Sr. No. Topics Page no.

1. Introduction 2

2. Brand image helps in economic growth 7

3. SWOT 8

4. Purpose of sales organisation

5. Distribution channel

6. Recruitment

7. Sales role

8. Budgeting planning

9. Compensation

10. Corporate strategies

11. CSR

12. Conclusion

1
As a Company deeply rooted in India’s soil, ITC is inspired by its vision to serve larger
national priorities.
● ITC was incorporated on August 24, 1910 under the name Imperial Tobacco
Company of India Limited. As the Company's ownership progressively Indianized,
the name was changed to India Tobacco Company Limited in 1970 and then to I.T.C.
Limited in 1974.
● Company's multi-business portfolio encompasses a wide range of businesses -
Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards &
Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery
and Personal Care. ITC's ability to leverage internal synergies residing across its
diverse businesses lends a unique source of competitive advantage to its products and
services.
● ITC is one of India's foremost private sector companies and a diversified
conglomerate with businesses spanning Fast Moving Consumer Goods, Hotels,
Paperboards and Packaging, Agri Business and Information Technology, with a
Gross sales value of ₹ 76,097.31 crores and Net Profit of ₹ 15,136.05 crores (as on
31.03.2020).

● Over the last decade, ITC's new Consumer Goods Businesses have established a
vibrant portfolio of 25 world- class Indian brands that create and retain value in
India. ITC is the country's leading FMCG marketer, the market leader in the Indian
Paperboard and Packaging industry, a globally acknowledged pioneer in farmer
empowerment.
VISION :
Sustain ITC’s position as one of India’s most valuable corporations through world class
performance, creating growing values for the Indian economy and the Company’s
stakeholders.

Mission :
To enhance the wealth generating capacity of the enterprise in a globalising environment,
delivering superior and sustainable stakeholder value.

2
3
 ITC’s Business Portfolio
Spanning all three sectors of the economy – Agriculture, Manufacturing and Services

4
 ITC’s World Class Indian Brands

Negative publicity for smoking could affect its cigarette segment.  

5
Great brands, along with customer satisfaction, are also about powering national economic
growth. ITC creates value by creating intellectual capital, boosting R&D and innovation, and
creating large-scale livelihoods by empowering value chains, investing in physical
infrastructure and expanding markets.

● ITC is today proud to have created over 50 energetic and popular brands across
categories that delight nearly 140 million households.

● ITC's hotels business also contributes to the country's tourism landscape and
livelihood creation through its other high quality offerings Its hotels have pioneered
the concept of branded cuisine in India with globally acclaimed restaurants
.

Purpose of the sales organisation

● Sales organization has groups of people handling different activities like distribution,
advertising, selling etc. It works to achieve the sales objectives, like increasing sales
volume, maximizing profit, market share of the company. It specifies the
responsibilities and duties of the salesperson and coordinates their activities with
other departments. Thus, sales organizations help the company in achieving targets
and building coordination with sales personnel.
● The organization of the sales department is based on the nature and size of the
organization, market coverage strategy, and the level of competition and other such
parameters.
● The organizational structure is relatively fixed, with a formally defined set of
relationships within the organization. Though the organization structures look rigid,
they should respond to the changes in the competitive environment and should be
adaptable to the changing situations.

6
Hierarchy of ITC

● ITC follows Line Structure. In a pure line organization, the chief executive does the
decision making and decisions flow down the line for execution. The chief executive
has all the authority over the sales function. Many small sales firms have such a
structure.
● In these organizations, decisions are made faster, overhead costs are lower, and sales
people need to follow the command. These kinds of organizations are called one-man
show organizations.
● But, this kind of person-centric organization suffers from the daily operations of the
executives, as they have no time to do sales planning and are busy in achieving sales
targets set at the top.
● Sales force used here are all generalists and basically there is one district manager
under whom there is one assistant manager and they employ 4-5 area managers or
executives and the number of salesmen depends on the area that they have to cover.

