BAT Bangladesh Distribution Management

Reference

http://www.batbangladesh.com/

http://www.bat.com/

http://en.wikipedia.org/wiki/British_American_Tobacco

Major Md Zil Bahrain Jaigirdar (Retd)

Business Security Manager

British American Tobacco Bangladesh

Mobile: 01730703678

E-mail: zil_bahrain-jaigirdar@bat.com

"Smoking is Injurious to Health,

STOP SMOKING"

Conclusion

BAT is the one of the largest tobacco producing

company not only in Bangladesh but also in the world. BAT is very much reliable and responsive

to the distributors

Introduction

WILD SOULS

Name ID

Mirja Asadullah Galib 1330546

Md. Mohiuddin Suhan 1110677

Sohanur Rahman 1220393

Sakura Tajmein 1220703

Junaied Huq 1110505

* world’s second largest quoted tobacco group by global market share.

* A joint venture between the UK’s Imperial

* Tobacco Company and the American Tobacco Company

* Founded by James ‘Buck’ Duke.

* And has leadership in more than 50 markets.

* Has over 55,000 employees all over the world.

* Operating in Bangladesh since pre-independence

* Company headquarters and cigarette factory are based in Dhaka

* A tobacco leaf processing operation in Kushtia

* The company employs more than 1300 Bangladesh.

* Awarded Class A status as part of the international and prestigious total business excellence

programmed

Conflicts

* Pricing issues:

Whenever they sold any product, they no longer

have any right to influence for pricing.

But sometimes they set a standard price

for all distributors.

* New product launches

get idea from its distributor.

* New product development.

BAT has a very good relationship with its distributors. Mutual understanding is the key point.

* Regional Vs national distributors.

Regional distributors don’t like national distributor and refer them as “box pusher”

* Direct Vs Indirect channel.

national distributors don’t care regional distributors.

* The phantom channel.

aware of grey market

Independent University, Bangladesh

Communication mechanism of BAT

* Field visit by manufacturer personnel.

visits by the manager and a high authority

* Channel advisory council.

With the best distributors, they arrange meeting to get any recommendation.

sometimes arrange the meeting abroad

* A media communication.

BAT wants their distributor to take lead

Products

# Premium- Benson & Hedges.

# High - Gold Leaf, Pall Mall, Capstan.

# Medium - Star

# Low - Pilot, Bristol, Hollywood

Special Training.

Program objectives

Selection of distributors for training.

How much training is needed?

BAT conducts the training.

Training both in home and abroad.

1-2 month training program.

Contents like products and distribution skills.

Modern and easy methods used for training.

Distributors get trained and receives certificate.

Distributors evaluate the program.

Channel selection Criteria of BAT

Full product line.

Consistent and responsive sales and marketing support.

provide sales and marketing support.

Payment terms.

Provides credit facility

Enticement from BAT for distributors

Distribution Network

* Financial strength of the distributor.

- Bank statement of the distributor.

- Asset.

- Any other supporting document.

* Previous experience of the distributor.

- at least 2-3 years of experience.

- trade license.

* Sales revenue performance.

* Overall condition of facilities.

want that their distributors must have the overall facilities that a good distributor company has.

* Knowledge of local market condition.

* Reputation.

-Reputation among customers, trade publications, trade organization and the local community is a strong power of the distributors.

Quality product

Obviously BAT provides quality product.

Adequate discounts

provides 3.5% discounts on their product .

Prompt delivery

has its own transportation.

Logistic support

provides logistic support for the distributors

Price protection

* 63 authorized distributors

* The company procures tobacco leaf maintaining the international standard and it imports processed tobacco leaf for its international brands.

* 7 Leaf Depots and a Head office consisting of Corporate Head office and Production Head office.

Distribution Network

* Generates high revenue

from its indirect

channelRegional

sales offices

arelocated in

Dhaka, Khulna,

Chittagong, Sylhet

and Rajshahi.