itc
DESCRIPTION
Project: To assess the market potential of ITC's OFMCG products in convenience channel Objectives • Assess the market potential of ITC’s OFMCG product. • To know it’s positioning in the mind of the customers, and • Recommendation on how to tap ITC’s OFMCG market. Recommendation Identified that 4p's of Marketing Mix is not valid in Indian context. e.g. Sunfeast, Britannia Tiger and Parle provides the same product at the same place and at the same price. So it does not provide an edge over others. So, I identified 4 factors which were important for improving relation between retailers and manufacturers and provided recommendation in accordance. 1 Managerial efficiency of Supply Chain- Tried to find out the bottlenecks (Delivery van) and incentivize them and prepared a routine for salesman for the item to be taken alongwith them so that Demand pattern becomes probabilistic and constant/ variable with time. Also suggested to use semi stockist for far off areas. Suggested them for keeping buffer stocks in distribution point 2. Merchandizing- Instead of providing incentive to the shops where ITC has a display (it is not working in favour of the company), it can go for third party merchandizing or cross merchandizing. 3. Promotion- Convenience stores can be classified into A) Grocery stores B) Cold Drink Store C) Non Cold Drink Store. We can organize competition between stores based on this classification on the basis of pushing sales (Earlier company employed competition on the basis of amount of goods retailers have purchased). Salesman in convenience channel work on the basis of commission and deals in kutchha bill do not inform shops of any prevalent schemes. 4. PriceTRANSCRIPT
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.
