Pakistan Tobaco Report

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INTERNSHIP REPORT ON

PAKISTAN TOBACCO COMPANY

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PREFACE

If we mull over the significance of internship program then we will be able to bare the

facts that internship enhance ones practical loom towards work and provide maximum

chances for learning, which will obviously help out candidate in the practical fields. The

intention at the rear about internship program is that the students can analyze, observe, feel,

examine the organization environment and equip themselves with the tools to face the ever

shifting challenges in the organizations. In short internship plays a pivotal role in the future

sensation & stir of the candidate. This Report is specially meant for the student of MBA . It is

concerned to a brief study of the marketing operations, Function, Tasks and Services of

Pakistan Tobacco Company.

In preparation of this Report is have tried my best to provide all Possible information aboutthe operation, function and tasks of Pakistan Tobacco Company in brief and comprehensive

form. It also includes a brief department worked during internship. I have also tried my best

to use simple and easy words and language.

This report is an anthology of my views pertaining to Pakistan Tobacco Company operations

& practices. In my view it is a credible and comprehensive compilation of facts. In this report

I wrote principally on the issues pertaining to job duties & responsibilities, operations &

practices and its future prospects with some recommendations.

When the time came to give this information a convenient shape I was confronted with adilemma of what to put in. One leeway was to include all details with explanation & second

preference was to point out some worthy issues with some details. Last solution looked more

practicable to me therefore I opt for second solution i.e. to present some relevant feasible

details. These details entail information about management philosophy, practices, and

functions, strong and weak areas of Pakistan Tobacco Company.

I take this opportunity to express my gratitude to all who helped me in the preparation of this

valuable report.

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DEDICATION

I dedicate my work to my most respectable parents and teachers whom prayer made

me able to have such an opportunity of working in the Pakistan Tobacco Company and

get experienced

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ACKNOWLEDGEMENT

All praise to Almighty Allah, the most merciful and compassionate, who give me skills

and abilities to complete this report successfully

I am grateful to my parents who are always been a source of encouragement for me

throughout my life and from start to the end of this reportI am thankful to all my staff members so Pakistan Tobacco Company.

I found every one very co-operative and helpful for providing me the Theoretical as

well as practical knowledge about the function and operation of the Pakistan Tobacco

Company.

I like to express our gratitude to Ali Raza (Area Manager),Gulsher

(TMO) and the whole Pakistan Tobacco Company

team that helped me by providing all the needed information i needed to

complete this report.

I express my greatest gratitude to my kind-hearted Supervisor Fahad who was the

Person who made me able to write this report, His enthusiasm shows the way

forward to me to achieve this success and who kept me in high spirit through his

appreciation. He helped me a lot each time I went up to him.

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Table of Contents

Internship Report On ..................................................................................................................2PAKISTAN TOBACCO COMPANY .......................................................................................2

Role of RCE (Regional Communication Executive) ...............................................................31

PROJECT SKYWALKER .......................................................................................................32

One to One Communication .....................................................................................................32

Types of One to One Communication ......................................................................................32

PURPOSE OF STARTING PROJECT SKY WALKER .......................................................35

SKY WALKER STRUCTURE HIRERICHY .........................................................................35

Roles of BAs ............................................................................................................................37

SUPERVISOR ATTACHMENT .............................................................................................38

AREA MANAGER (SKY WALKER PROJECT) ATTACHMENT ..................................39

REGIONAL MANAGER (SKY WALKER PROJECT) ATTACHMENT ........................40

DEPARTMENTS OF PAKISTAN TOBACCO COMPANY ................................................42

HUMAN RESOURCE DEPARTMENT .................................................................................44

EH&S DEPARTMENT ............................................................................................................45

SECURITY DEPARTMENT ...................................................................................................45

ENGINEERING DEPARTMENT ...........................................................................................45

PEST ANALYSIS ....................................................................................................................47

FINANCIAL ANALYSIS ........................................................................................................49

RATIO ANALYSIS .................................................................................................................55

Conclusion ................................................................................................................................62

RECOMMENDATIONS ..........................................................................................................63APPENDIX ...............................................................................................................................65

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EXECUTIVE SUMMARY

One of the great pleasures of writing the project is acknowledging the efforts of many people

whose names may not appear on the cover but whose hard work, cooperation, friendship

and understanding were crucial to the production of this report.

To get the first hand knowledge, one should put itself in practical and natural environment.

This is the utmost purpose of internship, which we supposed to do for at least six to eight

weeks. Pakistan Tobacco Company is a well-reputed multinational organization. PTC uses

state of art technology in every department. It is great prestige and honour for me to work in

an environment, which has utilized our energies to fullest. Being internee here I have learnt a

lot, and environment here was friendly and conducive for learning. This introduction is

regarding to report, which consists of Background of study, Purpose of Study, Scope of

Study, Methodology of Research.

During my 6 weeks of intern ship, the aim of my struggle is to know about the market and its

difficulties. I have been attached with different PTC's officers, from whom I learned market

exposure ,management, structure hierarchy and market knowledge. I also have been

attached with salesman and SPs.

This internship report carries all information about Pakistan Tobacco Company and my

internship working areas.

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WHAT IS TOBACCO?

The tobacco plant is in the same botanical family as tomatoes, potatoes, peppers or

eggplants. An adaptive species, it can be grown economically from 50 Northern to 40

Southern latitude.

Tobacco is a green, leafy plant in warms climates. After it is picked, it is dried, ground

up, and used in different ways as,

Cigarette Pipe or Cigar

Chewing Tobacco (smokeless tobacco or chewing tobacco)

Snuffed Tobacco (sniffed through the nose)

More than 100 countries grow tobacco. China grows the most, then the USA, Brazil,

India, Zimbabwe and Turkey. Tobacco thrives in poorer soils, providing farmers with a

welcome alternative crop. In many cases, it provides a higher income than any other

smallholder crop. It integrates well into environmentally friendly crop rotations,

benefiting subsequent crops like maize. (source internet)

HISTORY OF TOBACCO

Tobacco has a long history in the America. The Indians of Mexico engravings show

tobacco use. These drawings date back to somewhere between 600 to 900 A.D. tobacco

was grown by Americans Indians before the Europeans came from England, Spain,

France and Italy to North America. Native Americans smoked tobacco through a pipe for

special religious and medical purposes. They did not smoke every day. Tobacco was

given to Christopher Columbus as a gift from the Americans Indians. The tobacco was

later taken back to Europe where it began to be cultivated all over the country. John Rolf

was the first European to cultivate a successful commercial crop in Virginia in 1612.

Tobacco in 1800s:

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Many people had begun using small amounts of tobacco. Some chewed it. Other

smoked it occasionally in a pipe, or they hand-rolled a cigarette or cigar. On the average,

people smoked about 40 cigarettes a year.

First commercial cigarettes:

The first commercial cigarettes were made in 1865 by Washington Duke on his 300-acre

farm in Raleigh, North Carolina America.

Tobacco in 1960:

In 1960s it was recognized as health hazard by the doctors. Soon after the Cigarette

companies were required to print surgeons warning on packs of cigarettes. In 1969

tobacco advertisement was banned on TV and Radio. But it did not take effect till 1971.

