ITC LIMITED
GROUP –B9
Industry Overview
Segments : Organized & Unorganized sectors (60% - 40%) Exports: 10% of the Annual Productions (Annual Production
2009:18.68 lakh metric ton). Imports: Insignificant Marketing: Wholesale & Retail Marketing is carried out with a
network of C & F Agencies (for states and/specific Districts) Dealers/ Wholesalers and Retail Shops.
Biscuit Industry: Especially The Small & Medium Sector, Consisting of around 150 units.
Per Capita Consumption: 2.1 kg as compared to 2.5 kg to 5.5 kg in South Eastern countries and European Countries & USA
Popular Brands: Britannia, Parle, Priyagold, Sunfeast. Value of the Industry: Rs. 65 Billion
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Market Share*
Organized Sector
Unorganized Sector
60% 40%
Urban Rural
85%-75% 65%-55%
Sector Wise Population Wise
* Data from Indian Biscuit Manufacturer Association
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Players in the market
Parle G Britannia ITC – Sunfeast Unibic Priya gold Horlicks Others
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Market Share*
North Zone 25%
West Zone 23%
East Zone 28%
South Zone 24%
Parle 40%
Britannia 28%
Priya Gold 15%
ITC 11%
Rest 6%
Region Wise Brand Wise
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* Data from Indian Biscuit Manufacturer Association
Industry – Annual Growth Rate
2004 15%
2005 14%
2006 14%
2007 13%
2008 15%
2009 (June) 17%
Annual Growth Rate* Line Graph
* Data from Indian Biscuit Manufacturer Association
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Company Overview - ITC
ITC is one of India’s foremost private sector companies. It is engaged in diversified businesses.
The Group’s business is divided into 5 segments: FMCG Agribusiness Paperboard, Paper & Packaging. Hotels Others (IT, Investment, Golf, Lifestyle Retails, Greeting
Cards etc.)
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ITC Food Division
The foods business is newest and smallest business of the conglomerate
Revenue Last Year (FY 2009): Rs. 23, 000 crore It faced a tough road when it began operations in
2001, with severe competition from existing players. Biscuits have been the biggest driver of the foods
division, contributing over 35% of the top line, followed by staples.
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Products & Services
Agricultural Commodities. Branded Garments Cigarettes Greeting Cards Incense Sticks Marine Products Packaged Foods Safety Matches
Golf Hoteliering IT Based Services Investments
Products Services
(Staples, Confectionery, Biscuit, and Snack Foods)
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Bangalore City Chennai Coimbatore Hyderbad Rayalseema Ernakulam
Bangalore Karnataka TOTAL
Confectionary 1200 1440 3072 924 948 2484 960 11028Bingo 17676 8928 276 7392 96 492 132 34992Atta 261084 240552 50076 434508 127020 22944 56412 1192596Biscuits 7992 12300 18516 3816 5376 6936 7692 62628Matches 33000 100332 71892 39300 172704 136020 30576 583824Agarbatti 64308 111444 122436 269304 352620 54984 49464 1024560Soaps &Shampoos 618648 515292 746016 499956 563088 671316 536532 4150848TOTAL 1003908 990288 1012284 1255200 1221852 895176 681768 7060476
Bangalore City Chennai Coimbatore Hyderbad Rayalseema Ernakulam
Bangalore Karnataka TOTAL
Confectionary 1056 1296 2976 864 924 2388 888 10392Bingo 15048 8424 240 7308 84 456 120 31680Atta 233664 218556 46824 382548 107976 21348 49608 1060524Biscuits 6252 10200 15564 3660 4944 5520 6384 52524Matches 31416 98124 63720 36132 152508 123984 29988 535872Agarbatti 63144 110580 118392 262776 342492 54012 49188 1000584Soaps &Shampoos 598380 487356 716004 481560 538572 631476 504012 3957360TOTAL 948960 934536 963720 1174848 1147500 839184 640188 6648936
Sales Figures of Different product Category for 2008-09* - South
Sales Figures of Different product Category for 2007-08* - South
10* in terms of Volume
Bangalore City Chennai
Coimbatore
Hyderbad
Rayalseema
Ernakulam
Bangalore Karnataka
Confectionary 14% 11% 3% 7% 3% 4% 8%
Bingo 17% 6% 15% 1% 14% 8% 10%
Atta 12% 10% 7% 14% 18% 7% 14%
Biscuits 28% 21% 19% 4% 9% 26% 20%
Matches 5% 2% 13% 9% 13% 10% 2%
Agarbatti 2% 1% 3% 2% 3% 2% 1%Soaps &Shampoos 3% 6% 4% 4% 5% 6% 6%
Growth Rate of Different Product categories of ITC for South
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Customers and their Locations for South.
