ITC Limited: One of India's Most Admired Companies

ITC Limited
One of India’s Most Admired Companies

ITC SUNFEAST
BISCUITS
SALES AND DISTRIBUTION
MARKET SIZE
 The Indian FMCG sector is the fourth largest sector in the

economy with a total market size in excess of $28 billion.
 ITC Having market capitalization of US $ 15 billion . company

headquartered in Kolkata, India.
 Annually turnover of the company is US $ 4.75 billion.

4,86,000 share holders.
 The result: market capitalization of US$ 33 billion and turnover of over

US$ 7 billion.
 ITC today is a leading FMCG marketer in India, the second largest

Hotel chain, the clear market leader
INTRODUCTION
 ITC was incorporated on August 24, 1910 under the name Imperial
Tobacco Company of India Limited.
 India Tobacco Company Limited in 1970 and then to I.T.C. Limited in

1974.
 Chairman Y C Deveshwar
 1910 Incorporation of 'Imperial Tobacco Company
of India Limited'.
 1925 Setup of Packaging & Printing Business
 1975 Launched its Hotels business.
 1979 Entered the Paperboards business
 1990 Set up the Agri Business Division
 2000 Launched a line of high quality greeting cards

under the brand name 'Expressions‘
 2000 Entered the Lifestyle Retailing business with the

Wills Sport.
 2000 Spun off ITC InfoTech India Limited.

 2001 Introduction of 'Kitchens of India' Indian gourmet
dishes
 2002 Launch of the brands mint-o and Candyman

confectionery and Aashirvaad atta
 2002 Started marketing popular safety matches brands
 like iKno, Aim
 2003 Foray into the marketing of Agarbattis (Mangaldeep)
 2005 Introduced Essenza Di Wills, an exclusive range of

fine fragrances
 2007 Entered the fast growing branded snacks category

with Bingo!.
 2007 Launched the 'Superia' range of Soaps and Shampoos

in the mass-market segment.
Corporate Governance Structure
ITC Ltd.
FMCG-
Agri Business
Cigarettes
Paperboards &
FMCG-Others
Packaging
InfoTech Hotels
ITC Business Portfolio
FMCG
Cigarettes Foods Personal Care Lifestyle Retailing
Education & Stationery Matches Incense Sticks
Paper & Agri Information

Hotels Packaging Technology
Business
Organizational Structure
SALES ORGANISATION
STRACTURE
SALESMAM
SUPERVIOSOR
SALESMAN
Area
DISTRIBUTOR
executive
SUPERVISOR SALESMAN
WD point at santa cruj
WD Area from Santa cruj to Bandra
NO.of A.E =2
NO.of supurviser =7
NO. OF sales man = 17

Introduction to Sunfeast
 Launched in July, 2003
 Growth rate of 53%
 Turnover of over 1000 crore
 Wide categorization
Products at a Glance
Based on the production in India biscuits
can be broadly classified into:-
Pattern of Biscuit Consumption(On
Zonal basis) in the country are as
below:
Northern Zone - 25%

Western Zone - 23%
Southern Zone - 24%
East and North
East Zone - 28%
(Including N.East)
Rural-urban penetration of Biscuit:
Urban Market : 75% to 85%

Rural Market : 50% to 65%
Annual Growth
The biscuit industry in India
witnessed annual growth as below:-
2003-04 - 15%
2004-05 - 14%
2005-06 - 14%
2006-07 - 13%
2007-08 - 15%
2008-09 - 17%
2009-10 - 19%
Biscuit: Growth potential
The Biscuits industry in India is

worth around Rs. 3000 crores and
30% of it belongs to the organized
sector. It is the largest among all
food industries in the country and is
expected to grow at about 17-19% in
the years to come.
MARKET SHARE
ITC
Column1
SUNFEST BRITANIA PRIYA GOLD OTHERS PARLE-G
10%
36%
31%
9%
14%
ITEM DISCRIPTION
UN WITHOUT VAT AFTER MRP
VAT RATE 14% VAT
GLB GLUCOSEBISC PC 1.61 0.22254 1.83 2/-

