Term Paper

On
BAT- British American Tobacco

Prepared for

Prof. Dr. Md. Shaikh Rafiqul Islam

Professor,
Department Of Marketing
Jagannath University

Prepared by
Name ID

Samiul Islam M22020204558

MD. Sojol Ahmed M22020204576

Md. Asaduzzaman M22020204578

Mahfuzul Alam M22020204585

MBA, Department of Marketing

Jagannath University

10th April, 2023

10th April, 2023

Prof. Dr. Md. Shaikh Rafiqul Islam

MBA, Department of Marketing
Jagannath University

Dear Sir,

Subject: Submission of Group Term Paper.

It is our earnest pleasure to submit the Term Paper on “BAT- British American Tobacco”
which has been assigned to us as a requirement of course fulfillment for the “Marketing
Management” course.

We would like to thank you for giving us this unique opportunity to further enhance our
knowledge on the principles and applications of marketing management. We are truly
honored to have you guiding us with your immense repository of knowledge and experience.
We sincerely hope that we will be able to fulfill your expectations and do justice in capturing
the true essence of your teachings in this assignment.

This paper has been extremely interesting to work on as it has given me the opportunity to
have a detailed marketing management on BAT- British American Tobacco. And how it has
been impacting the tobacco industry as a whole. We have done this assignment with our
utmost sincerity and hope that you will appreciate this endeavor.

Sincerely yours,

Name ID
Samiul Islam M22020204558
MD. Sojol Ahmed M22020204576
Md. Asaduzzaman M22020204578
Mahfuzul Alam M22020204585

i
 Executive Summary

British American Tobacco (BAT) is a leading multinational tobacco company based in the
United Kingdom. The company has a presence in over 200 countries and is known for its
popular cigarette brands such as Lucky Strike, Dunhill, and Pall Mall. BAT has also been
expanding into the emerging market of e-cigarettes and has invested in companies such as
Reynolds American and Juul Labs. However, the company faces increasing scrutiny and
regulation due to the negative health effects of tobacco products and the tobacco industry's
history of targeting youth and vulnerable populations. Despite this, BAT remains a profitable
and influential player in the global tobacco industry.

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Table of Contents
1.0 Introduction..........................................................................................................................1

1.1 Objective..........................................................................................................................2
1.1.1 Broad Objective.........................................................................................................2
1.1.2 Specific Objectives....................................................................................................2
1.2 Scope................................................................................................................................2
1.3 Methodology....................................................................................................................3
1.4 Limitations.......................................................................................................................3
2.0 Company Overview.............................................................................................................4

2.1 Vision, Mission, Values...................................................................................................4

2.1.1 Vision.........................................................................................................................4
2.1.2 Mission......................................................................................................................4
2.1.3 Values........................................................................................................................5
2.2 History and Milestones.....................................................................................................5
2.3 Products and Services.......................................................................................................6
2.4 Adjacent Businesses.........................................................................................................6
2.4.1 Financial Services......................................................................................................6
2.4.2 Infrastructure Services...............................................................................................7
3.0 Industry Overview...............................................................................................................8

3.1 Telecom Industry Scenario...............................................................................................8

3.2 Telecom Regulatory Environment...................................................................................8
3.3 Price Floor and Price Ceiling...........................................................................................9
3.4 Industry Outlook and Possible Future Developments....................................................10
4.0 Economic Analysis of Grameenphone...............................................................................11

4.1 Customers and Average Revenue..................................................................................11

4.2 Revenue Performance....................................................................................................12
4.3 Cost and Margin Review................................................................................................14
4.4 Profit after Tax...............................................................................................................15
4.5 Capital Expenditure (Capex) and Network Updates......................................................15
5.0 Socio-Economic Impact of Grameenphone.......................................................................16

5.1 Contribution to the National Economy..........................................................................17

5.2 Social Endeavors............................................................................................................18

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6.0 Conclusion.........................................................................................................................18

Appendix..................................................................................................................................19

References................................................................................................................................20

