ITC report on retail outlets

MIP – SUMMER PROJECT REPORT

I M P L E M E N T AT I O N O F R A A N D C L O PROGRAM

ITC LTD.

Industry Guide: Ms. Muffadal Hussain

Submitted in partial fulfillment of the Post Graduate Programme in Management at TAPMI, Manipal by:

Name: Harsh Sultania Roll No: 13321 Batch: 2013-15 Date:26/5/2014

T A P M I , M A N I P A L , K A R N A TA K A - 5 7 6 1 0 4

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ACKNOWLEDGEMENT

The summer internship experience at ITC Limited has been extremely fruitful and the credit for the same goes to a number of individuals who have been instrumental in making my project a success. Firstly I would like to thank my project guides Mr. Muffadal Hussain, and Mr.Santanu Bhattacharjee for taking out time from their busy schedules to provide me with valuable inputs throughout the project. Next, I want to extend my heartfelt gratitude to Mr. Deepak G.N, Assistant HR manager, for proving me the opportunity to work with ITC Ltd I would also like to extend my gratitude to, Mr. Gopal Rana, Mr. Ananda, Mr.Jagannat and all others area supervisors who went out of their way in illustrating various operations, arranging visits and enhancing my learning. They have all made my stay here so much more meaningful. I feel privileged to have come in contact and worked alongside such wonderful people. I would attribute a fair share in the completion of this project to their constant motivation and patient hearing.

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ACKNOWLEDGEMENT

The summer internship experience at ITC Limited has been extremely fruitful and the credit for the same goes to a number of individuals who have been instrumental in making my project a success. Firstly I would like to thank my project guides Mr. Muffadal Hussain, and Mr.Santanu Bhattacharjee for taking out time from their busy schedules to provide me with valuable inputs throughout the project. Next, I want to extend my heartfelt gratitude to Mr. Deepak G.N, Assistant HR manager, for proving me the opportunity to work with ITC Ltd I would also like to extend my gratitude to, Mr. Gopal Rana, Mr. Ananda, Mr.Jagannat and all others area supervisors who went out of their way in illustrating various operations, arranging visits and enhancing my learning. They have all made my stay here so much more meaningful. I feel privileged to have come in contact and worked alongside such wonderful people. I would attribute a fair share in the completion of this project to their constant motivation and patient hearing.

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TABLE OF CONTENT 1 ) EXECUTIVE SUMARY 2 )  AB  A B O U T I T C LT D 3 ) PROJECT BACKGROUN I) PROJECT OBJECTIVES II) PROJECT SCOPE III) METHODOLOGYFOLLOWED 4 ) METHODOLOGY I) SECONDARY RESEARCH  A)  A ) OBSERVATIONS II) MARKETING RESEACRCH  A)  A ) OUTLET QUESTIONNAIRE FORM B ) FEEDBACK FROM RESPONSES C ) FINDING AND ANALYSIS ANALYSIS 5 ) INDUSTRY ANALYSIS 6 ) PERSONAL CARE PRODUCT 7 ) PRODUCT PRICES AND SCHEMES 8 ) LOYALTY PROGRAMS 9 ) INCENTIVES TO DISTRIBUTOR SALES PERSONNEL 10) WORK DONE I) IMPLEMENTATION OF RA OUTLETS II) IMPLEMENTATION IMPLEMENTATION OF CLO PROGRAMS  A)  A )  AC  A C K N O W L E D G M E N T F O R M B ) OUTLET COVERED C ) OBSERVATION AT DISTRIBUTOR POINT D ) WORK AT RETAIL OUTLETS E ) SCHEMES AND PROGRAMS RUN BY COMPETITORS 11) LIMITATIONS 12) CONCLUSION

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EXECUTIVE SUMMARY

Implementation of RA and CLO Program ITC LTD Harsh Sultania 26/5/2014

My project revolved around implementation of loyalty project run by ITC Ltd.  At first I was into implementing of RA (Retail Architect). I worked in 28 outlets in different areas of Kolkata. My work in those outlets was to negotiate for a hotspot and see that the merchandiser takes the proper measurement and gives all the things negotiated for. I also did a survey on the factor affecting the purchase of deodorant and competitor analysis.  After the work on RA outlets was done, I was given a list of outlets under 3 distribution point for implementation of CLO (Category Leadership Outlets) outlets. In these outlets an acknowledgment form had to be singed and submitted to Area Executive for implementation of the display. In those outlets I also did competitor analysis as to what schemes, incentives and loyalty program competitors are currently running. During my work in those outlets I also learned about sales and distribution process.

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About ITC LTD

ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 18 billion and a turnover of over US $ 5.1 Billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC also ranks among India's top 10 `Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. ITC employs over 24,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 3, 83,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This overarching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value For the nation For the Shareholder." ITC Ltd is one of India's premier private sector companies with diversified presence in businesses such as Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG products. Presently, ITC has a market capitalization of nearly US $ 15 billion and a turnover of over US $ 4.75 billion. It employs over 21,000 people at more than 60 locations across India. ITC has been rated among the World's Best Big Companies,  Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. ITC had a humble beginning and in the initial days it used to operate from a leased office on Radha Bazar Lane, Kolkata. On its 16th birthday on August 24, 1926, ITC purchased the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata. Two years later companies headquarter building; 'Virginia House' came on that plot. Progressively the ownership of the company Indianised and the name of the Company were changed to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses, the full stops in the Company's name were removed effective September 18, 2001 and the Company was rechristened as 'ITC Limited'. This project aims to study about ITC Bingo snacks and its distribution strategies. The project provides information about the various procedures followed by ITC with respect to distribution chain function, and client management.

