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TABLE OF CONTENTS
ABBREVIATIONS........................................................................................................3
Chapter 1: AIM OF THE PROJECT.............................................................................4
OBJECTIVE..................................................................................................................4
METHODOLOGY.........................................................................................................4
Chapter 2: INTRODUCTION .......................................................................................5
FOODS BUSINESS DIVISION OF I T C ...................................................................5
Chapter 3 :......................................................................................................................7
OUTLETS CLASSIFICATION OF STUDIED Cos.....................................................7
OUTLET CLASSIFICATION NORMS: ..................................................................7
PARLE.......................................................................................................................7
PERFETTI..................................................................................................................8
BRITANNIA..............................................................................................................8
HLL............................................................................................................................9
Chapter 4: TM&D STRATEGIES...............................................................................11
PARLE ....................................................................................................................11
PERFETTI................................................................................................................11
BRITANNIA ...........................................................................................................11
HLL..........................................................................................................................12
Chapter 5:.....................................................................................................................13
ORDER CAPTURE AND DELIVERY SYSTEMS...................................................13
PARLE.....................................................................................................................13
BRITANNIA............................................................................................................14
PERFETTI................................................................................................................14
HLL..........................................................................................................................14
Chapter 6: ....................................................................................................................16
ADMINISTRATION OF TRADE SCHEMES...........................................................16
PARLE.....................................................................................................................16
PERFETTI................................................................................................................17
BRITANNIA............................................................................................................18
HLL..........................................................................................................................18
Chaper : 7.....................................................................................................................20
WORKING NORMS FOR TERRITORY IN CHARGE. ...............................20
PARLE.....................................................................................................................20
PERFETTI................................................................................................................20
BRITANNIA ...........................................................................................................21
HLL ........................................................................................................................21
Chapter 8: MERCHANDISING.................................................................................22
PARLE.....................................................................................................................23
PERFETTI................................................................................................................23
BRITANNIA............................................................................................................24
HLL..........................................................................................................................24
Chapter 9: TRAINING & DEVELOPMENT INPUTS..............................................25
PARLE.....................................................................................................................26
PERFETTI................................................................................................................27
BRITANNIA ...........................................................................................................27
HLL..........................................................................................................................27
Chapter 10: TRADE RELATIONSHIPS:....................................................................29
Chapter 11: ANALYSIS OF THE QUESTIONNAIRE .............................................30
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Q. Which is the preferred company of traders in biscuits .....................................30

Q. Do you pass on the trade scheme to the consumers or not?................................30
BRITANNIA............................................................................................................31
PERFETTI................................................................................................................31
HLL..........................................................................................................................31
Chapter 12:...................................................................................................................35
RECOMMENDATIONS FOR SALES FORCE.........................................................35
Chapter 13:...................................................................................................................39
PLANS FOR INCREASING THE SALES.................................................................39
1. POP MATERIALS & ADVERTISINGS............................................................39
2. DISPLAYS ..........................................................................................................40
Chapter 14: MODEL FOR INCREASING SALES ....................................................45
1. TRADE SCHEMES ............................................................................................45
A.OFFERS IN SLABS.............................................................................................45
B.LINKAGE OF VISIBILITY WITH CASH DISCOUNT....................................45
C.INCENTIVIZATION OF TRADE ON LAST MONTH SALES........................45
2. INCENTIVISATION OF THE DS......................................................................45
PRODUCTIVE CALLS...........................................................................................46
RANGE SELLING .................................................................................................46
QUANTITY WISE TARGETS................................................................................46
VALUE WISE TARGETS.......................................................................................47
Chapter 15: CONCLUSION........................................................................................49
Chapter 16: BIBLIOGRAPHY....................................................................................50

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ABBREVIATIONS
WD

:-

WHOLESALE DEALER

SWD

:-

SEMI WHOLESALE DEALER

DS

:-

DISTRIBUTION SALESMAN

TM & D

:-

TRADE MARKETTING AND DISTRIBUTION

TMR

:-

TRADE MARKETING REPRESNTATIVE

O/Ls

:-

OUTLETS

FIFO

:-

FIRST IN FIRST OUT

AE

:-

AREA EXECUTIVE

AM

:-

AREA MANAGER

BM

:-

BRANCH MANAGER

TSI

:-

TERRITORY SALES INCHARGE

POSM

:-

PURCHASE OF SALES MATERIAL

POP

:-

POINT OF PURCHASE MATERIALS

FOD

:-

FACE ON DISPLAYS

GSB

:-

GLOW SIGN BOARDS

RSB

:-

RETAIL SIGN BOARDS

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Chapter 1: AIM OF THE PROJECT

OBJECTIVE
To study the work practices of the major competition companies of I T C in
confectionary and biscuits category.
To increase the sales of the Semi Wholesale Dealers (SWD) for

I T C in

biscuits and confectionary category.

METHODOLOGY
Study the work practices of the following companies in confectionary &
biscuits
PARLE, PERFETTI, BRITANNIA & HLL
Keeping in mind the desired TM & D outcomes: Understanding the TM & D strategies of all the companies studied.
Mapping roles & work practices of each member of the field force.
Recommending the work practices to increase the sale of confectionary &
biscuits for I T C.
Developing a model for increasing the sales of the SWDs in the command
area.

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Chapter 2: INTRODUCTION
FOODS BUSINESS DIVISION OF I T C

BISCUITS
The current size of the Indian biscuits market is around Rs 4,500 crore, out of
which the size of the organized sector is Rs 2,700 crore. In terms of volumes, the total
production of biscuits in India currently stands at around eight lakh tonnes out of
which 4.5 lakh tonnes come from the organised sector. I T C expect to capture around
11 per cent share in the biscuits market within the next 3 years. This will put I T C in
the 3rd position in the biscuits market
There has been a tremendous growth in the biscuits market during the last
couple of years especially in 2002-03, when the market grew by around 12 per cent.
This overall market growth has prompted I T C to venture in the field in a big way.
Sunfeast" - the umbrella brand name introduced in the Glucose, Marie and
Cream segments. "Sun" mascot - the brand ambassador is reinforcing the positioning
of the brand "Spread the Smile". Product Innovation - two unique and new flavors for the first time in the India market- Orange Marie and Butterscotch Cream biscuit.
Looking to I T C and increasing consumers demand for Orange Marie, PARLE has
also plunged in production of Orange Marie and is launching the same across all the
O/Ls in a short time.
"Sunfeast" is launched nationally in phases in over One million retail
outlets across the country.
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I T C currently has two brands in the confectionery segment - "Mint-O" and

