1. Sales & Distribution Strategy : Packaged Snack Food Category
1
ITC BINGO
Hybrid Order Booking Model
Implementation, Results & Scale up
Harshvardhan Singh Chauhan
Copyright 2009 , ITD Marketing, ITC , Bangalore.

2. 2
Copyright 2009 , ITD Marketing, ITC , Bangalore.
Presentation Plan
•Understanding the Sales And Distribution Chain
•Tracking Sales loss Across Bangalore
•Tracking the variation in supply
•Opportunities to avoid the Sales
•Order Booking Model
•Hybrid Model Solution
•Pure Order Booking Model

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Understanding the Sales And Distribution Chain
Copyright 2009 , ITD Marketing, ITC , Bangalore.

4. 4
Copyright 2009 , ITD Marketing, ITC , Bangalore.
Processes in the chain

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Copyright 2009 , ITD Marketing, ITC , Bangalore.
•ECD
•Stock at hand
•Supplies
•Reserve Stock
•Cash at hand
Inefficiencies in Loading
•Stock at WD point
•Route Demand
•Carrying Capacity

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Dynamics involved in a Sales negotiation
Copyright 2009 , ITD Marketing, ITC , Bangalore.
•Prefers high
selling SKU’s
•Prefers more
credit & variety
•Induces Sales
Cannibalization
•DS pushes
available stock
•Maximize sale
value , bill cuts,
lines cut
•Retailer’s capacity
to pay

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•Stock Check
•Hanging Ladis
•Arranging on rack
•New Stock Rotation
on rack
•Expired stock
•Air out Packets
•Unsold / Obscured packets in
stores
•Lost visibility
Copyright 2009 , ITD Marketing, ITC , Bangalore.
Inefficiencies in Merchandising

8. 8
25%
33%
31%
32%
Copyright 2009 , ITD Marketing, ITC , Bangalore.
• High Average Daily
Actual Sales of
Rs.5020
•Low Billed Outlets
Coverage 30.71%
•Excess Stock 60.43%
•Expected Daily Sales
of Rs.7832 per DS
•High Average Daily
loss of Rs.2812 per
DS
•Huge Demand
Supply Mismatch
•Stock Unavailable
99.99%
•Stock out 0.01%
Tracking the Sales Loss
20%
26%
27%
37%
Across 112 routes , 4200 + outlets , 8 WD points •Sales loss of 35.5%

9. 9
Variation in demand and supply for January’09
Copyright 2009 , ITD Marketing, ITC , Bangalore.
•Reserve stock of five
days was taken
•ECD is prepared by
the Area Executive
•Total Variation of
83%
Inefficiencies in Supply
•10 variants supplied
•Three variants supply
was only 50% of
demand
•Two variants supply
of more than 100%
•Only Three variants
supply was close to
demand
•91.38% excess
supply
•Four variants were
under supplied
•One variant had
close to 100% excess
supply
ECD + Reserve
Supply + SOH

10. 79 KGs of transfer 380 KGs of transfer 212 KGs of transfer
Cover Day Report Analysis for MA Associates & Rushub as on May 30th ‘09
Copyright 2009 , ITD Marketing, ITC , Bangalore. 10
MA
Rushub
Was Sales loss avoidable?

11. HYBRID MODEL WEEKLY PLAN
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The Order Booking Model – Rushub
Copyright 2009 , ITD Marketing, ITC , Bangalore.
HIGHLIGHTS
•Two routes clubbed together in one day
•Alternate day cycle of Order Day (OD) and Supply
Day(SD)
•Visibility of DS is just doubled per route
•22 day average : Inc Sales 25.64% ,Inc Bill Cuts
70.33% , Inc Lines Cut 44.31%
•K4 costs reduced by 40.20% : Saving of Rs.8 in
servicing per outlet
Sales 48.76%
Bill Cuts 78.5%
Lines Cut 40%
Sales 57.89%
Bill Cuts 84.9%
Lines Cut 54%
Sales 39.49%
Bill Cuts 82.6%
Lines Cut 58%

12. HYBRID MODEL WEEKLY PLAN
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The Hybrid Sales and Distribution Model – MA Associates
Copyright 2009 , ITD Marketing, ITC , Bangalore.
HIGHLIGHTS
•Two routes clubbed together in one day
•Alternate day cycle of Order Day (OD) and Supply
Day(SD)
•Visibility of DS is just doubled per route
•25 day average : Inc Sales 23.81% ,Inc Bill Cuts
112.34% , Inc Lines Cut 45.29%
•K4 costs reduced by 40.20% : Saving of Rs.8 in
servicing per outlet
Sales 16.98%
Bill Cuts 101.5%
Lines Cut 47%
Sales 37.89%
Bill Cuts 156.9%
Lines Cut 40%
Sales 39.49%
Bill Cuts 179%
Lines Cut 58%

13. The Pure Order Booking Model – Emerald
HIGHLIGHTS MODEL WEEKLY PLAN
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•Four routes covered by 4 DS on OD
•15-18% more outlets added in each route
•Increased Coverage per route
•Two supply vehicles used for 4 routes on SD
•22 day average : Inc Sales 15.91% ,Inc Bill
Cuts 25.4% , Inc Lines Cut 25.33%
•K4 costs remains same at Rs. 2600/- for
four days
Sales 15.91%
Bill Cuts 25.4%
Lines Cut 25.33%
Copyright 2009 , ITD Marketing, ITC , Bangalore.

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The END
Copyright 2009 , ITD Marketing, ITC , Bangalore.