Itc Sales And Distribution By Dipak Patel

ITC SUNFEAST BISCUITS SALES AND DISTRIBUTION

Discussion Outline

Discussion Outline

Introduction to ITC  One of the worlds most reputable company  Market capitalization of nearly US $ 18 billion  Turnover of over US $ 5.1 Billion  Post tax profit of US $750 Million  Diversified product portfolio  Direct group employment of 29000

Introduction to Sunfeast  Launched in July, 2003  Growth rate of 53%  Turnover of over 1000 crore  Wide categorization PRODUCTS

COMPETITORS

GLUCOSE

PARLE, BRITANNIA AND HORLICKS

MARIE

BRITANNIA AND BISK FARM

BUTTERBITE AND CREAM

PRIYA GOLD, ANMOL, BRITANNIA AND PARLE

Products at a Glance

Discussion Outline

Organizational Structure

Recruitment at ITC  Entry level  Premier management institutes  Middle level  Integrity  A "will do" attitude  High energy  Creativity  Leadership  Team skills  Ability to think strategically

Discussion Outline

Diagram

FMCG

FOOD AND BEVERAGES

OTHER FMCG PRODUCTS

Distribution of Food Products  Strict compliance standards, low profit margins, intense competition, high customerservice expectations.  Fast and effective sales ordering processes.  Flexibility  Quick reaction

Important Factors

CREDIT SYSTEMS

PROMOTIONS

DISTRIBUTION CHANNELS

MARGINS

FOOD

STOCK OUTS

WASTAGES

Discussion Outline

Distribution Channel

Flow Diagram CNF

FACTOR Y

WHOLESALE DEALER BASE WHOLESALE DISTRIBUTO R

RETAILER

Distribution System  ITC uses FIFO method to reduce the wastage of goods due to expiry.  They also keep the good on constant move from low sales area to high sales area.  The company collects all the expired goods four times a year, and destroys them.  Retailers must return expired or damaged products within six months after the date of expire.

Distribution System  Adjustment for them is done in three months time.  ITC provides their retailers with racks, hangers, etc to display the products.  The benefits received by the retailers depend upon their sales volume and also the location of their shops.  ITC has hired IMRB to do the market research.

Discussion Outline

Observations  Food products are normally a high volume ball game.  Products have to essentially be available in the market at all given points of time and at all given points of purchase.  The supply of products takes place virtually on a daily basis in fixed quotas or otherwise, to retailers as per their requisitions and the anticipation of demand and the performance of products in the recent past.

Observations  The skeleton of distribution system is same for all the companies.  Companies try very hard to make a difference at some point to get the competitive advantage.  ITC has a very strong distribution network for their cigarette brands and they are using this network to push their new biscuit brands.  Credit system also depends upon the position of the product in the market.

Observations  Companies with top product are hard to bargain on credits.  Companies also use their premium products to push their non premium products.

Discussion Outline

ITC SUNFEAST BISCUITS Presented by:

Padalia Nandan

Dipak Patel

Shawinder Paul Singh