an itc presentation by jre students
DESCRIPTION
TRANSCRIPT
ITC SUNFEAST spread the smile
GROUP 9(yogesh,waseem,tanay,su
mit,Vinod patel & vinod
kumar)
Discussion Outline
INTRODUCTION
ORGANIZATIONAL STRUCTURE
OBSERVATIONS
CHALLENGES OF FOOD DISTRIBUTION
DISTRIBUTION SYSTEM OF SUNFEAST
Introduction to ITC One of the worlds most reputable company
Market capitalization of nearly US $ 18 billion
Turnover of over US $ 5.1 Billion
Post tax profit of US $750 Million
Diversified product portfolio
Direct group employment of 29000
Introduction to Sunfeast
Launched in July, 2003
Growth rate of 53%
Turnover of over 1000 crore
Wide categorization
PRODUCTS COMPETITORS
GLUCOSE PARLE, BRITANNIA AND HORLICKS
MARIE BRITANNIA AND BISK FARM
BUTTERBITE AND CREAM PRIYA GOLD, ANMOL, BRITANNIA AND PARLE
Products at a Glance
Organizational Structure
Recruitment at ITC
Entry level Premier management institutes
Middle level Integrity A "will do" attitude High energy Creativity Leadership Team skills Ability to think strategically
Grass root level
Diagram
FOOD AND
BEVERAGES
OTHER FMCG
PRODUCTS
FMCG
Distribution of Food Products
Strict compliance standards, low profit margins, intense competition, high customer-service expectations.
Fast and effective sales ordering processes.
Flexibility
Quick reaction
Important Factors
FOOD
MARGINSCREDIT SYSTEMS
STOCK OUTS
WASTAGES
PROMOTIONS
DISTRIBUTION CHANNELS
Distribution Channel
Flow Diagram
FACTORY
CNF
WHOLESALE DISTRIBUTO
R
WHOLESALE DEALER
BASE
RETAILER
Distribution System
ITC uses FIFO method to reduce the wastage of goods due to expiry.
They also keep the good on constant move from low sales area to high sales area.
The company collects all the expired goods four times a year, and destroys them.
Retailers must return expired or damaged products within six months after the date of expire.
Distribution System
Adjustment for them is done in three months time.
ITC provides their retailers with racks, hangers, etc to display the products.
The benefits received by the retailers depend upon their sales volume and also the location of their shops.
ITC has hired IMRB to do the market research.
Observations
Food products are normally a high volume ball game.
Products have to essentially be available in the market at all given points of time and at all given points of purchase.
The supply of products takes place virtually on a daily basis in fixed quotas or otherwise, to retailers as per their requisitions and the anticipation of demand and the performance of products in the recent past.
Observations
The skeleton of distribution system is same for all the companies.
Companies try very hard to make a difference at some point to get the competitive advantage.
ITC has a very strong distribution network for their cigarette brands and they are using this network to push their new biscuit brands.
Credit system also depends upon the position of the product in the market.
Observations
Companies with top product are hard to bargain on credits.
Companies also use their premium products to push their non premium products.