In 1964, there were 70 million smokers in the United States, and the tobacco industry

earned $8 billion a year. Pall Mall was the leading brand of cigarette in the United States

for the 1st half of the 60s, and then Winston-brand cigarettes led until the 70s.

Tobacco in 1970s:

Cigarettes have become the most heavily advertised product by this decade, with

Winston, Pall Mall, Marlboro and Kool being the leading brands. In 1972, Marlboro

became the best selling cigarette in the world, and subsequent introduced Marlboro

lights, which many mistakenly saw as a safer cigarette. Cigar consumption increased

as well, with Americans using 9 billion a year. A British study sales bring in more money

than it costs in health problems and disabilities.

Tobacco in 1980s:

The 1980s was a time of health awareness. However, tobacco still pervaded society. In

superman 2, Lois Lane (then a role model for teenage girls) begins smoke Marlboro

Lights. Philip Morris purchased 22 exposures of the brand in the movie.

Tobacco in 1900s:

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country. We have been supporting and contributing to various causes of national

interest. Educating growers in the latest techniques and technology in agriculture, a

forestation and free health care in designated areas are but a few examples.

Throughout these 62 years, our continuous investment in people, brands, technology,

innovation and the communities in which we operate has borne fruit in many ways. We

are deemed as a partner of choice by many, our Environmental, Health and Safety

standards are a source of inspiration for local companies, our industrial relations

practices have led and influenced local practices, and as a result of all these, our

managers are highly valued and sought after people in the Pakistani corporate world

based on the training and exposure we give them from very early on in their careers.

Suffice it to say that the history of the Pakistan Tobacco Company is closely linked withthe development and history of the areas in which we operate. Be it corporate practices,

social investments, advancements in agricultural techniques, or establishing new ways

of marketing and distribution, we have always been instrumental in establishing the

benchmarks against which others are measured.

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MISSION & VISION STATEMENT

VISION

1 st Choice for everyone

MISSION

To transform PTC to perform

with he speed, Flexibility and Enterprising spirit of anInnovative consumer focused

Dare to be Different



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MAJOR PLAYERS IN PAKISTANS MARKET

The major players involved in the manufacture of finished goods are as following.

Pakistan tobacco company

Lakson tobacco company

Mardanwala

International cigarette Industry

Of these firms Pakistan tobacco company is the market leader with Lakson tobacco

company in second place.

PRODUCT

PTC has always considered it-selves a consumer-focused company. They aim to offeraproduct that excels in all aspects and exceeds the expectations of the consumer. In this

section, you will find the story of our brands and their origins. PTC has particular

emphasis on its five national drive brands.

Benson & Hedges:

In 1873, Richard Benson & William Hedges started a partnership in London. From the

very start, the idea was to make Benson & Hedges a style statement, which is why the

business started from Londons fashionable West End. PTC launched Benson & Hedgesin Pakistan in March 2003. Made with the finest hand picked golden Virginia tobacco

from across three continents, the brand is packed with perfection to seal its freshness.

The objective of introducing this brand is to establish the locally manufactured B&H

Lights as the most preferred offer amongst consumers, in the premium lights segment

and to add image to the B&H family by offering a wider product range. It was launched in

the three metros of Karachi, Lahore and Islamabad/ Rawalpindi.

JOHN PLAYER GOLD LEAF:



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The story of John Player Gold Leaf has to start from the story of its founder, John Player.

An enterprising businessman, John Player started a small tobacco selling business in

1877 and turned it into a thriving cigarette company, John Player and Sons.

With a distinct lifebuoy and sailor trademark, John Player Gold Leaf has an identity

entrenched in sailing and maritime adventure. Thus staying true to John Players very

first big brand -Players Gold Leaf Navy Cut cigarettes. Gold leaf is the key value and

volume contributor for PTC. It remains the most aspire brand in Pakistan. From 2000,

the brand is showing continuously growth.

Capstan:

Capstan has a rich heritage, originating in Britain in the 19th century. The brand was

created under the auspices of W.D. & H.O. WILLS at Bristol and London. Capstan has

grown by leaps and bounds to become the fastest growing brand of Pakistan Tobacco

Company (PTC) in the year 2001, recording a staggering growth rate of 104%,

overtaking sales volume of the major competitive brand in the early part of the year, andconsistently outselling it throughout.

Gold Flake:

Gold Flake, like many of our brands, also boasts its origins at W.D. & H.O. WILLS where

it was a premium brand around the end of the 19th century. Launched in 1982, in a 'soft

cup' packaging, the brand took off when it was repositioned in the value for money

segment and later a 'hinge lid' variant was introduced in 2000. Gold Flake is PTCs

largest brand in volume terms and is also a significant contributor towards the valueshare. A highly successful pack design change in 2004, soon after the new pack was



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lunched in the market and Gold Flake smokers accept the new design of the pack, at

this point an aggressive promotion in the market that would ensure the maximum

exposure of competition smokers to the new pack. There are three new variants were

added into the family; Gold Flake 14HL, Gold Flake 10HL and Gold Flake 10SC, in order

to offer the consumers a wider choice.

Wills King:

WILLS takes its name from the heritage of one of the original Imperial Tobacco

Company families: the Wills Brothers of London. Wills is also a well known brand in

Pakistan.

Embassy:

The third leading volume brand in Pakistan is most popular in the Punjab where it enjoys

a leading position due to its equity and loyalty. Embassy continued its growth in the year

2001fortifying its position in the market. The brand registered a growth of 3% over 2000.

Major focus during the year remained on the introduction of more consumer relevant

packaging variants. In the 3rd quarter of 2001 the brand family was extended with the

introduction of Embassy filter 16ss pack followed by Embassy kings 14HL variant. With

the launch of these variants, the family now offers more choice to its consumer at

affordable price.



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STRUCTURE HIRERICHY OF PTC



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ROLE OF RM



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To develop and implement a Regional Trade Marketing and Distribution plan in line with

the National Plan keeping into account the National objectives of the brand, volume and

value share. These objectives are to be pursued and achieved through the most

effective and efficient utilization of material and human resources. Besides this he is also

to proactively act as a Sharper for making his region ready for the new regime of

marketing in the Wake of New Marketing Standards.

The Regional Managers Report to the Head of Trade Marketing and Distribution.

Four Pillars of PTC:

Growth..............................................................In terms of Value and Volume

Production..................................................................Of high quality productsResponsibility...................................Prove to work in a controversial industry

Winning Organisation....................................One team one dream all for one

Introduction with the Regional Office Staff :

Mr. Naeem Bhatti................................................................Sales Promotion Co-ordinator

Mr. M. Naeem.......................................................................Contingent Fund Accountant

Mr. Masood....................................................................................................Data Analyst

Resources :

Multan Region is further divided into four Areas. Each area has an Area Manager who

reports to the RM. These areas are:

Multan...........................................................................................................Ali Raza (AM)

Sahiwal..............................................................................................Ahmad Ahsaan (AM)

Bahawalpur...............................................................................................Asghar Ali (AM)

DG. Khan................................................................................ Sajid Zarar(Area Incharge)

Volume and Shares: National Regional

Total Industry Volume per Month (Million Sticks)......................5814.00 1523.00

Total Volume of PTC (Million Sticks)..........................................2254.00 518.00

Market Share PTC.......................................................................38.77% 34.04%

Market Share LTC.......................................................................38.28% 33.35%

Market Share Others (Mardanwala Brands)...............................20.96% 32.09%

Market Share ITB (Imported/Smuggled Brands)........................01.99% 00.51%



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Share of PTC Brands (Own Volume): National Regional

Dunhill (Premium Category)..

