PAKISTAN

TOBACCO
COMPANY IBRAHIM MALIK 17I-1523
BASIT BANDAY 17I-1504
HAMZA KHAN 17I-1566
History

 Merged in 1947
 One of the first multinationals
 Affiliated with British American Tobacco
 Headquarter is situated in Islamabad
Mission Statement

 It referred as to the Champion Informed Consumer Choice

 Secondly, adult consumers are fully aware of the choices they are making
Deliver our Commitment to Society

 Ready to meet new challenges

 Take advantage of new opportunities
 To minimize impact on the environment
Vision Statement

 What is PTC’s clear vision?

Business Principle

 Strength from Diversity

 Open Minded
 Freedom through responsibility; and
 Enterprising Spirit
Mutual Benefit

 Building relationships with stakeholders

 Building long term share holder value
 Taking account of the needs of stakeholders
Products of PTC

 Capstan
 Benson & Hedges
 Gold Flake
 Dunhill
 Gold Leaf
 Embassy Cigarettes
Geographical Spread

 02 Factories
 04 Regional Trade Offices
 06 Regional Leaf Offices
 07 Warehouses
 15 Sales Offices
 26 Leaf Depots
INDUSTRY ANALYSIS

 The tobacco industry is a source of revenues, employment and foreign exchange

for the country. The industry has to pay very high excise and sales tax while
complying with various strict rules and regulations of the government. The
industry is facing high taxation
 Companies with foreign ownership
 Pakistan Tobacco Company (PTC)
 Lakson Tobacco Company (LTC)
 Premier Tobacco Industry (PTI).
INDUSTRY ANALYSIS

 The major product of this industry is cigarettes.

 Other than that, other products include cigars, ‘Bidi’, ‘Niswaar’, and tobacco for
pipe and ‘Huqqua’.
 In Pakistan cigars and pipe tobacco are imported while the other products are
locally manufactured.
 The production facilities for ‘Niswaar’, ‘Bidi’, and ‘Huqqua’ tobacco constitutes
the unorganized sector and very little data is available
SWOT ANALYSIS

• Strengths:
1. Strong distribution network
2. 1st MNC to start tobacco processing in the area
3. Biggest FMCG
4. Efficient time delivery (within 3 days from production)
5. Consistent quality management of whole product range
6. Strong brand name and image in customers mind
7. Market leader
SWOT ANALYSIS
• Weaknesses:
1. Price gap is large between average and premium products (no in-between products)
2. Low profit margin, highly dependent on volume for profit realization
3. Other than its three main brands Dunhill, Captain and Gold-leaf other don’t have a significant
demand
4. Decrease in prices of almost half the product range
5. Decreased prices to capture more market share and reposition prices in the minds of the
consumers.
6. Considering its vision statement they can plan business ventures beyond tobacco products
7. Introduce products between the extreme ends products
8. Innovate new flavors and products like electric cigarettes
SWOT ANALYSIS

• Opportunities:
1. Industry Growth
2. Young smokers
3. Promising mid Tar segment
SWOT ANALYSIS

 Threats:
1. Illicit cigarettes
2. Levy of heavy taxes and duties
3. New products like vape and e-cigarettes are selling which can substitute tobacco
cigarettes.
IE MATRIX
Porters Five Forces Model Analysis

 Bargaining power
 Threat of competition
 Threat of new entrants
 substitutes
Space Matrix
Quantitative Strategic Planning Matrix
FINANCIAL OBJECTIVES

 To increase and maintain the market share of the company to 44-45% for the next
3 years
 To increase the annual sales by 8%
 To reduce the cost of sales by 12%
 To increase the debt to equity ratio to at least 1:2
STRATEGIC OBJECTIVE

 To make the production and supply chain more efficient by integrating backwards
 To Reduce product prices
 To reduce tax expenses
 To diversify products and target new segments
Recommended Strategies

 While running endless reviews from the matrixes and assessing their monetary situations
and Judging Pakistan tobacco company qualities and sorting out in which territories they
need to improve, we have made recommendations that may help improve their
advancement and may even prompt future development.
Recommended Strategies
 Competitive profile Matrix

 Space matrix

 BCG Growth Share Matrix

 Grand Strategy Matrix

 Quantitative Strategic Planning Matrix

Proposed Strategies

 Building up the privilege new items

 Knowledge about the opposition
 Recruit nearby specialists
 launched a new products
THANK YOU!