It is my privilege to thank our respectable Teacher Mr.

35
Shamim Amjad for his guidance and inspiring attitude
during the whole duration. I am highly obliged to our
Honorable teacher and express our gratitude for his
Precious, splendid and unraveling guidance, which not only
made my mind capable enough to absorb the practical
Knowledge but also enabled me to explore new areas in the
Field of Supply Chain Management.

Regards,

BILAL AYUB BHATTI

RAJA ZEESHAN ASIF

TABLE OF CONTENTS

Acknowledgement

Chapters

Chapter-1

Page no.
1.1 Purpose of Study 6

1.2 Methodology 6

35
1.3-b Data from Secondary Sources 6

Chapter-2

2.1 TOBACCO INDUSTRY IN PAKISTAN and Major Players 7

2.2 Introduction to BAT 8

Chapter-3
3.1) History of PTC 12

3.2) Services of PTC 13

Page no.

3.3) PTC Major Brands 14

3.4) Different Brands of PTC 16

3.5) Vision & Mission 17

Chapter-4
4.1 Departments of Pakistan Tobacco Company 18

4.2 Supply Chain Model 18

4.3 Procurement Processes 19

4.4 Suppliers 20

4.5 Warehousing 20

4.6 Demand Forecasting 21

35
4.7 Inventory Management 22

4.8 Lead Time 22

Chapter-5
5.1 Distribution Management 23

5.2 TM&D Network Comparisons 24

5.3 Market Share 25

5.4 SWOT Analysis 25

Chapter-6
Page no.
6.1 Distribution Chart 27

6.2 INTRODUCTION OF DISTRIBUTORS 28

6.3 Responsibilities of distributors 28

6.4 Merchandising Policy 35

Chapter-7
7.1 Drivers and their application 38

7.2 Conclusion 39

35
 Chapter-1

Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

1.1 Purpose of Study

The study is intended to get an overall idea about Pakistan Tobacco Company, analyzing its

activities i.e. basic functions performed by PTC, features of the company & products that it

offers to its customers. Special emphasis is laid on the activities of Supply Chain department and

the project chosen by me, which was the main focus of my work.

1.2 Methodology

35
During interviews one of the most important tasks that one needs to accomplish is of collecting

as much quality information about the organization as possible. This information helps in writing

of good and factual report. Following are the main sources from where I utilized the data

1.3-a Data from Primary Sources

Data that have been originally collected (raw data) and have not undergone any sort of statistical
treatment are called primary data. In writing this report I collected the primary data through,
II. Interviews

1.3-b Data from Secondary Sources

ii. Web site of PTC
v. PTC Newsletters
vi. Annual Reports

Chapter-2

2.1 TOBACCO INDUSTRY IN PAKISTAN and Major Players:

Tobacco industry has been a great source of revenue generation for Pakistani economy because of
its increased demand and increasing number of users for the past ten to fifteen years. Tobacco
Industry, overall contributes 4.4% or Rs. 27.5 billion to the GDP of Pakistan. This industry
provides largest contribution in terms of taxes (i.e. 5% of the all taxes received) and excise duty. It
provides almost 312,500 jobs opportunities and employs nearly 1.2 million people in Pakistan.

35
There are few (almost 7-8) players (both includes local and international firms) in the industry
creating an oligopoly situation in the industry. The major firms involved in the manufacture of
finished goods and exports include Pakistan Tobacco Company, Lakson Tobacco Company,
Souvenir Tobacco Company, Saleem Cigarette Industry, Universal Tobacco Company, Imperial
Cigarette Industry, Khyber Tobacco Company, International Cigarette Industry, Walton Tobacco
Company and Sarhad Cigarette Industry. Of these firms Pakistan Tobacco Company (PTC) is the
market leader with Lakson Tobacco Company (LTC) in the second place.

Because of increased consumption rate of tobacco and resulting health consequences because of
use of cigarette, government of Pakistan imposes various restrictions on the firms operating in
the industry i.e. let them pay high amount of taxes, excise duties and imposes strict rules and
regulations which makes it difficult for the local firms to strive in the market. The threats of the
local manufacturers have increased because of entry and existence of international Tobacco
producing firms with low cost structure. Those include PMI (Philip Moris Intl) comprising
brands of L&M and Marlboro.

