ITC (Indian Tobacco Company )

Submitted to: Submitted by:

Arjun S. (20RM909)
Dr. Pankaj Priya
Kriti
Mehandru (20RM925)

Neerav Jain
 Introduction
ITC was incorporated on 24 August 1910 and headquartered in
Kolkata,WestBengal.
Company completed 100 years in 2010 and as of 2019–20, had an annual
turnover of US$10.74 billion and a market capitalization of US$35 billion
It employs over 36,500 people at more than 60 locations across India and is part
of the Forbes list.
The Company's multi-business portfolio encompasses a wide range of businesses
- Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes
and Cigars, Branded Apparel, Education and Stationery Products etc.
Understanding the Sales And Distribution Chain

• ITC - WD link
• Leads Supervisor & DS
Wholesale Distributor
AE Team

• WD - DS link
Supply Chain
• Stock , Route , Sales AE

Superviso Planning , DS Training

r & Development
Salesman Channels
• WD - Channel link
• Sales , Merchandising Supervisor Salesman Convenience , Hawker, ,HORECA , Wholesale
Salesman
Processes in the chain
Sales Call Planning &
Close Preparation
Wholesale Distributor

AE
Supply Chain
Sales Call Process Stock Check
Merchandis &
Salesman
Channels ing Presentatio
n
Grocery , Bakery ,
Convenience , Hawker,
Supervisor Chemist ,Fancy Stores ,
Salesman HORECA , Wholesale
Consumption Centre
Sales and
Billing

• Load Adequate Stock , Merchandising Material

• Carry Pending Bill , Rack Cleaning Material , Bill Book Coverage
Coverage
Planning &
Preparation

Sales
Sales
Quality
Quality
• Check Stock On Hand , Expiry Stock , DND Value/Vol
Value/Vol
of
of Service
Service
• Inform Previous week sales , Suggest Purchase Quantity ume
ume
Stock Check &
Presentation

Sales
Sales
Deliverables
Deliverables
• Confirm Order , Cut the Bill
• Deliver Order
Sales and Billing
Productiv
Productiv
Line
Line Cuts
Cuts ity
ity
• Clean Rack , Rotate new stock on rack
• Exchange DND .
Merchandising
Bill
Bill Cuts
Cuts

5
 Channel Levels
• ITC HAS ONE OF THE MOST EXTENSIVE DISTR IB UTION
NETWOR KS IN INDIA. ITS PR ODUC TS AR E AVAILAB LE AT
4.3 MILLION OF THE ESTIMATED EIGHT MILLION R ETAIL
STOR ES IN INDIA.

• M O D E L 1 – L A R G E C IT IE S , A R E A S W I T H H I G H D E M A N D .

Company C&F Wholesaler Retailer Consumer

• MODEL 2 – SMALL CITIES

Company C&F Retailer Consumer
Hybrid distribution model– SHAKUJA SONS (DELHI)
HIGHLIGHTS
HYBRID MODEL WEEKLY PLAN
Two routes clubbed together in one day
DAY 1
Alternate day cycle of Order Day (OD) and Supply Day(SD) KHIDKI
ORDER HAUZRANI
BOOKING
EXTENSION
Visibility of DS is just doubled per route
DAY 2 KHIDKI
No of outlets covered increased in one day. HAUZRANI
DELIVERY EXTENSION
14 day average : Inc Sales , inc bill cut DAY 3
ORDER SAKET SEKH SARAI
BOOKING
EARLIER AVG. BILL CUT
DAY 4
17 BILLS/ROUTE SAKET SEKH SARAI
DELIVERY
BILL CUTS IN MODEL
24 BILLS/ROUTE DAY 5
MALVIYA
ORDER HAUZKHAS
NAGAR
BOOKING
AVG DAILY OUTLETS COVERED 22/ROUTE
AVG DAILY OUTLETS COVERED 38/ROUTE, DAY 6 MALVIYA
HAUZKHAS
DELIVERY NAGAR

7
Documents regarding flow of
Information
Opening stock : The distributor takes the order every week whereas the retailers take the order after every two
week. At the point of delivery distributors need to pay cash and collect stock, no credit is given on cigarettes. 
Received stock: It is the stock which each distributor obtains at the beginning of the week from the warehouse
(Area manager) and further distributes it to the wholesalers (maximum 1 month credit) and hawkers (1 day
credit). 
Sale of the stock: This includes the total sale done by the distributors and the retailers from the stock in a week. 
Damaged stock: Cigarettes have a shelf life of 3-6 month. All damaged or unsold stock is bought by the
company and sent to the factories where the tobacco is extracted, processed and new cigarettes are produced. 
Closing stock: The stock which is left at the end of the week
Management of Field Force
Monetary Method of Rewarding: As per the HR policy of ITC Ltd the field force is monetarily rewarded
based on the number of bills drawn on the distributors. 

Non-Monetary Method of Rewarding: The field force of ITC Ltd is given unlimited medical benefits in terms
of non-monetary methods of rewarding.

Target setting Mechanism: The field force is given targets in terms of the number of bills generated by an
individual.

Monitoring Mechanism : The members of the field force reports to their immediate supervisor and this
follows throughout the hierarchy.

Training and HR Inputs: The salesmen of the distributors are under the payroll of ITC ltd. Incase of mass
recruitment the new sales force is given training by the HR department of ITC Ltd. As per the HR norms, ITC
Ltd provides training to its own employees of the distribution network at regular intervals.
Transportation and Logistics
 Third party owned trucks are used to transport the cigarettes from the production plant to the company
depot/warehouse.

 Similarly, third party owned trucks are also used to transport the goods from the warehouse to the
distributors. All these transportation costs are borne by the company.

 From the distributors place, the cigarettes are distributed to the wholesalers & the retailers (panwalas)
through the user delivery vans, rickshaw, cycles, motorcycles, autos. All these transportation costs are
borne by the distributor.

 ITC Cigarettes have consolidated their inventory by deploying SAP module of Information technology in
their warehouses. The stock positions are automatically updated in the database as & when goods are sold
from the warehouse.

 Replenishment orders are generated to the company when the stock level goes below the benchmark level
which considers the order lead time as well.
 Packaging

Cigarette
Carton Tukda
Pack

• One carton contains around 10000+

cigarette

• Quantity in “TUKDA” is around 10-20

Recommendation
Retailers viewed that display of the products has influenced their sale and many people in some areas
recognize the product not by its name but by its external appearance. As it is suggested that merchandising
activity should be extended to all General retailers.
Distributor should maintain stock of all ITC products.
Modernization and standardization of retailers’ network must be carried out in order to exchange ideas
on successful selling strategies and identifying areas of improvements “Sales through Services” and a
Retailer Development Program must be carried out.
General discount and incentive from the company.
It is likely to advise to the sales representative, to give an opportunity to retailers to put their point of
view during visit.
Still, few of the retailers’ choice of stocking depend upon the factors like margin, schemes, discounts and
offers. It attracts bulk orders to distributor. Distributor must be taking care of satisfaction of retailers in
respect to above given factors.
Periodically review the performance of their retailer.
THANKYOU