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With the fast growing retail industry in India, competition has increased between the major market players. Companies are continually trying to engage and construct innovate ideas to service this market. The project includes a mix of observation, interview and questionnaires with scales. Initially a period of 4 weeks was dedicated to fieldwork under the guidance of area executives of ITC limited. An effort was made to understand the various servicing procedure, the typical areas/locality and classes of customers. Regular interaction was done with retailers and distributors about the response and flow of product respectively. Through this it makes easy to understand the process of distribution.  A week was dedicated to collect information of Frito-Lays regarding th eir marketing strategy, Distribution Network and Other Useful Information from the company officials. This project also includes my observation at retail outlets. ITC is involved in following businesses: Cigarettes: ITC is the market leader in cigarettes in India and has a wide range of

popular brands such as Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake in its portfolio. Packaging: ITC's Packaging & Printing Business is the country's largest convertor of

paperboard into packaging. It was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It offers a variety of value-added packaging solutions for the food & beverage, personal products, cigarette, liquor, cellular phone and IT packaging industries. Hotels: ITC entered the hotels business in 1975 with the acquisition of a hotel in

Chennai, which was rechristened Hotel Chola. Today ITC-Welcomgroup with over 70 hotels is one of the foremost hotel chains in India. Paperboards: In 1979, ITC entered the Paperboards business by promoting ITC

Bhadrachalam Paperboards. ITC's Paperboards business has a manufacturing capacity of over 360,000 tonnes per year and is a market leader in India across all carton-consuming segments. Greeting, Gifting & Stationery: ITC's stationery brands "Paper Kraft" & "Classmate"

are widely distributed brands across India. The Paperkraft designer stationery range consists of notepads & multi subject notebooks in hard, soft covers & multiple binding formats including spirals, wires etc. ITC's Greeting & Gifting products include Expressions range of greeting cards and gifting products. Safety Matches: ITC's brands of safety matches include iKno, Mangaldeep, VaxLit,

Delite and Aim. The Aim is the largest selling brand of Safety Matches in India. ITC also exports premium brands to markets such as Europe, Africa and the USA. Aggarbattis: ITC has launched Mangaldeep brand of Aggarbattis with a wide range

of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini,  Anushri, Ananth and Mogra. Mangaldeep is also being exported to USA, UAE, Bahrain, Nepal, Singapore, Malaysia, Oman and South Africa. Lifestyle Retailing: ITC entered the Lifestyle Retailing business with the Wills Sport

range of international quality relaxed wear for men and women in 2000. The Wills 6|Page

Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Club life evening wear (2003). In 2002, ITC entered into the popular segment with its men's wear brand, John Players. In 2005, ITC introduced Essenza Di Wills, an exclusive line of prestige fragrance products. Food: ITC made its entry into the branded & packaged Foods business in August

2001 with the launch of the "Kitchens of India" brand. In 2002 it expanded into Confectionery, Staples and Snack Foods segments. ITC's brand in Food category includes: Kitchens of India, Aashirvaad, Sunfeast, Mint-O, Candyman, and Bingo! Agri Exports: ITC's International Business Division (IBD) is the country's second

largest exporter of agri-products. ITC exports Feed Ingredients (Soyameal), Food grains (Rice, Wheat, and Pulses), Coffee & Spices, Edible Nuts and Marine Product E-choupal: The e-Choupal model of ITC has been very effective in tackling the

challenges posed by the unique features of Indian agriculture, characterized by fragmented farms, weak infrastructure and the involvement of numerous intermediaries.

ITC Limited - SWOT Analysis Strength Weakness Opportunity Threats

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-------------------------

Brand & Management Unrelated diversification. Rural market and e-choupal. 1) Increasing tax in cigarettes 2) Health hazard

PROJECT BACKGROUND Project Objective:  

To increase ITC’s presence in the small retail outlets To understand competitor’s offering to these outlets

Project Scope:    

To work on visibility of product To understand how much display and incentives help in sales To understand the problem faced by the retailers To work on sales and understand the distribution network

Methodology Followed:    

Secondary Research Market visits Market Research Competitor’s analysis

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METHODOLOGY 1) Secondary Research The first stage of project involved secondary research for better understanding of deodorant industry. Through secondary research got an idea of the key competitors, understanding the market share and their advertisements and promotion and also pricing

Observations Prices of different Deodorant in India Fogg - Rs.180 Park Avenue – Rs.185  Axe – Rs.165 Wild Stone – Rs.160

Deodorant Market in India 

 





India is a Sub Tropical Country and Deodorant is a Crucial Grooming Product here Market has grown from 103 Cr in 2003 to 1520 Cr in 2013 With a current growth rate of 39% in next 9 years, 85% urban and 15% rural citizen would be using deodorant Changing socio economic fabric and women empowerment are major factors for Deodorant revolution Deodorant predominantly a male grooming product, but expansion into the women segment underway

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







PESTLE Analysis of Deodorant Industry Political : Controversial advertisements of deodorant regularly subjected to criticism by politicians Economic : Poor economy leads to unemployment which further leads to fall in consumption of deodorants Social : With change in lifestyle and increase in personal disposable income, people tends to focus tend to focus more on hygiene and therefore increase deodorant consumption Environment: Deodorant contains Aluminium which can lead to cancer and  Alzheimer’s disease.



Legal : Misleading ads by deodorant companies attract court cases

Market Share before launch of Engage

Market Share after launch of Engage

Fogg -13%  Axe – 8% Park Avenue - 8% Wild Stone – 7% Engage – 5% Set Wet – 4.5 % Spinz – 4% Nivea – 4% 10 | P a g e

Competitor Analysis

2) Marketing research through primary data collection The next step included collection of data from the retailers regarding the buying behaviour of deodorants and also about satisfaction and dissatisfaction of retailers.  A questionnaire was prepared and data from around 150 outlets was collected. 11 | P a g e

Outlet Questionnaire Form Outlet name: ...................................................

