● Types of channels used by the manufacturer

1. What are the various channels used for cigg from manufacturer to retailer?

https://www.slideshare.net/UvisePulinganal/itc-supply-chain

https://www.academia.edu/32046490/Sales_and_Distribution_Channel_of_ITC_SALES_AND_
DISTRIBUTION_CHANNEL_OF_ITC_CIGERATTES_Introduction_ITC

● Details of channel structure

Where the Manufacturer sells to a retailer or opens its own retail outlets.

Where the manufacturer sells to a wholesaler who in turn sells to retailers.

Where the manufacturer has a middle man in the form of an agent or a broker. The Agent or the
broker sells directly to large retailers.

Travelling and transportation cost

Commission of sales men

Wherein the agent or broker may sell to wholesalers who in turn sell to retailers.

● Functions or role of different members of the channel

Detailed activities performed by channel members

● Terms of trade
● Selection of channel members

Process, how is it done in cigarettes

● Details of flows – how the products are ordered and delivered, frequency of ordering
and delivery, flow of money, flow of communication etc
● Motivating channel members
● Trade promotions- It is a marketing technique aimed at increasing demand for
products in retail stores. In a trade promotion, wholesalers and/or retailers are
offered special price discounts (often in addition to a trade allowance),
subsidized or free display racks or stands, gifts, or other incentives.

What distributors offer you so that you buy more?

● Sources of conflicts and the way they were resolved- Ripu

https://www.ukessays.com/essays/marketing/a-critical-analysis-of-itc-distribution-channel-
marketing-essay.php
 ● Dispute resolution- Ripu
● Services offered by the firm-Ripu
● Performance measurement- Kartikey

● Pricing, payments, margins Komal

● Issues in managing multiple channels- to be known from manufacture (Krishnan)
● Role of IT in managing channel- manufacture (Krishnan)
● Organogram of salesforce- hierarchy of salesforce (Krishnan)
● Territory design for salesforce- Komal
● Allocation of targets for salesforce- info from salesman ask rahul
● Role of ASM, RSM etc- role of sales manager and sales executiv- Komal
● Daily life / schedule of a ASM and salesperson- Kartikey
● Performance evaluation of salesforce- info from sales manager- Kartikey

Rates of distributor for wholeasaler and retailer: the rates are different. Retailer gets 10%
profit margin and wholesaler fets 12-13%. This is bcs retailer will buy only for his shop whereas
wholsaler will buy a large quantity since he has to sell further to various retailers in the market.

2-3 crore has to be invested by distributor to take the agency of ITC in dehradun.

LIFE OF SALES EXECUTIVES- they come in the morning at 10am

If the sales executive is selling brand of ITC he cannot sell other brand at the same time.

If they do a sale of 10,000rs in a day they get rs80 for it

Their monthly salary is 7000. He has to pay for his petrol. If he sells another brand then he will
lose his job.

If they do a very good sales mothly i.e. if they cross 15-20 lakh then they will get a bonus. The
amount of bonus and slab depends on distributor and nothing is fixed.