Anw Internship Report Final 110327192709 Phpapp02

A STUDY ON MARKETING STRATEGY IN THE CONTEXT OF ABUL KHAIR TOBACCO COMPANY LTD.

Submitted to

Mohammad Nazmul HuqAssistant Professor

Department of Business Administration (Marketing)

Submitted by

Md. Anowar HossainID: B.B.A - 027 07143

Department of Business Administration

MARKETING STRATEGY of ABUL KHAIR TOBACCO COMPANY Ltd. Page 1

Stamford University Bangladesh

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

Department of Business Administration

Stamford University Bangladesh


LETTER OF TRANSMISSION

28th January, 2010

Md. Nazmul HuqAssistant ProfessorDepartment of Business AdministrationStamford University Bangladesh

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 HOSSAINID. NO: B.B.A. 027 07 143E-mail: [email protected]


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 HossainBBA Id # BBA 02707143BBA, 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

TOTHE 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.


METHODOLOGYOF

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

STUDYOF

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.


DISCUSSIONON

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.


http://www.answers.com/topic/direct-selling

http://www.answers.com/topic/customer-service

http://www.answers.com/topic/product-business

http://www.answers.com/topic/customer

http://www.answers.com/topic/sales

http://www.answers.com/topic/dialogue-2001

http://www.answers.com/topic/selling-3

http://www.answers.com/topic/telephone

http://www.answers.com/topic/price-based-selling

http://www.answers.com/topic/guaranteed-home-sale

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


http://www.answers.com/topic/multi-level-marketing

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http://www.answers.com/topic/party-plan

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.


http://www.answers.com/topic/profit

http://www.answers.com/topic/yield-management-group-high-income-trust

http://www.answers.com/topic/competitive-advantage-1

http://www.answers.com/topic/competitive-advantage-1

http://www.answers.com/topic/bargain

http://www.answers.com/topic/customer

http://www.answers.com/topic/profit

http://www.answers.com/topic/shopzilla

http://www.answers.com/topic/commodity

http://www.answers.com/topic/retailing

http://www.answers.com/topic/hospitality

http://www.answers.com/topic/commodity

http://www.answers.com/topic/sales

http://www.answers.com/topic/business

http://www.answers.com/topic/purchasing-1

http://www.answers.com/topic/calendar-date

http://www.answers.com/topic/money

http://www.answers.com/topic/real-estate

http://www.answers.com/topic/home-garden-california

http://www.answers.com/topic/north-america

http://www.answers.com/topic/north-america

http://www.answers.com/topic/real-estate-broker

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


http://www.answers.com/topic/self-promotion

http://www.answers.com/topic/coupon

http://www.answers.com/topic/discount

http://www.answers.com/topic/best-buy-co-inc

http://www.answers.com/topic/industry

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.


http://www.answers.com/topic/fixed-price

http://www.answers.com/topic/bargaining-2

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 1st floor of the chamber. Numbers of employees are working in different positions in the ground floor of AKTCL chamber. Here I found:

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


(R. S. O.) Regional Sales Officer(Atiqul Ehsan)

(T. S. O.) Territory Sales Officer(Md. Anwar Hossain)

(Z. I.) Zone In chargeTotal 4 (Z. I.)

M. R.(Merchandising Representative)

(B. P.) Brand Promoter = Total 27 (B. P.)

(S. R.) Sales Representative = Total 20 (S.

Md. Mitul Hassan

Md. Zakir Hossain

Md. Kamruzzaman

Md. Fazlul Karim

Md. Abdul Latif

Md. Shoriful Islam

(V. P.) Van Puller = Total 20 (V. P.)

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;


Area

of

Territory Sales Officer

(T. S. O.)

Md. Anwar Hossain

Rampura

Bonosree

Meradia

Sepahibag

Khilgaon Chowrasta

Under Khilgaon Fly Over

Shah Jahan Pur

Comola Pur Stadium Saeda Bad Road

Golapbag Chowrasta

Razdhani Super Market

Tikatuli Chowrasta

Kaptan Bazar

Nobabpur Road

Bongshal Road

Nazim Uddin Road

Chankhar Pull

Dhaka Medical College

TSC and Shahid Minar

Shahabag Road

Shahabag Road Right Side Only

Eskaton Road

Mogbazar Road

Beylli Road

Modhu Bag Road

Khilgaon Jhilpar

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


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Place (distribution)

Promotion

The Marketing Mix

The Marketing Mix

Product Place

TargetMarket

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

Market coverage (inclusive, selective, or exclusive distribution)

Specific channel members

Inventory management


Warehousing

Distribution centers

Order processing

Transportation

Reverse logistics

As a distributor AKTCL, TSO Md. Anwar Hossain is fully performing all the distribution decisions properly and effectively.