List of Figures
Figure 1.1: Shareholding Structure of Grameenphone..............................................................1
Figure 4.1: Total Subscription (in thousands)..........................................................................11
Figure 4.2: ARPU & AMPU....................................................................................................12
Figure 4.3: Revenue Composition...........................................................................................12
Figure 4.4: Mobile Communication Revenue Composition....................................................13
Figure 4.5: Data & VAS Revenue Contribution......................................................................13
Figure 4.6: EBITDA & EBITDA Margin................................................................................14
Figure 4.7: Profit Before Tax, Profit After Tax and Depreciation & Amortization................15
Figure 4.8: Capex (Mn BDT)...................................................................................................16
Figure 5.1: Year-wise Contribution to the National Exchequer as of 31 December 2016......17

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1.0 Introduction

British American Tobacco (BAT) is a multinational tobacco company headquartered in

London, United Kingdom. The company was established in 1902 and has since grown to
become one of the largest tobacco companies in the world, with operations in more than 180
countries.

BAT produces and sells a range of tobacco products, including cigarettes, cigars, and
smokeless tobacco. The company's portfolio includes well-known brands such as Dunhill,
Lucky Strike, and Pall Mall, as well as newer products such as Vype e-cigarettes.

In addition to its core tobacco business, BAT has also invested in other areas such as
pharmaceuticals, biotechnology, and consumer products. The company has a strong
commitment to sustainability and has implemented initiatives to reduce the environmental
impact of its operations, promote responsible farming practices, and support the communities
where it operates.

BAT faces significant challenges in the current regulatory environment, including increasing
restrictions on tobacco advertising and marketing, as well as growing public concern about
the health risks of smoking. To address these challenges, the company has been diversifying
its product portfolio and investing in alternative nicotine delivery systems such as e-cigarettes
and vaping devices.

Overall, BAT remains a major player in the global tobacco industry, with a strong brand
portfolio and a presence in many of the world's largest markets. However, the company faces
a rapidly changing landscape and will need to continue to adapt its strategies and operations
to remain competitive and sustainable in the long term.

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2.1 Industry Analysis

The tobacco industry, in which British American Tobacco (BAT) operates, has experienced
significant challenges in recent years due to increased regulatory pressure, changing
consumer preferences, and growing public awareness of the health risks associated with
tobacco use. However, the industry remains a significant global market with opportunities for
growth and profitability.

One major trend in the tobacco industry is the shift towards reduced-risk products such as e-
cigarettes and vaping devices. BAT has been investing heavily in this area, with products
such as Vype and glo heating tobacco systems. This trend reflects changing consumer
preferences, particularly among younger generations who are increasingly concerned about
the health risks associated with traditional tobacco products.

Another trend in the tobacco industry is the growing demand for premium and super-
premium brands. This has resulted in increased competition among tobacco companies to
differentiate their products and create brand loyalty. BAT has responded by focusing on
developing strong brand portfolios and marketing strategies, particularly in emerging markets
where there is potential for growth.

However, the tobacco industry continues to face significant regulatory challenges,

particularly in developed markets where smoking rates are declining. Governments are
increasingly implementing policies to discourage tobacco use, including increased taxes on
tobacco products, graphic health warnings on packaging, and restrictions on advertising and
promotion. BAT has responded by investing in reduced-risk products and diversifying its
product portfolio to include non-tobacco products such as nicotine pouches.

Overall, the tobacco industry remains a significant global market, but is facing significant
challenges due to changing consumer preferences and regulatory pressures. BAT has
responded by investing in reduced-risk products, diversifying its product portfolio, and
developing strong brand portfolios and marketing strategies. The company will need to
continue to adapt and innovate in order to remain competitive and sustainable in the long
term.

2.2 Mission

Our focus is on driving high performance; developing the next generation of leaders; valuing
the diversity of our employees; encouraging and rewarding entrepreneurial behaviour; and
creating an engaging culture where individuals and teams can be successful.

2.3 Vission

We have the confidence to passionately pursue growth and new opportunities while accepting
the considered entrepreneurial risk that comes with it.

2.4 CSR

Across the Group, £19.0 million was reported for community investment programmes in
2021, including £12.6 million in cash spend and a further £6.4 million estimated for in-kind
donations.

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3.1 Methodology
The methodology employed for research about British American Tobacco (BAT) would
depend on the specific research question or objective. However, generally speaking, the
methodology would likely involve a combination of primary and secondary research
methods.

