ITC report on retail outlets

8/11/2019 ITC report on retail outlets

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ACKNOWLEDGEMENT

The summer internship experience at ITC Limited has been extremely fruitful and the

credit for the same goes to a number of individuals who have been instrumental in

making my project a success.

Firstly I would like to thank my project guides Mr. Muffadal Hussain, and Mr.Santanu

Bhattacharjee for taking out time from their busy schedules to provide me with

valuable inputs throughout the project. Next, I want to extend my heartfelt gratitude to

Mr. Deepak G.N, Assistant HR manager, for proving me the opportunity to work with

ITC Ltd

I would also like to extend my gratitude to, Mr. Gopal Rana, Mr. Ananda,

Mr.Jagannat and all others area supervisors who went out of their way in illustrating

various operations, arranging visits and enhancing my learning. They have all made

my stay here so much more meaningful.

I feel privileged to have come in contact and worked alongside such wonderful

people. I would attribute a fair share in the completion of this project to their constant

motivation and patient hearing.


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TABLE OF CONTENT

1) EXECUTIVE SUMARY 2) ABOUT ITC LTD

3) PROJECT BACKGROUN

I) PROJECT OBJECTIVES

II) PROJECT SCOPE

I I I ) METHODOLOGYFOLLOWED

4) METHODOLOGY

I) SECONDARY RESEARCH

A) OBSERVATIONS

II) MARKETING RESEACRCH

A) OUTLET QUESTIONNAIRE FORM

B) FEEDBACK FROM RESPONSES

C) FINDING AND ANALYSIS

5) INDUSTRY ANALYSIS

6) PERSONAL CARE PRODUCT

7) PRODUCT PRICES AND SCHEMES

8) LOYALTY PROGRAMS

9) INCENTIVES TO DISTRIBUTOR SALES PERSONNEL

10) WORK DONE

I) IMPLEMENTATION OF RA OUTLETS

II) IMPLEMENTATION OF CLO PROGRAMS

A) ACKNOWLEDGMENT FORM B) OUTLET COVERED

C) OBSERVATION AT DISTRIBUTOR POINT

D) WORK AT RETAIL OUTLETS

E) SCHEMES AND PROGRAMS RUN BY COMPETITORS

11) LIMITATIONS

12) CONCLUSION


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EXECUTIVE SUMMARY

Implementation of RA and CLO Program

ITC LTD

Harsh Sultania

26/5/2014

My projectrevolved around implementation of loyalty project run by ITC Ltd.

At first I was into implementing of RA (Retail Architect). I worked in 28 outlets indifferent areas of Kolkata. My work in those outlets was to negotiate for a hotspot and

see that the merchandiser takes the proper measurement and gives all the things

negotiated for. I also did a survey on the factor affecting the purchase of deodorant

and competitor analysis.

After the work on RA outlets was done, I was given a list of outlets under 3

distribution point for implementation of CLO (Category Leadership Outlets) outlets.

In these outlets an acknowledgment form had to be singed and submitted to Area

Executive for implementation of the display. In those outlets I also did competitor

analysis as to what schemes, incentives and loyalty program competitors arecurrently running.

During my work in those outlets I also learned about sales and distribution process.


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About ITC LTD

ITC is one of India's foremost private sector companies with a market capitalization

of nearly US $ 18 billion and a turnover of over US $ 5.1 Billion. ITC is rated amongthe World's Best Big Companies, Asia's 'Fab 50' and the World's Most ReputableCompanies by Forbes magazine, among India's Most Respected Companies byBusiness World and among India's Most Valuable Companies by Business Today.ITC also ranks among India's top 10 `Most Valuable (Company) Brands', in a studyconducted by Brand Finance and published by the Economic Times.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & SpecialtyPapers, Packaging, Agri-Business, Packaged Foods & Confectionery, InformationTechnology, Branded Apparel, Personal Care, Stationery, Safety Matches and otherFMCG products. While ITC is an outstanding market leader in its traditionalbusinesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it israpidly gaining market share even in its nascent businesses of Packaged Foods &Confectionery, Branded Apparel, Personal Care and Stationery.

ITC employs over 24,000 people at more than 60 locations across India. TheCompany continuously endeavors to enhance its wealth generating capabilities in aglobalizing environment to consistently reward more than 3, 83,000 shareholders,fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioningstatement: "Enduring Value For the nation For the Shareholder."

ITC Ltd is one of India's premier private sector companies with diversified presence

in businesses such as Cigarettes, Hotels, Paperboards & Specialty Papers,Packaging, Agri-Business, Packaged Foods & Confectionery, InformationTechnology, Branded Apparel, Greeting Cards, Safety Matches and other FMCGproducts. Presently, ITC has a market capitalization of nearly US $ 15 billion and aturnover of over US $ 4.75 billion. It employs over 21,000 people at more than 60locations across India. ITC has been rated among the World's Best Big Companies,Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine,among India's Most Respected Companies by Business World and among India'sMost Valuable Companies by Business Today.

ITC was incorporated on August 24, 1910 under the name of 'Imperial TobaccoCompany of India Limited'. ITC had a humble beginning and in the initial days it used

to operate from a leased office on Radha Bazar Lane, Kolkata. On its 16th birthdayon August 24, 1926, ITC purchased the plot of land situated at 37, Chowringhee,(now renamed J.L. Nehru Road) Kolkata. Two years later companies headquarterbuilding; 'Virginia House' came on that plot. Progressively the ownership of thecompany Indianised and the name of the Company were changed to I.T.C. Limited in1974. In recognition of the Company's multi-business portfolio encompassing a widerange of businesses, the full stops in the Company's name were removed effectiveSeptember 18, 2001 and the Company was rechristened as 'ITC Limited'.

This project aims to study about ITC Bingo snacks and its distribution strategies. Theproject provides information about the various procedures followed by ITC withrespect to distribution chain function, and client management.