"Candyman" .
I T C acquired the brand "mint-o" from Candico in March 2002. I T C relaunched the compressed mint product mint-o with new and improved product and
packaging. Mint-o is the first mint in India to be also available in an orange flavour
besides the regular mint flavour. An innovative "Lemon mint" flavour was launched
on 26th February 2003. The product is available in two sizes rolls of 20s and 6s.
Mint-o offers the discerning consumer a value-added mint that captures the
international essence of youthful "cool". Mint-o is currently available in all major
markets.
Candyman Butterscotch Licks and Orange Licks were launched in December
2003 and now available in markets across the country. This marked I T C's entry into
the deposited candy market. In addition, Candyman Eclairs and Candyman hardboiled candies viz. Wild Banana, Mango Delite, Orange Josh and Pineapple Punch are
also available across India.
The latest offering from I T C Foods is in tune with the company's strategic
direction to develop new product lines by synergising its proven competencies. It is
believed that companys understanding of the Indian consumer is reflected in the
increasing confidence in the "I T C" brand and more importantly the trust that Indian
consumers are reposing in all products.

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Chapter 3 :
OUTLETS CLASSIFICATION OF STUDIED Cos.
OUTLET CLASSIFICATION NORMS:
Every company studied has classified outlets on the basis of both turnovers as
well as by channels. The classification by turnover could be on the basis of the
turnover of the industry of the category in the outlet or the turnover of the companys
own products in the outlet. This classification is primarily used for inputting the
respective companies brands better and in a more focused manner. Inputs could be in
the form of trade or cash discounts or in the form of special incentives to whichever
class of outlets is being targeted. These classifications are also taken into account
while conducting any visibility and merchandising drives.

PARLE
Outlets are classified as per the A, B, C and semi wholesale depending on their
turnover.
CLASSIFICATION
A CLASS
B- CLASS
C- CLASS

TURNOVER IN RS.
>3000
1500 3000
< 1500

In addition to the above classification, the outlets are also classified channel wise
into following heads:
Bakery
Pan-Bidi
General Stores
Chemist
STD PCO
Institutions
Ice-cream Parlors
Restaurants / Hotels
Others

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PERFETTI
Outlets are classified as per the turnover during the each call as well as the
channels in each route. Following are the classifications based on the turnover
Classification
A- Class
B- Class
C- Class

Turnover in Rs.
>=1500
1200 800
<600

In addition to above classification the classification is also done according to

the channel-wise.
Pan-Bidi
Stationary
Hotels
Kirana
Medical Stores
Gift Shops

BRITANNIA
Outlets are classified on the basis of monthly turnover as well as channel wise.
CLASS
Super A + Class
A- Class
B- Class
C- Class
D- Class

MONTHLY TURNOVER IN RS.

>= 15,000
10,000 to 14,999
5,000 to 9,999
3,000 to 4,999
<= 2,999

Classification Channel wise

CHANNEL CODES
K
G
PB
R
C
SW
I

CHANNELS
KIRANA
GENERAL STORES
PAN BIDI SHOPS
RESTAURANTS
CANTEENS
SUB WHOLESALERS
INSTITUTIONS

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HLL
Outlets are classified according on their monthly Turnover, type, channel and
service. According to turnover the classification is done as follows:
CLASSIFICATION
A- Class
B- Class
C- Class
D- Class
E- Class

TURNOVER IN RS.
> 10,000
6,000 to 10,000
4,000 to 6,000
1,000 to 4,000
< 1,000

Classification is also done on the basis of the type of the outlet.

WS
SS
CH
FA
GM
KR
PB
OTH

WHOLESALE
SELF SERVICE
CHEMIST
FANCY STORES
GENERAL MERCHANT
KIRANA/GROCCER
PAN BIDI
OTHERS

The outlets are classified according to the channel segment.

W/S
KAC-R
MR
POP OUT

WHOLE-SALE
KEY ACCOUNTS
MASS RETAIL
POPULAR OUTLET

The classification is also done according to the service type.

M
CA
CR
D
O

MERCHANDISED
CASH
CREDIT
DISCOUNT
OTHERS

Thus the classification of O/L can be summarized as follows:

Other than Britannia, O/L classification by volume class by all other
companies is done on their own T/Os. Britannia does it on the industry.
This outlet classification is done for the following purposes.

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Determine service frequencies.

Working out Trade Schemes.
Working out merchandising inputs.
All companies have classified O/Ls by channels/types in a similar manner
only to focus their sell-in of the various categories they sell, eg - pushing
confectioneries & biscuits in the Paan-Bidi channel.

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Chapter 4: TM&D STRATEGIES

PARLE
Channel focus Primarily Grocery and wholesale
Selling-in: Focus on range selling and productivity. Evident from the fact that
every productive call should have at least 10 SKUs in the order and the
minimum productivity should be 70%. Product detailing and sampling are
actively used to aid this process.
Selling-out:

As

much

importance

to

selling-out

as

to

selling-in.

Merchandising is used to aid this process. FODs, signature displays and Jar
capturing for confectioneries are the most common tools used.
Relationship building: Parle is one company, which stands out in its belief in
trade marketing and its efforts at relationship building.
Width of coverage: Approx. 70% of the universe in Surat. However, the no.
of outlet: distributor ratio is lower vis--vis ITC that implies a higher sell-out
and therefore focus at the outlet level.

PERFETTI
Channel focus: In addition to the traditional channel of Grocery and
wholesale, Pan-bidi and stationery shops are also important channels.
Selling-in: Focus on range selling. Total no. of SKUs have been bunched into
two separate groups in order to aid distribution.
Selling-out: Primarily aided by advertising. Merchandising is done only in the
form of Jar capturing.
Relationship building: No focus in this field.
Width of coverage: Only service the key O/Ls (50% of Universe).

