Marketing Strategy of Abul Khair Tobacco Company

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 Bangladesh

MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 1

This is to certify that Anowar Hossain, ID NO. -BBA-02707143, student of Stamford
University Bangladesh of BBA Program has completed the Internship report titled
“MARKETING STRATEGY IN THE CONTEXT OF ABUL KHAIR TOBACCO COMPANY
LTD.”

I wish him every success in life.

________________________

Mohammad Nazmul Huq

Assistant professor




LETTER OF TRANSMISSION

28th January, 2010

Md. Nazmul Huq
Assistant Professor

Sub: Submission of BBA Internship Report.

Sir

With due respect and honor, I have much pleasure to present the report of the internship
program on “A STUDY ON MARKETING STRATEGY IN THE CONTEXT OF ABUL KHAIR
TOBACCO COMPANY LTD”. The report deals with working environment of a field level
distributor and selling strategy. I am submitting this report as a part of my internship
program in Abul Khiar Tobacco Company Ltd. This report is going to provide valuable
assistance to me in finding out the working environment, which have influence on the
service quality.

The Officers of AKTCL were very cordial and extended their hands within the limit of their
authority. As the time was limited, the report could not be done more comprehensive and
analytical. Therefore, I need your kind attention to assess my report considering the
limitations of the study. Your kind suggestion will encourage me to perform better
research work in future.

Sincerely yours,

………………………………….

Md. ANOWAR HOSSAIN
ID. NO: B.B.A. 027 07 143
E-mail: anw1219@gmail.com


Acknowledgement
At the very first moment, I am expressing my gratitude to Almighty Allah for giving me the
patience and competence to complete the Internship program by writing a report.

In the preparation of this internship report, I acknowledge the encouragement and
assistance given by a number of people from Abul Khair Tobacco Bangladesh Ltd. I am
grateful to Mr. Mohsin (Distributor of Abul Khair Tobacco Khilgaon Branch), for his
valuable 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 of
the Department of Business Administration, Stamford University Bangladesh (Siddeswari
Campus), who guided and assisted me a lot to reach in the present stage of academic
position, unless this, it was not possible for me. I would like to express my gratitude to my
honorable teacher & my Internship Instructor Md. Nazmul Huq, assistant professor as well
as assistant superintendent of examination, Department of Business Administration,
Marketing Siddeswari Campus, who helped me in every step of my internship & report
writing by giving proper guidance, advice & inspiration, for his untold efforts and
cooperation in completion of entire internship program successfully. No noble objective
can be achieved by a single individual. I am indebted to a number of persons for their kind
advice, suggestions, directions & cooperation which has enable me to have an experience
in the dynamic environment of the AKTCL & ultimately to prepare this report. The very
first person of the Abul Khair Tobacco Company Limited to whom I like to convey my
gratitude is the Mr. Mohsin (Distributor of AKTCL) as he gave me the opportunity to do my
internship.

I would like to express my gratitude to my supervisor Md. Nazmul Huq, for sharing his
ideas and interests with me about my study. His contribution boosted my confidence and
helped me finish my study on time. Lastly, I want to show my gratefulness to all the staffs
that spared their precious time in answering my query.

I would also like to thanks Sales Representative Md. Helal and manager Mr. Bappi as well
as 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 Sales
Officer, for his great response and help. Though he was very busy at his job, he tried to
teach 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 their
great effort furnishing the required information, which was needed for successful
completion of this report.


Declaration

I hereby declared that this report entitled “A STUDY ON MARKETING STRATEGY IN
THE CONTEXT OF ABUL KHAIR TOBACCO COMPANY LTD.” submitted by me to
Stamford University Bangladesh for the partial fulfillment of B.B.A (Bachelor of Science in
Business Administration) degree is of my own and has not submitted to any other
university or institute for the award of any degree as well as this paper may not use any
actual market scenario.

Place: Dhaka

Date: January 28, 2010

……………………………………..……..

Muhammad Anowar Hossain
BBA Id # BBA 02707143
BBA, Batch 27th
STAMFORD UNIVERSITY BANGLADESH


EXECUTIVE SUMMARY
The report is prepared on the basis of 3 months practical experience at Abul Khair
Tobacco Company Limited. The internship program helped me a lot to learn about the
practical situation of a distributor. This program helped me to implement my theoretical
knowledge into practical and realistic work environment.

This study intends to experience the relationships of in context of on marketing strategy
and Organizational Support, Supervisory Support, Work Climate, and Employee Service
Quality, problem solving environment in the context of Abul Khair Tobacco Company Ltd.
Perceived organization support (POS) – the extent to which employees believe that their
employer is concerned about and aware of their well being and contribution – can help
employees’ self-esteem and, therefore performance. POS is more likely to increase the
employees’ expectancies that greater efforts toward meeting organizational goals will be
rewarded, and consequently these expectancies may increase their efforts in service
works to meet the organizational goals. Support from supervisors is also an importance to
employee performance but the employees may take it for granted, considering it to be
part of the supervisor’s job, and it might, therefore, not have the degree of positive
influence on service effort that might have been expected. The aim of my struggle is to
know about the market and its difficulties. I want to know about the activities of Abul
Khair Tobacco Company Ltd. How a cigarette company works.

AKTCL target market is to capture whole country middle and low as well as very low
segment market. AKTCL offers quality services to its customers. AKTCL tried to formulate
its strategies in such a way that the extraction of customer and outstanding tobacco can
find a suitable platform. Nevertheless, it is important that, to produce greater job
satisfaction, service management should render on-the-spot supervisory support to
employees, design and implement supportive supervisory practices and reward positive
results. Work climate also have significant impact on employee service quality. It’s found
in the study that employee perceptions of work climate have important effects on their
work 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 learn
maximum knowledge about market. With the help of these people I practically learn
different strategies that AKTCL adopts in the marketing. During this internship I learn
theoretical knowledge in a practical form. I did my work in field and offices both places
are very informative.

So According to my opinion AKTCL is very productive as well as effective selling oriented
company.


INTRODUCTION
TO
THE STUDY


INTRODUCTION

Tobacco 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 multinational
manufacturers operating here. This industry is also a key source of tax revenue for the
Government of Bangladesh due to high tax structure of the industry. Tobacco products are
charged with as high as 70% tax of the total sales. This provided the Government to
impose strong control on profitability and expansion of the tobacco manufacturers. Total
Cigarette industry is however only 30% of the total tobacco industry with majority driven
by non-filter tobacco products likes Biri, Gul, and Jorda etc. This 70% market is mainly
driven by DTI and AKTCL with their Biri products with many local operators operating in
local hubs. The overall cigarette industry is now stable with a 3% growth yearly which is
not always consistent. The industry comprises of products varied with different taste
offers and also price. Three major competitors compete in the market with small presence
of two other manufacturers and some local suppliers. British American Tobacco
Bangladesh (BATB) leads the market followed by Dhaka Tobacco Industries (DTI) and
distant 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 Bidi

The market is almost saturated with growth and decline of segments among themselves
keeping the standards vibrancy in the industry. Cigarette though as a commodity, has
strong 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 Companies
operating. The product has a general appeal and still considered to be source of business
for 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 lose
interest because of consistency in demand and supply.

