A project on the study of sales

& distribution of Sunfeast

(ITC)

10/27/15

Group:04
Alok Kr.
Amrita
Kumari
Balram Kr.
Deepti
Manisha
Mayur
Khandelia
Priya Kumari
1
Raushan Kr.

About ITC Ltd.

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About ITC Ltd. (Contd.)

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About ITC Ltd. (Contd.)

Diversified Product
Categories:

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1. To make in depth study of recruitment process

of sales personnel; their training and
development; compensation, evaluation &
control by the company

Objectives of the
study

2. Develop proper insight about distribution

management involving channel member
selection; effective working; monitoring and
control of logistics and channel strategy
3. To compare the service of competitors with
that of ITC
4. To identify the problem in sales effort, sales
administration and sales and distribution
management strategy developed of the
company
5. Suggest the proper solution for the

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Approach for study

Methodology followed:1. Secondary Data ( Research Papers and companies
websites)
literature review of existing research papers on different
aspects sales and distribution
Finding the factors which improve the sales efficiency if sales
force
Identifying the ways for designing effective distribution
channel
2. Primary Data(Interview of companys sales official and
retail survey)
Methodology followed:a. Structured Interview of companys sales officials
b. Survey of retailers
Research tool
Questionnaire
Onsite observation
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Sampling method: Convenient sampling

Literature Review
Specific training of sales people enhances their
performance and produces customer-oriented
selling
In different circumstances firms might choose an
appropriate distribution flexibility strategy which fits
with their distribution environment
Incentives motivates sales people to perform more
effectively
Many companies today are trying to identify
innovative compensation strategies that are directly
linked to improving organizational performance
Evaluating the performance of sales territories
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SWOT Analysis

Strength

Weakness

Strong brand recognition and product

portfolio
Experienced Management
Diversified Product Portfolio
Established Research & Development
Global market reach
Well established distribution network

Dependence on tobacco revenues

Negative Connection of Tobacco
Low export levels
Brand Proliferation

Opportunity

Threat

Low per capita consumption of personal

care products
Untapped rural Market
Collaboration with foreign players
e-retailing

Competition both Domestic &

International
Ban on smoking
Competition from unbranded products
High competition from established
companies

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INTERVIEW
OUTCOME
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Presence of ITC Ltd..

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EDO Branches

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Sales Hierarchy of ITC

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Recruitment

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Recruitment (Contd.)
Level
1

CV Short listing
Group Discussions /
Business Plan Competition
Interview round 1st Round

Level
5

Written Test - 3 sections.

Total of 55 questions.
Numerical - 15, Analytical 20, Verbal - 20 questions.
Interview round 2

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Training and Development

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Training and
Development (Contd.)
Induction
Training:

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Training and Development (Contd.)

On Job
Training:

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Training and Development (Contd.)

Interna
l
Trainin
g:

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Training and Development (Contd.)

Competency
Training:

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Compensation
(Contd.)

Position

CTC (in Lakhs

annually)

Variable

Branch Manager

18 - 20

20% of CTC

Assistant
Manager
Area Manager

12 - 14

20% of CTC

8 - 8.5

20% 0f CTC

Area Executive

5.5 - 6.5

20% of CTC

Sales Trainee

2.5 - 2.6

20% of CTC

Variable salary is decided on the basis of

performance and target met by sales
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personnel

20

Performance evaluation
of sales personnel

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Performance evaluation
of sales personnel
STAR WARS:

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Wholesale Distributor
(WD)

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WD employees: Recruitment
and Compensation
Recruitment:
The salespersons of distributors are
appointed by the distributor himself in
consultation with ITC officials

Compensation:
Their fixed salary is paid by the distributor
but is reimbursed by the company
The variable salary of salesmen is decided
on his meeting of sales target
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WD employees: Recruitment
and Compensation
Salesmen Evaluation and Compensation

The compensation received by

salesmen depends upon the target
achieved by them
Targets under consideration:
1. Monthly sales target
2. Product wise sales target
3. Category wise
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WD employees: Recruitment and

Compensation
Control mechanism:
The performance and work of WD employees is
evaluated by companys officials weekly
Their daily sales order is monitored by Area
Executive
The salesmen is given a geographical territory
which doesnt consider sales potential
Salesmen has to cover 30 outlets each day
They are given a beat plan for each day
If a WD employee is not performing then the
company can sack him
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WD employees: Recruitment and

