ITC Summer Internship

Impact of Private Hawkers on Retail Market
Impact of Private Hawkers on Retail Market Page 1
INTERNSHIP PROJECT REPORT ON
IMPACT OF PRIVATE HAWKERS ON RETAIL MARKET
SUBMITTED TO
A.GOVINDRAJ,Asst Manager
ITC LIMITED
SUBMITTED BY:
NARENDRA KULKARNI
Student-PGPB02
VANGUARD BUSINESS SCHOOL, BANGALORE

CONTENTS Page No
1) Executive Summary 4
2) Introduction 5
3) Methodologies 6
4) Qualitative Data Collection 7
5) Interpretation of Problems 8
6) Insights of Data Collected WD Wise 9
7) Graphical Representation 10
Ganesh Associates 10
Savitha Sales Corporation 11
8) Implemented Solutions to reduce Private Hawkers Area-wise 13
9) Converted Outlets and Converted Private Hawker 14
10) Solutions to overcome the Impact 15
11) Conclusion 16
12) List of Converted Outlets 17
13) Appendices 20

ACKNOWLEDGEMENT
With great pleasure I, extend my gratitude towards Mr. A Govindraj,Asst Manager at ITC
Marketing limited, Bangalore and Mr. Gaurav Sharma,Area.Manager and Mr.Santosh Gobre,AE
for their constant advice and interest and valuable guidance during the course of the project and
internship stint. The cooperation extended to me was not only useful for the internship stint but
also will be helpful for my future to come. I also would like to thank my beloved mentors Mr.
Arka Bhattacharya and Mr.Rahul Reddy for their constant guidance throughout the Internship
process.
Finally I would like to thank both the wholesale distributors i.e.”Savitha Sales Corporation” and
“Ganesh Associates”,Mysore and their support staff, Salesmen for providing a lot of support and
insights about the market. Finally I would also like to thank all of them who helped me
constantly in the project stint directly and indirectly.

EXECUTIVE SUMMARY
The project was basically carried out in order to overcome the impact of private salesmen on the
retail market. The project went out by finding the un-serviced outlets across the city of Mysore
on the basis of the ITC formed routes for the registered salesmen through the distributor points.
During the process of internship I, was able to interact with 2300 retail outlets and found out 200
un-serviced outlets in the respective areas of Mysore city and also we were able to convert 6
private salesmen thus constituting a add on 240 outlets in list of WD’s. Finally the project went
on in order to understand the problem associated in doing business with the DS (Direct
Salesmen) by the un-serviced outlets and also tried to address the problem and convert them
.With the better understanding of the problem associated with the un-serviced retailers, I have
come up with few suggestions which would be of an advice to the distributor points in order to
improve the sales of the Direct Salesmen and also to convert the private hawkers to Direct
Salesmen which would be further useful in acquiring more number of stores in days to come in
future.

INTRODUCTION
The Project was carried out in order to overcome the impact of private salesmen in the retail
market. Here the project was based on the issue that the percentage of market capture was
basically done by the private hawkers, these are the salesmen who are selling all products of
varied companies and thus they do a certain percentage of sales of cigarettes in market. As the
main agenda of the project was to look for the un-serviced outlets in the areas of Mysore city and
basically understand the problems associated with them not doing the business with the DS and
also to address their problems and covert them to do business with DS. Further in course of the
work the another main agenda was to meet the private hawkers and convert them to join as a DS
at distributor points which would increase the number of outlets counts for the DS and the WD’s.
During the course of the work few insights were found out were-in basically the outlets which
were left as un-serviced or serviced by the private hawkers, were the ones which were having the
problems of credit issue as the DS cannot issue a credit of more than half a day which made to
lose out on the business with the respective stores. Another issue which took of the light was the
availability of wholesale stores nearby and thus making the retailers of that region to buy
whenever there is a customer in place, as these are the outlets which do business after the sales
takes place. Based on the data gathered in the market as a part of the course work we converted
95 stores of the total 200 un-serviced outlets present in the respective areas of respective DS and
also we converted 6 private hawkers considering a coverage of 40 outlets per hawker a total of
240 outlets were added-on to the WD’s. Few suggestions which quoted below which would be a
key element to convert the stores and private salesmen in the future.

