Distribution Network of ITC

8/2/2019 Distribution Network of ITC

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Distribution Network of ITC

Submitted by:

Shefali Gupta

ISBE-A-SS-10-12


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Introduction

ITC is one of India's foremost private sector companies with a market capitalizationof nearly US $ 19 billion and a turnover of over US $ 5 billion

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,Packaging, Agri-Business, Packaged Foods &Confectionery, Information Technology,

Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCGproducts

ITC's diversified status originates from its corporate strategy aimed at creating multipledrivers of growth anchored on its time-tested core competencies: unmatched

distribution reach, superior brand-building capabilities, effective supply chainmanagement.


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Overview


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The Composition

Manufacturing Unit

Separate for each product lineContract ManufacturingBackward IntegrationE-Chaupal Storage Hubs

Stores all the products

Distribution

Exclusive based on the populationNeeds to stock all FMCG products Whole sellers Retailers Paanwalas

Deepest penetration possible


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Channel Objectives

Consumer Behavioro Quality Consciouso Convenience goods, Needs Intensive distributiono Demands varietyo Very less waiting time

Company Objectiveso Reach masseso Rural penetrationo Diversificationo Competitive advantage

Alternativeso Sell ready to eat products through sweet shops like bikanerwala

o Showrooms for High-End products

o E-Chaupal


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Others

Ordero Distributors- weeklyo Retailers- twice a week o Paanwalas- dailyo Online order is placed by distributoro The periodical order from wholeseller, retailer, paanwalas is collected

by staff of distributor. Payment

o Mostly on cash basis, sometimes post dated chequeso Very rarely credit is allowed on cigarettes

Transportationo Uses delivery van, rickshaw, cycles, autos

Conflictso No conflictso Some tiffs raise between distributor and retailer due to supply from

distributor Problems


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Documents

Distribution Network of ITC