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PART-1.

1
INTRODUCTION
COMPANY OVERVIEW
COMPANY MISSION
COMPANY VISION
1
1.1 Company Overview
1.1.2 British American Tobacco Group
The British American Tobacco Group is one of the worlds leading international
manufacturers of cigarettes, marketing its products in almost every country
worldwide. t is clear leader in a competitive and fast moving business. The group
consists of four tobacco subsidiaries and they are!
British American Tobacco "ompany #imited, which produces cigarettes in
over $% countries for domestic and e&port markets in 'urope, Australasia, #atin
America, Asia and Africa.
Brown ( )illiamson Tobacco "orporation is the third largest tobacco
company in the *+.
British American Tobacco ,Germany- G.B/ is a leading cigarette company in
Germany.
+ou0a "ru0 +.A. is the market leader in Bra0il and a world leader in tobacco
leaf e&port.
BAT subsidiaries operate in more than 12 countries employing around 134,222
people. .ulti5national, multi5cultural and multi5disciplined, British American Tobacco
Group, a world5class group of tobacco companies. BAT offers a brand for every taste
and preference.
1.1.3 British American Tobacco
British American Tobacco, the second largest Tobacco "ompany in the world is also
the worlds most global tobacco company. Based in #ondon, *6, it operates in more
than %2 countries with the strength of 122,222 employees and sells more than 7%2
brands in more than 182 markets worldwide. Tracing its heritage back to a 9oint
venture formed by the mperial Tobacco "ompany of the *nited 6ingdom and The
American Tobacco "ompany of the *nited +tates in 1127, today:s British American
Tobacco "ompany was born on the world stage. '&tent of operation of British
American Tobacco "ompany is given below!
7
America5;acific ,*+A, <apan, +outh 6orea-
Asia5;acific ,"hina, ndo5"hina, Taiwan, +outh5'ast Asia, Australasia-
'urope ,%2 countries including =ussia-
#atin America ,"entral ( +outh America, .e&ico, "aribbean-
Africa ,.ore than %2 countries-
.'+"A ,.iddle 'ast, +outh ( "entral Asia
Today British American Tobacco sells the leading brands in over 42 markets
covering 127 countries, has more than 722 brands worldwide, employs more than
%%,222 people and produces some 7 billion cigarettes every day. .ore than a billion
people across the globe en9oy smoking tobacco. >ne in every eight chooses a
British American Tobacco brand. n order to support the company:s business goals
the merger of British American Tobacco with =othmans nternational had been
announced on 11 <anuary 1111. This global merger was completed on 3
th
<une
1111. This brings together the number 7 and $ players which together will boost a
combined volume e&ceeding 122 billion cigarettes around the world with some
172,222 employees and a worldwide market share of 1? percent ,;hillip .orris has a
13 percent share-. The merger is a ma9or step forward in
British American Tobaccos vision of becoming the worlds leading nternational
Tobacco "ompany.
Leading Players in the World Tobacco Industry
Altadis, 2.10%
Other (China),
48.00%
Philip Morris,
18.70%
British Amerian
!o"ao ,
17.10%
#allaher, $.10%
%mperial
!o"ao, $.&0%
'apan !o"ao,
7.70%
4 Figure: 1 Leading payers in the word
Tobacco !ndustry
1.1." British American Tobacco Bangadesh #BATB$
British American Tobacco Bangladesh a subsidiary of British American Tobacco was
established in 1137 and since than it has been the market leader in the country.
Based in @haka the company has one packaging factory in @haka and one leaf5
processing factory in 6ushtia. The company currently employees more than 722
managers and 1422 employees.
n its brand portfolio British American Tobacco Bangladesh has a wide range of
cigarettes for different consumer segments. +tarting from Benson ( /edges ,#ights
( =egular-, which are currently imported from 'urope to locally produced
nternational Brands such as +tate '&press %%% and <ohn ;layer Gold #eaf ,#ights
and =egular- and also Aational Brands like "apstan, +tar family and +cissors family
are members of the portfolio.
British American Tobacco Bangladesh is involved in various community services in
the country. Afforest station is the pet pro9ect of the company, which was started in
1182 and till now the company has planted 47 million trees across the country. n
this regard, British American Tobacco Bangladesh has won many awards during last
78 years but the most prestigious of all are ;rime .inister Afforest station Award in
1114, ;residents
Award in Agriculture in 113%, +ports <ournalist Award and BA> Award in 1118.
Besides this, the company is also involved in vegetable seed multiplication pro9ect,
supports philanthropic organi0ations like +andhani and other +ocial and "ultural
groups.
1.1.% &eation with the parent company
The following figure shows the flow from the parent company to BATB!
$
BRITISH AMERICAN TOBACCO
GROUP
Brown &
Williams Tobacco
Corp.
Briis! Am"rican
Tobacco #G"rman$%
GmbH
So&'a Cr&' S.A.
America5;acific
'urope
Africa
#atin America
Asia5;acific
.'+"A
BATB
Briis! Am"rican
Tobacco Compan$
().

1.2 Company 'ision
CTo e&tend our leadership through )orld "lass performanceD
BATB is already a leader in the Bangladesh cigarette market. n the future the
company wishes to e&tend the present leadership through world class performance.
The company believes that the management already possesses world class product
and people. =ight now they need to concentrate on improving their process
capability. This company proved itself to be a world class company by achieving the
prestigious .=; recognition. Aow the whole process is going to accelerate more
%
;arent "ompany
+ubsidiaries
=egional >peration
"ompany in "oncern
Figure: 2 R"laion wi! BAT Gro&p
and altogether it will reach the level of world class performance and gradually it will
e&tend its leadership in all aspects in a very competitive environment.
1.3 Company (ission
@ouble the net revenue by 7228
The company is planning to double its net revenue by the year 7228. That means in
the span of % years time the revenue must rise at a tremendous rate. This reEuires a
continuous and consistent growth in revenue in the coming years. >ne thing must be
noted here that the target is to increase the revenue rather than the profit. This is
because BATB is a responsible company and wants to generate profit for all its
stakeholders and create and maintain a win5win situation for all.
Growing our share of the total tobacco market
The biri segment has captured the ma9or share of the total tobacco market. BATB
plans to up trade the smokers in the country and wishes to transfer their smoking
habit from biri to cigarette. This is also coherent with the first ob9ective of the mission
as more people will start smoking BAT brands instead of biri, more the revenue will
increase.
@ominating key identified segments
The total brand portfolio of the company is divided into 4 ma9or segments5 high,
medium and low. BATB is already dominating the high and medium segment in the
market. But it is facing tremendous competition in the low segment. BATB wishes to
dominate all the key identified segments and they are planning accordingly. The
company doesnt have any brand competing in the very low segment.
1." Guiding )rincipes and vaues
BATs Global Guiding ;rinciples 5 Breedom through =esponsibility, >pen .inded,
'nterprising +pirit, and +trength from @iversity 5 describe key characteristics of the
?
group, which BATB aims to nurture. BATB upholds the following values, which are in
line with the parent company!
1.% BATB*s Corporate +ogan
n a recently held, companywide competition, a corporate slogan was generated
from among the employees of British American Tobacco Bangladesh. The results
yielded more than 4%2 responses, out of which the following slogan was selected as
the corporate slogan of BATB. This slogan will represent BATB on all promotional
and official banners, pads, envelopes etc.
Success and Responsibility Go Together
1., BATB*s -ay o. -or/ing
'nsure consumer focus is at the heart of every business process.
3
ACHIE*EMENT
1. *ision We are inspired by our dreams
2. Map We believe in our plans
3. Cons&m"r +oc&s We live for our consumers
COMMITMENT
4. Con+i)"nc" We will win.
5. San)ar)s We keep raising our sandards
!. ,ri-" We are innovaive and energeic.
"able: 1 BATB 'aues
Become the benchmark performer compared to world class B."G
companies.
@rive innovation and individual empowerment to the heart of our organi0ation.
Be admired, respected and trusted by stakeholders.
@o our utmost to ensure that products are en9oyed only by adults who are
continually informed of the risks associated with smoking.
Aurture a progressive, dynamic and transparent working environment and
culture.
BATB recogni0ed as a leading partner in the development of Banglades.
8
PART-1.2
BATB: On the Move
Hito!i"#$ B#"%&!o'n( o) BATB
St!'"t'!e o) BATB
*'n"tion#$ A!e#
To+#""o C'$tiv#tion in ,'hti#
EHS Po$i"- #n( A))o!t#tion P!o&!#.
/o'!ne- to0#!( C$# A
1
2.1 0istorica Bac/ground o. BATB
British American Tobacco Bangladesh ,BATB- "ompany #imited is the recogni0ed
leader in Bangladesh cigarette market, with a long established reputation for
providing its consumers with consistently high Euality brands. The 9ourney of this
company started long back. BATB was established back in 1112 as mperial
Tobacco "ompany #td. with head office in "alcutta. n the very beginning mperial
Tobacco "ompany ,T"- launched a branch office at .ouliviba0ar @haka in 117?.
"igarettes were made in "arreras #td., "alcutta. mperial and "arreras merged into
a single company in 11$4. After the partition in 11$3, cigarettes were coming freely
from "alcutta, but introduction of customs barriers in 11$8 between ndia and
;akistan interrupted the smooth flow of cigarettes from "alcutta to 'ast ;akistan. n
.arch 21, 11$1 ;akistan Tobacco "ompany ,;T"- came into e&istence with head
office in 6arachiF with the assets and liabilities of T" #imited held in ;akistan. The
then 'ast ;akistan >ffice was situated in Alico Building, .oti9heel. n order to meet
the increasing demand, the first factory in the then 'ast ;akistan was established in
"hittagong in 11%7. Brom this time onwards reEuirements for cigarettes for 'ast
;akistan markets were met from products manufactured in 6arachi. n 11%$ ;T"
established its first cigarette factory although high5grade cigarettes still came from
)est ;akistan. The @haka factory of ;T" went into production in 11?%. After the
)ar between ndia and ;akistan in 11?%F the import of tender leaf from ndia for the
production of Biri was stopped. This gave a big boost to cigarette business. t was at
that time the 'ast ;akistani entrepreneurs set up 1? cigarette factories in this region.
After independence, Bangladesh Tobacco "ompany ,;vt.- #imited was formed on 27
Bebruary 1137 under the "ompanies Act 1114, with the assets and liabilities of ;T".
+hareholding position for G>B and BAT was 1!7. BT" ,;vt.- was converted into a
public limited company on 24 +eptember 1134. British American Tobacco played a
pivotal role in BT":s creation in 1137 and since then has been involved in BT":s
development every step of the way. To pronounce the successful relationship with
British American Tobacco, BT" has changed its name and identity to British
American Tobacco ,BAT- Bangladesh "ompany #imited on .arch 1118.
12
11
(arch 11"1 Bormation of ;akistan Tobacco "ompany ,;T"-
11%" ;T" opened its first factory in Bou0darhat, "hittagong
11,2 >pened a branch in .oulaviba0ar, @haka
11,% Building of a factory in .ohakhali, @haka
2ebruary 1132 ncorporation of Bangladesh Tobacco "ompany with a paid up
capital of Tk. $22 million
(arch 224 1115 "hanged its identity from Bangladesh Tobacco "ompany ,BT"- to
British American Tobacco Bangladesh "ompany #imited ,BATB-
6ovember274
2777
BAT Bangladesh recogni0ed as "#A++ A "ompany in % chapters.
