Study of cdm in fmcg sector

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Study of cdm in fmcg sector

  1. 1. Vikramaditya Singh srmistvikram@gmail.com Summer Internship Report I T C L i m i t e d I T C L t d , 1 s t F l o o r , I n d i a n M e r c a n t i l e C h a m b e r s R . K a m a n i M a r g , B a l l a r d E s t a t e , F o r t , M u m b a i - 4 0 0 0 0 1 7 / 8 / 2 0 1 3 Vikramaditya Singh [2013] An Analysis of Sales & Distribution of ITC FMCG Products on Convenience Delivery Model.
  2. 2. Contents Executive Summary....................................................................................................................................2 Overview of Bingo......................................................................................................................................3 Bingo! Yumitos - 'Take a Yumitos Break'....................................................................................................3 Bingo! Mad Angles - "Har Angle se Mmmm..."..........................................................................................4 Bingo! Tedhe Medhe - "Har Stick mein alag twist...".................................................................................4 Bingo! Tangles - "Khaoge to Khilaoge..."....................................................................................................5 Scope of the Project...................................................................................................................................9 Problem Statement....................................................................................................................................9 Research Methodology..............................................................................................................................9 Findings & Observations ..........................................................................................................................10 Warehouse Distribution Point .................................................................................................................12 Issues Observed .......................................................................................................................................12 Suggestions ..............................................................................................................................................12 Retailers ...................................................................................................................................................13 Issues Observed .......................................................................................................................................13 Suggestions ..............................................................................................................................................13 Distributor Salesman................................................................................................................................14 Issues........................................................................................................................................................14 Suggestions ..............................................................................................................................................14 Appendix 1: Competition Landscape...............................................................................16 Appendix 2: Cash Flow Cycle....................................................................................................................17 Appendix 3: Total Sales Breakdown ................................................................................18 Appendix 4: Salesperson wise Sales Breakdown .....................................................................................19 Appendix 5: Various SKU sales data (INR) .......................................................................48 Appendix 6: DSS Rating for FMCG Sales ..........................................................................50 DSS rating according to FMCG sales on CDM day: ..........................................................50 Appendix 7: DSS Rating for Bingo Sales ...................................................................................................53 Bingo Sales Wise DSS performance all data in INR:.........................................................53 Acknowledgements .........................................................................................................56
  3. 3. Executive Summary In the world where only permanent thing is “Change”. The market for every FMCG is evolving at a nanosecond pace. Markets for different product categories have become highly competitive. In such dynamic and competitive market conditions, it is indispensable for companies to remain in breast with their Supply Chain. With this importance in consideration, I have been assigned to study the Sales & Distribution of ITC FMCG products. The project is conducted for ITC Mumbai under the mentorship of Mr. Kiran Churi. The main objectives of this project are:-  Understand the Sales and Distribution on CDM for various FMCG products  Study the “ITC Distribution Ecosystem” and understand the dynamics among key players- Sales distributors, Supervisors and Retailers  Measure Sales performance & Cash flow Cycle of Sales Distributors  Measure and Increase the sales of product “Bingo  Study the competition landscape  Find out preferences, quality, taste, and awareness of ITC FMCG products along with satisfaction level at retailers’ end One of the primary objectives of the report is to understand ITC’s distribution ecosystem. To achieve this objective, I have conducted a market survey in 25 different locations in Mumbai city. I accompanied 30 sales distributors to different retail outlets for a period of 60 days. This exercise provided vital insights to ascertain position, visibility, and availability of ITC FMCG products along with key competition in the market. Other sources like internet, online journals, and company’s financial reports have been used to collect secondary data and support findings from primary data.
  4. 4. The data was collected, analyzed and represented in the form of various facts and figures. Findings and Suggestions are presented in the form of report and presentation to achieve objectives of study. Every project has some limitations and this study is no different. One of the major limitations of this project has been time limit. I was unable to visit manufacturing units of ITC products. Visiting these units could have provided more clarity on manufacturing process, packaging and operations on the supply side of distribution chain. Overview of Bingo Bingo was launched in March 2007 with a wide range of exciting packaged salted snacks. The range includes multiple flavor variants of Potato Chips & Finger Snacks. The brand is associated with youth, fun and excitement. It fulfils the consumers need for variety and novelty in snacks. At present Bingo! has 4 sub-brands in its portfolio, each of which have unique values based on consumer need differentiation. Bingo! Yumitos - 'Take a Yumitos Break' Bingo! Yumitos Potato Chips are the best partner for break. Bingo! Yumitos is very tempting and yummy account the full bodied flavours. These flavors range from traditional favourites like Salted to innovative ones such as Red Chilli. There are in total 7 exciting flavours. Premium Salted International Cream & Onion Red Chilli Bijli
  5. 5. Masala Remix Juicy Tomato Ketchup Fiery Red Tomato Oye Pudina Bingo! Mad Angles - "Har Angle se Mmmm..." One of the biggest successes from the Bingo! Portfolio, Bingo! Mad Angles has carved a niche for itself in the consumers mind and is synonymous with the perfect triangular snack. A combination of innovative flavours on a traditional khakra base, Mad Angles is a snack that is true to taste with perfect flavour delivery as well as shape, making it a snack that's truly "Har Angle se Mmmm ..." Mad Angles Tomato Mischief Mad Angles Chilli Dhamaka Mad Angles Achaari Masti Mad Angles Masti Chaat Bingo! Tedhe Medhe - "Har Stick mein alag twist..." Bingo! Tedhe Medhe is the popular spindle shaped format from Bingo! that is a delicious blend of handpicked spices with an aroma that makes one crave for more. The taste of fiery sparks which masalas leave on ones tongue is an experience with savouring!