Primary research methods might include surveys, interviews, focus groups, or other forms of
data collection that involve direct engagement with individuals or organizations relevant to
the research question. For example, if the research question is about the effectiveness of
BAT's marketing strategy in a specific market, primary research might involve conducting
surveys of consumers or interviews with industry experts and stakeholders.

Secondary research methods might include the analysis of existing data sources, such as
market research reports, industry publications, financial statements, or news articles. This
type of research can help provide context and background information on the industry and
the company, and can be used to identify trends or patterns that might inform the research
question.

The methodology might also involve a review of relevant literature, including academic
research, policy documents, and other relevant sources of information.

Overall, the methodology employed for research about BAT would be designed to provide a
rigorous and comprehensive analysis of the specific research question or objective, using a
range of data sources and research methods.

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4. Marketing Strategy issues:

One marketing strategy issue that British American Tobacco (BAT) faces is the increasing
restrictions on tobacco advertising and promotion in many countries. Governments around
the world are implementing policies aimed at reducing tobacco use, including restrictions on
advertising and promotion of tobacco products.

As a result, BAT and other tobacco companies have had to find new ways to reach consumers
and build brand awareness. One approach that BAT has taken is to focus on the development
of reduced-risk products such as e-cigarettes and vaping devices. These products can be
marketed as a less harmful alternative to traditional tobacco products, and can help to
differentiate BAT's brand from other tobacco companies.

Another strategy that BAT has employed is to focus on developing strong brand portfolios
and marketing campaigns in emerging markets where there is potential for growth. In these
markets, there may be fewer restrictions on tobacco advertising and promotion, and BAT can
leverage its global brand recognition to build market share and brand loyalty.

However, BAT also faces challenges in these markets, including increasing competition from
local tobacco companies and growing public awareness of the health risks associated with
tobacco use. BAT will need to continue to adapt its marketing strategies and product
offerings in order to remain competitive and sustainable in the long term.

Overall, the marketing strategy issue facing BAT is the need to find new ways to reach
consumers and build brand awareness in the face of increasing regulatory pressure and
changing consumer preferences. By focusing on reduced-risk products and developing strong
brand portfolios, BAT can continue to be a major player in the global tobacco industry.

4.1 STP of BAT

STP stands for Segmentation, Targeting, and Positioning, which are key elements of a
company's marketing strategy. Here is how BAT employs STP:

Segmentation:
BAT segments its market based on a variety of factors such as age, income, lifestyle, and
smoking habits. For example, the company may target young adults who are interested in
reduced-risk products such as e-cigarettes, or high-income consumers who are willing to pay
a premium for premium tobacco products.

Targeting:
Based on its market segmentation, BAT targets specific groups of consumers with tailored
marketing campaigns and product offerings. For example, the company may target young
adults with social media marketing and events, or high-income consumers with luxury
packaging and branding.

Positioning:
BAT positions itself as a global leader in the tobacco industry, with a strong focus on
innovation and reduced-risk products. The company has developed a strong brand portfolio,
including well-known brands such as Dunhill, Kent, and Lucky Strike, and has invested
heavily in developing new products such as Vype and glo heating tobacco systems. BAT
positions itself as a company that is committed to sustainability, ethical business practices,
and reducing the health risks associated with tobacco use.

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Overall, BAT employs a market segmentation strategy to target specific groups of consumers
with tailored marketing campaigns and product offerings. The company positions itself as a
global leader in the tobacco industry, with a strong focus on innovation and reduced-risk
products.

4.2 Marketing Mix

The marketing mix of British American Tobacco (BAT) includes the following elements:

Product:
BAT offers a wide range of tobacco and nicotine products, including cigarettes, cigars, rolling
tobacco, and e-cigarettes. The company has also invested heavily in developing reduced-risk
products such as heated tobacco systems and nicotine pouches.

Price:
BAT uses a range of pricing strategies depending on the market and the product. In some
markets, the company offers premium products at a higher price point, while in others it may
offer lower-priced products to compete with local brands. Additionally, BAT may use
promotional pricing or discounts to encourage sales.

Place:
BAT distributes its products through a variety of channels, including direct sales to retailers,
wholesalers, and online sales. The company has a strong presence in both developed and
emerging markets, with operations in over 180 countries.

