Summer Internship Project

AT ITC LTD, ERNAMKULAM BRANCH APEEJAY SCHOOL OF MANAGEMENT,

KERALA NEW DELHI

On
"PORTFOLIO EXPANSION AND MARKET
EXPLORATION OF PCP CHANNEL AT
FOCUSED DISTRIBUTORS OF THALASSERY
SECTION"

Corporate mentor: Faculty Mentor

MUHAMMED NASIK DR. RAJNEESH MAHAJAN
LEARNING OBJECTIVES OF THE STUDY

• To Identify and understand the service gaps in Iritty

market and tapping these outlets
• To Understand the competitors service status in the
ITC’s unexplored retile outlets
• To understand Personal Care Product category
availability in retile
• To study portfolio expansion in all the Personal Care
Product handler retile
 Company Profile
• ITC was formed on 24 August 1910 under the name of
Imperial Tobacco Company of India Limited
• The earlier decades of the company's activities centered
mainly on the manufacture of tobacco products and their sales.
• In the 1970s, it began making a foray into select non-tobacco
businesses
• The company was rechristened as the Indian Tobacco
Company Limited in 1970 and further to I.T.C. Limited in
1974. Finally, the periods in the name were removed in
September 2001 for the company to be renamed as ITC Ltd.
 Company Profile
• One of India’s most Admired and Valuable companies
- Market Capitalisation: over US$ 40 Billion
• A USD 8 Billion enterprise by Revenue
- ~58% of Net Revenue from non-Cigarette segments
• Leading Fast Moving Consumer Goods (FMCG) marketer in India
- Established several world-class brands in the last 10 years
• 10 year Value addition ~ Rs. 2.2 lakh crore (US$ 43 billion) with ~75%
accruing to the Exchequer
- Among the top tax payers in the country (Private sector)
- Excise payments represent ~7% of Government of India’s total Excise
collection
• ITC & its Group Companies employ over 32,000 people directly; supports
livelihoods of ~6 million people
• A global exemplar in sustainable business practices
- Only Company in the world of comparable dimensions to have achieved
the global environmental distinction of being Carbon positive (10th Year),
Water positive (13th Year) and Solid waste recycling positive (8th Year)
 VISION, MISSION AND CORE VALUES
VISION
• Sustain ITC’s position as one of India’s most valuable
corporations through world class performance, creating
growing value for the Indian economy and the Company’s
stakeholders.
MISSION
• To enhance the wealth generating capability of the enterprise
in a globalizing environment delivering superior and
sustainable stakeholder value.
CORE VALUES
• ITC's Core Values are aimed at developing a customer-
focused, high-performance organization which creates value
for all its stakeholders:
 TRUSTEESHIP
CUSTOMER FOCUS
RESPECT FOR PEOPLE
TRUSTEESHIP
• As professional managers, ITC conscious that the company has been given to
in "trust" by all the stakeholders. ITC will actualize stakeholder value and
interest on a long term sustainable basis
CUSTOMER FOCUS
• ITC is always customer focused and will deliver what the customer needs in
terms of value, quality and satisfaction.
RESPECT FOR PEOPLE
• ITC is result oriented, setting high performance standards for ourselves as
individuals and teams.
• ITC will simultaneously respect and value people and uphold humanness and
human dignity.
• ITC acknowledge that every individual brings different perspectives and
capabilities to the team and that a strong team is founded on a variety of
perspectives.
• ITC want individuals to dream, value differences, create and experiment in
pursuit of opportunities and achieve leadership through teamwork.
 EXCELLENCE
INNOVATION
NATION ORIENTATION
• EXCELLENCE
• ITC does what is right, do it well and win. ITC will strive for
excellence in whatever it does.
• INNOVATION
• ITC will constantly pursue newer and better processes, products,
services and management practices.
• NATION ORIENTATION
• ITC is aware of its responsibility to generate economic value for the
Nation. In pursuit of its goals, ITC will make no compromise in
complying with applicable laws and regulations at all levels.
ITC’s Business Portfolio
 Personal Care Products of ITC