Benson & Hedges (Premium Category).....................................00.10% 00.10%

John Player Gold Leaf (High Category)......................................17.90% 28.90%

Capstan Original (Medium Category).........................................12.00% 13.00%

Wills (Kings and International) - Medium Category....................04.00% 4.00%

Gold Flake (Low Category).........................................................48.00% 40.00%

Embassy (Low Category)............................................................18.00% 14.00%

ROLE OF AM

To develop and implement Trade Marketing and Distribution Plans and Strategies for thearea, in line with companys trade marketing and distribution strategies on brands,

volume, market / value share and coverage objectives to achieve the overall mission.

ROLE OF TMO & AREA TEAM

To assist the AM in the implementation of all assigned TM&D activities in the area in the

most efficient and effective way. Team members also carry out actions to achieve SOP

and merchandizing objectives along with the distributions human and financial resource

management.

TRADE MARKETING & DISTRIBUTION (TM&D):

TM&D Mission:

Reach our target customers in the most efficient and effective way by becoming

benchmark Suppliers to the trade within strategic channel in every market where we do

business.

Critical Success Factors (CSFs):

There are six critical success factors for the TM&D team and each factor has its own

specific activities:

1. Strategy and Planning2. Supply Chain Management

3. Resource Management



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Area

Manager

TMOVehari

TMOKhanewal

TMOMultan

TMOKabirwala

TMOMuz. Garh

4. POP Management (Retail

Marketing)

5. Account Management

6. Information Management

AREA STRUCTURE & DISTRIBUTION SETUP

SALESMAN ATTACHMENT (DSD & VDSD)

Role of Salesman:

Salesmen reports to Field Sales Officer. Matriculate, preferably Intermediate degree holder with

good communication and selling skills.

The core responsibility of salesman is to get order from the outlets and to deliver the stockrequirement in line with the TM&D instructions. Salesmen build excellent business relations with

the shopkeepers to get optimum benefit from trade. Salesmen deliver stocks to the outlets by

following the Nine Steps of Call. Moreover, sales team is also responsible for providing after

sales service in case of any complaint.

NINE STEPS OF CALL

It is important for each Trade Marketing representative to understand and value the NINE

STEPS of call as one of the critical tool to accomplish their roles. These steps provide a logical



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sequence to the functions, a representative must perform during every outlet visit to ensure that

they meet their requirements and the call time is optimized.

1. Preparation

2. Approach

3. Stock Check

4. Presentation

5. Close

6. In-store marketing/merchandizing

7. Consumer Contact

8. Administration

9. Evaluation

SALES TARGET TO THE SALESMAN

Sales targets are assigned to the salesmen on the basis of the Sales Operational Plan (SOP)

given to distributors by the section TMO.

CUSTOMER RELATIONSHIP MANAGEMENT

Salesmen usually have very good relations with the trade, which they have developed overtime.

The important factor is achieving the portraying behaviour, guiding the retailer in his

business/investment, informing them about company upcoming plan like promotions, budgets,

shortages, etc. Moreover, the regularity of a salesman is very critical in developing good

relations with a particular retailer. Most of the salesmen even have family terms with many of

retailers which add to their best performance.

MAJOR DOCUMENTS OF DISTRIBUTION

SD 20: (Stock Register)

As per the legal requirements of Govt. of Pakistan, Stock Register (SD-20) is maintained by thedistributors on daily basis. This document is maintained by all the distributors of Pakistan

Tobacco Company Limited indiscriminately.

It Shows:

SKU wise sales volumes

Split of DD, VDD, WS and Village Wholesales

Total stock available at month start

Stock received during the month

On hand stock (at day/month end)



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Scheme-sale is also recorded separately during the promotion/TO.

SD 9: (Annual Marketing Information Register)

This document is also maintained by all the distributors of Pakistan Tobacco Company Limited.

It tells:

Market volume/universe/coverage

Village coverage and productivity

Secondary sales volumes

Accumulated sales trends and brand wise sales trends

Competition activities

Own promotions and activities

Stock procurements

TRADE-MARKETING OFFICER ATTACHMENT

Role Profile of TMO

To develop and execute a territory Trade Marketing and Distribution Plan that meets brand,

volume, merchandizing and promotional objectives for TMO focused outlets, through the most

efficient and effective utilization of time and materials in order to achieve area trade marketing

objectives. Other important dimensions of TMO's job are:

Distribution Management

Merchandizing Selection and Placement

Cycle Activity Execution

Administration of Record and Stock

TMO-200 Outlets Visit

SP Management

FSO Management

Wholesale Management

On Job Training of Field Force

Promotion Communication

Development of Good Relations with Trade

Market Intelligence



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Planning and Execution of all Activities Relating to TM&D etc.

Journey Planning

It is also called monthly activity plan of TMO which is approved by the area manager. These

monthly activities are divided into following main objectives:

TMO-200 outlets

SP contact

DSD contact

Rural area visit

Whole sale visit

Overall distribution/distributor management

DISTRIBUTION STRUCTURE

Distributor Resource Deployment:

Effective Resource Deployment and Proper Management is one of the Critical Success Factor

of TM&D plan for TMO. It is TMOs responsibility to effectively manage human and financial

resources of a distributor and to utilize these resources in the best interest of PTC in the most

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TMO

DISTRIBUTORSP - U

FSO Godown

SP - R

Accounts

Department

Urban Salesmen

(DSDs)

Rural Salesmen

(VDSDs)

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efficient way to achieve the set goals/targets. It also includes activities like target market

coverage plan through rationally prepared salesmen beats.

Route Shipment Planning:

TMOs send the distributors lifting plan to the area office considering the estimated requirement

of the month. Then Warehouse Executives prepare and communicate route shipment plan to

TMOs keeping in view the SOP and available resources. Goods are generally sent to the

distributors on receipt of one day advance payment. It is TMOs job to ensure remittance, one

day prior to the planned route shipment date.

Urban & Rural Coverage:

Urban coverage through the DSDs is usually planned on twice or thrice weekly service. But the

rural coverage is generally made on twice or once weekly basis.

Merchandising Selection and Placement:Merchandising process starts with the availability of funds/budget. To merchandize an outlet

following criteria must be followed:

Selection by TMO or recommendation by field staff

50 meter clause implementation

High visit frequency/percentage of ASU 30

Selection of material in-store/on-store

Good retailer behaviour and relations with PTC staff

Retailer agreed on written contract for safety, protection & maintenance of

merchandising material.

DRP (Distributor Resource Plan):

The arrangements to carry out the decided route plan. TMOs manage and monitor the stock

lifting of distributors to avoid any deviation from the route plan, regularly. Also appropriate

measures are taken to carry out the route plan with cent percent accuracy.

SALE PROMOTER ATTACHMENTRole of Sales Promoter:

Sales Promoters report to the section Trade Marketing Officer.

