Final Project Report - Abhishek Pathak - ITC

A REPORT ON
To study the sales and distribution chain from wholesale distributor point to the retailers for Bingo to analyze sales gap and the expectation of retailers towards ITC distributors
IN ITC Corp. Ltd.
BY Abhishek Pathak 12BSPHH010033
SIP 2013/ITC Corp. Ltd. /Abhishek Pathak
A PROJECT REPORT ON
To study the sales and distribution chain from wholesale distributor point to the retailers for Bingo to analyze sales gap and the expectation of retailers towards ITC distributor
IN ITC Corp. Ltd. BY
Abhishek Pathak (12BSPHH010033)

A Report submitted in partial fulfilment of the requirements of MBA program of IBS, Hyderabad
Distribution list
Mr. Ganesh Maurya Area Executive ITC CORP. LTD. (Company guide) Mr. Sameer Seksaria Area Manager Mr. Satya Prasad IBS, HYDERABAD (Faculty Guide)
ITC Corp. Ltd., Gurgaon Date of Submission 24 May, 2013

2
AUTHORIZATION This is to certify that the work titled To study the sales and distribution chain from wholesale distributor point to the retailers for Bingo to analyze the sales gap and the expectation of retailers towards ITC distributor is a bona fide record of research work done by Mr. Abhishek Pathak in a partial fulfilment of the requirement of MBA program at IBS Hyderabad. The performance was satisfactory during the course of the project.
Yours faithfully Abhishek Pathak
ACKNOWLEDGEMENTS
I am extremely grateful to IBS Hyderabad for having prescribed this internship and project work to me as a part of the academic requirement in the MBA course. The completion of this project work has enabled me to gain invaluable knowledge. I would like to thank Mr. Satyakam Vashis ht North Sales head (Food division) Area Executive Food Division, ITC Corp. Ltd., who gave me a wonderful opportunity to work, learn and grow in their esteemed organization. With great pride and extreme gratitude, I wish to thank my illustrious and inspiring faculty guide Prof. Satya Prasad IBS, Hyderabad, who left no stones unturned in helping me out in the successful completion of my project work. I am fortunate to get such an encouraging guide who continuously counselled me and helped me accomplish my goals. I would like to express my gratitude towards Mr. Ganesh Maurya Area executive and Mr. Sameer Seksaria Area Manager (South Delhi) whose invaluable support and guidance has helped me to gain knowledge of various aspects of Marketing and has given me an opportunity to sharpen my skill-sets and become an efficient manager. I would give my sincere thanks to M rs. Roopa Prabhu Manager HR, Mrs. S. R. Bindiya HR manager and Mr. Himanshu Singh sales officer for his immense support and guidance in understanding various intricacies of marketing measures adopted by Trane India. The ir support and assistance during the term of the project period was of great value & learning. Their constant guidance and mentoring helped me a lot in making this project a success. At this juncture, I wish to appreciate the management and staff of ITC Corp. Ltd. for providing the entire state of the art infrastructure and resources, to enable me to complete and enrich my project.
Table of contents
Heading no. Topic Authorization Acknowledgement Executive Summery 1.0 INTRODUCTION 1.1 Industry analysis 1.1.1 Indian Food Processing Industry 1.1.2 Ministry of Food Processing Industry 1.1.3 Indian snacks industry 1.1.4 Constraints & Drivers of growth 1.1.5 Swot analysis of Indian Snacks Industry 2 Company analysis 2.1 Establishment 2.2 Growth and diversification 2.3 About Bingo brand 2.4 ITC- distribution network 2.5The economics 2.6 Channel Structure 3 Objective of the study 3.1 Limitation of the study 3.2 Proposed methodology 3.2.1Detailed methodology 4 Project specific analysis. 4.1 Market analysis (Phase 1) 4.2 Sales Loss calculations 4.3 Hybrid distribution model 4.4 Observations 4.5 Questionnaire analysis (Phase 2) 4.5.1 Sample design 4.5.2 Sample Area details 4.5.3 Sampling Method 4.5.4 Field work 4.5.5 Data collection method
5
Page no 3 4 7 8 8 8 8 10 11 13 14 14 14 16 17 18 19 20 20 21 21 22 21 23 24 25 26 26 26 27 27 27
4.5.6 Analysis and interpretation 4.5.7 Hypothesis Testing 4.5.8 Findings 5 6 7 8 9 Recommendations Conclusion Learnings from SIP Screen shots of various softwares used at ITC Ltd References 9.1 Internet References (websites) 9.2 Internet References (articles) 9.3 Books References 9.4 Classified References 10 Appendix 10.1 Annexure 1 10.2 Annexure 2
28 47 49 51 52 53 54 56 56 56 56 57 58 58 61
Executive Summery
Since with its launch in March, 2007, as a brand BINGO has been through lots of stages. Sales and Distribution as well as branding aspects of marketing for BINGO have been explored and matured to a large extent. Though the product is considered to be in a matured stage itself, with a market share of 18% in the branded snacks food category, it has been successful to a vast extent in generating the required Brand recall for the category. However, the Sales and Distribution for BINGO despite its highly extensive market reach has been abiding with a legion of issues which threaten its betterment and profitability as a business category. The project intends to study the Sales and Distribution chain from the Wholesale Distributor dealer point to the Retailer and indentify the inefficiencies in the processes as well as this study would also bring into light the expectation and perception of the retailers towards ITC distributor. After an initial exploratory survey of Wholesale Distributor (WD) points, across 90 routes and 2000+ retail outlets, it was identified that there is a defiantly a demand - supply mismatch in the market. More precisely, the retailer did not gain the right variants that he demanded in most of the specific cases. The stock keeping units (SKU) mix that the retailer required were not serviced to him by the Distributor Salesperson (DS) in the exact proportion. Also, the Destroy and Destruct (DND), SKUs whose shelf life expired or had air outs and were incapable of selling, were 4%+ of sales by revenue for BINGO , which is huge as compared to other food category products of ITC and also by the competitive industry standards of 2-2.5% as surveyed on wholesale dealers. The scope of the project spanned across Delhi city. ITC for BINGO operates in Delhi via 8 WDs and has a reach of more than 5000 retail outlets. a Convenience Delivery Model (CDM) is also used to reach a miniscule part of the territory of about 1%. For the purpose of a Pan-Delhi reach, to give a most possible accurate picture, the study was done at 2 WD points, having coverage of 2000+ retail outlets. This gave the study an approximately 40 % to 50% coverage of Delhi City.
INTRODUCTION 1.1 Industry Analysis