35 UIT 35.2GM
GL GLUCOSEBISC PC 3.13 0.4382 3.17 5/-

O69 UIT 60GM RS4
BOURBON 74
BOB GM PC 7.83 1.092 8.92 10/-
01
BOURBON 74
MA GM PC 7.83 1.092 8.92 10/-
110
SC SPECIAL
158 CHOCO 129GM PC 7.83 1.092 8.92 10/-
OR ORENGE 156
156 GM 20/- PC 15.67 2.2932 17.86 20/-
PAWAN'S SPECIALITIES PVT.
LTDSTOCK AS ON 7/10/11.
SR NO. ITEM DISCRIPTION UN WITHOUT VAT RATE
BOB BOURBON 74 GM,
01. 01 10/- PC 7.83
BUTTERSCOTCH PC
02. BU001 78GM ,10/- 7.83
GOLD.BAKE.BUTE
03. BUTO2 ERSCOTCH 75gm, PC 11.81
SPL
04. CC165 CHOCOCOOKIES PC 15.67
165GM
SC SPECIAL CHOCO
05. 158 129GM PC 7.83
OR ORENGE 156 GM
06. 156 20/- PC 15.67
MARIE OATS 7.84

07. MA110 110GM RS10 PC
MARIE LIGHT 180 PC 11.75

08. MA111 GM
09. MARIE LIGHT PC 7.84
ML130 130GM
10. MARIE LIGHT PC 11.75
ML199 199GM
TOTAL FOR BI ………………….
Distribution of Food Products
 Strict compliance standards, low profit

margins, intense competition, and high
customer-service expectations.
 Fast and effective sales ordering processes.

 Flexibility
 Quick reaction
 BEAT PLAN TO GENERAL STORES
 ROUTE PLAN FOR MODERN TRADE
 KEY OUT LET

BEAT PLAN FOR GENERAL STORE
Process -
Route plan
sales order on previous day or
P.O on previous day
supply on next day by transportation
collection of payment (1 to 3.. Wickless
cover 70 to 80 shops)
Beat Plan-
Sales person visit a particular area on weekly
basis.
Main out lets are visited twice a week.
Nearly 30 to 40 stores daily
Monday to Saturday
 SUPERVISOR DS ROUTE
Bandra west
30 to 40 shops daily)
 Anil gupta Manoj Mount mary,Band
stand,chambai,
parry cross,
Shirley rajan road.
Asif ali (30to 40 shops daily)

Hill road, chapel,
road.
Key out let supervisor visit different
different out let as per route plan.
Key out let sayales man visit all key

outlet on route plan basis
Different outlets on daily visit.
Visit from Monday to Saturday.

SUPPLY IN MODERN TRADE
In modern trade(Big Bazar,vishal)

P.O Is mail to distributor point, or
collect by sales man.
Sales man visit different route on

day’s basis.
If there is shortage of products sales

man notice them and contact to
category head for O.P.
MARGIEN AND SCHEME
Distributor - Margin scheme

3%
Modern trade - margin buy 4
12-14% get 1 free
General stores- 10-12%

Wholesaler - 10-12%+2%
Keep fresh stock on front
Give scheme if stock is about to
expiry.
Distribution System
 ITC uses FIFO method to reduce the wastage of

goods, due to expiry. (Biscuits expire in 6 months)
 They also keep the Biscuits on constant move from

low sales area to high sales area.
 The company collects all the expired Biscuits from

market and destroys them.
 Retailers must return expired or damaged

products within time before the date of expire.
Distribution System
 Adjustment for them is done in every months

time.
 ITC provides their retailers with racks, psu’s,

fod’s,(face on display), standees and Glow shine
boad,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 merchandiser to promote Biscuits

Flow Diagram
CNF
 Mumbai Hoskote Bangalore
FACTORY
WHOLESALE
DEALER
BASE
Santacruj (mumbai) Hill road ( shri traders)

WHOLESALE RETAILER
Bandre(w)
DISTRIBUTOR
Sarley rajan road
PAYMENT COLLECTION
Modern trade – credit of 7 to 15 days.
General trade - cash, or credit of

7 to 15 days.
NEW PRODUCT LAUNCH
Dark fantasy chocolate 20/-
Chocolate cookies 60g, 5/-

(without cream)
NEW PRODUCT LAUNCH
Soon coming with…………….
ITC is coming with two new verities
a)Dream cream chocolate vanilla.
b)strro berry vanilla.
RS. 10 and 20
COMPITITOR
 PRODUCTS COMPETITORS
 GLUCOSE PARLE, BRITANIA

MARIE AND HORLICKS
 BUTTERBITE PRIYA GOLD,

AND CREAM ANMOL,BRITANI
AND PARLE
COMPETITION STRATEGY
 One of the well known brand in India.

