Presented by :

1. Faiza zahed

2. Mehwish

3. Shagufta

4. sidra zaidi PAKISTAN TABACCO

COMPANY

INTRODUCTION

Pakistan Tobacco Company was founded in 1947.the parent company of Pakistan Tobacco Company is British American Tobacco, which is a well-known company of the world. In cigarette market it’s on 2nd position. PTC’s brands include some famous cigarette brands as BENSON &HEDGES, DUNHILL, GOLD LEAF, CAPSTAN, WILLS, GOLD FLAKE and EMBASSY. Seven of the brands are amongst the top ten selling cigarettes in Pakistan. PTC brands are sold through the largest distribution network in the country which has 520 distributors reaching the remotest areas. The company prides itself for being the first multi-national company for beginning its operations in Pakistan.

SEGMENTATION

PTC has categorized their brands in three segments according to the purchasing power and need or demand of customer

They have segmented there market on the bases of social class so they are related to psychographic segmentation

•Dunhill and Benson & Hedges

Premium class

•Gold Leaf and capstan

Middle class

•Wills king, EMBASSY and Gold Flake

Lower class

Premium class:

In this class Pakistan Tobacco Company has targeted upper class that can afford the high quality international brands and have a purchasing power, for this class PTC is offering DUNHILL and BENSON & HEDGES

Middle class:

In this class PTC has targeted those consumers who have purchasing power of buying local brands, and who are habitual of smoking. For this class PTC is offering GOLD LEAF and CAPSTAN

Lower class:

In this class PTC is targeting lower level of class who has purchasing power of buying middle level brands for this class PTC is offering WILLS KING, EMBASSY and GOLD FLAKE

TARGET MARKET

ACCORDIND TO AGE:  Pakistan Tobacco Company is targeting

people of age group between 18 to 40 years.

SOCIAL CLASS

PTC is targeting people according to there purchasing power; they are offering different brands for different classes of society.

Simply they are targeting consumers according to age 1st and then according to the purchasing power they are offering different brands on different prices.

Marketing mix:

We have 4ps of our marketing mix

4ps

Product:

PTC is consumer focused company they offers those product that excels all aspects and exceed the expectations of there consumers. They are offering different products according to the need of there target market such as

BENSON & HEDGES, and DUNHILL for premium class

 

GOLD LEAF and CAPSTAN by pall mall for medium class  

WILLS KING, GOLD FKAG and EMBASSY for lower class

Price:

The most important factor of marketing mix is pricing. PTC has fixed their prices according to there customers. They have good price margin products.

 

BENSON & HEDGES, and DUNHILL is for premium class so the rates are 80 to 85

GOLD LEAF and CAPSTAN by pall mall is for medium class so it rates are 70 to 40

WILLS KING, GOLD FKAG and EMBASSY is for lower class so its rates are 35 to 30

 

According to new rules in Pakistan no one can sell cigarette bellow 25 of its price so that any young person can’t buy it.

Place:

Pakistan Tobacco Company has their personal distribution channels. They try to deliver their product in remote areas also. While driving on G T road you can see Mall shops having Gold leaf Capstan and Gold flake. There factories are in AKORA KHATAK and JHYLUM although they have there distribution channels in every main city of Pakistan.

Promotion:

Although there is restriction on cigarettes advertisements but PTC has a good promotional strategy. They have their own Brand Ambassadors. You can find PTC Brands in small cigarette shops. You can see Posters for which PTC pay annually.PTC gives Lighters to their shop keepers and they told them to gift them to customers. PTC usually use main cities for promotions except parks or those places were below then 18 years old can be found easily.

SOCIAL ACTIVITIES:

Pakistan Tobacco Company believes that children should not smoke, and smoking should stay only for adults who understand the risks related with it.

Their packs and advertising material contain a voluntary inscription with the legend ‘under age sale prohibited. PTC is supported the government in rising the minimum age limit from 16 to 18 though changes in tobacco legislation

Environment, health and safety are most ranked social activity of Pakistan Tobacco Company

Pakistan Tobacco Company has worked hard to improve on their environmental program that has been recognized globally by the British American Tobacco Group and PTC has been awarded with the “EHS Excellence Awards” in the following areas in 2006 and 2007.

Use of Cleaner Technologies

Water Re-use Energy Conservation

PTC is also involved in monitoring and reporting environmental performance for the Global Reporting Initiative (GRI) whereby they are publicly communicate with economic, environmental, and social performance.

Pakistan Tobacco Company had opened dispensaries, medical clinics for those who can’t afford the treatment from hospitals.

PTC is also working for the plantation in Pakistan.

Pakistan Tobacco Company had also provided free treatment for cancer patients.

They also pay 90 % taxes to Pakistan government from which government do many social activities.

Pakistan Tobacco Company is involved in many social activities without showing there name.

CONCLUSION

So after examining segmentation, target marketers, marketing mix and social activities of Pakistan Tobacco Company we concluded that PTC is touching high profits and is a leading company in tobacco market .It has number of strengths and opportunities while its weaknesses are few but in business world threats are always there. PTC is also involved in many social activities. Pakistan government cant banned on smoking permanently because PTC is paying heavy tax to Pakistan government So PTC has just to let down those threats and it has lot of competitive advantages.