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Toaz - Info A Study On Distribution Channel of Britannia Itc and Parle Biscuits in Bangalor PR
Toaz - Info A Study On Distribution Channel of Britannia Itc and Parle Biscuits in Bangalor PR
Submitted by
Students MBA 2012-14
Jain University
Jain University
School of Business
Bangalore
MAY 2013
Distribution Channel of Britannia
History
Type Public
Founded 1892
Area Served India
Key people Vinita Bali (MD)
Prashant Vatkar (CEO)
Industry Food
Products Biscuit, Cake, Rusk
Revenue Rs. 5650 Crores
Parent Wadia Group
Company
Distribution Network
Channels are different to cover the mass markets. They are as follows
For institutional trade such as in IRCTC, flights, and hotels etc the
distribution channel is direct.
Company
Depot
Hotels/flights
The direct marketing channel of Britannia is through tie ups with corporate
canteen, kiosk, railway station and coffee day express.
Company Depot
Wholesaler/Distributer
Retailer
Customers
Company Depot
Agent Wholesalers
Wholesalers
Retailers
Customers
They use same channel to reach Kirana store and provision stores so that it will
be available every point.
The wholesaler gets the product for 80% of MRP and sells to retailer for 85% of
MRP. Finally retailer sells to customer at 1.5-2% of profit margin after
deducting all expenses.
Distributors are selected on the basis of space for stock, financial viability and
customer (retailer) database.
Distribution Channel of ITC Biscuits (Sunfeast)
History
Type Public
Founded 1910
Area Served India
Key people Y C Deveshwar (Chairman)
Industry FMCG, Service
Products Biscuit, Cake, tobacco, Services
Revenue Rs. 45102 Crores
Distribution Network
Beat plan is where sales person visit a particular area on weekly basis and main
outlets are visited twice a week. Sales person will cover 30to 40 stores daily.
Route plan is where purchase orders is received and supply it on next day
through transportation.
Distribution Channel
They follow direct distribution to institutions such as hospitals, hotels and reach
customers through their own hotels
Manufacturer
Hotels/flights/customers
Manufacturer
Distributor
Wholesaler
Retailer
Customer
For urban customers ITC follows 2 level distribution channels where distributor
will supply to retailers and retailer will sell it to customers.
Manufacturer
Distributor
Retailer
Customer
Intense Competition
Strict compliance standards
Space available
Constant movement of biscuits from low sales area to high sales area.
The company collects all the expired Biscuits from market and destroys
them.
Retailers must return expired or damaged products within time before the
date of expire.
ITC provides their retailers with racks, fod’s, (face on display), standees
and Glow shine board, etc to display the products.
ITC has hired merchandiser to promote Biscuits
The benefits received by the retailers depend upon their sales volume and
also the location of their shops
Distributors are given cash or credit of 7 to 15 days.
Distribution Channel of Parle Biscuits
History
Type Private
Founded 1928
Area Served India
Key people Mr. MOHANLAL DAYALJI (Founder)
Mr. KANTILAL CHAUHAN (CMD)
Industry Food and Beverage
Distribution Network
Channel levels
Parle has a multi-channel marketing system since it uses more than two
marketing channels to reach all its customer segments.
Hotels/flights/customers
Parle Depot
Retailer
Customer
Parley uses two level distribution channels to all Kirana and provisional stores.
Parle Depot
Wholesaler/carry
forward Agents
Retailer
Customer
Parley uses three level distribution channels for National and International
coverage. For e.g. Parle's international operations consist of serving markets in
the Middle East, Africa, South America, Sri Lanka, Australia and North
America.
Parle Depot
Agents
Distributors
Retailes
Customers
Margins offered by Parle are 8%. Now-a-days it has been raised to 8.5%.
The demand for Parle product also motivates distributor to keep stock of
the product.
Total Quality Management initiatives and workshops to channel members
to improve the network
Schedules of the sales man for retailers to estimate the quantities of
various products needed.
Beat plan: This plan is generated for the various product categories. A
weekly schedule is prepared for various markets and the retailers the
turnover for each of the product is calculated for the wholesale dealers.
Cumulative performance: The performance of the dealers is averaged
out over a period of three years where a comparison is made of the
present performance vis-à-vis the previous ones.
Target versus achievement: The performance and the targets are
compared and therefore the gaps are identified which help in evaluating
the wholesalers and the distributors and planning for the next year as
well. This is done for each of the product category.
Learning Experience