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With the fast growing retail industry in India, competition has increased between themajor market players. Companies are continually trying to engage and constructinnovate ideas to service this market.

The project includes a mix of observation, interview and questionnaires with scales.Initially a period of 4 weeks was dedicated to fieldwork under the guidance of areaexecutives of ITC limited. An effort was made to understand the various servicingprocedure, the typical areas/locality and classes of customers.

Regular interaction was done with retailers and distributors about the response andflow of product respectively. Through this it makes easy to understand the process ofdistribution.

A week was dedicated to collect information of Frito-Lays regarding their marketingstrategy, Distribution Network and Other Useful Information from the companyofficials. This project also includes my observation at retail outlets.

ITC is involved in following businesses:

Cigarettes: ITC is the market leader in cigarettes in India and has a wide range ofpopular brands such as Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut,Scissors, Capstan, Berkeley, Bristol and Flake in its portfolio.

Packaging: ITC's Packaging & Printing Business is the country's largest convertor ofpaperboard into packaging. It was set up in 1925 as a strategic backward integrationfor ITC's Cigarettes business. It offers a variety of value-added packaging solutionsfor the food & beverage, personal products, cigarette, liquor, cellular phone and ITpackaging industries.

Hotels: ITC entered the hotels business in 1975 with the acquisition of a hotel inChennai, which was rechristened Hotel Chola. Today ITC-Welcomgroup with over 70hotels is one of the foremost hotel chains in India.

Paperboards: In 1979, ITC entered the Paperboards business by promoting ITCBhadrachalam Paperboards. ITC's Paperboards business has a manufacturingcapacity of over 360,000 tonnes per year and is a market leader in India across allcarton-consuming segments.

Greeting, Gifting & Stationery: ITC's stationery brands "Paper Kraft" & "Classmate"are widely distributed brands across India. The Paperkraft designer stationery rangeconsists of notepads & multi subject notebooks in hard, soft covers & multiple binding

formats including spirals, wires etc. ITC's Greeting & Gifting products includeExpressions range of greeting cards and gifting products.

Safety Matches: ITC's brands of safety matches include iKno, Mangaldeep, VaxLit,Delite and Aim. The Aim is the largest selling brand of Safety Matches in India. ITCalso exports premium brands to markets such as Europe, Africa and the USA.

Aggarbattis: ITC has launched Mangaldeep brand of Aggarbattis with a wide rangeof fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini,Anushri, Ananth and Mogra. Mangaldeep is also being exported to USA, UAE,Bahrain, Nepal, Singapore, Malaysia, Oman and South Africa.

Lifestyle Retailing: ITC entered the Lifestyle Retailing business with the Wills Sportrange of international quality relaxed wear for men and women in 2000. The Wills


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Lifestyle chain of exclusive stores later expanded its range to include Wills Classicformal wear (2002) and Wills Club life evening wear (2003). In 2002, ITC entered intothe popular segment with its men's wear brand, John Players. In 2005, ITCintroduced Essenza Di Wills, an exclusive line of prestige fragrance products.

Food: ITC made its entry into the branded & packaged Foods business in August2001 with the launch of the "Kitchens of India" brand. In 2002 it expanded intoConfectionery, Staples and Snack Foods segments. ITC's brand in Food categoryincludes: Kitchens of India, Aashirvaad, Sunfeast, Mint-O, Candyman, and Bingo!

Agri Exports: ITC's International Business Division (IBD) is the country's secondlargest exporter of agri-products. ITC exports Feed Ingredients (Soyameal), Foodgrains (Rice, Wheat, and Pulses), Coffee & Spices, Edible Nuts and Marine Product

E-choupal: The e-Choupal model of ITC has been very effective in tackling thechallenges posed by the unique features of Indian agriculture, characterized byfragmented farms, weak infrastructure and the involvement of numerous

intermediaries.

ITC Limited - SWOT Analysis

Strength ------- Brand & ManagementWeakness ------- Unrelated diversification.Opportunity ------- Rural market and e-choupal.Threats ------- 1) Increasing tax in cigarettes

2) Health hazard


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PROJECT BACKGROUND

Project Objective:

To increase ITCs presence in the small retail outlets

To understand competitors offering to these outlets

Project Scope:

To work on visibility of product

To understand how much display and incentives help in sales

To understand the problem faced by the retailers

To work on sales and understand the distribution network

Methodology Followed:

Secondary Research Market visits Market Research Competitors analysis


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METHODOLOGY

1) Secondary Research

The first stage of project involved secondary research for better understanding of

deodorant industry. Through secondary research got an idea of the key competitors,understanding the market share and their advertisements and promotion and also

pricing

Observations

Prices of different Deodorant in India

Fogg - Rs.180

Park AvenueRs.185

AxeRs.165

Wild StoneRs.160

Deodorant Market in India

India is a Sub Tropical Country and Deodorant is a Crucial Grooming Product

here

Market has grown from 103 Cr in 2003 to 1520 Cr in 2013

With a current growth rate of 39% in next 9 years, 85% urban and 15% rural

citizen would be using deodorant

Changing socio economic fabric and women empowerment are major factors

for Deodorant revolution

Deodorant predominantly a male grooming product, but expansion into the

women segment underway


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PESTLE Analysis of Deodorant Industry

Political: Controversial advertisements of deodorant regularly subjected tocriticism by politicians

Economic : Poor economy leads to unemployment which further leads to fall

in consumption of deodorants

Social : With change in lifestyle and increase in personal disposable

income, people tends to focus tend to focus more on hygiene and therefore

increase deodorant consumption

Environment:Deodorant contains Aluminium which can lead to cancer and

Alzheimers disease.

Legal :Misleading ads by deodorant companies attract court cases

Market Share before launch of Engage

Market Share after launch of Engage

Fogg -13%

Axe8%

Park Avenue - 8%

Wild Stone7%

Engage5%

Set Wet4.5 %

Spinz4%Nivea4%


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Competitor Analysis

2) Marketing research through primary data collection

The next step included collection of data from the retailers regarding the buying

behaviour of deodorants and also about satisfaction and dissatisfaction of retailers.