Cigarette being a product common to both mass and upper class has impact of the
ongoing economy and consumption power of the buyers. Being a regular consumed
product, 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 the


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 1964

The surprising thing about the history of tobacco in Western Society is not so much how
pervasive its presence has been, but how controversial its use has been. By 1607 the
Virginia company had landed in Jamestown with the goal of producing tobacco profits for
the English crown. Throughout the 18th century tobacco use was encouraged. But even
as a pervasive consumer good, it still retained a "faintly immoral" reputation. Thomas
Jefferson was a proponent of its use and saw profits for government in its taxation and
distribution. This position is reminiscent of what is happening today with tobacco taxes
being used as the source of regulatory capital. With the advent of the cigarette in the 19th
century, tobacco became even more widely used. The mechanization of cigarette
production, 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 and
1890. In effect, "Buck" Duke, whose statue with a cigar in hand presides proudly over the
Duke campus to this day, was among the first real "leaders" of the tobacco movement. As
the Henry Ford of tobacco production, he made the product vastly more available and
affordable. In the 1920s cigarette usage spread as women turned to cigarettes for the first
time (emboldened perhaps by the passage of the 16th Amendment extending them the
right to vote). Schudson reports that cigarette consumption per capita "was remarkably
steady from 1913 to 1945, rising when the real income per capita rose, falling when real
income fell." During this period the sales of big tobacco companies grew. During War II
cigarette use was reinforced among the military, which once again became the largest
distributor of "free" cigarettes.

STATEMENT OF THE PROBLEM

Most of the people of Bangladesh are illiterate. Those who are educated they do not have
much more practical and analytical knowledge to make better prospect of their life. In this
case people need to get involved to do the productive work and getting job in the native
company to improve our local productivity.

As a local company Abul Khair Group doing potential deed in our country where more than
thousand employee working whole around the Bangladesh.

ORIGIN OF THE STUDY

This is the last part of BBA program. As a professional degree it is essential to fulfill all the
requirements the program demand. Only after preparing & submitting the report this
program becomes completed. Ascertainment of the Dean, Department of Business
Administration, Stamford University Bangladesh, I compare this report from my practical


experience. I earned at the time of my internship (10th November 2009 to 17th January
2010) 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 service
sector 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 strategy

NEED AND PURPOSE OF THE STUDY

The purpose of the study to contemplate the knowledge and experience accumulated from
the internship program according the set guidelines. This study comprises of an
organization part and a project part. The purpose of the first part is to study and analyze
the organization with special emphasis on its background. On the other hand the project
part enables the intern to study a problem and to arise at a feasible and implemental
solution with the help of different analytical tools.


METHODOLOGY
OF
THE STUDY


SCOPE OF THE STUDY

The distributor is covering the area if we consider Khilgaon as a center, Rampura in North
West 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 West
poll side.

LIMITATION OF THE STUDY

The present study was not out of limitations. I faced some limitations at the time of
preparing this report. But as an intern it was a great opportunity for me to know the sales
activities. 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 doesn't
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 external
sources 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 some
individual institutions.

(II) Secondary Data: The data, which are collected for some earlier research work and are
applicable or useable in the study. I have presently undertaken that the secondary data
can be divided into two types. Such as –

(1) Internal Secondary Data

(2) External Secondary Data

Secondary data are obtained by visiting competition offices and is the report of the
company. Both primary and secondary sources of data were explored for the study.


 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 materials

BACKGROUND OF THE STUDY

(a) Organizational Background of the study:

Having an understanding of customers is not enough; today’s companies are starting to
play as much attention to tracking their competitors as to understanding their target
customers. A company should constantly compare its services, price channels and
promotion with those of its close competitions. Like other number and profitable tobacco
firm AKTCL also consider competition carefully. Quality is highly considered in case of
foreign marketing but in case of home marketing it is in different presently. Need to
conduct regular attractive and informative promotional activities.

(b)Theoretical Background of the study:

AKTCL one of the most promising local segmented corporate in Bangladesh. The already
launched brands of the AKTCL have been gaining popularity among all lower segmented
smokers. It gained popularity particularly among low segmented people and old aged
people.


ORGANIZATION
PROFILE


COMPANY PROFILE

Abul Khair Group is one of the largest and rapid growing companies in Bangladesh. It is a
family oriented business. It was established in 1953 by late Abul Khair. The company
started with Abul Bidi, still a familiar brand for those who smoke bidis. Later on, the
company expanded its business to other sectors. It is now one of the most successful
companies in terms of professionalism and management excellence. The main business
objectives are to prove guaranteed quality, fair and competitive price and optimum
services 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 in
steel 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 working
for this renowned company directly.

Among the several units of Abul Khair Group, milk and beverage is one of the most vital
divisions 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 these
products ensure supreme quality, availability and customer satisfaction. All the products
are produced under better hygienic conditions by using sophisticated technology. Total
Quality Management (TQM) is practiced in this division (milk and beverage) and that's why
the company was awarded with the certificate of ISO and HACCP. Premium quality raw
materials are used to produce all the products. These products are distributed under a
strong distribution system. For this reason, the company has a large number of satisfied
and 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-term
and substantial growth. Embracing change at every level to achieve highest level of
professionalism remains as the key focus for all.”


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 Limited

THE 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 · Rally


STUDY
OF
THE REPORT


ABUL KHAIR TOBACCO COMPANY LTD.
Abul Khair Tobacco is the most trusted name in the tobacco industry of Bangladesh. This
has been in the industry since 1952 and has been exporting the best quality tobacco in
many countries of the world. Chittagong is an area located in southern Bangladesh where
a distinct type of flue cured tobacco is grown. The tobacco produced in this zone is
accepted as a semi flavor to flavor style. The color is light orange to deep orange and
quality is riper with medium to high nicotine and medium sugars. The higher stalk position
produces a ripe, orange to deep orange, full flavor style. This style of tobacco has good
smoking characteristics to improve smoke perception.

