Sales and Distribution

Submitted To: Prof. Bindesh Mishra Management

By: Group 10
Abhinav Kumar
Saurav Shandilya
Abhishek Sinha
Akashdeep
Vishal Kumar
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Company Profile:
ITC was established on August 24, 1910

Indian public conglomerate company headquartered in

Kolkata, West Bengal, India
ITC's gross revenue for FY2023 stood at Rs. 69480 crores
and market capitalization of Rs. 561098 crores
The company is currently headed by Yogesh Chander Deveshwar
(Chairman)
It employs over 25,959 people (as on 31st March 2023) at more
than 60 locations across India.

Among India's Most Valuable Companies by Business Today.

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ORGANOGRAM
 About ITC Ltd. (Contd.)

Vision Mission
• Sustain ITC’s position as one • To the
of India’s most valuable generating
enhance capability
wealthof the
corporations through world- enterprise in a globalising
class performance, creating environment, delivering
growing value for the Indian superior and sustainable
economy and stakeholder value
the Company’s stakeholders

4
 Objective

To create, communicate and deliver superior value to

consumer though effective sales and distribution
management.

5
About ITC Ltd. (Contd.)
Diversified Product Categories:
FMCG

IT Hotels

Paper Agri-
Boards Business

Packaging
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 Background
Sales Management means “the planning, direction, and control
of personal selling including recruiting, selecting, equipping,
assigning, routing, supervising, paying and motivating as
these tasks apply to personal salesforce”. – American
Marketing Association

• The of sales management are sales volume,

contribution
objectives to profit and continuing growth.

“We … recognize that selling only works when everything is

right for the customer—when we deliver value.”
– Rick Makos (President, NCR-Canada)

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 SWOT Analysis
Strength
 Strong brand recognition
 Experienced Management
 Diversified Product Portfolio
 Well established distribution network
Weakness
 Dependence on tobacco revenues
 Negative Connection of Tobacco
 Low export levels

Opportunity Threat
Low per capita consumption of personal Competition both Domestic &
care products International
 Untapped rural market  Ban on smoking
 Collaboration with foreign players  Competition from unbranded
 e-retailing products
High competition from established
companies
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Presence of ITC Ltd..

NORTH EAST
Division Division

SOUTH WEST
Division Division

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Sales Hierarchy of ITC

Division Manager

Regional Branch Manager

Branch Manager

Assistant Manager

Area Manager

Area Executive
Sales Trainee
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 Recruitment

Top B- Schools • Assistant under Training (AUT)

Other
• Sales Trainee
B- schools

Employee • Lateral Recruitment (for the

References and post of AE) by BM and
Consultancy HRM
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 Recruitment (Contd .)
CV Short listing
Level 1
Group Discussions / Business Plan
Level Competition
2
Interview round 1st Round
Level
3
Written Test - 3 sections. Total of 55
Level questions. Numerical - 15, Analytical
4 - 20, Verbal - 20 questions.
Level 5

Interview round 2

Quality of 13
Training and Development

Induction On Job
Training Trainin
g

Internal Competency
Developmen
Trainin t
g 13
 Training and Development
(Contd.)

Induction Training:

Sales Trainee

Duration: 1 week

Place: HO

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Training and Development
On Job Training:

New Sales Training

Process
Through NIS
Personnel
Top
Distributor’s distributors
Sales Person &
Supervisor
3 Salesman are
selected
On Job Training

New Entrant Duration: 3

(S. Trainee & AUT) days

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Training and Development
(Contd.)
For Sales
Trainee and AUT

Internal Duration: 1
Training: month

In Branch office

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Training and Development
(Contd.)
Competency Training:

Branch Manager
recommends AE and AM
for training

Location: Head Office

Duration: 6 Days

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 Compensation (Contd.)
Position CTC (in Variable
Rs. Lakhs
annually)
Branch Manager 28 - 30 20% of CTC

Assistant Manager 17.2 – 17.4 20% of CTC

Area Manager 15.2 – 15.4 20% 0f CTC

Area Executive 9.2 – 9.4 20% of CTC

Sales Trainee 4.2 – 4.4 20% of CTC

Variable salary is decided on the basis of performance and

target met by sales personnel
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Performance evaluation of sales
personnel