• Portfolio approach straddling all consumer segments with 4 umbrella

brands in the Personal Wash segment
Essenza Di Wills
Fiama Di Wills
Vivel
Superia
• Acquired ‘Savlon’ and ‘Shower to Shower’ in Feb’15 to
widen the portfolio of offerings
• Complemented by ‘Engage’ brand in the deodorants segment
• Products continue to gain consumer franchise
• Laboratoire Naturel – A state-of-the-art consumer and product
interaction centre – leveraged to launch unique and differentiated
products
Personal Care: Some recent launches
My Reporting
structure
 SCOPE OF PERSONAL CARE PRODUCT

SECTOR IN INDIA

• The Indian surfactants market for personal care hinges largely

on the expanding middle-class consumer population in the
country.
• Indian surfactants market earned revenues of $ 2,278 million
in 2013 and estimates this to grow at 13% annually to reach
$3,748 million in 2017, approximately.
• The personal care surfactants market is estimated to grow at
23% from 2013 till 2017 and attain $547 million in revenue
• The average Indian consumer has a wider product and price
bracket to choose from, which augurs well for the surfactants
market for personal care.
• Manufacturers must deliver the best quality at the lowest price
to establish a foothold in this domain.
 TOP 10 LISTED PERSONAL CARE
PRODUCTS COMPANIES IN INDIA
Company Name Company Website
• 1 Hindustan Unilever Ltd www.hul.co.in
• 2 Dabur India Ltd www.dabur.com
• 3 Godrej Consumer Products Ltd www.godrejcp.com
• 4 Marico Ltd www.marico.com
• 5 ITC Ltd www.itc.com
• 6 Colgate Palmolive (India) Ltd www.colgate.co.in
• 7 Emami Ltd www.emamiltd.in
• 8 P and G Ltd www.pg.com
• 9 Gillette India Ltd www.gillette.co.in
• 10 Godrej Industries Ltd www.godrejindustries.com
 JOB DESCRIPTION AND FUNCTIONAL

PROFILE

• Ability to work in the field to explore the new market

• Having a strong hold on MS office
• Skills to maintain database and reporting to the corporate mentor
• Will be responsible for data analytics and should be comfortable to
work and coordinate with team.
• Will be responsible for portfolio development
• Help and support Distribution Team in field work
• Ability to do multi tasks and switch gear while maintaining priorities
and comfortable to work under pressure
• Conduct SUMMER Drive for the market exploration and portfolio
development in the Iritty market.
• Have a tendency to bring niche Marketing Concept which could be
applied to business.
 INSIGHT LEARNING AND
ANALYSIS

• SUMMER DRIVE
Phase 1 : Market analysis
Phase 2 : Market Exploration
Phase 3 : Portfolio Development
 RESEARCH METHODOLOGY
• Problem identification
iritty is the only wholesale dealer under Thalassery section
always use to faill all the activity which is said by the
company.
• Objective of the study
• To Identify and understand the service gaps in Iritty market and tapping
these outlets
• To Understand the competitors service status in the ITC’s unexplored retile
outlets
• To understand Personal Care Product category availability in retile
• To study portfolio expansion in all the Personal Care Product handler retile
• Source of data
Primary data : Filed work, market Survey (survey form)
Secondary data : Company data base, Magazines, Books, Internet
• Data collection : Survey form
• Analysis : MS Excel
• Report : MS word
• Sample Size : 346 retile outlet
• LIMITATIONS : only one Distribution staff
limited time period of internship
 PHASE 1 : MARKET ANALYSIS
SIFI ENROLED OUTLET COVERED BY THE DS

SIFI Outlet 10% (26)

covered Outlet Covered by
the DS
Outlet Covered by the DS 155 42% (87)
58% (155) Outlet which is not
Covered by the DS
Outlet which is not Covered by Shutdown outlet
the DS 87