LEAF PRODUCTION

In Bangladesh Flue Cured Tobacco started to grow from 1968 on experimental basis in
Kushtia district. After 6 years of extensive fieldwork and grower’s participation,
Bangladesh became self sufficiency of
tobacco in terms of volume.
Subsequently, the extension and
growing extended to elevated hily light
soils of Chittagong, the southern part of
Bangladesh, 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 and
soft nature, low to low medium nicotine and medium sugars. The tobacco of Kushtia
region is generally considered as good quality neutral filler.

An American variety K326 is grown in Meherpur, Jhenaidah and part of Kushtia in North
West part of the Bangladesh. This tobacco has medium to high nicotine, orange to
mahogony color and has medium sugars. In terms of quality, this tobacco is considered as
ripe, neutral filler to semiflavour tobacco. It has distinct taste and flavor, physical
appearance 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 cured
tobacco is grown. The tobacco produced in this zone is accepted as a semi flavor to flavor
style. The color is light orange to deep orange and quality is riper with medium to high
nicotine and medium sugars. The higher stalk position produces a ripe, orange to deep
orange, full flavor style. This style of tobacco has good smoking characteristics to improve
smoke perception.


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 72

Out of the above production about 80% to be used for local consumption and 20% will
remain for export.

BURLEY

Bangladesh produces burley in
Rangpur, the northern part and
Manikgong, the center part of
Bangladesh. The tobacco has
natural 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 4.50

About 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. The
manufacturers are not involved in growing this type of tobacco.
Farmers of Rangpur and Dinajpur are traditionally growing this
tobacco. Among the Dark Virginia there are varieties of category
among them JATI, MOTIHARI, TALIM are notable among them.


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 chewing
tobacco.

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 BRANDS

Abul Khair is renowned for producing the finest quality of tobacco in Asia. Abul Khair has a
vast range of product to meet the needs of our existing and potential buyers all around
the world. Abul Khair’s products are widely exported in many countries of the eastern and
western 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 the
commodities that are distributed by the M/S. HASHEM TRADING Khilgaon distributor are
as follows;


 MARISE

 MARISE WHITE

 SUPER KING WHITE

 SUN MOON FILTER KING

 RALLY

 SPECIAL ABUL BIDI

 SALMON MATCH

 FLAME BOX MATCH

 MARISE
Brand Name: Marine Special Brand.

Segment: Medium.

Pack Design: Golden, Soft and Dreamy.

Brand Identity: Red strip on upper side of golden packaging, golden foil, Ambushed
brand 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 and
higher 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 higher
pressure 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 them
to some foreign countries.


 SUN MOON
Brand 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. Smooth
taste 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 to
some foreign countries.

 SPECIAL ABUL BIDI
Brand 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 to
some foreign countries.


BUSINESS PHILOSOPHY
Abul Khair Group diversified their business in tobacco industry because in Bangladesh we
have 14 crore people. It is large market size to serve and cigarette demand is increasing
continuously for the population. Abul Khair Tobacco wants to serve medium and low
segmented cigarette for their target market.

In tobacco industry, there are many local & foreign companies. Abul Khair wants to be
local unique tobacco producer with the same quality of foreign company. For this purpose
AKTCL 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 this
distributor are not very wide and dynamic. Main functions performed by this department
are:

 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 amount

Beside 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 real
marketing.


DISCUSSION
ON
THE REPORT


 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 DEFINITION
Selling is trying to make sales by persuading someone to buy one's product or service.
From a management viewpoint it is thought of as a part of marketing, although the skills
required are different. Sales often form a separate grouping in a corporate structure,
employing separate specialist operatives known as Sales Representatives (singular: Sales
Representative). Selling is considered by many to be a sort of persuading "art". Contrary
to popular belief, the methodological approach of selling refers to a systematic process of
repetitive and measurable milestones, by which a Sales Representative relates his or her
offering of a product or service in return enabling the buyer to achieve their goal in an
economic way.

This report will be dealing with the selling and distribution policy and strategies of Abul
Khair Tobacco Company Limited’s distributor. The main study is to compare and
distinguish the distributor’s selling activities with the selling approach theory.

 SELLING THROUGH SALES PERSON
Firms exist only when their products and services are sold. The various options that firms
have to sell their products are called go-to-market strategies. Strategies include selling
through the Internet, field sales representatives, business partners, value added resellers,
manufacturer agents, franchises, telemarketers, and others. Selling firms determine
which strategy to use based on such factors as the estimated value of the customer over
the lifetime of the relationship, often called lifetime customer value. Sometimes firms use
several of these strategies at the same time. Using various strategies at the same time is
called a multichannel strategy. Even with changes in technology, salespeople are still one
of the most important elements in many go-to-market strategies. Organizations whose go-
to-market strategies rely heavily on salespeople are called sales-force intensive
organizations. AKTCL is heavily trying to promote their commodities through the
salespeople. The activities of salespeople depend on the type of selling job they choose.
Salespeople often have multiple roles, including client relationship manager, account team
manager, vendor and channel manager, and information provider for their firms. AKTCL’s
salespeople also play these types of role in the selling market.


 Selling Strategies

A 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 CALLING
Cold calling is the process of approaching prospective customers or clients, typically via
telephone, who was not expecting such an interaction. The word "cold" is used because
the person receiving the call is not expecting a call or has not specifically asked to be
contacted by a sales person. From the above study we have already come to know that
the selling process of the TSO Md. Anwar Hossain’s troop is not actually matching with the
definition of cold calling selling strategies. So it can be easily say that the distributor
agency of Mohsin is not actually performing the cold calling selling strategy.

 CONSULTATIVE SELLING
Consultative Selling is a selling technique that emphasizes the dialogue between the
salesperson and the customer. Before talking product and/or service, the salesperson
strives to learn about the customer's needs, and may even help the customer identify and
phrase these needs. Then, instead of delivering a standard sales pitch about a product or
service, the salesperson can sell a tailored solution that meets the customer's needs, using
the customer's 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.


o Their calls are more interactive.

The customer's needs are identified by the Consultative Salesperson through a
combination of preparation and interactive probing. Above definition cleared that in terms
of consultative selling strategy, products or commodity are well decorated after a need be
identified. It is known to us that the commodities of AKTCL are ready or produced before
the need of customer is identified. So, we can straightly as well as clearly say that the
Mohsin’s distributor is not actually performing or adopting the consultative selling strategy
too.

 DIRECT SELLING
Direct selling is a retail channel for the distribution of goods and services. At a basic level
it may be defined as marketing and selling products, direct to consumers away from a
fixed retail location. Sales are typically made through party plan, one to one
demonstrations, and other personal contact arrangements. A text book definition is: "The
direct personal presentation, demonstration, and sale of products and services to
consumers, usually in their homes or at their jobs."