  6. 6. Just like no two things in life are the same, Bingo! Tedhe Medhe provides a unique experience to the consumer each time he consumes it from the pack, making him go beyond stereotypes and celebrating the eccentricities in life! Bingo! Tangles - "Khaoge to Khilaoge..." Bingo! Tangles is one of the most innovative snacks available in the market. Each piece of this innovative crunchy snack is made out of strands loaded with lip smacking masala or tantalizing tomato or simply salted flavours. Once bitten, they break into many more delicious strands in the mouth. It is so tasty that you can’t resist sharing it with others. Masala Tangle Bingo! Tedhe Medhe
  7. 7. Figure 1: Wafer Market Share in India Lays 47% Balaji 22% Uncle Chips 10% Bingo 9% Parle 7% Yellow Diamond 5% Wafers Market Share (July'12-Sep'12) All data collected by A C Nielson 2012 report
  8. 8. Figure 2: Bridge Market Share in India Kur Kure 64% Bingo 24% Balaji Chataka Pataka 12% Bridge Market Share (July'12-Sep'12) All data collected by A C Nielson 2012 report
  9. 9. Figure 3: Western Snacks Market Share in India 2009-2010 2010-2011 2011-2012 48 43 40 6 6 5 13 13 11 8 8 9 3 3 5 22 27 30 Western Snacks Market Share Frito Lay India Haldiram Balaji Namkeen ITC Parle Product Others ₹ 138791 Cr ₹ 205591 Cr ₹ 241124 Cr
  10. 10. Scope of the Project  To carry out field work pertaining to Sales and distribution of FMCG products on Convenience Delivery Model (CDM)  To understand & increase the sales of ITC Bingo! Snacks in current operational distribution system on Convenience Delivery Model (CDM) Problem Statement The purpose of this project is to study the Convenience Delivery Model and suggest measures to enhance distribution efficiency and boost sales of ITC FMCG products with special focus on Bingo Research Methodology In this study, primary and secondary research was conducted to provide a holistic view of the problem and to arrive at actionable recommendations. Secondary research was essentially done to learn about ITC as an organization and to understand its FMCG offerings. Additionally, secondary research helped in understanding ITC’s positioning in the market viz a viz competition. The sources of secondary research included official website, blogs and industry articles. Primary research was undertaken in order to understand sales & distribution system of ITC FMCG products on CDM. This was achieved by personally accompanying CDM vehicles and visiting shopkeepers of various routes in Mumbai. Thorough this research, I have been able to study how DSS operate and deliver products to numerous retailers. I have collected feedback from retailers regarding supply and distribution of ITC FMCG products. This feedback has given me insights into retailers’ preferences regarding product display and delivery to the end consumer. This feedback also helped me understand retailers’ issues with respect to ITC products. Furthermore, in order to understand cash flow cycle of distributors, I studied complete cycle of cash movement from the point DSS take orders from retailers to the point retailers pay these DSS for delivery of goods. This has helped me understand
  11. 11. distributors’ challenges in terms of ordering goods, obstacles faced in distribution & complexity of managing cash flow. Findings & Observations By studying the distribution cycle of Star warehouse for a period of 2 months, I observed various challenges that plague current distribution. The diagram below shows a typical day in the Star warehouse.
  12. 12. nhava sheva nhava shev DS reaches STAR WD on average 0f 8-8:15 am Supervisor reaches STAR WD on average 8-8:20 am Four vehicles reach WD on the average of 8:25am. vehicles’ leave for defined route from WD Loading of CDM vehicles’ starts at 8:30 am. On the average one DS take 12 to 15 minutes to load the vehicles . Out of these 15 minutes, an estimated 10 minutes spent on ordering and negotiations All CDM vehicles are loaded & leave the WD by 9:00 am All CDM vehicles’ reach back to WD by an average 0f 4:40 PM Day starts at 8:00 am on STAR WD Day ends at 5:00 pm on STAR WD & daily billing is completed Typical Schedule of Star WD from Monday – Saturday every week
  13. 13. During this study, I have observed multiple challenges in the sales & distribution channel. These challenges have been classified under three major categories:-  Challenges at warehouse distribution point  Challenges faced by distributors  Challenges faced by retailers Warehouse Distribution Point Issues Observed 1. The routes are prefixed. However, it is observed that there are major changes in the route on the day of CDM due to various reasons such as distributor absence, distributor unwillingness to take CDM vehicle or distributor hesitant to take all products 2. Most of the time, various flavors of bingo preferred by the DSS are not available in the warehouse 3. On rainy days, there is heavy water logging which affects productivity of the warehouse. Severe waterlogging can impact even a whole day’s business as had been observed on June 11, 2013 4. Sometimes obstacles at the entrance of the ware house block the way of CDM vehicles and eat away precious 15 minutes in the morning. A prime example of such obstacle is BMC van which blocks the entrance exactly at the same time when CDM vehicles are supposed to depart from the warehouse 5. Currently, Star warehouse has 2 big sized & 2 small sized CDM vehicles. It is observed that DSS often prefer small vehicle resulting in higher lead time 6. Schemes are not clearly communicated to distributors 7. Many DSS have raised theft issue in the warehouse Suggestions 1. All CDM vehicles should reach STAR warehouse at 8:10 AM so that loading can commence from 8:15 AM 2. The designated distributor of CDM route day should be instructed to reach Star at 8:10 AM sharp and immediately place the order for products to be loaded