METHODOLOGIES
Process of Converting the Outlets
• Divided the 200 un-serviced outlets on the basis of problems they faced to do business
with DS
• We assured few outlets to provide a stock on a regular basis for the whole year as some
outlets had a problem with the earlier DS of the respective area
• Converted few outlets by assuring them the benefits like display, PSU etc
• Created awareness about the selling of old MRP in the areas of D-Plain and thus
converted outlets with the respective area
• Converted few outlets by increasing the time frame of collection by the DS,As these
outlets had a problem with credit
• Used the technique of availability of all products and at the same price throughout the
year helped to convert few of the outlets in the C-class category stores
Process of Converting the Private Hawkers
• Majorly private hawkers service the outskirts of the city where there is majority of C-
class category outlets available and thus the quantity of cigarettes purchasing power is
low
• Converted the private salesmen by providing assurance of allocating a route which can do
a business of Rs 60,000
• Assured a private salesmen of providing salary for a few months until he settles down in
the business
• As there will be a fluctuation of price in the wholesale market, therefore we converted a
private salesmen based on availability of products throughout the year at same price

QUALITATIVE DATA COLLECTION
Basically the data was collected by meeting and having a discussion with more than 200 Un-
serviced outlets across Mysore city and outskirts of it. Here the problem associated with the un-
serviced retailers where noted down and there were reasons which were repeatedly occurring
from the retailers and the reasons are given below,
1) Problem associated with credit
2) Problem associated with only selling of ITC products as retailers also requires Non-ITC
products
3) Good relationship existing between private hawkers and un-serviced retailers
4) Availability of wholesale stores nearby also impacting the DS to do business within the
respective area because the retailers buy at least three times a day depending upon the
sales occur in their respective outlets
Taking percentage into consideration for the above mentioned reasons based on 200 un-
serviced outlets sample
1) Credit-41% (82 outlets)
2) Provision of all products(ITC and Non-ITC)-10.5% (21 outlets)
3) Availability of Wholesale stores in respective areas-24.5% (49 outlets)
4) Good Relationship-24% (48 stores)

INTREPRETATION OF PROBLEMS
Here the major problem of not doing business with the DS is because of non-provision of
credit which accounts for 41.5% in nature and this is due to the fact that these are the
outlets which do a business of Rs 400 a day and basically carry out the process of buying
on the amount of sales a respective outlet does the respective day.
As quoted above the second major constituent is the provision of all products (ITC and
Non-ITC) which accounts for 10.5% of the total un-serviced outlets. Here basically these
are the percentage of stores which are able to do a business with one hawker because as
these retailers require a time frame to collect the money and invest the money back into
the business. Therefore these retailers prefer to do business with a hawker who can
majorly provide all the required products at one stretch.
Here another problem which the DS is facing is the percentage of wholesale stores
available in the respective area which accounts about 24.5% of the complete market.
Here were-in the retail outlets bring the products depending on the sales they incur for
and also the wholesalers present in the region provide a time frame in order to re-collect
the amount for the products they distributed. Thus making the business harder for the DS
in respective area.
As quoted above in the page no-6 the relationship plays a prominent role in the business
module for the un-serviced outlets which majorly accounts for about 24% of the un-
serviced outlets, were-in these outlets are doing a business around several years and
created a chain and thus it is hard to divide the business between the DS and the
respective hawker and thus it is hard to capture the respective market.

