Retain Census Survey- Audit report

Retail Audit and Market Expansion for Food Division across Pune at ITC LTD. PUNE. By Rohit A. Sarode, Indira Institute of Management, Pune.

ITC LTD

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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,IndiaKey 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 productsRevenue :-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, ChennaiIn 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.

About ITC

The ITC VisionSustain 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 MissionTo enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value

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Core Values

ITC's Core Values are aimed at developing a customer-focused, high-performance organisation which creates value for all its stakeholders:TrusteeshipAs 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 FocusWe are always customer focused and will deliver what the customer needs in terms of value, quality and satisfaction.Respect For PeopleWe 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.ExcellenceWe do what is right, do it well and win. We will strive for excellence in whatever we do.InnovationWe will constantly pursue newer and better processes, products, services and management practices.Nation OrientationWe 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.

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.

Title and Project

ObjectivesPrimary 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 BingoTo identify reason for Bingo not currently being stocked by retailers if any.

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DateResponseidTownidWD NAMEOutlet Name27-05-20140002207211133102Balaji tradelinksMATAJI SUPER MARKET

Street NameLandmarkLocalityMALWADI ROADBAPUJI BUWA RDMALWADI

Pin CodeLandline NumberMobile NumberOutlet Type4110157709482126Grocer

SIFY IDATBICFNDSXServicer1Servicer2Servicer3CC3078YYYYYParleBritaniabalaji,yellow Diamond

Servicer4Servicer5Weekly turnoverMonthly turnoverRemarkLaysNestle500020000continue Service

Below mention Is a Sample of the Data for distributor Balaji Tradelinks- Sinhagad Road, Near Warje Fly-over

Data Tabulation

WD-Rajesh Trading and Bombay Stores

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RCS-04-05-06-Combined- Jawahir

RCS-04-05-06- Mahadev Traders

RCS-04-05-06- Balaji-Trade-links

RCS-04-05-06- Pune Cig. Centre

RCS-04-05-06- SSD-HADAPSAR

TOTAL SUMMARY

SUMMARYRetail census Survey No.WD-Point NameStores to be addedAlready ServicedChemist shopsNon handler categoryLow PotentialNot foundShop Permanently ClosedClosed on the dayDoes not want servicenot serviced regularlyOrganised RetailTotalRCS-01-05-PCMCRajesh Traders and Bombay stores632492692754818221495RCS-04-05-06Jawahir traders261390586372001269RCS-04-05-06Mahadev Traders117205731530161RCS-06Balaji Tradelinks34630143240301142RCS-PCC-04-05-06Pune Cig. Centre101132288949106151315539RCS-04-05-06SSD8390113111073Total243694302989124726373821679

No. of Stores To Be AddedAvg. Turnover Per Month Per StoreTotal Avg. Monthly TurnoverTotal Avg. Annual Turnover243 1,500.00 3,64,500.00 43,74,000.00

Projected Increase In Annual Turnover After Store Addition

ISSUES IDENTIFIED

WD NAMECRITICAL-ISSUESBALAJI-TRADELINKSArea 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.PUNA CIG. CENTREArea 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.JAWAHIR TRADERSArea Sai Baba Nagar and Mitha Nagar not serviced- slum area-has industry outlets.Not all stores added to the beat are regularly serviced.MAHADEV TRADERSNot all stores added to the beat are regularly serviced.Areas near Bharat Forge have issues of quantity ordered to that deliveredSSDNot all stores added to the beat are regularly serviced.Retailers receive stock less than dispatched quantity from WD.PCMC-RAJESH TRADING AND BOMBAY STORESArea- Pawar Nagar not completely covered for Service.Atta: 5kg packing is short of supply resulting into shift in demand to Samarth.Old dated stock supplied for Atta in some areas.For chips(sx) : Leher seems to be an emerging competitor in PCMC area.

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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.

SUGGESTIONS

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.

Learnings and Utility

Thank You