Shutdown outlet 26

[Table number 6.1]

[Source : Marke survey]
CLASSIFICATION OF 103 OUTLETS WHICH HAVE NO
BILL FOR THE LAST ONE MONTH

103 outlet have no

bill for the last
Shutdown outlet
one month
Shutdown Issue with
Undercutting
outlet 26 15%
25% Issue with WD
7%
Issue with 4%

Undercutting 12 12% Hawker supply

22%
Issue with 15%
Medical shop
WD 16
Hawker Bakery Shop

supply 23
Other resons
Medical shop 4
Bakery Shop 7
Other
reasons 15
COMPETITION WITH HUL AND THAI GROUP
IN IRITTY MARKET
Amount of average bill
700000

600000

Amount of
500000
average bill

Bill Amount
HUL 652445.61 400000

ITC 217481.87
300000
ASHIQI 123428
200000

100000

0
HUL ITC ASHIQI
Amount of average bill 652445.61 217481.87 123428
 MARKET SHARE OF HUL, ITC AND ASHIQI
ENTERPRISES

13%

19%
HUL
Market Share 68%
ITC
ASHIQI

HUL 761183.5

ITC 217481.9

ASHIQI 147435
 PHASE 2: Market Exploration

Under this phase we added 63 new potential outlet

Sl no Name of the outlet Name of the owner Location of the outlet Mobile Number

1 Nova fancy Latheef Iritty 9446204785

2 Krishnan Pala Krishnan Ayyappankavu 8086105754

3 Lidhin Bakery Govindan 9048952599

4 Abirami Store Raveendran Kunnath 9745636365

5 Shine Fance Umesh Mattanur 9447642508

6 Aasi Bakery Mohanan Padiyour 4602273968

7 Family Store Ashraf Blathoor 9446457562

8 General Trading Co Rahees Peravoor 9947273924

9 PK vegetables Purusu Kanichar 8129402897

10 Kurupance Fancy Roy Kelakam 9446672802

 PORTFOLIO AVAILABILITY AFTER
PHASE 2
300
Portfolio
item Availability Percentage 250

25/- Vival 234 77.74 %

200

Number of outlets
Vival AE 192 63.79 %

Fiama GBB 52 17.28 % 150

Savlone 67 22.26 %
100
Superia 172 57.14 %

Yungglow 190 63.12 % 50

Deo 132 43.85 %

0
Viv
Fiama TA 125 41.53 %
25/ Fia al Su Sav
Viv Su Fia
- ma Sav Yu De per lon
SH 269 89.37 % al per ma
Viv GB lon ng o ia H
AE ia TA
al B glo SH W
w

Savlone HW 42 13.95 % Portfolio Availability 234 192 52 67 172 190 132 125 269 42
 PHASE 3 : PORTFOLIO
DEVELOPMENT
SCHEME CARD_June – 2016

Net
Net Margi Net
Brand/SKU/Pric Scheme Net Margin
Category Channel Slab MRP PTR Retail n SWD
e Point Details (SWD)
Rate (Retai Rate
l)
Fiama GBB 75
Retail 3-11 Pcs 4% 36 33.3 32.2 3.8 31.7 4.3
Gms
Fiama GBB 75 Retail &
>=12 Pcs 7.69% 36 33.3 31.1 4.9 31.0 5.0
Gms SWD
Fiama GBB 125
Retail 3-11 Pcs 4% 60 51.8 53.6 6.4 52.9 7.1
Gms
Fiama GBB 125 Retail &
>=12 Pcs 7.69% 60 51.8 52.1 7.9 51.6 8.4
Gms SWD
Savlon Double
8% +
Strength(75+25 Retail 1--9999 25 23.2 22.8 2.2 22.8 2.2
 CONTITION
CONTITION

