ITC

SALES AND DISTRIBUTION CHANNEL

Manufacturing & Distribution Process:

Process
Mother Warehouse

Plantation

Manufacturing Unit

Sub distributor/ Retailer

Distributor

Local Warehouse

National Sales Manager

Regional Sales Manager Branch Manager Asst. Branch Manager Area Manager Area Executive Salesman
Indirect Sales

Direct Sales

Indirect Sales
Area Sales Executive: Mr. Aniket Upadhyay Link between the Distributor and ITC Monitors the targets of the salesmen and forecasts
future demands

Direct Sales
The initial investment of the distributors is around Rs
5cr for buying stocks and other requirement

The major investment is in current and fixed asset.

There are 500 salesmen, 25 distributor points & no

specific number of wholesalers within Mumbai.

STAR DISTRIBUTOR
Star distributor covers the Mahim to Byculla area. He divides the area and assigns it to the salesman.

Distributor Point
At every distributor point there are:
2 operators in back office , 1distributor manager, 2

loaders , 1 godown keeper, 35 CDMs and cycles and

godown area is1000 sq.ft space

The CDM , cycles and office here were on rent.

Every salesman is responsible for selling Cigarettes, Confectionaries which includes personal care, packaged food, agarbattis and matchsticks. (excluding stationery) Every salesman gets a CDM ,i.e., Convenience Delivery Model: Convenience outlets. Stock is given once every week, i.e., 4 times a month

A deposit of Rs. 20,000 is kept with the distributor per salesman.

Distributor Landing Price

The distributors margin is 1.55%
*Varies with respect to the areas

Distributor Beat Plan

Beat Name: L. J. Road, Mahim Station- West No of salesmen under 1 distributor: roughly 20 SKUs Target: No fixed target
One salesman sells around 28 SKU (Cigarettes only)

Salesman
From the distributor point, the salesman loads his
aluminium box at 9:00 am, which he carries on his cycle.

Salesman
The area & outlets which the salesman has to cover is fixed.
(Here, Sitaram Gupta covers Mahim station area)

He covers approximately 32-35 outlets in a day. His day starts at 9:00 am in the morning and he finishes at 4:00 pm in
the evening.

Retailer: Kishanchand

Retailer

The salesman takes the order from the retailer. The order is served immediately. The retailer has a 10-12% margin. Once the order is served the retailer pays for the order immediately or on credit.

The Salesman keeps a receipt of the order served for

his records and gives a copy to the retailer.

 Daily the sales person sells stock worth rupees 25003000 per outlet. and on weekends i.e. Saturdays salesmen sells goods worth 4000- 5000 rupees. (Figures vary from every pan bidi store) (Therefore, daily= Rs.80,000 approx)

The salesperson receives a margin of 0.8%. The highest selling brands in the Mahim area are
Goldflake lite and Classic mild.

In case a new retail outlet is opened, the salesman has

to report to the supervisor or area sales executive so that a salesman is assigned that particular outlet.

Post Sales
The salesman reports to the distributor at 4:00 pm
and gives him the sales proceeds of every outlets he covers daily.

Emergency...
If in case the stocks are damaged or spoiled during
transit due to unforeseen circumstances then the salesperson has to bear the cost.

Retailers Promotion Strategy

They are categorized into 3 types:In Shop: They are categorized into 3 types:1) Poster 2) PSU

3) Planograming

 On Shop:
On shop Advertising is Banned by COTPA Act 1993

Pack Insert

Interview with wholesaler

Aakash tobacco (KandivaliEast )

1 wholesaler in a vicinity. Margin 0.05%. Takes the whole stock

directly from distributors.

 Orders 7-8 times a month. Sells to small retailers, direct customer on packet basis,
cyclewala etc.

Monthly sale 2.5 3 lakhs. Sells other brands also. Works on credit basis.

CONCLUSION