 Powerful Brands across segments.
 Leadership in segments - geographic
& price.
 Extensive FMCG distribution network.
 Direct servicing of 1,00,000 markets
& nearly 2 million Retail outlets.
 Exciting long term growth potential.
 World-class state-of-the-art
technology and products.
COMPETITION STRATEGY
Maintaining relation ship with both

retailer and distributor.
Market divination into Grocery out
let, convince outlet,(sell all product
except Atta, dale, ready to eat salt)
Modern Trade, etc.
PSU’S (Packet staking unit)
Face on display
Plannogramming
Launching new brands
In shop display
UNIQUE
ITC is unique as an organization,

they are into various sectors in the
business.
A) Distribution channel

B) Distribution cycle
C) Display
D) Promotion strategies
E) Plannogramming
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.
LEARNING
 ITC new product launching strategies-

Invite retailers
Training to staff
Schemes
Incentive
Visibility Display
In shop Display
FOD’S (face on display
Free samples
Bandra is called testing market
ITC SUNFEAST
BISCUITS
Presented by:
VIKRAM SINGH Khangarot
ROBIN
MAHAROOF
BINA Bhatia

ITC Limited: One of India's Most Admired Companies

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ITC Limited

One of India’s Most Admired Companies

 The Indian FMCG sector is the fourth largest sector in the

 ITC Having market capitalization of US $ 15 billion . company

 Annually turnover of the company is US $ 4.75 billion.

 The result: market capitalization of US$ 33 billion and turnover of over

 ITC today is a leading FMCG marketer in India, the second largest

 India Tobacco Company Limited in 1970 and then to I.T.C. Limited in

 1925 Setup of Packaging & Printing Business

 1975 Launched its Hotels business.

 1979 Entered the Paperboards business

 1990 Set up the Agri Business Division

 2000 Launched a line of high quality greeting cards

 2000 Entered the Lifestyle Retailing business with the

 2000 Spun off ITC InfoTech India Limited.

 2002 Launch of the brands mint-o and Candyman

 2003 Foray into the marketing of Agarbattis (Mangaldeep)

 2005 Introduced Essenza Di Wills, an exclusive range of

 2007 Entered the fast growing branded snacks category

 2007 Launched the 'Superia' range of Soaps and Shampoos

Education & Stationery Matches Incense Sticks

Paper & Agri Information

WD Area from Santa cruj to Bandra

NO. OF sales man = 17

 Launched in July, 2003

 Growth rate of 53%

 Turnover of over 1000 crore

Northern Zone - 25%

Urban Market : 75% to 85%

The Biscuits industry in India is

GLB GLUCOSEBISC PC 1.61 0.22254 1.83 2/-

GL GLUCOSEBISC PC 3.13 0.4382 3.17 5/-

MARIE OATS 7.84

MARIE LIGHT 180 PC 11.75

 Strict compliance standards, low profit

 Fast and effective sales ordering processes.

 BEAT PLAN TO GENERAL STORES

 ROUTE PLAN FOR MODERN TRADE

 KEY OUT LET

Asif ali (30to 40 shops daily)

Key out let sayales man visit all key

Different outlets on daily visit.

Visit from Monday to Saturday.

In modern trade(Big Bazar,vishal)

Sales man visit different route on

If there is shortage of products sales

Distributor - Margin scheme

General stores- 10-12%

 ITC uses FIFO method to reduce the wastage of

 They also keep the Biscuits on constant move from

 The company collects all the expired Biscuits from

 Retailers must return expired or damaged

 Adjustment for them is done in every months

 ITC provides their retailers with racks, psu’s,

 The benefits received by the retailers depend

 ITC has hired merchandiser to promote Biscuits

Santacruj (mumbai) Hill road ( shri traders)

Modern trade – credit of 7 to 15 days.

General trade - cash, or credit of