A questionnaire was prepared and data from around 150 outlets was collected.


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Outlet Questionnaire Form

Outlet name: ...................................................

1) How many and of which brands deo do you sale?

__________________________________________________________________2) Which deo most of the customers demand, in order of their preferences?

__________________________________________________________________

3) What does a consumer look for?

a)Price b) smell c) size d) stay e)others

4) Does price play any significant role in Engage deo purchase?

Yes: ( ) No: ( ) Sometime: ( )

5) Are other competitors products offering any scheme?

Yes: ( ) No: ( )

6) Name of the brands and their respective offers?

___________________________________________________________

___________________________________________________________

___________________________________________________________

7) Do customers carry any pre-conceived idea about Engage deo, or they make their

decision at the shop?

Pre-conceived idea: ( ) Decision at the shop: ( )

8) Which category of deo is gaining more demand?

Male: ( ) Female: ( ) Both: ( )

9) Does the scheme offered by the company create impact on the sales?

Very much : ( ) Significant : ( ) Not much : ( ) Not at all : ( )

10)Are the customers happy with the fragrance?

Yes: ( ) No: ( ) Cant say: ( )

11)Do the customers also buy the product after watching TV ads or having friends

influence?

TV ads: ( ) Friends influence: ( ) Cant say: ( )

12)Which age-group of customers mostly buy the deo?

9-15: ( ) 16-25: ( ) 26-35: ( ) 35 above: ( )

13)How much is the display helpful in making sale?

Very much : ( ) Good : ( ) Average : ( ) Poor : ( )

14)What is the overall response of the customers towards Engage deo? Excellent : ( ) Good : ( ) Average : ( ) Poor : ( )


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The questionnaire was filled while working on the implementation of for RA and CLO

outlets. The feedbacks from the responses are represented graphically:

92

58

Role of price

Significant

Not Significant

17

56

71

6

Important Factors

Price

stay

Fragnance

size


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37

51

62

Category

Male

Female

Both

60

90

Pre-concieved idea

Yes

NO


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:

8

77

54

11

Age Group

13-17

18-25

26-35

35+

21

94

32

3

Role of Display

very much

good

average

poor


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Schemes offered by the company: Most of the Dealers are happy with the schemes

offered by the company. The margin on Engage is better than the other deodorants.

Customer Satisfaction: Most of the Customers are happy with the fragrances and

they are repurchasing the Deo.

TV ads: TV ads act as a very important driver for increasing sale of deodorant

35

95

20

Response

very good

good

average

poor


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Findings from the research:

Price is not a very important factor for purchase of deodorants as compared

to smell and stay.

The advertisement of engage fails to connect with the Indian population.

There is a lack of catchy tagline.

Fogg is the maximum demand for its ad and its tagline no gas, only liquid

Display is helpful in increase in sale.

Retailers needs to be happy with company as sale also depends on dealer as

60% customers decides in the shop itself.

Dealers are not happy for the delayed payment for the display.

Schemes Offered by other Companies

AXE:

Buy 12 and get one free

Buy 24 and get 2 free

Buy 48 and get Rs 20 off in all the 48 pieces

Display amount Rs. 350

Wild Stone:



Buy 48 and get Rs. 800 less on bill

Display amount Rs.500

Park Avenue:


Buy 24 and get 2

Buy 24 get Rs 350 discount

Buy 48 get Rs. 500 discount

XLR8:

Buy 500 pieces and get a music system free

Buy worth Rs. 100000 and get a laptop free with a INOX ticket with each

deodorant for customer and in each ticket dealers gets Rs. 30

Niveapaying display amount of Rs. 800


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INDUSTRY ANALYSIS

Fast Moving Consumer Goods (FMCG) as products that have a quick shelf turnover,

at relatively low cost and dont require a lot of thought, time and financial investment

to purchase. Fast Moving Consumer Goods is a classification that refers to a wide

range of frequently purchased consumer products

Indian FMCG SectorThe Indian FMCG sector is the fourth largest in the economy and has a market sizeof US$13.1 billion. Well-established distribution networks, as well as intensecompetition between the organized and unorganized segments are thecharacteristics of this sector. FMCG in India has a strong and competitive MNCpresence across the entire value chain. It has been predicted that the FMCG marketwill reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle classand the rural segments of the Indian population are the most promising market forFMCG, and give brand makers the opportunity to convert them to branded products.Most of the product categories like jams, toothpaste, skin care, shampoos, etc, inIndia, have low per capita consumption as well as low penetration level, but thepotential for growth is huge.

The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid

urbanization, increased literacy levels, and rising per capita income.The big firms are growing bigger and small-time companies are catching up as well.According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned

HouseholdCare

Personal Care Food &Beverages

Fabric wash(laundry soaps and

syntheticdetergents)Household cleaners

(dish/utensilcleaners, floorcleaners, toiletcleaners, airfresheners,insecticides andmosquitorepellents, metal

polish and furniturepolish)

Oral care Hair care

Skin care Personal wash (soaps)Cosmetics ToiletriesPerfumes DeodorantsFeminine hygiene

Health beveragesSoft drinks

Staples/cerealsBakery products(biscuits, bread,cakes)

Snack foodChocolatesIce creamTea & CoffeeProcessed fruits &

vegetablesDairy products

Bottled waterBranded flourBranded riceBranded sugarJuices


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by MNCs, and the balance by Indian companies. Fifteen companies own these 62brands, and 27 of these are owned by Hindustan Lever. Pepsi is at number threefollowed by Thums Up. Britannia takes the fifth place, followed by Colgate (6), Nirma(7), Coca-Cola (8) and Parle (9). These are figures the soft drink and cigarettecompanies have always shied away from revealing. Personal care, cigarettes, andsoft drinks are the three biggest categories in FMCG. Between them, they accountfor 35 of the top 100 brands.

