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ITC

SALES AND DISTRIBUTION CHANNEL

ITC SALES AND DISTRIBUTION CHANNEL

Manufacturing & Distribution Process:

Process

 

Plantation

 

Manufacturing

   

Mother

 

Unit

Warehouse

Plantation Manufacturing Mother Unit Warehouse
 
Plantation Manufacturing Mother Unit Warehouse
 
Warehouse Local

Warehouse

Local

distributor/

Retailer

Sub

Distributor

Manufacturing & Distribution Process: Process Plantation Manufacturing Mother Unit Warehouse Warehouse Local distributor/ Retailer Sub Distributor
Manufacturing & Distribution Process: Process Plantation Manufacturing Mother Unit Warehouse Warehouse Local distributor/ Retailer Sub Distributor
Manufacturing & Distribution Process: Process Plantation Manufacturing Mother Unit Warehouse Warehouse Local distributor/ Retailer Sub Distributor
Regional Sales Manager Branch Manager Asst. Branch Manager Area Manager Area Executive National Sales Manager Salesman
Regional Sales Manager
Branch Manager
Asst. Branch Manager
Area Manager
Area Executive
National Sales Manager
Salesman

Indirect Sales

Direct Sales

Indirect Sales

Area Sales Executive: Mr. Aniket Upadhyay Link between the Distributor and ITC

Monitors the targets of the salesmen and forecasts future demands

Direct Sales

The initial investment of the distributors is around Rs 5cr for buying stocks and other requirement

The major investment is in current and fixed asset.

There are 500 salesmen, 25 distributor points & no specific number of wholesalers within Mumbai.

STAR DISTRIBUTOR

Star distributor covers the Mahim to Byculla area. He divides the area and assigns it to the salesman.

STAR DISTRIBUTOR Star distributor covers the Mahim to Byculla area. He divides the area and assigns
STAR DISTRIBUTOR Star distributor covers the Mahim to Byculla area. He divides the area and assigns

Distributor Point

At every distributor point there are:

2 operators in back office , 1distributor manager, 2

loaders , 1 godown keeper, 35 CDMs and cycles and

godown area is1000 sq.ft space

The CDM , cycles and office here were on rent.

Every salesman is responsible for selling Cigarettes, Confectionaries which includes personal care, packaged food, agarbattis and matchsticks. (excluding stationery)

Every salesman gets a CDM ,i.e., Convenience Delivery

Model: Convenience outlets.

Stock is given once every week, i.e., 4 times a month

A deposit of Rs. 20,000 is kept with the distributor per

salesman.

Distributor Landing Price

The distributor’s margin is 1.55% *Varies with respect to the areas

Distributor Beat Plan

Beat Name: L. J. Road, Mahim Station- West No of salesmen under 1 distributor: roughly 20 SKU’s Target: No fixed target One salesman sells around 28 SKU (Cigarettes only)

Salesman

From the distributor point, the salesman loads his aluminium box at 9:00 am, which he carries on his cycle.

Salesman • From the distributor point, the salesman loads his aluminium box at 9:00 am, which

Salesman

The area & outlets which the salesman has to cover is fixed.

(Here, Sitaram Gupta covers Mahim station area) He covers approximately 32-35 outlets in a day.

His day starts at 9:00 am in the morning and he finishes at 4:00 pm in the evening.

Salesman • The area & outlets which the salesman has to cover is fixed. • (Here,
Salesman • The area & outlets which the salesman has to cover is fixed. • (Here,
Salesman • The area & outlets which the salesman has to cover is fixed. • (Here,
Salesman • The area & outlets which the salesman has to cover is fixed. • (Here,
Salesman • The area & outlets which the salesman has to cover is fixed. • (Here,

Retailer: Kishanchand

Retailer: Kishanchand

Retailer

The salesman takes the order from the retailer. The order is served immediately. The retailer has a 10-12% margin.

Once the order is served the retailer pays for the order immediately or on credit.

The Salesman keeps a receipt of the order served for his records and gives a copy to the retailer.

Daily the sales person sells stock worth rupees 2500- 3000 per outlet. and on weekends i.e. Saturdays salesmen sells goods worth 4000- 5000 rupees. (Figures vary from every pan bidi store) (Therefore, daily= Rs.80,000 approx)

The salesperson receives a margin of 0.8%.

The highest selling brands in the Mahim area are Goldflake lite and Classic mild.

In case a new retail outlet is opened, the salesman has to report to the supervisor or area sales executive so that a salesman is assigned that particular outlet.

Post Sales

The salesman reports to the distributor at 4:00 pm and gives him the sales proceeds of every outlets he

covers daily.

Emergency ...

If in case the stocks are damaged or spoiled during transit due to unforeseen circumstances then the

salesperson has to bear the cost.

Retailer’s Promotion Strategy

They are categorized into 3 types:-

In Shop: They are categorized into 3 types:- 1) Poster 2) PSU

3) Planograming

Retailer’s Promotion Strategy They are categorized into 3 types:- In Shop : They are categorized into
Retailer’s Promotion Strategy They are categorized into 3 types:- In Shop : They are categorized into
  • On Shop:

On shop Advertising is Banned by COTPA Act 1993

  • Pack Insert

 On Shop: On shop Advertising is Banned by COTPA Act 1993  Pack Insert

Interview with wholesaler

Aakash tobacco (Kandivali- East ) 1 wholesaler in a vicinity. Margin 0.05%. Takes the whole stock directly from distributors.

Interview with wholesaler • Aakash tobacco (Kandivali- East ) • 1 wholesaler in a vicinity. •

Orders 7-8 times a month.

Sells to small retailers, direct customer on packet basis, cyclewala etc.

Monthly sale 2.5 3 lakhs. Sells other brands also. Works on credit basis.

CONCLUSION

CONCLUSION