277, The "ompany is leading Bangladeshs cigarette industry with a
market share of more than %2G
"able: 2
BATB Hisor$
2.2 +tructure o. BATB
BATB is a public limited company. .anagement @irector is the operational head and
appointed by the British American Tobacco. /ead of every department carries out their
17
Asia 8
)aci.ic
British American
Tobacco
Bangadesh Co.
Ltd
(anaging
9irector
0ead
o.
!T
0ead o.
Trade
(ar/eting
0ead o.
Brand
(ar/eting
0ead
o.
2inanc
e
0ead o.
Operation
0ead
o. 0&
0ead
o.
CO&A
0ead
o. Lea.
9eputy
(anaging
9irector
Figure 3: +tructure o. BATB
functions with the help of line managers. @ifferent departments have different structure
according to their function and responsibility.
The CBoard of @irectorsD and '&ecutive "ommittee ,'H">- govern the overall
activities of the company. The IBoard of @irectorsI is composed of 12 members who
are called @irectors. The "hairman heads the CBoard of @irectorsD. "hief '&ecutive
of British American Tobacco Bangladesh is called the I.anaging @irectorI who is
normally appointed by IBAT /oldingsI. .anaging @irector of the company is the
chairman of the '&ecutive "ommittee.
This committee includes the head of all the functional departments
14
BOA&9 O2 9!&:CTO&+
"hairman
.anagin
g
@irector
@eputy
.anagin
g
@irector
.inanc"
,ir"co
r
=ep. of
"B
=ep. of
.inistry of
Binance
=ep of
.inistry of
ndustry and
"ommerce
=ep. of BAT
Figure 4: +tructure o. BATB
2.3 2unctiona Areas
BATB has been operating its business under the following ma9or functional areas!
;roduction
#eaf
Binance
/uman =esource
Brand .arketing
Trade .arketing and @istribution
nformation Technology
"orporate and =egulatory Affairs
Business @evelopment
"ross "ultural .anagementJ )inning in >ur )orld ,)>)-.
2.3 Tobacco Cutivation in ;ushtia
Tobacco cultivation in 6ushtia #eaf area was first introduced in 11?3 with an area of
12 acres. t was e&pected to e&pand to ?%2 acres by 1131 Blue5cured and air5cured
tobacco was cultivated in 6ushtia and the #eaf @epartment achieved self5sufficiency
in cigarette tobacco by 113%. Tobacco cultivation though registered growers and
procurement of the product tobacco is done through four leaf depots n 6ushtia.
Those depots are .eherpur, <henidah, "hechen and Allardarga #eaf @epot. 6ushtia
#eaf Bactory stands on $.41 acres of land and is located at about three kilometers
away from main town. The Green #eaf Threshing ,GLT- plant could complete the
entire leaf purchase in 111%. A team of management including the ;lant 'ngineer,
;rocessing .anager, +hift .anager, Kuality "ontrol .anager, #eaf Account and the
1$
#eaf personal .anager is managing the G#T plant. The ;lant .anager is the team
leader of G#T management team.
2.5 :0+ )oicy and A..orestation )rogram
All the activities in the manufacturing unit and Green #eaf Threshing ;lant ensure
that work is conducted in a manner to minimi0e environmental pollution. 6ushtia a
G#T has won British American Tobaccos '/+ ,'nvironment, /ealth and +afety-
.erit award for the year 111% and 111? for achieving consecutive two years of
operation with 0ero accident. The company also received the prestigious '/+ +ilver
Award for 1111 without any lost time accident in any part of the company, which was
the second year in a row.
n line with BAT:s environmental, health, and safety policy, the company is involved
in an afforestation program. The contribution of the company in afforestation
program in Bangladesh has earned recognition in the country though winning of the
;rime .inisters Trophy in 1114. n 1118 the company distributed 4.% million free
saplings in @haka through the Bonsai Aursery pro9ect. This program had caused
more than 78.% million trees planted or distributed till 1118 and is e&pected to yield
around 172,222 metric tons of timber for fuel5wood, furniture making, or construction
process in 1118. The Bood and Agricultural >rgani0ation ,BA>- has awarded British
American Tobacco Bangladesh for pioneering the development of vegetable seed
industry in Bangladesh. The company had started its vegetable seed multiplication
program in 1112 with the technical support of BA> with a view to provide Euality
vegetable saplings for free distribution amongst farmers in the tobacco growing
areas.
t is not enough for BATB to only contribute to the afforestation of the country. The
company felt the need to promote the use of alternate wood fuel for tobacco curing
by its farmers. BriEuette as an alternate was introduced to the farmers, to reduce
their dependency on trees for wood fuels. BriEuettes made of paddy husk and
sugarcane bagasse. BriEuettes can be used for cooking, in burns for curing tobacco
and brick. The company promotes BriEuette manufacturing in the tobacco growing
areas and tries to make them easily available to the farmers.
1%
A company wide safety awareness program was initiated and completed in 111?.
The ob9ective of this program was to brief employees about the techniEues to reduce
the risk of occurrence of preventable accidents. The company:s commitment to the
highest level of safety practices is recogni0ed with awards being received from the
British American Tobacco Group headEuarters in more than one year. )orkers and
management are provided regular safety training. /ard hats are reEuired during shift
work. All movable machine parts have guards to prevent workers from accidental
in9ury.
2.17 <ourney towards Cass A
At the end of 1114 the company adopted a change management program called
.=;, the acronym for .anufacturing =esource ;lanning, with the ob9ective of
becoming a world5class company with world5class systems, processes, products,
and people. The strategy for C;artnership '&cellence ;rogramD is based on a clear
understanding on meeting world5class performance and to achieve .=; "lass A.
BATB conducted series of training for the vendors and the result was very positive in
terms of Euality and delivery improvements. Back in 1113, the organi0ation was a
"lass " company. n 1111 it had achieved the status of "lass B and in this year,
7222 the company was awarded "lass A status which has made BATB the only
member in BAT group to achieve A in four categories. The categories are!
1. +trategic ;lanning
7. ;eople and Team
4. ;lanning and "ontrolling
$. Aew product development, reducing lead time
%. "ontinuous improvement
BATB has achieved "lass A in the first four categories.
1?
PART-1.1
P!o('"t 2 Se!vi"e
13
3.1 !nternationa Brand=
As a ma9or international Bast .oving "ustomer Goods ,B."G- company, BAT are
proud of their reputation for producing high Euality brands that are chosen by one in
si& of the worlds adult smokers. British American tobacco produces many local
brands to satisfy the needs of different markets. But BAT has different international
brands that are highly accepted by the consumers all over the world. Among the
international brands these are four Global @rive Brands5 @unhill, 6ent, #ucky +trike,
and ;all .all. These brands accounts for 71G of the global volumes from the
subsidiary companies.
+ome of the international brands of BAT are listed below!
;ent was introduced in America in 11%7 and is now sold in more
than 32 countries. t is a free5standing premium brand for
consumers seeking a mild and smooth taste. $% billion 6ent
cigarettes were sold in 722?. The brand achieved its fourth
consecutive year of double5digit growth, rising 1? per cent on
722% with strong growth in =ussia, 'astern 'urope and "hile.
9unhi was launched in 1123 and now sells in more than 172
countries. @unhill:s role is to establish a strong global position in
the premium J super premium segment. n 722?, total @unhill
volumes were 44 billion cigarettes, up ? per cent on 722%.
6ey markets include Australia, .alaysia, +outh 6orea and
Taiwan.
Luc/y +tri/e, launched in 1831, is one of the oldest trademarks in
the world and is now sold in more than 12 countries. t is among
the leading global brands for the premium segment and 722? saw
18
the launch of new product and packaging initiatives. Lolumes in last year rose 2.$
per cent to 77 billion cigarettes. 6ey markets include Germany, +pain and Brance.
)a (a was introduced in 1811 and is now sold in more than
?2 countries. t is BATs leading global value5for5money
brand. ;all .all delivered outstanding growth in 722?, with
volumes up $2 per cent on the previous year to $? billion
cigarettes, making it the best selling brand in the portfolio.
6ey markets include Germany, ;oland, +pain and =ussia and
Bangladesh. )hile the Global @rive Brands remain central to
BATs strategy, BAT is also increasing the profile of Logue and Liceroy.

'ogue is a super premium brand and includes the aromatic Logue
Arome. +ales are strong across 'urope, especially =ussia, and the
brand is well placed to grow where consumers are increasingly able
to trade up to premium brands.
'iceroy is sold in over 42 countries. ntroduced in 114?, key
markets for Liceroy today include =omania, the .iddle 'ast,
Turkey, Bangladesh and Argentina.
&othmans was launched in 1812 and is now sold in about 11%
countries. 6ey markets include Brance, taly, +outh Africa and
+audi Arabia.
;oo was introduced in 1144 and is now among the world:s
biggest selling menthol cigarettes. Available in more
than $% countries, 6ool is one of the fastest growing brands in
<apan and is also popular in the *nited +tates and a number
11
of #atin American countries. +mokeless snus under the 6ool brand is currently in a
pilot market by the company in <apan.
Benson > 0edges cigarettes were created for the then ;rince
of )ales in 1834. British American Tobacco acEuired the rights
to the brand in a large number of overseas markets in 11%?.
Today, British American Tobacco Group companies sell Benson
( /edges in more than 82 countries, including Australia, Aew
Mealand, Bangladesh, Aigeria, .alaysia and +outh Africa.
+tate :?press %%% was launched in 181% and is one of British
American Tobacco:s best5selling cigarettes. Aow sold in more
than %% countries, the brand is particularly popular with
smokers in "hina, Taiwan, Bangladesh and Lietnam.
)eter +tuyvesant was first launched in +outh Africa in 11%$
and then internationally in 11%3. Aow sold in around %%
countries, ;eter +tuyvesant is popular in +outh Africa, Brance,
The Aetherlands, Greece, and .alaysia. +mokeless snus is
currently being test5marketed under the ;eter +tuyvesant
brand by the company in +outh Africa as part of a year5long
consumer trial.
<ohn )ayer God Lea. is today sold in over 72 countries and is
particularly popular in ;akistan, Bangladesh, +ri #anka and
+audi Arabia. The brand dates back to the 1812s. Bor
historical reasons, British American Tobacco does not own the brand in the *6,
continental 'urope or the *nited +tates.
72
3.2 Brands in Bangadesh
British American Tobacco Bangladesh operates in key segments of the cigarette
market of Bangladesh with drive brands like Benson ( /edges, <ohn ;layer Gold
#eaf, ;all .all, +tar and Liceroy.
Benson > 0edges cigarettes were initially made for the ;rince of
)ales back in 1834. British American Tobacco acEuired the
rights of the brand in a large number of overseas markets in
11%?. Today, British American Tobacco Group companies sell
Benson ( /edges in more than 82 countries in the world. n
Bangladesh Benson and /edges was launched in 1113 and it is
dominating the premium segment of cigarettes in Bangladesh.
B(/ has a value of T6 $J stick and can be found in two different
flavours, +pecial Bilters and #ights.
Benson > 0edges Light
The Benson ( /edges #ights is a new member of B(/ family. t is a new variant of
the e&isting Benson ( /edges. t was first introduced in 1118 in @haka and
"hittagong. The ob9ective was to give the smokers more options within the same
brand and to keep pace with the modern trend of smoking light cigarettes throughout
the world.
<ohn )ayer God Lea. is one of the oldest brands of BATB in
Bangladesh that was launched in 1182 and one of the highest selling
71
brands in the .edium +egment in the market. <;G# is mostly found in the +audi
Arabia, ;akistan and +ri #anka. <;G# has a value of T6 7.%J stick.