According to the WFDSA, consumers benefit from direct selling because of the
convenience and service it provides, including personal demonstration and explanation of
products, home delivery, and generous satisfaction guarantees. Direct selling is distinct
from direct marketing because it is about individual sales agents reaching and dealing
directly with clients. Direct marketing is about business organizations seeking a
relationship with their customers without going through an agent/consultant or retail
outlet.

By far the majority of direct selling companies use a multi-level compensation plan, where
the agent is paid not only for their own sales but also a percentage of the sales of other
representatives they introduce into the organization and help train.

We know that the basic commodities of AKTCL are cigarettes. Sometimes, TSO Md. Anwar
Hossain adopt direct selling strategy to promote brands. During my internship, I have
experienced this type of strategy adopted by the TSO Md. Anwar Hossain to promote
Marise brand. TSO trained all the SR and BP about the technique that he actually wants to
adopt. Then he divided all of them into team basis in different region to promote their
brand with a team leader. They were trained to give free sample if necessary to those
customers who are the smoker of competitive brand.

 GUARANTED HOME SALE
The guaranteed home sale is a program offered by some realtors in North America. The
program guarantees that a home will be sold for a certain amount of money and by a
certain date, or the realtor (or in some cases the brokerage or an investor) will purchase
the house. This type of selling strategy is not using by the Mohsin’s distributor.


 PRICE-BASED SELLING
Price-based selling is a specific selling technique in which a business, exclusively reduced
their price in attempt to close the sales cycle. Price-based selling clearly exists in
businesses such as: commodity sales, auto sales, hospitality, and even some retail stores.
However, it is only recommended that commodity items like petroleum be sold exclusively
by price. Price based selling does nothing more than erode your price, reduce profit levels
and creates an impression in your customers mind that all of your products and services
are priced at a level to take advantage of them. The drawback to Price-based selling is
that it results in the good or service that is sold becoming a commodity and a commodity
by definition is a product or service that has no differentiating qualities or characteristics
from competing products or services in its class. A 2007 Shop zilla survey asked 2000
shoppers what the most important factor was in their buying decision, and 49% said price
is the most important.

Most businesses sell their items, whether they are expensive automobiles, or inexpensive
services based upon price. They do this not because it is the most profitable, but because
they 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 are
always hunting for the best bargain and price has a direct impact on whether or not they
will buy a product or service. Businesses know that offering the lowest price gives them a
competitive 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 bargain
buys. Pricing is directly related to the revenue management department of a business, and
any good revenue manager will make sure they are doing everything possible to maximize
profits.

The price of cigarettes is one of the most important factors affecting tobacco consumption
as high cigarette prices can prevent people from taking up smoking and encourage those
who smoke to quit. The World Bank (1999) calculated that a 10% increase in the price of
cigarettes can reduce demand by around 4% in high income countries. Due to this high
cost 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 lower
income based customer are the market of AKTCL.

Various Methods

Price-matching guarantees

Price-matching guarantees are commonly used in consumer and industrial markets. Best
Buy has always been known for their price-matching guarantee as well. While a store with
price matching guarantees has no fear of losing customers to rivals’ price cuts, it has


every incentive to raise its own price to charge a higher price to its loyal customers. It is
an anti-competitive tactic that warns competitors not to attempt to steal market share by
undercutting prices. AKTCL is not actually allowed this type of selling strategy. That does
not mean the price is different from the competitors, price is same as far as the lower
segment is consideration.

Price slashing

Price cutting is a sales technique that reduces the retail prices to a level low enough to
eliminate competition. Businesses will implement this as a way to under-cut the
competition and offer the best price to the consumer. Basically, no company implement
this type of method in terms of cigarette industry.

Discounting

Discounting is something seen in almost every retail store, and grocery store. Discounting
is present in just about every business in some way, whether it be coupons, advanced
purchases, or bulk buying, businesses are quick to offer a pricing discount. AKTCL has a
system of free pack program. If any retailer gives 7 inside cover of any brand he or she
will be given a single pack brand totally free. Coupons and promotions give an economic
incentive for the customer to use when purchasing a brand. The effect on consumer
redemption of coupons has mostly been positive as it attracts customers, and gives them
interest in a particular brand. Discount brands are becoming more popular among lower
Socio-economic Groups. As the price of cigarettes continues to increase smokers are
becoming more likely to trade down to discount brands which are becoming more and
more 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 the
emotional needs and the practical needs of many smokers.

Haggling

Haggling, otherwise known as bargaining, is most present in businesses where items have
no fixed price. Sellers will often price the item higher than they want to sell it, knowing
that 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 the
segment or taste.


 TARGET ACCOUNT SELLING

AKTCL distributor follows the TAS strategy. This selling target varies from 1020 to 1030
unite 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 given
reminder by the TSO about the monthly selling target improvements. If any one fails to
complete his or her daily target unit, the next day he will be reminded about the monthly
target and the previous uncompleted target amount to fulfill that day, so that the SR can
complete his monthly selling target properly. Introduced in an intensive, highly interactive
program, 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 language

TAS emphasizes real-world application by testing the program concepts against live sales
opportunities. Throughout the program, sales professionals create a refined, winning plan
for securing new business. TAS is highly effective in organizations with selling
environments marked by:

o Intense competition


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 failure

Target Account Selling Includes Learning To:

⇒ Assess the Opportunity

TAS is an objective process that reveals critical customer, business and competitive
information, and drives an informed decision to compete. AKTCL adopted this type of
selling strategy to assess the opportunity for the sales persons.

⇒ Set the Competitive Strategy

TAS creates or shows a framework for determining the most effective approach to winning
the customer’s business. Through this type of selling strategy salesperson of AKTCL can
do competitive selling effort every period of their job schedule.

⇒ Identify the Key Players

TAS is a method to identify the roles and status of people who affect or will be affected by
customer buying decisions. Through TAS strategy a salesperson of AKTCL can be able to
know the monthly mission to do. So that, he can moves himself according to the monthly
target schedule.

⇒ Define the Relationship Strategy

TAS is a process to align with influential decision-makers in the buying organization who
can help you win the sales opportunity. As target has been prescribed monthly and
revised everyday, they keep good relationship with the key buyer of their commodity.

⇒ Turn Ideas into Activities

TAS is an approach to identify specific tactics needed to win the opportunity and the
resources required to support each task. According to the target, every salesperson of
AKTCL tries to push sale through their interpersonal skill with emotional motivation.

⇒ Test and Improve the Plan

It is a structured process that analyzes Opportunity Plans and refines them to the highest
possible quality for implementation in the field. To foster teamwork and maximize the
return on training investment, sales teams should attend the TAS program with their


managers. Team members can then immediately apply the Target Account Selling tools
and language for more effective collaboration in the field.