Exhibit ITHE TOP 10 COMPANIES IN FMCG SECTOR

S. NO. Companies

1. Hindustan Unilever Ltd.

2. ITC (Indian Tobacco Company)

3. Nestl India

4. GCMMF (AMUL)5. Dabur India

6. Asian Paints (India)

7. Cadbury India

8. Britannia Industries

9. Procter & Gamble

10. Marico Industries

The companies mentioned in Exhibit I, are the leaders in their respective sectors.The personal care category has the largest number of brands, i.e., 21, inclusive ofLux, Lifebuoy, Fair and Lovely, Vicks, and Ponds. There are 11 HLL brands in the21, aggregating Rs. 3,799 crore or 54% of the personal care category. Cigarettesaccount for 17% of the top 100 FMCG sales, and just below the personal carecategory. ITC alone accounts for 60% volume market share and 70% by value of allfilter cigarettes in India.

The foods category in FMCG is gaining popularity with a swing of launches by HLL,ITC, Godrej, and others. This category has 18 major brands, aggregating Rs. 4,637crore. Nestle and Amul slug it out in the powders segment. The food category hasalso seen innovations like softies in ice creams, chapattis by HLL, ready to eat riceby HLL and pizzas by both GCMMF and Godrej Pillsbury. This category seems to

have faster development than the stagnating personal care category. Amul, India'slargest foods company has a good presence in the food category with its ice-creams,curd, milk, butter, cheese, and so on. Britannia also ranks in the top 100 FMCGbrands, dominates the biscuits category and has launched a series of products atvarious prices.In the household care category (like mosquito repellents), Godrej and Reckitt are twoplayers. Goodknight from Godrej is worth above Rs 217 crore, followed by Reckitt'sMortein at Rs 149 crore.

OutlookThere is a huge growth potential for all the FMCG companies as the per capitaconsumption of almost all products in the country is amongst the lowest in the world.

Again the demand or prospect could be increased further if these companies canchange the consumer's mindset and offer new generation products. Earlier, Indian


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consumers were using non-branded apparel, but today, clothes of different brandsare available and the same consumers are willing to pay more for branded qualityclothes. It's the quality, promotion and innovation of products, which can drive manysectors.


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Personal care product: -

ITC launched an exclusive line of prestige fine fragrances under the Essenza DiWillsbrand in mid-2005. The Essenza Di Willsrange of perfumes reinforces ITCstradition of bringing world-class products to Indian consumers to enrich the quality of

their lives.

Essenza Di Wills embodies a fine balance between the classic and thecontemporary. The brand personifies exclusivity, innate style, sophistication andmagnetism.The Essenza Di Wills line has been developed with the assistance of Frenchperfumery experts to give it the mystique and premium luxury quality that go with thebest of international brands.

The latest addition to the Essenza Di Wills portfoliois the Aqua range for men (Aqua Home) that offersa distinctive and fresh aquatic fragrance. The Aqua

range includes an After-Shave Lotion, a Deodorant,a Hair & Body Shampoo and a Bathing Bar.

In September 2007, ITC launched Fiama Di Wills,a premium range of personal care products comprisingshampoos, conditioner, shower gels and soap.This premium range is a uniqueblend of nature and science that promises gentle effective care. It is an outcome of4 years of extensive research and development by experts at ITC R&D Centre. Thepackaging for all Fiama Di Wills products has been developed by a leadingEuropean design firm and the fragrances have been developed by an internationalfragrance house in France.

Fiama Di Wills Shampoos developed in collaboration with CosmetechLabs Inc., USA, offers a range of four variants. Each variant is designed todeliver a specific hair benefit to the consumer

The Fiama Di Wills range of soaps has been launched under the sub - brand SkinSense. The first variant to be introduced in this range isSoft Green.This is a gentle caring soap, which helps enhance retention of skinproteins making skin look beautiful and youthful. Following thesuccessful launch of Fiama Di Wills Shampoos and Shower Gels, ITC

has now introduced Fiama Di Wills Soaps, which offer the benefit ofgentle and effective care by combining elements of nature and science.


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Product prices and various Schemes

Engage Deodorant

Purchase SchemeNet

Rate MRP

1-3 Units 5% on Bill 125.57 160

4-7 Units 8% on Bill 121.6 160

8 Units 8+1 117.49 160

21 Units 21+3 115.65 160

36 Units 36+6 113.26 160

Vivel

Product Rate Scheme Net rate MRP

Rs.10 Vivel All Variants 8.89

2% discount on purchase of

48 8.7122 10

Vivel FV Carton 125 Gms 22.22 NA 22.22 24

Vivel 100 g 20.37 NA 20.37 23

Vivel 100g*4 74.07 NA 74.07 85

Vivel 100g*3 58.33 NA 58.33 63

Vivel 75 g 18.52 NA 18.52 20

Vivel 75g*4 64.81 NA 64.81 70

Fiama Di Wills

Product Rate Scheme Net Rate MRP

FDW 75g 29.63 NA 29.63 32

FDW 125g 50 NA 50 54

FDW 125*3 144.44 NA 144.4 156

FDW shower Gel 138.89 11+1 127.3158 145


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LOYALTY PROGRAMS

Retail Class B:- Retailers qualified to sell ITC products

SL Qualified: - Shubh Labh Qualified Retailers are the ones who make a

purchase of the Rs 35000 every month to become wholesalers. This includes

purchase of every division excluding popular atta (plain atta).

FC Qualified:-First Club Qualified Retailers are the ones who have to make apurchase of Rs 12000 every month. On every purchase, for Rs 250 they earn

one point and after the target is achieved they earn one point for Rs 225.

These points can be redeemed after a period of 3 months by the way of

purchasing ITC goods without cash. These retailers are provided with the

facilities of display and Star SQ points.

