Tobacco/ Cigarette Industry in Bangladesh (সিগারেট খাতের বর্তমান অবস্থা)

13.1.1 History:

Tobacco has been smoked for at least the last three thousand years. Christopher Columbus found it when he landed in the Americas in 1492, but ancient temple carvings show tobacco being smoked in Central America as long ago as 1,000 BC.

Ever since it arrived in Europe in the late 15th century, tobacco has divided opinion, sparked controversy and generated substantial revenue through tax. Tracking its heritage back to a joint venture formed by the Imperial Tobacco Company of the United Kingdom and the American Tobacco Company of the USA in 1902, today’s British American Tobacco (a pioneer and leading multinational cigarette manufacturer) was born on the world stage.

13.1.2. Tobacco industry in Bangladesh:

In Indian sub-continent British American Tobacco Bangladesh (BATB) is the number one tobacco company in tobacco industry of Bangladesh. It has been dominating as the unique market leader for nearly a century. It was only possible because of its effective practices of management processes.

According to a research in December 23, 2009, the total smokers in Bangladesh are 20.3 million. Global Adult Tobacco Survey (GATS) and Bangladesh report 2009 mentioned the number of smokers in Bangladesh more than 15 years are 43.3 percent. The cigarette industry is growing at a rate of 3.4%. The Biri market which was 70.3% of the total market is declining, now it is 69%.

The smokers are upgrading from biri to low segment of cigarettes. The number of tobacco user is higher in rural area than urban area. The market share of BATB is around 44% in the Dhaka Metro.

Besides BATB, the other companies in the same industries are: Dhaka Tobacco Company, Alpha Tobacco Company, Sonali Tobacco, Abul Khair Group, Nasir Gold Tobacco, Imperial Tobacco etc.

Cigarette industries follow different segments for marketing and satisfying customers. There are three market segments in tobacco industry- premium, medium and the lower segments. Not all the companies in tobacco industry cover these segments. Dhaka Tobacco covers the premium and lower segments, Sonali Tobacco, Abul Khaier Tobacco and Alpha Tobacco operates in the lower segments of the tobacco industries. Only BATB operates in all the segments of the market. In every segment there are various brands which may cause the brand dilution and at the same time the brand switching can occur.

Brands are names which give a reliance of quality product. As the customers’ taste varies and also the price of a product is a vital matter the segment and brands are different. One common characteristic is in every segment the different brands are almost at the same prices. The operative brands in Bangladesh tobacco industries are given below.

Segments	BATB	Dhaka Tobacco	Abul Khair Tobacco	Sonali Tobacco
Premium	B & H- Regular and Light	Marlboro	N/A	N/A
Medium	JPGL - Regular and Light, PALL MALL	Castle	N/A	N/A
Lower	Star, Capstan, Scissors, Pilot, Gold Flake	Navy, Gold Mine, Sheikh, K2.	Marise, Gold Life, Tope 10.	Sunmun, Gold Hill.