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ITC SUNFEAST

BISCUITS
SALES AND DISTRIBUTION
Discussion Outline
Discussion Outline
Introduction to ITC
 One of the worlds most reputable company

 Market capitalization of nearly US $ 18 billion

 Turnover of over US $ 5.1 Billion

 Post tax profit of US $750 Million

 Diversified product portfolio

 Direct group employment of 29000


Introduction to Sunfeast

 Launched in July, 2003

 Growth rate of 53%

 Turnover of over 1000 crore

 Wide categorization
PRODUCTS COMPETITORS

GLUCOSE PARLE, BRITANNIA AND HORLICKS

MARIE BRITANNIA AND BISK FARM

BUTTERBITE AND CREAM PRIYA GOLD, ANMOL, BRITANNIA AND


PARLE
Products at a Glance
Discussion Outline
Organizational Structure
Recruitment at ITC

 Entry level
 Premier management institutes
 Middle level
 Integrity
 A "will do" attitude
 High energy
 Creativity
 Leadership
 Team skills
 Ability to think strategically
Discussion Outline
Diagram

FMCG

FOOD OTHER
AND FMCG
BEVERAGES PRODUCTS
Distribution of Food Products
 Strict compliance standards, low profit
margins, intense competition, high customer-
service expectations.

 Fast and effective sales ordering processes.

 Flexibility

 Quick reaction
Important Factors

CREDIT SYSTEMS MARGINS

PROMOTIONS FOOD STOCK OUTS

DISTRIBUTION CHANNELS WASTAGES


Discussion Outline
Distribution Channel
Flow Diagram
CNF

FACTOR
Y

WHOLESALE
DEALER
BASE

WHOLESALE RETAILER
DISTRIBUTO
R
Distribution System

 ITC uses FIFO method to reduce the wastage of


goods due to expiry.

 They also keep the good on constant move from


low sales area to high sales area.

 The company collects all the expired goods four


times a year, and destroys them.

 Retailers must return expired or damaged


products within six months after the date of
expire.
Distribution System

 Adjustment for them is done in three months


time.

 ITC provides their retailers with racks, hangers,


etc to display the products.

 The benefits received by the retailers depend


upon their sales volume and also the location of
their shops.

 ITC has hired IMRB to do the market research.


Discussion Outline
Observations

 Food products are normally a high volume ball


game.

 Products have to essentially be available in the


market at all given points of time and at all given
points of purchase.

 The supply of products takes place virtually on a


daily basis in fixed quotas or otherwise, to
retailers as per their requisitions and the
anticipation of demand and the performance of
products in the recent past.
Observations

 The skeleton of distribution system is same for all


the companies.

 Companies try very hard to make a difference at


some point to get the competitive advantage.

 ITC has a very strong distribution network for


their cigarette brands and they are using this
network to push their new biscuit brands.

 Credit system also depends upon the position of


the product in the market.
Observations
 Companies with top product are hard to bargain
on credits.

 Companies also use their premium products to


push their non premium products.
Discussion Outline
ITC SUNFEAST
BISCUITS
Presented by:
Padalia Nandan Dipak Patel

Shawinder Paul Singh