The core function of SP is Communication of product and promotion both. Out of Stock

tracking/topping up, display, merchandising maintenance, consumer contacts, market

intelligence, demand Generation, POP, etc are other important aspects of sales promoters job.

We learned and performed sales promotion activities with the Sales promoters of Bahawalpur

and Multan Areas in the markets of local and in other rural markets

Sales Promotion Activities:



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We participated in the implementation and execution of promotional activity Capstain Original

in the Bahawalpur and in Multan.

Brand = Capstain Original

Activities = Trade & Consumer

Promotion.

PROMOTION OBJECTIVES

To accelerate brand growth

To strike Morven Gold's and Red & White consumer

Temporary POP Placement: (Point of Purchase)

Temporary POP means the temporary merchandising material placed at sale points/outlets to

communicate the brand or promotion. Commonly used Temp POP material includes:

Posters

Stickers

Buntings

Wobblers

Mobiles

Shelf Talkers

Sun Shades etc.

These are allocated to SPs with certain guidelines of placement. Temporary POP material is

always positioned inside or outside the outlet at prominent places to get maximum attention of

the consumer.

.

ATTACHMENT WITH SPC

We spent our full day with Mr. Naeem Bhatti

Role of SPC

Sales Promotion Co-ordinator reports to the Regional Manager. The role is to develop and

execute promotion plans through TMOs, TMEs, HoReCas and key accounts, in line with the

promotion strategy in conjunction with the cycle planning process and to ensure maximum

benefit out of BTL muscle and advancement of communication objectives as part of cycle plan

implementation.



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Promotion Planning and Execution:

SPC plans promotion with the co-ordination of the regional marketing team keeping in view theavailable budget, objectives and type of promotion required.

After the finalisation of promotion mechanics the cycle plan for execution is made. Suppliers are

asked to provide quotations. On receipt of POS, instructions are cascaded for the

implementation and execution.

TM&D team fully participates in the communication of the promotion. Prior to communicate

promotion in the market all SPs, FSOs and salesmen are briefed accordingly, all aspect of

promotion/offer are re-discussed for better understanding to the field force.

Ware House Executive Attachment

We visited Ware House located at Bahawalpur and Multan

Role of Warehouse Executive:

Ware house executive is accountable for the supply chain management of stocks from area

warehouse to the distributor.

Warehouse executives other responsibilities are inventory control, system administration, route

planning, 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 customers.

Warehouse Executive is assisted by Warehouse In-charge and an Excise Officer in the

routine operations. Area warehouses are controlled by Production & Supply Chain Department.

Remit Plus:

Local distributors are also called remit plus. They get the stock on the same day of remittance of

invoice value in collection account of bank on their own arranged transport. PTC pays them the

agreed ICA per M. Transport expenses (ICA) are claimed on monthly basis.

Collect Plus:



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Stock is provided to the collect plus distributors on the next day of remittance on PTC arranged

transport. Route plan is forwarded to all markets every month.

If distributor fails to remit the invoice amount in the bank one day prior, the company will not be

responsible for providing the stock on company arranged transport. In that case, missed routes

transportation will be the responsibility of distributor.

Supply Chain:

PTC supply chain consists of the following departments in the same mentioned sequence:



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SAP (System Application Product):

System application product is a highly advanced computer based programme. It is only used by

few multinational companies in Pakistan. PTC head office, factories, regional offices, area

offices and ware houses are interlinked with this programme.

It facilitates the monitoring of all the activities relating to finance, budget, production, supply,

merchandising, etc. in the most efficient and accurate way. The use of SAP in warehouse

operations is as:

Internship Report

Supply Chain

Seed/Leaf Department

Production Department

Material Management Department

Primary Manufacturing Department

Stick Manufacturing Department

Factory Warehouse

Area Warehouse

Sales to End Consumers

Supply to Wholesale and Retail

Distributor Warehouse

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ADMINISTRATIVE OFFICER ATTACHMENT

Role of Administrative Officer:

To maintain and up-keep office records & returns according to the specified standards and

retention schedule. To ensure data security and safety as per Company set guidelines. To carry

out all the necessary secretarial works (i.e. letters, returns, telephone/fax, photocopy etc). And

to support all the routine activities of Regional Office.

Other Major Responsibilities:

Office Staff Administration (Peon, Security Guard, Sweeper)

Assist RM in completion of every day assignments

Equipment maintenance

Premises maintenance

EH&S Overview - (Environment, Health & Safety):

EH&S Symbol:

The symbol of EH&S is based on the Leonardo da Vinci drawing called Petruvian Man, which

shows the symmetry of the human body. This image is often used to indicate health and

environment awareness. BAT has adapted it by showing the globe behind the figure to

represent BAT's global business.

PTCs EH&S Policy to:

Provide and maintain safe and healthy working environment including use of cleanertechnologies and safe systems of work for all its employees and non company personnel on

company premises.

COMMUNICATION CO-ORDINATOR ATTACHMENT

We spent full day with Cc Mr. Jahanzaib at Bahawalpur and M,r. Ahad Khakwani at Multan



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Role of Communication Coordinator:

Cc is responsible for back check of BAs. He is to check the 20% consumer contacts as well .

He also manages the tour plan and Beats of BAs. Other tasks are as

Activity Planner of BAs

BAs Contact Report

Tracker

Monthly brand wise report

Total CC Summary

FCP of BAs

CC back check

CC pitch

Back Check of Log Books

There are 9 BAs are working in Bahawalpur and 17 BAs in Multan market working on BVS-1

and BVS-4

RCE (Regional Communication Executive) ATTACHMENT

I spent full day with RCE Mr. Fahad Gillani at Multan

Role of RCE (Regional Communication Executive)

RCE ensures 100% implementation of cycle instruction in-line with cycle brief given by HO. The

responsibilities of RCE are as following.

Resource Management:

CC (Communication Coordinator)

BAs (Brand Ambassador)

Target of Consumer Contacts:

Ensure the 100% target achievement

Quality Consumer Contacts:

20% consumer contacts are checked by Communication Coordinator of RCE.



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Third party has been hired to have a back check of consumer contacts. Slab system been

maintained and the incentive to Brand Ambassadors is given on Good Quality Contacts

Percentage.

PROJECT SKYWALKER

RCE told us about project Skywalker and for the completion of our project he attached us with

Contact Plus team for 3 weeks.

One to One Communication

One to One communication consists of direct connections with carefully targeted individuals

consumers to obtain an immediate response and to build customers relationships. Direct

marketers communicate directly with consumers on one to one basis. One to one

communication is a medium or marketing channel for marketing the products that contains no

intermediaries

Types of One to One Communication

There are seven types of one to one communication which are as following.

1. Personal selling

2. Telephone marketing

3. Direct mail marketing

4. Catalog marketing

5. Direct response television marketing

6. Kiosk marketing



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7. Online marketing

1. Personal Selling

Personal selling involves two ways personal communication between sales people and

individual customers, which can be face to face, by telephone, through video or web

conferences, or by other means.

2. Telephone Marketing

In telephone marketing, telephone is used to sell directly to consumers. It has become major

direct marketing communication tool. Telemarketing provides many benefits, including

purchasing convenience and change in product service information.