<ohn )ayer God Lea. Light
To keep pace with the global trend of lights and to support British American Tobacco
Bangladeshs corporate ob9ectives of establishing leadership in lights segment in
Bangladesh, the management of BAT launched <;G# #ights in 1113 in some
selected outlets in +ylhet as a part of test marketing. <;G#s association with the
worldwide B5 powerboat racing was also successfully e&ploited in 1113 through a
consumer promotional event under the banner of N<;G# "arnival, which took place
in five key cities. The company launched the brand in 1118, with the uniEue product
feature of Nwhite tipping paper.
)a (a is an nternational Brand operating in more than ?2
countries in the world. ;all .all is the Birst Global @rive Brand
launched in Bangladesh in .arch 722?. 'ven though ;all .all is a
premium brand worldwide but it is under .edium +egment in
Bangladesh. ;all .all has a price of T6 7J stick, and can be found in
three flavours, Bull Blavour, #ights, and .enthol. ;all .all made
record sales in terms of volume in 7223 that was initially maintained
by +tar brand of BATB.
+tar, a local Brand launched $2 years ago still generates
leading sales in terms of volume. +tar operates in the #ow
+egment and has a price of T6 1.%J stick. +tar occupies the
leadership in the low segment outside @haka, where it has
tremendous popularity among smokers. BATB launches colorful
new packets for star during the +pring +eason in Bangladesh to
represent the true colors of Bangladesh.
77
'iceroy a newly introduced cigarette in the Bangladeshi market was
launched in 7223. Liceroy operates in the Lery #ow +egment with a
price of T6 1J stick. Liceroy was introduced to Bangladeshi market
considering the demand for a low price cigarette by the lower income
group smokers who represent a ma9ority of market share and to provide the
consumers with the smooth taste of premium cigarettes.
The success of BAT Bangladesh comes from satisfying informed adult smokers. The
company manufactures and markets high Euality and well established cigarette
brands. The Brand ;ortfolio of BAT Bangladesh consists of!
Ao.
;rice
+egment
BAT Brand
"ompetition
Brand
.ain "ompetitors
1.
Premiu
m
Benson (
/edges
.arlboro and
.arlboro #ights
@haka Tobacco,
Abul 6hair
Tobacco, <amil
Tobacco
7.
Benson (
/edges #ights
$. Medium
Segmen
<ohn ;layer Gold
#eaf
"astle
74
t
%. ;all .all
?. ;all .all #ights
3. ;all .all .enthol
8.
Low
Segmen
t
+tar Bilter
Aavy
1. +cissors
12. "apstan
11.
Very
Low
Liceroy =ich
Taste
+heikh )hite,
.arise,
+unmoon,
#egend, Bive
+tar
17.
Liceroy +mooth
Taste
PART-3
*'n"tion#$ A!e#
7$
Brand port.oio o. BAT Bangadesh "able 5:
".1 2unctiona Areas
British American Tobacco Bangladesh has several functional departments that are
integrated to give the best output for the organi0ation. The following diagram shows
the top management structure of BATB.

".1.1Corporate > &eguatory A..airs=
British American Tobacco Bangladesh is a responsible company operating within a
controversial industry. At British American Tobacco, "orporate ( =egulatory Affairs
,">=A- works to assure stakeholders, who directly or indirectly influence the
business, that British American Tobacco Bangladesh is meeting its business
ob9ectives in a manner consistent with reasonable e&pectations from the society of a
responsible tobacco company in the 71st century. .anaging regulations, prompting
corporate social responsibility and driving corporate communications are the tree
main wing of ">=A functions.
A few e&amples of the activities of ">=A are!
To ensure the principles of "orporate +ocial =esponsibility are embedded in
every function and are driven with integrity.
7%
#eaf
+upply "hain
Binance
/uman
=esource
#egal
nformation
Technology
2unctiona 9epartments in BATB
"orporate (
=egulatory
.arketing
2unctiona 9epartments in BATB Figure 5:
To develop the best comprehensive practice approach to +ocial =eporting. f
put simply, +ocial =eporting is a process for listening and responding to the
stakeholders.
To maintain a good relation ( continuous liaison with the media, regulators
and other stakeholder groups to promote the company:s image as a
responsible, reputed corporate citi0en.
".1.2 2inance 9epartment
n a competitive business environment, a commercially astute finance function is
critical for making good business decisions 5 for e&ample 5 about which brands or
countries to invest in, in evaluating and improving returns and of course, in managing
the delivery of consistent profit growth to the shareholder.
Binance managers within BATB are part of the decision5making team, a business
partner who is consulted and involved day to day, not merely reporting results and
setting budgets. /aving moved beyond the :comfort 0one: of purely technical
accountants, into added value decision support, The "ompany reEuire people who
are commercially astute, intellectually curious and passionate about business life,
not 9ust figures.
)hether you are working in ta& or treasury, or in the business partnership roles
supporting marketing, operations and the other functions, you will need e&cellent
communication and influencing skills to represent finance in the commercial arena.
Binance department:s activities within BAT Bangladesh include!
+etting and delivering against financial ob9ectives
;lanning and budgeting for optimal use of resources to grow the business and
to satisfy shareholder e&pectations
.anagement reporting to the Board on business performance, current and
future
+tatutory reporting and support of investor relations
7?
Audit and business risk management
Acting as a value adding business partner to all functions
2inancia Caendar 2775
? August '&5dividend date for 7228 interim dividend
8 August =ecord date 7228 interim dividend
13 +eptember ;ayment date 7228 interim dividend
42 >ctober Third Euarter results announced
!nterim report to 37
th
<une 2775
+ummary
+!@ (O6T0+ &:+ALT+ 8
unaudited
2775 7223 Chang
e
=evenue B%4"%3m O$,37%m P1%G
;rofit from operations B1432"m O1,$17m P1?G
Basic earnings per share ,2."5p %7.1$p P18G
Ad9usted diluted earnings per
share
,2.72p %4.%1p P1?G
nterim dividend per share 22.1p 18.?p P11G
The reported Group revenue increased by 1% per cent to O%,$%3 million as a
result of favourable e&change, improved pricing and a better product mi&.
=evenue would have increased by ? per cent at constant rates of e&change.
73
!nterim report to 37th <une 2775 "able !:
The reported profit from operations was 1? per cent higher at O1,37$ million
with a similar increase if e&ceptional items are e&cluded. All regions e&cept
#atin America contributed to this strong result. ;rofit from operations,
e&cluding e&ceptional items, would have been 3 per cent higher at constant
rates of e&change.
Group volumes from subsidiaries were 44$ billion, an increase of 1 per cent,
mainly as a result of the good performances by the four Global @rive Brands,
which achieved overall volume growth of 72 per cent with around a third of the
rise coming from brand migrations.
Ad9usted diluted earnings per share rose by 1? per cent, principally as a result
of the strong growth in profit from operations and favourable e&change
movements.
The Board has declared an interim dividend of 77.1p, a 11 per cent increase
on last year, to be paid on 13 +eptember 7228.
The acEuisitions of Tekel and +kandinavisk Tobakskompagni were completed
on 7$ <une 7228 and 7 <uly 7228 respectively and neither had any material
impact on the profit from operations for the si& months to 42 <une 7228.
The "hairman, <an du ;lessis, commented CThese very good interim results
demonstrate the strength of British American Tobaccos business, as a result
of the e&cellent growth from our Global @rive Brands, our leading market
positions and our broad geographic spread. )hile not immune from the
conseEuences of an economic slowdown, we can certainly look to the future
with more confidence than most.D
".1.3 0uman &esources
78
The /uman =esources department bears primary responsibility for creating and
sustaining a winning workforce for BAT Bangladesh. )hat this means is providing
opportunities for talented employees to feel the satisfaction and fulfilment gained
through being members of a responsible, winning organi0ationF where they are
respected, rewarded and recogni0edF where their efforts are encouragedF where their
careers are developedF where they understand the vision and strategy of the
companyF and they know where they fit into the bigger picture. The /= function
within BAT Bangladesh takes care of three broad of areas!
>rgani0ational @evelopment ( "hange
=eward
'mployee =elations
".1." Lega
#egal and +ecretarial functions is considered as the first line of defence and an
essential business process of the company. The ma9or activities of #egal and
+ecretarial includes litigation management, combat5illicit trade, trade marks (
agreement management, in5house legal counsel, share management which is listed
with two stock e&changes and operating under central depository system, company
secretarial function, records management, shaping regulatory environment, trust
fund management, policy compliance etc. #egal and +ecretarial function also drives
to ensure "orporate Governance in the company.
".1.% +uppy Chain
>perations function is at the heart of BATB business, so BATB invest substantially in
people and technology to ensure that the processes are state5of5the5art, highly
fle&ible and responsive to the needs of customers and consumers alike.
)orking in operations means constantly having to balance the demands of
availability,
71
Euality and cost. BATB people operate in a high speed environment and under
tremendous pressure, so they need the strength of mind to make Euick decisions,
often
basing them on limited information. They also need to be open to innovative
solutions that can improve the processes.
".1., Lea.
The #eaf @epartment is responsible for purchasing, processing, packing, shipping,
and storing leaf tobacco for BAT Bangladesh.
'ssentially, it is the #eaf @epartment:s 9ob to ensure a secure, continuous and
consistent supply of tobacco at the best cost and right Euality ,as reEuired by BATB
Blenders- to maintain the correct taste of final products for the consumer. Therefore,
the #eaf Team:s skills make a significant contribution to the ongoing success and
reputation of BATB brands, as well as the "ompany:s position as market leader.
".1.3 !n.ormation Technoogy
)ith the emergence of super information highway and the ever evolving
technological environment, a competitive advantage is created for business. British
American Tobacco Bangladesh, have a robust nformation Technology team which
provides critically important support service to all the other departments.
At BATB nformation Technology contributes to a whole range of ways, from the
general application of T to specific advice on hardware and softwareF from the
application of telecommunications for voice, data and video to solving comple&,
strategic business challenges to support the business of BATB.
)hile a robust nformation Technology infrastructure is a vital component of a
dynamic and world class organi0ation, the people also have the imagination to
42
create whole new ways of adding value to the business. nformation Technology
includes business area management, architecture ( service delivery and T
.anagement.
The marketing department is discussed in a separate section following.
".1.5 (ar/eting 9epartment
The marketing department has two main wings!
Brand .arketing
Trade .arketing and @istribution
)hile the Brand .arketing wing focuses upon the branding aspects of a product, the
Trade .arketing ( @istribution ,T.(@- )ing focuses upon the trade and distribution
aspect. These two wings are 9oined by the Trade @evelopment Team ,T@T-. A
detailed organogram of the marketing department can be seen in Appendi& .
".1.5.1 Brand (ar/eting
The Brand .arketing department concentrates on satisfying consumers needs from
within the brand portfolio. >nce consumers needs are understood and evaluated,
brands can be made available, accessible and desirable through strong, consistent
communication. The brand marketing elements covers the adopting of products,
logistics and brand marketing policies that best meet the needs of particular trade
channels and strategic customers. The Brand .anagers and Brand '&ecutives are
responsible for the allocated brand,s-. They are responsible for all type of brand
management activities.
Core +trategies o. Brand (ar/eting
Aggressie!
1. :?pand the premium segment growth.
nternationalism, destination status ( image differentiator! Qouthful
2. :?pand mid segment
41
6ey differentiators! international standard with affordability ( distinctive image!
masculinityJ adventure.