  14. 14. 3. Supervisor should develop a practice of informing designated CDM DSS for the day to report at the warehouse at assigned time 4. Since smaller vehicles can be easily parked in congested spaces, it is recommended that fleet size of these vehicles be increased 5. Distributor should not be allowed to miss designated CDM day more than once a month 6. In case a Distributor does not take the vehicle on scheduled day, he should inform the Supervisor two days prior to CDM day 7. WD management should ensure that DS carries different flavors of FMCG product 8. There should be a proper display board on the warehouse to display all schemes being offered 9. There should be sufficient number of cameras installed to overcome theft issues 10. Monthly cash incentives should be offered to DSS with highest sale on CDM vehicles. This practice will increase interest in taking CDM vehicle and selling more products 11. Require helper on CDM day to increase visibility & visibility of Bingo. Retailers Issues Observed 1. D&D replacement is a major issue in both biscuit & bingo categories 2. Due to unfriendly packaging, removing a single bingo from ladi becomes difficult and wastes few precious seconds 3. Competitive products such as Lays have higher visibility because their DSS make an extra effort to showcase the product at retailer’s store 4. It is observed that DSS do not deliver the products as per retailer’s preference 5. In comparison with ITC FMCG products, competition offers much more lucrative schemes to retailers. For instance, Balaji provides wafer at INR 3.90 to the retailer. Detailed description of promotions is stated in table xx Suggestions 1. The biggest hurdle in sales of Bingo is faced in D&D replacement. To overcome this issue, I recommend that the DSS should be allowed to replace Bingo on
  15. 15. time on CDM day. He should take count of D&D goods a day before CDM day and carry appropriate number of extra Bingo and biscuits 2. Ladi should be designed in such a manner that the corner of Bingo packets can be stroked out easily. This will reduce the number of D&D goods. This will also help in making Bingo a product of choice for the retailer due to reduced lead time in delivering goods to consumers 3. In confectionary section, it is observed that licks and frooti fun have greater demand. Therefore, DS should carry more of these jars 4. To make sure visibility of bingo on the outlets, helpers should be sent with different DS’s at least once a week to make sure that the racks or the hangers provided by the company should carry bingo to ensure better visibility 5. To increase sales of Bingo, ITC should offer better cash incentives to retailers who sell more than 500 bingo packets a month 6. Providing a check list book with all SKU mentioned to the DSS’s will help in delivering right products to retailers 7. There should be attractive display boards on shops to increase awareness Distributor Salesman Issues 1. ITC currently does not offer any credit schemes to DSS. As a result, DSS face cash flow issues as their money gets stuck on a daily basis 2. ITC does not offer any incentives to DSS’s based on sales performance 3. Delayed D&D replacement is an issue & is one of the main parameters retailers use to stock products 4. There is lack of communication between warehouse management & DSS on schemes 5. There are theft issues in WD when DSS’s bring back left over inventory at the end of CDM day 6. On rainy days, distribution system is badly affected mainly impacting loading & unloading of CDM vehicles Suggestions 1. Practice of DSS’s carrying sufficient number of Bingo hangers is currently missing and therefore should be enforced by ITC
  16. 16. 2. ITC should provide one day credit period to DSS’s for CDM vehicles. To ensure effective implementation of this scheme, ITC can provide credit period on basis of confirmation provided by DSS on the amount of sales he will generate 3. To clearly communicate various active schemes, there should be display boards in the warehouse to educate DSSs on the same 4. ITC should develop a mobile billing application on phone to increase efficiency & therefore translate that into more sales by making DSSs increase their coverage area 5. Providing trays in CDM vehicles to enable DSS to carry goods from vehicles to retailer shop will reduce hassles & save transit time 6. Conducting frequent trainings for DSSs to encourage them to adopt ways of reducing distribution time & utilize the saved time
  17. 17. Appendix Appendix 1: Competition Landscape SKU Competitor Scheme by Competitor to retailers ITC Scheme to retailers Comments Biscuit Britannia 6 pack 3 Pieces free No scheme under biscuit category 1 Box 6 Pieces free No scheme under biscuit category Parle 1 packet free with 24 pieces No scheme under biscuit category Cadbury Offer 5/- perk with 15/- oreo No scheme under biscuit category Match Box Bell Same margin Same margin Bell use wax strap this is more demand among the buyer Wafer Balaji Per piece 3.90/- Per piece 4.45/- Lays Per piece 4.25/- Per piece 4.45/- Lays levy VAT of only5 % to retailers Masala Munch For 45 pieces 2 free Per piece 4.45/-Per piece 3.97 Puff Yummy Cheese Per piece 3.97 Per piece 4.45/- Masala Munch Per Piece 3.97 Per piece 4.45/- Confectionary Parle One parle g biscuit free One ball pen free with minto gol