1.1.1 Indian Food Processing Industry Food processing industry in India is the growing sector that has gained prominence in the recent years. Raw materials availability, changing lifestyle and trends, also relaxation and flexibility in government and company policies have given a considerable force to the industr ys growth. This sector is playing the few that serves as a vital link between the agriculture and industrial segments of the economy. Building and empowering this network is of critical importance to improve the value of agricultural produce; ensure remunerative prices to farmers and at the same time create favourable demand for Indian agricultural products in the international market. A purport to the food processing sector implies significant development of the agriculture sector and ensures value addition to it. 1.1.2 Ministry of Food Processing Industries The Ministry had been set up in 1998 and the industry segments that come under its purview are: Fruit & Vegetable processing (including freezing and dehydration) Grain Processing Processing of Fish (including canning and freezing) Processing and refrigeration of certain products related to agriculture, dairy products, eggs, meat and meat products Beer, including non-alcoholic beer Alcoholic drinks from non-molasses base Aerated water and soft drinks Specialized packaging for food processing industries. The Ministry of Food Processing Industries, Government of India, has calculated the size of the Indian food market at US$ 230 bn (Rs 10,600 bn). The processed food market is projected to be over US$ 170 bn, of which the primarily processed food market accounts for 60%, while the value-added processed food market is around 40%. Contribution of FPI sector has increased to Rs. 66,078 crore in 2009-10 from Rs. 47,689 crore in 2005-06 with CAGR of 8.49%. CAGR for total manufacturing sector during the same period has been 9.35%. The segments that have driven the growth are the beverages and meat & meat products and processed fish sectors. In India, the food processing industry has a share of 1.5% in the total GDP of the country, even though as part of total manufacturing accounts for9%.
Indias Share in world trade in respect of processed food is about 1.6%.
Contribution of food processing industry to GDP increased to 9.35 % in 2009-10 from 8.40 % in 2005
1.1.3 Indian Snacks Industry

Snacks are a part of Consumer Convenience/ Packaged Foods segment. Snacks are described as a small quantity of food eaten between meals or in place of a meal. Snack food generally comprises ready- to-eat mixes, chips, namkeen bakery products, and other light processed foods According to the ministry of food processing, the snack s food industry is worth Rs 100 billion in value and over 4,00,000 tonnes in terms of volume.
Though very large and diverse, the snacks industry is dominated by the unorga nized sector. According to an aped a survey almost 1,000 snack items and 3500 types of savouries are sold across India. The branded snacks are sold at least 25% higher than the unbranded products. Savoury snacks have been a part of Indian food addiction and eating tendency, since almost ages. Though there is no particular time for snacks, normally they are consumed at break fast time. The variety is almost tasty with specialties from all regions, which have gained national adobtance.
The industry has been growing their revenue around 10% for the last three years, while the branded segment is growing the same around 25% per annum to stand at Rs 5,000-Rs 5,500 crores, due to several reasons like snacking at home while enjoying show on TV, Multiplex culture, pubs and bars (where they are served free). AC Nielsen's retail inspection shows that the large sales volumes are due to a marked preference for traditional foods, regional bias towards indigenous snacks and good value- for- money perception. Of course the branded segment is much smaller at Rs 2,200 crores, which is what makes it so attractive to food companies that are looking at bigger shares. In the branded snacks market, to get down to basics, Frito Lay commands a share of 45%, followed by Haldirams at 27% and ITC at 18%. The rest is divided between a handful of new entrants, and many regional players. As the Indian economy continues to grow, and production standards improve, many snack food companies are making important investments into plant equipment and packaging machinery. Pepsi Foods Ltd., now known as Frito- Lay India Ltd., yie lds India's largest snack food manufacturers brands, including Ruffles, Hostess, Cheetos and Uncle Chips. Pringles is also a baked potato crisp, unlike many other potato based Indian snack foods that are fried. P&G currently imports the Pringles product and therefore the product has been priced at a premium and is marketed to a micro-niche.
10
1.1.4 Constraints & Drivers of Growth

Emergence of organised food retail, Growing urbanization, increasing disposable inco me, changing lifestyle trends and food consumption behaviours are the key factors in driving the growth for processed foods in India. These are many post- liberalisation trends that have given an impetus to the sector. Consumption behaviours in India have been undergoing a visible shift. At the earliest, the market share of cereal products was the highest, followed by milk products, vegetables, and edible oil and meat products. However, in recent years, the growth rates for fruits, vegetables, meat and dairy products have been higher than cereals and pulses. This move in turn infers that there is also a need to diverse the food products base to match the changing consumption patterns. This shift in consumption follows the pattern observed in developed countries in the evolution of the global food demand. There is a shift from carbohydrate staples to animal sources and sugar. Going by this pattern, in future, there will be increasing demand for prepared meals, snack foods and convenience foods and further on the demand would shift towards functional, organic and diet foods. Some of the important key constraints identified by the industry include:
Inefficient supply chain and more involvement of middlemen
taxation
Investments
The total inflow of foreign direct investment in the food processing sector has been around Rs 52.7 billion (US$ 1.2 billion) between 1991 to November 2006. Dur ing the last five years, FDI faced an inflow of over Rs 24 billion of foreign investment. In a single year the highest investment was in 2001-02 amounting to Rs 10 bn.
11
Maharashtra was a mong the front- runners to receive the highest share of F DI in food processing during the last five years. The dairy and consumer industries received FDI worth Rs 2.7 billion each as foreign investment. About to 30 per cent of FDI in the food processing sector comes from European countries such as Germany, Italy ,Netherlands and France. Cadbury, Godrej-Pilsbury, Nutricia International, Perfetti, Manjini Comaco are some of the successful ventures from EU countries. Major Food Processing Companies in India
The entry of multinational companies has increased co mpetition in the food processing industry. At the same time, these companies have been facing tough competition from strong Indian brands. These levels of competition have increased innovations, facilitating sustained growth of the sector and also improve global competitiveness. This emerging new growth phase of the sector is just in its initial stages with the potential for India to emerge as a leading food supplier to the world.
12
1.1.5 SWOT Analysis of Indian Snacks Industry
Strengths Abundant availability of raw material. over the country.

