Introduction

British American Tobacco (BAT) Established in 1902, when the United Kingdom's Imperial Tobacco Company and the American Tobacco Company of the USA agreed to form a joint venture, the British-American Tobacco Company Ltd. The parent companies agreed not to trade in each other's domestic territory and to assign trademarks, export businesses and overseas subsidiaries to the joint ventures. James 'Buck' Duke became its chairman. The British American Tobacco business thus began life in countries as diverse as Canada, China, Germany, South Africa, New Zealand and Australia, but not in the United Kingdom or USA. British American Tobacco Company Limited is one of the first multinational companies to invest in Bangladesh. Their operation in the country first started in 1910. Bangladesh Tobacco Company Private Limited, which was formed after independence, became British American Tobacco Bangladesh in 1998 to align their identity with other operating companies in the British American Tobacco Group. British American Tobacco Bangladesh is also one of the oldest and largest blue chip multinational companies operating in Bangladesh. The British American Group holds 65.91% share in the company. The Government owns 26.57% through several of its agencies, while 7.52% is owned by other stakeholders. They are a leading business organization in the industrial sector employing more than 1,300 employees directly and a further 40,000 indirectly as farmers, distributors and suppliers. They have business contracts directly with around 32,500 registered farmers who produce high quality tobacco leaf.

The Marketing Mix

All marketing is based on the fundamental 4 Ps: product, price, promotion and place. For the company, promotion is now much more limited and very carefully controlled. But its strong brand growth in recent years indicates that a clear focus on appropriate marketing based on the other 4 Ps is a clear pathway to success.

Product
British American Tobaccos two basics for success were devise a superior product and hire the best people to make it. It believes thats as true now as it was a century ago. Today, it is delivering innovations and refinements to its products across leaf blends, finer cut tobacco, new filters, new formats such as slimmer products and improved tastes in segments such as menthol. The companys ability to innovate while maintaining consistency and quality of leaf, components, materials and ingredients and also meeting regulatory compliance for its products - is backed by the product science skills of Research & Development teams. In the leaf supply chain, its proactive approach to agronomy support for farmers gives the company access to responsibly managed sources of quality leaf supply that is unrivalled in the industry. The company wants to offer consumers a less harmful way to enjoy tobacco, and in several countries it is selling or test marketing smokeless Swedishstyle snus, which is supported by several independent health experts as significantly less harmful than smoking cigarettes.

Some brands:
International Brands include Dunhill, Kent, Lucky Strike, Pall Mall, Vogue, Rothmans, Peter Stuyvesant, Benson & Hedges, Winfield, John Player, State Express 555, KOOL, and Viceroy. However, British American Tobacco does not necessarily own the rights to all of these brands in every nation they are marketed. Local brands owned by British American Tobacco include, Belmont (Chile), Jockey Club (Argentina), Stradbroke (Australia), du Maurier (Canada), North State (Finland), HB (Germany), Sopianae (Hungary), Wills (India), Ardath (Indonesia), Carrolls (Ireland), Boots (Mexico), Gold Leaf (Pakistan), Jan III Sobieski (Poland), Yava Gold (Russia), Courtleigh (South Africa), Parisienne (Switzerland), and Xon (Uzbekistan), Craven 'A' (Vietnam)as well as BAT snus.

Price
Price competition in the business can be fierce. For example, the value for money segment of a market may grow as higher tobacco taxes make premium brands more expensive and some consumers look to trade down. The companys people know that one brand doesnt fit all, and their diversified, segmented global portfolio enables them to offer quality brands at the super premium, premium, mid-price and value-for-money price points. They are keenly aware of pricing and ready to compete vigorously. But they know that consumers also have a strong interest in quality and every right to

expect it. Their reputation for quality is a strong aspect of their competitive offer at every price point and they invest to maintain it. There is some Retail price of Tobacco products:
Brand & Brand Variant Including Pack Size Quantity Released tor Sale Recommended Recall Price per Pack, (an 2008 10.90 Delisted 10:90 13 J0 Delisted 10.90 13.30 Delisted 11.00 13.30 Delisted 11.00 11.00 13.30 Delisted 11.00 9.70 11.90 13.60 Delisted 9,70 11.90 13.60 Delisted 13-60 9.70 H,90 Delisted 14J0 10.20 11.30 Delisted 24.30 Delisted 24.30 12.30 14.70 10.20 12.30

