A REPORT ON DISTRIBUTION CHANNEL OF

ABUL KHAIR TOBACCO INDUSTRY

ON
ABUL KHAIR GROUP.

Asikur Rahman.
ID: MBA-M21231123013.
Masters of Business Administration.
Batch- 29th
A REPORT ON DISTRIBUTION CHANNEL OF
DHAKA TOBACCO INDUSTRY
ON
AKIJ CORPORATION LIMITED.
A REPORT ON DISTRIBUTION CHANNEL OF
DHAKA TOBACCO INDUSTRY ON
AKIJ CORPORATION LIMITED.

Prepared under Direct Supervision of:

M. Mahmudul Hasan
Assistant Professor and Coordinator (BBA)
Department of Business Administration.
Northern University, Bangladesh.
House No- 54, Road No-4/A,
Dhanmondi, Dhaka-1209.
Bangladesh.
E-mail: uddin66@gmail.com
Phone: 9667237-40, 01817072863

Prepared by:
Asikur Rahman.
ID: MBA M21231123013.
Department of Business Administration.
Uttara University, Bangladesh.
M.B.A- 29th Batch.
Mobile: 01717290570, 01672766283.

Date of Submission: 17/10/2014.

Distribution Channel of Abul Khair Tobacco Industry on Abul Khair Group
Date: 17th October, 2014

M. Mahmudul Hasan
Assistant Professor and Coordinator (BBA)
Department of Business Administration.
Northern University, Bangladesh.
House No- 54, Road No-4/A,
Dhanmondi, Dhaka-1209.
Bangladesh.

Subject: Submission of Internship Report.

Dear Sir,

I am submitting my internship report on Distribution Channel of Abul Khair Tobacco

Industry on Abul Khair Group. I would like to say this report prepared by myself. To
complete this report I tried to gather as much information as possible from office and
distribution system of the company. The remaining data come textbook and other
references such as internet, secondary data and other books.
I believe that this internship program has enriched both of my knowledge and experience.
It gave me immense pleasure to complete the report on Distribution Channel of Abul
Khair Tobacco Industry on Abul Khair Group, as a requirement of the internship program.
I tried to highlight the important issues of distribution section and tried to focus different
aspect of marketing form the assigned company’s perspective.
The report provided me insight on the real life experiences with various marketing
activities. I would be happy to respond any questions that you might have regarding my
report.

Thank you.
You’re sincerely

(Asikur Rahman.)
ID-MBA M21231123013
 CERTIFICATE

This is certify that the internship report entitled

“Distribution Channel of Abul Khair Tobacco Industry On
Abul Khair Group”
Submitted in partial Fulfillment of the requirements for the Degree of
Masters of Business Administration (MBA)
Of
Uttara University, Bangladesh
INTERNSHIP REPORT OF
Asikur Rahman
MBA-M21231123013.

Has worked under my supervision and guidance and that no part of

this report has been submitted for the award of any other Degree,
Fellowship or other similar titles or prizes and that the work has not
been published in any journal an Magazine.

Supervisor Chairman
M. Shahab Uddin Professor M. A. Razzaque
Assistant Professor and Coordinator (BBA) Head
Department of Business Administration. Department of Business Administration.
Northern University, Bangladesh. Northern University, Bangladesh.
 STUDENT DECLARATION

I hereby declare that the internship report entitled “Distribution Channel of

Abul Khair Tobacco Industry.” For The company of Abul Khair Group.
This report is submitted as partial fulfillment of the requirements for
Bachelor of Business Administration of Uttara University, Bangladesh.
To

Northern University, Bangladesh is my original work and not submitted for

the award of any other degree, diploma fellowship or other similar titles or
prize.

Place: Uttara University, Bangladesh. Asikur Rahman.

Date: 10/02 /2007. ID: MBA-M21231123013
 ACKNOWLEDGEMENT

The internship program implement a significant important as it enables a student to be

adapted with the practical business activities. I work closely with the people of the
organization and learn about the functions of the organization. I am grateful those people
who cooperate and encourage me to prepare this internship report.

First of all my deepest gratitude and appreciation goes to Mr. Shariar Anam Head of the
Department (BBA), of Business Administration, University of Asia Pacific, Bangladesh
Under his guidance and help I become able to submit this report.

I would like to convey my sincere gratefulness to Md. Belal Hossain Senior Manager,
Sales & Marketing, He gave me the chance to expedite my practicability in this
organizational arena.

A special thank goes to Mr. Shohidul Islam, District Manager, Lake Shore Hotel &
Apartment, because of his valuable suggestion and gaudiness help me to complete this
report.

I want to give thanks to other teacher and my classmates to make such a project that help
of learn about the real life experience. It helps not only education but also it help to make
my life successfully.
 EXECUTIVE SUMMARY

AKTCL is the largest Cigarette manufacturing and distribution industry in Bangladesh.

This company is very careful about their end consumer. So to give them a better service it
facilitates lots of things in its distribution. As for example AKTCL is conducting a survey
on relationship building It is an important criterion for the company, because if they have
a good relationship with the Route Cash & Carry and the Bazar Cash & Carry, they can
operate their distribution system efficiently and effectively.

Bangladesh is a developing country and the Tobacco sector plays a vital role in the
developing country. The Tobacco sector includes cigarette and Zorda sectors, which are
called Tobacco sector (PTS).

In Bangladesh, spinning sector has contributed and continuing to contribute towards the
development of the socio-economies condition. At present 325 million people are
working in the spinning sector. About ninety percent (90%) of the domestic fabrics and
yarn requirements are met by our PTS.