PROMOTION DECISION

In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include:

Promotional strategy (push, pull, etc.)

Advertising and promotional activities or program

Personal selling & sales force

Sales promotions

Public relations & publicity

Marketing communications budget

All the activities of promotional decisions are made by the TSO Md. Anwar Hossain. AKTCL authority has delegated the authority to do all kinds of promotional activities to promote their brands.

MARKETING MIX & MARKETING STRATEGY

A sales person involves an individual acting for AKTCL by performing one or more of the following activities:

Prospecting

Communicating

Servicing

Information Gathering

The term salesperson covers a wide spectrum of positions from;


o Order Taking

o Commodity Delivering

The Role of the Sales Force

Personal selling is effective because salespeople can;

Probe customer to learn more about their problems

Adjust the marketing offer to fit the special needs of each customer

Negotiate terms of sale

Build long term relationship with the key decision makers

Managing the Sales force

TSO Md. Anwar Hossain manages the sales forces by following structure;

Designing the sales force strategy and structure

Recruiting and selecting sales people

Training Salespeople

Compensating Salespeople

Supervising Salespeople

Evaluating Salespeople

Training Salespeople

The average sales training program lasts for one months and has the following goals

Help Salespeople know and identify with the company

Learn how the product work

Learn the price of the product

Learn competitive brands price

Learn competitors benefits about the particular brands

Learn about competitors and customers characteristics

Learn how to make effective presentations

Understand field procedures and responsibilities


TSO Md. Anwar Hossain adopt training program at a very short time period.

Compensating Sales people

Sales force compensation plans adopted by the AKTCL both motivate salespeople and direct their activities.

Salary

Bonus

Commission

Benefits

Supervising Salespeople

Directing Salespeople in personal supervision by the TSO Md. Anwar Hossain as well as Zone In charge through following structure;

Identify customer targets and set call norms

Develop prospect target

Use sales time efficiently

Annual call schedule

Time and duty analysis

Sales force automation

Motivating Salespeople also adopted by the TSO Md. Anwar Hossain to achieve goal;

Organizational climate

Sales quotas / Target

Positive incentives

Honor

Awards

Merchandise/cash

Trips

Evaluating Salespeople


TSO evaluate sales people monthly as well as daily sales basis and after evaluating action taken;

Monthly sales target and daily sales target compare

Daily Sales reporting

Work plan

THE PRODUCT LIFE CYCLE

A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.

The product revenue and profits can be plotted as a function of the life-cycle stages as shown in the graph below:

Product Life Cycle Diagram

INTRODUCTION STAGE

In the introduction stage, the firm seeks to build product awareness and develop a market for the product. The impact on the marketing mix is as follows:


Product branding and quality level is established and intellectual property protection such as patents and trademarks are obtained. Offer a basic product.

Pricing may be low penetration pricing to build market share rapidly, or high skim pricing to recover development costs. Use cost plus pricing.

Distribution is selective until consumers show acceptance of the product.

Promotion is aimed at innovators and early adopters. Marketing communications seeks to build product awareness and to educate potential consumers about the product.

Sales – Low sales

Costs – High cost per customer

Profit – Negative

Marketing Objective – Create product awareness and trial

GROWTH STAGE

In the growth stage, the firm seeks to build brand preference and increase market share.

Product quality is maintained and additional features and support services may be added.

Pricing is maintained as the firm enjoys increasing demand with little competition.

Distribution channels are added as demand increases and customers accept the product.

Promotion is aimed at a broader audience.

Sales – Rapidly rising sales

Costs – Average cost per customer

Profits – Rising profits

Marketing Objective – Maximize market share

MATURITY STAGE

At maturity, the strong growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to defend market share while maximizing profit.


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Product features may be enhanced to differentiate the product from that of competitors.

Pricing may be lower because of the new competition.

Distribution becomes more intensive and incentives may be offered to encourage preference over competing products.

