About The Company

ABOUT THE COMPANY…  Diversified group of companies with operations in various industry segments from cigarettes to apparels.  Annual turnover is of the order US$2.4 billion  One of the largest retailing network in the country  Ranked 8th in the ET 500 survey.  Products –Cigarettes, hotels, apparels, paper, etc.

DISTRIBUTION NETWORK(Tobacco Div.) Bangalore

Calcutta

Saharanpur

Munger

Factories (4)

GODOWNS GODOWNS (19) (19)

BRANCHES BRANCHES (19) (19)

Information Goods

WHOLESALE WHOLESALE DISTRIBUTORS DISTRIBUTORS (60 (60 PER PER BRANCH) BRANCH)

RETAILERS RETAILERS

SECONDARY SECONDARY WHOLESALERS WHOLESALERS

Role of Each Member  Factories – Supply to 18 godowns  Godowns & Branches  Manage by C&F agents getting monthly remuneration  No rent paid by ITC  one branch – 60 WDs , 5 AMs and 20 Area Executives

 Wholesale Distributors(WDs)  Margin – 2% of sales  Appoints secondary Wholesalers

Role of Each Member Retailers

Grocery Stores

Convenience Dealers

Hotels , Restaurants & Cafes

Super Markets

TERMS & CONDITIONS

 WDs – Zero overnite credit basis  WD appointed supervisor monitor the performance of sales force  Primary expectation – no pilferage of cigarettes

MARKETING DECISIONS Two Levels  National level  



Brand Managers in consultation with branch managers. National promotion plans- sponsorships & event organizations

Branch Level ( Two Decisions) 1. 2.

Local Promotions Small Level Promotions

PHYSICAL DISTRIBUTION  Demand Estimation – collaborative forecasting( Sales force with dealers)  Forecast based on last month sales  Production plan made according to forecast  Delivery to C & F agents within 7 days  CFAs deliver goods to dealers on the basis of the branch office route plan  Factory CFAs- Trucks  CFAs Dealers – Small Vehicles

FLOWS  Promotion flows  No volume discounts to channel members  No scope for cash discounts

 Information Flow  Main information source- Wholesalers  ITC ERP system

FINANCIAL TRANSACTIONS  Zero day credit policy  Supplies are frozen till clearance of dues  Strict regime due to millions of retailers  Strong bargaining power for the company

PROBLEMS FACED by ITC CHAIN 1.

Shortages in supply system   

1.

Hoarding due to anticipation of a rise in excise duties on cigarettes Creates artificial shortage Can be solved by stricter monitoring policy during the time close to the budget

Pilferage of stock during transportation  

Due to improper action of WDs Can be solved by timely reporting

Thank You