FMCG – Britannia

Britannia Industries is one of India’s leading food companies with a 100-year legacy and annual
revenues in excess of Rs. 9000 Cr. Britannia is among the most trusted food brands, and
manufactures India’s favourite brands like Good Day, Tiger, NutriChoice, Milk Bikis and
Marie Gold which are household names in India. Britannia’s product portfolio includes
Biscuits, Bread, Cakes, Rusk, and Dairy products including Cheese, Beverages, Milk and
Yoghurt. Britannia products are available across the country in close to 5 million retail outlets
and reach over 50% of Indian homes.

Study of Distribution System

Distribution channel of Britannia is the set of interdependent organizations involved in the

process of making its products available for use or consumption by end user. The Route-To-
Market of products are done by various stakeholders in the distribution channel of Britannia
are as follows in given sequence.

Manufacturer Depo Distributor Retailer Customer

Manufacturer: There are three manufacturing units of Britannia in India. The products of
Britannia are produced in three locations which are Pune, Chennai and Delhi.

Depo: There is one depo in Nagpur. All the products from manufacturing units are delivered
here for covering the Nagpur region requirements.

Distributor: There are three distributors in Nagpur – East, West and North. These three regions
cover all the retail outlets of general trade. The products are delivered from depo to distribution
centres. The main function of distributor is bulk-breaking of huge lots coming from depo into
small SKUs and deliver them in small units to the retailer through tempos.

Retailer: There are 2200 retail outlets which are covered by East region distributor, 2200 retail
outlets which are covered by West region distributor and 1800 retail outlets covered by North
region distributor. The salesman visits the retail stores, takes the order required by the particular
retailer and sends the order list to the distribution centre same day. By next day, the SKUs are
delivered to the retail shops.

Customer: The customer visits the retail shops and buys the desired Britannia product. Thus,
the distribution channel is complete.
 Organisation Chart – Roles and Responsibilities

We had visited Shri Mahavir Agency, near Ram Nagar Gate, which is the west region
distributor of Nagpur retail stores in General Trade. This agency was managed by Mr. Sarang
Mishrikotkar. The other members included in this distributor’s organisation were nine
salesmen, five drivers, six helpers and 1 computer operator. This organisation had fleet of total
5 tempos out of which 3 tempos are owned by company, which served the 2200 retail outlets.

Roles and Responsibilities:

1. Agency Manager: The role of Agency Manager is to manage all the activities in the
distribution centre, look after the inventory management, hire and manage salesmen
and other employees, deal with Britannia Territory Managers for product management.
2. Salesman: The salesman visits retail outlets in the specific geographic location. Their
role is to generate orders, demonstrate new products, encash pending bills and maintain
relationship with retailers.
3. Computer Operator: His role in the company is to perform data entry work and
generate bills.
4. Helper: The role of helper is to load and unload the products from the manufacturer
and perform other small activities.
5. Driver: His main role is to deliver the products in designated retail outlets within a
given time frame.

Different Characteristics of the Distributor:

1. Financial Strength: Mahavir Agency earns a sales value of 60-70lakh per month. This
agency would earn a margin of flat 5% on the selling price. The distributor receives
additional compensation of 1% of the target set by Britannia, if it is achieved. The
distributor has to manage all its expenses from the above two earnings.
2. Sales Strength: This agency had twelve diligent and smart salesmen.
3. Sales Ability: The salesman covers 40 retail outlets in one day out of which he has to
bring orders from minimum 20 retail outlets. The timing of visiting stores is 10:00 am
- 4 pm. The small stores order smaller number SKUs and are of small valued products.
The bigger outlets order large number of SKUs and the range of value of these SKUs
vary from small to high depending on the customer demand in that locality retail outlet.
The salesman visits outlets, generates orders and encashes pending bills. After taking
the orders from the outlets, the salesman returns office and places order for delivery.
 The tempo is then assigned to deliver the ordered products/SKU in the required outlet
by next day max. The salesman has a timetable to cover the same retail outlet every
week.
4. Product lines carried: Currently Mahavir Agency carries 180 SKUs of Britannia and
Amul Tru. Although Amul Tru is a competitive product, this agency has kept this
product only for last two month because it is a seasonal product.
5. Market Coverage: There is a market coverage of 2200 outlets in the West region via
12 salesmen.
6. Advertising and Sales Promotion Programs: Britannia decides various schemes and
promotional activities for the retailer and customer. The task of this agency is to pass
all the benefits further in the chain and keep only flat 5% margin of product price for
itself.
7. Training Programs: Review meetings are being conducted on daily basis by the
territory sales executive of Britannia. In this meeting target of salesman, various new
product schemes, and knowledge is transferred to understand how to tap market and
resolve issues if any.
8. Sales compensation methods: Target of salesman decided by Britannia company
managers. New targets are given every month based on Y-O-Y growth requirement.
The new targets are achieved through two ways. One, by asking the existing retailers
to increase the number of products they keep and second by tapping new retail outlets
where the Britannia product can be sold. This new retail outlets have to be within the
geographic stipulation of the agency. Mostly 90% target is achieved by the salesmen of
Mahavir Agency.
9. Infrastructure: The distributor has an area of 500 sq. ft to keep inventory.
10. Ordering & Payment Methods: The distributor has to buy the products from Britannia
after making payment in RTGS format. It supplies the products to the retailer on the
basis of credit.
11. Targets: The distributors are given target to achieve. These targets of salesman and
distributor are decided by company. In case of new product launch, the distributors are
given a target of delivering that product to 20% outlets. In case the targets are not
achieved, the distributor tries to dump its products in few retail outlets with the help of
the relation that it has built over the years.
12. Conflict Management: The conflicts generally don’t occur between the retailer and
distributor. But if need arises, Britannia representative steps in and resolves the issue.