 DESCRIBING SALES JOBS

Descriptions 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 Continuing
Some sales jobs emphasize finding and selling to new customers. Selling to prospects
requires different skills than selling to existing customers. To convince prospects to
purchase 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 initial
contacts. On the other hand, salespeople responsible for existing customers place more
emphasis on building relationships and servicing customers.

 Salesperson’s Role: Taking Orders or Creating New Solutions
Some sales jobs focus primarily on taking orders. This type of selling jobs is already in
AKTCL. SR goes to the route level and takes order from the shopkeepers. Sometimes to
complete their daily target unit, they push shopkeepers to buy their brands, of course
persuasive and emotional way rather than forceful way.

 Importance of the Purchase to the Customer
Consumers and businesses make many purchase decisions each year. Some decisions are
important to them, such as purchasing a building or a business telephone system. Others
are less crucial, such as buying candy or cleaning supplies. Sales jobs involving important
decisions for customers differ greatly from sales jobs involving minor decisions. Consider
the company that needs a computer controlled drill press. Buying the drill press is a big
decision. The drill press sales representative needs to be knowledgeable about the
customer’s needs and the features of drill presses. The salesperson will have to interact
with a number of people involved in the purchase decision. But the AKTCL cigarettes is not
so heavily expensive not so important or convenient goods, that’s why purchasing decision


is not important in this case. As results, all the BP and SR have to be very sincere about
their 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 with
customers by persuasive and push sale method. Field selling typically is more demanding
than 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 more
involved in problem solving with customers, whereas inside salespeople often respond to
customer-initiated requests.

 The Nature of the Offering Sold by the Salesperson: Products or Services
The 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 can
objectively measure a chemical’s purity and a truck’s payload. The benefits of services,
such as business insurance or investment opportunities, are more intangible: Customers
cannot easily see how the insurance company handles claims or objectively measure the
riskiness of an investment. Intangible benefits are harder to sell than tangible benefits
because it is difficult to demonstrate intangible benefits to customers. It is much easier to
show a customer the payload of a truck than the benefits of carrying insurance. As
cigarette commodity AKTCL giving one pack free for those retailer who buy one carton
cigarette that means if any retailer buys 200 cigarette (One Carton) 10 cigarette or one
packet free for those retailer.


EMPLOYEES or HIERARCHY

In AKTCL marketing and sales department have a number of employees working under
R.S.O. (Regional Sales Officer). R.S.O. sits on the 1 st floor of the chamber. Numbers of
employees are working in different positions in the ground floor of AKTCL chamber. Here I
found:

(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 branch
distributor. Among the other staffs Territory Sales Officer (T. S. O.) is one in number and
he control a large area’s sales volume. T.S.O. is the in charge of a single office. He will
responsible for the one particular area’s sales target. He controls all the other staffs of the


offices. Among the Zone In charge (Z. I.) they are 6 in numbers but during my intern
period I have found four Z. I. and I have also exposed their name too. Less than six Zone
In charge there are twenty Sales Representative (S. R.) as well as Van Puller (V. P.) with
each 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 personal
supervision of T. S. O. These employees have divided by zone basis and each zone has
an in charge. All the forces and staffs are recruited and maintained by the territory sales
officer Md. Anwar Hossain. Territory Sales Officer (T. S. O.) recruited by the head office
recruiting procedures. Sales team working all over the zone. Six zones in charge manage
these 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. Not
only that about the entire job under the marketing and selling department are directed
and maintained by the T. S. O. Md. Anwar Hossain.

 ATTACHMENT OR JOB DESCRIPTION
I have done my internship on AKTCL and through my internee; I have learned the field
selling executive job as well as employee control strategy as well. I have gone through a
lot of practical job experience; which I have tried to mention them in my report as
possible as my best effort;

 REGIONAL SALES OFFICER ATTACHEMENT
Role of Regional Sales Manager (R. S. O.)

Regional Sales Officer is the team leader of his region. He motivates and impels his team
members to achieve the targets. Basically he implements the distribution plan in his region
with the help of his team. The regional manager reports to the head of Trade Marketing
and Distribution. A Regional Sales Officer (R. S. O) controls three or four area’s
distribution process and holds the power of sales territory management. R. S. O. helps out
in the implementation and development of TM&D national plans and strategies for his
area. He is the team leader for his area team. He utilizes the company human resources in
an effective manner. In addition he also utilized the distributor resources in a manner by
which he gains the maximum output.


 TERRITORY SALES OFFICER (T. S. O.) ATTACHEMENT
Role 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 which
he makes & executes trade marketing & distribution plan to meet out. T. S. O. Assists the
R. 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 D
targets and merchandizing is one of the core responsibilities of T. S. O. He also manages
the given human resource of own and distributor. Even sometimes or it can be said that
most of the cases he recruits his own Sales Representatives as well as brand promoter
and others also. His main agenda behind the recruiting personnel is to fulfill the trading
target 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 to
keep in touch with the market information of our own brand and competitors. He go to
this outlet and create a good relationship with shopkeeper and with the help of good
relationship he can increase the sale of AKTCL brands. Government bans advertisement of
tobacco, so T. S. O. focuses on these retailers because they are the advertisers of AKTCL
brands.


 AREAS OF T. S. O.

The area of Md. Anwar Hossain, T. S. O. of Khilgaon distributor agency is vastly well
organized. He perform the major part of hi job in building a good image of his brands
toward 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 Only


 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 REPRESENTATIVES
PROMOTION CO_ORDINATOR

Merchandising Representatives (M. R.) is attached with Regional manager and give report
to him about any activity that he performs. In my office there are two Merchandising
Representatives (M. R.) and they are Md. Mitul Hassan and Md. Zakir Hossain. Company
gives promotional material in regional office. M. R. coordinators control this and after that
they 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.


3 He must fulfill the distributor claim.

4 Maintain supplier settlements.

⇒ BUDGET OF BELOW THE LINE
It is responsibility of M. R. to take care of budget allocation to the region with the
approved of Regional Sales Officer. He gives budget according to brand wise and he
should maintain brand expenses. His responsibility is to develop and execute promotion
plan through T. S. O. Internally the sales promotion coordination with R. S. O. cycle
planning and brand manager for promotion design and executions etc. Externally he deals
with suppliers contractors trade channels organizers and consumers. He also deals with
local administration for public relation and permissions to ensure smooth execution of
promotion, sponsorship activities and promotion van operation etc.

⇒ PURCHASE ORDER
It is conduct after the approval of indent from Regional Sales Officer. It is permeation
from Regional Sales Officer and it conform the availability and allocation of funds for
certain activity that relates to promotion.

