FMCG Industry

Target Market FMCG Industry

ITC

Submitted By:-Manish Goel

Understand the Distribution Network Model• Study the Company Product Portfolio.• Get to Know the product Avlaibility in the market

“Weight, Size, Price and Variant”.• Frequent sale product.• Product Packaging (Single , Multiple ,Consolidate ).• Understand the distribution of Goods from Supplier

to the consumer end.• How many Channels Involved.• Which Transportation mode used for inside or outside

the city.• Which Transportation vehicle used for of Goods

supply.• Understand the Transportation route pattern to cover

city.

Cont….• Understand the Vehicle Nature of Contract (Hired / Owned ).• Understand the Vehicle terms of Contract ( Daily / Weekly /

Monthly / Yearly )• Find out the Vehicle Operating Cost Structure.• Vehicle Load Carrying Capacity product wise.• Vehicle Inspection ( Branding, Safety Measure etc)• Stacking Pattern of Goods in the Vehicle.• Delivery Timing. • Sales per day / month.• Products Schemes Involved.• Margin in product sale for company to end point.• Expense Involved in distributing the product ( Warehouse Rent,

Electricity , Water bill ,Workforce Salary, generator fuel, maintenance Cost etc)

• Calculate the Net Saving of Distributor , Dealer , Retailer. Transportation Vehicle Owner.

• Market Share Company.

•ITC

FMCG

FOOD

Kitchens of India

Ashirvaad

Sunfeast

Minto

Candyman

Bingo

Non Food

Personal Care

Match Box

Agarbatti

Cigarette

ITC Cigarette Product packaging Pattern & Payload Capacity

CIGARETTE

Category 1 Cigarette. Pack

1 Cigarette. Box 1 Carton

Insignia 10 50 30 Box.

India Kings Not Avl. Not Avl. Not Avl.

Classic 10 50 30 Box.

Gold Flake 10 20 60 Box.

Silk Cut 10 20 60 Box.

Navy Cut 10 20 60 Box.

Scissors 10 20 60 Box

Capstan 10 30 60 Box

Berkeley Not Avl. Not Avl. Not Avl.

Bristol 10 50 30 Box

Flake 10 50 30 Box

ITC FOOD Product packaging Pattern & Payload Capacity

ASHIRVAAD AATA

Weight 1 Complete Packet (30 kg)

Load Carrying Capacity (No of Carton)

Piaggio ape 3-w TATA ACEMax. Average Max. Average

1 kg 30 Pack 30 25 60 502 kg 15 pack 30 25 60 50

5 kg 6 Pack 30 25 60 50

10 kg 3 Pack 30 25 60 50

Cont….

SUNFEAST

CategoryWeight of Each

Pack. Price(Rs.) 1 CartonMari Light 360 gm 20 15

Orange Mari 158 gm 12 48Nice Light 71.4 gm 5 84

Nice Sugar Sprinkle 150 gm 15 48Snacks 85.7 gm 10 90Special 70.6 gm 7 72

Special Choclate 65 gm 5 120Special Orange 65 gm 5 120Special Elachi 65 gm 5 120Special cream 124 gm 12 60Gluco Biscuit 78 gm 4 120Dark Fantasy 150 gm 30 36

Gold Black Cookies 75 gm 15 30Golden Bakery 75 gm 15 30

SNACK FOOD

1 CartonLoad Carrying (No of Carton )

15 Rs Pack 18 Rs.Pack

Tomato Cheese Cheese Sour

Cream Masala Chicken Delight Pizza Tangi

Tomato PastaPiaggio ape3-w TATA ACE

Max Average Max Average108 108 108 108 108 108 108 108 30 20 60 45

BINGO

Category

Load Capacity (No of Carton) Piaggio ape 3-w TATA ACE

5 Rs. Pack 10 Rs. Pack

20 Rs. Pack Max. Average Max. Average

Chips 192 96 32 30 20 50 40

Namkeen 208 80 48 30 20 50 40

Load Carrying (No of Carton )

Piaggio ape 3-w TATA ACEMax. Average Max. Average

60 50 95 90

CANDYMAN

Name of Candy Weight Jar Carton

Contain

Load Carrying Capacity (No of Carton)

Piaggio ape 3-W TATA ACE

Max. Average Max. Average

Double Echoles 787 gm 12 Jar 40 30 80 70Natkhat

rang 680 gm 8 Jar 40 30 80 70Toffichoco 740 gm 12 Jar 40 30 80 70Cofitino 740 gm 12 Jar 40 30 80 70Futifun 680 gm 18Jar 40 30 80 70