.
Opportunities Rising income levels and changing consumption patterns. Favourable demographic profile and changing lifestyles. Integration of development in contemporary technologies such as biotechnology, electronics, material science etc. offer major scope for rapid improvement and progress. Opening of global markets.
Weaknesses
Threats fresh food.
facilities. methods as per international standards. number of intermediaries. ing capital.
players.
13
Company Analysis
2.1 Establishment
Incorporated on 24 August 1910 as the Imperial Tobacco Co mpany of India Limited, the company's name was changed to ITC Limited in 1974. Rated among the 'World's Best Big Companies' by Forbes magazine, ITC ranks third on all major profit parameters among India's private sector corporations. There are ITC employs over 20,000 people at more than 60 locations across India. It has a turnover of $3 billion.
2.2 Growth and Diversification
ITC is one of India's foremost private sector compa nies with a market capitalization of nearly US $ 18 billion and a turnover of over US $ 4.75 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC also ranks among India's top 10 `Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agricultural-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Stationery. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC exercises this philosophy by not only driving every of its businesses towards international competitiveness but by also consciously contributing to enhancing and benefitting the competitiveness of the larger value chain of which it is a part." ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time- tested core co mpetencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hotels business. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India.
14
Major brands segments of ITC are as follows
ITC emp loys over 21,000 people at more than 60 locations across India. The Company continuously endeavours to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 3, 88,000 shareholders, fulfil the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the nation. For the Shareholder."
15
About Bingo Brand:In now a days people are much trendy about their eating habits. Bingo is an established brand in snacks segment with lots of product variants in the market. At present Bingo has 4 sub-brands in its portfolio, each of which have unique values based on consumer need differentiation. Bingo! Yumitos - 'Take a Yumitos Break' Bingo! Yumitos Potato Chips are the best partner for break. Bingo! Yumitos is very tempting and yummy account the full 7 bodied flavours.
Bingo! Mad Angles - "Har Angle se Mmmm..." One of the biggest successes from the Bingo! Portfolio, Bingo! Mad Angles has carved a niche for itself in the consumers mind and is synonymous with the perfect triangular snack.
16
Bingo! Tedhe Medhe - "Har Stick mein alag twist..." Bingo! Tedhe Medhe is the popular spindle shaped format from Bingo! that is a delicious blend of handpicked spices with an aroma that makes one crave for more.
Bingo! Tangles - "Khaoge to Khilaoge..." Each piece of this innovative crunchy snack is made out of strands loaded with lip smacking masala or tantalizing tomato or simply salted flavours.
2.4 ITC- Distribution Network

The primary objective of supply chain management is to fulfil customer demands through the most efficient use of resources. A logistics network, supply chain, or supply network is a coordinated system of entities, activities, resources and information involved in moving the product or service from the supplier to the customer.
17
Primary (Shipment)
Secondary (Retailing)
Consumer Purchase (Off take)
Factory
C&FA
Distributor
Retailer
Consumer
SuperStockist
SubStockist
There are several stages through which the money comes in an out. The distribution intermediaries make the whole system of supply chain economically viable. Each layer of intermediaries implies fewer transaction complexities for all the layers, augmenting the reach. The specialization, experience, and knowledge of local contacts , conditions and scale through such a network help achieve Operational Efficiency.
Without having to focus upon distribution, the brand managers can focus on their core activity of sourcing, product development and marketing. The companies could get a cost advantage since most intermediaries are family owned businesses with low overhead and operational costs. The brand owners achieve a better return on capital employed as intermediaries hold the inventories.
2.5 THE ECONOMICS For an FMCG company, the direct customer is the distributors. The several intermediaries between the company and the real consumers ( C&FA, Distributors, stockiest, Wholesalers, Super-stockiest, Sub-stickiest and Retailers ) need compensations for the actual costs incurred, namely the manpower costs ,inventory holding costs, , credit provided to the next intermediary, overheads, transportation costs, and entrepreneurs risks and efforts. The remunerat ion is given as a combination with gross margin (mark- up) on sales, reimbursements and. commission on sales. There are following typical Margins in such Supply Chains are:
Distributor 5% Retailer 7-15%

18
Wholesaler 1-1.5% Super-stockiest 2% Sub-stockiest 5%
A distributors investment consists of inventory, accounts payable and accounts receivables. He draws his income from commission or gross margin on sales. The expenses include discount expense, overheads and distribution expense. Typically an FMCG distributor expects about to 25% Return on investment.
2.6
CHANNEL STRUCTURE
This channel structure helps ITC to bring an enormous and efficient reach to the final consumer. At every wholesale dealer point mapping of beats have been done so as to get maximum retailers reach by sales distributor. Every sales distributor , stockist an sales officer continuously examine the respective beats and take an effective action in order to serve their retailers best. It could help them to manage a profitable and better relationship with the retailers as well as to know the satisfaction and expectation level of retailers. Sometimes merchandising activity also boost up the sales in order to promote the launch of new products or increasing the brand visibility of product. Retailers like grocery, bakery, chemist, fancy stores are the prime targets for the wholesa le dealers which are effectively reached by sales distributor weekly in order to book the respective orders of retailers as well as to supply the respective demand of Bingo snacks
19
3. Objectives of the study
The project aims to achieve the following objectives during its course of study: 1. To formulate processes to evaluate South Delhi sales loss incurred due to demand supply mismatch also to find out the [potential reason for the sales loss. 2. To formulate a model and implement it to decrease the sales loss. 4. To formulate a model and implement it to decrease the DND stock percentage. 5. This project intends to find out the retailers satisfaction and expectation towards ITC distributor competitive sales of different snacks. 6. Identifying new and innovative strategies to increase sales in less profitable markets. 7. Ascertain the opinion about merchandising activity also to measure the behaviour of sales person during visit. 3.1 imitations of the study
The study though being done at a South Delhi level, takes into account the generalizations and repeatability of processes to be considered for the models to be implemented to formulate them scalable at wider levels of geography. The study has been done on a 40% to 50% coverage area Delhi to eliminate the risks of unnecessary and avoidable generalizations. Theses analysis focuses on more firsthand data and information also reduces the error rate in case of data procured from already inefficient sources. However, one limitation of the project can be the small size of geography covered to infer any results on a national level. But, even 40% to 50% of a territory is far bigger than a good sample population. Thus this limitation actually becomes the strength of the project. Lastly some important limitations of the study are: 1. A short period of just 2 months for imp lementation of the models. This could be hugely impacted by seasonal variations and temporary market forces. 2. Issues related to scalability of the models proposed , though being tested at various points in Delhi, still can be debatable and might undergo changes in case of a different geography. 3. Moreover, the chaotic dynamics of some geography can make the model susceptible to faulty inferences and thus a modification has to be proposed in that case.
4. The limitation of external validity holds true as the data collected from the region of South Delhi does not apply to the population of India.
20
3. Proposed methodology
3.1 Detailed Methodology The basic methodology is to formulate the processes and identify the right places to implement them in order to achieve the objectives and relevant goals. Thereafter, these results obtained from the observational data combined with a historical data are used to make the objectives to be fulfilled. The study then would aim to formulate processes to rectify them. The study starts with an initial four week of ad hoc market exploration which includes:
1. Visiting all WD points across South Delhi. 2. Covering as many routes as possible with the Distributor Salesperson (DS) on his sales day. 3. Focused group discussion with Wholesaler Dealers, DS and the retailers across routes. 4. To understand the Sales and Distribution channel from WD to Retailer. 5. To understand the various processes involved in the entire chain. 6. To identify the inefficiencies and inaccuracy in the processes. 7. To formulate processes to identify and quantify the inaccuracy in processes. 8. To imple ment these processes across South Delhi and find the average sales loss incurred due to demand supply mis match as well as conduct a discussion with the retailers and questionnaire survey in order to find the expectation level and perception towards ITC distributor. 9. To formulate models to eliminate or reduce the inaccuracy. 10. To implement the models across Delhi and record the reductions in inaccuracy. 11. Further refine, improve and confirm on the models by testing them in varied territories.
21
4. Project specific analysis