  18. 18. Appendix 2: Cash Flow Cycle 1. DSS gets billed everyday on the end of day. 2. Cigarette payment on average gets 99.5% paid to DSS by retailer on the same day. 3. In FMCG products the cash flow cycle differs for different SKU. Below table will get a clear picture of the cash flow cycle of FMCG products: FMCG Products Average Payment Cycle of Different SKU Cash on same date in % Due Money for 3 days in % Due Money more than 3 days in % Bingo 70 25 5 Biscuit 93 6 1 Confectionery 95 4 1 Match Box 98 2 0 Soaps 50 10 40 Noodles 90 8 2 In-cense sticks 60 15 25
  19. 19. Appendix 3: Total Sales Breakdown Day Route Sales Data (INR) Total Sales with cigarette FMCG Sales FMCG Sales % 1 Dadar East 90403 12491.4 14% 2 Dadar- Mahim 53141 5645 11% 3 Mahim 60601 9170 15% 4 Dharavi East 33198.3 9779.3 29% 5 Matunga Road 41334 12996.35 31% 6 Parel Village - Lalbaugh 48779 11621 24% 7 Dadar( Shiv Sena Bhavan) 90403 10491.5 12% 8 Parel( KEM Hospital) 59988 9743 16% 9 Matunga East- King Circle 66443.7 9464.84 14% 10 Worli 72974.5 7576.5 10% 11 Sewri 33245.5 10031.76 30% 12 Dharavi 51695.04 9208.8 18% 13 Matunga East 66386 8098 12% 14 Parel 44544 14215.6 32% 15 Tata Hospital Parel 70081.4 10724.4 15% 16 Mahim 72543.6 11343.6 16% 17 Mahim East 67449 26242 39% 18 Lalbaugh- Parel 60722 9534 16% 19 Worli - Prabha DEVI 68179.6 7539.6 11% 20 Dadar - Prabha DEVI 70643 10003 14% 21 Parel village 57953.4 13450.4 23% 22 Mahim 66972 10336 15% 23 Mahim East 80578.4 14288.4 18% 24 King Circle 61484 8995 15% 25 Worli- Prabha devi 76052 10223 13% 26 Lower Parel 53383.8 9879.4 19% 27 Tata Hospital-Bhoivada 74036.8 11036.8 15% 28 Wadala- Antop hill 72007.4 8018.4 11% 29 Wadala (Ram Mandir) 62668 7568.88 12%
  20. 20. Appendix 4: Salesperson wise Sales Breakdown DSS Surjeet Specification Area Dadar East Outlets 23 Handlers 12 Sales Data( INR) Total Sales with Cigarettes 90403 Biscuit 5985 Jar 1290 Bingo 3746.4 Match Box 1470 Noodles 0 Soaps 0 FMCG Sales 12491.4 Field Observation: 1. Total shops closed= 6 2. Retailers complain on display payment. 3. FMCG category- Out of Total sales, comprises biscuits maximum share of 48%, followed by bingo 30% , matchboxes 12%, jar 10% 4. Most of the shop keepers do the payment on credit basis in this area. 5. Total RA shops - 3 6. Industry Type shops- 7 7. Shubhas café is one of the largest retailer of Bingo in this area
  21. 21. DSS R P Singh Specification Area Dadar – Mahim Outlets 26 Handlers 12 Sales Data( INR) Total Sales with Cigarettes 53141 Biscuit 2145 Jar 990 Bingo 1745.6 Match Box 765 Noodles 0 Soaps 0 FMCG Sales 5645 Field Observation: 1. Total shops closed= 8 2. Not taking enough stock due to LBT bandh. 3. FMCG category- Out of Total sales, biscuits comprises maximum share of 38%, followed by bingo 31% ,matchboxes 14%, Jar7%. 4. Retailers complain on packaging of Bingo- Inconvenience is observed in taking out individual units 5. Total RA shops-0 6. Industry Type shops-6 7. Small retailer in terms of bingo purchases in between 50 to 70 bingo. Maharashtra PCO, Kaushal Tea, B K Shop.
  22. 22. DSS Sitaram Specification Area Mahim Outlets 26 Handlers 11 Sales Data( INR) Total Sales with Cigarettes 60601 Biscuit 5940 Jar 1220 Bingo 1230.9 Match Box 780 Noodles 0 Soaps 0 FMCG Sales 9170 Field Observation: 1. Demand for the licks and natkaht mango. 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 65%, followed by bingo 13% ,Jar 13%,matchboxes 9%. 3. Some of the shopkeepers prefer buying from Kamat wholesaler. 4. Bell match box was having more presence. 5. No display of FMCG products at any shop. 6. Total RA shops- 4 7. Industry Type shops- 7 8. Big retailers of bingo in this area Shreyas Foundation, China Corner Pan shop, Janta Pan Shop
  23. 23. DSS S P Gupta Specification Area Matunga Road Outlets 16 Handlers 6 Sales Data( INR) Total Sales with Cigarettes 41334 Biscuit 9387 Jar 0 Bingo 1498.5 Match Box 1470 Noodles 640.8 Soaps 0 FMCG Sales 12996.35 Field Observation: 1. Total shops closed= 9 2. Less buyers due to summer vacations 3. FMCG category- Out of Total sales, biscuits comprises maximum share of 72%, followed by bingo 12%,matchboxes 11%., noodles 5% 4. Total RA shops- 1 5. Industry Type shops- 5 6. Some of the biggest retailers in the area are Katil Pan Shop , Ratnagiri shop.
  24. 24. DSS Sharma(Ambernath) Specification Area Parel village-lalbaugh Outlets 23 Handlers 12 Sales Data( INR) Total Sales with Cigarettes 48779 Biscuit 6905 Jar 440 Bingo 2996 Match Box 510 Noodles 770 Soaps 0 FMCG Sales 11621 Field Observation: 1. Total shops closed= 4 2. Display regarding complains. 3. Balaji waffers are more popular. 4. FMCG category- Out of Total sales, biscuits comprises maximum share of 59%, followed by bingo 26% ,Noddle's 7%,matchboxes & jar 4%. 5. Some shopkeepers have issue of obsolete product replacement. 6. Total RA shops- 7. Industry Type shops- 8. Sai Kripa Bidi shop , Panchal Pan shop, Ramesh pan shop, Shubhak corner, Ganesh general store are big bingo retailer in this area.