1) How many and of which brands deo do you sale? 

 __________________________________________________________________

2) Which deo most of the customers demand, in order of their preferences? 

 __________________________________________________________________

3) What does a consumer look for? a)Price b) smell c) size d) stay e)others 4) Does price play any significant role in Engage deo purchase? 

Yes: (

)

No: (

)

Sometime: (

)

5) Are other competitors’ products offering any scheme? 

Yes: (

)

No: (

)

6) Name of the brands and their respective offers? 

 ___________________________________________________________



 ___________________________________________________________



 ___________________________________________________________

7) Do customers carry any pre-conceived idea about Engage deo, or they make their decision at the shop? 

Pre-conceived idea: (

)

Decision at the shop: (

)

8) Which category of deo is gaining more demand? 

Male: (

)

Female: (

)

Both: (

)

9) Does the scheme offered by the company create impact on the sales? 

Very much : (

)

Significant : (

)

Not much : (

)

Not at all : (

10) Are the customers happy with the fragrance?  Yes: (

)

No: (

)

Can’t say: (

)

11) Do the customers also buy the prod uct after watching TV ads or having friend’s influence?  TV ads: (

)

Friend’s influence: (

)

Can’t say: (

)

12) Which age-group of customers mostly buy the deo? 

9-15: (

)

16-25: (

)

26-35: (

)

35 above: (

)

13) How much is the display helpful in making sale? 

Very much : (

)

Good : (

)

Average : (

)

Poor : (

14) What is the overall response of the customers towards Engage deo? 

Excellent : (

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)

Good : (

)

Average : (

)

Poor : (

)

)

)

The questionnaire was filled while working on the implementation of for RA and CLO outlets. The feedbacks from the responses are represented graphically:

Role of price

58 Significant Not Significant 92

Important Factors 6

17

Price stay Fragnance 71 56

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size

Category

37

62 Male Female Both

51

Pre-concieved idea

60 Yes NO 90

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Age Group 8

11

13-17 18-25 54

26-35 35+ 77

Role of Display

3

21

32 very much good average poor

94

: 15 | P a g e

Response

20 35

very good good average poor

95

Schemes offered by the company: Most of the Dealers are happy with the schemes offered by the company. The margin on Engage is better than the other deodorants. Customer Satisfaction: Most of the Customers are happy with the fragrances and they are repurchasing the Deo. TV ads: TV ads act as a very important driver for increasing sale of deodorant

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Findings from the research: 



  



Price is not a very important factor for purchase of deodorants as compared to smell and stay. The advertisement of engage fails to connect with the Indian population. There is a lack of catchy tagline. Fogg is the maximum demand for its ad and its tagline “no gas, only liquid” Display is helpful in increase in sale. Retailers needs to be happy with company as sale also depends on dealer as 60% customers decides in the shop itself. Dealers are not happy for the delayed payment for the display. Schemes Offered by other Companies AXE:

   

Buy 12 and get one free Buy 24 and get 2 free Buy 48 and get Rs 20 off in all the 48 pieces Display amount Rs. 350 Wild Stone:

   

Buy 8 and get 1 free Buy 24 and get 3 free Buy 48 and get Rs. 800 less on bill Display amount Rs.500 Park Avenue:

   

Buy 12 and get 1 free Buy 24 and get 2 Buy 24 get Rs 350 discount Buy 48 get Rs. 500 discount XLR8:

 

Buy 500 pieces and get a music system free Buy worth Rs. 100000 and get a laptop free with a INOX ticket with each deodorant for customer and in each ticket dealers gets Rs. 30

Nivea paying display amount of Rs. 800

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INDUSTRY ANALYSIS Fast Moving Consumer Goods (FMCG) as “products that have a quick shelf turnover, at relatively low cost and don’t require a lot of thought, time and financial investment

to purchase. Fast Moving Consumer Goods is a classification that refers to a wide range of frequently purchased consumer products…”

Household Care

Personal Care

Food & Beverages

•Fabric wash (laundry soaps and synthetic detergents) •Household cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish)

•Oral care • Hair care • Skin care • Personal wash (soaps) •Cosmetics • Toiletries •Perfumes • Deodorants •Feminine hygiene

•Health beverages •Soft drinks •Staples/cereals •Bakery products (biscuits, bread, cakes) •Snack food •Chocolates •Ice cream •Tea & Coffee •Processed fruits & vegetables •Dairy products •Bottled water  •Branded flour  •Branded rice •Branded sugar  •Juices

Indian FMCG Sector The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion. Well-established distribution networks, as well as intense competition between the organized and unorganized segments are the characteristics of this sector. FMCG in India has a strong and competitive MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita consumption as well as low penetration level, but the potential for growth is huge.

The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income. The big firms are growing bigger and small-time companies are catching up as well.  According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned 18 | P a g e

by MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by Hindustan Lever. Pepsi is at number three followed by Thums Up. Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). These are figures the soft drink and cigarette companies have always shied away from revealing. Personal care, cigarettes, and soft drinks are the three biggest categories in FMCG. Between them, they account for 35 of the top 100 brands. Exhibit I THE TOP 10 COMPANIES IN FMCG SECTOR

S. NO.

Companies

1.

Hindustan Unilever Ltd.

2.

ITC (Indian Tobacco Company)

3.

Nestlé India

4.

GCMMF (AMUL)

5.

Dabur India

6.