BRITANNIA
Channel focus: Primarily Grocery and wholesale. In addition, Bakeries,
chemists and eateries are also covered.
Selling-in: Minimum productivity advocated is 60%. However, this is not
strictly adhered to or followed up. Primarily aided by trade schemes and
consumer promotions.
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Selling-out: High focus on Consumer promos & FODs.

Relationship building: No structured effort observed on the part of the
company. Is entirely subject to the individual initiative of the Distributor.
Width of coverage: 60% of the universe. However, the no. of outlet:
distributor ratio is lower vis--vis ITC signifying a higher focus at the outlet
level and also because of the large no. of SKUs.

HLL
Channel focus: Primarily Grocery, General stores and wholesale. Other
channels include chemists and Pan-bidi shops as well.
Selling-in: Aided primarily by trade promotions and highest incentives for
salesmen to achieve distribution benchmarks. Minimum productivity desired
is 60% from every DS route.
Selling-out: Aided by media and consumer promotions. Show windows are
hired for the purpose of merchandising in addition to FODs.
Relationship building: Local sales promotional activities are used as
opportunities for interacting with the trade. However, these are not at frequent
intervals.
Width of Coverage :Objective is to maximize O/L coverage; target is to
cover 90% of universe.

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Chapter 5:
ORDER CAPTURE AND DELIVERY SYSTEMS
The order capture systems vary from company to company. Most companies
with a large no. of SKUs prefer to go in for the advanced order booking system as it
helps them distribute all SKUs more efficiently. This could be the reason why Perfetti
stands out amongst all the companies studied in persisting with the ready-stock
system as it has relatively smaller number of SKUs. However, in order to make sure
that the distributions of SKUs dont suffer, they have grouped all their SKUs into two,
each group being manned by a separate unit.

PARLE
Advance order booking for all outlets. However, frequency depends on the
class of the outlet.
CLASSIFICATION
A Class
B Class
C Class

FREQUENCY
Bi weekly
Once a week
Fortnightly

This has become effective from 1st February 2002. Prior to this all other outlets
irrespective of the classification were being covered on the weekly basis. As a result
of different frequencies for different type of outlets, they have different salesman
covering each class. The company was capturing orders on a ready stock basis till two
years back. However they shifted to the Advance order booking system in order to
distribute all SKUs evenly. The number of outlets covered per beat is as follows.

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CLASSIFICATION
A Class
B Class
C Class

P R O J E C T

R E P O R T

NO. OF OUTLETS COVERED

25
40
50

Orders are taken one day before the delivery.

BRITANNIA
Advance order-booking system for all outlets. The service is given on weekly
basis. All the outlets are covered on the route wise basis. Order is taken on the
previous day of the delivery. Generally the delivery is done through 5 wheelers.

PERFETTI
There is no system of advance order booking system in perfetti. The reason for
avoiding the advance order booking system is that a large proportion of orders are
cancelled among the total orders booked. It had grouped its total SKUs into two
groups in order to aid effective distribution.

HLL
Advance order booking systems is there for all the outlets. The frequency
depends on the class of outlets and no. of outlets per route.
CLASSIFICATION
FREQUENCY
A Class
Bi weekly
B Class
Weekly
C Class
Weekly
D Class
Fortnightly
E Class
Fortnightly
Thus the order capturing and delivery system can be summarized as follows:
All the companies with a large product range are into the order capturing.
Perfetti is into ready stock system but they have divided their already few
SKUs into two groups for more effective distribution.
Perfetti is into weekly coverage irrespective of outlet classification.

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Parle and HLL are into bi-weekly, weekly and fortnightly coverage as per the
outlet classification.
Perfetti sell their entire range in cash, Parle sell all biscuits in cash while
confectionary is in credit.
All the companies advocate a weeks credit but in reality it spills over to 15
days. However HLL gives 3 to 4 weeks of credit.

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Chapter 6:
ADMINISTRATION OF TRADE SCHEMES
PARLE
Trade schemes are of two types in Parle.
Trade Load.
Consumer promotions.
Both trade load and consumer promotions are decided by the marketing team
depending on the focus brand. Trade loads are basically incentives for the retailers, in
the form of discounts to buy more stocks and thereby increase the share of the brand
in the outlet and also to make it available.
The extent of trade load differs for the product categories. The maximum trade
loads on various categories are as follows.
Parle G
All others
Confectionaries

1.50 %
3%
5%

After the trade loads are announced, commitments of both primary and
secondary sales are taken from the distributors after deciding the growth to be
targeted. The target for the distributors is broken down by the Salesmen and by beats.
The targets are then tracked and followed up every week. Targets are set for both
sales and distribution. This is the only method used by Parle for administration of
schemes. Communication of schemes to all the outlets is ensured by taking review of
the no. of the retail outlets who have enrolled for the schemes and the sales thereof.
Consumer promotions are again decided by the Marketing team and every
distributor is given a fixed allocation of the promotional product, which is to be
proportionately distributed across all the outlets.
Whether all the retail outlets have received the promo product is ensured
through the periodic review of the sales and list of the outlets to which it has been
supplied.

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PERFETTI
Trade schemes are of two types:
Trade load.
Consumer Promotions.
Both trade load and consumer promotions are decided by the brand team.
The extent of the trade load again differs across brands. The maximum trade loads
in various categories are
Alpenlible
All others

<2%
5- 7 %

After deciding the percentage growth targeted for the brand through schemes,
the target for the territory is broken down by distributors, by Salesman by routes. The
same is then tracked every week and reviewed.
Ensuring whether the communications has reached all the outlets is done be
reviewing the no. of retailers who have availed of the scheme.
Consumer promotions are again decided by the brand team depending on the
brand to be inputted and the objective. Fixed allocations are given for a promo
product to each distributor and distribution of the promo product is ensured through
review of the list of outlets to which the SKU has been supplied.

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BRITANNIA
Trade schemes are of two types in Britannia also.
Trade load
Consumer promotions.
Both trade loads and the brand team decides consumer promotions. The extent
of the trade load differs from brand to brand. Normally it is between 3 5 %. After
deciding the percentage growth targeted for the brand through the scheme, the target
for the territory is broken down by distributors, by salesman and by routes. The same
is then tracked every week and reviewed.
Consumer promotions are again decided by the brand team depending on the
brand to be inputted and the objective. Fixed allocations are given for a promo
product to each distributor and distribution of the promo product is ensured through
review of the list of outlets to which the SKU had been supplied.
Generally whenever there are consumer promotions going on, there is no trade
scheme.

