Itc shampoo

1. Study of Distribution Network of ITC Shampoos

2. ITC HISTORY ITC Limited Parent Company ITC Limited Category Consumer Products, Hotels & Services Sector Public & Co nglomerate Tagline/ Slogan 100 Inspiring years; 100 years 1 mission India first Founder Henry Overton Wills on August 24, 1910(as Imperial Tobacco Company of India) STP Segment Products and services for daily needs Target Group Every Indian household especially the middle class Positioning Enduring Value. For the Nation. For the Shareholder.

3. ITC Business Portfolio

4. A Brief Overview

5. What is Channels of Distribution Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with  intermediaries . Product distribution  (or  place ) is one of the four elements of the  marketing mix It can be of the following ways

6. Distributors of PCP in India The total number of distributors in India of ITC is 5027 in PCP products. Some of the Major cities include the metro cities Nagpur, Ahmedabad , Kochi, Jaipur , Hyderabad . etc In Mumbai it is divided into 3 regions Each region consists 6-8 distributors having a total 25 distributors.

7. Territory division in Mumbai Mumbai divided into 3 sub cities : “City 1” , “City 2”, “City 3” Every “City” consists of 4 regions A total of 12 regions 6-8 distributors per region : A total of 23 distributors

8. SWOT Analysis

9. Distribution Channel Process

10. Distribution Channel Production at Haridwar 3 rd Party WSP Fee Based Service CFA at Bhiwandi Distributor Unorganized Retail End Customers Organized Retail Fixed Margin: 3.5% TOT on Case to Case Basis : Decided by Central Office Distributor pockets 3.5% 10% on Bottles 24% on Sachets Company Freight Rs.100 Rs.103.5 Rs.113.85 Rs. 102 Rs.100 Rs. 95

11. Credit flow across the Chain No credit offered to distributor Goods delivered strictly on cash, cheque , RTGS basis. Distributor offers 7-15 days credit to retailers. Margins of Distributor includes an interest component towards the credit he offers down the chain

12. Flow of Damaged Products ITC Distributor Retailer Consumer Only replacement of Damaged Products, No reimbursements Paid Damaged Goods Moving Back to ITC May Replace May Reimburse

13. Achieving Economies of Scope Cigarettes Food PCP Distributor Sales Team PCP Sales Team Food Sales Team Cigarettes Single distributor for all 3 verticals Single Sales team for entire PCP: Soaps, Shampoos and Agarbattis

14. Distribution of “Distribution” @ Kamla Enterprises

15. Sales tracking sheet

16. Sales persons use PDA to transfer information into the FORUM system. Database consolidation happens every evening. Uses FORUM – IT system to monitor distribution activities, link distributors with company, track orders, etc The system helps to track inventory, determine reordering levels other than being a one-stop-shop for all the information about salespersons and retailers Linking “IT”  FORUM system

17. -Key Strategies

18. Selection of Distributors Exclusivity of distributors is strictly maintained in ITC Company leverages its brand and high inherent demand of its products in the market to enforce exclusivity on distributors Not possible for smaller manufacturers to force exclusivity, as they don’t enjoy bargaining power with distributors Advantages No need to push products through distributors as they have access to only ITC products Saves on extra margins company gives to distributors to lure them in ITC’s favor

19. Area Wise Strategy- Organised Retailers vs Unorganised Retailers Area selection according to Standard of Living SKU and key Products Profit Margin Share of Sachet by revenue Share of Bottles by revenue Superia 80 20 Vivel 60 40 Fiama Di Wills 20 80

20. What is SKU Stands for "Stock Keeping Unit," and is conveniently pronounced "skew.“ SKUs may be a universal number such as a UPC code or supplier part number or may be a unique identifier used by a specific a store or online retailer. Mainly used to track the inventory using their own custom  database system. When shopping online or at retail stores, knowing a product's SKU can help you locate the exact product at a later time.

21. Choice criteria of distributors/retailers (80-20 rule) ITC is a late entrant in the shampoo market Currently enjoys 5% of the market share Fiama Di Wills : Oct, 2007 Vivel : June, 2008 Superia : August, 2008 Strictly follows 80:20 principal to gain economies of scale first Selects the first 20% of the most profitable retailers for ITC in a particular territory Out of the total 1 lakh retailers in Mumbai, it today serves only 24000 retailers

22. The Way Forward

23. By group 8 Tripti Madhushree Nikesh Celistin Alan Abhimanu Kumar Singh Aakash Thakkar