Asian Paints (India)

7.

Cadbury India

8.

Britannia Industries

9.

Procter & Gamble

10.

Marico Industries

The companies mentioned in Exhibit I, are the leaders in their respective sectors. The personal care category has the largest number of brands, i.e., 21, inclusive of Lux, Lifebuoy, Fair and Lovely, Vicks, and Ponds. There are 11 HLL brands in the 21, aggregating Rs. 3,799 crore or 54% of the personal care category. Cigarettes account for 17% of the top 100 FMCG sales, and just below the personal care category. ITC alone accounts for 60% volume market share and 70% by value of all filter cigarettes in India. The foods category in FMCG is gaining popularity with a swing of launches by HLL, ITC, Godrej, and others. This category has 18 major brands, aggregating Rs. 4,637 crore. Nestle and Amul slug it out in the powders segment. The food category has also seen innovations like softies in ice creams, chapattis by HLL, ready to eat rice by HLL and pizzas by both GCMMF and Godrej Pillsbury. This category seems to have faster development than the stagnating personal care category. Amul, India's largest foods company has a good presence in the food category with its ice-creams, curd, milk, butter, cheese, and so on. Britannia also ranks in the top 100 FMCG brands, dominates the biscuits category and has launched a series of products at various prices. In the household care category (like mosquito repellents), Godrej and Reckitt are two players. Goodknight from Godrej is worth above Rs 217 crore, followed by Reckitt's Mortein at Rs 149 crore. Outlook

There is a huge growth potential for all the FMCG companies as the per capita consumption of almost all products in the country is amongst the lowest in the world.  Again the demand or prospect could be increased further if these companies can change the consumer's mindset and offer new generation products. Earlier, Indian 19 | P a g e

consumers were using non-branded apparel, but today, clothes of different brands are available and the same consumers are willing to pay more for branded quality clothes. It's the quality, promotion and innovation of products, which can drive many sectors.

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Personal care product: ITC launched an exclusive line of prestige fine fragrances under the Essenza Di Wills brand in mid-2005. The Essenza Di Wills range of perfumes reinforces ITC’s tradition of bringing world-class products to Indian consumers to enrich the quality of their lives. Essenza Di Wills  embodies a fine balance between the classic and the

contemporary. The brand personifies exclusivity, innate style, sophistication and magnetism. The Essenza Di Wills  line has been developed with the assistance of French perfumery experts to give it the mystique and premium luxury quality that go with the best of international brands. The latest addition to the Essenza Di Wills portfolio is the Aqua range for men (Aqua Home) that offers a distinctive and fresh aquatic fragrance. The Aqua range includes an After-Shave Lotion, a Deodorant, a Hair & Body Shampoo and a Bathing Bar. In September 2007, ITC launched Fiama Di Wills, a premium range of personal care products comprising shampoos, conditioner, shower gels and soap.  This premium range is a unique blend of nature and science that promises gentle effective care . It is an outcome of 4 years of extensive research and development by experts at ITC R&D Centre. The packaging for all Fiama Di Wills  products has been developed by a leading European design firm and the fragrances have been developed by an international fragrance house in France.

Fiama Di Wills Shampoos  developed in collaboration with Cosmetech

Labs Inc., USA, offers a range of four variants. Each variant is designed to deliver a specific hair benefit to the consumer The Fiama Di Wills range of soaps has been launched under the sub - brand Skin Sense. The first variant to be introduced in this range is Soft Green. This is a gentle caring soap, which helps enhance retention of skin proteins making skin look beautiful and youthful. Following the successful launch of Fiama Di Wills Shampoos and Shower Gels, ITC has now introduced Fiama Di Wills Soaps, which offer the benefit of gentle and effective care by combining elements of nature and science.

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Product prices and various Schemes Engage Deodorant Net

Purchase

Scheme

MRP

1-3 Units

5% on Bill

125.57

160

4-7 Units

8% on Bill

121.6

160

8 Units

8+1

117.49

160

21 Units

21+3

115.65

160

36 Units

36+6

113.26

160

Rate

Vivel Product

Rate

Rs.10 Vivel All Variants

8.89

Scheme 2% discount on purchase of 48

Net rate

MRP

8.7122

10

Vivel FV Carton 125 Gms

22.22

NA

22.22

24

Vivel 100 g

20.37

NA

20.37

23

Vivel 100g*4

74.07

NA

74.07

85

Vivel 100g*3

58.33

NA

58.33

63

Vivel 75 g

18.52

NA

18.52

20

Vivel 75g*4

64.81

NA

64.81

70

Fiama Di Wills Product FDW 75g

Rate

Scheme

Net Rate

MRP

29.63

NA

29.63

32

50

NA

50

54

FDW 125*3

144.44

NA

144.4

156

FDW shower Gel

138.89

11+1

127.3158

145

FDW 125g

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LOYALTY PROGRAMS 

Retail Class B :- Retailers qualified to sell ITC products



SL Qualified: - Shubh Labh Qualified Retailers are the ones who make a purchase of the Rs 35000 every month to become wholesalers. This includes purchase of every division excluding popular atta (plain atta).



FC Qualified:-First Club Qualified Retailers are the ones who have to make a purchase of Rs 12000 every month. On every purchase, for Rs 250 they earn one point and after the target is achieved they earn one point for Rs 225. These points can be redeemed after a period of 3 months by the way of purchasing ITC goods without cash. These retailers are provided with the facilities of display and Star SQ points.