Promotion emphasizes product differentiation.

Sales – Peak sales

Costs – Low cost per customer

Profits – High profits

Marketing Objective – Maximize profit while defending market share

AKTCL is running their business at maturity stage recently.

DECLINE STAGE

Product Phase out weak items

Pricing Cut price.

Distribution Go selective: Phase out unprofitable outlets

Promotion Reduce to level needed to retain hard-core loyal customers

Sales – Declining sales

Costs – Low cost per customer

Profits – Declining profits

Marketing Objective – Reduce expenditure and milk the brand

As sales decline, the firm has several options:

o Maintain the product, possibly rejuvenating it by adding new features and finding new uses.

o Harvest the product - reduce costs and continue to offer it, possibly to a loyal niche segment.

o Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product.

Now point to be noted that the Abul Khair Tobacco Company Limited is running their product at maturity level. Not only Bangladesh but also out of border


AKTCL exporting their commodities at a large scale range. It is estimated that AKTCL earning per annum about 100 million dollar.


SWOT ANALYSIS OF AKTCL

SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. Specifically, SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and

weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results.

When using SWOT analysis, one has to be realistic about the strengths and weaknesses of the organization. Distinguish between where the organization is today, and where it could be in the future. Also have to remember to be specific by avoiding gray areas and always analyze in relation to the competition. Finally, one has to keep SWOT analysis short and simple, and avoid complexity and over-analysis since much of the information is subjective. Thus, this report can be use as a guide and not a prescription.

STRENGTHS

Strength is an attributes of the person or company that is helpful to achieving the objective. After analyzing the AKTCL’s Mohsin distributor, I have found various strengths about the organization; these are as follows;

o AKTCL offer various incentive packages like coupon, Wall Clock, tape recorders and free pack in promotion.

o AKTCL is a consumer-focused company.

o AKTCL is working in systematically way.

o AKTCL is working as doing good not only doing well.


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o AKTCL attract only those people whom above 18 and not less then that.

o AKTCL gives more incentives to salesmen during any promotion.

o AKTCL is taking care of their employees.

o Management of AKTCL create a database and all its employees are link between each other

o AKTCL conducts health and safety programs of their employees.

o The working environment of AKTCL is very good.

o AKTCL appreciates all of those employees who show more effort in their work.

o AKTCL conduct SR training program.

o AKTCL follows Target Account Selling method strategy

o AKTCL follows Selling and Marketing concept.

o AKTCL segments are medium, low and very low which matches most of the Bangladeshi

o Salaries of Sales Representatives are given in time, that’s why they are satisfied on this.

WEAKENESSES

A weakness is an attributes of the person or company that are harmful to achieving the objective.

After analyzing the AKTCL’s Mohsin distributor, I have found various weaknesses about the organization; these are as follows;

o Bangladesh government prohibits advertisement of tobacco products in public.

o These includes cinema halls, government and private TV channels, sale of films or videotape containing tobacco products, publication of tobacco advertisements in books, magazines, leaflets, handbills, billboards, newspapers, etc.

o The law also prohibits installation of any vending machine from where tobacco products can be purchased through an automatic system.

o The law defines as public places educational institutions, offices of the government, semi-government and autonomous bodies, libraries,


elevators, hospitals and clinics, court buildings, airport buildings, sea and river port buildings, railway station buildings, bus terminal buildings, ferries, cinema halls, covered exhibition centers, theatres, shopping centers, public toilets, and government and private owned children parks.

o Motor vehicles, buses, trains, passenger ships, launches, all mechanized vehicles and aero planes are referred to as public transport under the law.

o Salaries of salesmen are very low due to this reason they are not satisfied.

o Number of distribution is less as compare to its area.

o Brand promoter is not working up to the standard.

o Sales Representatives willingly does not cover rural area according to their desire.

o Some time SR does not cover his area in proper time.

o TSO always push all the employees for their own job for extra effort.

o Zone In charge, Brand promoter as well as Sales Representatives do not perform extra effort

OPPERTUNITIES

Opportunity is an external condition that is helpful to achieving the objective. After analyzing the AKTCL’s Mohsin distributor, I have understood and tried to find out the opportunity for the distributor. These opportunities are as follows;

o Brand‘s acceptance shows that it has potential to grow and grow well.

o Promotion activities give us ideal opportunities to cannibalize substantial share from declining brands.

o The law, however, does not prohibit smoking in open space, hotels and restaurants and parks. This is an opportunities to segment market as well.

o The law suggests that the owner, caretaker, controlling authorities and management of public places and public transport could have an area within designated as smoking zone.

o Promotion has been a strong basis towards building up big brand image for all AKTCL.


o In promotion AKTCL gives more incentives rather than the competitor.

