ITC LIMITED – FMCG INDUSTRY

Understand the Distribution Network Model

‡ Study the Company Product Portfolio. ‡ Get to Know the product Avlaibility in the
market ³Weight, Size, Price and Variant´. ‡ Frequent sale product. ‡ Product Packaging
(Single , Multiple ,Consolidate ). ‡ Understand the distribution of Goods from Supplier
to the consumer end. ‡ How many Channels Involved. ‡ Which Transportation mode
used for inside or outside the city.

‡ Understand the Vehicle Nature of Contract (Hired / Owned ). ‡ Understand the Vehicle
terms of Contract ( Daily / Weekly / Monthly / Yearly ) ‡ Find out the Vehicle Operating
Cost Structure. ‡ Vehicle Load Carrying Capacity product wise. ‡ Vehicle Inspection
( Branding, Safety Measure etc) ‡ Stacking Pattern of Goods in the Vehicle. ‡ Delivery
Timing. ‡ Sales per day / month. ‡ Products Schemes Involved. ‡ Margin in product sale
for company to end point. ‡ Expense Involved in distributing the product ( Warehouse
Rent, Electricity , Water bill ,Workforce Salary, generator fuel, maintenance Cost etc) ‡
Calculate the Net Saving of Distributor , Dealer , Retailer. Transportation Vehicle Owner.
‡ Market Share Company.

Cont«.

FOOD Kitchens of India Ashirvaad Non Food Personal Care Sunfeast Minto Candyman
Bingo Match Box Agarbatti

Cigarette

ITC Cigarette Product packaging Pattern & Payload Capacity

CIGARETTE 1 Cigarette. 1 Cigarette. Pack Box 10 Not Avl. 10 10 10 10 10 10 Not Avl.
10 10 50 Not Avl. 50 20 20 20 20 30 Not Avl. 50 50 Category 1 Carton

Insignia India Kings Classic Gold Flake Silk Cut Navy Cut Scissors Capstan Berkeley
Bristol Flake

30 Box. Not Avl. 30 Box. 60 Box. 60 Box. 60 Box. 60 Box 60 Box Not Avl. 30 Box 30
Box

ITC FOOD Product packaging Pattern & Payload Capacity

ASHIRVAAD AATA 1 Complete Packet (30 kg) 30 Pack 15 pack 6 Pack 3 Pack Load
Carrying Capacity (No of Carton) Piaggio ape 3-w Max. Average 30 25 30 25 30 30 25
25 TATA ACE Max. Average 60 50 60 50 60 60 50 50 Weight

1 kg 2 kg 5 kg 10 kg

Cont .
SNACK FOOD 1 Carton 15 Rs Pack Tomato Cheese 108 Cheese 108 Sour Cream 108
Masala 108 Chicken Delight 108 18 Rs.Pack Pizza 108 Tangi Tomato 108 Pasta 108
Max 30 Average Max 20 Average 45 60

Load Carrying (No of Carton )

Piaggio ape3-w TATA ACE

SUNFEAST

BINGO Loa Capacity (No of Carton) Piaggio ape 3-w TATA ACE

Category
Mari Light Orange Mari Nice Light Nice Sugar Sprinkle Snacks Special Special Choclate
Special Orange Special Elachi Special cream Gluco Biscuit Dark Fantasy Gol Black
Cookies Gol en Bakery

Weight of Each Pack.

360 gm 158 gm 71.4 gm 150 gm 85.7 gm 70.6 gm 65 gm 65 gm 65 gm 124 gm 78 gm
150 gm 75 gm 75 gm

Category

Price(Rs.)
20 12 5 15 10 7 5 5 5 12 4 30 15 15

1 Carton
15 48 84 48 90 72 120 120 120 60 120 36 30 30 Chips Namkeen

5 Rs. Pack 192 208

10 Rs. Pack 96 80

20 Rs. Pack 32 48

Max.

Average Max. Average 20 20

30 30
CANDYMAN

50 50

40 40
Load Carrying Capacity (No of Carton) Name of Can y

Weight Jar

Carton Contain Piaggio ape 3-W Max.

TATA ACE

Average Max.

