ITC

SALES AND DISTRIBUTION CHANNEL

Process

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

Direct Sales
STAR DISTRIBUTOR
Star distributor covers the Mahim to Byculla area.
He divides the area and assigns it to the salesman.

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 distributors 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
SKUs 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
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.

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.






Retailers Promotion Strategy
They are categorized into 3 types:-
In Shop: They are categorized into 3 types:-
1) Poster
2) PSU
3) Planograming




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.

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