This document provides information about ITC Limited, an Indian conglomerate company. It discusses ITC's establishment, annual turnover, market capitalization, leadership, employees, and diversified product categories including food, personal care, cigarettes, and paper boards. The document also outlines ITC's vision to sustain its position as one of India's most valuable corporations, its mission to enhance wealth generation, and details its sales and distribution structure including recruitment, training, compensation, performance evaluation and its distribution channel.

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2. Company Profile:
ITC was established on August 24, 1910
Indian public conglomerate company
headquartered in Kolkata, West Bengal, India
ITC's annual turnover stood at $7 billion and
market capitalization of over $34 billion
The company is currently headed by Yogesh
Chander Deveshwar (CEO)
It employs over 29,000 people at more than 60
locations across India and is listed on Forbes 2000
ITC Limited completed 100 years on 24th August
2010
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3. About ITC Ltd. (Contd.)
Vision
• To sustain ITC’s position
as one of India’s most
valuable corporations
through world-class
performance, creating
growing value for the
Indian economy and the
Company’s stakeholders
Mission
• To enhance the wealth
generating capability of
the enterprise in a
globalising
environment, delivering
superior and
sustainable stakeholder
value
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4. About ITC Ltd. (Contd.)
Food
( GR 1)
Personal
Care
(GR 2)
Cigarettes
( GR 3)
Bingo
(GR 4)
Paper
Boards
(GR 5)
Diversified Product Categories:
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5. 1. To make in depth study of recruitment process of sales
personnel; their training and development;
compensation, evaluation & control by the company
2. Develop proper insight about distribution management
involving channel member selection; effective working;
monitoring and control of logistics and channel strategy
3. To compare the service of competitors with that of ITC
4. To identify the problem in sales effort, sales
administration and sales and distribution management
strategy developed of the company
5. Suggest the proper solution for the inefficiencies and
inaccuracy found in the process
Objectives of the study
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6. Methodology followed:-
1. Secondary Data ( Research Papers and companies websites)
• literature review of existing research papers on different aspects sales and
distribution
• Finding the factors which improve the sales efficiency if sales force
• Identifying the ways for designing effective distribution channel
2. Primary Data(Interview of company’s sales official and retail survey)
Methodology followed:-
a. Structured Interview of company’s sales officials
b. Survey of retailers
Research tool
• Questionnaire
• Onsite observation
Sampling method: Convenient sampling
Sample size: 100 retail outlets
Analysis tool: M S Excel-2007
Approach for study
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7. Literature Review
• Specific training of sales people enhances their
performance and produces customer-oriented
selling
• In different circumstances firms might choose an
appropriate distribution flexibility strategy which
fits with their distribution environment
• Incentives motivates sales people to perform more
effectively
• Many companies today are trying to identify
innovative compensation strategies that are directly
linked to improving organizational performance
• Evaluating the performance of sales territories
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8. Strength
Strong brand recognition and product
portfolio
Experienced Management
 Diversified Product Portfolio
Established Research & Development
Global market reach
Well established distribution network
Weakness
Dependence on tobacco revenues
 Negative Connection of Tobacco
Low export levels
Brand Proliferation
Opportunity
Low per capita consumption of personal
care products
 Untapped rural Market
Collaboration with foreign players
e-retailing
Threat
Competition both Domestic &
International
Ban on smoking
Competition from unbranded products
High competition from established
companies
SWOT Analysis
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9. INTERVIEW
OUTCOME
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10. Presence of ITC Ltd..
North
(NDO)
East
(EDO)
South
(SDO)
West
(WDO)
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11. EDO Branches
Patna
Bhubaneswar
Visakhapatnam Kolkata
Guwahati
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12. Sales Hierarchy of ITC
Sales Trainee
Area Executive
Area Manager
Assistant Manager
Branch Manager
Regional Branch Manager
District Manager
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13. Recruitment
• Assistant under TraineeTop B- Schools
• Sales Trainee
Other
B- schools
• Lateral Recruitment (for the
post of AE) by BM and
HRM
Employee
References and
Consultancy
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14. Level 5
Quality of hire
Level 4
Level 3
Level 2
Recruitment (Contd.)