3. 9ominate voume base
Build the critical mass.
;rotect BATs leadership.
"nnoatie!
1. !nvestigate > buid new segments
#ights
Aew brands ( line e&tensions.
2. )roduct :nhancement
;ackaging, +pec. change ( higher satisfaction.
3. Creative communication
Bocused! /o=e"a ,/otels, =estaurants and "afRs-, =ural ;enetration.
". Consumer !nsight
)orld5class knowledge base! consumer research ( market tracking
".1.5.2 Trade (ar/eting and 9istribution
+i? Critica 2actors to Achieve T(>9 (ission
. +econdary +uppy ChainC )roduct (anagement= >ptimi0e cost and
performance while ensuring achievement of brand ob9ectives. The associated
sub5activities are!
a. +upply chain strategyJmanagement
b. >rder management
c. >rder fulfillment
d. Trading terms
e. nventory management
47
. )O) #)oint o. )urchase$ (anagement= "reate effective competitive entry
barrier at point of sales while driving international brands. The associated sub5
activities are!
a. @isplay
b. ;romotions
c. n5store communicationJadvertising
d. mplementation
e. /o=e"a ,/otels, =estaurants and "afes-
. Account (anagementC Channe 9eveopment= "reate an effective entry
barrier while driving brand imagery, awareness and trial in /o=e"a and
superior grocery outlets. The associated sub5activities are!
a. Account planning
b. Account profitability
c. Aew business development
L. +trategy and )anning= 'nsure effective implementation of '.B ,effective
market focus- process to support achievement of companys ob9ectives. The
associated sub5activities are!
a. T.(@ planning
b. "ycle planning
c. "overage planning
L. &esource (anagement= 'nsure that T.(@ organogram is responsive to the
changing trade and company needs. The associated sub5activities are!
a. Binancial planning and management
b. .anpower planning
c. >rgani0ation development
d. .anagement information for marketing overview
L. !n.ormation (anagement= @rive Kuantum business benefits to the fullest. The
associated sub5activities are!
44
a. .arket intelligence
b. nternal monitoring
c. nformation technology
d. "ustomer satisfaction
".1.1 Corporate and&eguatory A..airs #CO&A$
The "orporate and =egulatory Affairs @epartment ,">=A- of the company is
dedicated towards achieving the companys strategic imperative, which is! To be a
responsible company in an industry seen as controversial.
Globali0ation and increased scrutiny of businesses by consumers and the general
public mean that companies are today 9udged not only by the Euality of products that
they produce but also the manner in which they carry out their business activities. t
is
therefore, an imperative that corporate bodies are responsible not 9ust in their
businesses but also in the social domain that they operate in. British American
Tobaccos philosophy has been to be conscious corporate citi0ens wherever they
operate, respectful of local cultures
The company recogni0es that it manufactures a product, which carries significant
risks. n this light, the company believes that only informed adults should use its
products and that under5age persons should not smoke. t also believes that the
company must act, behave and carry out its business activities in a manner accepted
by society at large as responsible. This includes dissemination of the companys
positions on issues. The "orporate ( =egulatory Affairs function is charged with
driving reputation management to the heart of the business and ensuring the
companys involvement as a leading development partner of the country.
".1.17 Duaity +ervice 9epartment #D+9$
Kuality +ervices @epartment is responsible for ensuring the Euality and integrity of
all products from the raw materials to the finished goods. The Euality of the products
4$
Quality :
Consistently meeting consumer
requirement at the point of consumption
((ithin o)r re*)lator+, orporate and soial o"li*ations)
Quality :
Consistently meeting consumer
requirement at the point of consumption
((ithin o)r re*)lator+, orporate and soial o"li*ations)
Total Quality :
Ahie,in* Quality at the lo(est total
ost, thro)*ho)t the or*anisation
Total Quality :
Ahie,in* Quality at the lo(est total
ost, thro)*ho)t the or*anisation
What is Quality? What is Quality?
has been given the prime importance by the management in recent times with
CKuality BirstD being one of the slogans of the company.
".1.17.1 Duaity 'ision
To ensure BAT ;roducts are always perceived by "onsumers as the Kuality #eader
in their competitive set.
To achieve our vision BATB must have=
# "omprehensive measures of consumer reEuirements and satisfaction
# ;roduct conformance to regulatory and corporate reEuirements
# +ystematic approach to continual improvement
".1.17.2 BATB Corporate Duaity (anagement +ystem
4%
-hat is Duaity Figure $:
-inished Prod)t %nspetion
Cons)mer
.atis/ation
Meas)rement
Central 0)alit+ Per/ormane 1eportin*
.pei/iation Mana*ement
Prod)t %nte*rit+ 2 !raea"ilit+
.)pplier 0)alit+ Partnership
Contin)al %mpro,ement Proess
Cons)mer 3 C)stomer -eed"a4
Cons)mer
1e5)irement
6e/inition
Prod)t
6e/inition
Component
.)ppl+
Man)/at)re
6istri")tio
n
1etai
l
Cons)me
r
Cons)me
r
0)alit+ 7ision, .trate*+ and Or*anisation
#ro)p(ide 8e+ Ati,it+ #ood Pratie Ati,it+
".1.17.3 Duaity (anagement +tructure=
4?
Head of the Supply Chain
Quality Serice
!anager
"ssistant Quality
Serice !anager
Senior Quality
"nalyst
# Quality
"nalysts
$% Permanents and
& contractual
BATB Corporate Duaity
(anagement +ystem
Figure %:
".1.17." Continua !mprovement > 2inished )roduct !nspection #2)!$
2)! in Conte?t
+trategy .or )roduct Duaity Continua !mprovement
9irecting !mprovement
Appropriate Ase o.
9ata
-hat is 2)!E
)rincipes Duaity !ndices=
)urposeF Asers
&eation to (A+D
&etai #&D!$
)roduct #)D!$
#(D!$
43
BATB Duaity (anagement +tructure
(anagement +ystem
Figure &:
Asing Duaity !ndices
(eaning.u )resentation in (anagement o. ... :?pected &anges
Brands &D!
+etting ObGectives Chain )D!
)roduction
".1.17.% BAT )&O9ACT DAAL!TH '!+!O6
To ensure that BAT products and packaging are always perceived by Consumers
as the Duaity Leader in their competitive set.
The Euality vision stems directly from our second strategic imperative!
I!ndustry eading product port.oio4 designed to address consumer needs and
societa e?pectations.J
48
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Figure 1':
BAT )&O9ACT DAAL!TH '!+!O6
#2)!$(anagement +ystem
Figure 11:
ts focus is on the perception of Kuality. Alongside branding and pricing, perception
is influenced principally by consumers e&perience of the product and directly
interacting services!
- the product itself S design appropriate to target consumer e&pectationsF suitable
raw materialsF capable processesF condition at point of purchase.
- the services by which it is made available, and through which the consumer may
communicate with the company.
Through systematic review and continual improvement, the Kuality .anagement
+ystem governs our ability to deliver these elements, consistently, and in the face of
changing demands.
Consumer Duaity &eKuirement 8 9e.inition and &eaisation
Kuality is realised at the point of consumption. "onsistently meeting consumers
reasonable e&pectations for Euality relies upon effective processes, from definition of
reEuirements through to delivery of the product. Aeither consumers e&pectations nor
competition products are static, so we must keep these processes active all the time.
To support this we reEuire comprehensive measures of consumer satisfaction, and
benchmarking against competitors.;roducts must satisfy statutory and legal
reEuirements so our measures of Euality also include conformance to them.
(anu.acturing Duaity !nde? #(D!$
.anufacturing Kuality nde& ,.K- @escribes aspects of product Euality directly
under the control of manufacturing
41
Beatures!
- "overs all Brands every shift.
- =eported every Kuarter, for the last 4 months data and the 17 month moving
average.
- '&cludes smoke yield.
- @escribes conformance to specification and consistency of physical properties.
- @escribes visual and tactile properties
- ncludes measures of control variables not directly perceptible to consumers.
;rinciple *sers for
>perating
company
>perations people at all levels ;rocess improvement
/ead office .anufacturing managers .onitor manufacturing
capability
(easures contributing to each Duaity !nde?4 and reated smo/ing
attributes
$2
Physical
parameters:
Consistency
Visual, Tactile
&Functional
properties
Smoke Yield
Consistency
Factory
control input
parameters:
Conformance
&Consistency
Smoke Yield
Conformance to target
Physical
parameters:
Conformance
to target
Physical
parameters:
Consistency
Visual, Tactile
&Functional
properties
Smoke Yield
Consistency
Physical
parameters:
Consistency
Visual, Tactile
&Functional
properties
Smoke Yield
Consistency
Factory
control input
parameters:
Conformance
&Consistency
Factory
control input
parameters:
Conformance
&Consistency
Smoke Yield
Conformance to target
Physical
parameters:
Conformance
to target
Smoke Yield
Conformance to target
Physical
parameters:
Conformance
to target
The Continua improvement process
#asting improvement can only be accomplished through real change to the process.
This diagram summarises a systematic approach to continual improvement that
ensures the desired benefits are realised!
D chan!es on a small
scale "irst to trial them
;
A "
@
;#AA
A"T
@>
"/'"6
P#$% "or chan!es to
&rin! a&out
impro'ement
$(T to !et the !reatest
&ene"it "rom chan!es
()*(+ to see i" chan!es are
,orkin! and to in'esti!ate
selected processes
T +mall5group leadership skills
T '&periment design
T "onflict resolution
T >n5<ob training
T @at a check5sheets
T Graphical analysis
T "ont rol charts
T 6ey performance indicators
T ;rocess mapping
T ;rocess standardisat ion
T "ontrolled reference information
T Bormal training for standard processes
T "ustomerJ supplier mapping
T Blowchart ing
T ;areto analysis
T Brainstorming
T Aominal group techniEue
T +olutionJ fault tree
T 'valuation matri&
T "ause ( 'ffect diagrams
$1
(easures contributing to each Duaity !nde?
#2)!$(anagement +ystem
Figure 12:
Continua !mprovement #2)!$ )rocess Figure 13:
Consumer .ocused )rocess !mprovement
"onsumers reEuirements of a product are influenced by changes in the targeted
group of consumers, price changes, promotional activity and competitors activity.
They change over time, and seldom decrease. )e must understand what they are in
relation to the characteristics of our own and competition products, and use this to
help guide investment in process improvement.
f process performance already yields Euality well in e&cess of consumer
reEuirement, there may be little merit in improving it further. mprovement may then
be focused towards internal business benefit.
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+rocess mees
cusomer needs
,
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i
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e
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+rocess -.ange /0
1mprove
+roduc (ualiy
*a2imise
3usiness 3enefi
$7
Consumer .ocused )rocess !mprovement Figure 14:
"onsumers reEuirements for Euality improvement normally relate to one or very few
properties of the product.
Bocusing improvement activity on specific aspects of key brands freEuently leads to
transfer of learning and improvement to the entire portfolio.
mprovement achieved through changes to a component may affect only the product
in Euestion, but if it is common to other products, they too will benefit. mprovement
achieved through changes to manufacturing or other supply chain processes,
benefits all products passing through the same processes.
Concusion=
After gone through the entire activities of Kuality +ervice department of British
American Tobacco Bangladesh, it can be recommended that British American
Tobacco Bangladesh is a well structured company running a successful business
with a group of strong, dedicated work force. The company provides pure employee
satisfaction. All activities are done in a decent way. The company has got superior
relationship with the government as well as the stakeholders. "onsumers are happy
with its product.