⇒ GOOD RECEIPT NOTE
It is essential before the processing of bills and claims. After receiving GRN merchandising
and promotional coordinator perform next activity.

 ATTACHMENT WITH BRAND PROMOTER
A Brand Promoter (B. P.) works under the personal supervision of T. S. O. T. S. O. Gives
them overall instruction. At the end of day a B.P. give report to T. S. O. So we can say
TSO supervises all BP, SR, ZI VP as well as MR. The basic responsibility of BP is to
communicate with customer and promote their brands. TSO divided all of the BP into ten
area with two or three members a group where necessary to do their promotional
activities. TSO confirmed me that because of the government prohibition of advertisement
in 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 perform
extreme serious man in the office. His presentation is excellent. He is very careful about
consumer. His speaking power is very attractive. He acts upon all objectives of BP in real
sense.

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. Anwar
Hossain (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 and


Marise brands. He convinced the consumer with the help of incentives like, cap, digital
clock, 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 according
to Plano gram. He put Marise brand stock then Marise White, Super King special filter is
second and at last Rally and Special Abul Bidi. He was also decorating the out let with
merchandising 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 REPRESENTATIVE
Sales Representatives are the key persons of the AKTCL company .We can say that Sales
Representatives are the earning hand and air of AKTCL, so he is the only person who
faces all customers directly. So they can play a vital role in any company. AKTCL takes
care of their Sales Representatives. AKTCL conducts lot of training programs for Sales
Representatives. AKTCL conduct training program once during recruitment period. Md.
Anwar Hossain (TSO) directly train them. These training undergoes into three
departments. After all these three way training process, (TSO) Md. Anwar Hossain re
examine them for their effective training completion. Sales Representatives are working
under 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 such
type of company in which most of Sales Representatives are educated, so that, they done
their work in proper manners. The basic responsibility of Sales Representatives is to
communication of product and promotion both. Work of Sales Representative is to get
order from the outlets and to deliver the stock requirement in accordance with TSO’s


instructions. A Sales Representative should be a best communicator. He should create a
long 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 any
complaint means return of D+D (damage & dry) stock etc. I was attached with Md. Anwar
Hossain.

⇒ NINE STEP SALES CALL
Nine step of call is very effective for salesmen and as well as employee of AKTCL. With
the help of these steps a salesman done his job in a good manner he accomplishes his
work within time. These steps are;

 Preparation

 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 the
morning he should be neat & clean if he feels any deficiency, he should be control this
deficiency. He should check the van and he should have the cash memo and ballpoint. All
the 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 must
understand the behavior of shopkeeper. According to the behavior of the retailers, the SR
approach in accordance with the situation.

 STOCK CHEK:


SR of AKTCL check all brands are available in the shop and if any brand is short then he
should complete the stock and give the stock to shopkeeper according to its sale volume.

 PRESENTATION:

If SR has any information about any brand of AKTCL, he should give to shop keeper and if
AKTCL offers any scheme and promotion, the responsibility of SR is to give all these
information to shop keeper.

 CLOSING:

Give maximum material to shopkeeper. Check cash memo and at the end, close all written
work.

A Sales Representative cannot act on nine step of call, because lack of education a Sales
Representative faces a lot of problems. I saw shopkeepers were very angry with Sales
Representative. They demand shirts, Caps, wall clocks and other such incentives. So Sales
Representative also faces these types of problems.

 IN STORE MARKETING & MERCHANDISING:

If AKTCL gives promotion to any shopkeeper, Salesman should check the display of all
brands, 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 we
convert the smoker to AKTCL brand if he use any other brand. In this step SR convince
the customer to use the brand of AKTCL.

 ADMINISTRATION:

Administer to all activities like cash memo, DSD etc. All the SR has to report everyday in
daily 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 any
deficiencies occur note them and control in the next tour. An ordinary SR try to maintain
the nine step of sales call process.

A salesman cannot act on nine step of call because lack of education a salesman faces a
lot of problems. I saw shopkeepers were very angry with salesman. They demand shirts,
liters, wall clocks and other such incentives. So salesman also faces these types of
problems.


⇒ CUSTOMER RELATIONSHIP MANAGEMENT
A Sales Representative should build a very healthy relationship with the retailers. He
should have a strong grip on local languages. He should checks rates offered to retailers.
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 their
selling job.

⇒ FIXED SALES SUMMARY (FSS)
A Sales Representative should monitor brand wise sales productivity. In particular beat
FSS is essential tool. In TAS selling strategy all the target of each brand has been
prescribed by the superior.

⇒ SALES REPRESENTATIVE’s SALERY
AKTCL gives salary on monthly based instead of sales commission based to its Sales
Representatives. AKTCL gives monthly salary according to the company regulation. AKTCL
clear the monthly salary within 30 days. The actual working day period according to the
AKTCL regulation and policy is 25 days working period and remaining 5 days left for their
payment clearance. Friday is the weekly holiday for the all employees. During Eid special
vacation period, it is done just before the Eid day.

⇒ STEPS CLAIM PROCESS OF DAMAGED & DESTROYED STOCK
In case of any DD or DDT a sales representative of AKTCL follow the below
formality 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 PROGRAM
AKTCL is very caring company. AKTCL conducts Sales Representatives training program
once in a year. During my internship AKTCL RSO conducted a training program in indoor
office at first floor. There all the SR were gather together and trained by the RSO and by


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 AKTCL
authority because of not disturbing the regular sales volume. All Sales Representatives of
this distributor were there. In which two T. S. O. are also available there. At the start of
program, T. S. O. gave introduction to all of Sales Representatives to RSO for making
program 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 all
the SR about the 9 step sales call process. So, that was very interesting program and was
very 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 maximum
knowledge about 9 steps. At the end Md. Anwar Hossain gives instruction to all Sales
Representatives. Actually the basic purpose of this program was to increase the efficiency
of all Sales Representatives.

 WARE HOUSE EXECUTIVE ATTACHEMENT
Warehouse executive is accountable for the supply chain management of from areas
warehouse to the distributor. The name of ware house executive is Mr. Bappi. Warehouse
executive’s other responsibilities are inventory control, system administration, receive daily
money account from the SR, maintaining balance sheet, record maintenance and stock
management as per supply chain guidelines. The function of warehouse is to provide right
product, at right time, in right quantity in an efficient manner to satisfy TSO. “Warehouse
in -charge” and an excise officer in the routine operations assist warehouse executive.
Production and supply chain department controls area warehouse.

⇒ STOCK REGISTER
AKTCL maintains a register that is called SD for the purpose of daily sales. This is the legal
responsibility by the company to maintain a stock register on daily bases.