Butter Licks 3.8 Kg 4 Jar 40 30 80 70CM Liccks 560 gm 12 Jar 40 30 80 70

ITC NON FOOD Product packaging Pattern & Payload Capacity

MATCH BOX1 Carton Load Carrying ( No of Carton )

AIM Sunflower Horsehead Homelight Ship TrainPiaggio ape3-w TATA ACEMax. Average Max. Average

600 matches

600 matches

600 matches

600 matches

600 matches

600 matches 220 200 400 380

Personal Care

VIVEL DI WILLSWeight SOAP Category 1 Carton

45 gm Sandle Sparkle Young Glow Setin Soft 196 Pcs



75 gm Ayurveda Eseence Soft & Fresh 120 Pcs.

150 gm Ayurveda Eseence Soft & Fresh 72 Pcs.

Weight Shampoo Category 1 Carton

5 ml Soft & fresh Shine & Glow Volume & Bounce 480 Pcs.



FIAMA DI WILLSWeight Shampoo Category 1 Carton

5 ml Silky Strong Shine & Style Volume Boost

Eveready Mild

Agna Balance 480 Pcs.


Eveready Mild

Agna Balance 36 Pcs


Eveready Mild

Agna Balance 24 Pcs.

Weight Shower Gel Category 1 Carton

100 ml Mild Due Clear Spring

Exotic Dream 12 Pcs.

200 ml Mild Due Clear Spring

Exotic Dream 24 Pcs.

Weight SOAP Category 1 Carton

70 gm Skin & Shine

Fragrence Flower 72 Pcs

100 gm Skin & Shine


300 gm Skin & Shine


SUPERIAWeight SOAP Category 1 Carton

72 gm Soft & Sandle Natural Glow Haldi Glow 144 Pcs.



Weight SHAMPOO Category 1 Carton

4 ml Shine & Black Vibrant Cream 2560 Pcs.

7 ml Maxi Protect 2120 Pcs.

8 ml Shine & Black Vibrant Cream 1920 Pcs.

12 ml Shine & Black

Vibrant Cream Maxi Protect 960 Pcs.

Cont….

VENDORS MANFACTURING

UNIT

ITC MANFACTURINGUNIT

HUB

C&F

DISTRIBUTOR

SECONDARY WHOLESELLERSRETAILERS SUPERMARKETSHOTEL

RESTAURANTS

CustomerSMALL

RETAILERS

Customer

Customer

1) SOAPS2) SHAMPOO3) CHIPS4) CIGARETTE

ManufactureManufacture

1) KITCHENS OF INDIA2) AASHIRVAAD3) SUNFEAST4) MINTO5) CANDYMAN6) SNACK FOOD7) MATCH BOX8) AGARBATTI9) STATIONARY

ITC LOGISTIC NETWORK DIAGRAM

Bombay Stores (Kaleva

di)

BIWANDI HUB

NAGPURHUB

PUNE(C&F)

NASIK DHULIA SATARA PANVEL PUNE NANDUR BAR AHMEDNAGAR

PCC (Yerwad

a)

Chamadia

(Kharadi)

Mahadev

(Market Yard)

Yash (Hadaps

ar)Vidhavi

r (Rasta Peth)

Chamadia (Singhad)

DIFFERENT PLACES OF INDIAMANFACTURING UNIT

Different District

ITC Distributor across Pune

FLOW OF

GOODS

ITC Product Distribution Model, Pune

Nagpur Hub is Chosen when Unavailability of Products at Biwandi.

Vehicle Used TATA 909EX, Eicher, FLT

EICHER, TATA 909 EX

ITC PORTFOLIOName of product Manufacturing unit

Bingo Haridwar

Ranjangaon,PunePasta Nehru road,kolkota

Biscuits

Food creation pvt ltd, survey no.34,kachara kanahalli

naduvathi noskote,taluka-Bangalore.

Candyman

Prayagh hut products,survey no.279 & 280,Hyderabadleamark health care pvt ltd,matoda,Ahmedabad

Royes india ltd,plot no.127,Secundrabad

laxshmi food,karipati ,Salem.