INSIGHTS OF DATA COLLECTED WD WISE
As per the data collected the 200 un-serviced outlets is divided into 140 outlets which comes
under “Savitha Sales Corporation” and 60 outlets under “Ganesh Associates” based on the data
the total number of outlets is divided on the basis of service provided by the private hawkers and
the wholesalers. The data is interpreted below.
Savitha WD
1) Service provided by Private Hawker
Total Stores Serviced By
Private Hawker
53
Total Un-serviced outlets
found 140
% of service by
PH 38%
2) Service provided by Wholesalers
Total Stores Serviced by Wholesale 87
Total Un-serviced Outlets found 140
% of service by
wholesale 62%

Ganesh WD
3) Service Provided by Private Hawker
Total Stores Serviced By
Private Hawker
9
Total Un-serviced outlets
found 60
% of service by
Private Hawker 15%
4) Service Provided by Wholesalers
Total Stores Serviced by Wholesale 51
Total Un-serviced Outlets found 60
% of service by
wholesale 85%
On the basis of the above data collected and interpreted the service provided by the private
hawkers in the region of “Ganesh Associates” turns out to be 38% of the un-serviced outlets and
15% un-serviced outlets is been serviced by the private hawkers in the region of “Savitha Sales
Corporation”.
Here basically the total percentage of private hawkers and wholesalers combined under both the
WD’s constitute 8.85% of the total 2300 outlets serviced by both the WD’s. Here there are few
outlets which constitutes to a problem of not conducting a proper business with the DS thus these
outlets are being serviced by the private hawkers and wholesalers for the respective outlets

GRAPHICAL REPRESENTATION OF MAJORITY UN-SERVICED OUTLETS
CONSTITUED AREAWISE
1) GANESH WD
Total Un-serviced Outlets-60
VVET- 6 Outlets
Gayatripuram-5 Outlets
Jayanagar-6 Outlets
Ashok Road -7 Outlets
Saraswathipuram-6 Outlets
Srirampura-21 Outlets
Nazarbad-3 Outlets
Santipet-6 Outlets
Fig-(A)
6
5
6
7
6
21
3
6
VVET
Gayatripuram
Jayanagar
Ashok Road
Saraswathipuram
Srirampur
Nazarbad
Santipet

2) SAVITHA WD
Total Un-serviced Outlets -140
Bannimantap-6
Padavarhalli,Vijaynagar-13
Rajivnagar P and T Quarters-10
Mandi Mall-7
Kare-16
Basavangudi,Hebbal,BMC-19
Bogadi,KHB Colony-20
NR Mall-15
Udaygiri-31
Fig-(B)
From the graphical representation the areas of Udaygiri and Srirampura constitutes major
number of un-serviced outlets and followed by areas are Bogadi, and Basavangudi were-in the
supply is basically done by the private hawkers.
6 13
10
7
16
19
20
15
31
Bannimantap
Padvarhalli
Rajivnagar
Mandi Mall
Kare
Basavangudi
Bogadi
NR Mall
Udaygiri

Taking into consideration of 200 un-serviced outlets and average business of Rs 400 a day of
sales by each store the total sales and earning comes to be Rs 80000 per day which points out the
loss of business the DS is making every day and considering the commission of all DS taken
together it comes out to be Rs 640 per day. Thus considering average breakup for 26 DS in both
the WD taken together into consideration it comes out to a loss in business of RS 24 and a
monthly loss of business in Rs 738.
IMPLEMENTED SOLUTIONS TO REDUCE PRIVATE HAWKERS AREAWISE
As per the graphical representation mentioned in page no-10, it indicates that the highest
number of un-serviced outlets is present in the area of Srirampura, Bogadi, Basavangudi,
Udaygiri.
Considering the area of Srirampura here the major number of outlets are being serviced
by the private hawkers and therefore with the help of ITC team members and support of
WD we were able to convert the hawkers by allocating them the respective area and the
outlets
The region of Bogadi and Basavangudi were majorly the un-serviced outlets do the
business with the private hawkers and therefore with the support of the Savitha WD we
were able to convert the private hawkers by assuring them of providing a business of Rs
60,000 a day along with the area they are previously servicing and thus helping them in
order to match their previous income.
A total of six private hawkers were converted across the Mysore city and thus
constituting a total conversion of 240 un-serviced outlets which were previously serviced
by them