 REGISTER SHOWS

 Total stock that received during the month

 Total stock available at month start

 On hand stock

 Split of DD, VDD

This is the annual marketing information register in which all the information about total
brand of AKTCL on annually basis this register shows the market volume of AKTCL. It also


shows the secondary sale volumes, coverage of daily sales stock. With the help of this
register we see accumulated sales trends and brand wise sales trends.

⇒ ORDER CONTROL FORM (OCF) / DAILY SALES DRAFT
Distributor produced OCF/DSD in which defined the estimated consumer demand. OCF is
daily average channel wise sale and it is prepared for each days forwarded as well as
approved 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 the
Zone In charge and approved by the TSO Md. Anwar Hossain and after all this activities
done Assistant Manager note down the daily sales and receive the cash amount from the
SR. 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 loss
account.

⇒ PLANNING ABOUT JOURNEY
TSO set out the monthly activity plan for SR as well as ZI and BP too. This is called
journey planning. A Territory Sales Officer visits those shops, which have high sale volume
and very big occurrence happened. So, with the help of this a T. S. O. easily plan out their
monthly activities. A ZI planned about the monthly journey in a written form and TSO
revise them very often, whether they are doing appropriately or not. With the help of this
monthly journey planning a TSO can very well know and understand when and where a ZI


can be found. If a ZI or any other personnel can not be found in accordance with the
planned paper, then those personnel will be punished in accordance with the rule
regulation 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, retail
classification survey is called as RCS. RCS gives information about classification of outlets
in connection to volume, quantity. With the help of RCS a T. S. O. performs trade
marketing and development activities. RCS provides ease to develop beats of Sales
Representative & coverage plan. With the help of RCS we can get the information of total
outlets.

SALES REPRESENTATIVES REQUIREMENT

CUSTOMER AND PRODUCT KNOWLEDGE

Effective salespeople need to know how businesses make purchase decisions and how
individuals evaluate product alternatives. In addition, effective salespeople need product
knowledge—how their products work and how the products’ features are related to the
benefits customers are seeking. A SR should know about the price detail of the brands,
about the promotional program regarding the brands.

FLEXIBILITY

The successful salesperson realizes that the same sales approach does not work with all
customers; it must be adapted to each selling situation. The salesperson must be sensitive
to what is happening and flexible enough to make those adaptations during the sales
presentation. TSO of AKTCL Md. Anwar Hossain always trains to all the sales
representatives to be flexible during selling the commodity with the retailer. He also trains
them to cope with the situation during the selling approach.


CREATIVITY

Successful salespeople use their creative juices to build bridges to their customers, gain
long-term commitments, and effectively manage relationships. Creativity is the trait of
having imagination and inventiveness and using it to come up with new solutions and
ideas. Sometimes it takes creativity to get an appointment with a prospect. It may take
creativity to develop a long-remembered presentation in the buyer’s mind or it takes
creativity to solve a sticky installation problem after the product is sold.

CONFIDENCE

Successful salespeople tend to be confident about themselves, their company, and their
products. 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 to
work hard to achieve their goals. They are open to criticism, seek advice from others, and
learn from their mistakes. They expect good things to happen, but they take personal
responsibility 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 unrealistic
goals.

EMOTIONAL INTELLIGENCE

Salespeople span the boundary between their companies and the companies’ customers.
At times the objectives of the company can differ from those of the customers. The
company wants the salesperson to make profits, and the customer wants to buy a product
that meets his or her needs at the lowest price. Dealing with these conflicting objectives
can be very stressful for salespeople.

COMMUNICATION SKILLS

The key to building strong long-term relationships is to be responsive to a customer’s
needs. To do that, the salesperson needs to be a good communicator. But talking is not
enough; the salesperson must also listen to what the customer says, ask questions that
uncover problems and needs, and pay attention to the responses.

TRUSTWORTHINESS

Most salespeople work in the field without direct supervision. Under these conditions they
may be tempted to get up late, take long lunch breaks, and stop work early. But
successful salespeople do not surrender to these temptations. They are self-starters who
do not need the fear inspired by a glaring supervisor to get them going in the morning or
to 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 in
contacting 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,


successful salespeople are motivated to learn. They must continually work at improving
their skills by analyzing their past performance and using their mistakes as learning
opportunities.

INDEPENDENCE AND RESPONSIBILITY

Many people do not want to spend long hours behind a desk, doing the same thing every
day. TSO of AKTCL Md. Anwar Hossain is one of the examples of such person. They prefer
to be outside, moving around, meeting people, and working on various problems. Selling
ideally suits people with these interests. The typical salesperson interacts with dozens of
people daily. Most of these contacts involve challenging new experiences. Selling also
offers unusual freedom and flexibility. It is not a nine-to-five job. Most salespeople decide
how to spend their time; they do not have to report in. They have the freedom to
determine what they do during a day, to decide which customers to call on and when to
do paperwork. Long hours may be required on some days, and other days may bring
fewer 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 are
responsible for the sales and profits the territory generates. Thus their success or failure
rests largely on their own skills and efforts.


MARKETING PROCESS

During the past century most Companies were small and knew their customers first hand.
Managers picked up marketing information by being around people, observing them and
asking questions. During this century, however, many factors have increase of the need
for more and better information. As sellers use more complex marketing approaches and
face 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 control
marketing mangers need information at almost every turn. They need information about
customers, competitors and other forces in the market place. One marketing executive put
it this way – “To manage a business well is to manage future and to mange the future is
to manage information. Increasingly marketers are viewing information just as input for
making 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 Company
Limited”. During the project, a conclusive method of the marketing and selling approach
was followed to find out the selling concept and reality. While working on the project, it
was realized that the selling tobacco work is very hard to establish any marketing
strategies before making decision.

MARKETING CONCEPT

There are different types of marketing concepts;

Marketing Concepts

Production Concept

Product Concept

Selling Concept

Marketing Concept

Societal Marketing
Concept

Customer Concept


 THE PRODUCTION CONCEPT
Production Concept is a concept where goods are produced without taking into
consideration the choices or tastes of your customers. It is one of the earliest marketing
concepts where goods were just produced on the belief that they will be sold because
consumers need them.

Management Obligation

Management should concentrate on achieving production efficiency, low cost and mass
distribution.

Assumption

Consumers like cheaper product. In that case, it is possible because huge production
allows cost minimization as well as price minimization up to a certain level. Consumers like
to get product at their hand, at convenient places. In that case organizations take massive
distribution effort.

Limitation

It is very tough to satisfy customer by using this concept because product quality and
feature will not be good.