HLL
The trade scheme is generally decided by brand team and then it is
communicated to field staff. However, the concern TSI can restructure the scheme
within the given budget. But, in return the TSI has to ensure that same sales take
place, which the company has expected by inputting that scheme.
After deciding the percentage growth targeted for the brand through the
scheme, the target for the territory is broken down by distributors, by salesmen and by
routes. The same is then tracked every week and reviewed.
Consumer promotions normally take place in the form of consumer oriented
schemes, consumer contact at the outlet and free sampling.
The brand team again decides these promotions.
The administration of the trade schemes can be thus briefly summarized as
follows.
Schemes are basically trade and consumer promotions and they are
administered by and large in a similar fashion across all the companies.
Trade promotions are generally referred to as Trade Loads.

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The extent of the trade load differs for different cos. depending on the
objective which could be either to garner extra sales or to enhance distribution.
Sales or distribution targets are set depending upon the growth percentage to
be achieved.
Targets are broken down by distributors, by salesmen and by beats.
These are then tracked and reviewed on a weekly basis with the help of the
dealer cards.
For consumer promotions, every Distributor is given a fixed allocation of the
promo SKU that is to be proportionately distributed across all outlets.
A review of the same is done through the dealer cards to ascertain the number
of outlets to which the SKU has been supplied.
In addition to these two types of promotions, consumer contact and special
offers are also done at selected outlets for shorter durations for specific
objectives.
Some companies like HLL give their TSIs more flexibility to modify the
schemes by O/Ls.

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Chaper : 7
WORKING NORMS FOR TERRITORY IN CHARGE.
The working norms for the TSI in both Parle and Perfetti have been framed
keeping in mind that the TSI is the only resource from the company in the territory for
ensuring sales growth, achieving distribution benchmarks and T&D inputs, and
thereby ensure the companys objectives are achieved. Hence, quite a few of the
working norms for the Territory in-charge in both Parle and Perfetti are similar.

PARLE
The territory- in- charge is supposed to work on all the A- class outlets in the
territory and is supposed to contact them once in a month. In addition, he also calls on
the other classes of outlets but is not on a fixed frequency.
The TSI while working in the market is supposed to lead by example. The
sales made by the TSI in any outlet should have at least 15 brands, which should be
proportionately distributed.
All T & D inputs to the field force are administered while working in the
market with the resource. In addition, the TSI checks on the service levels and
freshness of products at the outlet level and redresses grievances if any of the outlet.

PERFETTI
The daily norm for the Territory-in-charge is to compulsory call on 40 outlets,
out of which 25 have to productive. While working in the market the TSI is to ensure
that all the brands are equally distributed in the outlets. T & D inputs to the field force
particularly the Distributor salesman and the TSI while working in the market with
the salesman and the TSI is supposed to lead by example and show the salesman how
to sell and distribute various brands. Therefore, all the brands have to be
proportionately represented in the sales made by the TSI.
While working in the market, the TSI is to check on the service levels of the
distributor and the availability and distribution of various brands and take the
corrective measures where necessary. The TSI is also to ensure that the market
working is as per the norms of the company and those samples of products and
presenters and proper detailing to the outlets is taking place.

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BRITANNIA
TSI in Britannia is basically responsible for leading the distributors sales
team to achieve sales targets and growth as per the companys norms and therefore
achieving companys norms and therefore achieving objectives. He himself sets
example by working in the market, capturing orders and making all the brands.
He is supposed to work one route at least daily, and achieving productivity in
at least 25 O/Ls. Moreover, he is also responsible to make sure that WDs achieve
sales target for primary as well as secondary sales.
TSI also works with salesman and Pilot salesman, and leading by example
shows them how to sell and distribute various brands and SKUs. He is also
responsible for the on-the-job training for WD and his sales force.
Also, TSI looks and checks WD records, freshness of goods in markets and
overall administration of Schemes/Consumer promos at the territory level.

HLL
TSI in HLL is supposed to make at least 40 calls per day with 60 %
productivity. While doing so he has to sell maximum no. of lines and has to fill up his
DSR pass book.
TSI also works with salesman and pilot salesman, and leading by example
sows them how to sell and distribute various brands and SKUs.
He is also responsible for the on the job training for WD and his sales
force.
Also, TSI looks and checks WD records, freshness of goods in markets and
overall administration of Schemes / Consumer promos at the territory level. He
conducts regular classroom session for WD team for T & D. He is also responsible for
primary and secondary sales of WDs.

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Chapter 8: MERCHANDISING
Merchandising provides you with an opportunity to assist your customer in
selling out and reaching more consumers for your brands.
The strongest point at which to influence the consumer is the retail O/L. At this point
you have the potential to co-ordinate the presentation of products, POP material and
lighting to our best advantage in order to attract the consumers attention.
Thus at the retail O/L. the company should find ways to attract the consumers
attention and move them to buy the companys brands. Merchandising is one way to
attract the attention of consumers and communicate to them.
Merchandising conveys the message visually. The company wants to inform
the consumer about different features of brands (images, price, etc) by arranging
shelves, placing different merchandising materials (posters, dispensers, etc) in a way
that moves consumers to buy the companys brands.
Merchandising is defined as any activity done inside the shop that helps the
SWDs and the retailers to sell the product or motivates him to push the product.
A lot of accent is put on facings, POP and displays for both Biscuits and
Confectionaries and is also detailed to the O/L at all the points of time.
In order to help merchandise better, there is an exclusive merchandiser at
every WD point who performs these functions. The merchandiser accompanies the
Salesman on their beats by turns. Now - a days, a new practice has come into being.
The merchandiser visits the O/Ls one day after the delivery of the orders brought by
the DS so that the merchandiser not only does the activity of merchandising but also
keeps the track on the availability of the range.