Promotion:
Due to increasing restrictions on tobacco advertising and promotion in many countries, BAT
has had to find new ways to promote its products. The company uses a variety of channels
including social media, events, sponsorships, and in-store promotions. BAT also invests in
advertising campaigns that emphasize its commitment to reducing the health risks associated
with tobacco use.

People:
As a global company, BAT employs a diverse range of people with a variety of skills and
expertise. The company values diversity and inclusion, and seeks to create a positive work
environment for its employees.

Process:
BAT has a strong focus on product development and innovation, with a dedicated research
and development team focused on developing reduced-risk products. The company also has
robust quality control processes to ensure that its products meet high standards of quality and
safety.

Overall, BAT's marketing mix is designed to appeal to a wide range of consumers in diverse
markets around the world, while also adapting to changing consumer preferences and
regulatory environments. The company's product development and marketing strategies are
focused on innovation and reduced-risk products, reflecting its commitment to sustainability
and responsible business practices.

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4.3 Service additional 3p's:
As a tobacco company, BAT does not provide traditional services in the same way that a
service-based company might. However, there are several additional P's that can be applied
to the way that BAT interacts with customers and other stakeholders:

Packaging:
Packaging is an important part of the tobacco industry, and BAT places a strong emphasis on
the design and quality of its packaging. The company uses high-quality materials and designs
that appeal to its target markets. In some cases, packaging may also be used to communicate
information about the product, such as health warnings or information about reduced-risk
products.

Public relations:
As a controversial industry, tobacco companies such as BAT need to manage their public
image carefully. The company invests in public relations activities such as corporate social
responsibility programs, community outreach, and partnerships with non-profit organizations.
BAT also responds to media inquiries and works to address concerns from stakeholders about
the health and social impacts of tobacco use.

Partnerships:
BAT also works with a range of partners across different industries. For example, the
company may partner with retailers to promote its products, or work with research
institutions to develop new products. BAT also engages with other stakeholders such as
regulators, government agencies, and industry associations to help shape policy and
regulation in the tobacco industry.

Overall, while BAT does not provide traditional services, the company uses additional P's
such as packaging, public relations, and partnerships to interact with customers and other
stakeholders in a variety of ways. These additional P's are an important part of the company's
overall marketing strategy and help to shape its relationship with customers, regulators, and
other stakeholders.

4.4 Marketing Tactics

As a global tobacco company, British American Tobacco (BAT) uses a range of marketing
tactics to promote its products and reach consumers around the world. Some common
marketing tactics used by BAT include:

Advertising:
BAT uses various forms of advertising, including television, print media, online advertising,
and billboards. The company's advertisements typically focus on the quality and taste of its
products, and may also feature messages about reducing the health risks associated with
smoking.

Promotions:
BAT may use promotions to encourage sales of its products. These may include discounts,
coupons, or other incentives such as free samples or gifts with purchase. Promotions may be
targeted at specific consumer groups or markets, depending on the company's marketing
goals.

Sponsorship:
BAT may sponsor events, teams, or other organizations as part of its marketing strategy. For
example, the company has sponsored Formula One racing teams, music festivals, and other
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cultural events. Sponsorship allows the company to build brand awareness and reach new
audiences.

Point-of-sale marketing:
BAT also invests in point-of-sale marketing strategies to reach consumers at the retail level.
This may include in-store displays, signage, and other materials designed to attract customers
and promote its products.

Digital marketing:
BAT uses a range of digital marketing tactics, including social media advertising, influencer
marketing, and email marketing. The company also operates its own websites and online
stores where customers can purchase its products.

Overall, BAT uses a range of marketing tactics to promote its products and reach consumers
around the world. The company's marketing strategies are designed to appeal to a wide range
of consumer groups, while also adapting to changing regulatory environments and consumer
preferences.

4.4 Financial Projection

Due to increasing awareness about the harmful effects of smoking, tobacco companies face
challenges in maintaining their growth rates. However, some tobacco companies like BAT
have adapted to these challenges by investing in reduced-risk products such as e-cigarettes
and heat-not-burn tobacco products.

According to industry reports, the global tobacco market is expected to continue to grow at a
modest rate over the next few years, driven by increasing demand in emerging markets.
However, the growth rate is expected to be slower than in previous years due to factors such
as increased regulation, declining smoking rates, and increased competition from reduced-
risk products.