4.1 Market Analysis No of Retail store covered across 90 roads and observe the visibility of different snacks using market accomplishment report and general information questionnaire. No. of retail store covered during the visit of different area assigned to me. No. of retail stores covered 420+ No. of routes covered - 90
100%
90%
80% 70%
60%
50% 40% 30% not visible Visibile
20%
10% 0% Bingo Lays Parle's wafers Crax Bala ji uncle chips
This graph above denotes the visibility of Bingo in various retail shops that have been visited in South Delhi. The outcome of this survey shows the leading position of Lays in the market followed by Bingo. In order to redress this problem, Bingo must improve its merchandising by giving incentives in lesser visible areas. Also since the smaller profit margin discourages the smaller retailers to showcase this product, better steps should be taken in this regard so that Bingo reaches out to the masses.
22
4.2 SALES LOSS CALCULATION The process was implemented across 90 roads of South Delhi.
23
4.3 Hybrid Distribution Model

Order Booking Model at SAKHUJA SONS Description: In order booking, unlike ready stock delivery method, we start to cover the whole route by booking the orders on DAY 1, order booking day (OD) and make the supply on DAY 2, supply day (SD). Since order booking is fast as the mode of transport is a two wheeler because it is more convenient in Delhi traffic jam, we have an increased the running efficiency of the Distributor Salesman (DS) and therefore we can cover two adjacent routes on DAY 1. Likewise, the supply process on DAY 2 is made again for both the routes. This cycle of one to one alternate OD and Supply Day is continued for the whole week, making three days for OD and three days for SD. Also on the SD, the DS is supposed to carry 40% to 50% top up stock apart from the ordered stock, Which he supplies through ready to stock method or cash and carry method to all those outlets Which due to some reasons could not be tracked or even to the same outlets in case they asked for more, while he is going back to the route at end of the day. This gives us opportunity for bonus sales or helps to compensate for any sales loss potential of that route if it had occurred during order booking. Thus, hybrid model exploits and give benefits the advantages of both ready stock and order booking method to achieve optimum results.
Orde r booking supply Ready to stock supply The objectives achieved in order booking method contrary to the ready stock are: 1. Increased Sales as per the actual potential of the route. 2. Reduced possible Sales Loss due to variant not available at WD point, if it had been used to delivered by ready stock supply. 3. Possibly reduced Sales Loss due to stock out of variants, if it had been given by ready stock supply.
24
4. Increased visibility or presence of the DS on the same route which are covered already. which
Has now been doubled, as there are two visits on the same route per week. 5. Increased efficiency of the DS. 6. Increased Bill Cuts. 7. Increased Line Cuts. 8. Improved credit collection. 9. Improved supply chain with a larger coverage and more aggressive distribution.
4.4 Observations 1. Reduced possible Sales Loss due to stock out of variants, if it had been used to deliver by ready Stock supply. NO STOCK OUT 2. Increased visibility or presence of the DS on the same route, which has become Doubled now, as there are two visits on same route per week. 3. Increased efficiency of the DS. LESS TIME SPENT IN BILLING. LESS TIME SPENT IN SERVICING 4. Increased Bill Cuts. EARLIER AVG. BILL CUT 17 BILLS/ROUTE BILL CUTS IN ORDER BOOKING 20 BILLS/ROUTE 5. Improved supply chain with a larger coverage and more aggressive distribution. AVG DAILY OUTLETS COVERED 32/ROUTE AVG DAILY OUTLETS COVERED 38/ROUTE, 3 SERVED TWICE, .
So basically two major observations we can summarize it below. 1. The sales loss calculated was 22.76% South Delhi. 2. The new hybrid model helped to increase the sales, bill cuts, and more credit collection across south Delhi. This model has already been deployed at one more WD points i.e. AUSHTA ENTERPRISES.
25
4.5 Questionnaire analysis 4.5.1 Sample design

Population for this research is more than 900 retailers
4.5.2 Sample area SOUTH DELHI