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PARLE
The merchandiser on his beat strives to maximize shelf displays in all the
O/Ls. in addition to this, at the time of launch of a new product or in the case of a
Drive Product, SIGNATURE DISPLAYS are put up across all the routes. Signature
displays are basically displays of the same size and same pattern put up across all the
O/Ls in order to arouse the curiosity and prompt trials from the consumers. However,
none of the displays are paid by the company and are achieved solely through the
rapport and the good will of the merchandiser, salesman, Distrtributor or Company
with the O/L.
In addition to facings and POP, permanent merchandising is also done in the
form of Glow signboards at Exclusive Parle Shops for which they pay a rental not
exceeding Rs. 200 per month. However these are very limited in number.
In the case of confectionaries, since facings are not possible because of the
nature of the product, the merchandiser tries to maximize the no. of jars in the shop
used for the confectionaries by transferring the confectionaries kept in poly bags to
jars. The objective of the merchandiser, the pilot salesman or TSI is to add one extra
jar for the Parle on each visit to the O/L.
Further, in the process of jar capturing the company has started Jar packs for
its confectionary brands instead of poly bags.

PERFETTI
Perfetti does not have an exclusive Merchandiser for performing the task of
merchandising. It is the salesman who performs these functions. Since Perfettis only
products are confectionaries, merchandising is done in the form of Jar capturing
which is similar in process to that of parle.
The company to a large extent packages its products in jars in order to aid the
process of Jar Capturing.
In addition to POSM, permanent merchandising is done in the form of Glowsign boards which is given out maximizing visibility. The rationale for putting up
GSBs is quite similar to the one used by ITC.

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BRITANNIA
There is no exclusive merchandiser in Britannia. It is the salesmans job to put
a POP at the O/L.
However a lot of emphasis is given on the shop based merchandising
activities. It is in the form of Glow signboards and dispensers. The rent of these glow
signboard is in the rang of Rs. 200-400 depending upon the O/L. profile and size of
glow sign.
Unlit on shops are also put up as a part of merchandising. Displays are not the
regular practice in Britannia. However, they are there during the time of consumer
promotions.
FODs are given a lot of importance.
Now a days, the practice of giving displays in Britannia has changed a lot.
The O/Ls. are given the displays not on the fixed value of Rs. but the amount of Rs.
given for displays is variable depending upon the amount of purchases done from the
company. 3 4 % of the total amount of purchases is given as displays. This is good
practice done by Britannia in order to motivate SWDs for giving displays.

HLL
HLLS merchandising activities comprises of POSM, Displays, dispensers and
in shops. They do not put on shops. These activities are done by exclusive
merchandiser appointed by the WD. They have a lot of displays comprising of
backing sheet, POSM and the product itself. They have also paid displays only of
product facings.
FODs are given a lot of emphasis in HLL. They use lot of danglers and chain
pendants as POSM.

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Chapter 9: TRAINING & DEVELOPMENT INPUTS

Structured training and development inputs in all the Cos. studied are confined
to the AE and the AM who then cascade it down to the field-force on-the-job.
However, HLL is the only Co. that conducts regular classroom sessions for its
salesmen.

FOR DS
By WD SupervisorsOn the job training:- Six days a month for each DS during distribution
calls.
Areas to be covered are
Product detailing.
Accurate order capturing.
Productivity
Importance of visibility with respect to FODs and POP
Negotiating skills for selling in space / space booking
Rapport building with the retailer

Off-the-job training: Review sessions by Supervisors once a week

collectively for all DSs on problem areas of the above.

By AE
To take a classroom session once every three months on Effective
communication, selling skills, relationship building and other TM&D related issues.

For WD SUPERVISORS
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BY AEs,
On-the-job - once a month for each supervisor which will

cover the

following areas:
Negotiation skills
Relationship building
Merchandising
Off the job: - along with DS once every month as mentioned above.
TRAINING

&

DEVELOPMENT

OF

VARIOUS

COMPANIES

STUDIED ARE AS FOLLOWS.

PARLE
There does not seem to be any structured training and development inputs laid
down for the Salesman, pilot salesman or the TSI. T & D inputs are only on the
job inputs and no off the job or classroom sessions are held for any rung of the
field force.
On the job training inputs basically relate to
Range selling
Visibility
Merchandising
Time planning
Objective Setting
Target Setting
Rapport building with the trade
Order Capturing.

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PERFETTI
Training and development inputs to any rung of the distribution network are
very much on the job and no classroom sessions are held. T & D inputs basically
relate to the following skills
Order capturing
Merchandising
Time planning
Freshness of Stock
Objective setting
Target setting
Rapport building

BRITANNIA
There does not seem to be any structured training and development inputs laid
down for the Salesman, pilot salesman or TSI. T & D inputs are only on the job
inputs and no off the job or class room sessions are held for any rung of the
distribution network.
On the job training inputs basically relate to
Range selling
Merchandising
Time planning
Objective setting
Target setting
Rapport building with the trade
Order Capturing

HLL
Although there is no structured way of training and development inputs for
pilot salesman, there are weekly/monthly classroom sessions taken by TSI at the
distributor point. However, the company introduces a formal training and
development programme for salesman and pilot salesman at regular intervals.
On the job training inputs basically relate to

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Range selling
Merchandising
Time planning
Objective setting
Target setting
Rapport building with the trade
Order capturing

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Chapter 10: TRADE RELATIONSHIPS:

Trade relationship is playing most important part in Trade Marketing. The
customer relationship Management (CRM) is the key for maintaining the Trade
Relationships. Trade meets should be conducted by WD, AE and AM at regular
intervals to get the trade feedback and to solicit greater involvement of the trade in the
business.
The objective would be to enhance rapport between company and the trade.
Events like new product launch, new brand launch, new SKU or any other
scheme implementation could be used effectively for this purpose.

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Chapter 11: ANALYSIS OF THE QUESTIONNAIRE

The primary objective of this questionnaire is to ascertain from a cross section
of wholesale O/Ls as to which are the factors that they rate as the best for increasing
the sales in the wholesale channel.
However prior to inquiring into this, it is necessary to understand the elements
that constitute service from the traders point of view. Based on the interaction in the
wholesale channel thus far, the following factors have been identified as the key
parameters for increasing the sales.
Q. Which is the preferred company of traders in confectionary category?
PREFERRED COMPANY

13%

8%

79%

PERFETTI

HLL

ITC

Q. Which is the preferred company of traders in biscuits

category?