Some dominant firms in the market are however, able to sustain in the market

but lower prices and influence of the dominant firms like Pakistan Tobacco and Lakson Tobacco
are creating the situations tougher for the existing firms. Out of all the tobacco firms operating in
the industry (mentioned above), the most competitive local firms are: Khyber Tobacco
Company, PTC, LTC, Sarhad Cigarette industries.

Player chosen:

The player I have chosen from the tobacco industry of Pakistan is Pakistan Tobacco Company.

35
2.2 Introduction to BAT

British American Tobacco

British American Tobacco is the worlds most international tobacco group. Based in London,
U.K. it is a market leader in more than 50 countries with the strength of 90,000 employees
selling more than 320 brands in more than 180 markets worldwide.
In 1902, the Imperial Tobacco Company of the United Kingdom and the American Tobacco
Company of the United States agreed to form a joint venture the British-American Tobacco
Company Limited. The aim of forming a joint venture was not to trade in each others domestic
territory, to assign brand rights to each other for use in their respective home markets, and to
assign trademarks. The American Tobacco Company controlled two-third of the shares and the
Imperial Tobacco the remainder. British American Tobacco got listed on the London Stock
Exchange in 1912 and British investors acquired most of its American shares. The company was
now free to conduct its business independently throughout the world.
By 1990, BAT industries had decided to focus on tobacco and financial services and disposed off
almost everything else. 1999 saw the merger with Rothmans International, the worlds fourth
largest tobacco company, and, in February 2000, Imperial Tobacco Company of Canada became
a subsidiary.
In 2001, the Group announced major investments in South Korea, Turkey, Vietnam, Nigeria and
Egypt, and decided to invest US$ 500 million in these markets over the next few years.
In 2002, with a centurys experience in international tobacco markets and expertise in all aspects
of the business, British American Tobacco is facing the future with confidence.
BAT is now performing two major functions all over the world, i.e. Financial & Insurance
Services and Cigarette Manufacturing.

a) Financial Services

1. Farmers Group: USAs fifth largest group of property insurers.

2. Eagle Star: UKs life insurer, working in about 30 countries.

3. Allied Dunbar: UKs largest life Insurance Company.

b) Tobacco

BAT is the second largest quoted tobacco group with annual shipment of more than 800 billion
cigarettes.
The BAT divides world into five regions that are;
1. America-Pacific: Includes USA and Japan.
2. Asia-Pacific: Includes China, South East Asia and Australia.

35
 3. Latin-America: Brazil, South America and Caribbean.
4. Europe: Incorporated into 50 markets including Russia.
5. AMESCA: Includes Africa, Middle East, Southern & Central Asia.

BATS MARKET POSITION & REGIONAL SHARES

2.3) BAT AT GALANCE:

The BAT is the world most international tobacco group. It has business in 180 countries with a
marker share of 15.1 percent. It has over 300 brands in it portfolio and makes cigarette chosen by
one in seven of world one billion adult smokers. It holds strong position in each of its region and
gas leadership in more than 65 markets. The group gas over 80 factories in 64 countries,
processing some 660 million kilos of leaf and producing over 800 billion cigarettes a year. The
company includes associated companies employing over 80,000 people worldwide.
2.4) Major Brands:

BAT has particular emphasis on its four international drive brands. International brands are
those, which cross a number of regions. These brands are handled globally in order to present
one consistent message to consumers worldwide

Lucky Strike:

It is the best selling international brand and the premier global brand for the key ASU 30
category. Its volume in 2001 increased by a record 4% showing growth in key international
markets such as France, Germany and Spain.

Kent:

35
Kent is the premier freestanding lights brand and its role is to strengthen the portfolio in the
critical premium, lights and ASU 30 segments.
The original 4 markets that relaunched Kent in 1999.

(Russia, Chile, Romania and Hong Kong) has show impressive volume growth up over 50% in
2001.

Dunhill:

In 2001 fuelled by its outstanding performance in South Korea, Malaysia and Taiwan, Dunhill
achieved the highest ever volume in the history of the brand with 14% growth over 2000.

