group _6 itc sales and distribution

8/12/2019 Group _6 ITC Sales and Distribution

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ITCSALES AND DISTRIBUTION CHANNEL


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Process

Manufacturing

UnitMother

Warehouse

Local

WarehouseDistributor

Sub

distributor/

Retailer

Plantation

Manufacturing & Distribution Process:


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National Sales Manager

Regional Sales Manager

Branch Manager

Asst. Branch Manager

Area Manager

Area Executive

Salesman

Indirect Sales

Direct Sales


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Indirect Sales

Area Sales Executive: Mr. Aniket Upadhyay

Link between the Distributor and ITC

Monitors the targets of the salesmen and forecasts

future demands


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The initial investment of the distributors is around Rs

5cr for buying stocks and other requirement

The major investment is in current and fixed asset.

There are 500 salesmen, 25 distributor points & no

specific number of wholesalers within Mumbai.

Direct Sales


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STAR DISTRIBUTOR

Star distributor covers the Mahim to Byculla area.

He divides the area and assigns it to the salesman.


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Distributor Point

At every distributor point there are:

2 operators in back office , 1distributor manager, 2

loaders , 1 godown keeper, 35 CDMs and cycles and

godown area is1000 sq.ft space

The CDM , cycles and office here were on rent.


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Every salesman is responsible for selling Cigarettes,Confectionaries which includes personal care, packaged

food, agarbattis and matchsticks. (excluding stationery)

Every salesman gets a CDM ,i.e., Convenience DeliveryModel: Convenience outlets.

Stock is given once every week, i.e., 4 times a month

A deposit of Rs. 20,000 is kept with the distributor per

salesman.


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Distributor Landing Price

The distributors margin is 1.55%

*Varies with respect to the areas


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Salesman

From the distributor point, the salesman loads his

aluminium box at 9:00 am, which he carries on hiscycle.


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Salesman

The area & outlets which the salesman has to cover is fixed.

(Here, Sitaram Gupta covers Mahim station area)

He covers approximately 32-35 outlets in a day.

His day starts at 9:00 am in the morning and he finishes at 4:00 pm in

the evening.


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Retailer: Kishanchand


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Retailer

The salesman takes the order from the retailer.

The order is served immediately.

The retailer has a 10-12% margin.

Once the order is served the retailer pays for the

order immediately or on credit.

The Salesman keeps a receipt of the order served for

his records and gives a copy to the retailer.


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Daily the sales person sells stock worth rupees 2500-3000 per outlet. and on weekends i.e. Saturdays

salesmen sells goods worth 4000- 5000 rupees.

(Figures vary from every pan bidi store) (Therefore,

daily= Rs.80,000 approx) The salesperson receives a margin of 0.8%.

The highest selling brands in the Mahim area are

Goldflake lite and Classic mild.

In case a new retail outlet is opened, the salesman has

to report to the supervisor or area sales executive so

that a salesman is assigned that particular outlet.


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Post Sales

The salesman reports to the distributor at 4:00 pmand gives him the sales proceeds of every outlets he

covers daily.


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Emergency...

If in case the stocks are damaged or spoiled duringtransit due to unforeseen circumstances then the

salesperson has to bear the cost.


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Retailers Promotion Strategy

They are categorized into 3 types:-

In Shop: They are categorized into 3 types:-

1) Poster

2) PSU

3) Planograming


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On Shop:

On shop Advertising is

Banned by COTPA Act 1993

Pack Insert


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Interview with wholesaler

Aakash tobacco (Kandivali-

East ) 1 wholesaler in a vicinity.

Margin0.05%.

Takes the whole stock

directly from distributors.


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Orders 7-8 times a month.

Sells to small retailers, direct customer on packet basis,cyclewala etc.

Monthly sale 2.53 lakhs.

Sells other brands also.

Works on credit basis.


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CONCLUSION

group _6 itc sales and distribution

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