ITC LTD

Retail Audit and Market Expansion for Food Division

across Pune at ITC LTD. PUNE.
By Rohit A. Sarode, Indira Institute of Management, Pune.

About ITC
ITC LimitedorITCis anIndianconglomerateheadquartered inKolkata, West Bengal.Its diversified business includes five
segments Fast Moving Consumer Goods(FMCG), Hotels, Paperboards & Packaging, Agri Business & Information Technology.
Headquarters : Kolkata, West Bengal,India
Key people Y C Deveshwar, (Chairman)
Products Tobacco,hotels,paperboards & specialty Papers, packaging agri-business,packaged foods& confectionery,IT,
branded apparels,personal care, stationery,safety matchesand otherFMCG products
Revenue :-INR 45,102 Crores (US$8.31 billion)
ITC was formed on 24 August 1910 under the name of Imperial Tobacco Company of India Limited,and the company
wentpublicon 27 October 1954.The earlier decades of the company's activities centred mainly aroundtobacco products. In
the 1970s, it diversified into non-tobacco businesses.
In 1975, the company acquired a hotel inChennai, which was renamed the 'ITC-Welcome group Hotel Chola' (now renamed to
My Fortune, Chennai
In 1985, ITC set up Surya Tobacco Co. inNepalas an Indo-Nepali andBritishjoint venture, with the shares divided between
ITC,British American Tobaccoand various independent domestic shareholders in Nepal. In 2002, Surya Tobacco became a
subsidiary of ITC and its name was changed to Surya Nepal Private Limited.
In 2000, ITC launched theExpressionsrange of greeting cards,theWills Sportrange of casual wear,and a wholly owned
information technology subsidiary,ITC Infotech India Limited.
In 2001, ITC introduced theKitchens of Indiabrand ofready-to-eatgourmet Indian recipes.
In 2002, ITC entered theconfectioneryand staples segments and acquired theBhadrachalam Paperboards Division and
thesafety matches company WIMCO Limited.
ITC entered the Agarbattis (incense sticks) business in 2003, selling its products under theMangaldeepbrand.
ITC diversified into body care products in 2005.
In 2010, ITC launched its handrolledcigar- Armenteros - in the Indian market.
The company began online sales in 2014.

The ITC Vision

Sustain ITC's position as one of India's most valuable
corporations through world class performance, creating
growing value for the Indian economy and the
Company's stakeholders

The ITC Mission

To enhance the wealth generating capability of the
enterprise in a globalising environment, delivering
superior and sustainable stakeholder value

Core Values
ITC's Core Values are aimed at developing a customer-focused, high-performance organisation which creates
value for all its stakeholders:
Trusteeship
As professional managers, we are conscious that ITC has been given to us in "trust" by all our stakeholders. We
will actualise stakeholder value and interest on a long term sustainable basis.
Customer Focus
We are always customer focused and will deliver what the customer needs in terms of value, quality and
satisfaction.
Respect For People
We are result oriented, setting high performance standards for ourselves as individuals and teams.
We will simultaneously respect and value people and uphold humanness and human dignity.
We acknowledge that every individual brings different perspectives and capabilities to the team and that a strong
team is founded on a variety of perspectives.
We want individuals to dream, value differences, create and experiment in pursuit of opportunities and achieve
leadership through teamwork.
Excellence
We do what is right, do it well and win. We will strive for excellence in whatever we do.
Innovation
We will constantly pursue newer and better processes, products, services and management practices.
Nation Orientation
We are aware of our responsibility to generate economic value for the Nation. In pursuit of our goals, we will
make no compromise in complying with applicable laws and regulations at all levels.

Title and Project

Introduction to the Title: Retail Audit and Market Expansion for
Food Division across Pune at ITC LTD. PUNE .

ITC LTD is on a drive of expanding its market and services to

every possible potential outlet across India. For this Purpose ITC has
contracted Nielsen to carry out a Retails Census Survey which
would help in identifying the retails outlets across various geography
in the country. The list of the respective geographies is then provided
to the distributors to check for outlets and add them to the service
list.

Retail Audit included the audit of the distributors on the

bases of the list supplied by Nielsen and store addition done by the
distributors. It enforced the addition of the potential stores to the
service list there by increasing the overall sales and service for the
distributors across Pune. It also helped in closely monitoring areas
where the sale of Chips/Snacks (Bingo) is low and identifying the
reasons for the same.

Objectives
Primary Objectives: To identify the potential FMCG outlets for Food products which are not yet serviced by the ITC
distributors from the Retail Census Survey List and get them added to the respective
distributors service list.
To improve the overall sales and service for food products across Pune.

