History of tobacco

The history of tobacco cultivation in Pakistan is one of the rare success stories in agrarian
cultivation and the adoption of modern farming practices in the country.
Pakistan went from being a net importer of tobacco in 1948, which is when Pakistan Tobacco
Company started operations, to becoming self sufficient in tobacco production in 1969.
Although tobacco is grown throughout the country, the primary source of this integral raw
material is the NWFP where soil and climatic conditions suit tobacco cultivation the most. The
province has been the focal point of our efforts in terms of tobacco-related activities in Pakistan,
and as a result, produces around three-fourths of the tobacco leaf grown in the country. The
province grows the three most widely used types of tobacco namely, Flue Cured Virginia (FCV),
Burley and Nicotiana Rustica (White Patta).

HISTORY OF PTC
Pakistan Tobacco Company, as the largest cigarette manufacturer in Pakistan, has a special
relationship with the land and people of the NWFP. The fruit of these activities is that in just 30
years Pakistan became the 5th largest tobacco producer in the world and 4th in highest yield.
In 1948, we pioneered the cultivation of Virginia tobacco in Pakistan with an average yield per
hectare of 861 kg. Through our continuous efforts and the hard work put in by our contracted
farmers, the yields have increased significantly to 2,400 kg/hectare. Prior to that native varieties
like Jati & Motihari were cultivated mainly in the eastern part of Pakistan (Bangladesh). All the
Virginia tobacco was imported from the USA & India
Flue Cured Virginia tobacco is now the most widely grown and widely used type of cigarette
tobacco in Pakistan and the total production of this high value commodity has increased from
23.8 million kgs in 1967-68 to 66 million kgs in 2007. Pakistan is now the 7th largest producer
of FCV in the world.
As a result of our direct efforts, the current tobacco production in the country exceeds 100
million kilograms per year, although what is perhaps more important is the types of tobacco
grown in the country. The share of higher value FCV, Burley and White Patta as opposed to
lower priced filler tobacco has grown tremendously over the years, drastically increasing the
returns for farmers and eliminating our reliance on imports for higher quality tobacco.

VISION STATEMENT OF PTC

Vision First Choice for Everyone

MISSION STATEMENT OF PTC

Transform PTC to perform responsibly with the speed, flexibility and enterprising
spirit of an innovative, consumer focused company.

OBJECTIVE OF THE COMPANY

1. Our marketing will not mislead about the risk of smoking.
2. We will only market our products to adults smokers ranges from 20 to 40.
3. We wont seek to influence the consumers decisions.
4. One of the recent objective related with corporate social responsibility that is green
Pakistan.

SWOT ANALYSIS OF PTC

Strength
People and HRM
The employee and HRM departments employees are very efficient and they have Lack of
Complete Weakness.
Strength Financial Muscle
Financially Pakistan Tobacco Company is very strong. In 2012 profits is 12 time higher than
2011.
BAT Backing
BAT stands for British American tobacco which is the parent company of Pakistan tobacco
company so thats why the back is very strong.
Product Innovation
The research and development department of PTC is very strong. They made quik innovation
regarding their products.
Marketing
The marketing department of PTC is very efficient and the employee and managers in marketing
side is very talented.
Operation/supply chain
The operation and supply chain process is very good .
CSR corporate social responsibility
The CSR activity which is started by the company is green pakistan.
Technology

Technology used by PTC is latest and company made advancement in technology with time to
time.
Quality of products
The quality of the products is very good compared with others local companies or tobacco
manufacturers.
Distribution channel
Distribution channel of Pakistan tobacco company is large enough for the distribution of their
brands to different areas of the country.
Market leader
Pakistan Tobacco Company is the market leader company. According to BCG matrix it lies in
the star quadrant.

Weaknesses

In Pakistan Tobacco Company there is complete lack of vertical integration.

PTC is part of BAT group of company, so therefore they cannot take decision very
quickly without the permission of BAT.

Opportunities

The first and important opportunity to PTC is the growth of tobacco industry in Pakistan.
Young smokers are also one of the opportunities for tobacco sector and also for PTC.
Promising mid tar segment is also an opportunity for Pakistan tobacco company.

Threats

Television advertisement banned is threat for PTC.

Anti smoking ordinance 2002 is also a potential threat for PTC.
PTC is part of BAT due to delay in decision making the local firm gaining the shares and
experiences.
Smuggling and illicit marketing is also threat for PTC.
One of the major threats if Phillip mores take over Lakson tobacco.
Day to day changes in tax is also threat for PTC.

SWOT MATRIX

According to swot matrix which I developed for Pakistan tobacco company that shows total 9
cell in matrix 4 cell showing strength, weaknesses, opportunities and threats and remaining 4 cell
showing 4 different strategies like WO,SO, ST, WT. On the basis of these strategies I proposed
two strategies such as product development, market penetration.

PTC BCG MATRIX

According to Boston consultant model the Pakistan tobacco company different brands lies in
different quadrant, like Benson, Dunhill, and gold leaf lies in star, while gold flake lays in
question mark and capstan lies in cash cow. But if I look it from the perspective of whole
company the PTC lies in STAR because PTC has high market share and high market growth.
Market share of PTC IS 49% & growth is 17%.

SPACE MATRIX
SPACE stands for strategic position& action evaluation matrix. In the time of development of
PTC space matrix, I gave weightages to its variable like I gave weight to financial strength,
industry growth, competitive advantage and environmental stability, as a results that we see in
diagram that shows that PTC lies in aggressive quadrant & I proposed 3 strategies on the basis of
SPACE matrix which named as market penetration, product development and diversification.

QSPM (quantitative strategic planning matrix)

According to QSPM I have proposed some strategies for Pakistan Tobacco Company.
With the help of QSPM basically we plane some strategies for an organization. So according to
the above matrix in QSPM there is two dimensions one is internal factor and second is external
factor and on the basis of each internal and external factor I give rating to every factor. And the
Pakistan tobacco company QSPM showing three strategies diversification (related& unrelated),
product development, and market penetration. I proposed diversification as plane 1 and product
development is plane 2. Because diversification have more rating than others two.
In diversification PTC has the option of related diversification; if they started the
production of sager and targeted the upper segments specially plolitions. PTC has also the option
of unrelated diversification if they starts making of its own Thoth phase for smokers. While in
product development they include mental flavors etc. in their brands.

PTC Brands
PTC consumers form the basis for all our brand offerings

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 Tobaccos Asia Pacific region. The
key to Gold Flakes 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