CLO: - Category Leading Outlet. This program involves the facility of display and when the retailers achieve certain targets stated by the company, they are provided with 3% discount on the total bill of 3 months. CLO has 3 categories. i) CLO Premium : Last 6 months average PCP sales > Rs. 1000 ii) CLO Popular Soaps : Last 6 months average PCP sales > Rs 750 iii) DEOCLO : last 3 months average deodorant sale > Rs. 800



RA: - Retail Architect. This program involves the facility of display but with a higher amount than CLO outlets. In these outlets a third party comes and does the designing for shelves selected for display. This program is only for cosmetic stores.

INCENTIVES TO THE DISTRIBUTOR SALES PERSONNEL 







An incentive of Rs 100 per day for a minimum of 10 bills cut is provided to the DS. An incentive of Rs 75 per day for a minimum of 120 lines cut is provided to the DS. In case of Bingo Rs 60 per day for a minimum of 8 bills cut is provided to the DS and additional of Rs 10 per bill for more than 8 bills. Overall target achievement 90% achievement:- Rs 1800  95% achievement:- Rs 2400  100% achievement:- Rs 3000

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Work DONE Implementation of RA outlets: First 10 days were devoted for implementation of RA at 30 cosmetic outlets. In those outlets negotiation for the best spots available was done. Certain loopholes where also found during that stage.

Name of outlet

No of shelves

Measurement

Remarks

New Sovanalaya KK & sons

2 1

Done Done

Chandra Stationary Cosmetic center

1

Done Not done

Amrita stores Variety corner Ladies corner Rajlaxmi stationers New Rakamari stores New city variety

1 1

Done Done

Not a good spot Bad spot(negotiation going on) Ok No space provided(no timely payment) Good Ok

1

Done Not done Not done

Rani stores

1

Done

Rupango(J) New Rupango Nandanik Maa kali stores Rupangan

1 1 2 1 1

Done Done Done Done Done

Barsha cosmetics Basanti M.S Ghose cousin variety Fancy stores Jugal & co. Sweet emporium Minerva stores Jaiswal stores S lal & shaw Nu sweet emporium

1 2 1 2 1 1 1 2 1

Done Done Done Done Done Done Done Not done Done Done

Super store

1

Not done

Ok No display Recommended for DA outlet Current spot is not good. Asked the dealer to negotiate for a better spot Same Same Ok Good Ok(no other place available) Good Good Ok Good Ok Ok Good Currently not a outlet Good Not good(no other spot available) Space not available

Find Below, pictures of some stores and the negotiated shelves:

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Jugal & Company

S. Lal & Shaw

Fancy Stores 25 | P a g e

Implemenation of CLO Program For CLO program to be implemented the following Acknowledgment Form was need to signed by the shop owners, following which the merchandiser which would come set up the display. Acknowledgement for Display Acceptance For office use only

WD Name & Code Sify ID Loyalty Type

CLO PCP ________________________________ (Plz specify type e.g. DEO & Popular) Date: _________________

To, Store Name: ________________________________ Address: ___________________________________ Dear Sir, As per your consent this is to confirm that the display as mentioned below will be put up in your store by the merchandiser in next 30 days. Please note that the display should have Backing sheet, Shelf Strip & Presence of agreed products all the time to entitle you to receive the display amount as mentioned below:

Details

Display Details

No of Agreed Shelves for Display Brands For Display Display Amount

Kindly confirm the above by signing this document.

 ________________________________  ________________________________ (Name and Sign of Shop owner)

(Name and Sign of

DS/TL)

Acknowledgement of Display Completion

Date of Acknowledgement Received by PPMS OM/OE: ________________ Date of Display Completion by Merchandiser: ________________________

I acknowledge the installation of the above display to my satisfaction.

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 __________________________ ____

__________________________

(Name and Sign of Shop Owner)

(Name and Sign of Merchandiser)

Process Note for Display Negotiation & Implementation: 1. Display Negotiation with the outlet: AE/WD TL/DS will negotiate the display space at the outlets basis the potential outlets list provided by the HO team & will get an acknowledgement (as attached) sign from the outlet owner. Please ensure that displays should be taken only at Hot spots. AE/WD/TL will mark the space negotiated for display with permanent marker so that merchandiser should be able to identify the same. 2. Communication for Display implementation to PPMS team: AE will hand over the acknowledgement to the respective PPMS OM/OE or the supervisor every Saturday for implementing the display at the o utlets. 3. Display Implementation by PPMS Merchandiser: After r eceiving negotiation acknowledgement PPMS will put up a receipt date on the acknowledgement form & execute the display within next 30 days. After putting up the display he will report to his respective incharge & will hand over the slip to his incharge. 4. Merchandiser actionable in case of no permission by outlet: If outlets refuse for display implementation then merchandiser will try to resolve the issue with the help of the person who has negotiated the display at the outlet. If even after this intervention, the merchandiser fails to put up the display then he will share the date of visit & reasons for non-implementation of display at the outlets with his respective supervisor once a week. 5. Data base updation by PPMS: The data base of receipt forms will be updated by PPMS backend team at their 8 branch offices & will be collated at PPMS head office & will be sent to ITC HO as per agreed frequency. Respective PPMS OE/OM will also share a weekly or fortnightly update on display implementation with issues if any with ITC branch teams as per agreed dates.

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Outlets covered

Outlets under 4 distribution houses where covered 1) Gopal Enterprise (Belgoria) -272 outlets 2) Anil Bhusan and Mitra (Shyambazar) - 94 outlets 3) Subhas Trading Company (Saltlake) - 69 outlets

OBSERVATION AT DISTRIBUTION POINT

Wholesale Dealer Operations ITC has various distributors as per area/regions who follow the chain of transferring the products to their clients. These distributors are independent proprietors/ partners who are the mediators between the company and the customer. Apart from the basic relation of a mediator, the distributor plays a very important role as it passes consistent raw information as to which product is performing in the market.