Secondary Objectives: To validate the outlets from the Retail Census Survey list on the bases of products stocked by
retailers especially the categories for which products are manufactured by ITC i.e. Aata (AT), Biscuits
(BI), Confectionary (CF), Noodles (ND) and Chips (SX).
To validate the outlets as potential/non-potential on the bases of monthly turn over for the above 5
food products categories. (should be more than Rs:750 to be potential)
To Identify competitors who are servicing these outlets for above mentioned five food products
categories.{Aata (AT), Biscuits (BI), Confectionary (CF), Noodles (ND) and Chips (SX)}
To identify potential outlets which are not yet serviced by their respective distributor and add those
outlets to the distributors list to be serviced regularly.
To identify gaps in the market and provide necessary feedback to the distributors about the same so
that the service quality can be improved.
To check for availability of Snack Bingo in all the listed outlets and the Display for Bingo
To identify reason for Bingo not currently being stocked by retailers if any.

Data Tabulation
Respons Towni
eid
d

WD
Date
NAME
Balaji
00022072
27-0533102 tradelink
111
2014
s
Pin
Landline
Mobile
Outlet
Code
Number
Number
Type
41101
77094821

Grocer
5
26
Monthl
Servic Servic Weekly
y
er4
er5
turnover turnov
er
20000
Lays Nestle
5000

Outlet Name

Street Name

Landmark

Localit
y
MALWA
DI

MALWADI
BAPUJI BUWA
MATAJI SUPER
ROAD
RD
MARKET
SIFY A B C N S Servicer Servic
Servicer3
ID
T I F D X
1
er2
CC3
Britani balaji,yellow
078 Y Y Y Y Y
Parle
a
Diamond
Remark
continue
Service

WD-Rajesh Trading and

Bombay Stores
RCS-01-05-PCMC

Stores to be
added
Organised Retail; 1; 0%
Stores to be added; 63; 13% Already Serviced
Chemist shops
Not found; 54; 11%
Non handler
category
Closed on the day; 18; 4% Does not want service; 2; 0% not serviced regularly; 2; 0%
Low Potential
Shop Permanently Closed; 8; 2%
Not found
Low Potential; 27; 5%
Shop
Permanently
Closed
Closed on the
Already Serviced; 249; 50%
day
Does not want
Non handler category; 69; 14%
service
not serviced
regularly
Chemist shops; 2; 0%
Organised Retail

RCS-04-05-06-CombinedJawahir
RCS-04-05-06-Jawahir traders

Low Potential; 6; 2%
Shop Permanently Closed; 2; 1%

not serviced regularly; 1; 0%

Not found; 37;

14% to be added; 26; 10%
Stores
Non handler category; 58; 22%
Already Serviced; 139; 52%

Stores to be
added
Already Serviced
Chemist shops
Non handler
category
Low Potential
Not found
Shop
Permanently
Closed
Closed on the
day
Does not want
service
not serviced
regularly
Organised Retail

RCS-04-05-06- Mahadev
Traders

Non handler category; 57; 35%

RCS-04-05-06-

Stores to be
added
Shop Permanently Closed; 3; 2%

Already Serviced
Chemist shops

Not found;
9%added; 11; 7%
Stores15;
to be
Low Potential; 3; 2%

Non handler
category
Low Potential
Not found

Already Serviced; 72; 45%

Shop Permanently
Closed
Closed on the day
Does not want
service
not serviced
regularly
Organised Retail

RCS-04-05-06- Balaji-Tradelinks
RCS-06-

Stores to be added
Already Serviced

not serviced regularly; 1; 1%

Not found; 24; 17%
Closed on the day; 3; 2%

Chemist shops
Stores to be added;Non
34; handler
24%
category

Low Potential; 3; 2%

Low Potential
Not found
Shop Permanently
Closed

Non handler category; 14; 10%

Closed on the day

Does not want
service
not serviced
regularly
Organised Retail
Already Serviced; 63; 44%

RCS-04-05-06- Pune Cig.

Centre
RCS-PCC-04-05-06
Stores to be added
Already Serviced
Chemist shops
Stores to be added; 101; 19%Non handler
category
Not found; 106; 20%
Closed on the day; 13; 2%

Does not want service; 1; 0%

Low Potential
not serviced regularly;
5; 1%

Shop Permanently Closed; 15; 3%

Already Serviced; 132; 24%

Not found
Shop Permanently
Closed
Closed on the day
Does not want
service

Low Potential; 49; 9%

not serviced
regularly
Organised Retail

Non handler category; 89; 17%

Chemist shops; 28; 5%

RCS-04-05-06- SSD-HADAPSAR
RCS-04-05-06-SSD-Hadapsar

Stores to be added
Already Serviced
Chemist shops
Non handler
category

Low Potential; 3; 4%

Non handler category; 11; 15%

Shop Permanently Closed; 1; 1%

Not found; 11; 15%
Stores to be added; 8; 11%

Low Potential
Not found
Shop Permanently
Closed

Already Serviced; 39; 53%

Closed on the day

Does not want
service
not serviced
regularly
Organised Retail

TOTAL SUMMARY
WD-Point Name
Stores to be added
Already Serviced
WD-Point Name; 243; 14%

Chemist shops

Non handler
category
not serviced
not wantregularly;
service; 8;
2;0%
0%
Not found; 26; 2% Shop Permanently Closed; 37; 2%Closed on the day; 3; 0%Does
Low Potential
Low Potential; 247; 15%
Not found
Non handler category; 91; 5%
Shop Permanently
Closed
Stores to be added; 694; 41%
Closed on the day
Already Serviced; 30; 2%
Does not want
service
Chemist shops; 298; 18%

not serviced
regularly
Organised Retail

SUMMARY
Retail
census
Survey
No.