Compensation
Role of Salesmen:

Prospecting- Searching for new outlets

Targeting- Visiting potential outlets
Communicating- Informing about products and offers
An order taker- As per requirement in retail and
convenience outlet
Selling to retailers and convenience outlet
Servicing- Removal of
damaged/expired(DND)products
Information gathering- About needs/ preferences of
customers
Allocating- Fixed time to each outlets
Cash collection

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Distribution Channel
CNF

FACTOR
Y

WHOLESALE

DEALER
BASE

WHOLESAL
E
DISTRIBUT
OR
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RETAILE
R

29

Channel Type
3-level Distribution
Channel:

2 -level Distribution
Channel:
Wholesal
Compan
y

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Wholesal
e
Distribut
or

Retailer
s

Consum
er

30

Distribution Type

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Physical Distribution/Logistic

Central
Warehous
e

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Effective Working of Channel Members

Business Area wise
Evaluation

Percentage

1. Convenience

25

2.

Grocery 1/3

25

3.

Grocery 2

25

4.

WD system & Processes

25

Performance is measured on following broad

parameters:
1.) Distribution Health (Outlet coverage, availability,
visibility levels, etc)

2.) Business Health (Sales Performance benchmarked to

relevant Circle)

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Effective Working of Channel

Members (Contd.)
Score card for Measurement of WD
Performance:

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Bands

Score

Platinum

> 95%

Gold

85-95%

Silver

80-85%

Bronze Star

75-80%

Bronze

60-65%

Non Performing

< 60%

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Effective Working of Channel

Members (Contd.)
Actionable basis for WD
evaluation:
Essentials Check

Bands

Follow up action

Not Qualified

Non Performing

Replace with NSA

Not Qualified

Bronze

On Notice

Not Qualified

Bronze Star/ Silver

On Notice
BM to revert with
follow up plan

Qualified

Non Performing

On Notice

Qualified

Bronze

On Notice
Time bound action
plan

Qualified

Bronze Star/ Silver

Encouragement for
further improvement

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RETAIL
SURVEY
OUTCOME
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Companies rated best in service

by retailers
45%

43%

40%
35%
30%
25%
18%

20%

14%

15%
7%

10%

5%

7%

6%

5%
0%

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HUL

P&G Britannia ITC

Pepsico Parle

Nestle
37

Retailers reson for purchase from stockists

Easy access
Attractive schemes
35%
65%

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Salesperson conveying about

the products, rates and
schemes correctly

Yes

No

22%
78%

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Problems in Sales and

Distribution system at ITC
Lack of proper training to distributors salesmen
Territory allotted to salesmen doesnt consider the
sales potential of the areas
Salesmen hides offers from retailers in ready stock
sale model
Problem of product recall by salesmen
Salesmen focuses more on large outlets which
purchase in large volume
Billing of new outlets done on the name of other
existing outlets
All the SKU of a product are not brought in the
market at a time
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TPS (Sify software) is not updated regularly
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Solutions
Proper training should be provided to salesmen
Salesmen should be regularly informed about the changing
offers and schemes on the products
An apparel containing detail of offers should be given to
salesman for ready stock sales
Apparel should be provided to salesmen to enhance brand
awareness
Territory allotted to salesmen should consider the sales
potential and concentration of outlets in that area
Salesmen should be provided incentive for adding new
outlets
TPS should be updated regularly to show current stock
details
The incentive of the salesmen should be based on the
number of outlets served by them too rather than merely on
sales volume
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References
Sergio Romn, Salvador Ruiz, Jos Luis Munuera, (2002) "The
effects of sales training
Kangkang Yu, Jack Cadeaux, Hua Song, (2012) "Alternative
forms of fit in distribution flexibility strategies", International
Journal of Operations & Production Management, Vol. 32 Iss:
10
Andrew Napier, (1986) "Incentives A Vector of Improved
Sales Performance?", European Journal of Marketing, Vol. 20
Iss: 6, pp.36 51
Steven H. Appelbaum, Loring Mackenzie, (1996)
"Compensation in the year 2000: pay for performance?
Health Manpower Management, Vol. 22 Iss: 3, pp.31 - 39
Journal of Marketing; Jan1972, Vol. 36 Issue 1, p31-37, 7p
www.itcportal.com
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