AKTCL is strictly adopting this type of marketing concept. That is why the price of the
most of the brands of AKTCL is low. The segmentation of the AKTCL is also middle and
lower segment too. For the lower segmented customer it must keep in mind that the price
should be low. That is why production concept must be followed by the AKTCL.

 THE PRODUCT CONCEPT
The Product Concept in marketing refers to the ideology that a product would be the most
successful in the market if the main focus is put on the product quality and specifications
itself. It goes against the Marketing Concept that puts focus on consumer insight more
than on anything else. The Product Concept simply believes that the product would sell
itself, and it is especially applicable to technological breakthroughs.


Management should concentrate on making superior products and improving them over
time.

Assumption

It assumes that buyers admire well-made products and can evaluate quality and
performance.


Limitation

Who will define and what would be the definition of quality are the main problems of that
concept.

If AKTCL wants to follow this type of marketing concept, then the price of the product
price will increase and the segment customer may switch that brand for the price
increases. That is why the AKTCL is not following the product concept.

 THE SELLING CONCEPT
Many organizations follow the selling concept, which holds that consumers will not buy
enough of the organization's products unless it undertakes a large scale selling and
promotion effort. The concept is typically practiced with unsought goods, those that
buyers do not normally think of buying such as encyclopedias or insurance. These
industries must excel at tracking down prospects and selling them on product benefits.


Management must be good at tracking down prospects and selling them on product
benefits.

Assumption

This concept assumes that consumers typically show buying inertia or resistance and must
be coaxes into buying.

Limitation

Marketing based on hard selling carries high risks. It assumes that customers who are
coaxed into buying a product will like it and if they do not they will not badmouth it or
complain to consumer organizations and well forget their disappointment and buy it again.

AKTCL is adopting this type of selling concept strictly.

 MARKETING CONCEPT

The concept holds that achieving organizational goals depends on determining the needs
and wants of target markets and creating, delivering and communicating the desired
satisfactions or customer value to its chosen target markets more effectively and
efficiently than competitors do.


Management is responsible for selecting target market, understanding customer needs
and integrating marketing activities and making profit through customer satisfaction. The
key risk is to attract customers and retain them.


Assumption

This concept assumes that consumers will buy the product again if they are satisfied. In
this case satisfied customers work as an advocate.

Limitation

Understanding customer needs and wants is not always simple. In the course of
converting to a marketing orientation, a company faces three barriers (1) Organized
resistance (2) Slow learning (3) Fast forgetting.

AKTCL is also following this type of marketing concept as well. TSO Md. Anwar Hossain
trying hard with the BP as well as SR to promote their brands through the marketing
concept.

 SOCIETAL MARKETING CONCEPT

The idea that the organization determine the needs, wants and interests of target
markets and deliver the desired satisfactions more effectively and efficiently than
do competitors in a way that maintains or improves the customer’s and society’s
well-being.


Managers must concern to build social and ethical considerations into their marketing
practices. They must balance and juggle the often conflicting criteria of company profits,
consumer want satisfaction and public interest.

Assumption

It assumes that this concept might be an opportunity to enhance their corporate
reputation, raises brand awareness, increase customer loyalty, build sales and increase
press coverage. It is also assumed that customers will increasingly look for signs of good
corporate citizenship that go beyond supplying rational and emotional benefits.

Limitation

Sometimes it is costly but ultimately it strengthens consumer confidence and loyalty.

AKTCL is not actually following this type of marketing concept, because Bangladesh
government has restricted smoking advertising in public since March 2005.

 CUSTOMER CONCEPT

The idea that consumers will favor product that are designed according to their
requirement is called customer concept. A growing number of today’s companies are now
shaping separate offers; services and messages to individual customers. These companies


collect information on each customer’s past transaction, demographics and psychographics
and media and distribution preferences.


Management’s task is collecting information on each customer’s preferences and they are
responsible for producing separate offers, services and messages to individual customers
as per requirements.

Assumption

This concept assumes that consumers like to get product according to their own choice.

Limitation

It is applied to overcome segmentation problem as each person has different identity. But
customization and customerization both are highly expensive.

Since the commodity of AKTCL is cigarette, cigarette is being made without the concept of
customer. That is why this type of customer is not being followed by the AKTCL.

MARKET SEGMENT

The division of a market into different homogeneous groups of consumers is known as
market segmentation.

Rather than offer the same marketing mix to vastly different customers, market
segmentation makes it possible for firms to tailor the marketing mix for specific target
markets, thus better satisfying customer needs. Not all elements of the marketing mix are
necessarily changed from one segment to the next. For example, in some cases only the
promotional 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 profitable

A market can be segmented by various bases, and industrial markets are segmented
somewhat differently from consumer markets, as described below.

Consumer Market Segmentation

A basis for segmentation is a factor that varies among groups within a market, but that is
consistent within groups. One can identify four primary bases on which to segment a
consumer market:


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 and
price sensitivity are notable.

The optimal bases on which to segment the market depend on the particular situation and
are 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 Segment

III. Low Segment

IV. Very Low Segment

According to the product price and quality offers, Abul Khair Tobacco Company Limited
segmented their large market into medium segment, low segment and very low segment.

THE MARKETING MIX
(The 4 P's of Marketing)

Marketing decisions generally fall into the following four controllable categories:

• Product

• Price

• Place (distribution)

• Promotion

The Marketing Mix


The Marketing Mix

Product Place

Target
Market

Price Promotion

These four P's are the parameters that the marketing manager can control, subject to the
internal and external constraints of the marketing environment. The goal is to make
decisions that center the four P's on the customers in the target market in order to create
perceived value and generate a positive response.

 PRODUCT DECISION

The term "product" refers to tangible, physical products as well as services. Here are
some examples of the product decisions to be made:


 Brand name

 Functionality

 Styling

 Quality

 Safety

 Packaging

 Repairs and Support

 Warranty

 Accessories and services

Most of the product decisions are made from the head office of AKTCL which is located in
Chittagong, Pahartali area.

 PRICE DECISION

Some examples of pricing decisions to be made include:

 Pricing strategy (skim, penetration, etc.)

 Suggested retail price

 Volume discounts and wholesale pricing

 Cash and early payment discounts

 Seasonal pricing

 Bundling

 Price flexibility

 Price discrimination

Pricing decision also maintained by the Chittagong head office. As a distributor TSO of
Khilgaon Md. Anwar Hossain is following the instruction abot the price decision made by
the head office.

 DISTRIBUTION DECISION

Distribution is about getting the products to the customer. Some examples of distribution
decisions include:

 Distribution channels


Marketing Strategy of Abul Khair Tobacco Company

Marketing Strategy of Abul Khair Tobacco Company

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