Pall Mall:
It is the leading mid price brand of BAT. In 2001 Pall Mall experienced significant growth with
volumes up 21%. It showed strong performance in Germany, Russia, Hungary, Italy, Ukraine
and Romania.
Rothmans, Kool, Benson & Hedges, State Express 555, Peter Stuyvesant, Viceroy and John
Player Gold Leaf are also part of international brand portfolio, playing a key strategic role in the
different regions of the business in the world.

Chapter-3

Pakistan Tobacco Company

35
3.1) History of PTC:

Pakistan Tobacco Company was established in 1947. It took over the business of the Imperial
Tobacco Company (India), operational since 1929 in the territory that formed Pakistan, Pakistan
Tobacco Company was the first multinational to set-up business in Pakistan. The company is a
member of the British American Tobacco.
Manufacturing operations commenced from a small pilot production plant set up in a warehouse
in Karachi port with monthly production of 30 million cigarettes against sales of 160-the gap
being made up by imports. First full-fledged factory was established in 1955 at Jhelam. The
same year Pakistan Tobacco Company became a public limited company.
At the same time of birth Pakistan in 1947, all tobacco was imported into the country. In 1952, a
development project for tobacco leaf was initialed in the North West Frontier Province

(N.W.F.P), which progressed rapidly. A re-drying plant was set up at Akora Khattak and
cultivation of Virginia Tobacco Commenced. After the birth of Bangladesh and consequently,
withdrawal of Dacca & Chittagong factories, a now new cigarette factory was set up at Akora
Khattak (N.W.F.P) in 1975 to meet the increasing demand, Pakistan Tobacco Companys
journey on the road progress and prosperity continues with some major now
development/investment projects over the last few years.
Due to its high quality and its ingenuity and innovativeness it soon became the trend setters of
Pakistans tobacco industry. After pouring a lot of time and energy it gave birth to such ideas and
techniques which are now widely and beneficially used all over Pakistan. Its progressiveness
pumped life and energy into the meek tobacco industry of Pakistan. By now there is more than 8
to 10 tobacco units (both large and small) are working in Pakistan.
It was total dedication that PTC this year was able to grab a profit of 665 million approximately
after tax, which is enough to tell the standard of this institution.
PTC is now playing a vital role in almost every field of economy in Pakistan generally and in
Punjab and NWFP specifically. If we sit and start counting the services of PTC towards Pakistan
I bet, it will take some time.

3.2) Services of PTC:

There are some services of PTC, which I would like to mention as briefly as possible.

1. The very first service I can rank is towards the agriculture sector. As we all know Pakistans
economy is largely based on the performance of agriculture sector. It is the only sector in
Pakistan which is contributing 70% of the GDP of Pakistan in one or another way. It was
PTC who initiated the cultivation of FCV, DAC and burley forms of tobacco. With great
effort and spending a fortune on betterment of this cash crop it has shown its effects. By now

35
 Pakistan is on par with per hectare yield of the most modern countries. All this credit goes to
the PTC, which is the mentor of Pakistan tobacco. With propagation of hi tech methods and
research the fruits are being reaped by every one concerned.

2. As we know large population of Pakistan is under employed it is the PTC who is providing
employment to the almost 2500 people directly and 20,000 indirectly. It is the PTC where an
average take away of its workers is 9500 per month. This is making PTC one of the best
paymasters in the whole region. Other benefits of employment at such a level are clear to
almost every body.

3. It is the PTC being an ethical company is paying almost approximately1.2 billion rupees in
form of taxes and other levies annually. This can be translated into approximately 43 million
rupees every working day. This amount is paid by none other pays single private sector firm
this amount. It is said that this amount is enough for financing the social sector schemes of
Pakistan.

4. Forestation schemes and environment friendly policies are very optimistic in already grave
situation of Pakistans environmental situation. Only this year PTC has allocated 7.6 million
rupees for only forestation schemes and other steps are excluded.
5. Running free medical dispensaries, sponsoring and promoting the sports and other recreational
activities, sponsoring schools are one too many services rendered by PTC to Pakistan.

There are endless more benefits, which are rendered by the PTC.

3.3. PTC Major Brands:

PTC has always considered it-selves a consumer-focused company. They aim to offer a product
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.