BENSON & HEDGES EXTRA MILD 20 (B&H SUBTLE 20) BENSON & HEDGES EXTRA MILD LP TIN 20 (B&H SUBTLE UP TIN 20) BENSON & HEDGES GOLDEN MILD 20 NZ (B&H RICH 20) BENSON ft HEDGES GOLDEN MILD 25 Ht (B&H RICH 25) BENSON & HEDGES GOLDEN MILD LEP TIN 20 (B&H RICH LEP TIN 20) BENSON St HEDGES FILTER20 NZB&H CLASSIC 20) BENSON & HEDGES FILTER 25 NZ (B&H CLASSIC 25) BENSON & HEDGES FILTER LEP TIN 20 (B&H CLASSIC UP TIN 20) DUNHILLK5 FILTER 20 (DUNHILL PREMER 20) DUNHILL KS FILTER 25 <DUNHILL PREMIER 25) OUNHILL KS FILTER 20 LEP TIN (DUNHLL PREMIER LEP TIN 20) DNHILL MENTHOL MiLD 20 (DUNH1LL CHILLED 20) DUNHia SUPERIOR MILD 20 (DUNHLL DISTINCT 2Q) DUNHILL SUPERIOR MILD 25 (DNHILL DISTINCT 25) DUNHILL5UPER10R MILD 20 LEP TN#>UNHILL DISTINCT LEP TIN 20) DUNHILL ULTRA MILD 20 (DUNHtU REFINED 20) FREEDOM EXTRA MILD 20 (FREEDOM BLUE 20) FREEDOM EXTRA MR 25 tfDOMLLE 25) FREEDOM EXTRA MILD 30 (FREEDOM BLUE 30) FREEDOM EXTRA MILD 2X20 (FREEDOM BLUE 2X20) FREEDOM MENTHOL MILD 20 (FREEDOM GREEN 20) FREEDOM MENTHOL MUD 25 (FREEDOM CREEN 25) FREEDOM MENTHOL MUD 30 (FRDOM CREEN 30) FREEDOM MENTHOL MUD 2X20 (FREEDOM GREEN 2X20) FREEDOM FUTR 30 CFREEDOM ORANGE 50) FREEDOM FILTER 20 CFREEDOM ORANGE 20) FREEDOM nam 25 (FREEDOM ORANGE 25) FREEDOM HLTER 2X20 (FREEDOM ORANGE 2X20) HODAY EXTRA MILD 30 (HOUDAY BLUE 30) HOLIDAY EXTRA MILO 20 (HOUAT BLUE 20) HOUDAY EXTRA MILD 2$ (HOUDAV BUJE 25) HOUDAV EXTRA MILD 2X20 (HOUDAY BLUE 2X20) HOLIDAY EXTRA MILD 2X25 (HOUDAY BLUE 2X25) HOUDAY MENTHOL MILD 2X20 (HOUDAY GREEN 2X20) HOUDAY MENTHOL MILD 2X23 (HOUDAY GREEN 2X25) HOLIDAY MENTHOL 25 (HOUDAY DARK GREEN 25) HOUDAY MENTHOL 30 (HOUDAY DARK GREEN 30) HOUDAY MENTHOL MILD 20 (HOUDAY CREEN 20) HOUDAY MENTHOL MILD 25 (HOUDAY GREEN 25)

13,797,000 140,000 28,709,000 28,407,000 337,000 108,452,000 111,001,000 800,000 28,900,000 27,901,000 499,000 1>109,000 30,605,000 19,704,000 300,000 4,106,000 924,000 985,000 1,908,000 42,000 1,864,000 1,035,000 3418,000 01,000 13,138,000 6,731,000 3,764,000 190,000 24,318,000 35/110,000 27,272,000 213,000 4,951,000 228,000 5,030,000 5,392,000 6,586,000 49,225,000 28,564,000