3. Direct mail marketing

Direct mail marketing involves sending an offer, announcement, reminder, or other item to a

person at a particular address. This kind of marketing is through singles mailings that

include letters adds samples. Direct mail has proved successful in promoting all kinds of

products, from books, magazines subscriptions, clothing, foods and industrial products.

4. Catalog Marketing

A kind of marketing through print, video or electronic catalogs that are mailed to selected

consumers, made available in stores presented online or providing through hand.

5. Direct Response Television Marketing

Marketing via television, including direct response television advertising and home shopping

channel.

6. Kiosk Marketing

Some companies place information desks and ordering machines called Kiosk which can

be in stores, airports and other locations.

7. Online Maeketing

Online marketing is a very good communication tool by which companies advertise their

Product through internet and through online marketing buying and selling are also takes

place.



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IMPORTANCE OF ONE-TO-ONE COMMUNICATION

The importance of one to one communication is very vast. Now a days, companies are using

one to one communication to reach carefully targeted consumers more efficiently and to buildstronger, more personal one to one relationships with them.

Tobacco Bans:

According to printing rule SRO 1219(1)/2008 health warning took place on the front of cigarette

Packs and it would have prominent colour contrast. Other tobacco bans are as follows,

All kind of ATL activities.

Limitations in BTL activities.

50 meter Clause

Consumer Promotions

All kind of on-store such as Fascias, Tube-shades, Banners etc.

Consumer contacts with incentives

Branded key chains, lighter other promo-material which could motivate the

tobacco smoking.

Smoking has been suppressed in hotels, restaurants and public places. Promotion health

warning took place on the front of cigarette packs. ATL activities were restricted. On-store

merchandising & consumer promotion were banned. While consumer contacts were given the

limitations were supposed to be done any incentive.

IMPORTANCE OF ONE-TO-ONE COMMUNICATION IN DARKMARKET



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After the restrictions imposed by local Government and WHO on advertisement of cigarettes, in

this dark market where all the ATL activities are banned so cigarettes companies have only one

option to advertise their product through one to one communication.

Through the one to one communication you can easily transfer your message into consumer

mind. In the dark market where every type of promotional activities ATL are banned and BTL

are limited so in this scenario cigarette companies can hire the Brand Ambassador for their

brand promotional activities. Now a days there is a trend towards more narrowly targeted and

focus on specific consumers, so in this scenario one to one communication can play a very vital

role in smoking industry to capture the end consumers.

PURPOSE OF STARTING PROJECT SKY WALKER

After the restrictions imposed by the Government on advertisement of cigarettes as mentioned

above so, in this dark scenario PTC got only one option to advertise their brands through one to

one communication with end users.

Overview of Skywalkers Project

PTC hired field force from third party named Contact Plus and HRSG for the Skywalkers

project. For the Skywalkers project, there are 52 Brand Ambassadors working in Multan and 9

supervisors are supervising them. These 9 supervisors daily report to AM Multan and on daily

basis AM (Project Skywalker) report to RM (Project Skywalker). For the implementation of plan

RM (Project Skywalker) coordinates with RCE (PTC).The purpose of Skywalkers project is to give awareness to the people about the repositioning of

brand Capstain (original). PTC cut off the price of Capstain and 52 Brand Ambassadors make

consumer aware about the new price.

SKY WALKER STRUCTURE HIRERICHY


RM (Sky walker)

Coordinator

AM (BWP) AM (Multan) AM (Veharri) AM (Sahiwal)

RCE (PTC)

Supervisors

BAs

CC

BAs


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Schedule of project Skywalker

1st week----------------------------------BAs

2nd week---------------------------------Supervisor

3rd week

First two days----------------------------AM (project Skywalker)

Last three days--------------------------RM (project Skywalker)

BAs Attachment

As per induction plan we spent our 1st week with BAs. we visited many areas of Multan with

BAs. During internship period we fully participated in the consumer contact exercise of BVS-



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4(Capstan original) brand. we learned that it is a very healthy exercise to gain attention of the

end consumer.

Roles of BAs

BA daily report to team supervisor. It is the duty of every BA to achieve the target of consumer

contacts.

BA---------------------------------------target of 30 consumer contacts daily

There are 52 BAs are working in Multan.

Consumer Contacts:

This terminology is used where one-to-one contact with the consumer of competition brand is

made. The consumer of competition is offered an own brand of same value/profile for trial. To

convince the contact and to generate trial, keeping in view the high prestige of brand and

company, below are the few steps guided to perform in the same manner:

Introduce yourself and company

Mention best known brands

Ask if the contact has time and willing to talk

Find out if the contact has purchased cigarettes for self consumption or

for others

Then tell the consumer about the brand.

Documents of BAs:

Swap sheet

Tracker sheet



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Route plan

Data book

Other responsibilities of BAs

Route riding

Pack swapping

Target Achievement

Trade relationships

Pack selling

Quality of 121 & motivation

SUPERVISOR ATTACHMENT

As per induction plan we spent our 2nd week with Supervisor who leads a team of 6 or 7 BAs.

Supervisors daily report to AM of Skywalker Project. we visited many areas of Multan with

Supervisor and learned about how to manage the stock, how to make supervisor report, checks

and control and field force management.

Roles of supervisor

Supervisor is responsible for back check of BAs. He is to check the 20% consumer contacts as

well. He also manages the tour plan and Beats of BAs. Other tasks are as

Activity Planner of BAs

BAs Contact Report

Tracker



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Monthly brand wise report

FCP of BAs

Checks & Control

Stock Management

There are 9 supervisor are working in Multan.

AREA MANAGER (SKY WALKER PROJECT) ATTACHMENT

As per induction plan we spent first two days of 3rd week with Area Manager Mr. Javaid of

Skywalker Project. We visited many areas of Multan with AM and learned how to control the

field force, checks & controls and how give report to RM. AM follows the FCP which he receives

from PTC. AM of Skywalker daily report to Regional Manager of Skywalker Project.

Roles of AM (Skywalker Project)

AM is responsible for check of the Supervisors team as per fix plan. The other tasks of AM are

as

Team management

Reporting

Checks & Controls

Market surprise Visits



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REGIONAL MANAGER (SKY WALKER PROJECT) ATTACHMENT

As per induction plan we spent last three days of 3rd week with Regional Manager Mr. Munir

Ahmad of Skywalker Project. He told us about field force management, team building and

motivation, and resource over view. RM reports to contact plus head office on daily bases.

Resource Deployment

There are three steps involved in resource Deployment which are as following

Hiring

Training

Deployment

Resource overview

The total resource is based on reporting. There are three types of reports that RM receive.

Daily Progress Report

Every AM send this report to RM about its daily Progress it includes

Quantity of Exchange Packs

Supervisor Progress

Weekly Progress Report

Every Supervisor sends this report to RM on weekly basis it includes

Supervisor Overview

Detail of supervisor Visits

Monthly Progress Report



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Every Supervisor make the report of BAs and send this report to RM after every month it

includes

BAs Productivity

BAs attendance sheet

Turn Over Management

Consumer engagement is very tough job so thats why some employees left their job due to

work load so it is the duty of AM and RM to motivate their subordinates regularly and by offeringperformance based bonuses to reduce the turnover.