Chirag Delhi Saket Hauzkhas Hauzrani Khidki Extension Malviya Nagar Savitri Nagar Mangala Bazar road Itwar Bazar Ekta Chowk Paryavaran Complex Ghitorni Madangiri Yusuf Sarai Sekh Sarai Sultanpur AS Mandir Road Greater kailash-I Greater kailash II Jawahar Park CR park & Alaknanda Daxin Puri Tughlakbad Road Neb Sarai Lado Sarai Kalka ji
26
4.5.3 Sampling method: The process of drawing samples from the population is called sampling. In order to assist the unbiased result in survey satisfied sampling is adopted. It also includes convenience sampling. 4.5.4 Field work: This market research involved a field work of 4 weeks where in I have administered pre-tested questionnaire to retailers. I have carried out the survey to 72 respondents by having the personal interaction with them about the expectation toward ITC distributor regarding services from ITC distributor and merchandising activity. TOOLS USED FOR ANALYSIS: 1. 2. a. b. Hypothesis testing Graphical presentation of the Analysis : Pie Charts Bar Diagrams 4.5.5 Data collection method: Primary data has been basically used to carry out the research successfully. The secondary data has been taken from various journals and publication even though company websites and relevant product advertisement websites has been used to gather the data. For the collection pf primary data a structured and non- disguised questionnaire was designed to collect data from the retailers. The questionnaire contains both open ended and close ended questions. Method of communication: In order to minimize the biasness in collection of data, I have been adopting the technique of personal interaction and focus interviews. Sources of data collection: The study relies to a great importance and extent on primary data to some extent on secondary data. Primary data: Questionnaire. Observation and Interview technique.
27
Secondary data: Information is collected through company websites, various Bingo advertisement and marketing websites. From various text books. Journals and magazines.
4.5.6 ANALYSIS AND INTERPRETATION:Q1. Type of store:Table No.-1 Type of store Grocery store Medical store Stationary store Others Total No. of retaile rs 52 6 4 10 72 Percentage (%) 72% 8% 6% 14% 100
Graph No.-1
No. of retailers
6% 8% 14% Grocery store Medical store 72%
Stationary store Others
28
Inte rpretations: The above graph shows that out of 72 Retail outlets visited 72% are Grocery stores, 8% Stationary stores and 6% Medical and 10 % other stores like bakery shops, Fruits &juice corner and dairy shops and also consist of super market run by the co-operative society. From the above pie chart it can conclude that major portion of the type of retail store is Grocery stores. From the porters five model
Micheal Porte rs 5 force analysis Porters 5 Forces Model Buyer Powe r: The buying power is quite high as they have multiple brands across different price points, hence giving them a wide variety to choose fro Since the snacks industry products has never been costly to purchase so customers can switch the brands at any time. Supplier Powe r: The supplier power is high because of the availability of large distribution network of suppliers in the market. Competitive Rivalry : Presence of large number of players in the market leads to high rivalry.
29
Threat of ne w entrant : For any new company, it is easy to entry but difficult to build and establish a new brand. However cheaper brands from local market and entry of other global brands is a concern. Availability of substitutes : The threat of substitutes in snacks industry market is high. Most of the competitors have very close substitute to snacks industry and even the products are comparatively same in price and tatste.
Q2. Which brands do you keep? Table No-2 Brand Lays Bingo Bala ji Parles wafers Yellow diamond crax Uncle chips Others No. of stores 72 69 8 15 33 46 58 Percentage (%) 100 % 95.8% 11.1% 20.8% 45.8% 63.8% 80.5%
Graph No-2
80
72
70
60 50 40 30
69 58 46 33
20
10
15 8
100% Lays 95.80% Bingo 11.10% Bala ji No. of stores 20.80% 45.80% 63.80% Uncle chips 80.50% Others
0
Parles Yellow wafers diamond crax Percentage (%)
30
Inte rpretation: The above graph shows the brand visibility of different snacks at retailers shop. Almost every retailer is likely to sell the lays snacks that interprets that lays is still the market leader and bingo is challenger with little less visibility in compare to lays snacks. Apart from that there are many local as well outside brands have taken the retailers second choice of stocking after bingo like haldiram nankeens, Pringles etc. Q3. Which brands do you sell the most? Table No- 3 Brands Lays Bingo Bala ji Par les wafers Yellow diamond crax Uncle chips No of stores 51 19 0 0 2 0 Percentage (%) 70.83 % 26.38% 0 0 2.77% 0
Graph No-3
sales assesment
60
50 No of stores
40 30 20 10
0 Lays
Percentage (%) 70.83%
Bingo
26.38%
Bala ji
0
Parles wafers 0
Yellow diamond crax 2.77%
Uncle chips
0
No of stores
51
19
31
Inte rpretation: The above graph states that lays is still the customers first preference in snacks so as to retailers also. There is a big gap between the customers prefer ence between lays and bingo. On assessment of above graph we can say that Lays is a well established brand while bingo is still struggling with the retailers choice of preference, but continuously expanding the distribution network would be helping to increase the market share of bingo in snacks industry.
Q 4. How would you rate the me rchandising activity of your ITC distributor? Table No.4 Merchandising Activity Excellent Good Fair Poor Very poor No. of retaile rs 4 35 29 4 0 Percentage (%) 5% 50% 41% 5% 0%
Graph No- 4
Merchandising activity
35 30 No of stores 25
20
15
10
5
0 No. of retailers
Percentage (%)
Excellent 4
5%
Good 35
49%
Fair 29
41%
Poor 4
5%
Very poor 0
0%
32
Inte rpretation: Most of the retailers have shown the positive responds toward the merchandising activity of Bingo distributor. 40 % retailers have given the neutral response towards the merchandising activity. These retailers could produce major sales and increase the brand visibility of Bingo if the merchandising would be improved in effective manner. Only 5 % of retailers are unsatisfied which can be effectively improved by taking care of their wants and demands in order to boost up the overall sale.
Q 5:- How fre quently do you place the order? Particulars Daily weekly Once in a two week Any others TOTAL Graph No-5 No. of retaile rs 0 54 14 4 72 Percentage (%) 0 75% 19.4% 5.6% 100
Particulars
60 50 40 30 20 10 0
Axis Title
Daily 0 0
weekly 54 75%
No. of retailers Percentage (%)
Once in a two week 14 19.40%
Any others 4 5.60%
Inte rpretation: Above graph shows that more than 70% of retailers place their order weekly, 20% of retailers order once in a week that represents that they could be overstock or not potential retailers and about to 6% of retailers place order on their choice of stock i.e. . On ready stock not on booking basis.
33
Q 6:- What is the contribution of ITC products to your total sales? Table No-6 Particulars Less than 5% Between 5-10% Between 10-20% More than 20% TOTAL No. of. retaile rs 12 32 23 5 72 Percentage (%) 16.67% 44.44% 31.94% 6.94% 100
Graph :- 6
7%
17%
Contribution in sales
Less than 5% Between 5-10% Between 10-20%
32%
44%
More than 20%
Inte rpretation: Among 72 retailers, 17% retailers said ITC products contribution to total sales is less than 5%. 44% stated between 5-10%, 32% sa id its between 10-20% and for 7% retailers it is more than 20%. Graph indicates that contribution of ITC products to more than 80% of retailers total Sales is between 5-20 %. This is the major contribution towards the market share of ITC brand.
34
Q 7. Choice of stocking depends on? Table No -7 Particulars Demand Margin Shelf space Schemes and offers Advertisement TOTAL No. of retaile rs 51 10 6 5 0 72 Percentage (%) 70.8% 14.2% 8.3% 8.7% 0 100
Graph No. :-7
Choice of stocking
No. of retailers 100 80 60 40 20 0
Demand
Margin
Shelf space
No. of retailers
Percentage (%)
51
70.80%
10
14.20%
6
8.30%
Schemes Advertise and ment offers 5 0 8.70% 0
TOTAL
64
100
Inte rpretation: Out of 72 retail outlets more than 70% retailers stocking decision depends upon consumer demand. 15%retailers stated margin, for 8% retailers shelf space is important because some retailers like stationary and bakery shops have much shelf space in order to display the snacks. 9% said schemes and offers factor is crucial and advertisement doesnt play any effective role while making the stocking decision. The above graph demonstrated that consumer demand is the first preference in making stocking decision but it also concludes that retailers margin and schemes and offers given by company as well as distributor for retailers and consumers also matters a lot.
35
Q 8. What kind of information is collected for inquiries? Table no -8 Particulars Existing Products Pricing Potential new products Validity dates Delivery schedule TOTAL Graph:- 8 No. of. Retailers 15 42 12 1 0 60 Percentage (%) 20.8% 58.3% 16.7% 1.2% 0 100
Particulars
No. of retailers 50 40 30 20 10 0
Existing Products
Pricing
No. of. Retailers
15 20.80%
42 58.30%
Potential new products 12
Validity dates
Delivery schedule
1 1.20%
0 0
Percentage (%)
16.70%
Inte rpretation: As the above graph states that almost 60 % retailers are conscious about price of snacks. Sometimes they collect the snacks from their local wholesalers comparatively at low prices which could be cause low profit generation. 20 % retailers said they have been querying for different existing products of ITC like flour, confectionery, candy, cigarettes, Biscuits and personal care. 16 % retailers asked about potentially new products or any new launch of products in food and personal care segment like Yumitos is the new launched chips in the snack segment and Superia is the new soap in personal care segment. Only 1 % of retailers said validity dates are important to them.
Q 9:- During The visit was the sales representative? Particulars Courteous Aggressive Rude No. of Retailers 61 11 0
36
Percentage (%) 84.7 15.3 0
Offhand TOTAL Graph No-9
0 72
0 100
sales represenatative behaviours

