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A
DETAILD REPORT
ON
EXECUTION OF CONVINIENCE delivery model IN ITC,
Bhubneswar, odisha
UNITED SCHOOL OF BUSINESS MANAGEMENT
SUBMITED TO: SUBMITTED BY:
SRINIBASH SETHI
GIRIJA SANKAR PANDA
(Area executive in ITC)
REG. ID-2106274065

Introduction
 ITC limited head quarters in Kolkata ,West Bengal has a diversified business
into five segments: Fast moving consumer goods(FMCG), Hotels,
Paperboards& packaging , Agribusiness and information technology.

 Established imperial tobacco company of India limited. The company was

renamed as the Indian tobacco company limited and further to ITC limited

 As of current year ITC has a market capitalization of$47.10 Billion. This

makes ITC the world’s 339th most valuable company by market
capitalization according to the data.

OBJECTIVE OF THE STUDY:-

My project entitled ‘EXECUTION OF CONVINIENCE DELIVERY MODEL’ aims
at studying the scope of execution of ITC CDM along with convenience focus
product.
The main objective of doing this report

 To know how ITC CDM channel execute along with convenience

focus product.
 To know more about FMCG industry.
 To gain practical knowledge in practically with team leader and area
executive in ITC.
Scope of the study:

To achieve the objective I have not restricted my study to just ITC

Convenience focus product. In order to study all about the FMCG CDM in
BHUBNESWAR.I have extended my project to do a detailed study of
convenience delivery model along with CFP.

CHANNEL OF DISTRIBUTIOn:-

MANUFACTURER

C & F AGENTS

WHOLESALE DISTRIBUTOR

DS STOKIST WHOLESALE

RETAILER

CDM- CONVINIENCE DELIVERY MODEL

What is CDM:-

Convenience delivery model is a term which is used in ITC limited. Meaning of

this term various types of product are going for delivery in one vehicle. It works
for delivery of convenience goods to the retail shops which are takes place by
convenience focus product Ds, Because the team leader and distributer
salesman of grocery section normally pay attention to the grocery outlets. It
mostly happens by the CFP DS as per the basic of requirements of this route. If
the requirements of this route is high then it continue more than twice in a
week.

WHY CDM:-

 It happens on the basis of the requirements of this route.

 It makes delivery of GR product like Biscuits, agarbatti and Bingo etc.
 To make a delivery channel profitability and productivity.

HOW THIS WORK IS EXICUTE:-

We went to the annapurna traders (which is a WD point of ITC limited) at 7.00

am .The vehicle was loaded the stock and depart for the route of Niladribihar-
district canter- ATM square- Lumbini bihar. In this route there are more than 35
shops out of them the vehicle reached 33 shops and provide service

Fig1:-with stock loaded vehicle Fig2:-providing service

Other FMCG – Convenience channel
Some of the other FMCG in the convenience channel includes Biscuits, Confectionary,
Bingo, Shampoos, Matches and Agarbattis.

One of the major factors for ITC in this channel is that it has a high competitive advantage as
compared to its peers. The company’s convenience DS across the markets ensure that the
company’s FMCG products are available amongst convenience category handlers but at the
same time, other FMCG is sold only to those category handlers which are not a part of the
grocery target sales. Another aspect of the convenience DS is that they carry other FMCG for
sale and replenishment basis on two focus days every wek for each of the category set which
includes 3 different categories:

 Biscuits and Confectionary

 Bingo
 Personal care, Matches and Agarbatti

The accountability for distribution objectives for other FMCG though lies with the
Convenience Team Leaders.

Convenience Delivery Model (CDM)

Whenever a particular route potential is high, i.e. the deliverycost doesn’t exceed 3.5% of
other FMCG turnover generated on the route for that day, the carrying capacity of a
convenience DS can be enhanced through a delivery vehicle across all markets. However, the
focus day concept is not applicable to convenience DS with CDM. All other FMCG
convenience sales are summary billed category wise by convenience DS in the customer
information system (CIS). The report from CIS is split accordingly as convenience CDM DS
sales by categories and Balance convenience DS sale by categories.

Some of the other FMCG sales measures include convenience DS and convenience CDM DS
for the WD every month and WD wise total other FMCG sales tracker by category and split
between CDM DS sales and balance DS sales to be compiled at branch and communicated to
district by 10th of the next month.

CAPACITY ENHANCEMENT – CONVENIENCE DELIVERY MODEL (CDM)

 The carrying capacity of a Convenience DS can be enhanced through a delivery vehicle
ACROSS MARKETS if the route potential is higher than daily Top-Up servicing ability
 High Route potential implies that delivery cost of Other FMCG turnover generated on the
route for that day
 Less than 2.5% (weighted) for town markets (after 3 months of commencement)
 Less than 3.5% (weighted) for village markets (after 3 months of commencement)
 Deploying CDM in rural routes to be basis logic of potential business and cost as % of
turnover
 Relevant Other FMCG categories need to be carried in the delivery vehicle
 The RECOMMENDED norm for frequency of servicing a route through CDM to be
 Once a week upto all OLP markets
 CIGARETTES
These are ITC’s forte and are distributed through the following channels:

 Convenience
 Super Premium and Light (SP&L) outlet coverage
 HoReCa Strategy

Cigarettes – HORECA Outlet Strategy

The universe of Hotels, Restaurants and Clubs (HORECA) is defined on the consumption of
bottled beverage. Markets in Delhi, Mumbai, Pune, Bangalore, Kolkata, Hyderabad, Goa and
a few other identified cities are covered under this. The broad objective for this domain is:
 ITC’s share on all 3 segments of cigarettes (SP, KSFT, KSFT lights) to be greater
here than in the total market and SP&L outlets
 ITC’s share on all the segments in this domain to be greater than the competition

Cigarettes – Convenience Channel

Market Coverage: Markets serviced by WD salesman for active retail/ wholesale or markets
serviced by WD stockists. The norms are decided based on the sales on each state, and a few
other factors. For example in Kerala all markets above 1k while in Haryana all markets above
2k are classified to be under convenience channels. Besides that markets serviced by
competition, present on national/state highways and tourist markets also fall under this.