Rate of turn over

There is very minute percentage of turnover which is only 5%.

Team Building & Motivation

Team Building:

There are two ways to build team;

1. Take reference from the existing field force

2. Team can be build by;

Hiring

Training

Deployment

Motivation:



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This is known as PMD. The bale of tobacco is converted into blend in this

department. This department creates differ types of blend with different ratios. The stem and

lamina of the tobacco are treated into blend in this department. The required moisture is added

into tobacco and flavors are added into this. Flavor mixing is known as casing process. The

ready tobacco is known as Cut Tobacco. This is stored in cut tobacco store. In addition,

through Automatically 90seconds are taken to fill a machine. According to Product Steward

Policy, we shall design our products and processes in conformance the principles of

sustainable development for the betterment to the environment and society.

SECONDARY MANUFACTURING DEPARTMENT

This department is further divided into two departments.

Cigarette Making Department.

Cigarette Packing Department.

CIGARETTE MAKING DEPARTMENT

In this department, the cut tobacco is filled in the cigarettes. The filter rods come

from the Filter Rods Department and they are combined to prepare the cigarettes. There are

different types of cigarette making machines high and low machines. Tow Loga Machines,

which have a capacity of manufacturing 850 cigarettes per minute and one machine, which

have a capacity of manufacturing 8000 cigarettes per minute and two machines, which have

7500 capacities per minute. Eight Mark-8 machines running in this department, which have

capacity of manufacturing 2000 cigarettes per minute. Loga machine run 24 hours.

CIGARETTE PACKING DEPARTMENTThe cigarettes come in the ready form to be packed here in his section. Deferent

machines are used for the purpose. The material management department provides the packing

material required in this department. The cigarettes are first packed in packets, and then these

packets are put into the outer, which are further packed in the big cartons known as the CBCs.

From the packing department, the cigarettes are transferred to the shipping godowns from

where they are shipped out of the factory.

According to the speed, there are four types of packing machines running in the

Cigarette Packing Department. GDX2, which have capacity of 380 packets per minute. Anothermachine is a soft Cup his capacity 160 or 180 packet per minutes.



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HUMAN RESOURCE DEPARTMENT

This department is also known asEMPLOYEE RELATION DEPARTMENT. Department dealswith the employees of the FACTORY. Flowing are the main functions.

Maintains industrial relation between Labor management and Employer.

Binomial agreement relation between Labor management and Employer.

Maintain worker services record.

Worker Training & Promotion.

Legal obligation on behalf of Labor and management.

QUALITY DEPARTMENT

Quality excellence is the foundation for every management, and key for GOAL of

CUSTOMERS SATISFACTION.

Consistently provide product and services that meet the quality expectations of customer.

Actively pursue ever-improving quality through programs that enable each employee to do his or

her job right the first time.

INFORMATION TECHNOLOGY DEPARTMENT

This department is also known as Management Services Department. It connects

all offices and factories of the company with one computer network function. Following are the

some functions of the IT department:

IT risk analysis

Backup cycle

IT system standing instruction

System development methodology

Request for system modifications

Fixed assets movement

Email access policy-MEEG (Managed External Email Gateway).

Internet browser access request/policy

IT logs



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EH&S DEPARTMENT

This department is known as Environment Health and Safety Department. This department

provides and maintains safe and healthy working environment including use of cleaner

technologies and safe system of work for all its employees and non-company personnel on the

company premises. Pay due regard to all impacts of its activities on the physical environment.

Comply withal applicable national laws, regulations, and BAT (British American Tobacco) policy

pertaining to environment health and safety. Establish procedures for regularly assessing and

reviewing the EH&S impact of its present and future activities. Adopt a pro-active role to

continually identify cost-effective measures, which it can take to safeguard the health and safety

of its employees, non-company personnel on company premises, the neighboring communities

and the physical environment.

SECURITY DEPARTMENT

To ensure that the company property, assets, material & information are protected

from loss, criminal activity, fire damage and other forms form of waste. Thus ensuring that men

are working under congenial environment without any fear, terrorism and sabotage activities are

the functions of the security department. There are seven permanent employees and 44 are oncontract basis. The contract is with the Phoenix Company

ENGINEERING DEPARTMENT

All goods must be checked physically by counting/weighing/ measuring. All receipts

form outside sources other than imported spare will be inspected ensuring that their quality is

according to the specification.

All goods received from outside sources must be detailed on Goods ReceivingRegister immediately on the day of receipt. This register forms the only record of goods within

the factory an interim period until the goods are inspected and finally G.R. sheeted. G.R.

Register will therefore, always be stored overnight in the safe in shift Managers

Office/Main Engineering Office along with Engineering Stores keys.

In the event of goods being short, excess or damaged as compared to delivery

Challan / invoices, an endorsement will be made in red against the items on the G.R. Register

and the suppliers will be advised accordingly



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STORE RETURNS

New or useable machine spares received from Factory Departments should be accompanied by

Store Return (R 15). New or useable must be recorded on Store Return for new and used

spares respectively to enable correct valuation by the system for used spares i.e. 10% of the

value of stock. For new and reconditioned items the Finance Department will report values.

Training and development

We recognize that getting the right start is crucial to building a successful career. This is how we

approach your early training and career development

Managerial skills

Business Awareness

Performance Appraisal

MARKETING DEPARTMENT

The consumer is at the centre of our business. Marketing in the tobacco industry requires skills

beyond the demands of other products. The ability to differentiate our marketing initiatives, to

manage productive and profitable relationships with our key accounts, to integrate strategies

above and below-the-line and to innovate while always marketing responsibly are the

fundamentals of the marketing challenge

SWOT ANALYSIS OF COMPANY

STRENGTHS

Continuous learning and improvement.

Sustainable growth.

Environmental standards achievement.

Market leadership in the world.

Being beneficial to the community (Corporate Social Responsibility)

Diversified workforce and environment.

Technologically advanced machinery and equipments.

Good salaries packages. Focus on health and safety on the company premises.



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Training and development of its employees.

WEAKNESSES

Salaries difference between workers who work more and the one who put minimum efforts.

Technological advancement would decrease the workforce and unemployment will increase.

Very minimum marketing as compare to its competitors.

Workers are always under threat because of downsizing.

Improper distribution of work

OPPORTUNITIES

Greater opportunity of promoting lower brands in rural region.

PTC has the potential to further improve the cost reduction method.

Create a better work environment in GLT department because of more hazards in this

department.

Lowering the downsizing will create a good image in the eye of regulatory authorities and

government.

Focus on its key brands i.e. high growth like Gold Flack this years growth was around 27%. Export of premium brands

THREATS

Some of its competitors are also producing high quality brands like Marlboro by Lakson.

Internationally some countries are continuously promoting anti-smoking slogans like the ban

of smoking in Bhutan in 2002.

Better marketing campaigns by rivals.

Their well-established brands are highly copied by some local manufacturer.

The political, economic situation is not stable in Pakistan.

Limitation of their product,

Decline in tobacco growth

PEST ANALYSIS

Political



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Pakistans political situations have always been in fluctuation. Even then PTC is long since

contributing in the countrys wealth in terms of taxes and providing employment to hundreds of

people. Although it is never denied that tobacco is hazardous to health but PTCs aim is not to

create more customers but to provide quality of tobacco to those who are already addicted.