THREATS

Threat is an external condition which could do damage to the objective. According to my understanding AKTCL has some threats which should be prevented to do better in business.

o When AKTCL starts any activity of coupon scheme other competitors also start such type of scheme.

o Some times competitors introduce consumer promotion with better and attractive prizes.

o Sometimes competitors reduce its prices.

o Meanwhile, to encourage tobacco farmers to cultivate alternative crops, the government has decided to provide them with soft loan support.

o Competitors cover more area instead of AKTCL.

o Customer of SHEIKH & NAVY is very loyal.

o The prices of competitor are very less as compare to AKTCL brand.

BCG MATRIX FOR AKTCL DISTRIBUTOR


The BCG matrix method is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit. To ensure long-term value creation, a company should have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that generate a lot of cash. It has 2 dimensions: market share and market growth. The BCG Growth-Share Matrix is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. It is based on the observation that a company's business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor, hence the name "growth-share". Market growth serves as a proxy for industry attractiveness, and relative market share serves as a proxy for competitive advantage. The growth-share matrix thus maps the business unit positions within these two important determinants of profitability. The basic idea behind it is that the bigger the market share a product has or the faster the product's market grows the better it is for the company.

Placing products in the BCG matrix results in 4 categories in a portfolio of a company:

1. Question Marks (= high growth, low market share)

The business unit has low market share compared to competitors, however it is doing business in high-growth market. Most of the new businesses start in this quadrant. There are well established businesses in this market and new businesses try to grow and capture more market share. This market is growing and there are opportunities for new businesses. At the same time there is risk involved with investing in this business – because of that these businesses are called question marks. Question Marks have to develop and grow by investing and continuously improving their business. Grow sales by increasing market share. Use cash from Cash Cows to support required investments. Question


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marks are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is large net cash consumption. A question mark (also known as a "problem child") has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share.

- have the worst cash characteristics of all, because high demands and low returns due to low market share

- If nothing is done to change the market share, question marks will simply absorb great amounts of cash and later, as the growth stops, a dog.

- Either invests heavily or sells off or invests nothing and generates whatever cash it can. Increase market share or deliver cash

2. Stars (=high growth, high market share)

The business has high market share compared to competitors and it is doing business in high-growth market. This business is a market leader. Successful Question Marks will grow their business and capture more market share and will hopefully become Stars (move from the Question Marks quadrant to the Stars quadrant). Successful and competitive organizations have at least one star business unit or product. Abul Khair Tobacco Company Limited in going under stars category. Stars have to improve their business continuously in order to keep their position in the marketplace. As long as this market is growing new question marks will try to capture new business. Invest for sales growth and market share. Use cash from Cash Cows to support required investments. Stars generate large amounts of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate; therefore the cash in each direction approximately nets out. If a star can maintain its large market share, it will become a cash cow when the market growth rate declines. The portfolio of a diversified company always should have stars that will become the next cash cows and ensure future cash generation.

- Use large amounts of cash and are leaders in the business so they should also generate large amounts of cash.

- Frequently roughly in balance on net cash flow.

However, if needed any attempt should be made to hold share, because the rewards will be a cash cow if market share is kept.


3. Cash Cows (=low growth, high market share)

The market is not very attractive – low market growth rate, however the business has high market share compared to competitors. This business generates a lot of cash and helps the organization invest in other businesses. Since the market does not attract new players, this business does not need substantial investments to keep the market share. Cash Cows have to protect and keep the market share and maximize cash flow. Maintain the strong market position and defend your market share. Take advantage of sales volume and leverage the size of operations. Support other businesses. As leaders in a mature market, cash cows exhibit a return on assets that is greater than the market growth rate, and thus generate more cash than they consume. Such business units should be "milked", extracting the profits and investing as little cash as possible. Cash cows provide the cash required to turn question marks into market leaders, to cover the administrative costs of the company, to fund research and development, to service the corporate debt, and to pay dividends to shareholders. Because the cash cow generates a relatively stable cash flow, its value can be determined with reasonable accuracy by calculating the present value of its cash stream using a discounted cash flow analysis. Recently some brands of AKTCL are at this level.