Order taking process The order taking process starts from the customer point from where a Purchase Order (P.O.) is sent directly to the distributor of ITC via salesman.

Delivery process The Delivery process starts after the goods are been loaded in trucks and are ready to move towards clients' stores. Company

Purchase Order from Client

Cash

via salesman

Wholesale Dealer

System Loading Booking the Order

Delivery Process

Ordering Process

Print out Load sli

Cash Delivery person Retail outlet

Cash or Credit

Damaged policy The company accepts manufacturing defects and damaged goods. These damaged goods are returned to the company after the inspection done by the distributor. 28 | P a g e

Cash/Credit Management One of the most important decisions a distributor has to take is about cash /credit management. Cash management includes effectively managing working capital. The use of Working is the highest in distribution when it comes to any form of business. There is high amount of money blocked in working capital throughout the year, which is very risky. The basic way at which this distributor managements the cash is by regularly following up accounts receivable. Credit management is the sole of this business as all clients / customers demand for longer credit days as even there working capital is blocked till the end users do not purchase the goods. Credit policy is designed as per the trade of terms policy of ITC. This policy is designed categories wise.

WORK AT RETAIL OUTLETS: 1) To check the availability of products. 2) To check visibility of products. 3) To check how old the product is. 4) To trace the complaints regarding the product. 5) Identifying what would the factor to increase sale. 6) To select best place for display and maximum visibility 7) To understand what schemes and programs competitors are running

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Gopal Enterprise Gopal Enterprises have 6 salesmen under it and 30 markets. Each salesman has 5 markets under which he covers every day. Thursday the market under Gopal Enterprises remains close Outlet Name

A KA BARNAWAL

MAA LAXMI BHANDAR -

AAFIA ST

MAA MANASHA BHANDAR

ABHA VARIETY

MAA MANASHA BHANDAR (NIMTA)

ACHARYA STORES.

MAA TARA (ST) -(ARD)

ADDYAMAA

MAA TARA BHANDER-KHARDHA

ADHAKARY ST

MADHURI SNACK

AGAMONI STORES

MAITY ST

AMIO BHANDAR

MALLICK ST

AMIT BH

MAMATA VT

AMULYA BHANDAR

MANILAL SHAW

ANIL ST-ARD

MANISHA

ANIMA STORES

MANORAMA STORES

ANNAPURANA BH-ARD

MANOSHA BHANDAR (DURGANAGAR)

ANNAPURNA BHANDAR SUCKCHAR

MATRI BHANDAR

ANNAPURNA BHANDAR-DURGANAGAR

MATRI BHANDAR-MANIKDANGA

APARUPA ST

MATRI BHANDAR-SCHOOL ROAD

AVINANDAN-GHOLA 2

MATRI BHANDER2

BABA LOKENATH BHANDAR - BELGHORIA

MAYA BHANDAR

BABLU STORES

MAYURI

BALAJI STORES

MOHINI SRINGAR MAHAL

BANERJEE BHANDAR

MONALISHA

BASANTI STORES

MONDAL BROS

BENARASHI GROCERY

MONDAL VT. STORES

BERA STORES

MUSARAF ALI

BHAGABAN SHAW

N. SAHA

BHAGOBATI BHANDAR

NABA KALPATARU BHANDER

BHOLANATH BHANDAR

NAKUL STORES

BHOLANATH BHANDER-NATAGARH2

NANDI STORES-RASKHOLA

BHOLANATH BHANDER-SUKCHAR

NARAYAN STORES

BIJAY CONFEC.

NAYAK (ST)

BIJAY ST (KAM)

NEHA ST

BINA DEPRTMENTAL

NEW LAXMI BHANDAR

BINA PANI ST

NEW MAA DURGA BHANDAR

BISCUIT GHAR

NEW VRT STORES-USHUMPUR

BISWARUP BHANDAR

NILMANI SADUKHA

BISWAS VR. STORES

NITAI CHAKRABORTY

C.LAL,

NITYA GOPAL BHANDAR - ALIPURE MORE

CHATRABANDHU

NOBEL TEA.

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CHAYANIKA

O P GUPTA CLO

COSMETIC WORLD

ONKAR STORES

D. M STORES

P.G.GHOSH

DAS VR BH

PARIMAL DEY

DAYAMAYEE VR ST

PRINCE ST

DAYAMOYE.

PROYAJANI STORES

DEBKUMAR DEBNATH

PULIN PAUL

DEBNATH BHANDER

PURNALAXMI BHANDAR

DEBNATH STORES.

PUSPESWAR BHANDAR

DEBNATH STORES-RAHARA

R.S.TRADING

DEEPSIKHA

RADHA RANI ST-KAM

DILIP SARKAR

RADHA VRT STORES

DILIP SHOW

RAHARA VR ST

DILIP STORES

RAIMA VRT STORES

DINESH CHANDRA SAHAR DOKAN

RAJBANS SINGH

DIPALI ST

RAJLAXMI BHANDAR

DIPANKAR STNR GOODS

RAJLAXMI BHANDER

DIPIKA STORES

RAKAMARI ST-D P NAGAR

DIPTY VT.-GIRJA

RANJIT ST

DURGA ST (ARD)

RATION SHOP 208

DURGA STORES-SAKTIPUR

RENUKA.

