ITC SUNFEAST BISCUITS

SALES AND DISTRIBUTION

Discussion Outline

Discussion Outline

 One of the worlds most reputable company Market capitalization of nearly US $ 18 billion Turnover of over US $ 5.1 Billion

Introduction to ITC

Post tax profit of US $750 Million

Diversified product portfolio Direct group employment of 29000

Introduction to Sunfeast
Launched in July, 2003 Growth rate of 53% Turnover of over 1000 crore Wide categorization PRODUCTS
GLUCOSE
MARIE BUTTERBITE AND CREAM

COMPETITORS
PARLE, BRITANNIA AND HORLICKS
BRITANNIA AND BISK FARM PRIYA GOLD, ANMOL, BRITANNIA AND PARLE

Products at a Glance

Discussion Outline

Organizational Structure

Recruitment at ITC
Entry level Premier management institutes Middle level Integrity A "will do" attitude High energy Creativity Leadership Team skills Ability to think strategically Grass root level

Discussion Outline

Diagram

FMCG

FOOD AND BEVERAGES

OTHER FMCG PRODUCTS

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

Important Factors

CREDIT SYSTEMS

MARGINS

PROMOTIONS

FOOD

STOCK OUTS

DISTRIBUTION CHANNELS

WASTAGES

Discussion Outline

Distribution Channel

Flow Diagram
CNF

FACTORY

WHOLESALE DEALER BASE WHOLESALE DISTRIBUTOR

RETAILER

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.

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.

Discussion Outline

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.

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.

Observations
Companies with top product are hard to bargain on credits. Companies also use their premium products to push their non premium products.

Discussion Outline

ITC SUNFEAST BISCUITS

Amitanshu Srivastava Alok Kumar

Presented by:
Ankit Nema

Ashish Baid Anand Kumar