Based on the Annual Report-2005 of Bangladesh Textile Mills Association (BTMA)

mechanized capacity of spinning industry in 1972-73, 1983-84, 1993-94 and 2003-04 are
as 853000, 1108000 and 4360000 spindles respectively.

Abul Khair Match Limited ( ATML) is a sister concern of Group and it is one of the top
leading textile companies in Bangladesh. Since 1998 Abul Khair Match Limited. has
been operation its business by supplying excellent quality yarn primarily in the export
market as well as in the market. Abul Khair Match Limited Ltd is one of the members of
AKMIL. It has installed total capacity 51,328 spindles to produce yarn. Abul has used
modern technology and machinery to compete at the competitive market with the good
quality yarn.
Here the topic of my internship report is “Distribution Channel of Abul Khair Tobacco
Industry in Abul Khair Group Limited”. This is prepared by conducting the research
through the questionnaire because:

 It is relatively low at cost.

 Accurate response is obtained since there is no interviewer bias.
 Data collect at a relatively short time.

The purpose of the research is to investigate the relationship between independent

variable perceived value, brand preference and customer satisfaction with the dependent
variable repurchase intention. The sampling technique used in non-probability
convenience sampling technique. The questionnaires were distributed to 100 knitting
company and Ninety three questionnaires were found correct for data analysis.

The Statistical package for social science (SPSS) Version 11 software is employed to
analyze (such as – Cronbach’s Alpha, Descriptive Statistics, Correlations, Regression, and
Coefficients) the data collected from the actual survey. From that analysis here I draw the
flowing relationship among perceived value, Brand preference and customer satisfaction
with the repurchase Intention.

Relationship between perceived value and repurchase intention

Relationship between brand preference and repurchase intention
Relationship between customer Satisfaction and repurchase intention.

These relationships support that repurchase intention is influenced by the perceived value,
brand preference and customer satisfaction. These three very significant variables
(perceived value, brand preference and customer satisfaction) will assist yarn selling
company to plan and execute marketing strategies that will maximize their customers
repurchase intention as well as the profit.
In addition, if the purchases become successful, then the consumers express their
preference for the particular brands product over the other brands and they praise the
organization or recommend it to others, eventually demonstration that they are becoming
bound to the organization. Therefore, if a yarn customer is able to make a successful
buying decision by considering the perceived value, brand preference and customer
satisfaction then he or she is going to become loyal towards that brand and will buy the
product of the same brand next time.
 Table of Content
Topic Page Number
Chapter- 01: Introduction of the report.
1.1 Introduction. 1-2
1.2 Origin of the report. 2
1.3 Objective of the Report 2
1.4 Rationale of The Report 3
1.5 Methodology 4
1.6 Scope of report 4
1.7 Study approach 5
1.8 Limitations of the study. 5
Chapter- 02 : Profile of the Organization
2.1 Introduction of the organization
2.2 Insights of Abul Khair Ltd.
2.2.1 Sister concerns of Abul Khair Group at a Glance
2.2.2 Some significant achievement of Abul Khair Group
2.3 Background of Dhaka Tobacco Industry
2.3.1 The Role of Abul Khair Ltd.
2.3.2 Mission and Vision of Dhaka Tobacco Industry
2.4 Objective of Abul Khair Tobacco Industry
2.4.1 Business Objective
2.4.2 Social and communality objective
2.5 Strategic Imperatives
2.6 Strategies
2.61. Corporate level Strategy
2.6.2 Business level Strategy
2.6.3 Functional Strategy
2.6.4 Operation Strategy
2.7 Brand portfolio of AKG
2.7.1 Price wise segmentation of the product
2.7.2 Nature of the product
2.8 Distribution channels
2.9 DTI Marketing Set-up
2.10 Inventory management
2.10.1 Inventory Planning
2.10.2 Order Management
2.10.3 Logistic Management
2.10.3.1 List of Company Transport
2.10.3.2 Management of logistic support
2.10.3.3 Delivery of product
2.11 Organ-Gram of Abul Khair Ltd.
2.12 Competitors Brand.

Topic Page Number

Chapter- 03: Situation Analysis
3.1 Industry Analysis
3.1.1 Threats of New Entry
3.1.2 Pressure of Substitute
3.1.3 Bargaining Power of Buyers 39
3.1.4 Bargaining Power of Suppliers 39
3.1.5 Availability of substitute product 39
3.2 Macro-Environment Analysis 40
3.2.1 Influence of political –legal 41
3.2.2 Influence of Economic Forces 42
3.2.3 Influence of Social Forces 42
3.2.4 Influence of Technology 43
Chapter-04 Finding and Analysis
4 Distribution Net work and Supply Chain Analysis
4.1 Using Middleman 44
4.2 Distribution Channel Function 44
4.3 Number of Channel Levels 45
4.4 Distribution System of this Corporation 47
4.5 Central Ware Housing 48
4.6 Territory Sales depots or distribution 49
4.7 Distribution Time 49
4.8 Liabilities of the Distribution 50
4.8.1 Logistics Support of distributors 50
4.8.2 Nursing System of product 50
4.9 Packaging System of the product 52
4.10 Survey of Zorda
4.10.1 Competitive analysis
4.11 Sales Analysis 66
4.12 Calculate BSR and its effectiveness
Chapter : 5. SWOT analysis
5.1 Strengths
5.2 Weakness
5.3 Opportunist
5.4 Threats
Chapter- 6 : Conclusion and Recommendation
6.1 Recommendation 72
6.1 Key Success factor 74
Conclusion 75
Reference
Appendix
Abul Khair Group
Corporate Office
House No 65,
Road No 8/A, Dhanmondi,
Dhaka Bangladesh.