An#$-i P#!t
$4
n this report will try to provide an in5depth analysis of advertisement, promotion
and taste features of +tar Bilter, a renowned brand of British American Tobacco
Bangladesh #imited. /ow people are reacting to the advertisement and how the
brand eEuity of star filter is affecting the people5 these Euestions will be answered in
this report. n the later part will evaluate the result and will provide some
recommendations which may help the company to ad9ust their current marketing
strategy of this specific brand of cigarette.
ObGectives o. the study
Broad ObGective
@evelop strategies to establish +tar filter as the biggest brand in the low income
group people of @haka "ity.
+peci.ic obGective
nvestigate whether this product is adeEuate for capturing the target audience. f
not, then identify the underlying reasons for the product line to be inadeEuate.
Bind out the reasons of the overall opinion about +tar Bilter of the target
customers and re develop the strategy.
dentify strategies to increase distribution reach of +tar filter in the low income
group people of @haka city.
=ecommendation to create spontaneous brand awareness in the target markets.
dentify the weak markets for +tar Bilter on the basis of consumer off5take volume
share and recommend accordingly.
+cope and +igni.icance o. the study
The scope of the study will cover the in the low income group people of @haka "ity.
The market related information is based on @haka region. The significance of this
$$
study is dual. Brom an internees perspective this study gave me the opportunity to
apply my knowledge earned in last four years education. Brom the companys point
of view this study will help them to look at some problems from a very different
perspective which is from the view5point of a person not from the company. This
study may help them to evaluate their marketing strategy according to customer
satisfaction and renovate their strategy which will increase the sales of the company.
&esearch 0ypothesis
IThe low income group population is pleased with Star #ilter cigarette$s
distribution% price% taste and brand satis&action and their oerall opinion are
dependent on these &actors'
(ethodoogy
The pro9ect part will be done mostly on the basis of a Eualitative study. +ome
Euantitative analysis will be done as the +tar filter Bilters weak competitive position
will be analy0ed on the basis of the retail audit figures. ="+ ,=etail "ensus +urvey-
findings will help to find out the opportunity for the low income group people of
@haka city. The recommended strategies and action plan for the target market will
be determined depending on a Eualitative study.
n this research paper will use Euestionnaire, population survey and hypothesis test
to evaluate the factor effect on the popularity of +tar Bilter. have designed
Euestionnaire and will interview people to complete the survey. will enter the survey
result in statistical software +;++. Ae&t will test the hypothesis using +;++.
The outline of the methodology is shown below!
Anaysis
n the research will use the following analysis!
1. Graph ( freEuency table
7. @escriptive +tatistics
4. "ross Tabulation
$. =eliability Test
$%
%. "orrelation
?. =egression
3. AA>LA
8. Test of /ypothesis
Duestionnaire Construction and measurement
have attached the Euestionnaire for interview at the end of proposal.
&esearch 9esign
A master plan that specifies the methods and procedures for collecting and
analy0ing needed information is called research design. Typically research design is
the second stage of the marketing research process. =esearch design stage is the
stage in which we the researchers determined the overall framework for the research
plan of action by basically selecting the research method.
actually have done my pro9ect with Euantitative research design and most of the
measurement of the Euestions was likert method. To test the hypothesis have to
develop all of the research method and those are! e&ploratory, descriptive and
causal. The research data was obtained from both primary and secondary sources.
have collected some secondary data to what e&tent it is available.
9ata Coection (ethod
went to different places like offices, shopping malls, road side shops etc for data
collection. )e therefore collected response from 122 respondents who are of low
income group population. +ince collected 122 responses, achieved our target
ratio. have given the Euestionnaires to them and e&plained them what to do. Thus
have done data collection.
9ata )rocessing and Anaysis
The collected data is processed by applying standard editing and coding procedures.
Bor analy0ing the data will utili0e simple tabulation and cross tabulation formats.
+tatistical methods and procedures such as simple and multiple regression analysis,
correlation, hypothesis testing and AA>LA have been applied for conducting data
processing and analysis.
$?
Bor this purpose, used more than one software packages including +;++
,+tatistical ;ackages for +ocial +ciences-, .icrosoft )ord, or .icrosoft '&cel. n5
depth analysis of the relevant part of the research has been given in the latter part of
the report.
The +amping 2rame
had selected different offices, shopping malls, road side shops as locations from
where chose the sampling frame. had 122 respondents, of who all are of low
income group population.
Limitations
The possible limitations that might face in undertaking my research are!
The ma9or limitation of the study is that it has much primary data. And most of
the data are very difficult to collect as it targets only the low income segment
population.
Time constraint is one of the ma9or obstacles of finishing the pro9ect in a
limited time.
9ata Anaysis
n this section of the report will analy0e the data of the Euestionnaire survey. The
Euestionnaire consisted of Thirty ,42- Euestions which are related to the research
topic.
have entered the data in +;++ and run various statistical processes. /ere
discuss them. begin with simple freEuency distribution of some of the most
important Euestions in the Euestionnaire, including the relevance for the Euestion in
the report as well as relating the marketing logic that would help us to prove or
disprove the hypothesis.
After analy0ing the simple freEuency distributions, will analy0e various cross5
tabulations that have prepared to analy0e the findings. Binally the statistical
processes, the various statistical ,AA>LA, T5test, B5test, correlation, reliability
analysis, etc- tests that have performed have been e&plained in simple language for
the convenience of the reader.
$3
2reKuency Tabes > Graphica Anaysis
have used freEuency tables and graphs to interpret the findings of the
Euestionnaire answered by the respondents. ndividual graph for all the variables
are considered in this section and 9ustification for their inclusions are shortly
discussed below.
+mo/ing 0abit o. the &espondents=
Tabe 1= +mo/ing 0abit o. the respondents
'aid 2reKueny )ercent
'aid
)ercent
Cumuative
)ercent
Qes, always 33 33 33 33
Qes,
$8
2igure 11= The avaiabiity o. +tar 2iter through present distribution channes
satis.ies the ow income group
2indings .rom the .reKuency tabe > graph=
>ut of 122 respondents, 17G strongly agreed with the statement that the availability
of +tar Bilter through present distribution channels satisfies the low income group.
?$G said they 9ust agree with the statement. 13G respondents remained neutral, %G
respondents disagreed and 7G respondents strongly disagreed with the statement.
+o, we can say that ma9ority of the population agreed that the availability of +tar
Bilter through present distribution channels satisfies the low income group.
9escriptive +tatistics
Tabl" /01 ,"scripi-" Saisics
A .ean +td. @eviation .inimum .a&imum
>verall opinion 122 7.72 .?24 1 4
@istribution 122 7.7?44 .%4$27 1.22 7.84
;rice 122 7.$242 .41%$2 1.82 7.84
Taste 122 7.11%2 .$8111 1.2% 7.12
+atisfaction 122 7.17%2 .431%? 1.2% 7.$2
M"an / ".is is .e ari.meic mean across .e observaions. 1 is .e mos widely used
measure of cenral endency. 1 is commonly called .e average. ".e mean is sensiive o
e2remely large or small values.
*arianc"1 ".e variance is a measure of variabiliy. 1 is .e sum of .e s)uared disances of
daa value from .e mean divided by .e variance divisor. ".e -orreced 44 is .e sum of
s)uared disances of daa value from .e mean. ".erefore5 .e variance is .e correced 44
divided by 6/1. We don7 generally use variance as an inde2 of spread because i is in s)uared
unis. 1nsead5 we use sandard deviaion.
S). ,"-iaion2 4andard deviaion is .e s)uare roo of .e variance. 1 measures .e spread
of a se of observaions. ".e larger .e sandard deviaion is5 .e more spread ou .e
observaions are.
.in)in3s1
$1
All the variables have the same number of observations with no values missing. The
statistics above are based on the variables of the ma9or hypothesis of the pro9ect.
ndependent Lariables!
@istribution! Brom the 122 responses survey .ean calculated is 7.7? with a
.a& of 7.84 and .in of 1.22, which means most the respondents are satisfied
with the distribution from the mean calculated. As the variable was calculated
using likert5scale we can say by seeing the mean that customers are not
dissatisfied if not /appy. But the standard deviation ,%4.$G- is very high
which means among the respondents there is varying degree opinion.
;rice! .ean of ;rice is very high at 7.$ compare to the other variables but still
we can say that respondents are likely to be very happy if the price is lowered
and that can be seen from the .in and .a& of the respondents and the
standard deviation ,41.%G-.
Taste! .ean calculated for the variable is 7.11 which are closer to agree in
the likert5scale and although the respondents gave a considerable amount of
varying between strongly agree and Aeutral but still we can say that ma9ority
of the customers or consumers are happy with the taste.
+atisfaction! .ean calculated for this variable is7.17 the lowest and probably
this variable has the most balance in terms of mean and standard deviation
,appro&. 48G-. Thus we can say that consumers are satisfied with the brand.
@ependent Lariable!
>verall >pinion! .ean calculated is 7.7 and standard deviation is ?.24G,
thus we can say that most of them agreed that brand is doing good in
overall.
%2
Correation
Tabe 21= Correations

>verall
opinion
@istributi
on ;rice Taste
+atisfacti
on
;earson
"orrelation
>verall
opinion
1.222 .8%1 .%$$ .313 .3%2
@istribution .8%1 1.222 .3?? .878 .88$
;rice .%$$ .3?? 1.222 .?14 .??%
Taste .313 .878 .?14 1.222 .81%
+atisfaction .3%2 .88$ .??% .81% 1.222
Tabe 22= Coe..icient Correations#a$
.odel +atisfaction ;rice Taste @istribution
1 "orrelations +atisfaction 1.222 .18$ 5.?48 5.%82
;rice .18$ 1.222 5.7$2 5.$83
Taste 5.?48 5.7$2 1.222 5.247
@istribution 5.%82 5.$83 5.247 1.222
"ovariances +atisfaction .2$? .22? 5.272 5.213
;rice .22? .277 5.22% 5.212
Taste 5.272 5.22% .272 5.221
@istribution 5.213 5.212 5.221 .211
a @ependent Lariable! >verall opinion
2indings .rom Coe..icient Correations=
Brom above table we can analy0e the correlation among all the independent
variables. The correlation between +atisfaction and ;rice are not very strong
because the correlation coefficient is ,.18$-, but they are positively related.
+atisfaction and Taste has a strong negative relationship as the correlation
coefficient is ,5.?48-. Taste and satisfaction validates my research with a strong
inverse relation, if the taste is bad customer is likely to have bad satisfaction.
+atisfaction and @istribution has a strong negative relationship as the correlation
%1
coefficient is ,5.%82-. must say it is also a good sign of the survey stating the
customer satisfaction level i.e. customer are likely to unhappy if the availability and
visibility is poor. The correlation between ;rice and Taste are not very strong
because the correlation coefficient is ,.7$2- but still can say that target segment or
the loyal customers are not worried about while thinking of taste or might come to
conclusion that customers are happy with the taste of +tar Bilter. The relationship
between ;rice and @istribution is negative as the correlation coefficient is ,5.$83-,
here we can also say that wherever the distribution is weak the price is seen as
important factor as they are also negatively related. Taste and @istribution has a
week negative relationship as the correlation coefficient is ,5.247- "ovariance tells
how the variables are behaving differently from one another. Brom the Lariance
Analysis we can also that variables are closely related as their movements are not
that different and showing close coordination of movements.
