Pm Report Mid

8/8/2019 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



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:



• 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 .



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)



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.

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