- Profits and cash generation should be high , and because of the low growth, investments needed should be low. Keep profits high

- Foundation of a company

4. Dogs (=low growth, low market share)

This business has low market share and operates in low-growth market. It is unlikely that this business is very profitable – more likely this business is a loser. Such a business needs consideration and new strategy development. Potential strategies are withdrawal, selling the business, repositioning the current business, and operating cost reduction. Optimize your current operations. Get rid of all non value added activities and features. Reposition your offering to generate positive cash flow or sell this business. Dogs have low market share and a low growth rate and thus neither generate nor consume a large amount of cash. However, dogs are cash traps because of the money tied up in a business that has little potential. Such businesses are candidates for divestiture. AKTCL is not yet thinking about this type of category for the upcoming twenty years.

- avoid and minimize the number of dogs in a company.

- beware of expensive ‘turn around plans’.

- deliver cash, otherwise liquidate


The BCG Matrix method can help understand a frequently made strategy mistake: having a one-size-fits-all-approach to strategy, such as a generic growth target (9 percent per year) or a generic return on capital of say 9.5% for an entire corporation.

In such a scenario:

A. Cash Cows Business Units will beat their profit target easily; their management has an easy job and is often praised anyhow. Even worse, they are often allowed to reinvest substantial cash amounts in their businesses which are mature and not growing anymore.

B. Dogs Business Units fight an impossible battle and, even worse, investments are made now and then in hopeless attempts to 'turn the business around'.

C. As a result (all) Question Marks and Stars Business Units get mediocre size investment funds. In this way they are unable to ever become cash cows. These inadequate invested sums of money are a waste of money. Either these SBUs should receive enough investment funds to enable them to achieve a real market dominance and become a cash cow (or star), or otherwise companies are advised to disinvest and try to get whatever possible cash out of the question marks that were not selected.

Under the growth-share matrix model, as an industry matures and its growth rate declines, a business unit will become either a cash cow or a dog, determined solely by whether it had become the market leader during the period of high growth.

While originally developed as a model for resource allocation among the various business units in a corporation, the growth-share matrix also can be used for resource allocation among products within a single business unit. Its simplicity is its strength - the relative positions of the firm's entire business portfolio can be displayed in a single diagram.

Limitations

The growth-share matrix once was used widely, but has since faded from popularity as more comprehensive models have been developed. Some of its weaknesses are:

Market growth rate is only one factor in industry attractiveness, and relative market share is only one factor in competitive advantage. The growth-share matrix overlooks many other factors in these two important determinants of profitability.


The framework assumes that each business unit is independent of the others. In some cases, a business unit that is a "dog" may be helping other business units gain a competitive advantage.

The matrix depends heavily upon the breadth of the definition of the market. A business unit may dominate its small niche, but have very low market share in the overall industry. In such a case, the definition of the market can make the difference between a dog and a cash cow.

While its importance has diminished, the BCG matrix still can serve as a simple tool for viewing a corporation's business portfolio at a glance, and may serve as a starting point for discussing resource allocation among strategic business units.


RECOMMENDATION

&CONCLUSION


RECOMMENDATION

Among the fast moving consumer goods company AKTCL is one of the prominent native company which has several product line and many more come in future. So in term of consumer perception and positioning they should make in mind the following recommendation–

Research on the characteristics of effective salespeople indicates that many different personality types can be successful in sales. However, successful salespeople do share some common characteristics. They are highly motivated, dependable, ethical, knowledgeable, good communicators, flexible, creative, confident, and emotionally intelligent.

AKTCL in Khilgaon needs to increase the efficiency of Consumer Contact in a more planned way.

In the weak belts in respect of less volume share AKTCL can increase the Market Share by improving the Consumer Contact with the help of Competent Workforce.

Warehouses in Khilgaon are overloaded. So, AKTCL needs more capacity based warehouses in Khilgaon.

AKTCL needs more improvement in Merchandising Maintenance System.

TSO is always under pressure due to High Target Achievement, managing the Distributor issues as well supervising the SR.

Sales force should be more trained up and proactive to capture the market of tobacco.

Product availability should be maintained by the company.