Tabe 23= Correations

O,erall
opinion 6istri")tion Prie !aste .atis/ation
O,erall opinion Pearson Correlation 1 .819(::) .487(::) .99$(::) .72&(::)
.i*. (2;tailed)
.000 .000 .000 .000
<
100 100 100 100 100
6istri")tion Pearson Correlation
.819(::) 1 .770(::) .7=4(::) .87=(::)
.i*. (2;tailed)
.000 .000 .000 .000
<
100 100 100 100 100
Prie Pearson Correlation
.487(::) .770(::) 1 .9&7(::) .9&9(::)
.i*. (2;tailed)
.000 .000 .000 .000
<
100 100 100 100 100
!aste Pearson Correlation
.99$(::) .7=4(::) .9&7(::) 1 .882(::)
.i*. (2;tailed)
.000 .000 .000 .000
<
100 100 100 100 100
.atis/ation Pearson Correlation
.72&(::) .87=(::) .9&9(::) .882(::) 1
.i*. (2;tailed)
.000 .000 .000 .000
<
100 100 100 100 100
:: Correlation is si*ni/iant at the 0.01 le,el (2;tailed).
".e .ypo.esis esed .ere for all differen pairs:
8o: 9 : '
81: 9 ; '
%7
8ere 9 denoes +earson<s correlaion coefficien for all .e differen pairs of variables
c.ecked for correlaion. 4ignifican correlaion beween any wo pairs is marked wi. == a .
'1 level.
4o 1 can say all .e variables are correlaed wi. eac. o.er from .e able and re>ec .e null
.ypo.esis.
Cross Tabuation Anaysis
)e have done cross tabulation analysis among our sets of data that we got from
survey. Then, we also tried to develop a comparison between Lariables and also the
Test of /ypothesiss. The analyses are given below.
%4
!ncome vs. Brand pre.erence .actors Cross tabuation=
0o= !ncome and Brand pre.erence .actors are independent
01= !ncome and Brand pre.erence .actors are dependent
Tabe 2"= !ncome vs. Brand pre.erence .actors Cross tabuation

Brand preference factors Total
Taste ;rice
Availabilit
y
ncome %221512222 "ount 72 11 12 $1
G within ncome $2.8G 48.8G 72.$G 122.2G
G within Brand
preference factors
122.2G 4%.7G $2.2G $1.%G
G of Total 72.7G 11.7G 12.1G $1.%G
12215%222 "ount 2 4% 1% %2
G within ncome .2G 32.2G 42.2G 122.2G
G within Brand
preference factors
.2G ?$.8G ?2.2G %2.%G
G of Total .2G 4%.$G 1%.7G %2.%G
Total "ount 72 %$ 7% 11
G within ncome 72.7G %$.%G 7%.4G 122.2G
G within Brand
preference factors
122.2G 122.2G 122.2G 122.2G
G of Total 72.7G %$.%G 7%.4G 122.2G

Chi2Square Tests
7al)e d/
As+mp. .i*. (2;
sided)
Pearson Chi;.5)are
2&.7$$(a) 2 .000
>i4elihood 1atio $$.&$& 2 .000
>inear;"+;>inear
Assoiation
1$.772 1 .000
< o/ 7alid Cases
==
a 0 ells (.0%) ha,e e?peted o)nt less than &. !he minim)m e?peted o)nt is =.=0.
Brom the cross tabulation above the findings state that ma9ority of the
respondent in the income range of %221512222 are likely to e&plore the factors taste
%$
and price while choosing a cigarette brand where as a fraction of the respondents
will think of availability of the brand rather than price and taste.
But when we go to even a lower level of income in the low level income group
which is 12215%222, they put more emphasi0e on the price factor solely as state by
32G of the %2 respondents answers.
Overa 2indings= n the lower income group among the 11 responded
answers appro&imately %%G preferred price as the main factor for choosing a brand
while appro&imately 72G and 7%G preferred taste and availability respectively. Thus
we can say that lower income which is defined by me having income range of 15
12222,hypothetically- will seek price as the main factor while choosing a brand.
.oreover from the Pearson Correlation test we can also say that independent
variables ncome and Brand ;reference Bactors are dependent as p5value is less
than .2% thus re9ecting the null hypothesis.
Age vs. Overa opinion Cross tabuation=
0o= Age and Overa opinion are independent
01= Age and Overa opinion are dependent
Tabe 2%= Age vs. Overa opinion Cross tabuation
>verall opinion Total
'&cellent Good Average
Age 7%54% "ount 2 8 8 1?
G within Age .2G %2.2G %2.2G 122.2G
G within >verall
opinion
.2G 17.%G 78.?G 1?.2G
G of Total .2G 8.2G 8.2G 1?.2G
4%5$% "ount $ 8 1? 78
G within Age 1$.4G 78.?G %3.1G 122.2G
G within >verall
opinion
%2.2G 17.%G %3.1G 78.2G
G of Total $.2G 8.2G 1?.2G 78.2G
$%5%% or
more
"ount
$ $8 $ %?
%%
G within Age 3.1G 8%.3G 3.1G 122.2G
G within >verall
opinion
%2.2G 3%.2G 1$.4G %?.2G
G of Total $.2G $8.2G $.2G %?.2G
Total "ount 8 ?$ 78 122
G within Age 8.2G ?$.2G 78.2G 122.2G
G within >verall
opinion
122.2G 122.2G 122.2G 122.2G
G of Total 8.2G ?$.2G 78.2G 122.2G
Chi2Square Tests
7al)e d/
As+mp. .i*.
(2;sided)
Pearson Chi;.5)are $2.781(a) 4 .000
>i4elihood 1atio $9.0== 4 .000
>inear;"+;>inear
Assoiation
14.14$ 1 .000
< o/ 7alid Cases
100
a 4 ells (44.4%) ha,e e?peted o)nt less than &. !he minim)m e?peted o)nt is 1.28.
Brom the Pearson Chi-Square test we can also say that independent
variables Age and >verall >pinion are dependent as p5value is less than .
2% thus re9ecting the null hypothesis.
Among the various age groups surveyed S ma9ority tagged +tar Bilter as good brand
in overall opinion while the others said average but no one described it as bad. This
is supported by facts ?$G acknowledged it as good, 8G valued it as '&cellent and
the rest 78G marked average. Thus we can say in the #ower income group +tar
Bilter is popular brand with a preferable price as supported by the above crosstab
between ncomeUBrand ;reference factors.
%?
Age vs. Brand pre.erence .actors Cross tabuation=
0o= Age and Brand pre.erence .actors are independent
01= Age and Brand pre.erence .actors are dependent
Tabe 2,= Age vs. Brand pre.erence .actors Cross tabuation

Brand preference factors Total
Taste ;rice
Availabilit
y
Age 7%54% "ount 8 8 2 1?
G within Age %2.2G %2.2G .2G 122.2G
G within Brand
preference
factors
$2.2G 14.4G .2G 1?.2G
G of Total 8.2G 8.2G .2G 1?.2G
4%5$% "ount $ 1? 8 78
G within Age 1$.4G %3.1G 78.?G 122.2G
G within Brand
preference
factors
72.2G 7?.3G $2.2G 78.2G
G of Total $.2G 1?.2G 8.2G 78.2G
$%5%% or
more
"ount 8 4? 17 %?
G within Age 1$.4G ?$.4G 71.$G 122.2G
G within Brand
preference
factors
$2.2G ?2.2G ?2.2G %?.2G
G of Total 8.2G 4?.2G 17.2G %?.2G
Total "ount 72 ?2 72 122
G within Age 72.2G ?2.2G 72.2G 122.2G
G within Brand
preference
122.2G 122.2G 122.2G 122.2G
%3
factors
G of Total 72.2G ?2.2G 72.2G 122.2G
Chi2Square Tests
7al)e d/
As+mp. .i*.
(2;sided)
Pearson Chi;.5)are 1$.$$$(a) 4 .010
>i4elihood 1atio 14.4$7 4 .009
>inear;"+;>inear
Assoiation
9.$94 1 .012
< o/ 7alid Cases
100
a 2 ells (22.2%) ha,e e?peted o)nt less than &. !he minim)m e?peted o)nt is $.20.
Brom the Pearson Chi-Square test we can also say that independent
variables Age and Brand preference Bactors are dependent as p5value is
less than .2% thus re9ecting the null hypothesis.
)hen we cross tabulated Age vs. Brand preference factors, it became more evident
that in the lower income group price is the main factor for choosing a brand
irrespective of the age differences which is supported by the above table findings. n
the various age groups respondents clearly kept price as the dominant factor in
choosing a brand with a ?2G response which is way above 72G response of taste
and availability each. >nce again we can say ;rice rules the lower income group.
%8
!ncome vs. Advertisement reach Cross tabuation=
0o= !ncome and Advertisement &each are independent
01= !ncome and Advertisement &each are dependent
Tabe 23= !ncome vs. Advertisement reach Cross tabuation

Advertisement reach Total
Agree Aeutral @isagree Agree
ncome %2215
12222
"ount 78 1? $ $8
G within ncome %8.4G 44.4G 8.4G 122.2G
G within
Advertisement
reach
122.2G 82.2G 3.3G $8.2G
G of Total 78.2G 1?.2G $.2G $8.2G
12215%222 "ount 2 $ $8 %7
G within ncome .2G 3.3G 17.4G 122.2G
G within
Advertisement
reach
.2G 72.2G 17.4G %7.2G
G of Total .2G $.2G $8.2G %7.2G
Total "ount 78 72 %7 122
G within ncome 78.2G 72.2G %7.2G 122.2G
G within
Advertisement
reach
122.2G 122.2G 122.2G 122.2G
G of Total 78.2G 72.2G %7.2G 122.2G
Chi2Square Tests
7al)e d/
As+mp. .i*.
(2;sided)
Pearson Chi;.5)are 72.$87(a) 2 .000
>i4elihood 1atio =0.2&0 2 .000
>inear;"+;>inear
Assoiation
97.409 1 .000
< o/ 7alid Cases
100
a 0 ells (.0%) ha,e e?peted o)nt less than &. !he minim)m e?peted o)nt is =.90.
%1
Brom the Pearson Chi-Square test we can also say that independent
variables ncome and Advertisement =each are dependent as p5value is
less than .2% thus re9ecting the null hypothesis.
Brom the above cross tabulation5 ncome U Advertisement reach factors we can
deduce that advertisement in mass media do not have much impact on lower income
group, because only 78G respondent agreed that advertisement effectiveness is
good for the brand. But bulks of the respondents ,%7G- are not happy and do not
agree that +tar Bilter has good advertisement reach, yet ma9ority of the respondents
are happy with the brand from other cross tabulation done before. Thus we cannot
accept the hypothesis that heavy advertisements in mass media have impact on low
income group people for the surveyed brand ,+tar Bilter-.
!ncome vs. )rice satis.action Crosstabuation=
0o= !ncome and )rice satis.action are independent
?2
01= !ncome and )rice satis.action are dependent
Tabe 25= !ncome vs. )rice satis.action Crosstabuation
;rice satisfaction Total
Agree Aeutral Agree
ncome %2215
12222
"ount
4? 17 $8
G within ncome 3%.2G 7%.2G 122.2G
G within ;rice
satisfaction
$2.1G 122.2G $8.2G
G of Total 4?.2G 17.2G $8.2G
12215
%222
"ount
%7 2 %7
G within ncome 122.2G .2G 122.2G
G within ;rice
satisfaction
%1.1G .2G %7.2G
G of Total %7.2G .2G %7.2G
Total "ount 88 17 122
G within ncome 88.2G 17.2G 122.2G
G within ;rice
satisfaction
122.2G 122.2G 122.2G
G of Total 88.2G 17.2G 122.2G
Chi2Square Tests
7al)e d/
As+mp. .i*.