DUTTA VRT STORES USH

RINKI VRT STORES

DUTTA VT. ST.-SCHOOL RD

RIYA ST

ELGO

S. SAHA

GANAPATHI TRADING

S.DABNATH

GANDHESWARI BHANDAR - (NIMTA ROAD)

S.GHOSH

GANDHESWARI BHANDAR-SCHOOL ROAD

S.K.BHANDER

GANESH BH (KAM)

SADHANA VR ST-CLO

GANESH BH (N.PARA)

SADHUKHA VRT STORES

GANESH TRADERS

SADHUKHAN ST

GANESH TRADING - KDH2

SAHA BHANDAR

GHAR SANSAR.

SAJGHAR.

GHOSH BROTHERS.

SAJSAJJA (DKS)

GHOSH BROTHERS-NANDAN NAGAR

SAMANTA STORES-GIRJA

GIRI BHANDAR

SANDHA ST.

GITANJALI

SANKAR BHANDAR

GLOSSY IMITATION

SANKAR GHOSH(618)

GOBINDA BHANDAR

SANKAR GRO.-NATAGARH2

GOPAL BHANDAR

SANKAR VRT STORES

GUPTA ST ( S K GUPTA)

SANTA ENTERPRISE

GUPTA ST.

SANTI STORES (MATHKOL)

GUPTA STORES (PRAFULLA NAGAR)

SANTOSHI MAA BH (KAM)

GUPTA TRADERS-SASHI

SANTU KARMAKAR

H.N.KOLEY

SANTY BH.

HALDAR STORES

SARASWATI BHANDAR.

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HAREKRISHNA

SARKAR BANIJYA

INDIAN ST

SAROSWATI BH

ITYADI.

SATYA NARAYAN BHANDAR-AGARPARA

JANONI STORES

SATYA NARAYAN BHANDER

JOY GOPAL BHANDAR.

SAYAN ST (BH/ARD)

JOY GURU STORES

SHIB BHANDER - SUKCHAR

JOY MAA KALI BHANDAR-R N AVENUE 2

SHISU ART

JOY MAA TARA

SHIV STORES

JOY MATARA BHANDAR

SHIVAM ST

JOYA STORES

SHOW ST

JOYDEB BHANDAR

SIKHA STORES

JOYRAM STORES

SITARAM BH (ARD)

JOYTY ENTERPRISE

SNEHALATA EMITITION

JYOTSNA-SARADAPALLY

SONAR TARI

KABERI STORES

SREE DURGA BHANDAR

KACHER SWARGA

SREE GANESH BH(RIFELREANG ROAD)

KALI MATA BHANDAR

SREE GOURANGA BHANDAR

KALIMATA STORES

SREE GOURANGA.

KALPATARU-AGARPARA

SREE GURU ABODUT BHANDAR

KAMALA BHANDAR.

SREE GURU BHANDAR.

KAMLA EMITITION

SREE GURU BHANDAR-GHOLA

KANU DUTTA

SREE GURU ONE

KHUDIRAM STORES

SREE GURU STORES-SAKTIPUR

KIRAN VR. STORES - BELGHORIA STATION

SREEMAA STORES

KRISHNA BHANDAR.

SRI BHANDAR

KRISHNA CORNER

SRI DURGA ST

KUNDU BHANDAR

SRI KRISHNA BHANDAR

KUNDU ST-BH

SRIMA STORES.

LAKHI SNACKS

SUBHASIHINI STORES

LAXMI BHANDAR-RAHARA

SUBHOM STORES- 3 NO. RAIL GATE

LAXMI BHANDAR-SENBAZAR

SUDHA ST(KAM)

LAXMI BHANDER-MISSONPARA

SUJAY ENTERPRISE

LAXMI BHANDER-NATAGARH 2

SUKUMAR SAHA

LAXMI NARAYAN BHANDAR

SULAB BHANDAR

LAXMI NARAYAN ST-MINMAY GHOSH

SULAB SAMBHAR

LAXMI ST (ARD)

SUSAN ST(BH)

LAXMI ST-NIMTA

SUSOMA ST

LAXMI STORES-B T ROAD

SWAGATA STORE(BH)

LAXMINARAYAN STORES,

TARA MA BHANDAR

LOKENATH STORES - OLD NIMTA

TARA MA ST

LOKNATH BHANDAR-KHARDA 2

TARAKNATH BHANDAR.

LOKNATH ST(KAM)

TARAKNATH BHANDAR-AGARPARA

LOKNATH STORES.

TARAKNATH BHANDER.

LOKNATH STORES-RAHARA

THE CHEAP STORES

LUCKY STORES

TIRUPOTI ST

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MAA ANANDAMAYEE ENT

TRILOKE SHOW

MAA CHINDICK ST CLO

TRINATH BHANDAR

MAA DURGA BHANDAR – BIRATI

TRIPURA BHANDAR

MAA DURGA BHANDAR(SVS)

UTTAM VT. STORES

MAA KALI BHANDAR - D. P. NAGAR

VARIETY STORES

MAA KALI BHANDER

VICTOR MEUSEUM

MAA KARUNAMAYE

VIVEKANANDA BHANDAR

MAA LAXMI BH.

MAA LAXMI BHANDAR

Of the above 272 outlets 208 outlets were converted to CLO outlets.