Total Distributors for ITC – South Region (No. of Territories)a. Bangalore – 15b. Chennai – 53c. Coimbatore – 55d. Ernakulum- 67e. Hyderabad – 19f. Karnataka – 85 g. Rayalseema - 67
Total customers of ITC:a. Total SWDs* – 11155 SWDs
Total customers in Bangalore:a. Total SWDs* in Bangalore – 657 SWDs * SWD – Secondary Wholesale Dealer
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BANGALORE
Classification of Customers
1. Convenience Stores: Pan Beeda, Tea Shops
2. Grocery Stores3. Chemist Shops4. Modern Trade: Big Bazaar, Food
Bazaar, Spencers, Star Bazaar, Spar, More, Reliance Fresh
5. Secondary Wholesale Dealers
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Customer wise buying potentials for Sunfeast Biscuits*
Channels wise Customer
2008-09 % to total 2007-08 % to total
Convenience Stores
2360 11% 1658 10%
Grocery stores 7936 38% 6420 40%
Chemists Shops 136 1% 92 2%
Modern Trade 1220 6% 844 5%
SWDs 9288 44% 6872 43%
Total 20940 100% 15886 100%
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* in terms of Volume
TerritoriesDistributor Territory Distributor Territory
Bina Enterprises
Banaswadi, Kammanahalli
Saphire Yeshwantpur,Mahalakshmi LayoutRajajinagar
DA Sons Vijaynagar, Chandra layout, Majestic, Navrang
Santhosh Commercial
Whitefield, ITPL, Domlur, Marathalli
Dwarka Jayanagar, J.P Nagar Savi Enterprises
Electronic city
Emerald Kormangala, Madiwala, Adugodi, HSR Layout
Shri Shakti Enterprises
Yelahanka, Peenya,Dasarahalli
G N Marketing
Ulsoor market, Indiranagar
Siva Traders Bommanahalli, Chandapura, Hosur Road
M A Associate
Gandhinagar, Basavangudi, N R Colony
Sri Venkateshwara Enterprises
Hebbal, Mysore Road
Rushabh Neelsandra,Shivajinagar
TCS Dodballapur
Devanahalli, Bagepalli,C B Pur, G B Pur
TCS & Sons Bannerghatta Road
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Territories in Bangalore
Total Territories – 15 Territories assigned by ITC:1. 4 each salesperson is assigned by the company
for each product category to a distributor Company sales person -3 (1 in distributors
office) Trainee -1 2. No two Salesperson will cover the same
distributors3. Territories are assigned based on the orders
generated by the salesperson and conversion of the order into sales.
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Territories in Bangalore
Territories assigned by the Distributor:
1. 1 each salesperson is assigned by the distributor for each product category falling under his territory
2. Distributor assigns his salesperson based on the order generated by him for what he is assigned.
3. Salesperson will cover the entire outlets in the distributors areas based on routes.
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Routing19
Every day salesperson has to cover min. of 30 outlets and max. of outlets for that particular route for which route is pre-scheduled
Different routes on different working days of a week so that entire territory is covered
Retail Shop Visited
Sriram Tarders Contacted Person’s: Mr. Hariram Vishnoi Phone Number: 9414571929
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Comparison - 121
Comparison - 222
Comparison - 323
Scheduling24
Sales person of the distributor must visit every outlet of his product category frequently (once a week).