7
1. Estimating cost-
Cost estimation is a key challenge for many companies. In the absence of proper consultation,
business estimated implementation costs, licensing costs and other similar costs can make
things complex.

2. Choosing the right partner

Since Salesforce is a combined platform for sales, marketing and customer service
departments,the company would want to carefully plan the implementation process.

3. Lacking internal experts

Hiring Salesforce experts is extremely important, as they know the platform and can carry out
a seamless implementation process. In fact, it would be even difficult to map the existing
business process without their involvement.

4. Dealing with data migration

Migrating data can be tedious and painful, as it requires the mapping of data from one system
to another. Be it managing unique IDs, duplicating data, adding custom fields or managing
access control, they are all part of the challenge.

5. Implementing Salesforce
Salesforce CRM can turn out to be very challenging if it’s features and capabilities aren’t
well understood. The availability of new features does not necessarily mean the company
must incorporate them into the business.

6. Delivering consistent training

User training is an important aspect in order to tap into opportunities provided by the
Salesforce platform. Lack of training will bring the Salesforce implementation to a stagnant
level.

7. Managing centralized records in Salesforce

Maintaining the Salesforce platform after its implementation can be challenging. The main
purpose of Salesforce is to empower the company with tracking, moderating and executing
capabilities to manage the organizational processes.

8. Searching for ongoing support

It is important to optimize and automate several processes for continuous improvement. It
requires having the right skill sets for modifications like setting automation rules,
customizing particular business processes and solving storage and encryption needs as per
organizational requirements.

8
On Job Training :

9
Information System
● Information flow plays an important role in communicating strategies from the top
management to the ground staff who are responsible for the ultimate implementation
of these strategies.

● The Information flow in ITC generally follows a hierarchical structure where it

percolates down from the top management to the area executives through several
layers. Most of this information flow is in the form of changes in strategy that
ultimately changes to volume of sales and other review metrics.

● The information flow particularly in the cigarette business flows from the top to
bottom of the organizational pyramid. It starts with the General Manager. This
information is typically in the form of strategy measures that the top management
takes.

● An example can be a strategy communication from the general manager to improve

the market share in the cigarette business. In such a case the next line manager who
would typically be the product managers would translate this strategy into
implementable product strategies (e.g. new product development or cutting prices
based on the particulars of the strategy). In case of simpler strategies like improving
sales, zonal managers would communicate this strategy. From the zonal managers this
information will flow to the branch managers who typically manage specific branches
within a zone. This information next flows along to the assistant manager and from
there to area managers who deal with the wholesalers in implementing these changes.
In the organizational hierarchy the information flows to the area executives who
interact directly with the retailers. After this initial information flow there is data flow
in the reverse direction as well to help the managers to evaluate the attainment of
strategy objectives.

● These are mainly in the form of sales reports that are produced on a weekly, monthly
and yearly basis. These reports are generated by the managers at the distributor level
and the Reports are submitted to the Areas sales manager or Asst. Manager. Typical
contents of the report include Opening stock, closing stock, ordered stocks, received
stock and damaged stock

10
ITC Infotech achieved the distinction of being the first company globally to offer Loyalty as
a Service - CRM/ Loyalty as a Service. ITC Infotech, a global IT services company, has
successfully implemented a new-generation CRM based loyalty solution for Finnair,
Finland's largest airline.

ITC Infotech’s Hospitality practice significantly heightened operations for one of the world’s
largest hospitality companies which owns, operates, franchises and manages hotels, resorts,
spas, residences, and vacation ownership properties. The company continues to deliver
differentiated services from the dedicated offshore development centre in India.

ITC Infotech will now also support PTC(product technology community) in delivering their
cutting-edge solutions and services to Aerospace, Retail, Footwear & Apparel, Government
and Defence customers in India.

The company’s recently formed Life-Sciences practice launched industry specific solutions:
Personalized Content Delivery (PCD) & Sales on the Go (SonGo).