MintoLeamark health care pvt ltd,matoda,Ahmedabad

Aashirwad

ITC quality care,P.O box no.36,gpo,New Delhi

kolkotaMumbaiChennai

FirozabadHyderabad

JaipurUttarPradesh

vivelSector 11,IIE ranipur, Uttarkhand,Haridwar

ShampooAura personal care,khasora

no,1220,plot no. a3/3, UPSIDC,Nanital

MatchBoxWIMCO Limted,Alambazar

KolkotaShivkashi Dist.

AgarbattiAnanath agarbati co,rehanari

peth , Bangalore.

Cigarette

kolkotaMunger

SaharnpurBangoloreHyderabad

ITC MANFACTURING

POINT FOR DIIFERENT PRODUCT

PORTFOLIO

Key Observation about Primary Distribution

• ITC has different manufacturing plant for different products.

• Some Products are manufacture by Vendors and some by ITC.

• Each Factory deliver products to different Region e.g. Rajan Gaon is a manufacturing plant of BINGO it caters half of India and other plant is in Haridwar that caters other half.

• C&F(Carry & Forward) Agent Warehouse caters near by surrounding areas.

• Pattern of Goods Supply from C&F Warehouse to Distributor is Daily to Once a week.

• Distributor assign on the basis of Total Volume Covered in a particular city.

• Area assign on the basis of Total sale generated divided by total no of distributor and the distributor capacity of distribution. Max. Area Covered is 30 Km.

DistributorCigarette

PAN SHOPS

Wholeseller

PAN SHOPS

Customer

Customer Customer

Other Shops

FOOD 1

Non FOOD 1

Minto,Candyman,Bingo

Matches

Cigarette Distribution Model (Distributor-

Consumer)

MungerKolkota Saharanpur Banglore Hyderabad

Biwandi(HUB)

Ape 3-W, TATA Ace,GC1000,Alpha Champion, Mahindra Max

Distributor

FOOD

Retail Shops

Wholeseller

Retailer

Customer

CustomerCustomer

Super Market

FOOD

Kitchans of India

Ashirvaad

Sunfeast

Minto

Candyman

Bingo

Hotel &

Restaurants

Customer

Street Retailers

Customer

FOOD Distribution Model (Distributor-Consumer)

AhmadabadKolkata Banglore Hyderabad Haridwar Ranjan Gaon

BIWANDI(HUB)

Nagpur

DistributorNON FOOD

Retail Shops

Wholeseller

Retailer

Customer

Customer Customer

Super Market

Non Food

Personal Care

Match Box

Agarbatti

NON FOOD Distribution Model (Distributor-

Consumer)

Kolkata Banglore Haridwar Nanital

BIWANDI(HUB)

Stacking Pattern of PIAGGIO Ape 3 W

Stacking Pattern of TATA ACE

For Cigarette Distribution,Distributor use different ways to distribute cigarette

1. Salesman Covers(2-W) ---Pan Shops2. Distributor Vehicle (3-W) Covers

---Wholeseller/Retailer3. Wholeseller or Pan Shops directly Purchase from

Distributor end.

Distributor

Sales man(10-15)

750 Pan Shops

Area Covered 24 Km

Covers

Margin Earned

Disrributor Wholeseller Panshops

2% .8-1% 8-10 %

Whole Seller

Retailer Pan Shops

Pick up Timing9:00 to 11:00 AM

2 Teams3 Teams

Per day Sale

Disrributor Wholeseller Panshops

6,50,000 50.000 5000

3

2

1

1

2

3

Monday( Pashan)

Tuesday (Peth)

Wednesday (Visharantvardi)

Thursday(Pashan)

Friday(Peth)

Saturday(VishranV

adi)

ROUTE PLAN for cigarette

ROUTE PLAN FOR FOOD AND NON FOOD PRODUCTS:-Distributor have 5 to 7 Vehicle for Food and Non Food Product .

Each vehicle have 6 route for the whole week.

6 vehicle Cover 36 Routes in a Week.

Each route cover approximate 20 Km per day.

Same route follow after one week.

Fuel cost in case of Piaggio Ape 3-W is Rs.100 and TATA ACE it cost 180 to 20o Rs.

The Fuel cost is high because of frequent stop & start of vehicle.

Supply of food and Non food products Distributor have their own vehicle and Pays Driver

Salary range from 3500 to 6000.

In Case Bingo Distributor have 5 Salesman that Sale Bingo in the area of 20 to 25 Km per

day.

Salesman have their own vehicle 3-W and charge 13000 per month.

It includes Fuel, Maintenance and Salary.

In addition to that after achieving the target they get Rs.3000 incentive.

