MANUFACTURER-RETAILER

RELATIONSHIPS OF ITC LIMITED

GROUP 6-
MALKA NASIM
PRIYA BHATTACHARYA
 ELEMENTS OF RETAIL DESIGNING
Parking
Frontage Location
and
entrance

Building Location
Arch

Safety STORE DESIGN Access

Store Theme

Target Merchandise
Customers mix
 FACTORS UPON WHICH MANUFACTURER-RETAILER RELATIONSHIPS IS
DEPENDENT
Retailers are part of distribution channel, so manufacturers (wholesalers) of ITC
LIMITED are concerned about:
• Caliber of displays
• Customer service
• Store hours
• Retailer‘s reliability as business partners
• Retailers are also major customers of goods & services for resale, store fixtures,
computers, management consulting ,& insurance

Retailers and supplier of ITC Limited have different priorities on:

Control over distribution channel
• Profit allocation
• No. of competing retailers handling supplier‘s products
• Product display
• Promotion support
• Payment terms Operating flexibility ISB&M Retail Management
 PERFORMANCE MEASURE OF DISTRIBUTION HEALTH
MEASURES
SIFY -25 / Non SIFY – 20

The data for all measures within distribution will be picked up from SIFY
centrally

• Increase distribution depth across categories

Key Imperatives Special focus on increasing Range sales - Pens and
GB
 Distribution Health Measure – SIFY WDs
Focus Category Handlers - Total Bills Cut

1.CM (8)
2. Saathi (4) Brand Model
3. Pens (5)
4. GB (4)
Bills Cut
as % of >=150% 100-150% <100%
outlet
Bill Cut
universe
Qualifie
Pens, NB 100% Prorated Score 0 r CM Saathi Pens GB

Bills Cut as Value

% of outlet >= 80% 60-79% <60%
universe
(Rs.) 300 100 60 60

GB, Saathi 100% Prorated 0

Score
 Distribution Health Measure – SIFY WDs

• No. of outlets unbilled in cumulative 2 month period to be evaluated –

Weightage is 4 – Unbilled Outlets

%Achievement Score
<=10% 100%
10% - 20% 90%

20% - 30% 80%

>30% 0%

WD to be evaluated monthly for the corresponding previous 2 months

period Final score is average of monthly scores
 Distribution Health Measure – Non SIFY WDs
Focus Category Handlers
1. CM (7)
2. Saathi (3) BAND
MODEL
3. Pens (7)
4. GB (3) Category No. of Minimum
variants Qty.
CM At least 1 120 Pc
Weeks >= =60% <60%
handle 80% Saathi At least 1 120 pc
d Pens 4 400 pc
Score 100% Prorate Score 0
d GB 2 20 pc

WD should sell expected variants of focus

categories for a given week. If it happens score
is 1 for the week or else 0
 Distribution Health Measure – Scoring Example
SIFY WDs
Categ Base Meas Ratio Max Score
WD got 0 score in GB since his ratio was
ory ure Score =150%, Saathi & Pens score is prorated
Servic since TBC is >60% and 100% respectively
e re Unbilled is full score since it is
CM 300 465 155 8 8
%
Non SIFY WDs
Pens 300 345 115 4 3.07
% Cate W1 W2 W3 W4 W5 W6
gory
Saat 300 198 66% 5 4.13
hi CM 5 4 6 3 2 5

GB 300 123 41% 4 0

Saat 3 2 3 1 0 4
hi
Unbi 300 11 4% 4 4
lled Pens 4 4 4 4 2 5

25 19.2 GB 0 2 0 2 4 3

Category wise variants Sold