sip precentation

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Summer Internship Project "PORTFOLIO EXPANSION AND MARKET EXPLORATION OF PCP CHANNEL AT FOCUSED DISTRIBUTORS OF THALASSERY SECTION" AT ITC LTD, ERNAMKULAM BRANCH KERALA APEEJAY SCHOOL OF MANAGEMENT, NEW DELHI On Corporate mentor: MUHAMMED NASIK Faculty Mentor DR. RAJNEESH MAHAJAN

Transcript of sip precentation

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Summer Internship Project

"PORTFOLIO EXPANSION AND MARKET EXPLORATION OF PCP CHANNEL AT FOCUSED

DISTRIBUTORS OF THALASSERY SECTION"

AT ITC LTD, ERNAMKULAM BRANCH KERALA

APEEJAY SCHOOL OF MANAGEMENT, NEW DELHI

On

Corporate mentor:MUHAMMED NASIK

Faculty Mentor DR. RAJNEESH MAHAJAN

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LEARNING OBJECTIVES OF THE STUDY

• To Identify and understand the service gaps in Iritty market and tapping these outlets

• To Understand the competitors service status in the ITC’s unexplored retile outlets

• To understand Personal Care Product category availability in retile

• To study portfolio expansion in all the Personal Care Product handler retile

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Company Profile• ITC was formed on 24 August 1910 under the name of

Imperial Tobacco Company of India Limited• The earlier decades of the company's activities centered

mainly on the manufacture of tobacco products and their sales.• In the 1970s, it began making a foray into select non-tobacco

businesses• The company was rechristened as the Indian Tobacco

Company Limited in 1970 and further to I.T.C. Limited in 1974. Finally, the periods in the name were removed in September 2001 for the company to be renamed as ITC Ltd.

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Company Profile• One of India’s most Admired and Valuable companies

- Market Capitalisation: over US$ 40 Billion • A USD 8 Billion enterprise by Revenue

- ~58% of Net Revenue from non-Cigarette segments • Leading Fast Moving Consumer Goods (FMCG) marketer in India

- Established several world-class brands in the last 10 years • 10 year Value addition ~ Rs. 2.2 lakh crore (US$ 43 billion) with ~75% accruing

to the Exchequer - Among the top tax payers in the country (Private sector) - Excise payments represent ~7% of Government of India’s total Excise collection

• ITC & its Group Companies employ over 32,000 people directly; supports livelihoods of ~6 million people

• A global exemplar in sustainable business practices - Only Company in the world of comparable dimensions to have achieved the global

environmental distinction of being Carbon positive (10th Year), Water positive (13th Year) and Solid waste recycling positive (8th Year)

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VISION, MISSION AND CORE VALUESVISION• 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.

MISSION• To enhance the wealth generating capability of the

enterprise in a globalizing environment delivering superior and sustainable stakeholder value.

CORE VALUES • ITC's Core Values are aimed at developing a customer-

focused, high-performance organization which creates value for all its stakeholders:

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TRUSTEESHIPCUSTOMER FOCUS

RESPECT FOR PEOPLE

TRUSTEESHIP• As professional managers, ITC conscious that the company has been given

to in "trust" by all the stakeholders. ITC will actualize stakeholder value and interest on a long term sustainable basis

CUSTOMER FOCUS• ITC is always customer focused and will deliver what the customer needs in

terms of value, quality and satisfaction.RESPECT FOR PEOPLE• ITC is result oriented, setting high performance standards for ourselves as

individuals and teams.• ITC will simultaneously respect and value people and uphold humanness

and human dignity.• ITC acknowledge that every individual brings different perspectives and

capabilities to the team and that a strong team is founded on a variety of perspectives.

• ITC want individuals to dream, value differences, create and experiment in pursuit of opportunities and achieve leadership through teamwork.

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EXCELLENCEINNOVATION

NATION ORIENTATION• EXCELLENCE• ITC does what is right, do it well and win. ITC will strive for

excellence in whatever it does.• INNOVATION• ITC will constantly pursue newer and better processes,

products, services and management practices.• NATION ORIENTATION• ITC is aware of its responsibility to generate economic value

for the Nation. In pursuit of its goals, ITC will make no compromise in complying with applicable laws and regulations at all levels.

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ITC’s Business Portfolio

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Personal Care Products of ITC

• Portfolio approach straddling all consumer segments with 4 umbrella brands in the Personal Wash segment

Essenza Di Wills Fiama Di Wills Vivel Superia

• Acquired ‘Savlon’ and ‘Shower to Shower’ in Feb’15 to widen the portfolio of offerings • Complemented by ‘Engage’ brand in the deodorants segment • Products continue to gain consumer franchise • Laboratoire Naturel – A state-of-the-art consumer and product

interaction centre – leveraged to launch unique and differentiated products

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Personal Care: Some recent launches

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My

Rep

ortin

g

stru

ctur

e

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SCOPE OF PERSONAL CARE PRODUCT

SECTOR IN INDIA

• The Indian surfactants market for personal care hinges largely on the expanding middle-class consumer population in the country.

