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 ITC SUNFEAST
BISCUITS!!!
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 Introduction to ITC
m One of the worlds most reputable company

m Market capitalization of nearly US $ 18 billion

m Turnover of over US $ 5.1 Billion

m Post tax profit of US $750 Million

m Diversified product portfolio

m Direct group employment of 29000

 Introduction to Sunfeast
m iaunched in July, 2003

m Growth rate of 53%

m Turnover of over 1000 crore

m Wide categorization

PRODUCTS COMPETITORS

GiUCOSE PARiE, BRITANNIA AND HORiICKS

MARIE BRITANNIA AND BISK FARM

BUTTERBITE AND CREAM PRIYA GOiD, ANMOi, BRITANNIA

AND PARiE
croducts at a Glance
rganizational Structure
 `istribution of Biscuits
m Strict compliance standards, low profit margins,
intense competition, high customer-
customer-service
expectations..
expectations

 Fast and effective sales ordering processes.

processes.

 Flexibility

 Quick reaction
 [arious Channel
Considerations
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 Flow `iagram
CFA

FACT

WHESAE
`EAE
BASE

ETAIE
WHESAE
`IST IBUT
 `istribution System
m ITC uses FIFO method to reduce the wastage of
goods due to expiry
expiry..

m They also keep the good on constant move from

low sales area to high sales area.
area.

m The company collects all the expired goods four

times a year, and destroys them.
them.

m Retailers must return expired or damaged

products within six months after the date of
expire..
expire
 `istribution System
m Adjustment for them is done in three months
time..
time

m ITC provides their retailers with racks, hangers,

etc to display the products.
products.

m The benefits received by the retailers depend

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

m ITC has hired IMRB to do the market research.

research.
 bservations
m Biscuite are normally a high volume ball game.
game.

m Products have to essentially be available in the

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

m 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
past..
 bservations
m The skeleton of distribution system is same for all
the companies.

m Companies try very hard to make a difference at

some point to get the competitive advantage.
advantage.

m ITC has a very strong distribution network for

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

m Credit system also depends upon the position of

the product in the market.
market.