The company’s Engineering Services has enhanced its achievements, with the addition of a
leader in power and automation technologies to its roster of clients.

ITC Infotech continued its growth trajectory driven by robust client acquisition, which was
fueled by customized solutions & services and strategic partnerships. Addressing growing
market needs, the company made deeper inroads across sectors, despite stiff competition
from larger established players.
ITC Infotech’s strategy of delighting customers by providing value added and innovative
solutions continued to yield significant traction. Long standing clients scaled up their
engagements by entrusting the company with additional mission-critical projects.
To support the growth in client base and demand, ITC Infotech expanded its human resource
base to over 4000 employees. The company also strengthened its presence across geographies
by expanding its global footprint with new offices in Australia and Singapore, allowing easy
accessibility and improved service levels to clients.

Trusted by the World’s Largest Companies

ITC Infotech, along with SAP Consulting, implemented SAP BusinessObjects Supply Chain
Performance Management application in North America for one of the world’s largest
beverage manufacturers.
This project is a key milestone which enables the beverage manufacturer to effectively align
supply chain goals with business objectives, thereby providing visibility for end-to-end
supply chain processes and driving process consistencies.

11
ITC Infotech continued to further cement its niche in the airlines sector, with additions of
more One World airline customers, including marquee large-scale global implementations.

Management of Sales
Monetary and non-monetary methods of rewarding: According to the HR policy of ITC
there are no monetary or non-monetary rewards given to the channel members i.e. the
distributors and the retailers.
● No benefits, no freebies or paid vacations etc are provided to the channel members.
Very rarely cash gifts are given which is related to the performance.
● No credit is given to the distributors for the purchase of stock .
● The wholesalers however get a maximum of one-month credit from the distributor
and the retailers have to pay cash.
Target setting mechanism: There is a certain target which is set for the distributors. there are
no targets set for the retailers.
Monitoring Mechanisms: The distributors are monitored by the Area Sales Manager and
the retailers are monitored by the Area Executives.
The parameters on the basis of which the distributors are monitored are the following:
(a) Visibility of the products (b) Availability of the products.

Management of Field
Monetary Method of Rewarding: As per the HR policy of ITC Ltd the field force is
monetarily rewarded on the basis of the number of bills drawn on the distributors.
Non-Monetary Method of Rewarding: The field force of ITC Ltd is given unlimited medical
benefits in terms of non-monetary methods of rewarding
Target setting Mechanism: The field force is given targets in terms of the number of bills
generated by an individual.
Monitoring Mechanism: The members of the field force report to their immediate
supervisor and this follows throughout the hierarchy.
Training and HR Inputs: The salesman of the distributors are under the payroll of ITC ltd.
In case of mass recruitment, the new sales force is given training by the HR department. As
per the HR norms, ITC Ltd provides training to its own employees of the distribution
network at regular intervals.

12
Planning
● Target setting for next fiscal year - 20% more than last fiscal year.
Business planning: Stores in rural area to be reached Internal system upgradation
● Product Development
● Advertisements and promotions
● Health and nutrition factors
● Fiscal Planning: Top line growth (gross or total sales )20-25% considering inflation
of 2 – 5% and bottom line growth (net income) 10-12%

Budgeting
Bottom up: when all the departments or sections of a company create a list of their
anticipated expenses and then all lists are added up to create an overall budget. It is done
from divisional level to corporate level.
Top down: It is a type of budgeting that doesn’t involve all areas of the organization.
Members of senior management are involved in the budget creation based on a set of goals
and then communicated to the organization.
● A blend of both is used in ITC, so as to get proper forecasting and performance
tracking.

Recruitment & Compensation

Recruitment
The salespersons of distributors are appointed by the distributors himself in consultation with
ITC officials.

Compensation
● Their fixed salary is paid by the distributors but is reimbursed by the company.
● The variable salary of salesmen is decided on the basis of performance and target met
by sales personnel.