  25. 25. DSS S P Pandey Specification Area Dadar (Shiva Sena Bhavan) Outlets 23 Handlers 12 Sales Data( INR) Total Sales with Cigarettes 90403 Biscuit 3985 Jar 1290 Bingo 3746.4 Match Box 1470 Noodles 0 Soaps 0 FMCG Sales 10491.5 Field Observation: 1. Total shops closed= 6 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 38%, followed by bingo 36%,matchboxes 14 % & jar 12%, 3. Licks in demand but no stock available. 4. Total RA shops - 4 5. Industry Type shops- 6 6. Some of the biggest retailers in the area are sunflower bidi shop, Sai kripa general store
  26. 26. DSS S R Gupta Specification Area Parel( KEM Hospital) Outlets 26 Handlers 11 Sales Data( INR) Total Sales with Cigarettes 59988 Biscuit 7464.5 Confectionary 0 Bingo 1498 Match Box 780 Noodles 0 Soaps 0 FMCG Sales 9743 Field Observation: 1. Total shops closed= 3 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 77%, followed by Bingo 15% & matchboxes 8% 3. Small Biscuits of Rs 5 were more in demand. Chocolate flavor is most preferred 4. Retailers complain on packaging of Bingo- Inconvenience is observed in taking out individual units out of batch. 5. Retailers expect better scheme on wafers. 6. Total RA shops- 3 7. Industry Type shops-6 8. Not much sale of bingo in this area. Some of the potential retailers Shettye Bidi Shop, Shri Sai general store.
  27. 27. DSS Satya Specification Area Matunga Outlets 26 Handlers 12 Sales Data( INR) Total Sales with Cigarettes 66443.7 Biscuit 5109 Jar 0 Bingo 2247.84 Match Box 1470 Noodles 162 Soaps 476 FMCG Sales 9464.84 Field Observation: 1. Total shops closed= 5 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 54%, followed by Bingo 24%, matchboxes 16%,soap 5%,noodles 2%. 3. Total RA shops - 6 4. Industry Type shops – 6 5. Some of the biggest bingo retailers Manohar Bidi Shop, Shanti pan shop.
  28. 28. DSS Sandeep Specification Area Worli Outlets 37 Handlers 16 Sales Data( INR) Total Sales with Cigarettes 72974.5 Biscuit 3828 Jar 780 Bingo 1498.5 Match Box 1470 Noodles 0 Soaps 0 FMCG Sales 7576.5 Field Observation: 1. Total shops closed= 9 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 51%, followed by bingo 20%, matchboxes 19%, jar 10%. 3. Total RA shops-3 4. Industry Type shops – 8 5. Some of the potential bingo retailers of the area are Vikram Anil General Store, Shri Siddhivinayak pan shop.
  29. 29. DSS P P Gupta Specification Area Sewri Outlets 28 Handlers 13 Sales Data( INR) Total Sales with Cigarettes 33245.5 Biscuit 6288 Jar 1220 Bingo 2033.76 Match Box 490 Noodles 0 Soaps 0 FMCG Sales 10031.76 Field Observation: 1. Total shops closed= 3 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 63%, followed by Bingo 20% , jar 12%,matchboxes 5% 3. Retailers expect better scheme on wafers. 4. Total RA shops- 0 5. Industry Type shops- 9 6. Rupa pan bidi shop is biggest retailer of bingo. There are 4 shops who are average buyer can be pushed more Mahakali Pan shop, Ratnagiri General Store, Vitthal Pan Bidi Shop, Sabhista Pan Bidi Shop
  30. 30. DSS Brijesh Specifications Area Dharavi Outlets 33 Handlers 15 Sales Data( INR) Total Sales with Cigarettes 51695.04 Biscuit 4392 Jar 0 Bingo 2783.04 Match Box 1470 Noodles 1284.48 Soaps 0 FMCG Sales 9208.8 Field Observation: 1. Total shops closed= 3 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 48%, followed by Bingo 38%, noodles 13%. 3. Retailers expect better scheme on biscuit & bingo. 4. Total RA shops-2 5. Industry Type shops-9 6. Some of the big retailers of the area are Sada Shiv Pan Shop, Murlidhar Pan Shop, Sai nath general store. Average bingo buyers retailors Kotiyan General Store, Jaiswal Pan Shop
  31. 31. DSS Ramgopal Specifications Area Dharavi Outlets 23 Handlers 12 Sales Data( INR) Total Sales with Cigarettes 33198.3 Biscuit 6170 Jar 0 Bingo 1498.5 Match Box 1470 Noodles 640.8 Soaps 0 FMCG Sales 9779.3 Noodles 0 In-cense Stick 0 Soaps 0 FMCG Sales 10336 Field Observation: 1. Total shops closed= 6 2. 5/- biscuit and cookies are more popular among the retailors. 3. FMCG category- Out of Total sales, biscuits comprises maximum share of 63%, followed by bingo 15% ,matchboxes 15%,noodles 7%. 4. Most of the retailers are small time buyer so need to refill the stock on shorter frequency. 5. Prefer to take stock from wholesaler 6. Total RA shops - 1 7. Industry Type shops- 5 8. Sai kripa General Store is biggest retailer in terms of Bingo.