Overall, while the tobacco industry is facing challenges, companies like BAT are likely to
continue to adapt and invest in new products and markets to maintain their growth rates.
However, the financial projections for individual companies will depend on a range of factors
including market conditions, regulatory environments, and consumer preferences.

4.5 Implementation and control

Implementation and control are crucial aspects of any marketing strategy, and BAT uses a
range of tools and processes to ensure that its marketing strategies are effectively
implemented and monitored. Some examples of implementation and control processes used
by BAT include:

Marketing plan development: BAT's marketing strategies are developed based on extensive
research and analysis of market conditions, consumer trends, and other factors. The
company's marketing plans are typically developed at the regional or local level, and are
aligned with the company's overall marketing goals.

Budgeting and resource allocation: Once the marketing plan is developed, BAT allocates
resources and budgets to each component of the plan. This ensures that sufficient resources
are available to effectively implement each marketing initiative.

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Performance tracking: BAT monitors the performance of its marketing strategies using a
range of metrics, such as sales data, market share, and consumer feedback. This allows the
company to adjust its marketing strategies in real-time based on changing market conditions.

Regulatory compliance: As a tobacco company, BAT is subject to strict regulations in many

countries. The company has established compliance procedures to ensure that all marketing
initiatives are in compliance with local regulations and restrictions.

Stakeholder engagement: BAT engages with a range of stakeholders, including consumers,

regulators, and public health organizations, to ensure that its marketing strategies are aligned
with stakeholder expectations and concerns.

Overall, BAT uses a range of implementation and control processes to ensure that its
marketing strategies are effectively implemented and monitored. These processes help to
ensure that the company's marketing initiatives are aligned with its overall goals, and are
responsive to changing market conditions and stakeholder expectations.

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 Conclusion

In conclusion, British American Tobacco (BAT) is a leading multinational tobacco company

that operates in over 180 countries. Despite facing challenges due to increased regulation and
declining smoking rates in many markets, BAT has adapted by investing in reduced-risk
products such as e-cigarettes and heat-not-burn tobacco products.

BAT uses a range of marketing strategies and tactics to promote its products and maintain its
market position, including segmentation, targeting, and positioning (STP), the marketing
mix, and additional 3Ps related to services. The company also employs robust
implementation and control processes to ensure that its marketing initiatives are effectively
implemented and monitored.

While the tobacco industry is facing challenges, BAT is likely to continue to adapt and invest
in new products and markets to maintain its growth rates. However, the financial projections
for individual companies will depend on a range of factors including market conditions,
regulatory environments, and consumer preferences. Overall, BAT remains a major player in
the tobacco industry, and its success in navigating the challenges of this industry will depend
on its ability to continue to innovate and adapt to changing market conditions.

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 References

British American Tobacco (BAT) is a British multinational tobacco company that operates in
over 180 countries. The company is one of the largest tobacco manufacturers in the world
and is listed on the London Stock Exchange and the Johannesburg Stock Exchange.

If you want to learn more about British American Tobacco, you can visit the company's
official website at https://www.bat.com/. On the website, you can find information about the
company's history, its leadership team, its products, and its sustainability initiatives.

In addition to the company's website, there are also several news outlets that cover British
American Tobacco and its activities. Some of these include:

Reuters: https://www.reuters.com/companies/BATS.L
Bloomberg: https://www.bloomberg.com/quote/BATS:LN
Financial Times: https://www.ft.com/companies/british-american-tobacco-plc
These sources provide up-to-date news and analysis about British American Tobacco,
including its financial performance, regulatory issues, and social responsibility effort

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 Appendices

 This could include additional financial data, such as revenue breakdown by region or
product, balance sheets, income statements, and cash flow statements.
 This could include a more detailed analysis of the tobacco market, including data on
market size, growth trends, and competitive landscape. It could also include data on
the regulatory environment in different markets.
 This could include examples of BAT's marketing and advertising materials, such as
print ads, television commercials, and promotional materials.
 This could include BAT's CSR reports, which provide details on the company's
sustainability initiatives, including environmental, social, and governance (ESG)
practices.
 This could include reports on BAT's research and development initiatives, particularly
related to alternative nicotine products, such as e-cigarettes and vaping devices.
 This could include legal and regulatory documents related to BAT, such as lawsuits,
regulatory filings, and government investigations.

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