pm report mid
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BATB:
British American Tobacco Bangladesh is one of the oldest and largest blue chip
multinational companies operating in Bangladesh. The British American Group holds
65.91% share in the company. The Government owns 26.57% through several of its
agencies, while 7.52% is owned by other stakeholders.
We are a leading business organization in the industrial sector employing more than
1,300 employees directly and a further 40,000 indirectly as farmers, distributors and
suppliers. We have business contracts directly with around 32,500 registered farmers who
produce high quality tobacco leaf.
MARKET OFFERINGS:
British American tobacco, Bangladesh offers only product and the product is cigarettes.
BAT’S brands
Much of the growth of BAT leading brands is driven by innovation
They recognize that there business starts with BAT consumers and there brands. It’s not
about encouraging people to start smoking or to smoke more, but about meeting the
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preferences of adults who have chosen to consume tobacco, and differentiating our
brands from their competitors.
They have never believed that ‘one size fits all’. BAT’S portfolio of more than 300
brands is based on distinct ‘must-win’ consumer segments - international, premium,
lights and adult smokers aged under 30 (ASU30).
There four Global Drive Brands - Dunhill, Kent, Lucky Strike and Pall Mall - cover the
premium and value for money price segments and account for 26 per cent of there overall
global volumes. They grew by 16 per cent in 2008, or 25 billion cigarettes.
While developing there Global Drive Brands is central to BAT’S strategy, they also
increasing the profile of Vogue in the super premium segment and Viceroy, a leading low
price international brand.
Much of the growth of there leading brands is driven by innovation - from filters to
flavors and packaging to cigarette formats.
British American Tobacco Bangladesh’s Leaf department is responsible for
procuring the company’s tobacco. Essentially, it’s our job to secure the supply of
quality tobaccos to maintain blend consistency and taste for the consumer. Our
skills contribute massively to the ongoing success and reputation of our brands as
well as to the Group’s drive for market leadership.
Achieving this requires more than simply buying an off-the-shelf product. We manage
the tobacco supply chain from the seed to the smoke.
We contribute considerably to the company’s bottom line. For example:
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• Our growing programmes supply low in-stock cost tobaccos to our domestic
operations
• Our export operations earn valuable foreign exchange
• Our International Leaf Purchasing Team ensures that tobaccos procured from
third parties are purchased at competitive prices
List of business portfolio:
British American Tobacco Bangladesh offers more than 12 brands in our country. Name
of the most used brands are:
1. B&H
2. PallMall
3. john Player Golf Leaf
4. Star
5. scissors
6. Pilot
7. Capstan
I am going to evaluate the Product Market expansion grid .
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PRODUCT/ MARKET EXPANSION GRID:
A portfolio-planning tool for identifying company growth opportunities through market
penetration, market development, product development and diversification is called
product/ market expansion grid. We identified British American Tobacco Bangladesh’s
portfolio-planning tool through product/market expansion grid.
MARKET PENETRATION: a strategy for company growth by increasing sales of
current product to current market segments without changing product. That means
existing product in existing market. Gold leaf, Star, Capstan, Scissors are following
market penetration.
MARKET DEVELOPMENT: a strategy for company growth by identifying and
developing new market segments for current company products. That means new market
for existing product. B&H is following market development.
PRODUCT DEVELOPMENT: a strategy for company growth by offering new products
to current market segment. PallMall and Pilot are following product development.
Pallmall is offering new brands and pilot is a new product in Bangladesh’s market.
EXISTING PRODUCT
↓
NEW PRODUCT
↓
EXITING
MARKET→
Market penetration
(GoldLeaf, Star, Scissors,
Capstan)
Product development
(PallMall, Pilot)
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NEW
MARKET→ Market development
(B&H)
diversification
PRODUCT/MARKET EXPANTION GRID
MARKET SEGMENTATION:
Dividing a market into distinct groups of buyers who have distinct needs, characteristics,
or behavior and who might require separate product or marketing mixes. BATB segment
there in three categories. B&H and John Player Goldleaf for business class, PallMall and
Capstan are for middle class and Star, Scissors and Pilot are for lower class.
TARGET MARKET:
Target market is the process of evaluating each market segment’s attractiveness and
selecting one or more to enter.
British American Tobacco Bangladesh’s target market is only Smokers who are more
than eighteen (18) year old and above.
MARKET POSITIONING:
Market positioning is the arranging for a product to occupy a clear, distinctive and
desirable place relative to competing products in the mind of target consumers. British
American tobacco, usually determine there distributional channel based on
geographically economically and also based on sales forecast. In the rural area the
consumer needs low priced cigarettes so BATB offers Star, Pilot and scissors for the
villagers, especially Pilot is made for the farmers and other low classed consumers.
B&H and Goldleaf are available everywhere in urban or metropolitan areas. PallMall
positioned for the consumer who are aged between (18 to 25). But for STAR there
distribution is not only geographically they keep the lower income people in mind. Star is
available in all over Bangladesh.