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7/27/2019 Final Presentation _ ITC Ltd in sales and distribution
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7/27/2019 Final Presentation _ ITC Ltd in sales and distribution
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7/27/2019 Final Presentation _ ITC Ltd in sales and distribution
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Wholesale Distributor
AE
Supervisor
Supply Chain
Salesman
Salesman
ChannelsGrocery , Bakery ,
Chemist ,Fancy Stores ,Consumption Centre
Convenience , Hawker,,HORECA , Wholesale
AE
ITC - WD link Leads Supervisor & DS
Team
Supervisor
WD - DS link Stock , Route , Sales
Planning , DS Training& Development
Salesman
WD - Channel link
Sales , Merchandising
Understanding the Sales And Distribution Chain
(PHASE -1)
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Wholesale Distributor
AE
Supervisor
Supply Chain
Salesman
Salesman
ChannelsGrocery , Bakery ,
Chemist ,Fancy Stores ,Consumption Centre
Convenience , Hawker,HORECA , Wholesale
Planning &Preparation
Stock Check &Presentation
Sales and
Billing
Merchandising
Sales Call Close
Planning &Preparation
Load Adequate Stock , Merchandising MaterialCarry Pending Bill , Rack Cleaning Material , Bill Book
Stock Check &Presentation
Check Stock On Hand , Expiry Stock , DNDInform Previous week sales , Suggest Purchase Quantity
Sales andBilling
Confirm Order , Cut the BillDeliver Order
Merchandising
Clean Rack , Rotate new stock on rack , Hang LadisExchange DND .
SalesDeliverables
Coverage
SalesValue/Volume
Productivity
Bill Cuts
Line Cuts
Quality ofService
Sales CallProcess
Processes in the chain
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Loading Sale Negotiate MerchandisingDND
Collection
Stock at WD
Stockwith DS
DeliveredStock at handSupplies
Reserve StockCash at hand
Stock at WD
pointRoute DemandCarryingCapacity
Inefficiencies in Loading
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Loading Sale Negotiate MerchandisingDND
Collection
SKUsAvailable
SKUsDemanded
RetailersPush
SalesmansPush
Demand Supply
Prefers highselling SKUsPrefers morecredit & varietyInduces SalesCannibalization
DS pushesavailable stockMaximize salevalue , bill cuts,lines cutRetailerscapacity to pay
Dynamics involved in a Sales negotiation
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Loading Sale Negotiate MerchandisingDND
Collection
Stock CheckHanging LadisArranging on rackNew Stock Rotationon rack
Expired stock
Air out PacketsUnsold / Obscured packets instoresLost visibility
Inefficiencies in Merchandising
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E A R L I E R AV G . B I L L C U T
1 7 B I L L S / R O U T E
B I L L C U T S I N M O D E L
2 4 B I L L S / R O U T E
A V G D A I L Y O U T L E T S C O V E R E D
2 2 / R O U T E
A V G D A I L Y O U T L E T S C O V E R E D
3 8 / R O U T E ,
9
DAY 1
ORDERBOOKIN
G
HAUZRANI
KHIDKIEXTENSI
ONDAY 2
DELIVERY
HAUZRANIKHIDKI
EXTENSION
DAY 3
ORDERBOOKING
SAKETSEKHSARAI
DAY 4
DELIVERYSAKET
SEKHSARAI
DAY 5ORDER
BOOKING
MALVIYA NAGAR
HAUZKHAS
DAY 6
DELIVERYMALVIY
A NAGARHAUZKH
AS
HYBRID MODEL WEEKLYPLAN
HIGHLIGHTS
Two routes clubbed together in one dayAlternate day cycle of Order Day (OD) andSupply Day(SD)Visibility of DS is just doubled per routeNo of outlets covered increased in one day.14 day average : Inc Sales , inc bill cut
Hybrid distribution model SHAKUJA SONS
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Retailers expectation and satisfaction level ( phase -2)
Sampling Method
field work
900 + retailer stores covered
72 respondents
Data collection
Primary data: -
Questionnaire.