100
No of retailers 80 60 40 20
0 No. of Retailers
Percentage (%)
Courteous 61 84.7
Aggressive 11 15.3
Rude 0 0
Offhand 0 0
Inte rpretation: 85% of retailers stated during the visit sales person is courteous and 15% said they are aggressive. There is no any negative result found. Almost each retailers are well satisfied with the presentation and behavior of sales representative during visit.
Q 10:- How would you rate the sales representative explanatio n? Particulars Excellent Good Satisfactory Poor TOTAL No. of. Retailers 11 49 10 2 72 Percentage (%) 15.2% 68% 13.8% 3% 100
37
Graph No. -10
Poor 3%
No. of. Retailers

Excellent 15%
Satisfactory 14%
Good 68%
Inte rpretation: 15% of retailers stated sales representative explanation as excellent, 68 % rated good, for 14% retailers representative explanation during visit is satisfactory and 3% rated it as poor. Above graph indicates that 98% of retailers are satisfied with the sales representative explanation during salesman visit. Q 11:- Were you given the chance to put your point of vie ws during the visit? Table No: - 11 Particulars Yes No TOTAL No. of retaile rs 41 31 72 Percentage (%) 57% 43% 100
38
Graph No. 11
Responses
N0 . of retailers
60 40 20 0
Yes
No
No.of.Retailers 41
31
Percentage (%) 57%

43%
Inte rpretation: Above graph indicates that 43% of retailers are not satisfied with sales representative in respect to collecting feedback and giving opportunity to put their point of view during visit. This could generate information lake about the market. 57% of retailers viewed they have given enough opportunity to put their point of view during visit. Q 12:- How do you rate the delivery process of your ITC distributor? Table No- 12 Particulars Prompt delivery Just in Time Not in time TOTAL Graph No 12 No. of. Retailers 54 17 1 72 75 24 1 100 Percentage (%)
Particulars
80 60 40 20 0
No. of. Retailers Percentage (%) N0 0f retailers
Prompt delivery 54 75
Just in Time 17 23.5
Not in time 1 1.5
39
Inte rpretation: Among 72 retailers 75% of retailers rated delivery is on the time and prompt. 23% of retailers rated it as ok and 2% of retailers are not satisfied with the delivery process.
Q 13. Are you satisfied with the schemes and discounts offe red by the distributor? Table No. 13 Particulars Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied TOTAL Graph No. 13 No. of Retailers 3 39 22 8 0 72 Percentage (%) 5% 54 % 30% 11% 0 100
Chart Title
40
Axis Title 30 20 10
Percentage (%)
No. of Retailers
Highly satisfied 5%
3
Satisfied
54% 39
Neutral
30% 22
Dissatisfied
11% 8
Highly dissatisfied 0
0
Inte rpretation: The Above illustration depicts that out of 72 retailers less than 60% retailers are satisfied with the schemes and discounts offered by the distributor. 30 % of the retailers remains neutral in rating their satisfaction , about to 11% retailers are dissatisfied towards their distributor. It can be seen from the above that the satisfaction level is not very high in respect to schemes and discounts offered by the distributor. Since schemes and discounts play an
40
effective role in marketing as well as to boost up the sale so it should be properly taking care of. Q 14. What other benefits do you get from your other brands distributors? Table No. 14 Particulars Quality Schemes and discounts Credit order policy Merchandising Activity TOTAL Graph No: - 14 No. of Retailers 52 11 0 9 72 Percentage (%) 72 15 0 13 100
Particulars
80 70 60 50 40 30 20 10 0
Axis Title
Quality
No. of Retailers Percentage (%)
52
72
Schemes and discounts 11 15
Credit order policy 0 0
Merchandising Activity 9 13
Inte rpretation:- During the visit 72% retailers are intend to take the product of high quality from other brands distributor 15 % retailers tend to buy product with schemes and discounts offered b y the different brands. 13 % retailers who are vijeta stores mostly showed that they have been provided with better merchandising from the different brands like they have been given banners , holders ,display racks. Q 16. How do you rate your ITC bingo Distributor? Orde r processing time Ratings Very good No. of Retailers 14
41
Percentage (%) 19
Good Neutral Bad Worst TOTAL Graph No- 16

Bad 1% Neutral 10%
50 7 1 0 72
70 10 1 0 100
No. of Retailers
Worst 0%
Very good 20%
Good 69%
Inte rpretation: 69% of retailers rated order processing time taken by the distributor is good (short) and 20% of the retailers are highly satisfied. 10% said order processing time taken by distributor is neutral means they found no different advantage over other brands and 1% of the retailers are highly dissatisfied. From the graph it can conclude that 10% of retailers are unsatisfied with the order processing factor of distributor. Billing Promotional Activities Table No: - 17 Ratings Very good Good Neutral Bad Worst TOTAL No. of. Retailers 0 7 64 1 0 72 Percentage (%) 0% 9% 90% 1% 0% 100
42
Graph No:-17
1%
0%
No. of. Retailers

