ITC LIMITED

GROUP –B9
 Industry Overview
2

 Segments : Organized & Unorganized sectors (60% - 40%)

 Exports: 10% of the Annual Productions (Annual Production
2009:18.68 lakh metric ton).
 Imports: Insignificant
 Marketing: Wholesale & Retail Marketing is carried out with a
network of C & F Agencies (for states and/specific Districts)
Dealers/ Wholesalers and Retail Shops.
 Biscuit Industry: Especially The Small & Medium Sector,
Consisting of around 150 units.
 Per Capita Consumption: 2.1 kg as compared to 2.5 kg to 5.5 kg
in South Eastern countries and European Countries & USA
 Popular Brands: Britannia, Parle, Priyagold, Sunfeast.
 Value of the Industry: Rs. 65 Billion
 Market Share*
3

Sector Wise Population Wise

Organized Sector Unorganized Urban Rural

Sector
85%-75% 65%-55%
60% 40%

* Data from Indian Biscuit Manufacturer Association

 Players in the market
4

 Parle G
 Britannia
 ITC – Sunfeast
 Unibic
 Priya gold
 Horlicks
 Others
 Market Share*
5

Region Wise Brand Wise

North Zone 25% Parle 40%

West Zone 23% Britannia 28%
East Zone 28% Priya Gold 15%
South Zone 24% ITC 11%
Rest 6%

* Data from Indian Biscuit Manufacturer Association

 Industry – Annual Growth Rate
6

Annual Growth Rate* Line Graph

2004 15%
2005 14%
2006 14%
2007 13%
2008 15%
2009 (June) 17%

* Data from Indian Biscuit

Manufacturer Association
 Company Overview - ITC
7

 ITC is one of India’s foremost private sector companies.

 It is engaged in diversified businesses.

 The Group’s business is divided into 5 segments:

 FMCG

 Agribusiness

 Paperboard, Paper & Packaging.

 Hotels

 Others (IT, Investment, Golf, Lifestyle Retails, Greeting

Cards etc.)
 ITC Food Division
8

 The foods business is newest and smallest business of

the conglomerate
 Revenue Last Year (FY 2009): Rs. 23, 000 crore
  It faced a tough road when it began operations in
2001, with severe competition from existing players.
 Biscuits have been the biggest driver of the foods
division, contributing over 35% of the top line,
followed by staples. 
 Products & Services
9

Products Services

 Agricultural Commodities.  Golf

 Branded Garments  Hoteliering

 Cigarettes  IT Based Services

 Greeting Cards  Investments

 Incense Sticks
 Marine Products
 Packaged Foods (Staples, Confectionery, Biscuit, and Snack Foods)
 Safety Matches
 Sales Figures of Different product Category for 2008-09* - South
Bangalore Bangalore
  City Chennai Coimbatore Hyderbad Rayalseema Ernakulam Karnataka TOTAL
Confectionary 1200 1440 3072 924 948 2484 960 11028
Bingo 17676 8928 276 7392 96 492 132 34992
Atta 261084 240552 50076 434508 127020 22944 56412 1192596
Biscuits 7992 12300 18516 3816 5376 6936 7692 62628
Matches 33000 100332 71892 39300 172704 136020 30576 583824
Agarbatti 64308 111444 122436 269304 352620 54984 49464 1024560
Soaps &Shampoos 618648 515292 746016 499956 563088 671316 536532 4150848
TOTAL 1003908 990288 1012284 1255200 1221852 895176 681768 7060476

Sales Figures of Different product Category for 2007-08* - South

Bangalore Bangalore
  City Chennai Coimbatore Hyderbad Rayalseema Ernakulam Karnataka TOTAL
Confectionary 1056 1296 2976 864 924 2388 888 10392
Bingo 15048 8424 240 7308 84 456 120 31680
Atta 233664 218556 46824 382548 107976 21348 49608 1060524
Biscuits 6252 10200 15564 3660 4944 5520 6384 52524
Matches 31416 98124 63720 36132 152508 123984 29988 535872
Agarbatti 63144 110580 118392 262776 342492 54012 49188 1000584
Soaps &Shampoos 598380 487356 716004 481560 538572 631476 504012 3957360
TOTAL 948960 934536 963720 1174848 1147500 839184 640188 6648936