Written Test - 3 sections. Total of
55 questions. Numerical -
15, Analytical - 20, Verbal - 20
questions.
Group Discussions / Business
Plan Competition
Interview round 1st Round
Level 1
CV Short listing
Interview round 2
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15. Training and Development
Induction
Training
On Job
Training
Internal
Training
Competency
Development
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16. Training and Development
(Contd.)
Sales Trainee
Duration: 1
week
Place: HO
Induction Training:
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17. Training and Development
(Contd.)
Process
Training
Through
NIS
New Sales
Personnel
On Job
Training
Distributor’s
Sales Person &
Supervisor
Top
distributors
3 Salesman are
selected
New Entrant
(S. Trainee &
AUT)
Duration:
3days
On Job Training:
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18. Training and Development
(Contd.)
For Sales
Trainee and
AUT
Duration: 1
month
In Branch
office
Internal
Training:
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19. Branch Manager
recommends AE and
AM for training
Location: Head Office
Duration: 6 Days
Training and Development
(Contd.)
Competency Training:
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20. Compensation (Contd.)
Position CTC (in Lakhs
annually)
Variable
Branch Manager 18 - 20 20% of CTC
Assistant Manager 12 - 14 20% of CTC
Area Manager 8 - 8.5 20% 0f CTC
Area Executive 5.5 - 6.5 20% of CTC
Sales Trainee 2.5 - 2.6 20% of CTC
Variable salary is decided on the basis of performance
and target met by sales personnel
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21. Performance evaluation of sales
personnel
•Monthly Sales Target
•Visibility Target
Monthly
Target
•Sales Volume for each
product category
•Market share growth rate
Performance
of the branch
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22. STAR WARS:
Quiz
Motivation
Updated
Performance evaluation of
sales personnel
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23. Wholesale Distributor (WD)
WD
Salesmen
(Salary: 5-6
K)
Supervisor
s
(Salary:
8K)
Delivery
Boy
(Salary: 2.5-
4K)
Driver/
Thelawala
(Salary: 3.5-
4k)
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24. WD employees: Recruitment
and Compensation
• Their fixed salary is paid by the distributor
but is reimbursed by the company
• The variable salary of salesmen is decided
on his meeting of sales target
Recruitment:
The salespersons of distributors are
appointed by the distributor himself in
consultation with ITC officials
Compensation:
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25. Salesmen Evaluation and Compensation
• The compensation received by
salesmen depends upon the target
achieved by them
• Targets under consideration:
1. Monthly sales target
2. Product wise sales target
3. Category wise
WD employees: Recruitment
and Compensation
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26. Control mechanism:
• The performance and work of WD employees is
evaluated by company’s officials weekly
• Their daily sales order is monitored by Area
Executive
• The salesmen is given a geographical territory
which doesn’t consider sales potential
• Salesmen has to cover 30 outlets each day
• They are given a beat plan for each day
• If a WD employee is not performing then the
company can sack him
WD employees: Recruitment and
Compensation
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27. Role of Salesmen:
• Prospecting- Searching for new outlets
• Targeting- Visiting potential outlets
• Communicating- Informing about products and offers
• An order taker- As per requirement in retail and
convenience outlet
• Selling to retailers and convenience outlet
• Servicing- Removal of
damaged/expired(DND)products
• Information gathering- About needs/ preferences of
customers
• Allocating- Fixed time to each outlets
• Cash collection
WD employees: Recruitment and
Compensation
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29. Distribution Channel
FACTORY
CNF
WHOLESALE
DISTRIBUTOR
WHOLESALE
DEALER BASE
RETAILER
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30. Channel Type
Company
Wholesale
Distributor
Wholesaler Retailers
Consume
r
Company
Wholesale
Distributor
Wholesaler Consumer
Company Wholesale
Distributor
Retailers Consumer
2 -level Distribution Channel:
3-level Distribution Channel:
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31. Distribution Type
Exclusive (Textile)
Selective (Paper
Boards & Cigarettes)
Intense (Other
FMCG Products)
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32. Physical Distribution/Logistic
Mother
Hub/Factory
Warehouse Service
Provider
WD Godowns
Outlets
Central
Warehouse
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33. Effective Working of Channel
Members
Business Area wise Evaluation Percentage
1. Convenience 25
2. Grocery 1/3 25
3. Grocery 2 25
4. WD system & Processes 25
Performance is measured on following broad parameters:
1.) Distribution Health (Outlet coverage, availability, visibility levels,
etc)
2.) Business Health (Sales Performance benchmarked to relevant Circle)
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34. Effective Working of Channel
Members (Contd.)
