3. 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
4. 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
5. 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.
6. 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.
8. ITC Business Portfolio
FMCG
Cigarettes Foods Personal Care Lifestyle Retailing
,
Education & Stationery Matches Incense Sticks
Paper & Agri Information
Hotels Packaging Technology
Business
14. Based on the production in India biscuits
can be broadly classified into:-
15. 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)
17. 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%
18. 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.
20. 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/-
21. 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 ………………….
22.
23. 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
24. 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
25. 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.
26. 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.
27. 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.
28. 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.
29. 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.
30. 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
31. Flow Diagram
CNF
Mumbai Hoskote Bangalore
FACTORY
WHOLESALE
DEALER
BASE
Santacruj (mumbai) Hill road ( shri traders)
WHOLESALE RETAILER
Bandre(w)
DISTRIBUTOR
Sarley rajan road
34. 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
35. COMPITITOR
PRODUCTS COMPETITORS
GLUCOSE PARLE, BRITANIA
MARIE AND HORLICKS
BUTTERBITE PRIYA GOLD,
AND CREAM ANMOL,BRITANI
AND PARLE
36. 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.
37. 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
38. 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
39. 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.
40. 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.
41. Observations
Companies with top product are hard to bargain
on credits.
Companies also use their premium products to
push their non premium products.
42. 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
43. ITC SUNFEAST
BISCUITS
Presented by:
VIKRAM SINGH Khangarot
ROBIN
MAHAROOF
BINA Bhatia