PREFERRED COMPANY
14%
28%

PARLE

58%

BRITANNIA

ITC

Q. Do you pass on the trade scheme to the consumers or not?

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Generally most of the traders pass on the trade schemes to the customers so
that they can sell out more quantity. Moreover passing on the trade schemes makes
the overall price less thereby increasing the sales tremendously. Thus the trade
scheme should be constantly floated even after the launch of the product in order to
continue the sale of the product.
Q. How much credit you receive from the wholesale dealers?
A.
PARLE
Generally PARLE G is sold on the cash basis but other brands of Parle are
given approximately credit period of one week.

BRITANNIA
One week to fortnight period is given as credit in case of Britannia.

PERFETTI
Perfetti gives the credit of about one week. However, it delivers with ready
stock so traders are also giving them cash on delivery.

HLL
Generally HLL gives credit for 3 to 4 week. This may spill over to one month
by extending and giving various reasons and excuses.

Q. Are the retailers and the traders aware of the brands that you are selling in
confectionary category?

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Name of the
Company

Awareness among Traders

50

HL L

40

IT C

80

PERFETTI
0

20

40

60

80

% of awareness

Q. Are the retailers and the traders aware of the brands that you are selling in
biscuits category?

Name of the
Company

Awareness among Traders

100

BRITANNIA
50

ITC

100

PARLE
0

20

40

60

80

100

% of awareness

Q. Does the Company give you any incentive schemes or offers for selling more
or not?
A. All the O/Ls have replied in negation for the above-mentioned questions. Thus a
specific amount of target should be given to the traders so that they can sell more
goods. More over each and every O/L. should be visited by the DS with the last
months sales figures so that they can set targets there by giving them incentives for
selling more.
Q. Do you think displays are important for increasing sales and brand
awareness?
A. Displays are important means of trade promotions because with the help of
displays we can grab more customers. Moreover Britannia is giving displays on the
basis of 3 to 4 % of the total amount of monthly sales of that particular O/L. Thus by
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giving displays on monthly Loads, we can be assured that sales will increase as a
result of the traders greediness to obtain more amount for the displays done in the
market.
Q. What is the personal interest in increasing the business at your point? A cross
section of 50 O/Ls were taken for the survey.

Both of them

10

Margin

11

Consumer's
Demand

29
0

10

20

30

Q. Should the consumer promotions and trade scheme be given to the consumers
and trade?
A. The semi wholesalers first question in trade marketing is for trade scheme or
products with consumer promotion. When a DS visits to the trader, the trader is
willing to place the products that offer the trade schemes or consumer promotion
goods. Therefore adequate trade schemes should be formulated in order to increase
the sales.

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Q Does the POP materials and Advertising play major role in increasing the
sales?

no
22%

yes
78%

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Chapter 12:
RECOMMENDATIONS FOR SALES FORCE
Following are the recommendations that should be observed in order to increase the
sales

1. MARKET PENETRATION
Market penetration is of utmost importance for effective distribution.
Generally 75 80 % of the universe should be covered in order to achieve the
targeted sales. Therefore more no. of O/Ls should be covered in order to increase the
sales substantially. From the work practices observed by the parle in the market, it can
be stated that more attention should be given to the retailers instead of wholesalers so
that focusing retailers can increase consumer demand. This can indirectly increase the
sales of the wholesale channel.

2. CLASSIFICATION OF OUTLETS
Each and every competitor company of I T C has classified all the serviced
O/Ls in the command area according to turnover, channels, type of O/Ls or type of
services given to the O/Ls. I T C has also classified its O/Ls in the tobacco division
according to no. of cigarettes sold by the O/Ls. Thus there should be classification of
each and every O/Ls so that effective penetration of the companys products can be
done. The rationale behind the classification of the O/Ls is as follows.

Different types of O/Ls demand different types of schemes. The

owners of different O/L want them to be treated in a different way by
the company so that they feel they are satisfied by their existence in the
market.
This feeling to the owners of those O/Ls indirectly makes our DS to
get more loads thereby increasing the sales.
Key O/Ls and Institutional O/Ls bring most of the sales of the product in the
WD TOWN. So special schemes should be made in order to gain sales from these
O/Ls. The command area studied has varied no. of institutional O/Ls which help the
company to increase the sale. Thus prompt services should be given in these O/Ls.
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3. ORDER CAPTURE AND DELIVERY SYSTEMS

Order capturing systems for confectionary and biscuits.
Frequency of service to be increased from once/week to twice/week, for all O/Ls.

4. STOCK LEVEL SYSTEMS

10 days inventory should be available at major outlets.
For smaller outlets and medium scaled outlets, the stock should be
maintained as per the potential of SWD and attempts should be made
to convince them to keep the minimum level of the inventory decided
by the AE.

5. FRESHNESS
The Grocery channel and its consumers view the freshness factor for foods
much more closely than a Panwala does it for Cigarettes.
The above is reflected in the following
o Feedback from the retailers contacted
o Practices followed by all companies to ensure freshness
Practices followed by all companies (barring HLL) are liberal w.r.t stock
replacement, though there are budgets.
The D&D budgets range from 0.25% to 0.3% of WDs annual T/O
Stock rotation & FIFO are religiously practiced by all field force.
Parle has the system of all WDs reporting in a prescribed format of any
stock of biscuits > 3mths from the date of manufacture lying in his
godown.
The freshness norms that are followed in the market place are
o 6 months for the case of biscuits.
o 12 months for the case of confectionary
However each of the following persons have to take due care for
maintenance of freshness in the market.

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The DS is responsible for maintaining the freshness of the goods sold by him
in his route. In the market, there are complains about the freshness of the sugar boiled
candies. According to them, most of DS do not check the freshness and the stocks are
not replaced even after the date is expired. So the stocks at the fast moving outlets
should replace stocks at slow moving outlets.

SUPERVISOR:
The supervisor is responsible for maintaining the freshness of entire stock of
foods during distribution call.
Generally, the frequency of the Foods Supervisor is once a month at every
outlet.

WD:
Reports on code dates of foods from key outlets to be sent at fixed
frequencies, like once a month or as per the schedule fixed.

