monthly journey in a written form and TSOrevise them very often, whether they are doing appropriately or not. With the help of thismonthly journey planning a TSO can very well know and understand when and where a ZIMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 45
  46. 46. can be found. If a ZI or any other personnel can not be found in accordance with theplanned paper, then those personnel will be punished in accordance with the ruleregulation of the AKTCL.⇒ OBJECTIVE OF JOURNEY PLANNING 1: It is the basic responsibility of T. S. O. to visit all rural areas. 2: He should also visit wholesale market. 3: the main objective of journey is to contact with Sales Representative. 4: In the morning T. S. O. gives instructions or planning to all SRs. 5: In distribution he should also control distribution all of management. 6: Planning of 400 outlets minimum 7: Another basic responsibility is to keep control over Zone In charge RCS (Retail Classification System)Every T. S. O. visits 600 outlets monthly. He visits 20 outlets every day. So, retailclassification survey is called as RCS. RCS gives information about classification of outletsin connection to volume, quantity. With the help of RCS a T. S. O. performs trademarketing and development activities. RCS provides ease to develop beats of SalesRepresentative & coverage plan. With the help of RCS we can get the information of totaloutlets.SALES REPRESENTATIVES REQUIREMENTCUSTOMER AND PRODUCT KNOWLEDGEEffective salespeople need to know how businesses make purchase decisions and howindividuals evaluate product alternatives. In addition, effective salespeople need productknowledge—how their products work and how the products’ features are related to thebenefits customers are seeking. A SR should know about the price detail of the brands,about the promotional program regarding the brands.FLEXIBILITYThe successful salesperson realizes that the same sales approach does not work with allcustomers; it must be adapted to each selling situation. The salesperson must be sensitiveto what is happening and flexible enough to make those adaptations during the salespresentation. TSO of AKTCL Md. Anwar Hossain always trains to all the salesrepresentatives to be flexible during selling the commodity with the retailer. He also trainsthem to cope with the situation during the selling approach.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 46
  47. 47. CREATIVITYSuccessful salespeople use their creative juices to build bridges to their customers, gainlong-term commitments, and effectively manage relationships. Creativity is the trait ofhaving imagination and inventiveness and using it to come up with new solutions andideas. Sometimes it takes creativity to get an appointment with a prospect. It may takecreativity to develop a long-remembered presentation in the buyer’s mind or it takescreativity to solve a sticky installation problem after the product is sold.CONFIDENCESuccessful salespeople tend to be confident about themselves, their company, and theirproducts. They believe that their efforts will lead to success. Don’t confuse confidence,however, with wishful thinking. According to research, truly confident people are willing towork hard to achieve their goals. They are open to criticism, seek advice from others, andlearn from their mistakes. They expect good things to happen, but they take personalresponsibility for their fate. People who lack confidence, according to these same studies,are not honest about their own limits, react defensively when criticized, and set unrealisticgoals.EMOTIONAL INTELLIGENCESalespeople span the boundary between their companies and the companies’ customers.At times the objectives of the company can differ from those of the customers. Thecompany wants the salesperson to make profits, and the customer wants to buy a productthat meets his or her needs at the lowest price. Dealing with these conflicting objectivescan be very stressful for salespeople.COMMUNICATION SKILLSThe key to building strong long-term relationships is to be responsive to a customer’sneeds. To do that, the salesperson needs to be a good communicator. But talking is notenough; the salesperson must also listen to what the customer says, ask questions thatuncover problems and needs, and pay attention to the responses.TRUSTWORTHINESSMost salespeople work in the field without direct supervision. Under these conditions theymay be tempted to get up late, take long lunch breaks, and stop work early. Butsuccessful salespeople do not surrender to these temptations. They are self-starters whodo not need the fear inspired by a glaring supervisor to get them going in the morning orto keep them working hard all day. Spending long hours on the job is not enough.Salespeople must use their time efficiently. They need to maximize the time spent incontacting customers and minimize the time spent in traveling and waiting for customers.To do their job effectively, salespeople must organize and plan their work. Finally,MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 47
