final presentation _ itc ltd in sales and distribution

7/27/2019 Final Presentation _ ITC Ltd in sales and distribution

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3

Wholesale Distributor

AE

Supervisor

Supply Chain

Salesman

Salesman

ChannelsGrocery , Bakery ,

Chemist ,Fancy Stores ,Consumption Centre

Convenience , Hawker,,HORECA , Wholesale

AE

ITC - WD link Leads Supervisor & DS

Team

Supervisor

WD - DS link Stock , Route , Sales

Planning , DS Training& Development

Salesman

WD - Channel link

Sales , Merchandising

Understanding the Sales And Distribution Chain

(PHASE -1)


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4

Wholesale Distributor

AE

Supervisor

Supply Chain

Salesman

Salesman

ChannelsGrocery , Bakery ,

Chemist ,Fancy Stores ,Consumption Centre

Convenience , Hawker,HORECA , Wholesale

Planning &Preparation

Stock Check &Presentation

Sales and

Billing

Merchandising

Sales Call Close

Planning &Preparation

Load Adequate Stock , Merchandising MaterialCarry Pending Bill , Rack Cleaning Material , Bill Book

Stock Check &Presentation

Check Stock On Hand , Expiry Stock , DNDInform Previous week sales , Suggest Purchase Quantity

Sales andBilling

Confirm Order , Cut the BillDeliver Order

Merchandising

Clean Rack , Rotate new stock on rack , Hang LadisExchange DND .

SalesDeliverables

Coverage

SalesValue/Volume

Productivity

Bill Cuts

Line Cuts

Quality ofService

Sales CallProcess

Processes in the chain


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Loading Sale Negotiate MerchandisingDND

Collection

Stock at WD

Stockwith DS

DeliveredStock at handSupplies

Reserve StockCash at hand

Stock at WD

pointRoute DemandCarryingCapacity

Inefficiencies in Loading


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Collection

SKUsAvailable

SKUsDemanded

RetailersPush

SalesmansPush

Demand Supply

Prefers highselling SKUsPrefers morecredit & varietyInduces SalesCannibalization

DS pushesavailable stockMaximize salevalue , bill cuts,lines cutRetailerscapacity to pay

Dynamics involved in a Sales negotiation


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Collection

Stock CheckHanging LadisArranging on rackNew Stock Rotationon rack

Expired stock

Air out PacketsUnsold / Obscured packets instoresLost visibility

Inefficiencies in Merchandising


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E A R L I E R AV G . B I L L C U T

1 7 B I L L S / R O U T E

B I L L C U T S I N M O D E L

2 4 B I L L S / R O U T E

A V G D A I L Y O U T L E T S C O V E R E D

2 2 / R O U T E

A V G D A I L Y O U T L E T S C O V E R E D

3 8 / R O U T E ,

9

DAY 1

ORDERBOOKIN

G

HAUZRANI

KHIDKIEXTENSI

ONDAY 2

DELIVERY

HAUZRANIKHIDKI

EXTENSION

DAY 3

ORDERBOOKING

SAKETSEKHSARAI

DAY 4

DELIVERYSAKET

SEKHSARAI

DAY 5ORDER

BOOKING

MALVIYA NAGAR

HAUZKHAS

DAY 6

DELIVERYMALVIY

A NAGARHAUZKH

AS

HYBRID MODEL WEEKLYPLAN

HIGHLIGHTS

Two routes clubbed together in one dayAlternate day cycle of Order Day (OD) andSupply Day(SD)Visibility of DS is just doubled per routeNo of outlets covered increased in one day.14 day average : Inc Sales , inc bill cut

Hybrid distribution model SHAKUJA SONS


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Retailers expectation and satisfaction level ( phase -2)

Sampling Method

field work

900 + retailer stores covered

72 respondents

Data collection

Primary data: -

Questionnaire.

Observation and Interview technique.

Secondary data: -

Information is collected through company websites, various Bingo advertisement and

marketing websites.

From various text books.

Journals and magazines.


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Merchandising activity of ITC distributors

In comparison to other brands merchandising activity of ITC distributor is good

enough

12

0

5

10

15

20

25

30

35

Excellent Good Fair Poor Very poor

No. of retailers 4 35 29 4 0

Percentage (%) 5% 49% 41% 5% 0%

Noofstores

Merchandising activity


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Contribution of ITC products to the total sales

Choice of stocking depends on?

1317%

44%

32%

7%Contribution in sales

Less than 5%Between 5-10%

Between 10-20%

More than 20%

0

10

20

30

40

50

60

70

80

90

100

Demand Margin Shelf space Schemes andoffers

Advertisement

TOTAL

No. of retailers 51 10 6 5 0 64

Percentage (%) 70.80% 14.20% 8.30% 8.70% 0 100

No.ofretailers

Choice of stocking


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Retailers satisfaction with schemes and discounts offered by distributors

14

0

5

1015

20

25

30

35

40

Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

Percentage (%) 5% 54% 30% 11% 0

No. of Retailers 3 39 22 8 0

No

ofstores

Satisfaction rating


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Hypothesis testing

151. 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% UsingZ testcan prove this

Computation ofZ value

Z= P-P/ sigma P

P=0.50 q = (1-P) =0.50

N=72 (N-1) =71

Where P= X/N = Respondents favoring HoTotal sample size P=44/72=0.61

Sigma P= P (1-P)/ (N-1) = 0.059 k0.05 = 1.64 Z= (0.61-0.5)/.059 Acceptance region

Z = 1.86

k0.05=1.64 (table value of Z) Rejection


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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

UsingZ testcan prove this

Computation ofZ value

Z= P-P/ sigma P

P=0.70 (1-P) =0.30

N=72 (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)


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Findings of the project

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Dissatisfaction with the schemes and discounts

in collection of feedback and list out the queries of retailers Many of the retailers arenot satisfied with the sales representative

Most of the retailers are expecting schemes and offers for retailers and they aredissatisfied with their margin. For a great margin they sometimes purchase theproduct from the local wholesalers which might cause to generate sales loss.

Most of the outlets are satisfied with the merchandising activity.

It has been found that most of the retailers place the order every week and once in15 days .It shows that many of the retailers frequently place the order i.e. means theproducts are market viable.


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Recommendation18

Retailers viewed that display of the products has influenced their sale and many people insome areas recognize the product not by its name but by its external appearance. As it issuggested that merchandising activity should be extended to all General retailers.

Modernization and standardization of retailers network must be carried out in order toexchange 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 factors like margin, schemes,discounts and offers. It attracts bulk orders to distributor. Distributor must be taking careof satisfaction of retailers in respect to above given factors.

Distributor should maintain stock of all ITC products. General discount and incentive from the company.

periodically review the performance of their retailer.


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final presentation _ itc ltd in sales and distribution

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