itc

Faculty Mentor- Dr. Ashutosh Mohan (Assistant Professor)

Company Mentor- Mr. Satya Prasad (Area Manager)

Presented by- Sandeep Kumar Samanta

Flow of PresentationIndustry Analysis

Distribution model & schemes

SWOT Analysis

Research Methodology

Data Analysis

Findings & Conclusion

Recommendation

Learning

FMCG Industry Characteristics

They are used at least once a month They are used directly by the end-consumer They are non-durable They are sold in packaged form They are branded

FMCG Industry Characteristics Industry Segments

FMCG Industry Characteristics Industry Segments Industry Size- 35-42 $ bn (Source:CII) Spending Pattern

FMCG Industry Characteristics Industry Segments Industry Size- 35-42 $ bn (Source:CII) Spending Pattern Market Share

Porter’s 5 force Model

Company Profile History

Company Profile History

Company Profile History FMCG Business

Company Profile History FMCG Business

Performance

Company Profile History FMCG Business

Performance

Market Share

Company Profile History FMCG Business

Performance

Market Share

SWOT Analysis

Organizational Structure (Kolkata Marketing Branch)

Distribution Channel

Distribution Channel of Competitors

Distribution Channel of Competitors

Schemes of Competitors

Snacks

Schemes of Competitors

Snacks Matches

Schemes of Competitors

Snacks MatchesNoodles

Schemes of Competitors

Snacks MatchesNoodles Confectionery

Schemes of Competitors

Snacks MatchesNoodles Confectionery Biscuits

Research Methodology

Objective:

To assess the market position of ITC’s OFMCG product.To determine the factors that shopkeepers look for while dealing with manufacturers.To suggest measures to enhance ITC’s OFMCG market.

Research Methodology

Objective:Research Design:

Exploratory research was conducted to find out the variables retailers usually consider to choose a FMCG company to do business with. Descriptive research was conducted to collect data to know the market position

Research Methodology

Objective:Research Design:Sampling:

Sampling Technique- Stratified Random Sampling Sampling Unit- Howrah Sample size- 218 outlets in convenience channels

Research Methodology

Objective:Research Design:Sampling: Data Collection techniques and analysis tools

Data collection techniques- Observation Method Interview Method Questionnaire Method

Data Analysis Tools Factor Analysis Charts

Data Analysis

Factor Analysis

Variables consideredAvailability Price CompetitiveSchemesDisplay OfferedCustomer RelationshipBrand NamePrice DiscriminationReturn of damaged goodsCredit periodSustainability

Data Analysis

  Factor Analysis

Data Analysis

Rotated Component Matrix

Factor Analysis

Factors

Factors Variables Eigen Value

Managerial Efficiency of supply chain

Availability 2.531 (25.306%)

Customer Relationship

Sustainability

Price Price Competitiveness 1.865 (18.646%)

Price Discrimination

Merchandizing Display offered 1.455 (14.546%)

Promotion Schemes 1.185 (11.846%)

Return of damaged goods

Portfolio Analysis Biscuits

Portfolio Analysis Biscuits

Snacks

Portfolio Analysis Biscuits

Snacks

Soaps

Area wise Analysis

Area wise Analysis

Findings

Factors responsible for sale of products

Market Share

Sales Mix

Contd.

Market wise• On the day of delivery of goods by CDM, very few markets are covered.• Markets like G T Road, Dharsa, Bankra, Howrah Court, and Pilkhana have very good

demand of ITC products.• Entry of vehicles in Bankra and Benaras road 2 is not allowed till 12:00. Hence

delivery to these markets starts after 12:00 clock, but shops get closed by 12:30-01:00 clock.

• Delivery of items by CDM starts at around 11:00 clock in kadamtala, kamardanga, Dasnagar, Ramrajatola,

• Markets like Dobson Road and Belilious Road suffer from problems related to credit. Shopkeepers take down the product on credit and delay payment for long time.

• Markets like Pilkhana and Dobson road also have problem related to theft of items from the delivery van.

• Howrah station does not have any sale of ITC biscuits. • 16 of the 24 routes are covered by the CDM vehicles in a week.

Contd.

Product wise• ITC’s cream biscuit and cookies have large market share in Howrah. Sunfeast

Cashew and Butter, and Orange and Chocolate cream have very high demand among the cookies and cream biscuit segments.

• ITC’s matches suffer from problems related to quality as well as pricing. Shopkeepers say that ITC’s matches do not burn properly as well as quite expensive when compared to other brands present in the market.

• Chips and bridges have good market and shopkeepers are willing to sell it, but problem related to packaging of the product

• Shampoos have a very low market share.

Recommendation

1. Measurement of Performance

Managerial Efficiency of Supply chain

Corporate HeadquarterBalance SheetProfit & Loss AccountCash Flow

Distribution PointThroughput Inventory Expense

Recommendation

1. Measurement of Performance

Managerial Efficiency of Supply chain

2. Available to promise

Phenomena that are responsible for inefficient distribution Statistical Fluctuation- Demand pattern becomes probabilistic and constant/ variable with time Bottlenecks/ Dependent events.

Contd..

Statistical Fluctuation

Bottleneck

Leads to Probabilistic Supply which is constant/ variable with time

Contd..

Contd..

Contd..

3. Introduce Semi Stockist just like HUL’s initiative of project Shakti.

4. Basic principle of distribution should revolve around the fact that inventory is a liability.

5. Buffer Stock

6. Incentive linked pay for van wallas

7. Increase the van from 3 to 4

Contd.

The system of providing incentive to the shops where ITC has a display is not working in favour of the company. ITC can also look for third party merchandizing.

Merchandizing

Contd.

The system of providing incentive to the shops where ITC has a display is not working in favour of the company. ITC can also look for third party merchandizing.ITC can look out for cross merchandizing.

Merchandizing

Cold Drink

Snacks

PepsiCo

Snacks

Cold Drinks

ITCCoca Cola

Contd..

• Classify and organize competition between stores   

Promotion

Grocery Stores Cold Drink Stores Non Cold Drink Stores

Contd..

• Classify and organize competition between stores• Increase advertisement in TV. Promote new products during IPL. 

Promotion

Contd..

• Classify and organize competition between stores• Increase advertisement in TV. Promote new products during IPL.• Advertisement should be with some purpose

Promotion

Lux, Dove

Miss Universe,

Miss World

Dettol, Lifebuoy

Killing Germs

Vivels

Delicate Skin

(TFM- 73%)

Contd..

• G4 salesman works on the basis of commission and they do not have any pucca bills.

• They do not inform shops about any prevalent schemes.

Price

Learning

• First hand interaction with a company.• My view about Marketing.• Learnt New marketing terms.• Got to know how customers are dealt with or are approached to.