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 COMPETITORSGLUCOSE PARLE, BRITANNIA AND HORLICKSMARIE BRITANNIA AND BISK FARMBUTTERBITE AND CREAM PRIYA GOLD, ANMOL, BRITANNIA AND PARLE
Flow Diagram CNF FACTORY WHOLESALE DEALER BASE RETAILERWHOLESALEDISTRIBUTOR
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.
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.