  32. 32. DSS Name- Satya Specifications Area Matunga East Outlets 31 Handlers 12 Sales Data( INR) Total Sales with Cigarettes 66386 Biscuit 3672 Confectionery 1230 Bingo 1764 Match Box 500 Noodles 0 In-cense Stick 0 Soaps 932 FMCG Sales 8098 Field Observation: 1. Out of total sales the percentage of FMCG category is 12%. 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 45%, followed by bingo 22% , confectionery 15 %,Soap 12 %,matchboxes 6%. 3. DS uses his cycle also on the CDM day which helps in reducing the distribution lead time. 4. Total RA shops - 6 5. Industry Type shops- 6 6. Some of the biggest bingo retailers Manohar Bidi Shop, Shanti pan shop.
  33. 33. DSS Name- Keshav Specifications Area Parel Outlets 31 Handlers 17 Sales Data( INR) Total Sales with Cigarettes 44544 Biscuit 8806 Confectionery 1960 Bingo 1605.6 Match Box 0 Noodles 872 In-cense Stick 0 Soaps 972 FMCG Sales 14215.6 Field Observation: 1. Out of total sales the percentage of FMCG category is 32%. 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 60%, followed by confectionery 14 %, bingo 11% , Soap 7 %,Noodles 6%. 3. 10 /- noodles was more in demand DS was short of stock. 4. On the distribution time biscuit was broken. 5. Pineapple flavor biscuit was in demand. 6. Matri Chaya shop was keeping Marlboro in ITC display. 7. Total RA shop- 2 8. Industry Type shops-10 9. Some of the biggest bingo retailers are Kamal Pan Shop, VIP pan shop. There are many small bingo retailers in this area.
  34. 34. DSS Name- Subhas Specifications Area Tata Hospital( Parel) Outlets 39 Handlers 20 Sales Data( INR) Total Sales with Cigarettes 70081.4 Biscuit 6422 Confectionery 330 Bingo 2822.4 Match Box 490 Noodles 660 In-cense Stick 0 Soaps 0 FMCG Sales 10724.4 Field Observation: 1. Out of total sales the percentage of FMCG category is 15%. 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 59%, followed by bingo 26% ,Noodles 6%, match box 5 %,Confectionery 3 %, 3. Shopkeepers have complaint regarding DND replacement. 4. Bingo DS offer better scheme. 5. In confectionery category licks and frooti fun in demand. 6. Work was on hold due to heavy rain for almost an hour. 7. Total RA shops- 2 8. Industry Type shops-10 9. Some of the biggest retailer of bingo are Shah Nanji Bhai Dharamshi shop, Shri Pan Shop, Star Pan Shop, Anil Bidi Shop, Shri Kripa Pan bidi Shop, Anil tobacco & general store.
  35. 35. DSS Name- S N Gupta Specifications Area Mahim Outlets 39 Handlers 20 Sales Data( INR) Total Sales with Cigarettes 72543.6 Biscuit 7380 Confectionery 990 Bingo 2973.6 Match Box 0 Noodles 0 In-cense Stick 0 Soaps 0 FMCG Sales 11343.6 Field Observation: 1. Out of total sales the percentage of FMCG category is 15%. 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 65%, followed by bingo 26% , Confectionery 9 %. 3. Shopkeepers have complaint regarding DND replacement. 4. Total RA shops – 1 5. Industry Type shops- 10 6. Some of the biggest retailer of bingo in the area are Yadav pan Shop,A- One general Store, Durga Pan Bidi shop
  36. 36. DSS Name- Vinod Specifications Area Mahim Outlets 39 Handlers 20 Sales Data( INR) Total Sales with Cigarettes 67449 Biscuit 22140 Confectionery 1780 Bingo 1512 Match Box 500 Noodles 0 In-cense Stick 310 Soaps 0 FMCG Sales 26242 Field Observation: 1. Out of total sales the percentage of FMCG category is 39%. 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 84%, followed by Confectionery 7 %, bingo 6%, match box 2%,In-cense Stick 1%. 3. DS was having 180 extra bingo already in the market. 4. Noodles not with DS was ordered by two shop 5. Total RA shops-4 6. Industry Type shops-11 7. Some of the biggest bingo retailers are Shreyas Foundation,China Food Corner, Janta Pan Shop. There are many average bingo retailers in the area
  37. 37. DSS Name- V S Pandey Specifications Area Lalbaugh- Parel Outlets 37 Handlers 19 Sales Data( INR) Total Sales with Cigarettes 60722 Biscuit 5798 Confectionery 880 Bingo 2856 Match Box 0 Noodles 0 In-cense Stick 0 Soaps 0 FMCG Sales 9534 Field Observation: 1. Out of total sales the percentage of FMCG category is 16%. 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 61%, followed by bingo 30%, Confectionery 7 %. 3. Dark Fantasy & Chocofill not with DS demanded by 4 shops. 4. Licks in demand. 5. Total RA shops-1 6. Industry Type shops-9 7. Some of the biggest retailers of the area are Manohar Pan Shop. Many average bingo retailer shop like Jai Santoshi Mata Stall, Bandhkare Bidi Shop, J K Pan bidi shop.