3.3.1. Benson & Hedges Lights:

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 & Hedges in 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

35
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:

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, and
consistently 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 value share. A highly successful pack design change in 2004, soon after the new pack was
launched 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:

35
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.
3.4) Different Brands of PTC:

35
3.5) Vision & Mission

Chapter-4
4.1 Departments of Pakistan Tobacco Company:

35
 Following are the departments working in PTC:

Marketing Department.
Finance Department.
Security Department.
Information technology Department.
Corporate affairs Department.
Legal affairs Department.
Supply Chain Department.

4.2 Supply Chain Model:

The model followed by the Pakistan tobacco company in supply chain activities is as
follows:

4.3 Procurement Processes:

In procurement process both the two ways are followed in pakistan tobacco company,
Direct procurement
Indirect procurement.

Direct procurement:

In direct procurement, all the raw material regarding to cigarette is treated, that includes
tobacco, paper and the filter.

35
Indirect procurement:

Indirect procurement deals with the all other things which include,
Packaging
Furniture
Office Equipments etc.

How Procurement is done?

Procurement is done in mainly two ways;

Tendering.
Contract basis.

4.4Suppliers:

The Suppliers of PTC can be shown as follows;

International brands are procured under the directions of British American Tobacco.

35
4.5 Warehousing:
In Pakistan tobacco company;
There are 215 warehouses including main and sub locations from where direct and
indirect both type of distribution is done.
At least the stock of finished goods of 10 days is always maintained in the warehouses.

4.6 Demand Forecasting:

Tobacco demand has also become seasonal as in the budget every year tax is imposed at a
higher rate so before the budget demand reaches to the peak.
Demand is forecasted in the traditional way in PTC. The retailer gives demand to
wholesaler the wholesaler then forwards to the distributor and then distributor forward it
to the PTC.

35
PTC deals in specified orders generated by the demand
forecasting.

4.7 Inventory Management:

In PTC as the raw material used is the tobacco which is the most major element of
production and as it is not a perishable thing so PTC has approximately one year`s
materials in the stock.
PTC uses the raw material purchased last year in the current year so in this way we can
say its inventory management is very strong.

4.8 Lead Time:

Lead time of manufacturing varies according to brands.

In case of manufacturing of imported brands the lead time is approximately 2 months and in case
of local brands the manufacturing process takes only 3 days.

35
 Chapter-5

5.1 Distribution Management

35
5.2 TM&D Network Comparison

35
 :
5.3 Market Share

Volume Share Value Share

35
5.4 SWOT Analysis:

Strength:

Pakistan Tobacco Company marketing department Lahore region is responsible to promote

all the brands of PTC by using different promotional tools and activities. PTC marketing
department has high qualified and experienced staff. They also offer family of brands as
compared to their competitors.
Pakistan Tobacco Company is regarded as the market leader announced a total turnover of
8060 million in 1991 which went up to 8663 million in 1992, in 1993 the figure went down
slightly to 8642 million rupees which picked up again the following year to 8788 million
rupees in 1994 and 10151 million rupees in 1995.

Weakness:

In PTC marketing dept there is no proper training for DSD (Direct Sales Delivery), the
motivation level of DSD is also low. As compare to Lakson Tobacco Company, PTC has
fewer sales toward rural areas.

Opportunities:

Pakistan Tobacco Company has a big market toward rural areas for lower brands like embassy &
Gold flake.

Threats:

35
In Pakistan the big competitors of PTC is LTC, so LTC also offer a better coverage plan in
the market and there one or two brands are big threat for PTC.
Under-pricing and excessive sales promotion programmes are major problems of the
industry. While the domestic industry indulges in what is known as under-pricing by selling
their brands cheaper than those of their rivals in the same category, the manufacturers are
said to be involved in excessive advertisements and other promotion programs.

Chapter-6

6.1 Distribution Chart:

35
As in the history we have discuss that there are two factories of PTC, one in Jhelam and second
one is in Akora Khattak. So the stock comes in ware house from these factories and then comes
to the distributors, then they distribute these stock among whole sellers and retailers and the
whole sellers and retailers available the stock to consumers.