HOLIDAY MENTHOL MILD 30 (HOUDAY GREEN 30) HOUDAY SPECIAL FILTER 20 (HOLIDAY RED 20) HOUDAY SPCIAL HLTER 25 (HOUDAY RED 2Sy HOUDAY SPECIAL FILTER 2X20 (HOLIDAY RED 2X20) HOUDAY SPECIAL FILTER 30 (HOUDAY RED 30) HOUDAY SPECIAL FILTER 2X25 (HOLIDAY RED 2X25) HOLIDAY SUPER MILD 20 (HOUDAY COLD 20) HOUDAY SUPER MRS 25 (HOUDAY C0LD25) HOLIDAY SUPER MILO 30 (HOLIDAY GOLD 30).

31,755,000 188,567,000 98303,000 584,000 122>514,000 16,099,000 4,438,000 5,701,000 4,001,000

14.70 10.20 12.30 Delisted 14.70 24.30 10.20 1230 14.70

Place
The company wants their brands to be where consumers want to buy them, when they want them and never out-of-stock. The company wants them to be in the right types of outlets - for example, for BATs premium brands to be in up-market bars, restaurants and hotels. In the Fast Moving Consumer Goods sector, getting this right this takes investment in fast and efficient distribution, in order capture and fulfillment, and in excellent trade marketing teams who build and manage the relationships with retailers big and small from supermarket giants or convenience store chains to individual cocktail bars or neighborhood corner shops. BAT aim to be a world class supplier to the trade and the trade customers tell them were on the right track. In their regular customer satisfaction surveys, BATs trade marketers are frequently ranked amongst the very best on professionalism and service.

Marketing and distribution

At British American Tobacco, the consumer is at the centre of our business. Marketing in the tobacco industry requires skills beyond the demands of other products. The fundamentals of the marketing challenge are the ability to differentiate our marketing initiatives, to manage productive and profitable relationships with our key accounts, to integrate strategies above and below-the-line and to innovate, while always adhering to our International Marketing Standards.

Managing business channels The effective management of relevant business channels is one of our key marketing activities. Although business channels vary from market to market depending on the trade structure, building close professional relationships with key accounts and in Horeca are likely to be priorities for most markets. Key activities include:

Channel strategy development Negotiations with key accounts Category management and ECR Account portfolio management Account servicing Pricing, promotional control and evaluation

Managing availability and distribution Ensuring that consumers are able to purchase the products they require both where and when they want them plays a major part in achieving a high market share. Key activities include:

Development of distribution strategy Develop and implement distribution plans Implement merchandising and point of sale policy Monitor and manage out of stocks Build an effective sales orientated organisation

Promotion
British American Tobacco (BAT) has been a stout defender of the principle that if a product is legally on sale in a market then it should also be legal to advertise that product's brands. Increasing restrictions on tobacco advertising around the world have limited the company's ability to promote their brands in recent times, especially in their traditional developed world markets.

BAT has found many imaginative ways over the years to keep its brands in the public eye. As recently as 1996 they secured an arrangement to sponsor the Cricket World Cup which was branded the "Wills World Cup" and thereby achieved a high level of brand recognition for the Wills cigarette brand in India where young cricket fans were a key target market. BAT also sponsor the London Symphony Orchestra. BAT has also used the glamour of motor sport to promote its brands, most notably in its setting up of British American Racing. Although Formula One is an exceptionally expensive sport, for BAT the high cost of running an F1 team is justified as a promotional expense because other brand promotion (for Lucky Strike) options are not available in many markets. However in 2005 a European Union (EU) directive was brought into force which required national governments to legislate to prevent tobacco sponsorship. The livery of cars competing at circuits outside of EU jurisdiction can continue (in some cases) to promote tobacco brands but these opportunities are declining as anti-tobacco legislation begins to bite. BAT announced in September 2005 that it would sell its 55% shareholding in BAR to Honda, the team's engine supplier. For the 2006 season, the team was renamed as Honda F1 Racing Team, with BAT only advertised at a couple of races. All links between the two companies were severed for 2007