Frequency coverage for retailing varies from once to thrice depending on the market size and
location.

Outlet Coverage: Aim was to maximize coverage for markets below 20k pop group. For
markets above 20k pop group outlets accounting for 80% industry volume or 10packs a day,
whichever is higher is to be directly serviced.

Availability Norms are also fixed in advance based on the brand, bench mark brand of the
competition and the geography.

Visibility: Superior cigarette visibility is imperative in driving brand salience and imagery.

For the sake of deciding upon the visibility norms the outlets are divided into a matrix with
the following dimensions:

1. Volume Classes(6) from 1-6 depending on the packs per day sale
2. Location types (3) from excellent to average depending on whether the outlet is
located on a junction, fixed/temporary structure etc.
The emphasis in visibility is on:

 Right brand in the Right outlet

 High quality execution at the outlet level
 o Within the outlet, the display unit is kept at the hot-spot which is easily visible
and does not have any visual obstruction
o The packs are arranged from highest price point to the lowest from top to
bottom
o They are arranged from Regular to Lights from Left to Right in all places
except the Western part of India where the consumption patterns are different
 Tracking and monitoring of the visibility inputs
o Wholesale dealer level tracker with photograph to be updated every quarter
o Convenience team leader to capture all the details
o Trade marketing calls are made once in a week in outlets of volume class 1
and 2, while for volume class 3 it is once in two weeks
o Distribution calls are done on all outlets once a month
 Quality standards are maintained throughout the input cycle
o Convenience team leader responsible for execution and maintenance of inputs
and face of display
o Cleanliness, pack presence, stock rotation of input packs and overall look are
given importance
TYPES OF RESEARCH:
My research is comparative study based on the primary data along with
secondary data. Primary data is used to understand the practical field work
of the ITC CDM and convenience focus product.
DATA TYPE:
We use two types of data
1. Primary data
2. Secondary data
for the purpose of clear understanding about CDM in CFP and other
products.
EVERYDAY ACTIVITIES/SAMPLE COLLECTION:-. My first working location is
Lewis rode at Kalpana square and second location is CRP, Unit8. Since we
were asked to visit all the outlets and find out the issue outlets.
To collect primary data I visit on 12th may 2022 the outlets with my TL, and
also AE nearly 1month and 20 days. My team leader provide me the list of
the retail shops. I visit these retail shops and collect the data about the
scheme and products of competitors avlaible in the market.
In my two beats there are nearly 80 outlets I visited, out of them in 15
outlets competitors product available, 60 RA outlet and 5 issue outlet.
PROCESS OF DATA COLLECTION:-
In order to collect primary data my AE instructed me to reach various
beats. He instructed me to work in two routes. My 1 st beat is CRP unit 8 and
my second route is LEWIS RODE. In these days I know more about the
variety of ITC cigarette. It divide into various category on the basic of its
price and size.
DATA ANALYSIS PROCESS:-
Every study is required proper tools and technique, without this the study
cannot be successful, also in my study I use some tools and technique for
making the presentation in a easy and better way.
I used two types of tools for preparing this report these are
1. BAR-CHART
2. PIE- CHART
Bar chart and pie chat are really useful tools to show the reports in a
clear and easy way, I used bar chart for showing data in a systematic
way. So it need not necessary for any observer to read all the
theoretical detail simple on seeing the chart anyone knows what is
having said.
Preparations of bar chart and pie chart are as follows.

BAR CHART
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
LEWIS RODE CRP,UNIT 8

AR OUTLET UNSATISFIED ISSUE

PIE CHART:-Which brand pepole prefer

 Sales

7%
10%

23% 59%

ITC GPI VST OTHER

ACTION PLAN:-

The project is going through several phases include the identification of

service outlet and unserviced outlet through all the desired beat of
different WD point

The next phase is to convince them not to keep competitors product by

different company strategy of schemes and if they are agree with us then
the next step which is sanitization. After sanitizing the outlets we do ITC’s
branding of new product and assure them for a productive and long term
service by ITC limited.

In the next phase I have found out how many outlets were present in given
beat which are not in service. By approching thees outlets I used to
generate leads and information for the company by asking why thay are not
on service and what kind of benefits they are loosing because of that.

In next I revisited the outlets to make sure the Avlaibility,visibility of itc

product. Those new outlets which are added are located to DS and getting
service properly with his desired produc.
Fig-1 Fig -2

Fig-3 Fig-4

Brandind of new product MIXPOD

LIMITATION :-

 The project was subject to restrict the new competetiors so wrong

information which fed to some reteler are hard to convince.
 Review of few outlets were restricting.
 GOVT guidelines under COTPAACT act restricted the promotion
and branding new product in various area.
 Physically reach to maximum outlet was so challenging.
CONCLUSION / RECOMMENDATION:-

1. Regular service should be given by DS in the daily route , as

irregularity in service is a cause of retailer dissatisfaction.
2. TL should periodically visit the route and audit frequently in the
MLCS outlet,and counter the entry of new competetor brand.
3. DS should always responde to the calls made by the retailer in
case of delay in delivery.