MINUMUM
ITEM VERITY ORDER Incentive
Achievement Amount
FIAMA
TA 5 ITEMS 5*1 100% 3000
90-100% 2500
SAVLO 3 SOAP 3
80-90% 2000
N HAND WASH 6*1
70-80% 1500
FIAMA
60-70% 1000
GBB 3 SINGLES 3*2
50-60% 500
 Beat ways achievement
FIAMA FIAMA
GBB FIAM TA
BEAT FIAMA ACHIEVE SAVLON SAVLON A TA ACHV
NAME GBB TGT D TGT ACHVD TGT D
MONDAY 40 32 30 26 25 20
TUESDAY 40 30 30 24 25 23
WEDNESD
AY 50 36 50 45 35 29
THURSDAY 35 24 35 35 25 27
FRIDAY 40 29 40 43 30 31
SATURDAY 45 31 45 43 35 25
TOTAL 250 182 230 216 175 155
PORTFOLIO AVAILABILITY AFTER
PHASE 3

Portfolio item Availability

25/- Vival 234
Vival AE 192
Fiama GBB 203
Savlone 248
Superia 172
Yungglow 190
Deo 132
Fiama TA 185
SH 269
Savlone HW 235
 Availability
300

250

200
Number of Outlet

150

100

50

0
Fiama Savlone
25/- Vival Vival AE Savlone Superia Yungglow Deo Fiama TA SH
GBB HW
Availability 234 192 203 248 172 190 132 185 269 235
 FINDINGS

• There is a need of one more Distribution Staff for personal care product
marketing in Iritty market
• Distribution Staff is not get sufficient time to serve the market , he is get
prepacking duty as well.
• Lack of motivation to the employees in iritty whole sale dealer.
• There is no proper monitoring of day to day activates.
• Communication gap between the company and the retile outlet.
 RECOMMENDATIONS
• Adding one more ds in to GR2 channel and covering
100% project explored outlets
• WD should try to find new outlets and make portfolio
expiation in Iritty market.
• DS should not get prepacking responsibilities, as it will
influence to decrease in the market working time and the
daily priorities of ads.
• Manager/WD’s daily follow-up on strict professional ways,
by adhering gate-meeting s and instant follow-ups of
each activity.
• Unbilled outlets tracking by ds ( 127 outlets were unbilled
in APRIL/ 111 outlets were unbilled in MAY)
 RECOMMENDATIONS Contd..

• CFT follow-up, market working time and outlet spending

time should monitor
• FC & SL outlets target communication and weekly status
follow-up and achievement tracking.
• In order to improve the promotional activity WD should
invest an extra effort to find the market potential and
explore the same.
• Adding chemist and cosmetics outlets in to the market
base (Currently 0 outlets in chemist)
• CDM – active contribution assurance.
• Handling customer issue should be given prior concern.
Staff should be trained to handle customer quarry.
RECOMMENDATIONS Contd..
• Usages of POSM materials (Last month FDW TALC bin
allocation was given to 2 outlets in Iritty, so far not
implemented/ MEGA full shop drive is active in the
section for the last 3 months, still there is not a single
outlet is got implemented in Iritty.)
• Company should make sure that there should be no
Karnataka product in Kerala market. Undercutting should
be reduced as much as it is possible.
 CONCLUSION
FMCG industry in India is one of the fast growing industries in the
world. ITC Personal Care Product continues to grow and increase its
market share in the HUL and Godrej Indian Personal Care Product
industry. Strict compliance standards, fast and effective sales ordering
process, flexibility have so far ensured merchandising effectiveness for
ITC .

With increasing competition in the personal care product segment, the

importance of availability, visibility of personal care product factors are
on the rise. This is particularly important in a scenario where even local
players are adopting these practices to increase their sales. The study
reveals that the availability and visibility ambience in retile handlers are
boosting the sales of personal care products. National brands and local
brands together are displayed and compete for their market share. In
order to increase the sales of ITC , their availability, visibility of product
portfolio plays a very influencing role