Sales, Distribution and Retail

Project: Indian Tobacco

Management-2
Company
Presented to: Prof. Nirmalya
Bandyopadhyay
Presented by: Group-3
Sahil Verma 163017
Aditya Arora 163019
Belthasar Mohanta 163020
Bhavya Bareja 163021
Chitrank Bhargava 163022
Shivangi Bhardwaj 163025
 ITC
ITC's FMCG business is its largest business segment and includes brands such as Aashirvaad, Bingo!,
Sunfeast, and Classmate. The company's Hotels business operates a chain of luxury hotels under the
ITC Hotels brand. ITC's Paperboards and Packaging business is one of the largest paperboard
manufacturers in India. The company's Agri Business division sources and processes agricultural
products such as wheat, rice, and pulses. ITC's Information Technology business provides IT services to
the company's other businesses.
 Market
Segmentation
• Geographical • Benefit
• Demographic • Cultural and Regional
• Psychographi • Environmental and
c Sustainability
• Behavioral

• Product Based
• Channel Based
• Occasion
 Sales Force
Structure
Formal and coordinated task of assigning territories
and establishing flows of communication and
responsibilities of sales groups and individuals to
serve customers effectively

The Hierarchy being followed by ITC is

Line structure
1. District Sales Manager
2. Regional Branch manager
3. Branch Manager
4. Assistant Manager
5. Assistsasnt Manager
6. Area Manager
7. 3 circle incharge (city, metro and UP
country)
8. Area Executive
9. Sale Trainee
 Sales Force
Sizing
Sales Force Sizing Methods
• Activity based method
ITC
• Pipeline method
• 2 million Retail Stores
• Target method
• 1550 - Wholesale Dealers
• Sales Response method
• 20,000 Sales Force - PAN
• Breakdown method
India
• Geographical Concentration
 Sales Force
Compensation
 Roles and Responsibilities of Sales
Team
• District Manager - Develop and execute sales and marketing strategies
• Regional Branch Manager - Develop and implement regional sales and
marketing plan
• Branch Manager - Responsible for branch sales, inventory and customer
service
• Assistant Manager - Assists in managing branch slaes, inventory, and
staff
• Area Manager - Develops area-level sales and marketing strategies
• 3 Circle In-charge - Responsible for overseeing sales and operations
within specific circles (eg. city, metro, country)
• Area Executive - Supports the Area Manager in day-to-day activities
Channel Levels
Distribution Channel of ITC
limited
 Inventory
Management

Business Pricing
Strategies
Planning Marketing and
Promotion
Process
Sales Analysis
 Retailer Study- Aashirwaad
atta • Whole Wheat Variants: 2kg, 5kg, 10kg
• Multigrain Variants: 2kg, 5kg
Inventory Analysis • Specialty Variants: Aashirvaad Sugar Release Control Atta (2kg, 5kg), Aashirvaad Shudh Chakk
(5kg)

Top selling SKUs:

• 5kg Whole Wheat (Turnover rate: 3 weeks)
Sales Analysis • 2kg Multigrain (Turnover rate: 4 weeks)

Shelf Placement and

• Prominently displayed on eye-level shelves with clear signage.
Merchandising

• Pillsbury,
• Annapurna,
Competitive Analysis • Nature Fresh,
• Fortune
 Retailer Study- Sunfeast
Yippee! • Available SKUs: The store offers a wide range of Sunfeast Yippee; Instant Noodles, including class
flavors like masala, magic masala, and Chinese variants.
Inventory Analysis • Packaging Sizes: The product is available in 70g, 140g, and family pack sizes.
• Pricing: Prices are competitive, with occasional discounts on family packs.

• Top-Selling SKUs: The 70g masala flavor and the family pack variants consistently
Sales Analysis rank as the top-selling SKUs.

• Shelf Position: "Sunfeast Yippee!" Instant Noodles are strategically placed at eye
Shelf Placement and level, ensuring high visibility.
• Promotions: Special promotions, such as "Buy 2 Get 1 Free" on family packs, attract
Merchandising
customer attention.

• Nestle Maggi
• Chings
Competitive Analysis • Knorr Soupy Noodles
• Top Ramen
 Retailer Study- Sunfeast Dark
Fantasy • Available SKUs: The store offers a diverse range of "Sunfeast Dark Fantasy" biscuits,
including flavors like chocolate, vanilla, and limited-edition variants.
Inventory Analysis • Packaging Sizes: The biscuits are available in various packaging sizes, from single-
serving packs to family packs.

