itc sales and distribution by dipak patel
DESCRIPTION
this is overall study of itc biscuit sales and distribution channelTRANSCRIPT
ITC SUNFEAST ITC SUNFEAST BISCUITS BISCUITS
SALES AND DISTRIBUTIONSALES AND DISTRIBUTION
Discussion OutlineDiscussion Outline
Discussion OutlineDiscussion Outline
Introduction to ITCIntroduction to ITC One of the worlds most reputable companyOne of the worlds most reputable company
Market capitalization of nearly US $ 18 billionMarket capitalization of nearly US $ 18 billion
Turnover of over US $ 5.1 BillionTurnover of over US $ 5.1 Billion
Post tax profit of US $750 MillionPost tax profit of US $750 Million
Diversified product portfolioDiversified product portfolio
Direct group employment of 29000 Direct group employment of 29000
Introduction to SunfeastIntroduction to Sunfeast
Launched in July, 2003Launched in July, 2003
Growth rate of 53%Growth rate of 53%
Turnover of over 1000 croreTurnover of over 1000 crore
Wide categorizationWide categorization
PRODUCTSPRODUCTS COMPETITORSCOMPETITORS
GLUCOSEGLUCOSE PARLE, BRITANNIA AND HORLICKSPARLE, BRITANNIA AND HORLICKS
MARIEMARIE BRITANNIA AND BISK FARMBRITANNIA AND BISK FARM
BUTTERBITE AND CREAM BUTTERBITE AND CREAM PRIYA GOLD, ANMOL, BRITANNIA PRIYA GOLD, ANMOL, BRITANNIA AND PARLEAND PARLE
Products at a Glance
Discussion OutlineDiscussion Outline
Organizational StructureOrganizational Structure
Recruitment at ITC
Entry levelEntry level Premier management institutesPremier management institutes
Middle levelMiddle level IntegrityIntegrity A "will do" attitudeA "will do" attitude High energyHigh energy CreativityCreativity LeadershipLeadership Team skillsTeam skills Ability to think strategicallyAbility to think strategically
Discussion OutlineDiscussion Outline
DiagramDiagram
FOOD AND
BEVERAGES
OTHER FMCG
PRODUCTS
FMCG
Distribution of Food ProductsDistribution of Food Products
Strict compliance standards, low profit Strict compliance standards, low profit margins, intense competition, high margins, intense competition, high customer-service expectations.customer-service expectations.
Fast and effective sales ordering processes.Fast and effective sales ordering processes.
FlexibilityFlexibility
Quick reactionQuick reaction
Important FactorsImportant Factors
FOODFOOD
MARGINSMARGINSCREDIT SYSTEMSCREDIT SYSTEMS
STOCK OUTSSTOCK OUTS
WASTAGESWASTAGES
PROMOTIONS PROMOTIONS
DISTRIBUTION CHANNELS DISTRIBUTION CHANNELS
Discussion OutlineDiscussion Outline
Distribution ChannelDistribution Channel
Flow DiagramFlow Diagram
FACTORFACTORYY
FACTORFACTORYY
CNFCNFCNFCNF
WHOLESALE WHOLESALE DISTRIBUTODISTRIBUTO
RR
WHOLESALE WHOLESALE DISTRIBUTODISTRIBUTO
RR
WHOLESALE WHOLESALE DEALER DEALER
BASEBASE
WHOLESALE WHOLESALE DEALER DEALER
BASEBASE
RETAILERRETAILERRETAILERRETAILER
Distribution SystemDistribution System
ITC uses FIFO method to reduce the wastage ITC uses FIFO method to reduce the wastage of goods due to expiry.of goods due to expiry.
They also keep the good on constant move They also keep the good on constant move from low sales area to high sales area.from low sales area to high sales area.
The company collects all the expired goods The company collects all the expired goods four times a year, and destroys them.four times a year, and destroys them.
Retailers must return expired or damaged Retailers must return expired or damaged products within six months after the date of products within six months after the date of expire.expire.
Distribution SystemDistribution System
Adjustment for them is done in three months Adjustment for them is done in three months time.time.
ITC provides their retailers with racks, ITC provides their retailers with racks, hangers, etc to display the products.hangers, etc to display the products.
The benefits received by the retailers depend The benefits received by the retailers depend upon their sales volume and also the location upon their sales volume and also the location of their shops.of their shops.
ITC has hired IMRB to do the market ITC has hired IMRB to do the market research.research.
Discussion OutlineDiscussion Outline
ObservationsObservations
Food products are normally a high volume Food products are normally a high volume ball game.ball game.
Products have to essentially be available in Products have to essentially be available in the market at all given points of time and at the market at all given points of time and at all given points of purchase.all given points of purchase.
The supply of products takes place virtually The supply of products takes place virtually on a daily basis in fixed quotas or otherwise, on a daily basis in fixed quotas or otherwise, to retailers as per their requisitions and the to retailers as per their requisitions and the anticipation of demand and the performance anticipation of demand and the performance of products in the recent past. of products in the recent past.
ObservationsObservations
The skeleton of distribution system is same The skeleton of distribution system is same for all the companies.for all the companies.
Companies try very hard to make a difference Companies try very hard to make a difference at some point to get the competitive at some point to get the competitive advantage.advantage.
ITC has a very strong distribution network for ITC has a very strong distribution network for their cigarette brands and they are using this their cigarette brands and they are using this network to push their new biscuit brands. network to push their new biscuit brands.
Credit system also depends upon the position Credit system also depends upon the position of the product in the market.of the product in the market.
ObservationsObservations
Companies with top product are hard to Companies with top product are hard to bargain on credits.bargain on credits.
Companies also use their premium products Companies also use their premium products to push their non premium products.to push their non premium products.
Discussion OutlineDiscussion Outline
Presented by:Presented by: Padalia NandanPadalia Nandan Dipak PatelDipak Patel
Shawinder Paul SinghShawinder Paul Singh
ITC SUNFEAST ITC SUNFEAST BISCUITS BISCUITS