CONVERTED OUTLETS AND CONVERTED PRIVATE SALESMEN
During the course of the internship process a total of 200 un-serviced outlets were found in the
areas of Mysore district and the private hawkers were also found out during the process of
conducting the project. As of the process completed we were able to convert 95 stores in the area
of “Savitha Sales Corporation” and “Ganesh Associates” taking 200 un-serviced outlets into
consideration in order to make the outlets serviceable by the distributor salesmen.
As per the above data the percentage of outlets converted in the Savitha Sales Corporation area
can be interpreted as 46.42% (Taking 140 Un-serviced outlets of the area into account)
The percentage of Un-serviced outlets converted in the region of “Ganesh Associates” can be
interpreted as 50 %( Taking 60 un-serviced outlets into account)
The total percentage of outlets converted is considered to be 47.5%
With the support and guidance of ITC team and WD six private hawkers are converted into
Regular DS by offering them the area which can give sales of Rs 60,000 per day and thus
considering 40 stores as an average of each of six hawkers, We were also able to convert 240
stores on a stretch and the hawkers name are listed below,
Name Area
Mr.Veelu Bannimapntap
Veerbhadregowda Bogadi
Gangaraj Utgahalli
Nagaraj Hinkal Korghalli
Converted Private Salesman in “Ganesh Associates”
Name Area
Nagaraj Parsynhundi
Shivlingaswamy Srirampura

SOLUTIONS TO OVERCOME THE IMPACT OF PRIVATE HAWKERS AND UN-
SERVICED OUTLETS
Some of the solutions or strategies quoted below are based on the problems which are addressed
as shown above in the page no-4, Here basically in order to overcome or reduce the impact of
private hawkers on retail market and reduce the un-serviced outlets, few suggestions can be
framed they are quoted below,
The attraction of the un-serviced retail outlets is basically dependent on the benefits they
incur from the organization or the distributor points; therefore in order to acquire the un-
serviced outlets the organization can provide display, PSU (Product Stacking Unit),
Cycling Display etc.
In order to convert the private hawkers to join as a DS, The distributor and organization
should provide the hawkers to do a business of at least Rs 50000 to 60000 and also need
to provide a benefit like salary etc until the hawker settles down in the area provided.
As the credit plays a prominent role in C-class category of outlets basically the average
business will be around Rs 400 therefore considering the number of such outlets in the
respective area the hawker should increase the collection time frame which opens the
door to business with such outlets to an extent
As the private hawkers provide all products inclusive of ITC and Non-ITC, In order to
address the problem the only key is to convert them by stating availability of ITC
products throughout the year and therefore each and every outlet having the above
mentioned problem can be converted at least to the maximum extent because as the
private hawkers will face the problem at times to meet the requirement of those Outlets.
In order to address the problem associated with relationship existing between the private
hawkers and the un-serviced outlets, it can be done by having a fruitful conversation in
with the un-serviced outlets to differentiate the cigarette business to the DS and the other
Non-ITC product business with the private hawker. The conversation can end up by
providing certain benefits in order to convert them.

CONCLUSION
As per the analysis and findings carried out throughout the project the majority of
the un-serviced outlets are the ones who are doing the business in a low quantity
and therefore they face the problem with cash and carry system of the DS.
As per the graph’s mentioned above in page no-10 and 11 indicates that the
diversification of un-serviced outlets are majorly available in the areas of
Udaygiri and Bogadi, Here Udaygiri basically consists of large number of
wholesale outlets which provides a time frame for the collection from the un-
serviced outlets, The area of Bogadi lies in the outskirts of the city thus the
number of private hawkers are considered to be higher and in order to control the
number of private hawkers, We converted the private hawkers serving the
respective market
The percentage of un-serviced outlets under both the WD’s constitutes for 8.85%
and we were able to reduce to the percentage to about 4.42% during the process of
the internship by converting the un-serviced outlets and the respective private
hawkers of the region
In order to further make large number of outlets serviceable the WD’s needs to
come up with certain schemes which would be beneficial to the outlets and also
could start up a business with the DS of the respective areas.