• Top-Selling SKUs: The chocolate-flavored "Sunfeast Dark Fantasy" biscuits consistent

Sales Analysis rank as the top-selling SKUs, followed by the vanilla variant.

Shelf Placement and

• Prominently displayed on eye-level shelves with clear signage.
Merchandising

• Competing Brands: Competitive brands offer similar premium biscuits, but Sunfeast
Dark Fantasy stands out due to its taste and brand reputation.
Competitive Analysis • Product Differentiation: Exploring more unique and gourmet flavors could further
differentiate Sunfeast Dark Fantasy.
 Supply chain managers need to construct a set of pricing, delivery and payment
Payment Flow
processes with suppliers and also create the metrics for controlling and improving
the relationships.

ITC → Distributors: ITC sells its products to distributors on a credit basis. This
means that distributors are not required to pay for the products upfront.
Instead, they are given a certain amount of time to pay for the products,
typically 30 or 60 days.

Distributors → Wholesalers: Distributors sell ITC's products to wholesalers on a

credit basis as well. However, the payment terms may be different than the
payment terms that ITC offers to distributors. For example, distributors may
offer wholesalers a shorter payment period, such as 15 or 30 days.

Wholesalers → Retailers: Wholesalers sell ITC's products to retailers on a credit

basis or a cash basis. If the sale is on a cash basis, the retailer must pay for the
products upfront.

Retailers → Consumers: Consumers pay for ITC's products at the time of

purchase. Retailers may accept cash, credit cards, or debit cards.
Channel Communication
Distributor
• ITC communicates
s with its distributors to gather feedback from distributors on how to improve its
products and services.
• ITC sales representatives meet with distributors on a regular basis to discuss sales targets for the
upcoming quarter.
Wholesaler
• ITC communicates with its wholesalers on a regular basis to provide them with updates on sales
s
performance, inventory levels, and promotions. ITC also uses this communication to help wholesalers
develop their own marketing plans and sales strategies.
• ITC sends wholesalers an email newsletter every week with information about new products,
promotions, and other important updates.
Retailer
• ITC communicates with its retailers to help retailers train their staff and improve their customer
s
service.
• Consumer
ITC uses its mobile app to provide retailers with access to their order history and sales data.
s
• ITC communicates with consumers through a variety of channels, including advertising, marketing
campaigns, and social media. ITC also uses its website and customer service portal to answer
consumer questions and address complaints.
• Consumers can contact ITC customer service by phone, email, or social media to address concerns or
 Channel Promotions
• Trade discounts and allowances: ITC offers trade discounts and allowances to its
distributors and retailers to encourage them to stock and promote its products.
• Sales contests and incentives: ITC regularly conducts sales contests and incentive
programs for its distributors and retailers. These programs are designed to motivate
channel members to sell more of ITC's products.
• Cooperative advertising and promotional programs: ITC cooperates with its distributors
and retailers on advertising and promotional activities. This cooperation helps ITC to
reach a wider audience and promote its products more effectively.
• Training and support programs: ITC provides training and support programs to its
distributors and retailers to help them sell its products more effectively. These programs
cover a variety of topics, such as sales techniques, product knowledge, and
merchandising.
 Premiumization:
Growing middle class that is willing to pay a premium for
high-quality products

Rural markets:
Its reach in rural markets is relatively weaker. This is a
significant gap in the market, as rural areas account for
a large proportion of the Indian population.
Gaps in the Lack of omnichannel

Market integration:
Customers have a different experience when shopping at
an ITC store online versus shopping at an ITC store
offline.
International
markets:
ITC exports its products to over 90 countries, but its
international sales are still relatively small.

E-commerce:
E-commerce is growing rapidly in India and ITC has a
limited presence in this market.
 Challenges

1 2 3 4

Market share and ITC is struggling to Competitors like- HUL, P&G, Dabur, Parle
Market penetration gain good revenue HUL, P&G, Dabur, and other brands have
of ITC’S from the rural India Parle and other are early mover
products/brands are due to increased very strong in rural advantage
very low in Rural India competition India and with pricing
strategy
 Distributor
problem
(Tobacco products)

Product problem
Analysis for (Premium range)

low market Positioning

problem
(Tobacco & Cigarette
share company)

Huge competition
in rural market Major players like HUL, Dabur

Awareness
problem
(Not so famous like like
Dabur)
 Recommendations for
ITC
1.Diversify 2. Leverage 4. Leverage e-
3. Localization
Product distribution commerce
strength
profolio network platforms

8. Collaborate
5. Price-value 6. Investing in 7. Constant
and
balance sustainability Innovation
partnership
Thank
you