 Anil Bhusan and Mitra Outlet Name

A N HALDER

MAA DURGA STORES

A.BASAK

MAHA PRAVU BHANDER

A.K.STORES ( V. ROAD(

MAHA RAJA STORES

ABHIJIT DUTT

MAHAKALI STORES ( HADUA)

AMIR CHAND

MAHESH BHANDER

ANAND TRADING

MALATI ZARDA

ANANDA BHANDER-

RM

MAMON LADIES CORNER

ANNAPURNA BHANDER ( APC)

MANJU STORES ( BEADON)

B. L. MISRA

MODERN VARIETY STORES-R.D.SARKAR

B.P.AGARWAL(SHAMBHU DA)

NEW ELITE TEA HOUSE

BALAJI ENTERPRISE

NEW LAXMI NARAYAN BHANDER- MASZID

BARU LAL SHAW

NEW MADHUMALA

BASUDEB SAHA

NEW SUNDARAM

BHATTACHERJEE STORES

NILIMA

BHOLA NATH STORES

O.C.VARIETY

BINOD SHAW

OMPRAKASH SHAW

BINOD SHAW(RGK)

P G SHAW

BINOD SHAW(SYM)

P.HALDER

CHARU CHANDRA STORES

PRALLAD RAM OMPRAKASH

CHATERJEE BROTHERS

RAJU BHANDER BAGBAZAR

D.N.CHOWDHURY

S.K.SHAW

DASHAKARMA BHANDER

S.KUMAR ( HEDUA)

DINESH SHAW(RGK)

S.KUNDU

DIP STORES

S.L.AGARWAL

G S RANA

S.LAHA

GANDESWARI BHANDER(HG)

S.N.BASAK

GANESH STORES

SAFEDA BHANDER

GHOSH BROTHERS ( RGK)

SAHA STORES-VIVEKANADA ROAD

GIRIJA PRASAD GUPTA

SAMIR SETH ( APC)

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GOPAL STORES

SANJAY STORES ( HEDUA )

GUPTA BHANDER (MANIKTALA)

SANKAR STORES (123/1/1

HANUMAN PRASED GUPTA

SANKAR STORES(HG)

JAGNATH STORES ( HADUA)

SANTOSH SHAW

JAGONATH STORES

SHAMALI

JUST FRESH

SHIV BHANDER- DARJEE PARA LANE

K C SHARMA

SIDDHI GOPAL STORES

KAMALA STORES(B/R SARANI)

SOUMODEEP TELECOM

KAMALA TEA CO.

SREE AGARWAL BHANDER

KASHINATH BHANDAR

SREE DURGA STORES (RS)

KHOKAN NAG

SREE KRISHNA BHANDER

KISHORI SHAW

SREE TIRUPATI BALAJI

KISHORI SHAW(BAG)

SUNIL AGARWAL

LAHA BROTHERS

SURESH SHAW ( HEDUA)

LUCKY STORES

SUSHILA STORES

M.D.CASH

SWAPAN KR. SETH

M/S K P KARAK & S C KARAK

TARU BALA STORES

MAA BHABANI BHANDER

USHA STORES

Of the above 94 outlets 81 outlets were converted to CLO outlets

Subhash Trading Company Outlet Name

ABHINANDAN

NARAYAN BHANDER

ALAPAN

NEEDS

AMIT MAJUMDER ANNAPURN BHANDAR AB MARKET

NEW ANANTA BHANDER NEW KARUNAMAYEE STORES

ARNNAPURNA BHANDER

NEW LOKNATH BHANDER

BABA TAROKNATH BHANDER

NEW MAA KALI BAHNDER

BABAMONI HOME NEEDS

NEW MAA SONTOSHI

BAPI STORES

BAPPA DEPARTMENTAL

PROBIR STORES QUALITY HOUSH IB MARKET

BHOUMIK STORES

RADHA STORES

CHATTERJEE CONFECTIONERY

RATION SHOP BJ MARKET

DASABHUJA STORES

RATION SHOP-BD BLOCK

DUTTA BHAI-EC BLOCK

RATION SHOP-IA BLOCK

FAIR TRADERS

RELIABLE ENTERPRISE

GANESH BHANDER

ROY & SONS

GLOBAL FOOD MART

S.N.C.L

GOSH VARIETY STORES

SAHA STORES

GUPTA STORES

SANGAM

GURUDEV TRADING

SANKAR CONSUMER

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HORI CHAND BHANDAR

SATORUPA BANDER

JEET STORES

SHIVAM STORES

JOY GURU BHANDER

SHREE GANESH

K.K.BHNADER

SHREE HANUMAN STORES

KARUNAMAYEE

SIDDESWARI BHANDER

KAUSHIK HOWLADAR (SUSIL)

SOVA VARIETY STORES

LOKENATH BHANDER

SREE DURGA BHNADER

LOKENATH STORES-AE BLOCK

SREE GRIHASTI STORES

MAA ANNAPURNA STORES

SREE KRISHNA BHANDER

MAA LAXMI BHANDER

SUDHYA KHADYA BHANDER

MAA SONTOSHI BHANDAR

TARA MAA BHANDER

MAA TARA BAHNDER

THE SUMBAR

MAA VARITY STORES

TRINATH BHNADER

MAMONI STORES

UTSAV

MURARI STORES

VIVEKANANDA STORES

YOGOMAYA STORES

Of the above 69 outlets 55 outlets were converted to CLO outlets The once which are not selected is due to the following reasons:     

Non availability of display shelf Non availability of a good spot for display Dealer asking for a much higher rate which was allowed by company Dealers not ready due to the previous display related experiences Outlets not suitable for being CLO due to lack of competition or low sales

Schemes and programs run by other companies Unilevers 

  





Unilevers is current using Hangers for display of its small packet products like Surf Excel, Rin, Tressemme sampoo etc. For this there is no fixed monthly payments This incentive is decided on the basis of sales The incentive on different products are as follows Small sachet products: 05% on sales Soaps: 1 % on sales Food: 2 % on sales In addition to the above points they are also given a monthly target, and if the target is achieved they get addition 1.5% discount There is also a concept of HUL Hulk Counter. Hulk Counters are the selected as area top 3 counters; they get the benefit receiving all the products before the other retailers and also get extra 2% incentives.

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