Average 70 70 70 70 70 70 70

Double Echoles Natkhat rang Toffichoco Cofitino Futifun Butter Licks CM Liccks

787 gm 680 gm 740 gm 740 gm 680 gm 3.8 Kg 560 gm

12 Jar 8 Jar 12 Jar 12 Jar 18Jar 4 Jar 12 Jar

40 40 40 40 40 40 40

30 30 30 30 30 30 30

80 80 80 80 80 80 80

Loa Carrying of Carton )

Piaggio ape 3-w Max. Average 60 50

(No

TATA ACE Max. Average 95 90

ITC NON FOOD Product packaging Pattern & Payload Capacity

MATCH BOX 1 Carton AIM Sunflower Horsehead Homelight 600 matches 600 matches
Ship Train Load Carrying Piaggio ape3-w Max. Average 220 200 ( No of Carton ) TATA
ACE Max. Average 400 380

600 600 matches matches

600 600 matches matches

Personal Care
SUPERIA
Weight 72 gm 276 gm 464 gm Weight 4 ml 7 ml 8 ml 12 ml Shine & Black Shine &
Black Soft & Sandle Soft & Sandle Soft & Sandle Shine & Black SOAP Category
Natural Glow Haldi Glow Natural Glow Haldi Glow Natural Glow Haldi Glow
SHAMPOO Category Vibrant Cream Maxi Protect Vibrant Cream Vibrant Cream Maxi
Protect 1 Carton 144 Pcs. 48 Pcs. 30 Pcs. 1 Carton 2560 Pcs. 70 gm 2120 Pcs. 1920 Pcs.
960 Pcs. 100 gm 300 gm Weight 5 ml 100 ml 200 ml Weight

Cont .
FIAMA DI WILLS
Shampoo Category Volume Eveready Silky Strong Shine & Style Boost Mild Volume
Eveready Silky Strong Shine & Style Boost Mild Volume Eveready Silky Strong Shine
& Style Boost Mild SOAP Category 1 Carton Weight 1 Carton Agna Balance Agna
Balance Agna Balance 480 Pcs. 36 Pcs 24 Pcs.

Shower Gel Category Clear Spring Clear Spring Exotic Dream Exotic Dream

1 Carton

Skin & Fragrence 72 Pcs Shine Flower Skin & Fragrence 60 Pcs Shine Flower Skin &
Fragrence 24 Pcs Shine Flower 100 ml Mild Due

12 Pcs.

200 ml Mild Due

24 Pcs.

VIVEL DI WILLS
Weight 45 gm 92 gm 184 gm 75 gm 150 gm Weight 5 ml 100 ml 200 ml Soft & fresh
Soft & fresh Soft & fresh Sandle Sparkle Sandle Sparkle Sandle Sparkle Ayurveda
Eseence Ayurveda Eseence SOAP Category Young Glow Young Glow Young Glow
Setin Soft Setin Soft Setin Soft 1 Carton 196 Pcs 144 Pcs 72 Pcs 120 Pcs. 72 Pcs. 1
Carton Volume & Bounce Volume & Bounce Volume & Bounce 480 Pcs. 60 Pcs. 36
Pcs.

Soft & Fresh Soft & Fresh Shampoo Category Shine & Glow Shine & Glow Shine &
Glow

Manufacture

VENDORS MANFACTURING UNIT

ITC MANFACTURING UNIT

Manufacture

1) 2) 3) 4) 5) 6) 7) 8) 9)
KITCHENS OF INDIA AASHIRVAAD SUNFEAST MINTO CANDYMAN
SNACK FOOD MATCH BOX AGARBATTI STATIONARY

HUB

C&F

1) 2) 3) 4)

SOAPS SHAMPOO CHIPS CIGARETTE

DISTRIBUTOR

RETAILERS

HOTEL RESTAURANTS

SUPERMARKETS

SECONDARY WHOLESELLERS

Customer

SMALL RETAILERS

Customer

ITC LOGISTIC NETWORK DIAGRAM

Customer

FLOWOFGOODS

DIFFERENT PLACES OF INDIA MANFACTURING UNIT

ITC Product Distribution Model, Pune

Vehicle Used TATA 909EX, Eicher, FLT BIWANDI HUB NAGPUR HUB Nagpur Hub
is Chosen when Unavailability of Products at Biwandi.