CLO: - Category Leading Outlet. This program involves the facility of displayand when the retailers achieve certain targets stated by the company, they

are provided with 3% discount on the total bill of 3 months. CLO has 3

categories.

i) CLO Premium : Last 6 months average PCP sales > Rs. 1000

ii) CLO Popular Soaps : Last 6 months average PCP sales > Rs 750

iii) DEOCLO : last 3 months average deodorant sale > Rs. 800

RA: - Retail Architect. This program involves the facility of display but with a

higher amount than CLO outlets. In these outlets a third party comes and

does the designing for shelves selected for display. This program is only forcosmetic stores.

INCENTIVES TO THE DISTRIBUTOR SALES PERSONNEL

An incentive of Rs 100 per day for a minimum of 10 bills cut is provided to the

DS.

An incentive of Rs 75 per day for a minimum of 120 lines cut is provided to

the DS.

In case of Bingo Rs 60 per day for a minimum of 8 bills cut is provided to the

DS and additional of Rs 10 per bill for more than 8 bills.

Overall target achievement-

90% achievement:- Rs 1800




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Work DONE

Implementation of RA outlets:First 10 days were devoted for implementation of RA at 30 cosmetic outlets.In those outlets negotiation for the best spots available was done. Certain loopholes

where also found during that stage.

Name of outlet No of

shelves

Measurement Remarks

New Sovanalaya 2 Done Not a good spot

KK & sons 1 Done Bad spot(negotiation

going on)

Chandra Stationary 1 Done Ok

Cosmetic center Not done No space

provided(no timely

payment)Amrita stores 1 Done Good

Variety corner 1 Done Ok

Ladies corner

Rajlaxmi stationers 1 Done Ok

New Rakamari stores Not done No display

New city variety Not done Recommended for

DA outlet

Rani stores 1 Done Current spot is not

good. Asked the

dealer to negotiate

for a better spot

Rupango(J) 1 Done Same

New Rupango 1 Done Same

Nandanik 2 Done Ok

Maa kali stores 1 Done Good

Rupangan 1 Done Ok(no other place

available)

Barsha cosmetics 1 Done Good

Basanti M.S 2 Done Good

Ghose cousin variety 1 Done Ok

Fancy stores 2 Done Good

Jugal & co. 1 Done Ok

Sweet emporium 1 Done Ok

Minerva stores 1 Done Good

Jaiswal stores Not done Currently not a outlet

S lal & shaw 2 Done Good

Nu sweet emporium 1 Done Not good(no other

spot available)

Super store 1 Not done Space not available

Find Below, pictures of some stores and the negotiated shelves:


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Jugal & Company

S. Lal & Shaw

Fancy Stores


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Implemenation of CLO ProgramFor CLO program to be implemented the following Acknowledgment Form was needto signed by the shop owners, following which the merchandiser which would comeset up the display.

Acknowledgement for Display Acceptance

For office use only

WD Name & Code

Sify ID

Loyalty Type CLO PCP ________________________________ (Plz specify type e.g. DEO & Popular)

Date: _________________

To,

Store Name: ________________________________

Address: ___________________________________

Dear Sir,

As per your consent this is to confirm that the display as mentioned below will be put up in your store by the

merchandiser in next 30 days.

Please note that the display should have Backing sheet, Shelf Strip & Presence of agreed products all the time to

entitle you to receive the display amount as mentioned below:

Details Display Details

No of Agreed Shelves for Display

Brands For Display

Display Amount

Kindly confirm the above by signing this document.

________________________________

________________________________

(Name and Sign of Shop owner) (Name and Sign of

DS/TL)

Acknowledgement of Display Completion

Date of Acknowledgement Received by PPMS OM/OE: ________________

Date of Display Completion by Merchandiser: ________________________

I acknowledge the installation of the above display to my satisfaction.


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__________________________ ____ __________________________

(Name and Sign of Shop Owner) (Name and Sign of Merchandiser)

Process Note for Display Negotiation & Implementation:

1. Display Negotiation with the outlet: AE/WD TL/DS will negotiate the display space

at the outlets basis the potential outlets list provided by the HO team & will get an

acknowledgement (as attached) sign from the outlet owner. Please ensure that

displays should be taken only at Hot spots. AE/WD/TL will mark the space

negotiated for display with permanent marker so that merchandiser should be able

to identify the same.

2. Communication for Display implementation to PPMS team: AE will hand over the

acknowledgement to the respective PPMS OM/OE or the supervisor every Saturday

for implementing the display at the outlets.

3. Display Implementation by PPMS Merchandiser: After receiving negotiation

acknowledgement PPMS will put up a receipt date on the acknowledgement form &

execute the display within next 30 days. After putting up the display he will report to

his respective incharge & will hand over the slip to his incharge.

4. Merchandiser actionable in case of no permission by outlet: If outlets refuse for

display implementation then merchandiser will try to resolve the issue with the help

of the person who has negotiated the display at the outlet. If even after this

intervention, the merchandiser fails to put up the display then he will share the date

of visit & reasons for non-implementation of display at the outlets with hisrespective supervisor once a week.

5. Data base updation by PPMS: The data base of receipt forms will be updated by

PPMS backend team at their 8 branch offices & will be collated at PPMS head office

& will be sent to ITC HO as per agreed frequency. Respective PPMS OE/OM will also

share a weekly or fortnightly update on display implementation with issues if any

with ITC branch teams as per agreed dates.


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Outlets covered

Outlets under 4 distribution houses where covered

1) Gopal Enterprise (Belgoria) -272 outlets

2) Anil Bhusan and Mitra (Shyambazar) - 94 outlets

3) Subhas Trading Company (Saltlake) - 69 outlets

OBSERVATION AT DISTRIBUTION POINT

Wholesale Dealer OperationsITC has various distributors as per area/regions who follow the chain of transferringthe products to their clients. These distributors are independent proprietors/ partnerswho are the mediators between the company and the customer. Apart from the basicrelation of a mediator, the distributor plays a very important role as it passesconsistent raw information as to which product is performing in the market.