CONVERTED OUTLETS AREAWISE
SL
N
o Converted Outlets Private Hawker/WS Area DS
1 Lokesh Tea Stall Wholesale Padvarhalli Fayaz
2 Manjunath Store Wholesale Padvarhalli Fayaz
3 Kumar Tea Stall Wholesale Padvarhalli Fayaz
4 Lingaraj Tea Stall Wholesale Padvarhalli Fayaz
5 Coffee Bar Private Hawker Padvarhalli Fayaz
6 Arun Tea Shop PH(Veelu) Bannimantap Nazir
7 Kkiran Tea Stall PH(Veelu) Bannimantap Nazir
8 Siddique Tea Stall PH(Veelu) Bannimantap Nazir
9 Sri Gajanna Tea Stall PH(Veelu) Bannimantap Nazir
10 K P Store Wholesale N R Mall Athique
11 Sayad Bakery Wholesale N R Mall Athique
12 Fayaz Tea Stall Wholesale N R Mall Athique
13 Lakshmi Pan Shop Wholesale N R Mall Athique
14 Bahavani Store Wholesale Rajivnagar Mumtaz
15 Tammana Store Wholesale Rajivnagar Mumtaz
16 Bireshwara Store Wholesale Rajivnagar Mumtaz
17 Lokesh Tea Stall Wholesale Padvarhalli Fayaz
18 Chandramma Pan Shop Wholesale Padvarhalli Fayaz
19 Coffee Bar
Veerbhadregowda(P
H) Padvarhalli Fayaz
20 Chaluvarayswamy Stoe Lokesh(PH) Padvarhalli Fayaz
21 Shivanna Store Lokesh(PH) Padvarhalli Fayaz
22 Vijay Kumar Tea Stall Lokesh(PH) Padvarhalli Fayaz
23 Mahendra Pan Shop Lokesh(PH) Padvarhalli Fayaz
24 Narayan Pan Shop Lokesh(PH) Padvarhalli Fayaz
25 Nandini Milk Parlour Wholesale Padvarhalli Fayaz
26 Naganna Pan Shop Wholesale Padvarhalli Fayaz
27 Krishna Pan Shop Wholesale Koorghalli Saleem
28 Ramesh Pan Shop Nagaraj Hinkal(PH) Koorghalli Saleem
29 Rchandra Store Nagaraj Hinkal(PH) Koorghalli Saleem
30 Lakshmi Bangal Store Nagaraj Hinkal(PH) Koorghalli Saleem
31 Tea Shop Masood((PH) Udaygiri Shekar
32 Tea Shop Masood((PH) Udaygiri Shekar
33 Ya alla Tea Stall Wholesale Udaygiri Shekar
34 AMK Tea Stall Wholesale Udaygiri Shekar
35 ARN Tea Stall Wholesale Udaygiri Shekar
36 Tea Shop Wholesale Udaygiri Shekar

37 Sri Gajanna Tea Stall
Veerbhadregowda(P
H)
Bogadi,Uttagall
i Manjunath
38 Sri Gargeshwara Bakery
Veerbhadregowda(P
H)
Bogadi,Uttagall
i Manjunath
39 Vinayaka Store
Veerbhadregowda(P
H)
Bogadi,Uttagall
i Manjunath
40 Bhagyalakshmi Store
Veerbhadregowda(P
H)
Bogadi,Uttagall
i Manjunath
41 Chamundeshwari Stores
Veerbhadregowda(P
H)
Bogadi,Uttagall
i Manjunath
42 Tea Stall Nagaraj Hinkal(PH)
Bogadi,Uttagall
i Manjunath
43 Priyadarshini Pan Shop
Veerbhadregowda(P
H)
Bogadi,Uttagall
i Manjunath
44 Hassan Iyengar's Bakery
Veerbhadregowda(P
H)
Bogadi,Uttagall
i Manjunath
45 Grape Corner
Veerbhadregowda(P
H)
Bogadi,Uttagall
i Manjunath
46 Lakshmi Stores Wholesale
Bogadi,Uttagall
i Manjunath
47 Lakshmi Departmental Store
Veerbhadregowda(P
H)
Bogadi,Uttagall
i Manjunath
48 Lakshmi Provision Store Gangaraj(PH)
Bogadi,Uttagall
i Manjunath
49 Manjunath Store Masood((PH) Udaygiri Shekar
50 ARN Cool Parlour Masood((PH) Udaygiri Shekar
51 Chowdeshwari Tea Stall Wholesale Udaygiri Shekar
52 Bismilla Tea Stall Wholesale Udaygiri Shekar
53 A N Tea Stall Wholesale Udaygiri Shekar
54 Ya Allah Tea Stall Wholesale Udaygiri Shekar
55 Sanid Provision Store Wholesale Udaygiri Shekar
56 Parshan Store Masood((PH) Udaygiri Shekar
57 Jyothi Store Wholesale Udaygiri Shekar
58 Friends Cool Corner Wholesale Udaygiri Shekar
59 Mysore Tea Stall Wholesale Udaygiri Shekar
60 Chamundeshwari Store Wholesale Basavangudi Shaukat
61 Amal Provision Store Wholesale Basavangudi Shaukat
62 Lakshmidevi Store Wholesale Basavangudi Shaukat
63 Dhanlakshmi Store Wholesale Basavangudi Shaukat
64 Ramdev Tea Stall Wholesale Basavangudi Shaukat
65 Chamundeshwari Tea Stall Wholesale Basavangudi Shaukat
66 Raja Ram Tea Stall Wholesaler VVET Lingaraj
67 Sri Chamundeshwari Store Wholesaler VVET Lingaraj