PUNE (C&F) EICHER, TATA 909 EX

NASIK

Different District SATARA DHULIA ITC Distributor across Pune Chamadia

(Kharadi) PCC (Yerwada)
PANVEL

PUNE

NANDUR BAR

AHMEDNAGAR

Bombay Stores (Kalevadi)

Mahadev (Market Yard)

Yash (Hadapsar)

Chamadia (Singhad) Vidhavir (Rasta Peth)

ITC PORTFOLIO
Name of product Bingo Pasta Biscuits

Candyman

Minto

Aashirwad

vivel Shampoo MatchBox Agarbatti

Manufacturing unit Haridwar Ranjangaon,Pune Nehru road,kolkota Food creation pvt ltd,
survey no.34,kachara kanahalli naduvathi noskote,taluka-Bangalore. Prayagh hut
products,survey no.279 & 280,Hyderabad leamark health care pvt ltd,matoda,Ahmedabad
Royes india ltd,plot no.127,Secundrabad laxshmi food,karipati ,Salem. Leamark health
care pvt ltd,matoda,Ahmedabad ITC quality care,P.O box no.36,gpo,New Delhi kolkota
Mumbai Chennai Firozabad Hyderabad Jaipur UttarPradesh Sector 11,IIE ranipur,
Uttarkhand,Haridwar Aura personal care,khasora no,1220,plot no. a3/3, UPSIDC,Nanital
WIMCO Limted,Alambazar Kolkota Shivkashi Dist. Ananath agarbati co,rehanari peth ,
Bangalore. kolkota Munger

ITC MANFACTURING POINT FOR DIIFERENT PRODUCT PORTFOLIO

Key Observation about Primary Distribution ‡ ITC has different manufacturing plant
for different products. ‡ Some Products are manufacture by Vendors and some by ITC. ‡
Each Factory deliver products to different Region e.g. Rajan Gaon is a manufacturing
plant of BINGO it caters half of India and other plant is in Haridwar that caters other half.
‡ C&F(Carry & Forward) Agent Warehouse caters near by surrounding areas. ‡ Pattern
of Goods Supply from C&F Warehouse to Distributor is Daily to Once a week. ‡
Distributor assign on the basis of Total Volume Covered in a particular city.
Kolkota

Munger

Saharanpur

Banglore

Hyderabad

Biwandi (HUB)

Minto, Candyman, Bingo

FOOD 1

Distributor Cigarette
Ape 3-W, TATA Ace,GC1000, Alpha Champion, Mahindra Max PAN SHOPS
Wholeseller Other Shops

Non FOOD 1

Matches Customer

PAN SHOPS
Customer

Customer

Cigarette Distribution Model (Distributor-Consumer)

Nagpur

Kolkata

Banglore

Hyderabad

Haridwar

Ranjan Gaon

Ahmadabad

FOOD
BIWANDI (HUB)
Distributor FOOD
Hotel &

Kitchans of India Ashirvaad Sunfeast Minto Candyman Bingo

Restaur ants
Retail Shops
Customer Wholeseller Super Market Street Retailers

Customer

Retailer

Customer

Customer

Customer

FOOD Distribution Model (Distributor-Consumer)

Kolkata

Banglore

Haridwar

Nanital

BIWANDI (HUB)
Distributor NON FOOD

Retail Shops

Wholeseller

Super Market

Non Food Personal Care Match Box

Customer

Retailer

Customer
Agarbatti

Customer

NON FOOD Distribution Model (Distributor-Consumer)

Stacking Pattern of PIAGGIO Ape 3 W

Stacking Pattern of TATA ACE

For Cigarette Distribution, Distributor use different ways to distribute cigarette 1 1.

Salesman Covers(2-W) ---Pan Shops 2 2. Distributor Vehicle (3-W) Covers
---Wholeseller/Retailer 3 3. Wholeseller or Pan Shops directly Purchase from Distributor
end.
Distri t r 3 Tea s

Sales a (10-15)
Pick Ti i g 9:00 t 11:00 AM

Area C vered 24 K

2W

2 Tea s le Seller 3
Pa S s

C vers s
etailer

750 Pa S

Per day Sale Disrributor 6,50,000 Wholeseller 50.000 Panshops 5000 Disrributor 2%
Margin Earned Wholeseller .8-1% Panshops 8-10 %

ROUTE PLAN for cigarette

Monday ( Pashan)

Saturday (VishranVadi)

Tuesday (Peth)

Friday (Peth)

Wednesday
(Visharantvardi)
Thursday (Pashan)

ROUTE PLAN FOR FOOD AND NON FOOD PRODUCTS: Distributor have 5 to 7
Vehicle for Food and Non Food Product . Each vehicle have 6 route for the whole week.
6 vehicle Cover 36 Routes in a Week. Each route cover approximate 20 Km per day.
Same route follow after one week. Fuel cost in case of Piaggio Ape 3-W is Rs.100 and
TATA ACE it cost 180 to 20o Rs. The Fuel cost is high because of frequent stop & start
of vehicle. Supply of food and Non food products Distributor have their own vehicle and
Pays Driver
Salary range from 3500 to 6000.