* in terms of Volume 10
 Growth Rate of Different Product categories of ITC for South

Bangalore Ernakula Bangalore

  City Chennai Coimbatore Hyderbad Rayalseema m Karnataka

Confectionary 14% 11% 3% 7% 3% 4% 8%

Bingo 17% 6% 15% 1% 14% 8% 10%

Atta 12% 10% 7% 14% 18% 7% 14%

Biscuits 28% 21% 19% 4% 9% 26% 20%

Matches 5% 2% 13% 9% 13% 10% 2%

Agarbatti 2% 1% 3% 2% 3% 2% 1%

Soaps &Shampoos 3% 6% 4% 4% 5% 6% 6%

11
 Customers and their Locations for South.
12

 Total Distributors for ITC – South Region (No. of Territories)

a. Bangalore – 15
b. Chennai – 53
c. Coimbatore – 55
d. Ernakulum- 67
e. Hyderabad – 19
f. Karnataka – 85
g. Rayalseema - 67

 Total customers of ITC:

a. Total SWDs* – 11155 SWDs

 Total customers in Bangalore:

a. Total SWDs* in Bangalore – 657 SWDs

* SWD – Secondary Wholesale Dealer

BANGALORE
 Classification of Customers
14

1. Convenience Stores: Pan Beeda, Tea Shops

2. Grocery Stores
3. Chemist Shops
4. Modern Trade: Big Bazaar, Food Bazaar,
Spencers, Star Bazaar, Spar, More, Reliance
Fresh
5. Secondary Wholesale Dealers
 Customer wise buying potentials for
Sunfeast Biscuits*
15

Channels wise 2008-09 % to total 2007-08 % to total

Customer

Convenience Stores 2360 11% 1658 10%

Grocery stores 7936 38% 6420 40%

Chemists Shops 136 1% 92 2%

Modern Trade 1220 6% 844 5%

SWDs 9288 44% 6872 43%

Total 20940 100% 15886 100%

* in terms of Volume
 Territories
Distributor Territory Distributor Territory
16
Bina Banaswadi, Saphire Yeshwantpur,
Enterprises Kammanahalli Mahalakshmi Layout
Rajajinagar
DA Sons Vijaynagar, Chandra Santhosh Whitefield, ITPL,
layout, Majestic, Navrang Commercial Domlur, Marathalli
Dwarka Jayanagar, J.P Nagar Savi Enterprises Electronic city
Emerald Kormangala, Madiwala, Shri Shakti Yelahanka, Peenya,
Adugodi, HSR Layout Enterprises Dasarahalli
G N Marketing Ulsoor market, Siva Traders Bommanahalli,
Indiranagar Chandapura,
Hosur Road
M A Associate Gandhinagar, Sri Venkateshwara Hebbal, Mysore Road
Basavangudi, N R Colony Enterprises
Rushabh Neelsandra, TCS Dodballapur Devanahalli, Bagepalli,
Shivajinagar C B Pur, G B Pur
TCS & Sons Bannerghatta Road
 Territories in Bangalore
17

 Total Territories – 15
 Territories assigned by ITC:
1. 4 each salesperson is assigned by the company for each
product category to a distributor
 Company sales person -3 (1 in distributors office)
 Trainee -1
2. No two Salesperson will cover the same distributors
3. Territories are assigned based on the orders generated
by the salesperson and conversion of the order into
sales.
 Territories in Bangalore
18

 Territories assigned by the Distributor:

1. 1 each salesperson is assigned by the distributor for
each product category falling under his territory
2. Distributor assigns his salesperson based on the
order generated by him for what he is assigned.
3. Salesperson will cover the entire outlets in the
distributors areas based on routes.
 Routing
19

 Every day salesperson has to cover min. of 30

outlets and max. of outlets for that particular route
for which route is pre-scheduled
 Different routes on different working days of a
week so that entire territory is covered
 Retail Shop Visited
20