  38. 38. DSS Name- Kamlesh Specifications Area Lower Parel - Prabha DEVI Outlets 38 Handlers 20 Sales Data( INR) Total Sales with Cigarettes 68179.6 Biscuit 3996 Confectionery 1205 Bingo 1908.6 Match Box 430 Noodles 0 In-cense Stick 0 Soaps 0 FMCG Sales 7539.6 Field Observation: 1. Out of total sales the percentage of FMCG category is 11%. 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 53%, followed by bingo 25%, Confectionery 16 %, Match Box 6%. 3. Bingo was short in the area. 4. Total RA shops-7 5. Industry Type shops-9 6. In this area most of the retailers are average bingo buyers. Sai Pan Shop, Vijay Store, Sudama Pan Shop, New Royal Pan Shop, Jai Maharashtra Pan Shop,Shirodkar pan Shop, Sddhant Pan Shop
  39. 39. DSS Name- Arvind Singh Specifications Area Dadar - Prabha DEVI Outlets 39 Handlers 20 Sales Data( INR) Total Sales with Cigarettes 70643 Biscuit 5442 Confectionery 1205 Bingo 2856 Match Box 500 Noodles 0 In-cense Stick 0 Soaps 0 FMCG Sales 10003 Field Observation: 1. Out of total sales the percentage of FMCG category is 11%. 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 54%, followed by bingo 29%, Confectionery 12 %, Match Box 5%. 3. Diamond wafers are more popular in this area. 4. Most of the shopkeepers have stop taking bingo because of the difficulty they face in DND replacement. 5. Display issue. 6. Bingo denied on the ground of rainy season. 7. After packaging of the products it reaches after one month to the shopkeepers. 8. Burbon biscuit asked by shop keeper . 9. Total RA shops-1 10. Industry Type shops-8 11. Some of the biggest bingo retailers in the area Daya Pan Shop, Narkar pan Bidi Shop,Shri Sai Store. Average bingo retailers Mahesh pan Shop, OM communication centre, Onkar tobacco shop
  40. 40. DSS Name- Ramesh Specifications Area Parel village Outlets 30 Handlers 17 Sales Data( INR) Total Sales with Cigarettes 57953.4 Biscuit 7888 Confectionery 700 Bingo 2822.4 Match Box 500 Noodles 1540 In-cense Stick 0 Soaps 0 FMCG Sales 13450.4 Field Observation: 1. Out of total sales the percentage of FMCG category is 11%. 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 59%, followed by bingo 21%, noodles 11,Confectionery 5 %, Match Box 4%. 3. Complaint on the Aim match box there are too many waste sticks inside the box 4. Gagad general store is facing some issue from BMC regarding the display. 5. Total RA shops- 5 6. Industry Type shops-9 7. Sai Kripa Bidi shop , Panchal Pan shop, Ramesh pan shop, Shubhak corner, Ganesh general store are big bingo retailer in this area.
  41. 41. DSS Name- S K Gupta Specifications Area Mahim Outlets 30 Handlers 16 Sales Data( INR) Total Sales with Cigarettes 66972 Biscuit 5868 Confectionery 440 Bingo 3528 Match Box 500 Noodles 0 In-cense Stick 0 Soaps 0 FMCG Sales 10336 Filed Observation: 1. Out of total sales the percentage of FMCG category is 16%. 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 57%, followed by bingo 34%, Match Box 5%,,Confectionery 4 %. 3. Bingo strip issue. 4. Total RA shops-8 5. Industry Type shops-6 6. Some of the biggest retailer of bingo in the area are Yadav pan Shop,A- One general Store, Durga Pan Bidi shop
  42. 42. DSS Name- Vinod Specifications Area Mahim Outlets 39 Handlers 20 Sales Data( INR) Total Sales with Cigarettes 80578.4 Biscuit 8026 Confectionery 1560 Bingo 2822.4 Match Box 1000 Noodles 880 In-cense Stick 0 Soaps 0 FMCG Sales 14288.4 Field Observation: 1. Out of total sales the percentage of FMCG category is 21%. 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 56%, followed by bingo 26%,Confectionery 11 %, Match Box 7%, Noodles 6%. 3. Total RA shops- 4 4. Industry Type shops-10 5. Some of the biggest bingo retailers are Shreyas Foundation,China Food Corner. There are many average bingo retailers area.
  43. 43. DSS Name- Satya Specifications Area Matunga E Outlets 31 Handlers 12 Sales Data( INR) Total Sales with Cigarettes 61484 Biscuit 2382 Confectionery 1260 Bingo 2848 Match Box 1000 Noodles 880 In-cense Stick 625 Soaps 0 FMCG Sales 8995 Field Observation: 1. Out of total sales the percentage of FMCG category is 16%. 2. FMCG category- Out of Total sales, bingo comprises maximum share of 32%, followed by biscuit 26%,Confectionery 14 %, Match Box 11%, Noodles 10%, In-cense Stick 7%. 3. Shop keeper expecting better scheme on biscuits. 4. Work was on hold for very long due to rain. 5. Total RA shops- 6 6. Industry Type shops -6 7. Some of the biggest bingo retailers Manohar Bidi Shop, Shanti pan shop. 6.