Observation and Interview technique.
Secondary data: -
Information is collected through company websites, various Bingo advertisement and
marketing websites.
From various text books.
Journals and magazines.
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Merchandising activity of ITC distributors
In comparison to other brands merchandising activity of ITC distributor is good
enough
12
0
5
10
15
20
25
30
35
Excellent Good Fair Poor Very poor
No. of retailers 4 35 29 4 0
Percentage (%) 5% 49% 41% 5% 0%
Noofstores
Merchandising activity
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Contribution of ITC products to the total sales
Choice of stocking depends on?
1317%
44%
32%
7%Contribution in sales
Less than 5%Between 5-10%
Between 10-20%
More than 20%
0
10
20
30
40
50
60
70
80
90
100
Demand Margin Shelf space Schemes andoffers
Advertisement
TOTAL
No. of retailers 51 10 6 5 0 64
Percentage (%) 70.80% 14.20% 8.30% 8.70% 0 100
No.ofretailers
Choice of stocking
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Retailers satisfaction with schemes and discounts offered by distributors
14
0
5
1015
20
25
30
35
40
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied
Percentage (%) 5% 54% 30% 11% 0
No. of Retailers 3 39 22 8 0
No
ofstores
Satisfaction rating
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Hypothesis testing
151. Issue: Contribution of ITC products to the total sales of retailers.
H0: Contribution of ITC products to the total sales of more than 50% retailers is below 10%.
H1: Contribution of ITC products to the total sales of more than 50% retailers is more than 10% UsingZ testcan prove this
Computation ofZ value
Z= P-P/ sigma P
P=0.50 q = (1-P) =0.50
N=72 (N-1) =71
Where P= X/N = Respondents favoring HoTotal sample size P=44/72=0.61
Sigma P= P (1-P)/ (N-1) = 0.059 k0.05 = 1.64 Z= (0.61-0.5)/.059 Acceptance region
Z = 1.86
k0.05=1.64 (table value of Z) Rejection
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2. Issue: Availability of ordered stock
H0: More than 70% of retailers are satisfied with the availability of ordered stock.
H1: Less than 70% of retailers are satisfied with the availability of ordered stock
UsingZ testcan prove this
Computation ofZ value
Z= P-P/ sigma P
P=0.70 (1-P) =0.30
N=72 (N-1) = 71
Where P= X/N = Respondents favoring Ho
Total sample size
P=39/72=0.54
Sigma P= P (1-P)/ (N-1) = 0.054
Z= (.54-0.70) /0.00406 Z = - 2.96
K=1.64 (referring table value of Z)
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Findings of the project
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Dissatisfaction with the schemes and discounts
in collection of feedback and list out the queries of retailers Many of the retailers arenot satisfied with the sales representative
Most of the retailers are expecting schemes and offers for retailers and they aredissatisfied with their margin. For a great margin they sometimes purchase theproduct from the local wholesalers which might cause to generate sales loss.
Most of the outlets are satisfied with the merchandising activity.
It has been found that most of the retailers place the order every week and once in15 days .It shows that many of the retailers frequently place the order i.e. means theproducts are market viable.
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Recommendation18
Retailers viewed that display of the products has influenced their sale and many people insome areas recognize the product not by its name but by its external appearance. As it issuggested that merchandising activity should be extended to all General retailers.
Modernization and standardization of retailers network must be carried out in order toexchange ideas on successful selling strategies and identifying areas of improvements
Sales through Services and a Retailer Development Program must be carried out. It is likely to advise to the sales representative, to give an opportunity to retailers to put
their point of view during visit.
Still few of the retailers choice of stocking depend upon the factors like margin, schemes,discounts and offers. It attracts bulk orders to distributor. Distributor must be taking careof satisfaction of retailers in respect to above given factors.
Distributor should maintain stock of all ITC products. General discount and incentive from the company.
periodically review the performance of their retailer.
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