0%
10% Very good Good Neutral
89%
Bad Worst
Inte rpretation: - There is very less billing promotional activity performed by ITC distributor in order to promote sales of snacks. 90 % retailers has shown neutral response toward this. Likewise in other brands like lays and pringles, retailers are given some promotional bill discount on completing some specific target which motivates them to sell their brands utmost.
Safe Delivery Table No: - 18 Ratings Very good Good Neutral Bad Worst TOTAL Graph No: - 17 No. of. Retailers 12 43 16 1 0 72 Percentage (%) 17% 60% 22% 1% 0% 100
50 40 30 20 10 0 Percentage (%)
Very good 17% 12
Good 60% 43
Neutral 22% 16
Bad 1% 1
Worst 0% 0
No. of. Retailers
43
Inte rpretation: 17% and 60% of retailers rated safe delivery factor is very good and good respectively. Out of 72 retailers 22% showed very neutral response in safe delivery factor Overall there is a higher satisfaction towards safe delivery. Sales Persons Presentation Table No: - 18 Ratings Very good Good Neutral Bad Worst TOTAL Graph No- 18 No.of. retaile rs 5 53 14 0 0 72 Percentage (%) 7% 74% 19% 0% 0% 100
Ratings
60 50 40 30 20 10 0
Axis Title
Very good
Good
Neutral
Bad
Worst
Percentage (%)
No.of.Retailers
7%
5
74%
53
19%
14
0%
0
0%
0
Inte rpretation: Above graph indicates 74% of the retailers are said sales person presentation is good. 7% of retailers rated it as very good.only19% of retailers are not satisfied with sales person presentation during visit.
44
Replacement responsibility Table No: - 19 Rating Very good Good Neutral Bad worst TOTAL Graph No 19
worst 0% Bad 0% Neutral 24%
No. of retaile rs 5 50 17 0 0 72
Percentage (%) 7% 69% 24% 0% 0% 100
No. of retailers
Very good 7%
Good 69%
Inte rpretation: This is very important factor in sale and distribution. Retailers should be showing loyal and faithful response towards distributor so that their damage and destroyed products should be replaced before the time, The above pie chart shows more than 75% retailers are satisfied with the replacement responsibility of the Bingo distributor that is good enough in comparison to other brands. Availability of orde red stock Table no:-20 Ratings Very good Good Neutral Bad Worst TOTAL No of Retailers 11 38 22 1 0 72 Percentage (%) 16% 53% 30% 1% 0 100
45
Graph No:-20
40
53%
16% 11 Very good
20
0
38
30% 22 1% 1 Neutral Bad 0
Good
Worst
No of Retailers
Percentage (%)
Inte rpretation: - 53 % retailers stated that they are satisfied with the availability of ordered stock. 16 % rated it excellent while 33% showed very neutral response towards it and 11 % are not satisfied
46
4.5.7 Hypothesis Testings

For the intension of analyzing the gathered information few marketing hypotheses were the major issues in a successful conclusion of the research.
1. Issue: Contribution of ITC products to the total sales of retailers.

H0 : Contribution of ITC products to the total sales of more than 50% retailers is below 10%. H1 : Contribution of ITC products to the total sales of more than 50% retailers is more than 10% Using Z test can prove this Computation of Z value Z= P-P/ sigma P q = (1-P) =0.50 (N-1) =71
P=0.50 N=72
Where P= X/N = Respondents favoring Ho Total sample size P=44/72=0.61 Sigma P= P (1-P)/ (N-1) Z= (0.61-0.5)/.059 Z = 1.86 k0.05 =1.64 (table value of Z) Conclusion; Since the calculated Z value (1.86) is more than the critical value (k=1.64). So we can reject null hypothesis (Ho). Result Contribution of ITC products to the total sales of more than 50% retailers is more than 10% = 0.059
2. Issue: Availability of ordered stock
H0: More than 70% of retailers are satisfied with the availability of ordered stock. H1 : Less than 70% of retailers are satisfied with the availability of ordered stock
47
Using Z test can prove this Computation of Z value Z= P-P/ sigma P
P=0.70 N=72
(1-P) =0.30 (N-1) = 71
Where P= X/N = Respondents favoring Ho Total sample size P=39/72=0.54
Sigma P= P (1-P)/ (N-1)
= 0.054
Z= (.54-0.70) /0.00406 Z = - 2.96 K=1.64 (referring table value of Z)
Conclusion; Since critical value (K=1.64) is less than calculated Z value (- 2.96) so null hypothesis is rejected. Result Less than 70% of retailers are satisfied with the availability of orde red stock.
4.5. 8 FINDINGS: Research has been done to achieve the objective that is Retailers Satisfaction level and Expectations towards ITC distributor to identify the level of satisfact ion of retailers at South Delhi. Whole study only depends upon South Delhi retailers. According to the analysis and the interpretation of the data given in the previous chapter relevant findings and suggestions are recorded which are as follows. In South Delhi most of the retail stores are grocery stores. Only few percentage of stationary and medical stores sell ITC products to the ultimate consumer.
48
Most of the outlets are satisfied with the me rchandising activity. It has been found that most of the retailers place the orde r every week and once in 15 days .It shows that many of the retailers frequently place the order i.e. means the product are market viable. Among 72 retailers more than 50% retailers said contribution of ITC products to their total sales lies between the range 5- 20%.Only few retailers sales exceed 20%. There is no doubt that customer demand is first choice while making stocking decision and it is justified by study , more than 75% of retailers first choice is customer demand in making stocking decision. But still near about 25% of retailers stocking decision influenced by schemes and offers, margin and shelf space. Its totally a positive feedback towards the sales representative behavior during the visit. 85% of retailers rated during the visit sales representative is courteous and 15% of retailers rated they are aggressive. High percentage of retailers is satisfied with the sales representative explanation during visit. in collection of feedback and list out the queries of retailers Many of the retailers are not satisfied with the sales representative When retailers were asked, how you rate delivery process of distributor, all the retailers surveyed were respond they are satisfied with the timely supply of products from their ITC Distributor. Very less percentage of retailers are satisfied with the schemes and discounts offered by the distributor. When retailers were asked how you rate ITC distributor in terms of order processing time taken, among 72 retailers 14 replied very good and 50 as good.7 and 1 retailer replied not good and bad respectively. Most of the retailers are not satisfied with the billing promotional activity of ITC distributor, there is no discounts given on high billing of products even though there is no case specific or target based discounts given to retailers. 70% retailers rated safe delivery factor as good. Retailers are satisfied with safe delivery factor Among 72 retailers 90% retailers are happy with the sales person presentation.
49
Only few retailers are satisfied with the availability of ordered stock . Most of the retailers stated that they were not supplied the demanded product in most of the cases that is demand supply mismatch .so it is rated as not good. Most of the retailers are expecting schemes and offers for retailers and they are dissatisfied with their margin. For a great margin they sometimes purchase the product from the local wholesalers which might cause to generate sales loss.
50
RECOMMENDATIONS: -
Suggestions to ITC Distributor through this report