Production should be as per demand of the customer.

It is recommended that certain promotional activities to be undertaken in order to effective the program like face to face discussion, free samples, incentives providing etc.

It is recommended that AKTCL should arrange for training program of all the employee, sales personnel and executives.

The concerned sales & marketing executive should occasionally visit the remote markets to encourage the SR.

As a big Target Market, AKTCL is ignoring the Rural Areas in Area of TSO, which should be considered.


Sales Representatives are the earning hand of any Organization. But the percentage of the commissions or salary of Salesmen is less.

Authority should pay more attention on promotional tools.

Authority should adopt performance appraisal system.

CONCLUSION

We should study personal selling because we all use selling techniques. If we want to work in business, we need to know about selling because salespeople play a vital role in business activities. We might become a salesperson. Selling jobs are inherently interesting because of the variety of people encountered and activities undertaken. In addition, selling offers opportunities for financial rewards and promotions. Salespeople engage in a wide range of activities, including providing information on products and services to customers and employees within their firms. Most of us are not aware of many of these activities because the salespeople we meet most frequently work in retail stores. However, the most exciting, rewarding and challenging sales positions involve building partnerships: long-term, win–win relationships with customers. The specific duties and responsibilities of salespeople depend on the type of selling position. However, most salespeople engage in various tasks in addition to influencing customers. These tasks include managing customer relations, serving as the account team manager for their firm, managing the relationships with vendor and channel members, and providing information to their firm. Sales jobs can be classified by the roles salespeople and their firms play in the channel of distribution. The nature of the selling job is affected by whom salespeople work for and whether they sell to manufacturers, distributors, or retailers. Other factors affecting the nature of selling jobs are the customer’s relationship to the salesperson’s firm, the salesperson’s duties, the importance of the buying decision to the customer, where the selling occurs, the tangibility of the benefits considered by the customer, and the degree to which the salesperson seeks a commitment from customers. After conducting this assignment successfully I found that AKTCL of Bangladesh can be able to create a significant position to our economy and try to boost up the economy of Bangladesh. In conclusion I can strongly predict that AKTCL contains a great future ahead of it.



APPENDIX

Graph & Chart No.

Detail InformationPage No.

1 Product of Abul Khair Group 16

2 Leaf Production 19

3 Burley Production 19

4 Employee Hierarchy 34

5 Territory Sales Officer Area 37

6 Marketing Mix (4 P’s) 55

7 Product Life Cycle 60

8 SWOT analysis 63

9 BCG Matrix 66

10 BCG Matrix through Product Life Cycle 67


BIBLIOGRAPHY

o Gerald L. Manning, Barry L. Reece; eighth edition, Selling Today.

o By Philip Kotler, Eleventh edition Marketing Management

o Naresh K.Malhotra ,5th Edition, Marketing Research .

o John Daniel D.; Radebaugh Lee H.; ninth Edition; International

Business.

o www.bangladeshyellowpages.com

o www.abulkhairtobacco.com

o www.google.com

o www.answers.com

o www.wikipedia.org

Reference

1. Philip Kotler, Principles of Marketing, Prentice -Hall, 1980

2. Mack Hanan, Consultative Selling: the Hanan Formula for High-Margin Sales at High Levels, Kindle Edition, 1970.

3. Linda Richardson, Stop Telling, Start Selling: How to Use Customer-Focused Dialogue to Close Sales, McGraw-Hill, 1998.

4. Atul Uchil, Relationship Selling: the Fine Art of Consultative Sales, Outskirts Press, 2007.

5. Michael A. Belch George E. Belch Advertising and Promotion: An Integrated Marketing Communications Perspective, 7/e., McGraw-Hill/Irwin, 2006

6. Guaranteed Sale - Five Steps

7. Di Frances, John. "Relationship Selling Sales Speaker." Motivational Speaker – Professional Keynote Speaker - Motivational Public Business Speakers Bureaus. 14 Mar.

8. www.thetasgroup


http://www.thetasgroup/

http://www.starone.com/guaranteed/steps.asw

http://www.wikipedia.org/

http://www.answers.com/

http://www.google.com/

http://www.abulkhair/

http://www.bangladeshyellowpages.com/

9. CDP (1995a). Benson & Hedges in the South (Excl. London). Consumer Lifestyle Analysis. Doc No 0064.


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