13
 POSITION COST OF THE COMPANY VARIABLE
( in Rs. Lakhs annually )

Branch Manager 18 - 20 20% of CTC

Assistant Manager 12 - 14 20% of CTC

Area Manager 8 - 8.5 20% of CTC

Area Executive 5.5 - 6.5 20% of CTC

Sales Trainee 2.5 - 2.6 20% of CTC

Salesmen Evaluation and compensation

● The compensation received by salesmen depends upon the target achieved by them.
● Targets under consideration :
1. Monthly sales target
2. Product wise sales target
3. Category wise

Control Mechanism :
● The performance and work of employees is evaluated by company’s officials
weekly.
● They are given a bet plan each day. Their daily sales order is monitored by
Area executive
● The salesmen are given a geographical territory which doesn’t consider sales
potential.
● Salesman has to cover 30 outlets each day.
● If an employee is not performing then the company can sack him.

Role of Salesmen :
● Prospecting - searching for new outlets
● Targeting - visiting potential outlets
● Communicating - Informing about products and offers
● An order taker - As per requirement in retail and convenience outlet
● Selling to retailers and convenience outlet
● Servicing - Removal of damaged/expired (DND) products
● Information gathering - About needs/preferences of customers
● Allocating - fixed time to each outlet.
● Cash collection

14
15
16
17
ITC Pricing Strategy
ITC has different price points as it has a diversified product portfolio. ITC have products in
all price brackets but more and more new products are on the premium side as they provide
higher margins.

Pricing of the product depends on several things like pricing objective, the market one is
operating in, the purchasing power of the consumers, the market condition, product’s market
position etc.

ITC follows different marketing mix pricing strategies for different products. Their economy
brands follow economic pricing. Marketing and manufacturing cost is kept at a minimum.

For instance, as Bingo was entering the market,. they maintained their prices as per the
market leader but offered more quantity and more margin to the retailers which gave them a
competitive edge.

ITC Place & Distribution Strategy

ITC is constantly trying to reduce the lead time and to make the products reach to the retailers
as quickly as possible. Its products are available in 4.3 million retail stores in India.

Being an environment friendly organization, Out of the total energy it consumes over 47%
comes from renewable sources.for eg, E-choupals ensure timely supply of high quality raw
materials.

ITC has well integrated manufacturing and Logistics facilities with a wide and deep
distribution network. All manufacturing units owned by ITC are hazard Analysis and critical
control point certified.

As a result of the vast distribution network, ITC has distinctive agri-sourcing capabilities
with farm linkages in over 17 states .It is also one of the largest exporters of Agri-products
and coated boards in India.

ITC Promotion & Advertising Strategy

ITC designs its promotion strategy keeping in mind its brand proposition and its target
audience. It promotes its product through Print, television and radio as a part of its marketing
mix. ITC’s different brands have different brand ambassadors.

For eg, as part of ITC’s centenary initiative, Classmate launched the largest student contact
program which provided the youth with a platform to discuss the main issues faced by thee
country. ITC also launches a lot of digital campaigns to ensure maximum participation.

18
ITC also engages in cross marketing promotions. For eg,YiPPee launched a campaign with
Paytm offering recharge coupons equivalent to the price of YiPPee noodles. The company
launched an advertisement to back the campaign. Hence this concludes the ITC marketing
mix.
ITC is a board-managed professional company. Its philosophy of all-round value creation is
backed by strong corporate governance policies and systems.

ITC’s corporate strategies are as follows:

● Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.
● Enhance the competitive power of the portfolio through synergies derived by blending
the diverse skills and capabilities residing in ITC’s various businesses.
● Create distributed leadership within the organisation by nurturing talented and
focused top management teams for each of the businesses.
● Continuously strengthen and refine Corporate Governance processes and systems to
catalyse the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.

References
1. h ps://www.slideshare.net/sharadsrivastava12/presenta on-sales-distribu on-at-itc
2. h ps://www.itcportal.mobi/itc-brands-brochure.pdf

19