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6. MERCHANDISING
DS: Responsible for maintaining pre-decided space in O/Ls for
foods (could be paid displays, space for FODs, place for dispenser,
etc.)
Put up the routine POP.

WD SUPS: Supervisor to monitor and review status of FODs during

distribution calls with the salesman.
Put up routine POP
Negotiate space for displays, FODs.
Put up displays, dispensers, etc.
Checks whether the DS makes the calls quantitatively and
qualitatively as per the schedules.

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Chapter 13:
PLANS FOR INCREASING THE SALES
1. POP MATERIALS & ADVERTISINGS
There should be extensive use of POP materials like posters, banners, etc. For
biscuits category of ITC, the characteristic of product differentiation is observed. The
two biscuit flavors Butter Scotch Cream and Marie Orange are unique of its types in
biscuits segment. Therefore ITC should take fair advantage of its strength. Masses of
target market are lacking this brand awareness. This should be highlighted by making
advertisements in the form of handouts printed in local newspapers so that masses of
target market can be focused easily and with low cost.

MERITS:
In marketing, we have to establish a relationship between a brand and our
retailers and consumers. Advertising helps us to establish this relationship.
More no. of retailers and consumers will come to know about the brands
thereby increasing consumer & retailers awareness substantially.

DEMERITS
Generally life of the POP materials like posters and danglers is very short and
purpose of advertising is not achieved by use of posters.
There can be wrong impression of the brand in the minds of retailers and
consumers if the product is not communicated properly and effectively.

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SUCCESS RATE
The success rate of the POP and Advertising depends upon how effectively the
merchandiser uses his wit to attract the attention of the retailers and consumers
Merchandiser should select the location and design of placing the POP
materials in such a way that maximum no. of retailers and consumers are able
to grab the attention of the brands.

2. DISPLAYS
Displays are cost incurring trade promotion tool with no guarantee to have
considerable increase in sales. The marketing team of the companies generally
designs these types of trade promotion tools and a fixed budget is allocated as per the
requirement. In this era of competition every product has to shout ALUOD to be
noticed in the market

MERITS
Those retailers who are not aware of the brand will get brand awareness that
will result in new sales at the retail O/Ls.
Those retailers who have forgotten the brand will switch over to the brands
shown in displays.
Brand loyalty will increase when the brands are shown in display.

DEMERITS
Company has to bear extra amount of expenses in order to drive this option.
Therefore accurate planning is required in order to give displays.

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SUCCESS RATE
The success rate of displays depends upon the type of the area selected for
display. Often the purpose of the display is not solved when attentionattracting space is not selected. So utmost care should be taken in order to
select the space for the displays.
Proper visual communications & Eye catching ideas are required To make any
product stand out In the age of fast information, Displays are the only way to
project the right image of the product

LIMITATIONS
Displays cant be placed at O/Ls if some competition brand has made some
prior agreements.

3. CONSUMER PROMOTION GOODS

Schemes for the consumers can be floated around in order to attract more
consumers and increase the customer base. Many times SWDs dont pass on the
consumer schemes to the retailers and consumers in order to increase their margin.
SWDs will find out those goods that are giving more consumer schemes.

MERITS
SWDs net purchasing price may decrease considerably which may compel
them to sell the goods at lower price than the competition brands.
This will again help to sell out less competition brands, as SWDs will not
purchase more no. of competition brands.

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DEMERITS
Once the consumer offer is stopped, it may be difficult to sell in and sell out
those goods as some other competition brands might have rolled out schemes
in order to attract more purchases.

SUCCESS RATE
Compared to other wholesalers promotion tools, this tool has found to be
more successful as the net purchasing and selling price can be decreased
considerably.
This will automatically increase the overall selling in and selling out of the
goods.

4. SALES FORCE PROMOTION

Salesmen that sell goods to the wholesale channel may be motivated to sell
more goods by offering them bonuses, incentives and targets for selling a fixed
quantity of goods.

MERITS
Extra amount of costs in incentives and bonuses are incurred only when the
company is able to achieve targeted amount of sales.
The returns on investment are fixed because sales force will be given bonuses
and incentives if and only if the required level of sales are achieved.

DEMERITS
In order to achieve the bonuses and incentives, the salesmen will dump the
extra amount of goods in those O/Ls which do not have the capacity to sell
more than a fixed amount of goods.
This will result in dead stock if freshness is not maintained and transfer in and
transfer out from one O/L to other O/L is not done at the subsequent phases
after the sale.

SUCCESS RATE
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If the sales force will not realize the incremental benefits availed to them by
increasing the sales, then they will not work hard to increase the sales to the
targeted level.
Therefore appropriate of amount of confidence should be built up in the minds
of sales force to sell more products. If the salesmen are willing to sell the
products, then half of the task is assumed to be completed.

5. TRADE LOAD
Generally ITC does not have any trade loads schemes offered till now. In the
universe we have different SWDs with different capacities to purchase the goods. The
schemes formulated for all the SWDs are same.
SWDs are demanding various trade offers for varied trade Loads. So we
should have various price slabs that will increase the sales of the goods.

MERITS:
SWDs purchasing stocks at lower denomination of the slab will be tempted to
buy the goods sold at higher slab with large amount of overall margin.
Once more amount of our stocks are inventoried at the SWD point, the SWD
will not buy the competition brands,
By using this tact, brands of ITC will get a chance to be in the trial stage after
the awareness stage of the product communication.

DEMERITS
Burning problem of price discrimination may arise because of giving goods at
different rates to different SWDs. Therefore retailers will buy goods from
those SWDs who will give them at lower rates compared to other sources.
As more amount of trade load is inventoried at the SWD point with lower
purchasing capacity, ultimately WDs may suffer as the SWDs may ask for
more no. of credit period.
Increase in credit may however lead to bad debts resulting in resistance from
WDs to incorporate the schemes on trade loads.

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SUCCESS RATE
Because of price discrimination, implementation of this promotion tool can
prove to be great failure in market with high density of SWDs.
The success rate of this scheme is dependent on the final consumers. If the
final consumers like the taste and quality of the product, then the chances of
switch over from their loyal brands to ITC brands are increased tremendously.

LIMITATIONS
Purchasing capacity of the SWDs may be a major limitation of incorporating
the scheme.