Based on the analysis and findings of the study I would like to suggest few points. Retailers viewed that display of the products has influenced their sa le 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. 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. 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 facto rs 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. Distributor should maintain stock of all ITC products. General discount and incentive of company should be passed on to the retailer by the distributors and distributor should periodically review the performance of their retailer.
51
CONCLUSION
To conclude, it is very much limited time to clearly understand the re tailer satisfaction. Apart from this we need to consider on each retailers view carefully in regular time intervals (periodically) so to the best possible is presented here. Still there is much scope for developing on this subject, as excellence is never limited.
Thus in brief, we can conclude that managing and measuring retailer satisfaction can bring about positive benefits to company, distributor, and sales people as well as customers. Retailer satisfaction boosts more sales and loyal customer to distributor and in turn helps to produce more satisfied ultimate customers to the company. Thus the retailers satisfaction signifies the stretches from introducing good margin, more and more promotional activities and better services from distributor.
52
Learnings from SIP

The summer internship period at ITC has laid my foundation stone for my further years in the marketing industry. The twelve week extensive experience of Sales and Distribution along with other aspects of marketing has bridged the gap between my theoretical knowledge and its applications in the real world. As a management student, apart from the experience and learning in marketing, I have been capable to understand the ethical corporate functioning and the responsibility of an organization towards the society. During my short stint, I have also been able to come in touch with legendry marketers at ITC, who have had an memorable impression on my personality. My major learnings have been regarding: 1. The organizational setup and functioning of corporate. 2. The dynamics of market and the response of companies to it. 3. The role and responsibility of an employee towards the company and the society. 4. The need for ethical business. 5. The need for a sustainable business model. 6. The need for company to be resilient against change and chaos. 7. The basics & intricacies of businesses, apart from their core value and functions.
53
Screen shots of various softwares used at ITC Ltd
FORUM main page
54
FORUM Exchange document to sales
FORUM Autoreport
55
References 9.1 Internet References (websites) 1. ITC PORTAL WEBSITE www.itcportal.com 2. ITC E-CHOUPAL WEBSITE www.echoupal.com 4. FRITO LAYS WEBSITE www.pepsico.com 5. FRITO LAYS BLOG http//:www.fritolayindia.blogspot.com 6. BINGO WEBSITE www.bingeonbingo.com
9.2 Inte rnet References (articles) 1. ITC LAUNCHES BINGO www.itcportal.com/newsroom/press_releases_14mar07.htm 2. BINGO - ITC HAS FINALLY GOT IT !! www.rediff.com/money/2007/may/01bspec.htm 3. FRITO LOSES MARKET SHARE TO BINGO www.moneycontrol.com/india/news/business/frito-lay-loses-snack-mkt-share-toitcs-bingo/20/35/300325
Books References 1. Strategic Brand Management , Kevin Lane Keller , Pearson. 2. Sales and Distribution Management , Havaldar and Cavale , Mc Graw Hill. 3. Consumer Behavior , Schiffman and Kanuk , Pearson. 4. Marketing Research , Nargundkar , Mc Graw Hill. 9.4 Classified References 1. ITC Intranet 2. Forum ERP Implementation Tool at WD points. 3. SIFY 4. SAP Implementation Tool at Area Sales Manager Kiosks 5. WD record books (manual entry) and electronic media 6. Retailer Bill books and cash files
56
Appendix 10.1 Annexure 1 General information retailers questionnaire Survey This survey is being conducted in order to find out the Retailers Satisfaction and Expectation towards ITC distributor also to find out the competitive sell of different snacks. 1) Your Name
2) Age
3) Area of visit
4) What type of store? Grocery store Medical Store Stationary Others 5) Which brands do you keep? Lays Bingo Bala Ji Parles wafers Yellow diamond crax Uncle chips Others 6) Which brand do you sell the most? Lays Bingo Bala Ji Parles wafers
57
Yellow diamond crax Uncle chips Others 7) How would you rate the merchandising activity of ITC distributor? Excellent Good Fair Bad 8) How frequently do you place the order? Daily Weekly Once in a 2 weeks Monthly 9) What is the contribution of ITC product to your total sales? Less than 5% 5%-10 % 10%-20% More than 20% 10) Choice of stocking depends on? Demand Margin Shelf space Schemes Advertisements 11) What kind of information is collected for enquiries Existing products Pricing Potential new products Validity dates Qty Delivery schedule 12) During the visit was the sales representative? Aggressive Courteous Rude Off hand
58
13) How would you rate the sales representative explanation? Very good Good Satisfactory Poor 14) Were you given the chance to put your point of view during the visit? Yes No 15) How do you rate the delivery process of ITC distributor? Prompt deliver Just in time Not in time 16) Are you satisfied with the schemes and discounts offered by the distributors? Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied 17) What other benefits do you get from other brands? Quality Schemes and discounts Credit order policy Merchandising activity 18) How do you rate the ITC distributor? Very good Good Neutral Bad Order time Processing Billing promotional activities Safe delivery Sale Persons presentation Replacement responsibility Availability of
59
poor
ordered stock 19) Do you expect any additional services from your distributor? If yes, State the additional services.
20) Any suggestions
10.2 Annexure II Schemes offered by ITC distributor to retailers on Bingo snacks.
60
61

Final Project Report - Abhishek Pathak - ITC

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Final Project Report - Abhishek Pathak - ITC

Uploaded by

Copyright:

Available Formats

A REPORT ON

IN ITC Corp. Ltd.

BY Abhishek Pathak 12BSPHH010033

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

Abhishek Pathak (12BSPHH010033)

ITC Corp. Ltd., Gurgaon Date of Submission 24 May, 2013

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

Yours faithfully Abhishek Pathak

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

INTRODUCTION 1.1 Industry Analysis

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

Indias Share in world trade in respect of processed food is about 1.6%.

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

1.1.3 Indian Snacks Industry

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

1.1.4 Constraints & Drivers of Growth

Inefficient supply chain and more involvement of middlemen

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

1.1.5 SWOT Analysis of Indian Snacks Industry

Strengths Abundant availability of raw material. over the country.

Threats fresh food.

facilities. methods as per international standards. number of intermediaries. ing capital.

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

2.2 Growth and Diversification

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

Major brands segments of ITC are as follows

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

2.4 ITC- Distribution Network

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

Consumer Purchase (Off take)

Distributor 5% Retailer 7-15%

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

Wholesaler 1-1.5% Super-stockiest 2% Sub-stockiest 5%

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

3. Objectives of the study

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

4. Project specific analysis

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

4.3 Hybrid Distribution Model

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

4.5 Questionnaire analysis 4.5.1 Sample design

4.5.2 Sample area SOUTH DELHI

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

Stationary store Others

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

Yellow diamond crax 2.77%

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

SIP 2013/ITC Corp. Ltd. /Abhishek Pathak

No. of retailers Percentage (%)

Once in a two week 14 19.40%

Any others 4 5.60%