Monthly • Monthly Sales Target

Target • Visibility Target

Performanc • Sales Volume for each

e of the product category
branch • Market share growth
rate
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Performance evaluation of
sales personnel
STAR WARS:

Quiz

Motivation

Updated
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Wholesale Distributor (WD)

WD

Driver/
Salesmen Supervisors Delivery Boy
Thelawala

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WD employees: Recruitment
and Compensation
Recruitment:
The salespersons of distributors are appointed
by the distributor himself in consultation with
ITC officials
Compensation:
• Their fixed salary is paid by the distributor but
is reimbursed by the company.
• The variable salary of salesmen is decided
on his meeting of sales target.
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 WD employees: Recruitment
and Compensation
Salesmen Evaluation and Compensation

•The compensation received by

salesmen depends upon the target achieved
by them

• Targets under consideration:

1. Monthly sales target
2. Product wise sales target
3. Category wise
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 WD employees: Recruitment and
Compensation
Control mechanism:
• The performance and work of WD employees is evaluated by
company’s officials weekly.
• Their daily sales order is monitored by Area Executive.
• The salesmen is given a geographical territory which doesn’t
consider sales potential.
• Salesmen has to cover 30 outlets each day.
• They are given a beat plan for each day.
• If a WD employee is not performing then the company can
sack him.

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 WD employees: Recruitment and
Compensation
Role of Salesmen:
• Prospecting- Searching for new outlets
• Targeting- Visiting potential outlets
• Communicating- Informing about products and offers
• An order taker- As per requirement in retail and
convenience outlet
• Selling to retailers and convenience outlet
• Servicing- Removal of
damaged/expired(DND)products
• Information gathering- About needs/ preferences of
customers
• Allocating- Fixed time to each outlets 25
26
 Distribution Channel
CNF

FACTORY

WHOLESALE
DEALER BASE

RETAILER
WHOLESALE
DISTRIBUTO
R

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 Channel Type
3-level Distribution Channel:

Wholesale
Company Wholesaler Retailers Consumer
Distributor

2 -level Distribution Channel:

Company Wholesale
Retailers Consumer
Distributor

Wholesale
Company Wholesaler Consumer
Distributor
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Distribution Type

Exclusive (Textile)

Selective (Paper
Boards & Cigarettes)

Intense (Other
FMCG Products)

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Physical Distribution/Logistic
Mother
Hub/Factor
y
C
e
n
t
r
a
l
WD Godowns W
a
r
e
h
Outlets
o
u 30
s
Effective Working of Channel
Members

Performance is measured on
following broad
parameters:

Distribution Health Business Health (Sales

(Outlet coverage, Performance
availability, visibility benchmarked to
levels, etc) relevant Circle)

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Effective Working of Channel
Members (Contd.)
Score card for Measurement of WD Performance:

Bands Score
Platinum > 95%
Gold 85-95%
Silver 80-85%
Bronze Star 75-80%
Bronze 60-65%
Non Performing < 60%

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Effective Working of Channel
Members (Contd.)
Actionable basis for WD evaluation:
Essentials Check Bands Follow up action
Not Qualified Non Performing Replace
Not Qualified Bronze On Notice
Not Qualified Bronze Star/ Silver On Notice
BM to revert with follow
up plan
Qualified Non Performing On Notice
Qualified Bronze On Notice
Time bound action plan

Qualified Bronze Star/ Silver Encouragement for further

improvement

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 Problem Statement
Causes:
– Lack of proper training to distributor’s salesmen.
– Poor Infrastructural support (TPS software not updated on regular
basis).
– Inefficient sales strategy (territory allotted to salesmen
doesn’t consider sales potential of region).

Effect:
– Problem of product recall by salesmen.
– More focus on sales target rather than business expansion. (Salesman
focuses more on large outlets which purchases in large volume).
– Poor level of motivation among sales staff.

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4
 Improve Management
• Proper training should be provided to salesmen.

• Salesmen should be regularly informed about the changing offers and

schemes on the products.

• Territory allotted to salesmen should consider the sales potential and

concentration of outlets in that area

• Salesmen should be provided incentive for adding new outlets.

• TPS should be updated regularly to show current stock details.

• The incentive of the salesmen should be based on the number of outlets

served by them too rather than merely on sales volume .
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Thank You

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