1. ITC SUNFEAST
BISCUITS
SALES AND DISTRIBUTION

2. Discussion Outline

3. Discussion Outline

4. 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

5. Introduction to Sunfeast
 Launched in July, 2003
 Growth rate of 53%
 Turnover of over 1000 crore
 Wide categorization
PRODUCTS COMPETITORS
PARLE, BRITANNIA AND HORLICKS
GLUCOSE
MARIE BRITANNIA AND BISK FARM
BUTTERBITE AND CREAM PRIYA GOLD, ANMOL, BRITANNIA
AND PARLE

6. Products at a Glance

7. Discussion Outline

8. Organizational Structure

9. Recruitment at ITC
 Entry level
 Premier management institutes
 Middle level
 Integrity
 A quot;will doquot; attitude
 High energy
 Creativity
 Leadership
 Team skills
 Ability to think strategically
 Grass root level

10. Discussion Outline

11. Diagram
FMCG
FOOD OTHER
AND FMCG
BEVERAGES PRODUCTS

12. 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

13. Important Factors
CREDIT SYSTEMS MARGINS
FOOD STOCK OUTS
PROMOTIONS
DISTRIBUTION CHANNELS WASTAGES

14. Discussion Outline

15. Distribution Channel

16. Flow Diagram
CNF
FACTORY
WHOLESALE
DEALER
BASE
RETAILER
WHOLESALE
DISTRIBUTOR

17. 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.

18. 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.

19. Discussion Outline

20. 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.

21. 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.

22. Observations
 Companies with top product are hard to bargain
on credits.
 Companies also use their premium products to
push their non premium products.

23. Discussion Outline

24. ITC SUNFEAST
BISCUITS
Presented by:
Amitanshu Srivastava Ashish Baid
Alok Kumar Anand Kumar
Ankit Nema