 Sriram Tarders
 Contacted Person’s: Mr. Hariram Vishnoi
 Phone Number: 9414571929
 Comparison - 1
21
 Comparison - 2
22
 Comparison - 3
23
 Scheduling
24

 Sales person of the distributor must visit every

outlet of his product category frequently (once a
week).
 A detailed report of the days’ work should be
uploaded in the company server from the
distributors‘ office.
 Has to pre-assign time to be spent at each outlet
 Sales Organization
General Manager
Marketing

RSM
(North) RSM RSM RSM
(east) (west) (South)

ASM

Senior Sales Persons Junior Sales Persons

25
 B2B & B2C Sales force
26

 Different sales person for B2B & B2C customers.

 B2C channel is the regular sales force through
distributor.
 A separate team looks after the B2B sales for ITC.
 Selection & Training
27

 Referrals, Campus
 S&D experience preferred
 On the job training.
 Going on calls with Sr. Sales Executives in the field
for atleast 6 months and also along with the
distributor salesperson.
 Motivation, Compensation
28

 Working for brand Sunfeast Biscuits

 Sales Exec. – 15,000 p.m
 Incentives – Gifts like Trips, Durables etc. on
achieving Sales target.
 Cross Promotion Gifts – Coupons, Benefits etc.
 Best Sales Exec. Award – Once in 6 months
 Contests : Kaun Marega Sixer ?, Sunfeast Premier
League etc.
 Sales Manager -: 3-5 lacs p.a.
 Evaluation
29

 Sales Manager evaluates every month

 Managers appraised on basis of reports and results
 Sales manager – Regional Manager- Area Sales
manager
 Channel Design
Modern
ITC Trade

Distributor
s

Convenience Secondary
Grocery Chemists Wholesale
Stores stores shops Dealers

30
 Channel Objectives
31

 To maximize sales under each channel

 To produce maximum support to the distributor
from order generation upto sales
 Factors in Channel Design
32

 Huge market potential

 Spread in vast areas – Easily Accessible
 Distribution Channel

Company Factory Company Factory Company Factory Company Factory

North East West South

Hub WSP (warehouse)

Distributor

Convenience Chemists Grocery SWDs

Stores Shops Stores

33
 SWOT ANALYSIS of ITC
34

STRENGHTS:
 Developing new brands for new segments
 Diversified company trading in number of business sectors
WEAKNESS:
 Still uses its original name, despite the negative connection of
tobacco with poor health and premature death
 Dependent upon its tobacco revenues to fund its FMCG
products
 SWOT ANALYSIS of ITC
35

OPPORTUNITIES:
 Certain brands can be developed using strategies of

market development, product development and

marketing penetration
 ITC is moving into new and emerging sectors including

Information Technology, supporting business solutions.

 E-Choupal initiative to links rural Indian farmers using

the Internet and the Novel way of following the same

 Per capita consumption of personal care products in

India is the lowest in the world.

 SWOT ANALYSIS of ITC
36

WEAKNESS/ CHALLENGES:
 Domestic & International competition. Entrance of new
competitors to the Indian market
 Threat of competition from existing competitors
 FAB ANALYSIS
37

Features Advantage Benefit

Prime Location of outlets Easy availability Convenient basically for
shoppers, travelers, office
going people as it is
basically located near
malls, railway stations and
inside MNC’s etc.

Product Assortment Provide different varities of Satisfies hunger and

items which is easy to cook provides satisfaction
& eat like Kitchens of
India, Pasta etc
 Areas Needing Improvement
38

 Continuous production & supply of different varities of

biscuits throughout the year
 Come up with specials schemes to retailers (SWDs)
and end customers in the form of gifts or benefits
inorder to make them buy more of Sunfeast Biscuits
 Motivate the retailer to buy Sunfeast biscuits by
offering better PTR compared to that of other
Competitors
 Continuous touch with the wholesaler & retailer
(SWD) to build up a strong relationship
 Introduce new varities of biscuits that differentiates
Sunfeast from other players in the market. Eg-
Cookies.
 THANK YOU

39