itc sales and distribution by dipak patel

ITC SUNFEAST ITC SUNFEAST BISCUITS BISCUITS

SALES AND DISTRIBUTIONSALES AND DISTRIBUTION

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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

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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

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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

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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.

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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.

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Presented by:Presented by: Padalia NandanPadalia Nandan Dipak PatelDipak Patel

Shawinder Paul SinghShawinder Paul Singh

ITC SUNFEAST ITC SUNFEAST BISCUITS BISCUITS