Marketing Standards: PTC has long accepted that smoking is risky.

Its business is not about persuading people to smoke; it is about offering

quality brands to adults who have already taken the decision to smoke.

Economical

As a company it understands that its roots are firmly embedded with the nations, it has been

the part of industrial development in the country. Pakistan tobacco has maintained its growth

momentum during the years scaled new heights with the achievement of millstone and made

progress in the every facets of its business. PTC has contributed RS 26,472 m in year 2007 in

the form of government levies and taxes which is the indicator of how PTC is contributing in the

economic development of the country along with the job creation and installation of advanced

and sophisticated machinery and equipments.

Sociological

PTCs marketing is not designed to sell smoking. It is marketing in a long established, mature

product category, where people already know what the basic product is. There would be no

commercial sense in trying to market to informed consumers who do not want the product. Its

marketing is about its brands: retaining the loyalty of the consumers to the brands, and winning

consumers from competing brands. Wherever British American Tobacco markets, its takes the

greatest care to ensure that its advertising and promotion complies with local laws, regulationsand voluntary agreements. As a company with long international traditions and roots, PTC is

also

sensitive to local customs and cultures. It is working with other companies in the tobacco

industry to establish a common basis for clearly understood conduct, which would set the

baseline for acceptable tobacco marketing worldwide. Following are the key features of the

Voluntary Code of Conduct:

No TV/Radio advertising of the products before 2130 hrs.



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No advertising designed to appeal specifically to minors (


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Loans and advances 48,598 65,917Short term prepayments 72,483 105,728Other receivables 88,147 246,675Cash and bank balances 47,874 69,172

6,242,528 4,739,86712,226,86

1

10,395,04

1Share Capital & ReservesShare Capital 2,554,938 2,554,938Revenue Reserves 1,705,296 1,053,393

Non Current LiabilitiesRetirement Benefits 739,133Deferred Taxation 1,109,847 836,939

Current LiabilitiesTrade and other payables 5,037,469 4,324,704

Accrued interest / markup 27,659 10,354Short term running finance 1,300,837 572,397Income tax liability 490,815 303,183

6,856,780 5,210,63812,226,86

1

10,395,04

1

Profit and Loss Account

Net turnover

21,666,52

5

18,872,49

5

Cost of sales

13,442,06

6

11,595,73

6Gross Profit 8,224,459 7,276,759Selling and distribution expenses 2,246,014 1,933,364Administrative expenses 1,100,814 928,358Other operating income 226,499 60,551Other operating expenses 514,665 615,458Operating profit 4,589,465 3,860,130Finance income 102,826 59,600Finance cost 43,802 26,013Profit before income tax 4,648,489 3,893,717

Income tax expense 1,626,083 1,361,422Profit for the year 3,022,406 2,532,295



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HORIZONTAL ANALYSIS

FIRST CALENDE YEAR OF DATA 2008

LAST CALENDER YEAR OF DATA 2009

Balance Sheet 2009 2008

200

9

200

8

Non Current Assets

property plant & Equipment

5,952,10

8

5,599,75

8

106

%

100

%

Investment in Subsidiary Company 5,000 5,000

100

%

100

%

Long Term Loans 7,310 9,244 79%

100

%

Long Term Deposits and Prepayments 19,915 41,172 48%

100

%

Current Assets

Stockintrade5,765,367

4,059,063

142%

100%

Stores and spares 218,375 190,646

115

%

100

%

Trade debts 1,684 2,666 63%

100

%

Loans and advances 48,598 65,917 74%

100

%

Short term prepayments 72,483 105,728 69%

100

%Other receivables 88,147 246,675 36% 100



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%

Cash and bank balances 47,874 69,172 69%

100

%6,242,52

8

4,739,86

7

132

%

100

%12,226,8

61

10,395,0

41

118

%

100

%

Share Capital & Reserves

Share Capital

2,554,93

8

2,554,93

8

100

%

100

%

Revenue Reserves

1,705,29

6

1,053,39

3

162

%

100

%

Non Current Liabilities

100

%

Retirement Benefits 739,133 0%

100

%

Deferred Taxation

1,109,84

7 836,939

133

%

100

%

Current Liabilities

Trade and other payables

5,037,46

9

4,324,70

4

116

%

100

%

Accrued interest / markup 27,659 10,354

267

%

100

%

Short term running finance

1,300,83

7 572,397

227

%

100

%

Income tax liability 490,815 303,183

162

%

100

%6,856,78

0

5,210,63

8

132

%

100

%12,226,8

61

10,395,0

41

118

%

100

%



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Net turnover

21,666,5

25

18,872,4

95

115

%

100

%

Cost of sales

13,442,0

66

11,595,7

36

116

%

100

%

Gross Profit

8,224,45

9

7,276,75

9

113

%

100

%

Selling and distribution expenses

2,246,01

4

1,933,36

4

116

%

100

%

Administrative expenses

1,100,81

4 928,358

119

%

100

%

Other operating income 226,499 60,551

374

%

100

%

Other operating expenses 514,665 615,458 84%

100

%

Operating profit

4,589,46

5

3,860,13

0

119

%

100

%

Finance income 102,826 59,600

173

%

100

%

Finance cost 43,802 26,013

168

%

100

%

Profit before income tax

4,648,48

9

3,893,71

7

119

%

100

%

Income tax expense

1,626,08

3

1,361,42

2

119

%

100

%

Profit for the year

3,022,40

6

2,532,29

5

119

%

100

%



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VERTICAL ANALYSISFIRST CALENDE YEAR

OF DATA 2008LAST CALENDER YEAR

OF DATA 2009

Balance Sheet 2009 2008 2009 2008

Non Current Assets

property plant & Equipment 5,952,108 5,599,758 48.68% 53.87%Investment in Subsidiary

Company 5,000 5,000 0.04% 0.05%Long Term Loans 7,310 9,244 0.06% 0.09%Long Term Deposits and

Prepayments 19,915 41,172 0.16% 0.40%

Current Assets

Stockintrade 5,765,367 4,059,063 47.15% 39.05%

Stores and spares 218,375 190,646 1.79% 1.83%

Trade debts 1,684 2,666 0.01% 0.03%

Loans and advances 48,598 65,917 0.40% 0.63%

Short term prepayments 72,483 105,728 0.59% 1.02%Other receivables 88,147 246,675 0.72% 2.37%

