ITC Sunfeast: Sales and Distribution

85,172 views

Published on

Published in: Business
58 Comments
30 Likes
Statistics
Notes
No Downloads
Views
Total views
85,172
On SlideShare
0
From Embeds
0
Number of Embeds
235
Actions
Shares
0
Downloads
2,873
Comments
58
Likes
30
Embeds 0
No embeds

No notes for slide

ITC Sunfeast: Sales and Distribution

  1. 1. ITC SUNFEAST BISCUITS SALES AND DISTRIBUTION
  2. 2. Discussion Outline
  3. 3. Discussion Outline
  4. 4. 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
  5. 5. Introduction to Sunfeast  Launched in July, 2003  Growth rate of 53%  Turnover of over 1000 crore  Wide categorization PRODUCTS COMPETITORS PARLE, BRITANNIA AND HORLICKS GLUCOSE MARIE BRITANNIA AND BISK FARM BUTTERBITE AND CREAM PRIYA GOLD, ANMOL, BRITANNIA AND PARLE
  6. 6. Products at a Glance
  7. 7. Discussion Outline
  8. 8. Organizational Structure
  9. 9. Recruitment at ITC  Entry level  Premier management institutes  Middle level  Integrity  A quot;will doquot; attitude  High energy  Creativity  Leadership  Team skills  Ability to think strategically  Grass root level
  10. 10. Discussion Outline
  11. 11. Diagram FMCG FOOD OTHER AND FMCG BEVERAGES PRODUCTS
  12. 12. Distribution of Food Products  Strict compliance standards, low profit margins, intense competition, high customer-service expectations.  Fast and effective sales ordering processes.  Flexibility  Quick reaction
  13. 13. Important Factors CREDIT SYSTEMS MARGINS FOOD STOCK OUTS PROMOTIONS DISTRIBUTION CHANNELS WASTAGES
  14. 14. Discussion Outline
  15. 15. Distribution Channel
  16. 16. Flow Diagram CNF FACTORY WHOLESALE DEALER BASE RETAILER WHOLESALE DISTRIBUTOR
  17. 17. 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.
  18. 18. 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.
  19. 19. Discussion Outline
  20. 20. 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.
  21. 21. 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.
  22. 22. Observations  Companies with top product are hard to bargain on credits.  Companies also use their premium products to push their non premium products.
  23. 23. Discussion Outline
  24. 24. ITC SUNFEAST BISCUITS Presented by: Amitanshu Srivastava Ashish Baid Alok Kumar Anand Kumar Ankit Nema

×