WD-Point
Name
Rajesh
Traders and
RCS-01-05- Bombay
PCMC
stores
RCS-04-05- Jawahir
06
traders
RCS-04-05- Mahadev
06
Traders
RCS-06

Balaji
Tradelinks

RCS-PCC- Pune Cig.

04-05-06 Centre
RCS-04-0506
SSD
Total

Non
Alrea
handl
Shop
Stores dy
Chemi er
Low Not Permane
to be Servic st
categ Poten fou ntly
added ed
shops ory
tial
nd Closed

not
Close Does
service
d on not
d
the
want
regularl Organise Tota
day service y
d Retail l

63

249

69

27

54

18

26

139

58

37

269

11

72

57

15

161

34

63

14

24

101

132

28

89

49 106

15

13

39

11

243

694

30

298

11

91 247

1
26

0
1

37

1 142
5

1 495

539
0

73

2 1679

Projected Increase In Annual

Turnover After Store Addition
No. of Stores To Be Avg. Turnover Per Month Per Total Avg. Monthly
Added
Store
Turnover
243
1,500.00
3,64,500.00

Total Avg. Annual

Turnover
43,74,000.00

Projected Increase in Avg. Annual Turnover

5,000,000.00
4,500,000.00
4,000,000.00
3,500,000.00
3,000,000.00
2,500,000.00
2,000,000.00
1,500,000.00
1,000,000.00
500,000.00
0.00

50

100

150

200

250

300

ISSUES IDENTIFIED
WD NAME
BALAJI-TRADELINKS

PUNA CIG. CENTRE

JAWAHIR TRADERS

MAHADEV TRADERS
SSD

CRITICAL-ISSUES
Area Ramwadi, not serviced at all- slum area-payment issues- has industry
outlets.

Kothrud depo- Retailers have high resistance to bingo.

Display Payment issues with 2 stores on Sinhagad road.

Old dated stock delivered.

Area Barmashell, not serviced at all- slum area-payment issues- has industry
outlets.

Only main lanes are covered in Tingre nagar, small industry outlets are not
covered.

Many small retailers are not serviced.

Area Sai Baba Nagar and Mitha Nagar not serviced- slum area-has industry
outlets.

Not all stores added to the beat are regularly serviced.

Not all stores added to the beat are regularly serviced.

Areas near Bharat Forge have issues of quantity ordered to that delivered

Not all stores added to the beat are regularly serviced.

Retailers receive stock less than dispatched quantity from WD.

PCMC-RAJESH

TRADING AND BOMBAY

Area- Pawar Nagar not completely covered for Service.

Atta: 5kg packing is short of supply resulting into shift in demand to

SUGGESTIONS
While enrolling a new store- licence number should be entered in the system
so that any occurrence of overdue/absconding retailers can be followed up.
Salesmen incentive structure can be reworked on to motivate them further
to provide better service and expand market.
Increase the supply of 5 kg Packaging of Atta in areas where the population
of nuclear families is more.
The Performance measurement of the distributors can include the number of
outlets and areas that they cater rather than measuring it in terms of sales.
Some arrangements to be made to provide the retailers with the some credit
facility.
Bingo may be repositioned to change customers perception about bingo
and increase acceptance of bingo as a snack.
Some schemas to be introduced in Bingo with toys to attract age group 5 to
12 yrs.
Events can be organised in Organised Retails outlets, Malls to push Bingo
and other food products.

Learnings and Utility

Learnings from the Project:
The project helped in understand the entire process of how the good are transferred from the distributors to the retailers.
It helped in understanding the marketing functions carried out at the distribution level.
The project helped in understanding major competitor for ITC with respect to the 5 major food product categories.
It gave me opportunity to work with the salesman at the grass hood level.
It helped in understanding the strategies used for selling products by the salesman.
It gave ample opportunities to contribute towards the process improvement.
It helped in understanding how various routs and assigned to various salesman to cover the maximum geography.
It helped to learn objection handling at sales level.
Helped in identifying reasons for low penetration of the market in any area.

Utility of the Project:

The Project helped in identification of the outlets which are potential and are not yet serviced by ITC, thereby increasing
the sales potential of the distributors with addition of such outlets to the service list.
The Project gave an opportunity to interact with the retailers directly and helped in identifying gaps in the market with
respect to sales and service.
Daily feedback enabled the distributors to take corrective measures instantly resulting into improved customer relations.
The project helped in overall improvement of Sales and Service for Food Division.

Thank You