Cash and bank balances 47,874 69,172 0.39% 0.67%

6,242,528 4,739,867 51.06% 45.60%

12,226,861 10,395,041

100.00

% 100.00%

Share Capital & Reserves

Share Capital 2,554,938 2,554,938 20.90% 24.58%

Revenue Reserves 1,705,296 1,053,393 13.95% 10.13%

Non Current Liabilities

Retirement Benefits 739,133 0.00% 7.11%

Deferred Taxation 1,109,847 836,939 9.08% 8.05%

Current Liabilities

Trade and other payables 5,037,469 4,324,704 41.20% 41.60%

Accrued interest / markup 27,659 10,354 0.23% 0.10%

Short term running finance 1,300,837 572,397 10.64% 5.51%

Income tax liability 490,815 303,183 4.01% 2.92%

6,856,780 5,210,638 56.08% 50.13%12,226,861 10,395,041 100.00 100.00%



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%


Net turnover

21,666,52

5

18,872,49

5 100% 100%

Cost of sales

13,442,06

6

11,595,73

6 62.04% 61.44%

Gross Profit 8,224,459 7,276,759 37.96% 38.56%Selling and distribution

expenses 2,246,014 1,933,364 10.37% 10.24%

Administrative expenses 1,100,814 928,358 5.08% 4.92%

Other operating income 226,499 60,551 1.05% 0.32%

Other operating expenses 514,665 615,458 2.38% 3.26%

Operating profit 4,589,465 3,860,130 21.18% 20.45%Finance income 102,826 59,600 0.47% 0.32%

Finance cost 43,802 26,013 0.20% 0.14%

Profit before income tax 4,648,489 3,893,717 21.45% 20.63%

Income tax expense 1,626,083 1,361,422 7.51% 7.21%

Profit for the year 3,022,406 2,532,295 13.95% 13.42%

RATIO ANALYSIS

LIQUIDITY RATIO



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CURRENT RATIO

CURRENTRATIO=CURRENTASSETS/CURRENT

LIABILITIES

CURRENT RATIO 2009 2008

(TIMES)

6242528/6856780= 0.91 4739867/5210638= 0.90

IN 2009, FOR THE PAYMENT OF 6856780 (C.L), COMPANY CURRENT RATIO IS 0.91 AT

6242528 CURRENT ASSETS.

IN 2008, FOR THE PAYMENT OF 5210638 (C.L), COMPANY CURRENT RATIO IS 0.90 AT

4739867 CURRENT ASSETS.

QUICK RATIO



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QUICK RATIO=CURRENT ASSETS-INVENTORY/CURRENT LIABILITIES

QUICK RATIO 2009 2008

(TIMES)

0.87 0.87

IN 2009,MOST LIQUIDATE ASSETS OF COMPANY IS 0.87 TIMES OF 6856780(C.L).IN 2008,MOST LIQUIDATE ASSETS OF COMPANY IS 0.87 TIMES OF 5210638 (C.L)



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ACTIVITY RATIO

AVEARAGE COLLECTION PERIOD

AVEARAGE COLLECTION PERIOD=RECIEVEABLE/ SALES/360AVRG. COLLECTION

PERIOD

2009 2008

1.46 4.70

IN 2009,FOR THE COLLECTION OF RECIEVEABLE ,THE REQUIRED TIME IS 1.46.

IN 2008,FOR THE COLLECTION OF RECIEVEABLE ,THE REQUIRED TIME IS 4.70.

RECIEVEABLE TURNOVER

RECIEVEABLE TURNOVER=SALES/RECIEVEABLE

RECIEVEABLE TURN OVER 2009 2008245.79 76.50

TOTAL ASSET TURNOVER

TOTAL ASSET TURNOVER=SALES/TOTAL ASSET

TOTAL ASSET TURN OVER 2009 20081.77 1.81



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PROFITIBILITY RATIO

GROSS PROFIT MARGIN

GROSS PROFIT MARGIN=GROSS PROFIT/ SALESX100GROSS PROFIT MARGIN 2009 2008

37.95% 38.55%

IN 2009, GROSS PROFIT MARGIN IS 37.95% WHILE IN 2007,GROSS PROFIT MARGIN IS

38.55%.

GROSS PROFIT MARGIN DECREASE BY 0.06% ACCORDING TO LAST YEAR(2008).



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NET PROFIT MARGIN

NET PROFIT MARGIN=NET PROFIT/SALESX100

NET PROFIT MARGIN 2009 20080.13% 0.13%

IN 2009,NET PROFIT MARGIN IS EQUAL TO THE LAST YEAR2008.



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RETURN ON INVESTMENT

RETURN ON INVESTMENT=NET PROFIT AFTER TAX/TOTAL ASSETS

RETURN ON INVESTMENT 2009 20080.24% 0.24%



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Conclusion

Pakistan Tobacco Company is part of a growing industry and the trends in the sales for the five

years studied have been positive. As said earlier the company is enjoying a major share of the

market through most of its brand being the market leader. Thus the company did not let go of

the opportunity of the trends in the market growth and started invested in new and improved

capital. The major competitors of the company are importing their finished goods stock from

their operations in other countries and are well-established companies too. PTC still enjoys the

control over the local market, but todays customer is more price conscious and if PTCs

competitors give competition through improved production facilitates and reduction in costs PTC

might not be able to transform to low cost production facilities in short span of time. Thus for the

last six years PTC has been investing in new tangible assets. To do so the company has been

taking advantage of long term loans and leasing. This has led to an increase in companys

financial expenses. The company also had to take short term loans to run day to day expenses

as most of its operative income is unstable and cannot be reliable for day to day expenses. The

need for short term financing also escalated due to increased financial expenses as a result of

long term borrowing. Thus short term financing also resulted in an increase in financial charges.

The company on the whole is a good venture for investing as it is showing a potential for growth

in the future. The investment into fixed assets during the previous years has lead to a growth in

sales. Thus as the firm comes out of its long term financing burden the interest expense for long

term financing will decrease. The company is also gaining reputation in South Asian marketsand with growth in production it will also be able to explore international markets. Thus the

growth in the markets catered by the company when will go international the sales revenue of

the company will grow significantly. But from an investors point of view the most important thing

to be considered is that the company is part of a highly taxed industry. This taxes and duties will

always take away a major part of companys income. On the other hand the company is also an

attractive prospect for financing institutions. The company has taken advantage of the long term

debt to grow and the investment from the company has shown positive results. Thus the

investment and growth are synonymous for the company. Therefore this puts the company in agood position to be able to pay back its long term obligations. As the company decides to go



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international in its operations the need for further growth will be very essential. Thus financial

institutions can keep their eye of PTC for long term financing with a high assurance for timely

payback of principal and interest payments.

RECOMMENDATIONS

1. To get the exact feedback, it should be the duty of Brand Ambassadors to fill upfeedback forms on the spot for regular users of capstain. Feedback forms should be having

MCQs regarding repositioned capstain.

2. Training sessions should be conducted on the topic of trade relationships on schedule

basis.

3. Motivational level of consumers could be increased by sending them thanking letters.

Through this process accuracy of Brand Ambassadors can also be checked.

4. Sales pitch of brand Ambassadors should be in a language according to particular

locations.

5. To avoid fake entries, honesty plays a vital role so, Brand Ambassadors honesty can be

raised by following these points.


Pakistan Tobacco Company

Feed Back Form

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Give financial benefits

Predefined career path

To cover up the loss that PTC is facing from illegal brands, they should train their brand

Ambassadors on quality assurance, so that they should know about original and illegal

brands

6. PTC should make outlets in different areas which only sell capstain original. For this a

person should be hired who act as a retailer and Brand Ambassador for the company.

7. To promote the brand, company should provide T-shirts to retailers and in response

retailers will be motivated to sell the company brand.

8. For attracting the consumers there should be placed beam lights which shows the brand

image on the floors.



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APPENDIX

1. Internship Letter