In Case Bingo Distributor have 5 Salesman that Sale Bingo in the area of 20 to 25
Km per
day.

Salesman have their own vehicle 3-W and charge 13000 per month. It includes Fuel,
Maintenance and Salary. In addition to that after achieving the target they get Rs.3000
incentive. Target is Rs.85000 Bingo in a month.

For Food Products Distribution:Transportation mode used for distribution of Food

Products is via 3-Wheeler or 4-Wheeler. ‡ First , Salesman take the order from the
Existing and New Customer. ‡ Second, Plan the route according to the delivery pattern .
‡ Thirdly, load the vehicle as per weight carrying capacity of vehicle. ‡ Lastly, Distribute
the products. ‡ Distribution of products to the Whole seller , Big Retailer, Street shops,
Supermarket, Hotels, Restaurants . ‡ Sales of Ready to Eat Foods is more in Stack Areas
+ Modern trades. ‡ In case of Bingo Dist. Each Salesman get target

N/ Diagram for FOOD Category

Compa y are ouse

Vehicle Safety Measure:Pack Body 2 Door System

Assig ed t e Order

Distri utor are ouse Load t e order

Salesma Retailer argi i Bi go: Rs.5 Pack-Rs.4.46 Rs.10 Pack-Rs.8.93 Rs.20 Pack-
Rs.17.86

Purc ase Order ole seller , etailers, Super market , otel estaura ts Delivered t e order

Per day Sale Distributor 1,50,000 Wholeseller 7.000 Retailer 2000 Disrributor 4%

Margin Earned Wholeseller 3% Retailer 10 %

ROUTE PLAN for FOOD PRODUCTS

Monday

2 Team
(1 Team = 4 Salesman)

Sunday 2 Team
(1 Team = 4 Salesman)

Tuesday 2 Team
(1 Team = 4 Salesman)

Saturday 2 Team
(1 Team = 4 Salesman)

Wednesda y 2 Team
(1 Team = 4 Salesman)

Friday 2 Team
(1 Team = 4 Salesman)

Thursday 2 Team
(1 Team = 4 Salesman)

Each Salesman covers Delivery of 15 Shops per day

For Non Food Products Distribution:Transportation mode used for distribution of Food
Products is via 3-Wheeler or 4-Wheeler. ‡ First , Salesman take the order from the
Existing and New Customer. ‡ Second, Plan the route according to the delivery pattern .
‡ Thirdly, load the vehicle as per weight carrying capacity of vehicle. ‡ Lastly, Distribute
the products. ‡ Distribution of products to the Whole seller , Big Retailer, Street shops,
Supermarket . Match box is also deliver to the Pan Shops with cigarette distribution.

N/ Diagram for NON FOOD Category

Compa y are ouse

Vehicle Safety Measure:Pack Body 2 Door System

Assig ed t e Order

Distri utor are ouse Load t e order

Salesma
Purc ase Order ole seller , Retailers, Super market , otel Restaura ts

Delivered t e order

Per day Sale Distributor 12000 Wholeseller 1000 Retailer 400 Disrributor 12%

Margin Earned Wholeseller 10% Retailer 10 %

ROUTE PLAN for FOOD PRODUCTS

Each Salesman covers Delivery of 15 Shops per day

Average Sale of ITC Distributor, Pune Per Month. Category Distributor CHAMADIA
JHANHVIR PCC BOMBAY STORE YASH CHAMADIA MAHADEV Food & Non
Food Location KHARADI RASTA PETH YAERWADA KALEVADI HADAPSAR
SINGHAD ROAD MARKET YARD SALE (Rs.) 8,000,000 7,500,000 6,500,000
6,000,000 3,000,000 2,500,000 2,500,000 Cigarette Stick Sold 20,000,000 15,000,000
10,000,000 10,000,000 8,000,000 5,000,000 5,000,000

KEY FINDINGS
Scheme in case of Bingo:If Retailer Buy 60 Packets then he will get 4 Packets free
Cigarette is volume base which has very high value

Purchase order from Distributor to Supplier depends upon the MIS system. Threshold
level is 60 % (Stock Inv. > Thres. Lev.) Liquidator is 1-2 days.

FMCG industry is Volume base not Weight Base

Different Product have different distribution Channel.

Distributor are not using APE 3-W because of less Space capacity

Conclusion

‡ Most of the Distributor using Ape 3-W because of Good Mileage and more carrying
capacity in Ape Xtra LD. ‡ In FMCG industry, Supply and demand is directly
proportional to each other. ‡ FMCG industry is using FIFO system.