Score card for Measurement of WD Performance:
Bands Score
Platinum > 95%
Gold 85-95%
Silver 80-85%
Bronze Star 75-80%
Bronze 60-65%
Non Performing < 60%
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35. Essentials Check Bands Follow up action
Not Qualified Non Performing Replace with NSA
Not Qualified Bronze On Notice
Not Qualified Bronze Star/ Silver On Notice
BM to revert with follow
up plan
Qualified Non Performing On Notice
Qualified Bronze On Notice
Time bound action plan
Qualified Bronze Star/ Silver Encouragement for
further improvement
Actionable basis for WD evaluation:
Effective Working of Channel
Members (Contd.)
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36. RETAIL SURVEY
OUTCOME
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37. Companies rated best in service
by retailers
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
HUL P&G Britannia ITC Pepsico Parle Nestle
43%
18%
7%
5%
7% 6%
14%
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38. Retailer’s reson for purchase from
stockist’s
65%
35%
Easy access Attractive schemes
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39. Salesperson conveying about the
products, rates and schemes correctly
78%
22%
Yes No
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40. Problems in Sales and
Distribution system at ITC
• Lack of proper training to distributor’s salesmen
• Territory allotted to salesmen doesn’t consider the
sales potential of the areas
• Salesmen hides offers from retailers in ready stock
sale model
• Problem of product recall by salesmen
• Salesmen focuses more on large outlets which
purchase in large volume
• Billing of new outlets done on the name of other
existing outlets
• All the SKU of a product are not brought in the
market at a time
• TPS (Sify software) is not updated regularly
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41. Solutions
• Proper training should be provided to salesmen
• Salesmen should be regularly informed about the changing
offers and schemes on the products
• An apparel containing detail of offers should be given to
salesman for ready stock sales
• Apparel should be provided to salesmen to enhance brand
awareness
• Territory allotted to salesmen should consider the sales
potential and concentration of outlets in that area
• Salesmen should be provided incentive for adding new
outlets
• TPS should be updated regularly to show current stock details
• The incentive of the salesmen should be based on the number
of outlets served by them too rather than merely on sales
volume
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42. References
• Sergio Román, Salvador Ruiz, José Luis Munuera, (2002) "The
effects of sales training
• Kangkang Yu, Jack Cadeaux, Hua Song, (2012) "Alternative
forms of fit in distribution flexibility strategies", International
Journal of Operations & Production Management, Vol. 32 Iss:
10
• Andrew Napier, (1986) "Incentives — A Vector of Improved
Sales Performance?", European Journal of Marketing, Vol. 20
Iss: 6, pp.36 – 51
• Steven H. Appelbaum, Loring Mackenzie, (1996)
"Compensation in the year 2000: pay for performance?”
Health Manpower Management, Vol. 22 Iss: 3, pp.31 - 39
• Journal of Marketing; Jan1972, Vol. 36 Issue 1, p31-37, 7p
• www.itcportal.com
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