68 Bhavani Tea Stall Wholesaler VVET Lingaraj
69 Chaitra Cool Wholesaler VVET Lingaraj
70 Sri Santosh Tea Stall Wholesaler Kuvempunagar R Kumar
71 Kanamma Nilaya Shop Wholesaler Kuvempunagar R Kumar
72 Mahalakshmi Tea Stall Private Hawker Kuvempunagar R Kumar
73 Friends Tea Stall Wholesaler Kuvempunagar R Kumar
74 Divya Store Wholesaler Kuvempunagar R Kumar
75 Chandru Pan Shop Wholesaler Kuvempunagar R Kumar
76 Laxmamma Bangle Shop Private Hawker Kuvempunagar R Kumar
77 Nandana Store Wholesaler Kuvempunagar R Kumar
78 Abhiman Tea Stall Wholesaler Kuvempunagar R Kumar
79 Rajappa Pan Shop Wholesaler Kuvempunagar R Kumar
80 Devaya Hundi Store Wholesaler Kuvempunagar R Kumar
81 Ganesh Provision Store Wholesaler Kuvempunagar R Kumar
82 Aishwarya Provision Store Wholesaler Kuvempunagar R Kumar
83 Aishwarya Sores Nagaraj(PH)
Parsyn
Hundi,Srirampu
r Nagaraj
84 Sri Mahadeshwara Store Shivlingaswami(PH)
Parsyn
Hundi,Srirampu
r Nagaraj
85 Nandini Tea Stall Wholesaler
Parsyn
Hundi,Srirampu
r Nagaraj
86 Chamundeshwari Store Wholesaler
Parsyn
Hundi,Srirampu
r Nagaraj
87 Mataji Tea Stall Wholesaler Sarawatipuram
Ramaswam
y
88 Srinivasa Store Wholesaler Sarawatipuram
Ramaswam
y
89 Manju Entreprises Wholesaler Sarawatipuram
Ramaswam
y
90 Yuvkar Sangh pan Shop Ravi(PH) Sarawatipuram
Ramaswam
y
91 Siri Nandini Ravi(PH) Sarawatipuram
Ramaswam
y
92 Ashwini Bar Ravi(PH) Sarawatipuram
Ramaswam
y
93 Modern Cafetaria Wholesale Ashok Road Gajanana
94 Deepa Darshini Wholesale Ashok Road Gajanana
95 KK Bar and Restaurant Pan Shop Wholesale Ashok Road Gajanana

Blue Color indicates converted Private Salesmen
APPENDICES
Total number of Stores Visited -2300
Total Un-serviced Outlets found-200
Sample Considered-200
Savitha Sales Corporation-140
Ganesh Associates-60

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