This document provides an overview of ITC Limited, an Indian conglomerate company. It discusses ITC's business divisions, vision, mission and diversified product categories. It then outlines the objectives and problems in ITC's sales and distribution management. Specifically, it notes a lack of training for distributors' salesmen and inefficient sales strategies have led to issues like poor product recall and low motivation among sales staff. The document further details ITC's sales hierarchy, recruitment process, training programs, compensation structure and performance evaluations. It maps out ITC's distribution channels and provides recommendations to improve sales management, such as enhancing training and incentivizing adding new outlets.

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By: Group 11 (DoMS, IIT Roorkee)
Saurabh Paul 12810073
Saurav Kumar 12810074
Shailendra Shankar Gautam 12810075
Sharad Srivastava 12810076

2. Company Profile:
ITC was established on August 24, 1910
Indian public conglomerate company headquartered in Kolkata,
West Bengal, India
ITC's gross revenue for FY2013 stood at Rs. 43044 crores and
market capitalization of Rs. 244245 crores
The company is currently headed by Yogesh Chander Deveshwar
(Chairman)
It employs over 25,959 people (as on 31st March 2013) at more
than 60 locations across India.
Among India's Most Valuable Companies by Business Today.
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3. About ITC Ltd. (Contd.)
Vision
• 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.)
FMCG
Hotels
Agri-
Business
Packaging
Paper
Boards
IT
Diversified Product Categories:
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5. Objective
To create, communicate and deliver superior value to
consumer though effective sales and distribution
management.
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6. Problem Statement
Causes:
– Lack of proper training to distributor’s salesmen.
– Poor Infrastructural support (TPS software not updated on regular
basis).
– Inefficient sales strategy (territory allotted to salesmen doesn’t
consider sales potential of region).
Effect:
– Problem of product recall by salesmen.
– More focus on sales target rather than business expansion. (Salesman
focuses more on large outlets which purchases in large volume).
– Poor level of motivation among sales staff.
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7. Context
Time Context: 2010
Viewpoint: Y C Deveshwar
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8. Background
Sales Management means “the planning, direction, and control
of personal selling including recruiting, selecting, equipping,
assigning, routing, supervising, paying and motivating as
these tasks apply to personal salesforce”. – American
Marketing Association
• The objectives of sales management are sales volume,
contribution to profit and continuing growth.
“We … recognize that selling only works when everything is
right for the customer—when we deliver value.”
– Rick Makos (President, NCR-Canada)
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9. Strength
 Strong brand recognition
 Experienced Management
 Diversified Product Portfolio
 Well established distribution network
Weakness
 Dependence on tobacco revenues
 Negative Connection of Tobacco
 Low export levels
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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10. Presence of ITC Ltd..
NORTH
Division
EAST
Division
SOUTH
Division
WEST
Division
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11. Sales Hierarchy of ITC
Sales Trainee
Area Executive
Area Manager
Assistant Manager
Branch Manager
Regional Branch Manager
Division Manager
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12. Recruitment
• Assistant under Training (AUT)Top 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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13. 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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14. Training and Development
Induction
Training
On Job
Training
Internal
Training
Competency
Development
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15. Training and Development
(Contd.)
Sales Trainee
Duration: 1 week
Place: HO
Induction Training:
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16. 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: 3
days
On Job Training:
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17. Training and Development
(Contd.)
For Sales
Trainee and AUT
Duration: 1
month
In Branch office
Internal
Training:
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18. Branch Manager
recommends AE and AM
for training
Location: Head Office
Duration: 6 Days
Training and Development
(Contd.)
Competency Training:
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19. Compensation (Contd.)
Position CTC (in Rs. 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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20. 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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21. STAR WARS:
Quiz
Motivation
Updated
Performance evaluation of
sales personnel
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22. Wholesale Distributor (WD)
WD
Salesmen Supervisors Delivery Boy
Driver/
Thelawala
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23. 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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24. 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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25. 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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26. 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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28. Distribution Channel
FACTORY
CNF
WHOLESALE
DISTRIBUTOR
WHOLESALE
DEALER BASE
RETAILER
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29. Channel Type
Company
Wholesale
Distributor
Wholesaler Retailers Consumer
Company
Wholesale
Distributor
Wholesaler Consumer
Company Wholesale
Distributor
Retailers Consumer
2 -level Distribution Channel:
3-level Distribution Channel:
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30. Distribution Type
Exclusive (Textile)
Selective (Paper
Boards & Cigarettes)
Intense (Other
FMCG Products)
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31. Physical Distribution/Logistic
Mother
Hub/Factory
Warehouse Service
Provider
WD Godowns
Outlets
Central
Warehouse
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32. Effective Working of Channel
Members
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Performance is measured on
following broad parameters:
Distribution Health
(Outlet coverage,
availability, visibility
levels, etc)
Business Health (Sales
Performance
benchmarked to
relevant Circle)

33. 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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34. Essentials Check Bands Follow up action
Not Qualified Non Performing Replace
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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35. Alternate Choices
• Change in salesforce structure
• Improvement in sales management
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36. Improve Management
• Proper training should be provided to salesmen.
• Salesmen should be regularly informed about the changing offers and
schemes on the products.
• 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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37. Thank You
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