PAKISTAN TOBACCO

COMPANY

‘BENSON & HEDGES’

GROUP MEMBERS

Class Section: Wednesday (12-3)

1. Nazim Nizar Meghani (11195)

2. Taha Ahmed Siddiqui (11307)

3. Sheikh Fahad (11305)

4. Syed Usman (11753)

5. Ammar Ahmed (11883)

ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
 TABLE OF CONTENTS

 Tobacco Industry of Pakistan

 Introduction
 History
 Brands
 Market Analysis
 Competitors Profile
 SWOT Analysis
 Employees Compensation & Benefits
 Corporate social activities
 References
Tobacco Industry of Pakistan

 Pakistan’s tobacco industry is a 75 billion plus cigarette

sticks market

 There are only two players in this market:

 Lakson Tobacco Company, which is a part of
Phillip Morris Inc. International
 Pakistan Tobacco Company, which is a part of
British American Tobacco Group International;
which holds 97% share in PTC

 Lakson Tobacco Company follows a ‘one size fits all’

strategy, where as Pakistan Tobacco Company has a
‘brand fit’ strategy through which they tailor their brands
according to the needs of different target markets.
 INTRODUCTION

Pakistan Tobacco Company Limited was

incorporated in 1947 immediately after
partition, when it took over the business
of the Imperial Tobacco Company of
India which had been operational in the
subcontinent since 1905.
The company prides itself in being the first
multi-national company to begin its
operations in Pakistan. Our parent company,
British American Tobacco has been in
business for over 100 years now with a presence in over 180
countries. The Group has built an international reputation for
making and marketing high quality brands for the millions of
informed adults who choose to consume tobacco.
From being just a single factory operation to a company which
is involved in every aspect of cigarette production, from crop to
consumer, we have evolved into one of the leading corporations
in Pakistan. We run two state of the art factories and employ
more than 1,700 people while indirectly providing livelihoods to
more than a million people who are involved in various aspects
of the business. We are market leaders and contribute more than
Rs. 30 billion in excise duties and taxes to the Government. Our
strategy reflects our vision, being the champions of growth,
productivity, responsibility and a winning organization.
Our brands encompass our values and we boast a diversified
portfolio catering to the different tastes and preferences of the
entire tobacco market. By offering products that are superior in
quality, driven by global standards, we meet and exceed the
expectations of our consumers.
We, as a company, work towards broader goals beyond the
benefit of the shareholders and demonstrate support for
communities, high standards of ethical behavior and greater
transparency and accountability. We are committed to
continuous improvement and to keeping an open mind. We have
learnt that companies can rarely act alone; almost all our
contributions to society involve working constructively with
others and by engaging and listening to our stakeholders. By
matching our words with our actions, we aim to demonstrate the
behavior of a responsive and responsible tobacco company.
 HISTORY

From being the first multinational to set up its business in

Pakistan in 1947 and beginning operations out of a
warehouse near Karachi Port, we have come a long way.
From being just a single factory operation to a company which
is now involved in every aspect of cigarette production,
from crop to consumer, we have evolved and grown with
Pakistan. However, what is significant about these 62 years is
the effort that Pakistan Tobacco Company has demonstrated in
the development of the country. By being instrumental in the
campaign for modern agricultural and industrial practices, we
have helped in the development and progress of the
agricultural and industrial sector in the country.
We have been supporting and contributing to various causes of
national interest. Educating growers in the latest techniques and
technology in agriculture, afforestation 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 with the 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.
 BRANDS

We have always considered ourselves a

consumer focused company. We aim to offer
a product that excels in all aspects and
exceeds the expectations of our consumers.
Pakistan Tobacco Company invests in trying to
understand the consumers’ preferences and
ensures that adult smokers make informed
choices about different brands available in the
market. We have put in particular effort in
promoting two of our Global Drive Brands, Dunhill and Pall
Mall; and two of our great value for money brands, John Player
Gold Leaf and Gold Flake.

Dunhill
Dunhill, a premium global brand, celebrated its centenary in
2007.
2008 was an exceptional year for Dunhill in Pakistan as the
brand witnessed exponential growth; fuelled by its re-launch in
July. Going forward, Dunhill is poised to strengthen its foothold
in the premium segment.
Benson & Hedges

In 1873, Richard Benson & William Hedges started a

partnership in London.
Benson & Hedges was launched in Pakistan in March 2003 and
has since been able to build strong brand loyalty among its
consumers showing excellent year on year growth.

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.
John Player Gold Leaf has become an institution in itself,
becoming one of the most recognizable cigarette brands in the
country. John Player Gold Leaf has recently been declared the
largest Urban Brand in Pakistan, beating out products across the
F.M.C.G. spectrum.

Capstan by Pall Mall

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.
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 'soft cup'
packaging, the brand took off when it was repositioned in the
Value For Money (VFM) segment and later a 'hinge lid' variant
was introduced in 2000.
Gold Flake has grown tremendously as a brand since
2004, making it the largest volume brand in Pakistan, and the
second largest brand in British American Tobacco's Asia Pacific
region. The key to Gold Flake’s success has been its novel
engagement schemes which have fuelled growth over the years.
Through consumer relevant initiatives, Gold Flake has
established itself as a fresh and modern offering in the VFM
segment and is all set to consolidate its position as the major
volume driver for Pakistan Tobacco Company.

Embassy

Embassy, is a leading volume brand in Pakistan, and is most

popular in Punjab where it enjoys a leading position. Having
built its heritage over a number of years, Embassy thrives on its
brand loyalty and locally tailored taste characteristics.
 MARKET ANALYSIS

 MAJOR PLAYERS
 Pakistan Tobacco Company
 Lakson Tobacco Company
 Market Share:
PTC enjoys a 41.26 % volume and 55.02% value share.

 Brand Value Segmentation (BVS)

 Variables
 Psychographic
 Demographic
 ASU 30 (Adult Smokers Under 30)
 Behavioral Segmentation
COMPETITOR’S PROFILE
 SWOT ANALYSIS

STRENGTHS

 Freshness of the product

 Expertise in production with state-of-the-art production facility
 Exclusive Distributors
 Premium brands like Dunhill and Benson & Hedges which are
not offered by competitors

WEAKNESSES

 Inconsistency in Product quality

 Lower margins to retailers

 OPPORTUNITIES

 Can better compete with existing brands through the launch of

New Benson & Hedges
 Can cash upon existing customer loyalty

 THREATS

 Launch of Marlboro for the first time in Pakistan in July 2006

 The continuous bombardment of ITB’s

EMPLOYEES COMPENSATION &

BENEFITS
CORPORATE SOCIAL ACTIVITIES
PERFORMED