  48. 48. successful salespeople are motivated to learn. They must continually work at improvingtheir skills by analyzing their past performance and using their mistakes as learningopportunities.INDEPENDENCE AND RESPONSIBILITYMany people do not want to spend long hours behind a desk, doing the same thing everyday. TSO of AKTCL Md. Anwar Hossain is one of the examples of such person. They preferto be outside, moving around, meeting people, and working on various problems. Sellingideally suits people with these interests. The typical salesperson interacts with dozens ofpeople daily. Most of these contacts involve challenging new experiences. Selling alsooffers unusual freedom and flexibility. It is not a nine-to-five job. Most salespeople decidehow to spend their time; they do not have to report in. They have the freedom todetermine what they do during a day, to decide which customers to call on and when todo paperwork. Long hours may be required on some days, and other days may bringfewer demands. Because of this freedom, salespeople are like independent entrepreneurs.They have a territory to manage and few restrictions on how to do it. They areresponsible for the sales and profits the territory generates. Thus their success or failurerests largely on their own skills and efforts.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 48
  49. 49. MARKETING PROCESSDuring the past century most Companies were small and knew their customers first hand.Managers picked up marketing information by being around people, observing them andasking questions. During this century, however, many factors have increase of the needfor more and better information. As sellers use more complex marketing approaches andface more competition, they need information of the effectiveness of their marketing tools.Managers need more up-to-date information to make timely decision.In carrying out marketing analysis, strategies, planning, implementation and controlmarketing mangers need information at almost every turn. They need information aboutcustomers, competitors and other forces in the market place. One marketing executive putit this way – “To manage a business well is to manage future and to mange the future isto manage information. Increasingly marketers are viewing information just as input formaking better decision. But also as an important strategic asset and marketing tools.In this project work the topic was to “Marketing Strategy of Abul Khair Tobacco CompanyLimited”. During the project, a conclusive method of the marketing and selling approachwas followed to find out the selling concept and reality. While working on the project, itwas realized that the selling tobacco work is very hard to establish any marketingstrategies before making decision.MARKETING CONCEPTThere are different types of marketing concepts; Marketing Concepts Production Concept Product Concept Selling Concept Marketing Concept Societal Marketing Concept Customer ConceptMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 49
  50. 50. MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 50
  51. 51.  THE PRODUCTION CONCEPTProduction Concept is a concept where goods are produced without taking intoconsideration the choices or tastes of your customers. It is one of the earliest marketingconcepts where goods were just produced on the belief that they will be sold becauseconsumers need them.Management ObligationManagement should concentrate on achieving production efficiency, low cost and massdistribution.AssumptionConsumers like cheaper product. In that case, it is possible because huge productionallows cost minimization as well as price minimization up to a certain level. Consumers liketo get product at their hand, at convenient places. In that case organizations take massivedistribution effort.LimitationIt is very tough to satisfy customer by using this concept because product quality andfeature will not be good.AKTCL is strictly adopting this type of marketing concept. That is why the price of themost of the brands of AKTCL is low. The segmentation of the AKTCL is also middle andlower segment too. For the lower segmented customer it must keep in mind that the priceshould be low. That is why production concept must be followed by the AKTCL. THE PRODUCT CONCEPTThe Product Concept in marketing refers to the ideology that a product would be the mostsuccessful in the market if the main focus is put on the product quality and specificationsitself. It goes against the Marketing Concept that puts focus on consumer insight morethan on anything else. The Product Concept simply believes that the product would sellitself, and it is especially applicable to technological breakthroughs.Management ObligationManagement should concentrate on making superior products and improving them overtime.AssumptionIt assumes that buyers admire well-made products and can evaluate quality andperformance.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 51
  52. 52. LimitationWho will define and what would be the definition of quality are the main problems of thatconcept.If AKTCL wants to follow this type of marketing concept, then the price of the productprice will increase and the segment customer may switch that brand for the priceincreases. That is why the AKTCL is not following the product concept. THE SELLING CONCEPTMany organizations follow the selling concept, which holds that consumers will not buyenough of the organizations products unless it undertakes a large scale selling andpromotion effort. The concept is typically practiced with unsought goods, those thatbuyers do not normally think of buying such as encyclopedias or insurance. Theseindustries must excel at tracking down prospects and selling them on product benefits.Management ObligationManagement must be good at tracking down prospects and selling them on productbenefits.AssumptionThis concept assumes that consumers typically show buying inertia or resistance and mustbe coaxes into buying.LimitationMarketing based on hard selling carries high risks. It assumes that customers who arecoaxed into buying a product will like it and if they do not they will not badmouth it orcomplain to consumer organizations and well forget their disappointment and buy it again.AKTCL is adopting this type of selling concept strictly. MARKETING CONCEPTThe concept holds that achieving organizational goals depends on determining the needsand wants of target markets and creating, delivering and communicating the desiredsatisfactions or customer value to its chosen target markets more effectively andefficiently than competitors do.Management ObligationManagement is responsible for selecting target market, understanding customer needsand integrating marketing activities and making profit through customer satisfaction. Thekey risk is to attract customers and retain them.MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 52