(2;sided)
Pearson Chi;.5)are 14.77$(") 1 .000
>i4elihood 1atio
1=.401 1 .000
>inear;"+;>inear
Assoiation
14.92& 1 .000
< o/ 7alid Cases
100
a Comp)ted onl+ /or a 2?2 ta"le
" 0 ells (.0%) ha,e e?peted o)nt less than &. !he minim)m e?peted o)nt is &.79.
Brom the Pearson Chi-Square test we can also say that independent
variables ncome and ;rice +atisfaction are dependent as p5value is less
than .2% thus re9ecting the null hypothesis.
2indings=
88G respondents stated they are happy with the price offerings of star filter where a
minority is not happy. +o, the hypothesis is proved that low income group people are
satisfied with the lower price offerings of +tar Bilter.
?1
!ncome vs. 6icotine concentration #+tar vs substitute$ Crosstabuation=
0o= !ncome and 6icotine concentration are independent
01= !ncome and 6icotine concentration are dependent
Tabe 21= !ncome vs. 6icotine concentration #+tar vs substitute$
Crosstabuation

Aicotine
concentration ,+tar vs
substitute- Total
Agree Aeutral Agree
ncome %2215 "ount $2 8 $8
?7
12222
G within ncome 84.4G 1?.3G 122.2G
G within Aicotine concentration
,+tar vs substitute-
$4.%G 122.2G $8.2G
G of Total $2.2G 8.2G $8.2G
12215%222 "ount %7 2 %7
G within ncome 122.2G .2G 122.2G
G within Aicotine concentration
,+tar vs substitute-
%?.%G .2G %7.2G
G of Total %7.2G .2G %7.2G
Total "ount 17 8 122
G within ncome 17.2G 8.2G 122.2G
G within Aicotine concentration
,+tar vs substitute-
122.2G 122.2G 122.2G
G of Total 17.2G 8.2G 122.2G
Chi2Square Tests
7al)e d/
As+mp. .i*.
(2;sided)
Pearson Chi;.5)are =.420(") 1 .002
>i4elihood 1atio
12.&00 1 .000
>inear;"+;>inear
Assoiation
=.$29 1 .002
< o/ 7alid Cases
100
a Comp)ted onl+ /or a 2?2 ta"le
" 2 ells (&0.0%) ha,e e?peted o)nt less than &. !he minim)m e?peted o)nt is $.84.
Brom the Pearson Chi-Square test we can also say that independent
variables ncome and Aicotine "oncentration are dependent as p5value is
less than .2% thus re9ecting the null hypothesis.
!ncome vs. Ase o. .iter Crosstabuation=
0o= !ncome and Ase o. .iter are independent
01= !ncome and Ase o. .iter are dependent
Tabe 37= !ncome vs. Ase o. .iter Crosstabuation

*se of filter Total
Agree Aeutral Agree
ncome %221512222 "ount $$ $ $8
G within ncome 11.3G 8.4G 122.2G
G within *se of filter %%.2G 72.2G $8.2G
?4
G of Total $$.2G $.2G $8.2G
12215%222 "ount 4? 1? %7
G within ncome ?1.7G 42.8G 122.2G
G within *se of filter $%.2G 82.2G %7.2G
G of Total 4?.2G 1?.2G %7.2G
Total "ount 82 72 122
G within ncome 82.2G 72.2G 122.2G
G within *se of filter 122.2G 122.2G 122.2G
G of Total 82.2G 72.2G 122.2G
Chi2Square Tests
7al)e d/
As+mp. .i*.
(2;sided)
Pearson Chi;.5)are 7.8&$(") 1 .00&
>i4elihood 1atio
8.$&1 1 .004
>inear;"+;>inear
Assoiation
7.774 1 .00&
< o/ 7alid Cases
100
a Comp)ted onl+ /or a 2?2 ta"le
" 0 ells (.0%) ha,e e?peted o)nt less than &. !he minim)m e?peted o)nt is =.90.
Brom the Pearson Chi-Square test we can also say that independent
variables ncome and *se of Bilter are dependent as p5value is less than .
2% thus re9ecting the null hypothesis.
2indings=
Brom the tables it is clearly visible in both the cases 82 or more than 82G
respondents supported the use of filter and less concentration of nicotine gives +tar
Bilter Euality taste over rivals, thus we can say that the hypothesis is proved that use
of filter hence less nicotine compare to +ubstitutes make better taste and increase
the satisfaction of low income group people.
?$
&eiabiity Test
*sing +;++ we have also performed reliability tests of the models in our
Euestionnaire. =eliability test is particularly important for our research since we have
71 variables clustered in the @istribution, ;rice, Taste and +atisfaction variables.
nternal reliability helps to give an idea of the coherence between the variables, the
degree to which the different independent variables in a Euestion set measure the
dependent variable, and are reliable measures of performance.
Tabe 31= &eiabiity +tatistics
"ronbach:s Alpha
"ronbach:s Alpha Based on
+tandardi0ed tems A of tems
.171 .1$1 %
Tabe 32= !nter8!tem Covariance (atri?
@istribution ;rice Taste +atisfaction
>verall
opinion
@istribution .78% .171 .714 .131 .733
;rice .171 .211 .12% .282 .124
Taste .714 .12% .747 .1?$ .728
+atisfaction .131 .282 .1?$ .1$$ .137
>verall opinion .733 .124 .728 .137 .4?$
The covariance matri& is calculated and used in the analysis.
?%
Tabe 33= !nter8!tem Correation (atri?
@istribution ;rice Taste +atisfaction
>verall
opinion
@istribution 1.222 .3?? .878 .88$ .8%1
;rice .3?? 1.222 .?14 .??% .%$$
Taste .878 .?14 1.222 .81% .313
+atisfaction .88$ .??% .81% 1.222 .3%2
>verall opinion .8%1 .%$$ .313 .3%2 1.222
The covariance matri& is calculated and used in the analysis.
2indings=
n reliability analysis, internal consistency is used to measure the reliability of a
summated scale where several items are summed to form a total score. This
measure of reliability in reliability analysis focuses on the internal consistency of the
set of items forming the scale. /ere, "ronbachs Alpha eEuals 2.171 means the
correlation between the variables is 17.1G
&egression Anaysis
(utipe &egression
??
Bor the research run multiple regressions to test the validity of our independent
variables. The main goal of the analysis was to determining customer satisfaction of
+tar Bilter "igarette in the low income group of @haka city. use >verall >pinion as
the main dependent variable to measure the satisfaction level of the low income
group population.
T!" ma4or !$po!"sis o+ m$ r"s"arc! is1
?The low income group population is pleased with Star Filter cigarettes distribution,
price, taste and brand satisfaction and their overall opinion are dependent on these
factors.
The variables of the ma9or hypothesis are!
9ependent 'ariabe
>verall >pinion
!ndependent 'ariabes
o @istribution
o ;rice
o Taste
o +atisfaction
9istribution is a custer variabe comprising the .oowing items or sub8
variabes=
+ubstitute
Availability
@istribution
Advertisement =each
Advertisement "onsistency
)rice is a custer variabe comprising the .oowing items or sub8variabes=
?3
;rice ,+tar vs. substitute-
+tar price vs. Euality
;rice affordability
ncreased price vs. increased Euality
ncreased price vs. increased
advertisement
Taste is a custer variabe comprising the .oowings=
Taste ,+tar vs. substitute-
Aicotine concentration ,+tar vs.
substitute-
*se of filter
Taste consistency
Taste consistency with advertisement
+atis.action is a custer variabe comprising the .oowings=
;roduct satisfaction
Brand image
;rice satisfaction
Kuality satisfaction
@istribution efficiency
The estimated regression mode is4
H L M N M 1 @1N M 2 @2 N M 3 @3N M " @"
)here,
QV >verall >pinion
W V "onstant
HV ndependent variables,
H1V @istribution,
H7 V ;rice,
?8
H4 V Taste,
H$ V +atisfaction
+o the estimated regression mode is8
Overa OpinionL M N M 1 #9istribution$ N M 2 #)rice$ N M 3 #Taste$ N M "
#+atis.action$
n order to compare the strength of the coefficient of a specific variable to the
coefficient for another variable the column of Beta coefficients was used. The beta
coefficients are used by some researchers to compare the relative strength of the
various predictors within the model. Because the beta coefficients are all measured
in standard deviations, instead of the units of the variables, they can be compared to
one another. n other words, the beta coefficients are the coefficients that you would
obtain if the outcome and predictor variables were all transformed to standard
scores, also called 05scores, before running the regression.
The summary .rom +)++ output is=
Tabe 3"= (ode +ummary
.odel = = +Euare
Ad9usted =
+Euare
+td. 'rror of the
'stimate
1 .881,a- .333 .3?3 .711
a ;redictors! ,"onstant-, +atisfaction, ;rice, Taste, @istribution
!nterpretation o. (ode +ummary
Brom the model summary we can see that the correlation coefficient = is 2.881,
which means that there is strong correlation between the two independent variables
,taken together- and the resulting changes in the dependent variable.
= +Euare measures the fraction of variation in the dependent variable that is
e&plained by the regression model. = +Euare is 2.333, which means that 33.3G of
the changes in the dependent variable,>verall >pinion- is measured or e&plained by
the regression model. f it had been a simple regression model than the value of =
+Euare would have been e&tremely satisfactory. /owever, we cannot say this for this
case unless we evaluate = +Euare since our model is of multiple regression.
?1
As added more and more variables on the right hand side of the regression
eEuation, generally = +Euare would inflate automatically even if the independent
variables are unnecessary and have no real significance in determining the
dependent variable. The more independent variables are in the regression model,
the more would be the = +Euare, but this does not mean that the model is very
accurate and the variables are very reliable.
+o measured Ad9usted = +Euare. Ad9usted = +Euare measures the fraction of
variation in the dependent variable that is e&plained by the regression model after
imposing penalty for including unnecessary variables in the right hand side. .y
Ad9usted = +Euare is 2.3?3 which means that 3?.3G of the variation in the
dependent variable is e&plained by the regression model, even after imposing
penalty for adding unnecessary variables. n the conte&t of my model found this
result overwhelming.
Aormally an Ad9usted = +Euare of over 32G is considered to be a measure of good
model, but as know the more independent variables have on the right hand side,
the lower is usually the Ad9usted = +Euare, since the more becomes the probability
of including unnecessary or false variables. had four independent variables to
e&plain the dependent variable. The independent variables were!
o @istribution
o ;rice
o Taste
o +atisfaction
#et us not forget that the variable @istribution is a cluster of si& variables, which are!
+ubstitute
Availability
@istribution
Advertisement =each
Advertisement "onsistency
These si& variables together have been clustered in +;++ to form the variable
Distribution, and hence distribution represents si& variables, not 9ust one. .y other
32
three independent variables are also clustered of sub variables as stated above and
also been clustered into +;++. n effect, had a total of 71 independent variables
which had impact on the dependent variable, and despite having so many variables
my Ad9usted = +Euare is 38.?G, which means that the model is an e&tremely good
predictor.
Also one must notice the difference between our = +Euare and Ad9usted = +Euare.
Aormally a difference of 7G is considered acceptable in most pro9ects. >ur = +Euare
is 33.3G where as Ad9usted = +Euare is 3?.3G, and the difference is only 1.$G, so
the measure is considered acceptable.