6.2 INTRODUCTION OF DISTRIBUTORS

Distribution channel play an important role in the economic development and the social welfare
of country. In business point of view distribution mean provision of products evenly, timely,
properly and perpetually so as to make the product available at convenient point for consumers
to pick up without any difficulty. It may however be noted that distribution alone cannot ensure
marketing success.
Infrastructure and facilities

35
The basic facilities that a distribution company has to provide includes highly motivated sales
force, reliable transport, storage space for maintaining information system and effective control
system etc.

6.3 Responsibilities of distributors

The responsibilities include:

Ensuring width, depth and merchandizing of brands at all potential outlets

Ensuring equitable and judicious distribution

Building good trade relations and project a favorable companys image

Market Feedback to principals

Achievement of sales targets

Ensure adequate investment levels as per principals requirement

There are three distributors of PTC in Lahore region, who distribute their products in the whole
region.

1. ALLIED MARKETING ( Pvt ) LTD

Allied Marketing is a well established full service Marketing and Distribution Company
of just the right size. It is not too large so that management is closely involved with day to day
operation, and big enough to provide the full range of services that their principals expect. S.M.
Ilyas & Sons opened the door for business in 1898. Allied Marketing is the Distributor of the
following companies:
Pakistan Tobacco Co. Ltd.
Lever Brothers Pakistan Ltd.
Dalda Food

OUR MISSION

Our mission is continuous improvement to achieve our concept of:

35
Service +
In distribution efficiency,
In management information systems,
In logistics cost reduction
In ware housing/storage,
In competitive market coverage,
In new product launches and
Market intelligence.
Allied Marketing is one of the best distributor of PTC that fulfill their requirement
Dist. Total sales =70% DSD+30% Wholesale
And get the Award of Excellence from Pakistan
Tobacco
Company on December 14, 1989.
And on Februarya9, 1993 they get performance Award from Pakistan Tobacco Company.

2. S M RIAZ AND SONS

S M RIAZ AND SONS is situated on 4-bank square, The Mall, Lahore and the big distributor in
the region. They are working for PTC since 1898.

The average monthly volume is 43.4 Million; the share of PTC business on basis of turnover is
100%.

OVERVIEW

a) Number of retailers
3213

b) Number of villages
104

c) Number of 80% volume villages

34

d) No of wholesales
34

35
 e) No of village retailers
698

f) Coverage frequency
Twice & Thrice

g) Number of outlets covered

Daily, twice & thrice
on weekly basis:

Da 302
Tw 1752
Th 1159

h) Number of merchandised outlets own

Own 332
com 450

35
 2. Shahbaz Brother (Private) Limited

Shahbaz Brother (private) limited is also one of the

distributors of PTC since 1984. It is situated in 43-C, N Block Industrial Area Gulberg II Lahore
near Pepsi factory. Distributors of Lever Brothers Flying Tissues, Toyo Nasic, Flora, rice. The
average monthly volume of Shahbaz brother (private) limited is 62.4 Million (2004) and the
share of PTC business on the basis of turnover is 50%.

OVERVIEW

a. Number of retailers 3080

b. Number of villages
0

35
c. Number of village retailers
0

d. No of village wholesalers
0

e. Coverage frequency
Daily Twice Thrice

f. No of outlets covered on
Daily bases, twice & thrice

Da 124
Tw 2396
Th 567

g. No of merchandised outlets

Own & competition

Own 217
Com 297
SBL (WHOLE) RESOURCE

DD salesmen
19
VDD salesmen
00
Whole salesman
01
Vans
12
Trivans
04
Rickshaw
03
Accountant
01
Godown Keeper
02
Loaders
05
Computer Operator
01

35
Security Guard
08
Driver
03

Transportation:

All the transportation is done by the PTC itself and all the transportation is done by Road.
All the expenses beard by the PTC whether the transportation is direct or indirect.

35
Modes of transportation:
Following are the two main modes of transportation;
By containers (16-20ft).
By trucks.

6.4 Merchandising Policy

Following are some policies for merchandising

1. Selection of markets

The market selection is usually on the basis of volume whether their volume is high or
low.
In the selection of market the top executives also confirm that how the target brand
volume exist in the market
Market will be selected by RMs and A.Ms themselves only

2. Area selection/Localities within markets

Consumer profile:
The area to be selected within the city on the basis of target market of that brand
Retail sophistication:
In the area selection the overall profile of bazaars and outlets will be checked
The area will be selected by A.Ms and TMOs.