Order taking processThe order taking process starts from the customer point from where a PurchaseOrder (P.O.) is sent directly to the distributor of ITC via salesman.

Delivery processThe Delivery process starts after the goods are been loaded in trucks and are readyto move towards clients' stores.

Cash via salesman

System Loading

Ordering

Process

Delivery

Process Print out

CashDelivery person

Cash or Credit

Damaged policyThe company accepts manufacturing defects and damaged goods. These damagedgoods are returned to the company after the inspection done by the distributor.

Purchase Order from Client

Wholesale Dealer

Booking the Order

Load sli

Retail outlet

Company


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Cash/Credit ManagementOne of the most important decisions a distributor has to take is about cash /creditmanagement. Cash management includes effectively managing working capital. The

use of Working is the highest in distribution when it comes to any form of business.There is high amount of money blocked in working capital throughout the year, whichis very risky. The basic way at which this distributor managements the cash is byregularly following up accounts receivable.Credit management is the sole of this business as all clients / customers demand forlonger credit days as even there working capital is blocked till the end users do notpurchase the goods. Credit policy is designed as per the trade of terms policy of ITC.This policy is designed categories wise.

WORK AT RETAIL OUTLETS:1) To check the availability of products.

2) To check visibility of products.

3) To check how old the product is.

4) To trace the complaints regarding the product.

5) Identifying what would the factor to increase sale.

6) To select best place for display and maximum visibility

7) To understand what schemes and programs competitors are running


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Gopal Enterprise

Gopal Enterprises have 6 salesmen under it and 30 markets. Each salesman has 5

markets under which he covers every day. Thursday the market under Gopal

Enterprises remains close

Outlet Name

A KA BARNAWAL MAA LAXMI BHANDAR -

AAFIA ST MAA MANASHA BHANDAR

ABHA VARIETY MAA MANASHA BHANDAR (NIMTA)

ACHARYA STORES. MAA TARA (ST) -(ARD)

ADDYAMAA MAA TARA BHANDER-KHARDHA

ADHAKARY ST MADHURI SNACK

AGAMONI STORES MAITY ST

AMIO BHANDAR MALLICK ST

AMIT BH MAMATA VT

AMULYA BHANDAR MANILAL SHAW

ANIL ST-ARD MANISHA

ANIMA STORES MANORAMA STORES

ANNAPURANA BH-ARD MANOSHA BHANDAR (DURGANAGAR)

ANNAPURNA BHANDAR SUCKCHAR MATRI BHANDAR

ANNAPURNA BHANDAR-DURGANAGAR MATRI BHANDAR-MANIKDANGA

APARUPA ST MATRI BHANDAR-SCHOOL ROAD

AVINANDAN-GHOLA 2 MATRI BHANDER2

BABA LOKENATH BHANDAR - BELGHORIA MAYA BHANDARBABLU STORES MAYURI

BALAJI STORES MOHINI SRINGAR MAHAL

BANERJEE BHANDAR MONALISHA

BASANTI STORES MONDAL BROS

BENARASHI GROCERY MONDAL VT. STORES

BERA STORES MUSARAF ALI

BHAGABAN SHAW N. SAHA

BHAGOBATI BHANDAR NABA KALPATARU BHANDER

BHOLANATH BHANDAR NAKUL STORES

BHOLANATH BHANDER-NATAGARH2 NANDI STORES-RASKHOLA

BHOLANATH BHANDER-SUKCHAR NARAYAN STORES

BIJAY CONFEC. NAYAK (ST)

BIJAY ST (KAM) NEHA ST

BINA DEPRTMENTAL NEW LAXMI BHANDAR

BINA PANI ST NEW MAA DURGA BHANDAR

BISCUIT GHAR NEW VRT STORES-USHUMPUR

BISWARUP BHANDAR NILMANI SADUKHA

BISWAS VR. STORES NITAI CHAKRABORTY

C.LAL, NITYA GOPAL BHANDAR - ALIPURE MORE

CHATRABANDHU NOBEL TEA.


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CHAYANIKA O P GUPTA CLO

COSMETIC WORLD ONKAR STORES

D. M STORES P.G.GHOSH

DAS VR BH PARIMAL DEY

DAYAMAYEE VR ST PRINCE ST

DAYAMOYE. PROYAJANI STORES

DEBKUMAR DEBNATH PULIN PAUL

DEBNATH BHANDER PURNALAXMI BHANDAR

DEBNATH STORES. PUSPESWAR BHANDAR

DEBNATH STORES-RAHARA R.S.TRADING

DEEPSIKHA RADHA RANI ST-KAM

DILIP SARKAR RADHA VRT STORES

DILIP SHOW RAHARA VR ST

DILIP STORES RAIMA VRT STORES

DINESH CHANDRA SAHAR DOKAN RAJBANS SINGHDIPALI ST RAJLAXMI BHANDAR

DIPANKAR STNR GOODS RAJLAXMI BHANDER

DIPIKA STORES RAKAMARI ST-D P NAGAR

DIPTY VT.-GIRJA RANJIT ST

DURGA ST (ARD) RATION SHOP 208

DURGA STORES-SAKTIPUR RENUKA.

DUTTA VRT STORES USH RINKI VRT STORES

DUTTA VT. ST.-SCHOOL RD RIYA ST

ELGO S. SAHA

GANAPATHI TRADING S.DABNATH

GANDHESWARI BHANDAR - (NIMTA ROAD) S.GHOSH

GANDHESWARI BHANDAR-SCHOOL ROAD S.K.BHANDER

GANESH BH (KAM) SADHANA VR ST-CLO

GANESH BH (N.PARA) SADHUKHA VRT STORES

GANESH TRADERS SADHUKHAN ST

GANESH TRADING - KDH2 SAHA BHANDAR

GHAR SANSAR. SAJGHAR.