  53. 53. AssumptionThis concept assumes that consumers will buy the product again if they are satisfied. Inthis case satisfied customers work as an advocate.LimitationUnderstanding customer needs and wants is not always simple. In the course ofconverting to a marketing orientation, a company faces three barriers (1) Organizedresistance (2) Slow learning (3) Fast forgetting.AKTCL is also following this type of marketing concept as well. TSO Md. Anwar Hossaintrying hard with the BP as well as SR to promote their brands through the marketingconcept. SOCIETAL MARKETING CONCEPTThe idea that the organization determine the needs, wants and interests of targetmarkets and deliver the desired satisfactions more effectively and efficiently thando competitors in a way that maintains or improves the customer’s and society’swell-being.Management ObligationManagers must concern to build social and ethical considerations into their marketingpractices. They must balance and juggle the often conflicting criteria of company profits,consumer want satisfaction and public interest.AssumptionIt assumes that this concept might be an opportunity to enhance their corporatereputation, raises brand awareness, increase customer loyalty, build sales and increasepress coverage. It is also assumed that customers will increasingly look for signs of goodcorporate citizenship that go beyond supplying rational and emotional benefits.LimitationSometimes it is costly but ultimately it strengthens consumer confidence and loyalty.AKTCL is not actually following this type of marketing concept, because Bangladeshgovernment has restricted smoking advertising in public since March 2005. CUSTOMER CONCEPTThe idea that consumers will favor product that are designed according to theirrequirement is called customer concept. A growing number of today’s companies are nowshaping separate offers; services and messages to individual customers. These companiesMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 53
  54. 54. collect information on each customer’s past transaction, demographics and psychographicsand media and distribution preferences.Management ObligationManagement’s task is collecting information on each customer’s preferences and they areresponsible for producing separate offers, services and messages to individual customersas per requirements.AssumptionThis concept assumes that consumers like to get product according to their own choice.LimitationIt is applied to overcome segmentation problem as each person has different identity. Butcustomization and customerization both are highly expensive.Since the commodity of AKTCL is cigarette, cigarette is being made without the concept ofcustomer. That is why this type of customer is not being followed by the AKTCL.MARKET SEGMENTThe division of a market into different homogeneous groups of consumers is known asmarket segmentation.Rather than offer the same marketing mix to vastly different customers, marketsegmentation makes it possible for firms to tailor the marketing mix for specific targetmarkets, thus better satisfying customer needs. Not all elements of the marketing mix arenecessarily changed from one segment to the next. For example, in some cases only thepromotional campaigns would differ.A market segment should be:  measurable  accessible by communication and distribution channels  different in its response to a marketing mix  durable (not changing too quickly)  substantial enough to be profitableA market can be segmented by various bases, and industrial markets are segmentedsomewhat differently from consumer markets, as described below.Consumer Market SegmentationA basis for segmentation is a factor that varies among groups within a market, but that isconsistent within groups. One can identify four primary bases on which to segment aconsumer market:MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 54
  55. 55. 1) Geographic segmentation is based on regional variables such as region, climate, population density, and population growth rate. 2) Demographic segmentation is based on variables such as age, gender, ethnicity, education, occupation, income, and family status. 3) Psychographic segmentation is based on variables such as values, attitudes, and lifestyle. 4) Behavioral segmentation is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought.AKTCL segmentation based on the occupation, income, age, family status, lifestyle andprice sensitivity are notable.The optimal bases on which to segment the market depend on the particular situation andare determined by marketing research, market trends, and managerial judgment.There are four key segments of products according to the price offerings in the market.These are: I. Premium Segment II. Medium SegmentIII. Low SegmentIV. Very Low SegmentAccording to the product price and quality offers, Abul Khair Tobacco Company Limitedsegmented their large market into medium segment, low segment and very low segment.THE MARKETING MIX(The 4 Ps of Marketing)Marketing decisions generally fall into the following four controllable categories: • Product • Price • Place (distribution) • PromotionThe Marketing MixMARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 55

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