Target is Rs.85000 Bingo in a month.

For Food Products Distribution:- Transportation mode used for distribution of Food

Products is via 3-Wheeler or 4-Wheeler.• First , Salesman take the order from the Existing and

New Customer.• Second, Plan the route according to the delivery

pattern .• Thirdly, load the vehicle as per weight carrying

capacity of vehicle.• Lastly, Distribute the products. • Distribution of products to the Whole seller , Big

Retailer, Street shops, Supermarket, Hotels, Restaurants .

• Sales of Ready to Eat Foods is more in Stack Areas + Modern trades.

• In case of Bingo Dist. Each Salesman get target of Rs.2833 ( Bingo Product Rs.5, Rs.10, Rs.15) per day or Rs.85000.After achieving the target Salesman get Rs. 3000 incentive. Each Salesman cover 7 Route so 7 Salesman covers 49 Routes per day.

Company Warehouse

Distributor Warehouse

Salesman

Whole seller , Retailers, Super market , Hotel &

Restaurants

Purchase Order

Delivered the order

Margin Earned

Disrributor Wholeseller Retailer

4% 3% 10 %

Per day Sale

Distributor Wholeseller Retailer

1,50,000 7.000 2000

Vehicle Safety Measure:-Pack Body 2 Door System

Retailer Margin in Bingo:

Rs.5 Pack-Rs.4.46Rs.10 Pack-Rs.8.93

Rs.20 Pack-Rs.17.86

Load the order

N/W Diagram for FOOD Category

Assigned the Order

Monday2 Team

(1 Team = 4 Salesman)

Tuesday2 Team


Wednesday2 Team


Thursday2 Team


Friday2 Team


Saturday2 Team


Sunday2 Team


Each Salesman covers Delivery

of 15 Shops per day

ROUTE PLAN for FOOD PRODUCTS

For Non Food Products Distribution:- Transportation mode used for distribution

of Food Products is via 3-Wheeler or 4-Wheeler.

• First , Salesman take the order from the Existing and New Customer.

• Second, Plan the route according to the delivery pattern .

• Thirdly, load the vehicle as per weight carrying capacity of vehicle.

• Lastly, Distribute the products. • Distribution of products to the Whole seller ,

Big Retailer, Street shops, Supermarket . Match box is also deliver to the Pan Shops with cigarette distribution.

Company Warehouse

Distributor Warehouse

Salesman

Whole seller , Retailers, Super market , Hotel &

Restaurants

Purchase Order

Delivered the order

Margin Earned

Disrributor Wholeseller Retailer

12% 10% 10 %

Per day Sale

Distributor Wholeseller Retailer

12000 1000 400

Vehicle Safety Measure:-Pack Body 2 Door System

Load the order

N/W Diagram for NON FOOD Category

Assigned the Order

Monday2 Team


Tuesday2 Team


Wednesday2 Team


Thursday2 Team


Friday2 Team


Saturday2 Team


Sunday2 Team


Each Salesman covers Delivery

of 15 Shops per day

ROUTE PLAN for FOOD PRODUCTS

Average Sale of ITC Distributor, Pune Per Month.

Category Food & Non Food Cigarette Stick

Distributor Location SALE (Rs.) Sold

CHAMADIA KHARADI 8,000,000 20,000,000

JHANHVIR RASTA PETH 7,500,000 15,000,000

PCC YAERWADA 6,500,000 10,000,000

BOMBAY STORE KALEVADI 6,000,000 10,000,000

YASH HADAPSAR 3,000,000 8,000,000

CHAMADIA SINGHAD ROAD 2,500,000 5,000,000

MAHADEV MARKET YARD 2,500,000 5,000,000

Scheme in case of Bingo:-

If Retailer Buy 60 Packets then he will get 4 Packets free

Purchase order from Distributor to Supplier depends upon the MIS

system. Threshold level is 60 %

(Stock Inv. > Thres. Lev.)Liquidator is 1-2 days.

FMCG industry is Volume base

not Weight Base

Cigarette is volume base which has very high value

Different Product have different

distribution Channel.

KEY FINDINGS

Distributor are not using APE 3-W

because of less Space capacity

Conclusion

• Most of the Distributor using Ape 3-W because of Good Mileage and more carrying capacity in Ape Xtra LD.

• In FMCG industry, Supply and demand is directly proportional to each other.

• FMCG industry is using FIFO system.

THANKS

Documents

FMCG Industry