GHOSH BROTHERS. SAJSAJJA (DKS)

GHOSH BROTHERS-NANDAN NAGAR SAMANTA STORES-GIRJAGIRI BHANDAR SANDHA ST.

GITANJALI SANKAR BHANDAR

GLOSSY IMITATION SANKAR GHOSH(618)

GOBINDA BHANDAR SANKAR GRO.-NATAGARH2

GOPAL BHANDAR SANKAR VRT STORES

GUPTA ST ( S K GUPTA) SANTA ENTERPRISE

GUPTA ST. SANTI STORES (MATHKOL)

GUPTA STORES (PRAFULLA NAGAR) SANTOSHI MAA BH (KAM)

GUPTA TRADERS-SASHI SANTU KARMAKAR

H.N.KOLEY SANTY BH.

HALDAR STORES SARASWATI BHANDAR.


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HAREKRISHNA SARKAR BANIJYA

INDIAN ST SAROSWATI BH

ITYADI. SATYA NARAYAN BHANDAR-AGARPARA

JANONI STORES SATYA NARAYAN BHANDER

JOY GOPAL BHANDAR. SAYAN ST (BH/ARD)

JOY GURU STORES SHIB BHANDER - SUKCHAR

JOY MAA KALI BHANDAR-R N AVENUE 2 SHISU ART

JOY MAA TARA SHIV STORES

JOY MATARA BHANDAR SHIVAM ST

JOYA STORES SHOW ST

JOYDEB BHANDAR SIKHA STORES

JOYRAM STORES SITARAM BH (ARD)

JOYTY ENTERPRISE SNEHALATA EMITITION

JYOTSNA-SARADAPALLY SONAR TARI

KABERI STORES SREE DURGA BHANDARKACHER SWARGA SREE GANESH BH(RIFELREANG ROAD)

KALI MATA BHANDAR SREE GOURANGA BHANDAR

KALIMATA STORES SREE GOURANGA.

KALPATARU-AGARPARA SREE GURU ABODUT BHANDAR

KAMALA BHANDAR. SREE GURU BHANDAR.

KAMLA EMITITION SREE GURU BHANDAR-GHOLA

KANU DUTTA SREE GURU ONE

KHUDIRAM STORES SREE GURU STORES-SAKTIPUR

KIRAN VR. STORES - BELGHORIA STATION SREEMAA STORES

KRISHNA BHANDAR. SRI BHANDAR

KRISHNA CORNER SRI DURGA ST

KUNDU BHANDAR SRI KRISHNA BHANDAR

KUNDU ST-BH SRIMA STORES.

LAKHI SNACKS SUBHASIHINI STORES

LAXMI BHANDAR-RAHARA SUBHOM STORES- 3 NO. RAIL GATE

LAXMI BHANDAR-SENBAZAR SUDHA ST(KAM)

LAXMI BHANDER-MISSONPARA SUJAY ENTERPRISE

LAXMI BHANDER-NATAGARH 2 SUKUMAR SAHA

LAXMI NARAYAN BHANDAR SULAB BHANDARLAXMI NARAYAN ST-MINMAY GHOSH SULAB SAMBHAR

LAXMI ST (ARD) SUSAN ST(BH)

LAXMI ST-NIMTA SUSOMA ST

LAXMI STORES-B T ROAD SWAGATA STORE(BH)

LAXMINARAYAN STORES, TARA MA BHANDAR

LOKENATH STORES - OLD NIMTA TARA MA ST

LOKNATH BHANDAR-KHARDA 2 TARAKNATH BHANDAR.

LOKNATH ST(KAM) TARAKNATH BHANDAR-AGARPARA

LOKNATH STORES. TARAKNATH BHANDER.

LOKNATH STORES-RAHARA THE CHEAP STORES

LUCKY STORES TIRUPOTI ST


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MAA ANANDAMAYEE ENT TRILOKE SHOW

MAA CHINDICK ST CLO TRINATH BHANDAR

MAA DURGA BHANDARBIRATI TRIPURA BHANDAR

MAA DURGA BHANDAR(SVS) UTTAM VT. STORES

MAA KALI BHANDAR - D. P. NAGAR VARIETY STORES

MAA KALI BHANDER VICTOR MEUSEUM

MAA KARUNAMAYE VIVEKANANDA BHANDAR

MAA LAXMI BH. MAA LAXMI BHANDAR

Of the above 272 outlets 208 outlets were converted to CLO outlets.

Anil Bhusan and Mitra

Outlet Name

A N HALDER MAA DURGA STORES

A.BASAK MAHA PRAVU BHANDER

A.K.STORES ( V. ROAD( MAHA RAJA STORES

ABHIJIT DUTT MAHAKALI STORES ( HADUA)

AMIR CHAND MAHESH BHANDER

ANAND TRADING MALATI ZARDA

ANANDA BHANDER- RM MAMON LADIES CORNER

ANNAPURNA BHANDER ( APC) MANJU STORES ( BEADON)

B. L. MISRA MODERN VARIETY STORES-R.D.SARKARB.P.AGARWAL(SHAMBHU DA) NEW ELITE TEA HOUSE

BALAJI ENTERPRISE NEW LAXMI NARAYAN BHANDER- MASZID

BARU LAL SHAW NEW MADHUMALA

BASUDEB SAHA NEW SUNDARAM

BHATTACHERJEE STORES NILIMA

BHOLA NATH STORES O.C.VARIETY

BINOD SHAW OMPRAKASH SHAW

BINOD SHAW(RGK) P G SHAW

BINOD SHAW(SYM) P.HALDER

CHARU CHANDRA STORES PRALLAD RAM OMPRAKASH

CHATERJEE BROTHERS RAJU BHANDER BAGBAZAR

D.N.CHOWDHURY S.K.SHAW

DASHAKARMA BHANDER S.KUMAR ( HEDUA)