3. Selection of outlets:

Type of outlet:
Visibility and impact:
Mean that how much rang of vision, in store display space and exposure to target consumers.
Volume: High selling brand in the outlet.
Consumer profile:
In the selection of outlet it is necessary to focus on consumer profile that which kind of
consumer came to that outlet and what their income levels, and also focus on their
socio/demographic profile.
Outlet sophistication:
In the selection of outlet, overall environment, cleanliness, shelving of the outlet is notice.

Retailer attitude:

35
In the outlet selection the most important factor is the retailer attitude, that he will be co
operative or not.
The decision of selection for outlet will be taken by the Area Manager, on the bases of
the investment.

4. Designing the outlets

The outlet can be designed in two ways

In store:
Drawing it on the paper, find hotspots for pack displays, thematic visuals on high
visibility sites, 4 row display optimizing brand portfolio, gravity displays, imported modular,
optimum space management.
On store:
Highly visible, significantly better quality, top class materials, beneficial to retailers,
(name/lighting), perfect to
This is to be cooriented by MRs and TMOs

5. Selecting materials

The materials for the outlet will be selected according to the outlet requirement.
According to the profile of the outlet, space available and brand selected
Cost efficiency and innovations in materials.
This should be the decision of AM.

6. Selecting Suppliers

As per supplier selection guidelines. Past experience with suppliers

Quality and adherence to deadlines. Follow central guidelines on suppliers
Financial strength
This will be the responsibility of MCs and MRs

7. Handling retailers

Commitment to retailers only when all formal approvals acquired

Signing of contract (v. imp) including firm commitments on electricity bills and
maintenance.

8. Maintenance

Very important to ensure the outlets are well maintained.

Third party contracts, distributor staff, SPV. But in any case regular maintenance
programs

35
 9. Post installation activities

Start the process from the selection of outlet. Area manger should have a personal list of
all outlets with investment of more than 50,000 and RMs should have a personal list of
all outlets more than 150,000 investment
These outlets must be put in bold in merchandising database for focus. And their share
must be monitored at all levels.
All outlets with more than 50,000 worth of investment should be visited by AM at least
monthly.
All outlets with more than 150,000 worth of investment should be visited by RM monthly
When visited, shares should be monitored, maintenance standard should be checked,
trade relationships should be developed, retailer complaints should be handled and it
should be ensured that the fascia are lit
NSM, TMDM and MM will visit these outlets on regular basis and ensure that
AMs and RMs are visiting these outlets regularly.
NSM, TMDM and MM will have live lists of all these outlets for random inspection.

10.Display

The most important activity in these outlets after investment is the maintenance of pack
display all the time as per the planograms.
This will be the prime responsibility of TMOs

Chapter-7

7.1 Drivers of SC and their application:

I. Facilities:

35
 In PTC both the approaches are followed equally because of branding as the brands
which are international, also have their specific market segment which actually consists
of quality conscious consumers and a bit class conscious too, on the other hand the local
brands are targeting the segment who are not class conscious rather they are price
conscious.
So we can say that;
Responsiveness:

It is mainly associated with the international brands.

Efficiency:

It is associated mainly (not wholly) with the local brands.

II. Inventory:

Inventory is maintained on yearly basis as we have discussed above that the inventory has
been made available for a whole year.

III. Information:

The actual demands are actually treated by the PTC as they rely upon the information
cycle we discussed above through which demand is forecasted, so in this way we can say
that it is a pull process.

IV. Pricing:

The pricing decisions actually depend upon the budget as the taxes imposed on cigarettes
greatly affect the pricing strategy and decisions and they are made accordingly,

Brands are also the main criteria of pricing as the international brands are quite highly
priced and that had effects on demand that much.

CONCLUSSION:

35
 From viewing the project we may conclude that
being the most competitive organization with capturing
approximately 40 percent of the market, has a very strong
infrastructure regarding supply chain activities and decisions
are made quite wisely as the results are showing strong
position of the company and their journey to success is going
on..
PTC

19 %
I T B
3 %

35