Project: To assess the market potential of ITC's OFMCG products in convenience channel Objectives • Assess the market potential of ITC’s OFMCG product. • To know it’s positioning in the mind of the customers, and • Recommendation on how to tap ITC’s OFMCG market. Recommendation Identified that 4p's of Marketing Mix is not valid in Indian context. e.g. Sunfeast, Britannia Tiger and Parle provides the same product at the same place and at the same price. So it does not provide an edge over others. So, I identified 4 factors which were important for improving relation between retailers and manufacturers and provided recommendation in accordance. 1 Managerial efficiency of Supply Chain- Tried to find out the bottlenecks (Delivery van) and incentivize them and prepared a routine for salesman for the item to be taken alongwith them so that Demand pattern becomes probabilistic and constant/ variable with time. Also suggested to use semi stockist for far off areas. Suggested them for keeping buffer stocks in distribution point 2. Merchandizing- Instead of providing incentive to the shops where ITC has a display (it is not working in favour of the company), it can go for third party merchandizing or cross merchandizing. 3. Promotion- Convenience stores can be classified into A) Grocery stores B) Cold Drink Store C) Non Cold Drink Store. We can organize competition between stores based on this classification on the basis of pushing sales (Earlier company employed competition on the basis of amount of goods retailers have purchased). Salesman in convenience channel work on the basis of commission and deals in kutchha bill do not inform shops of any prevalent schemes. 4. Price

1. Faculty Mentor- Dr. Ashutosh Mohan
(Assistant Professor)
Company Mentor-
Mr. Satya Prasad
(Area Manager)
Presented by- Sandeep Kumar Samanta

2. Flow of Presentation
Industry Analysis
Distribution model & schemes
SWOT Analysis
Research Methodology
Data Analysis
Findings & Conclusion
Recommendation
Learning

3. FMCG Industry
 Characteristics
They are used at least once a month
They are used directly by the end-consumer
They are non-durable
They are sold in packaged form
They are branded

4. FMCG Industry
 Characteristics
 Industry Segments

5. FMCG Industry
 Characteristics
 Industry Segments
 Industry Size- 35-42 $ bn (Source:CII)
 Spending Pattern

6. FMCG Industry
 Characteristics
 Industry Segments
 Industry Size- 35-42 $ bn (Source:CII)
 Spending Pattern
 Market Share

7. Porter’s 5 force Model

8. Company Profile
 History

9. Company Profile
 History

10. Company Profile
 History
 FMCG Business

11. Company Profile
 History
 FMCG Business
 Performance

12. Company Profile
 History
 FMCG Business
 Performance
 Market Share

13. Company Profile
 History
 FMCG Business
 Performance
 Market Share

14. SWOT Analysis

15. Organizational Structure
(Kolkata Marketing Branch)

16. Distribution Channel

17. Distribution Channel of
Competitors

18. Distribution Channel of
Competitors

19. Schemes of Competitors
 Snacks


20. Schemes of Competitors
 Snacks
 Matches


21. Schemes of Competitors
 Snacks
 Matches
Noodles

22. Schemes of Competitors
 Snacks
 Matches
Noodles
 Confectionery

23. Schemes of Competitors
 Snacks
 Matches
Noodles
 Confectionery
 Biscuits

24. Research Methodology
Objective:



To assess the market position of ITC’s
OFMCG product.
To determine the factors that shopkeepers
look for while dealing with manufacturers.
To suggest measures to enhance ITC’s
OFMCG market.

25. Research Methodology
Objective:
Research Design:


 Exploratory research was conducted to
find out the variables retailers usually
consider to choose a FMCG company to do
business with.
 Descriptive research was conducted to
collect data to know the market position

26. Research Methodology
Objective:
Research Design:
Sampling:

 Sampling Technique- Stratified Random Sampling
 Sampling Unit- Howrah
 Sample size- 218 outlets in convenience channels

27. Research Methodology
Objective:
Research Design:
Sampling:
 Data Collection
techniques and analysis
tools
Data collection techniques-
 Observation Method
 Interview Method
 Questionnaire Method
Data Analysis Tools
 Factor Analysis
 Charts

28. Data Analysis
Factor Analysis
Variables considered
Availability
 Price Competitive
Schemes
Display Offered
Customer Relationship
Brand Name
Price Discrimination
Return of damaged goods
Credit period
Sustainability