  44. 44. DSS Name- Kamlesh Specifications Area Worli- Prabha devi Outlets Handlers 20 Sales Data( INR) Total Sales with Cigarettes 76052 Biscuit 6651 Confectionery 1260 Bingo 1512 Match Box 500 Noodles 0 In-cense Stick 300 Soaps 0 FMCG Sales 10223 Field Observation: 1. Out of total sales the percentage of FMCG category is 13%. 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 65%, followed by bingo 15%,Confectionery 12 %, Match Box 5%, Noodles 3%. 3. Complaint regarding the bingo delivery not different flavor’s provided. 4. Total RA shops- 7 5. Industry Type shops-9 6. In this area most of the retailers are average bingo buyers. Sai Pan Shop, Vijay Store, Sudama Pan Shop, New Royal Pan Shop, Jai Maharashtra Pan Shop,Shirodkar pan Shop, Siddhant Pan Shop
  45. 45. DSS Name- Bharat Yadav Specifications Area Lower Parel Outlets 38 Handlers 20 Sales Data( INR) Total Sales with Cigarettes 53383.8 Biscuit 4927 Confectionery 750 Bingo 2822.4 Match Box 500 Noodles 880 In-cense Stick 0 Soaps 0 FMCG Sales 9879.4 Field Observation: 1. Out of total sales the percentage of FMCG category is 19%. 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 50%, followed by bingo 29%, Noodles 9%.,Confectionery 8 %, Match Box 5%, 3. Total RA shops-5 4. Industry Type shops-10 5. Some of the biggest retailers of bingo are Neelkanth Pan Shop, K Square, Nisarg ice cream & communication, Maharashtra pan shop
  46. 46. DSS Name- Ratan Specifications Area Tata Hospital-Bhoivada Outlets 39 Handlers 20 Sales Data( INR) Total Sales with Cigarettes 74036.8 Biscuit 7034.4 Confectionery 680 Bingo 2822.4 Match Box 500 Noodles 0 In-cense Stick 0 Soaps 0 FMCG Sales 11036.8 Field Observation: 1. Out of total sales the percentage of FMCG category is 15%. 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 64%, followed by bingo 26%, Confectionery 6 %, Match Box 5%. 3. Delivered wrong stock to the customer. 4. One shop keeper has delivery timing issue. 5. Total RA shops - 2 6. Industry Type shops- 12 7. Some of the biggest retailer in the area are Viklang PCO shop, Sitaram Asreni shop, Sai Kripa Bidi shop.
  47. 47. DSS O P Sharma Specification Area Wadala Outlets 31 Handlers 19 Sales Data( INR) Total Sales with Cigarettes 62668 Biscuit 3456 Jar 1360 Bingo 2252.88 Match Box 500 Noodles 0 Soaps 0 FMCG Sales 7568.88 Field Observation: 1. Out of total sales the percentage of FMCG category is 12%. 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 46%, followed by bingo 30%, Confectionery 18 %, Match Box 7%. 3. Total RA shops - 3 4. Industry Type shops – 10 5. Potential bingo retailers Nanji bhai Shop, Pragati General Store.
  48. 48. DSS Name- KLOP Specifications Area Wadala- Antop hill Outlets 39 Handlers 20 Sales Data( INR) Total Sales with Cigarettes 72007.4 Biscuit 3436 Confectionery 1260 Bingo 2822.4 Match Box 500 Noodles 0 In-cense Stick 0 Soaps 0 FMCG Sales 8018.4 Field Observation: 1. Out of total sales the percentage of FMCG category is 11%. 2. FMCG category- Out of Total sales, biscuits comprises maximum share of 43%, followed by bingo 35%, Confectionery 16 %, Match Box 6%. 3. Frooti fun in demand. 4. Cashew biscuit demanded not with DS. 5. Soap box kept in market. 6. Avinash bidi shop (RA shop) no visibility of bingo 7. Total RA shops - 4 8. Industry Type shops - 9 9. Some of the potential retailers in the area are Wadala Bidi Shop, Afgan Store, Amba Bhavani Provision store, AAlekh bidi shop, Guru kripa Pan shop
  49. 49. Appendix 5: Various SKU sales data (INR) SKU Total Sales of Individual SKU (INR) Biscuit 180922.9 Confectionery 26080 Bingo 69074.52 Match Box 21535 Noodles 9210.08 In-cense sticks 1235 Soaps 2380
  50. 50. Graphical Representation: Biscuit 58% Confectionery 9% Bingo 22% Match Box 7% Noodles 3% In-sence sticks 0% Soaps 1% FMCG SALES
  51. 51. Appendix 6: DSS Rating for FMCG Sales DSS rating according to FMCG sales on CDM day: 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 O P Sharma R P Singh Sandeep KLOP Satya Kamlesh Under achievers Under achievers
  52. 52. 0 2000 4000 6000 8000 10000 12000 14000 Average Achiever Average Achiever
  53. 53. 0 5000 10000 15000 20000 25000 30000 Keshav Vinod Ramesh Satya Vinod Satisfactory Achiever Satisfactory achiever
  54. 54. Appendix 7: DSS Rating for Bingo Sales Bingo Sales Wise DSS performance all data in INR: 0 200 400 600 800 1000 1200 1400 1600 Sitaram S P Gupta S R Gupta Sandeep Ramgopal Kamlesh Bingo Underachievers Bingo Underachievers
  55. 55. 0 500 1000 1500 2000 2500 3000 Bingo Average Achievers Bingo Average Achievers
  56. 56. 0 500 1000 1500 2000 2500 3000 3500 4000 Bingo Push Achievers Bingo Push Achievers
  57. 57. Acknowledgements Mr. Manish Maheshwari, Assistant Branch Manager, ITC Ltd., Mumbai for assigning this project to me. The above report has been prepared under the valuable guidance and inputs provided by my Mentor, Kiran Churi Area Manager, ITC Ltd., Mumbai Significant information & guidelines was made available by Mr. Nikhil Vithalani, Area Executive , ITC Ltd, Mumbai 1 Ac

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