DINESH SHAW(RGK) S.KUNDU

DIP STORES S.L.AGARWAL

G S RANA S.LAHA

GANDESWARI BHANDER(HG) S.N.BASAK

GANESH STORES SAFEDA BHANDER

GHOSH BROTHERS ( RGK) SAHA STORES-VIVEKANADA ROADGIRIJA PRASAD GUPTA SAMIR SETH ( APC)


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GOPAL STORES SANJAY STORES ( HEDUA )

GUPTA BHANDER (MANIKTALA) SANKAR STORES (123/1/1

HANUMAN PRASED GUPTA SANKAR STORES(HG)

JAGNATH STORES ( HADUA) SANTOSH SHAW

JAGONATH STORES SHAMALI

JUST FRESH SHIV BHANDER- DARJEE PARA LANE

K C SHARMA SIDDHI GOPAL STORES

KAMALA STORES(B/R SARANI) SOUMODEEP TELECOM

KAMALA TEA CO. SREE AGARWAL BHANDER

KASHINATH BHANDAR SREE DURGA STORES (RS)

KHOKAN NAG SREE KRISHNA BHANDER

KISHORI SHAW SREE TIRUPATI BALAJI

KISHORI SHAW(BAG) SUNIL AGARWAL

LAHA BROTHERS SURESH SHAW ( HEDUA)

LUCKY STORES SUSHILA STORESM.D.CASH SWAPAN KR. SETH

M/S K P KARAK & S C KARAK TARU BALA STORES

MAA BHABANI BHANDER USHA STORES

Of the above 94 outlets 81 outlets were converted to CLO outlets

Subhash Trading Company

Outlet Name

ABHINANDAN NARAYAN BHANDER

ALAPAN NEEDS

AMIT MAJUMDER NEW ANANTA BHANDER

ANNAPURN BHANDAR AB

MARKET NEW KARUNAMAYEE STORES

ARNNAPURNA BHANDER NEW LOKNATH BHANDER

BABA TAROKNATH BHANDER NEW MAA KALI BAHNDER

BABAMONI HOME NEEDS NEW MAA SONTOSHI

BAPI STORES PROBIR STORES

BAPPA DEPARTMENTAL

QUALITY HOUSH IB

MARKET

BHOUMIK STORES RADHA STORES

CHATTERJEE CONFECTIONERY RATION SHOP BJ MARKET

DASABHUJA STORES RATION SHOP-BD BLOCK

DUTTA BHAI-EC BLOCK RATION SHOP-IA BLOCK

FAIR TRADERS RELIABLE ENTERPRISE

GANESH BHANDER ROY & SONS

GLOBAL FOOD MART S.N.C.L

GOSH VARIETY STORES SAHA STORES

GUPTA STORES SANGAMGURUDEV TRADING SANKAR CONSUMER


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HORI CHAND BHANDAR SATORUPA BANDER

JEET STORES SHIVAM STORES

JOY GURU BHANDER SHREE GANESH

K.K.BHNADER SHREE HANUMAN STORES

KARUNAMAYEE SIDDESWARI BHANDER

KAUSHIK HOWLADAR (SUSIL) SOVA VARIETY STORES

LOKENATH BHANDER SREE DURGA BHNADER

LOKENATH STORES-AE BLOCK SREE GRIHASTI STORES

MAA ANNAPURNA STORES SREE KRISHNA BHANDER

MAA LAXMI BHANDER SUDHYA KHADYA BHANDER

MAA SONTOSHI BHANDAR TARA MAA BHANDER

MAA TARA BAHNDER THE SUMBAR

MAA VARITY STORES TRINATH BHNADER

MAMONI STORES UTSAV

MURARI STORES VIVEKANANDA STORESYOGOMAYA STORES

Of the above 69 outlets 55 outlets were converted to CLO outlets

The once which are not selected is due to the following reasons:

Non availability of display shelf

Non availability of a good spot for display

Dealer asking for a much higher rate which was allowed by company

Dealers not ready due to the previous display related experiences Outlets not suitable for being CLO due to lack of competition or low sales

Schemes and programs run by other companies

Unilevers

Unilevers is current using Hangers for display of its small packet products like

Surf Excel, Rin, Tressemme sampoo etc.

For this there is no fixed monthly payments

This incentive is decided on the basis of sales

The incentive on different products are as follows

Small sachet products: 05% on sales

Soaps: 1 % on sales

Food: 2 % on sales

In addition to the above points they are also given a monthly target, and if the

target is achieved they get addition 1.5% discount

There is also a concept of HUL Hulk Counter. Hulk Counters are the selected

as area top 3 counters; they get the benefit receiving all the products before

the other retailers and also get extra 2% incentives.


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Procter and Gamble

P & G currently is running Shiksha Program

There is no display amount but 4% Discount on the bill

LIMITATIONS

To be able to interact well with the retailers knowing the local language is

mandatory

All the grocery shops used to get closed down at around 1 oclock. So all the

work have to be completed before that

All the shops were small. They did have a clear idea as what schemes and

loyalty programs are run by the companies. So data collection was a problem

As the location of the shops were difficult to trace down, i had to travel with

the area sales man. They took a lot of time in taking orders and payment

collection and this killed my lot of time.

CONCLUSIONS

Few outlets could have been set without paying the display amount; incentive

on sales would be fine with them. This would not only save monthly paymentsbut also increase sale.

Introduction of soap for summers. Some retailers complained of lack of a cool

soap, which are demanded by the customers during summers

Providing Testers of deodorant in few outlets could be beneficial, as it would

increase the sale of deodorants

Timely payment of display amount is required as all the retailers complained

regarding the same.

There is a huge undercut in the market. Rates in the wholesale market are

very less. This is causing problems to retailers as there is huge difference in

price. This needs to be checked and resolved as soon as possible Engage Deodorant advertisement fails to offer differentiation. It plays the

same theme which the rest of the deo players, the so called chemistry

between men and women.

Fogg on the other hand has moved up in market because it chose to speak in

a different language

Documents

ITC report on retail outlets