29. Data Analysis
Factor Analysis

30. Data Analysis
Rotated Component Matrix
Factor Analysis

31. Factors
Factors Variables Eigen Value
Managerial Efficiency
of supply chain
Availability 2.531 (25.306%)
Customer Relationship
Sustainability
Price Price Competitiveness 1.865 (18.646%)
Price Discrimination
Merchandizing Display offered 1.455 (14.546%)
Promotion Schemes 1.185 (11.846%)
Return of damaged goods

32. Portfolio Analysis
 Biscuits



33. Portfolio Analysis
 Biscuits
 Snacks


34. Portfolio Analysis
 Biscuits
 Snacks
 Soaps

35. Area wise Analysis

36. Area wise Analysis

37. Findings
Factors responsible for sale of products

38. Market Share

39. Sales Mix

40. Contd.
Market wise
• On the day of delivery of goods by CDM, very few markets are covered.
• Markets like G T Road, Dharsa, Bankra, Howrah Court, and Pilkhana have very good
demand of ITC products.
• Entry of vehicles in Bankra and Benaras road 2 is not allowed till 12:00. Hence
delivery to these markets starts after 12:00 clock, but shops get closed by 12:30-
01:00 clock.
• Delivery of items by CDM starts at around 11:00 clock in kadamtala, kamardanga,
Dasnagar, Ramrajatola,
• Markets like Dobson Road and Belilious Road suffer from problems related to credit.
Shopkeepers take down the product on credit and delay payment for long time.
• Markets like Pilkhana and Dobson road also have problem related to theft of items
from the delivery van.
• Howrah station does not have any sale of ITC biscuits.
• 16 of the 24 routes are covered by the CDM vehicles in a week.

41. Contd.
Product wise
• ITC’s cream biscuit and cookies have large market share in Howrah. Sunfeast
Cashew and Butter, and Orange and Chocolate cream have very high demand
among the cookies and cream biscuit segments.
• ITC’s matches suffer from problems related to quality as well as pricing. Shopkeepers
say that ITC’s matches do not burn properly as well as quite expensive when
compared to other brands present in the market.
• Chips and bridges have good market and shopkeepers are willing to sell it, but
problem related to packaging of the product
• Shampoos have a very low market share.

42. Recommendation
1. Measurement of Performance
Managerial Efficiency of Supply chain
Corporate Headquarter
Balance Sheet
Profit & Loss Account
Cash Flow
Distribution Point
Throughput
 Inventory
 Expense

43. Recommendation
1. Measurement of Performance
Managerial Efficiency of Supply chain
2. Available to promise
Phenomena that are responsible for inefficient distribution
 Statistical Fluctuation- Demand pattern becomes
probabilistic and constant/ variable with time
 Bottlenecks/ Dependent events.

44. Contd..
Statistical Fluctuation
Bottleneck
Leads to Probabilistic Supply
which is constant/
variable with time

45. Contd..

46. Contd..

47. Contd..
3. Introduce Semi Stockist just like HUL’s initiative of
project Shakti.
4. Basic principle of distribution should revolve around the
fact that inventory is a liability.
5. Buffer Stock
6. Incentive linked pay for van wallas
7. Increase the van from 3 to 4

48. Contd.
 The system of providing incentive to the shops where ITC
has a display is not working in favour of the company.
 ITC can also look for third party merchandizing.

Merchandizing

49. Contd.
 The system of providing incentive to the shops where ITC
has a display is not working in favour of the company.
 ITC can also look for third party merchandizing.
ITC can look out for cross merchandizing.
Merchandizing
Cold Drink
Snacks
PepsiCo
Snacks
Cold Drinks
ITC
Coca Cola

50. Contd..
• Classify and organize competition between stores
Promotion
 Grocery Stores
 Cold Drink Stores
 Non Cold Drink Stores

51. Contd..
• Classify and organize competition between stores
• Increase advertisement in TV. Promote new products during IPL.
Promotion

52. Contd..
• Classify and organize competition between stores
• Increase advertisement in TV. Promote new products during IPL.
• Advertisement should be with some purpose
Promotion
Lux, Dove
Miss
Universe,
Miss World
Dettol,
Lifebuoy
Killing
Germs
Vivels
Delicate
Skin
(TFM-
73%)

53. Contd..
• G4 salesman works on the basis of commission and they do not have any
pucca bills.
• They do not inform shops about any prevalent schemes.
Price

54. Learning
• First hand interaction with a company.
• My view about Marketing.
• Learnt New marketing terms.
• Got to know how customers are dealt with or are approached to.