A detailed report of the days’ work should be uploaded in the company server from the distributors‘ office.
Has to pre-assign time to be spent at each outlet
General ManagerMarketing
RSM(South)
RSM(North) RSM
(east)RSM(west)
ASM
Senior Sales Persons Junior Sales Persons
Sales Organization
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B2B & B2C Sales force
Different sales person for B2B & B2C customers.
B2C channel is the regular sales force through distributor.
A separate team looks after the B2B sales for ITC.
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Selection & Training
Referrals, Campus S&D experience preferred On the job training. Going on calls with Sr. Sales Executives in
the field for atleast 6 months and also along with the distributor salesperson.
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Motivation, Compensation
Working for brand Sunfeast Biscuits Sales Exec. – 15,000 p.m Incentives – Gifts like Trips, Durables etc. on
achieving Sales target. Cross Promotion Gifts – Coupons, Benefits
etc. Best Sales Exec. Award – Once in 6 months Contests : Kaun Marega Sixer ?, Sunfeast
Premier League etc. Sales Manager -: 3-5 lacs p.a.
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Evaluation
Sales Manager evaluates every month Managers appraised on basis of reports
and results Sales manager – Regional Manager- Area
Sales manager
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ITC
Convenience
Stores
Distributors
Grocery stores
Chemists shops
Modern Trade
Secondary Wholesale Dealers
Channel Design
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Channel Objectives
To maximize sales under each channel To produce maximum support to the
distributor from order generation upto sales
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Factors in Channel Design
Huge market potential Spread in vast areas – Easily Accessible
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Company Factory North
Company Factory North
Company Factory East
Company Factory East
Company Factory West
Company Factory West
Company Factory South
Company Factory South
Distributor
HubHub WSP (warehouse)WSP (warehouse)
Convenience Stores
Convenience Stores
Chemists Shops
Chemists Shops
Grocery Stores
SWDs
Distribution Channel
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SWOT ANALYSIS of ITC
STRENGHTS: Developing new brands for new segments Diversified company trading in number of
business sectors
WEAKNESS: Still uses its original name, despite the negative
connection of tobacco with poor health and premature death
Dependent upon its tobacco revenues to fund its FMCG products
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SWOT ANALYSIS of ITC
OPPORTUNITIES: Certain brands can be developed using
strategies of market development, product development and marketing penetration
ITC is moving into new and emerging sectors including Information Technology, supporting business solutions.
E-Choupal initiative to links rural Indian farmers using the Internet and the Novel way of following the same
Per capita consumption of personal care products in India is the lowest in the world.
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SWOT ANALYSIS of ITC
WEAKNESS/ CHALLENGES: Domestic & International competition. Entrance
of new competitors to the Indian market Threat of competition from existing competitors
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FAB ANALYSIS37
Features Advantage Benefit
Prime Location of outlets
Easy availability Convenient basically for shoppers, travelers, office going people as it is basically located near malls, railway stations and inside MNC’s etc.
Product Assortment Provide different varities of items which is easy to cook & eat like Kitchens of India, Pasta etc
Satisfies hunger and provides satisfaction
Areas Needing Improvement
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Continuous production & supply of different varities of biscuits throughout the year
Come up with specials schemes to retailers (SWDs) and end customers in the form of gifts or benefits inorder to make them buy more of Sunfeast Biscuits
Motivate the retailer to buy Sunfeast biscuits by offering better PTR compared to that of other Competitors
Continuous touch with the wholesaler & retailer (SWD) to build up a strong relationship
Introduce new varities of biscuits that differentiates Sunfeast from other players in the market. Eg- Cookies.
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THANK YOU