A6O'AO2 Test
Tabe 3%= A6O'A#b$
.odel
+um of
+Euares df
.ean
+Euare B +ig.
1 =egression 73.1%8 $ ?.181 87.%?4 .222,a-
=esidual 8.2$7 1% .28%
Total 4?.222 11
a ;redictors! ,"onstant-, +atisfaction, ;rice, Taste, @istribution
b @ependent Lariable! >verall opinion
".e able s.ows .e F es for overall model significance w.ic. includes bo. .e model
w.ere all .e variables are included and w.en all .e insignifican variables are dropped from
.e model.
Ho1 B50 #!"r" Bi )"no"s all !" "6planaor$ -ariabl"s% 7Mo)"l is no a)"8&a"9
H:1 B;0 7Mo)"l is a)"8&a"9
31
2indings=
The AA>LA table gives the result of B5test. B5test measures the 9oint significance of
the independent variablesXwhether the independent variables taken together would
influence the dependent variable or not. n other words, the B5test is a procedure
used to determine whether there is more variability in the scores of one sample
variance compared to another sample variance.
>ur ++= ,=egression +um of +Euares- is 73.1%8 while ++' ,'rror +um of +Euares-
is 8.2$7, giving a ++T ,Total +um of +Euares of 4?.22. The B5ratio calculated by
+;++ is 87.%?4. f the calculated B5statistic is greater than the critical B5statistic,
then the test is significant. @egrees of freedom are the number of observations
minus the number of constraints or assumptions needed to calculate a statistical
item. The critical B5statistic for numerator degrees of freedom 7 and denominator
degrees of freedom 1% is 7.$844 ,found from the B5table-. +ince the calculated test
statistic is greater than the critical value, the test is significant and the model is
adeEuate, hence re9ect the null hypothesis.
Coe..icientsOT8test
Tabe 3,= Coe..icients#a$
.odel
*nstandardi0ed
"oefficients
+tandardi0ed
"oefficients t +ig.
B +td. 'rror Beta
1 ,"onstant- .11? .733 4.414 .221
@istribution 1.7?$ .14? 1.172 1.73? .222
;rice 5.%83 .1$1 5.423 54.1$1 .222
Taste .718 .1$4 .13$ 1.%73 .142
+atisfaction 5.42$ .71$ 5.111 51.$1? .1?2
a @ependent Lariable! >verall opinion
0o= !ndependent 'ariabes are insigni.icant
01= !ndependent 'ariabes are insigni.icant
!nterpretations > 2indings=
37
#ikewise two5tailed T5tests have also been calculated form +;++. The t5distribution
is a symmetrical bell5shaped distribution that is contingent on sample si0e. The
students t5distribution is like standard normal distributionXit has a mean of 0ero and
standard deviation of 1. T5test is used to test individual significance of the
independent variables. Aormally, if the calculated t5statistic is greater than the critical
t5value, than the test would be considered significant.
Bor @istribution ,which is a cluster independent variable consisting of si&
variables-, the calculated t5statistic is 1.73?, which is higher than the critical value of
1.1? ,appro&imated form the t5table, for degree of freedom 1? for two5tailed tests-
considering a 1%G confidence level and %G significance level, so the independent
variable product line is considered significant.
Beta calculated for distribution is 1.172, which means one unit change in
distribution will bring a positive 1.172 change in verall pinion assuming that other
independent variables remain same >= distribution has positive 1.172 effects on
>verall >pinion.
Bor ;rice, p5value is less than .2% from the above table soF we can re9ect the
null hypothesis and say that ;rice is significant for the model.
Beta calculated for price is 5.423, which means price has negative impact on
>verall >pinion by factor of 5.423 assuming all other variables remaining same.
Bor taste p5vale found is greater than .2%, thus cannot able to re9ect the Aull
/ypothesis and making the variable insignificant
Beta calculated for taste is .13$, which means price has positive impact on
>verall >pinion by factor of .13$ assuming all other variables remaining same.
Bor +atisfaction, the calculated t5statistic is 51.$1?, which is less than the
critical value of 1.1? ,appro&imated form the t5table, for degree of freedom 1? for
two5tailed tests- considering a 1%G confidence level and %G significance level.
.oreover the p5value is greater than .2%, so the independent variable satisfaction is
considered not significant.
34
Beta calculated for +atisfaction is 5.111, which means satisfaction has
negative impact on >verall >pinion by factor of 5.423 assuming all other variables
remaining same.
As a related topic, it must also be pointed out that the critical t5value for 11G
confidence level is 7.%3?, which is lower than the calculated test statistics of product,
so we can also test the significance of the two independent variables at level %. n
other words, the variables are significant in determining the overall opinion and
overall satisfaction of the customers.
&evised &egression (ode
R"-is") H$po!"sis1
?The low income group population is pleased with Star Filter cigarettes distribution and
price where overall opinion is the dependent on these factors.
&evised &egression (ode=
Overa OpinionL M N M 1 #9istribution$ N M 2 #)rice$
)here,
QV >verall >pinion
W V "onstant
HV ndependent variables,
H1V @istribution,
H7 V ;rice,
1n .e acual ,egression *odel5 "ase and 4aisfacion .e wo independen variables found
o be insignifican for .e model so for beer accuracy dependency .e wo variables were
dropped from .e original *odel.
Tabe 35= (ode +ummary
.od
el =
=
+Euare
Ad9usted
=
+Euare
+td. 'rror
of the
'stimate
1 .8$?,a- .31? .312 .42?
3$
a ;redictors! ,"onstant-, ;rice, @istribution
2indings=
After dropping the variables the model still shows a strong "o5efficient correlation of
31.?G and Ad9usted =5sEuare of 31G which is good and a good indicator for the
model to be true. Thus, we can say that overall >pinion of the +tar Bilter "onsumers
are dependent on @istribution and ;rice solely.
Tabe 31= Coe..icients#a$
.od
el
*nstandardi0ed
"oefficients
+tandardi0
ed
"oefficients t +ig.
B
+td.
'rror Beta
1 ,"onstan
t-
.8%$ .741 4.%?1 .221
@istributi
on
1.748 .213 1.28$ 17.333 .222
;rice 5.?1$ .1%2 5.4$8 5$.211 .222
a @ependent Lariable! >verall opinion
0o= !ndependent 'ariabes are statisticay insigni.icant
01= !ndependent 'ariabes are statisticay signi.icant
2indings=
Brom the above table we can see that p5value for both @istribution and ;rice is less
than .2% thus re9ecting the null /ypothesis that the variables are insignificant.
3%
Tabe "7= A6O'A#b$
.od
el
+um of
+Euares df
.ean
+Euare B +ig.
1 =egressi
on
77.12% 7 11.$%7 177.148 .222,a-
=esidual 1.21% 13 .21$
Total 47.222 11
a ;redictors! ,"onstant-, ;rice, @istribution
b @ependent Lariable! >verall opinion
Ho1 B50 #!"r" Bi )"no"s all !" "6planaor$ -ariabl"s% 7Mo)"l is no a)"8&a"9
H:1 B;0 7Mo)"l is a)"8&a"9
2indings=
>nce again we can say the variables @istribution and ;rice are significant for .odel
as the p5value is less than .2%, thus re9ecting the Aull /ypothesis that variables
,@istribution and ;rice- are not AdeEuate for the model.
3?
&ecommendation
After the analysis of the customer satisfaction of the +tar Bilter "igarette of British
American Tobacco Bangladesh #imited, it is now time to make recommendation.
@fer analyAing .e resuls of .e survey5 we can summariAe .e findings as follows.
Bollowing are the recommendation to British American Tobacco Bangladesh #imited
through which they can make more growth in their market share and can redevelop
effective marketing strategy5
>ver half of the customers said they are very satisfied with +tar Bilter and
they will recommend it to others. +o this satisfied group can serve as a
promotional help for +tar Bilter through which BATB can spread positive word5
of5mouth about their products and services. The study also showed that those
who are very satisfied with +tar Bilter are mostly service5holders. +o BATB
also needs to satisfy the customers who are student, businessman etc.
Brom the analysis we can see that ma9ority of the population who take +tar
Bilter fall in the age group of $?5%% and more. +o the market share of +tar
filter is focused to this group of population only. Thus BATB should set up a
new marketing strategy to attract the young customer base to +tar Bilter.
As most of the customers are taste conscious, so BATB must concentrate on
its products taste as a top priority. "ustomers preferred brand preference
factor is taste, thus the products Euality must be ensured by the company for
further growth.
Advertisement and ;romotional campaign is not satisfactory to the customers.
+o to attract remaining and as well as new customer base, company should
develop strong promotional activities to create strong brand image.
As the target customers are low income group people so the advertisements
should be more rural area focused.
"ompany should engage in activities which increase the brand eEuity.
;rice cannot be increased now, because people dont believe the price and
Euality of star filter is satisfactory.
33
+ometimes strong distribution channel is more important than strong
marketing promotion. Because customers buying behavior is affected by the
retailers motivation.
Because of strong substitutes like Biri the price elasticity of star filter is very
high. ;eople will change their preference for a non5brand item from a brand
item 9ust for a smallest change in price.
n urban areas British American Tobacco faces lower competition than rural
areas. #ack of strong brand names in urban areas has lessened the
competition whereas in rural areas +tar filter has to compete with Biri and
other substitutes.
As run regression in the +;++ and performed different statistical tests we
found Ad9usted = +Euare to be 31.?G, which is, a good predictor of the model
given the number of different variables that we have. have @istribution,
;rice, Taste and +atisfaction as the independent variables which are a cluster
of twenty different sub5variables. Given the e&istence of these twenty
variables believe that an ad9usted = +Euare of 31.?Gis e&tremely good.
performed T5tests and B5tests to determine the individual and 9oint
significance of the variables respectively. performed B5test in AA>LA and
individual coefficient tests. had the dependent variable to be >verall >pinion
about +tar Bilter and the independent variables to be @istribution, ;rice, Taste
and +atisfaction. Among the four independent variable , teo of them S
distribution and price were proved to be significant both individually in t5test
and 9ointly in B5test, proving the validity of the hypothesis.
performed internal reliability tests for each of the variables in different Euestions of
our Euestionnaire. #ikert scale was used to identify customers marking on different
attributes of products. All the tests proved internal reliability of the variables that
had.
38
Concusion
After the detailed analysis of determining the customer satisfaction of +tar Bilter
"igarette of British American Tobacco Bangladesh #imited, it is clear that most of the
customers are satisfied with +tar Bilter "igarette of British American Tobacco
Bangladesh #imited. They are satisfied with the taste and product price. Although
there are some problems with the promotion and advertisement of +tar Bilter ma9ority
of the customers are happy with the product. f BATB can make proper ad9ustment in
their marketing strategy of +tar Bilter "igarette by analy0ing the customer
satisfaction factors, they will be able to have more satisfied customer in future. +o a
proper strategy especially of marketing and Euality management is needed for BATB
to make its one of the most profitable brand more popular among the customers. f
British American Tobacco Bangladesh #imited makes effective strategies to promote
and sell their product, they will soon be more profitable company than before.
&e.erences
31
1. +pss513 Tutorial Guide
7. +tatistics for Business and 'conomics, ;aul Aewbold, %
th
'dition
4. http!JJwww.google.com
$. British American Tobacco Bangladesh homepage
http!JJ723.%?.111.18%JbatbJinde&.html
%. http!JJwww.weikipedia.com
?. http!JJwww.bat.com
3. BATB Annual =eport 7228
82