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Chapter 14: MODEL FOR INCREASING SALES

1. TRADE SCHEMES
Trade schemes can be incorporated in three ways

A. OFFERS IN SLABS.
There are certain SWDs in every market who provide most of the sales of WD
town. For these special O/Ls. we can formulate such trade loads schemes so that we
can get adequate amount of the sales thereby increasing the sales in substantial
amount.

B. LINKAGE OF VISIBILITY WITH CASH DISCOUNT

Trade schemes should not only be given on trade load but if the schemes on
trade load can be linked along with the visibility and cash discount then there can be
effective implementation of trade load so that sell out can be done easily. If the

C. INCENTIVIZATION OF TRADE ON LAST MONTH SALES

Two routes can be selected for studying the incentivization of the trade load
schemes. One route of any SWD DS can be selected for this plan. Previous months
sale can be obtained from the records and the sale after implementation of above
mentioned trade schemes can be studied in order to see the effect of giving the trade
schemes. If the sales compared to the previous month is increased then the pre fixed
amount of incentives can be offered based on the percentage rise in the sales of the
schemes. If there is no increase or decline in the sales, then no incentives should be
given and those O/Ls should be motivated to increase the sales so that they can avail
the advantage of increasing the sales. Finally the results of test route and observed
route can be compared to see the effectiveness of the model.

2. INCENTIVISATION OF THE DS
The objective of this model is to increase the sale of companys products and
simultaneously provide the growth to the DS who is contributing a major participation
in increasing the sale of the company.

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DESCRIPTION
The salary break up for the DS can be done in basic salary, petrol allowances
and commission earned on the sale of the goods.

The basic salary and petrol

allowances are fixed for every month and commission earned is variable with respect
to the amount of goods sold. Over and above this, one more component in the salary
of DS can be included. This can be called as incentive on achieving the following
heads.
Productive calls
Range Selling
Quantity wise Targets
Value wise Targets

PRODUCTIVE CALLS
Productive calls can be defined as percentage of no. of O/Ls visited on a route
from which a DS gets the order. Incetivisation can be done on having more no. of
productive calls or a certain fixed amount of productivity made on every route. The
productive calls can be tracked daily through out the month and at the end of the
month incentives can be given on average of percentage of productive calls.

RANGE SELLING
In productive calls we can include the range selling. It is selling all the brands
& if possible all the SKUs in that category or division. If a DS sells one particular
brand like candyman and does not sell Mint-O and biscuits and other goods of that
channel, then the companys motive of achieving target is not fulfilled. Thus DS
should be motivated to sell all the brands and not sell one particular brand whose
demand is natural in the market.

QUANTITY WISE TARGETS

Targets can be given on the basis of the certain amount of quantity sold by the
DS. The targets can be fixed for any duration of time. It can be fixed for a week, for a
month of for a year. Generally targets are fixed for the month and at the end of the
month if the quantity wise targets are achieved then additional remuneration is paid to
the DS so that he is motivated to earn more money. For making the DS to work
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sincerely for achieving targets, a negative remuneration on fixed salary should be

done. This will motivate the DS to increase the sell ins.
Utmost care should be taken in giving incentives for achieving quantity wise
targets. Fixed amount of incentives should be set at the end of the month beyond
which even if the DS sells the additional quantity of any particular brand, he will not
be allocated on proportional basis, i.e. the upper limit for the incentives should be
fixed. That means his target is to sell 100 units of any particular brand and if by his
skill or market pull of that brand, he is able to sell 400 units, then he will not be given
4 times incentives on that product and the incentives are given keeping in mind the
upper limit of the incentives because that will be ambiguous and we have to avoid all
these ambiguities

VALUE WISE TARGETS

In certain cases the DS is not required to sell any fixed quantity of a particular
brand of products, but he is required to sell the products in terms of values, i.e. the DS
has to make the turnover of certain amount. Generally this type of practice is not done
because different products have different margins and company is not interested to
sell only a particular product but on an average the performance should be good in all
the products selling. Therefore these types of targets are generally not given to the
DS.
As mentioned above in quantity wise targets, care should be taken to limit the
incentives given to the DS. If the DS sells more than the set value of the targets, he
should not be given on proportionate basis.

MODUS OPERANDI
Two routes can be taken in order to study the effect of this model. First route
can be taken as the test route on which we will implement the practices of said model.
And on other route we will not implement the practices. We will simply observe the
route as the work is done in the normal course of time. Care should be taken that the
two routes selected for study should be of the same WD town and same locality or
tastes and preferences of SWD should be same so that there wont be any ambiguity
in making the tests. Impact should be also given on the merchandising, visibility
status, in which slab of the Trade Load scheme the SWD is purchasing the goods and

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what value of the goods are being purchased so that required focus on any particular
tool can be made in order to increase the sales.
Two routes say Monday route on which the above model is implemented and
other route say Wednesday on which the above model is not implemented. The data
can be tracked for the two routes for one month i.e. say four visits per month and at
the end the month the analysis and comparison should be made with the Last months
sales of the test route so that change in the sales quantity and final results can be
found out. The whole model can be summarized as below

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Chapter 15: CONCLUSION

The market for food is simply huge and estimated to be Rs 500,000 crore
annually. It is growing for two main reasons: population growth and improvement in
consumers spending ability. Hence effective utilizations of resources in Food
Business will increase the profit of the company tremendously.
Looking to the work practices of different companies in Biscuits and
Confectionary category, it is concluded that I T C has still to incorporate many
changes in its work practices that are recommended in the previous chapter.
Moreover, biscuits and confectionary industries are highly affected by the
unbranded products sold in the market. Adequate measures should be taken and
strategies should be formulated in order to overcome this problem.
Brand awareness is highly lacking among consumers and traders. In order to
achieve high proportion of brand awareness, attack should be made from all the four
sides. Consumers, traders, SWDs & all the relevant channels of marketing should be
targeted for brand awareness.

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T R A I N I N G

P R O J E C T

R E P O R T

Chapter 16: BIBLIOGRAPHY

Kotler, Philip. Marketing Management. New Delhi: Prentice-Hall of India
Private Limited, 2003.70699
Introduction of I TC Foods Division, http://www.itcportal.com/ July 2004
(updated),
19-30 May 2004.

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