• Indian surfactants market earned revenues of $ 2,278 million in 2013 and estimates this to grow at 13% annually to reach $3,748 million in 2017, approximately.

• The personal care surfactants market is estimated to grow at 23% from 2013 till 2017 and attain $547 million in revenue

• The average Indian consumer has a wider product and price bracket to choose from, which augurs well for the surfactants market for personal care.

• Manufacturers must deliver the best quality at the lowest price to establish a foothold in this domain.

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TOP 10 LISTED PERSONAL CARE PRODUCTS COMPANIES IN INDIA Company Name Company Website• 1 Hindustan Unilever Ltd www.hul.co.in• 2 Dabur India Ltd www.dabur.com• 3 Godrej Consumer Products Ltd www.godrejcp.com• 4 Marico Ltd www.marico.com• 5 ITC Ltd www.itc.com• 6 Colgate Palmolive (India) Ltd www.colgate.co.in• 7 Emami Ltd www.emamiltd.in• 8 P and G Ltd www.pg.com• 9 Gillette India Ltd www.gillette.co.in• 10 Godrej Industries Ltd www.godrejindustries.com

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JOB DESCRIPTION AND FUNCTIONAL

PROFILE

• Ability to work in the field to explore the new market• Having a strong hold on MS office• Skills to maintain database and reporting to the corporate

mentor • Will be responsible for data analytics and should be

comfortable to work and coordinate with team. • Will be responsible for portfolio development • Help and support Distribution Team in field work • Ability to do multi tasks and switch gear while maintaining

priorities and comfortable to work under pressure• Conduct SUMMER Drive for the market exploration and

portfolio development in the Iritty market.• Have a tendency to bring niche Marketing Concept which could

be applied to business.

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INSIGHT LEARNING AND ANALYSIS

• SUMMER DRIVEPhase 1 : Market analysis Phase 2 : Market ExplorationPhase 3 : Portfolio Development

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RESEARCH METHODOLOGY• Problem identification

iritty is the only wholesale dealer under Thalassery section always use to faill all the activity which is said by the company.

• Objective of the study • To Identify and understand the service gaps in Iritty market and tapping

these outlets• To Understand the competitors service status in the ITC’s unexplored retile

outlets• To understand Personal Care Product category availability in retile• To study portfolio expansion in all the Personal Care Product handler retile

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• Source of data Primary data : Filed work, market Survey (survey form) Secondary data : Company data base, Magazines, Books, Internet

• Data collection : Survey form

• Analysis : MS Excel

• Report : MS word

• Sample Size : 346 retile outlet • LIMITATIONS : only one Distribution staff

limited time period of internship

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PHASE 1 : MARKET ANALYSIS

SIFI Outlet covered

Outlet Covered by the DS 155

Outlet which is not Covered by the DS 87

Shutdown outlet 26

[Table number 6.1][Source : Marke survey]

58% (155)42% (87)

10% (26)

Outlet Covered by the DSOutlet which is not Covered by the DSShutdown outlet

SIFI ENROLED OUTLET COVERED BY THE DS

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CLASSIFICATION OF 103 OUTLETS WHICH HAVE NO BILL FOR THE LAST ONE MONTH

103 outlet have no bill for the last one month

Shutdown outlet 26Issue with Undercutting 12Issue with WD 16Hawker supply 23Medical shop 4Bakery Shop 7Other reasons 15

25%

12%16%22%

4%

7% 15% Shutdown outletIssue with Un-dercuttingIssue with WDHawker supplyMedical shopBakery ShopOther resons

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COMPETITION WITH HUL AND THAI GROUP IN IRITTY MARKET

Amount of average bill

HUL 652445.61

ITC 217481.87ASHIQI 123428

HUL ITC ASHIQI0

100000

200000

300000

400000

500000

600000

700000

Amount of average bill

Bill

Am

ount

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MARKET SHARE OF HUL, ITC AND ASHIQI ENTERPRISES

Market Share

HUL 761183.5

ITC 217481.9

ASHIQI 147435

68%

19%

13%

HULITCASHIQI

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PHASE 2: Market Exploration

Under this phase we added 63 new potential outlet

Sl no Name of the outlet Name of the owner Location of the outlet Mobile Number

1 Nova fancy Latheef Iritty 9446204785

2 Krishnan Pala Krishnan Ayyappankavu 8086105754

3 Lidhin Bakery Govindan   9048952599

4 Abirami Store Raveendran Kunnath 9745636365

5 Shine Fance Umesh Mattanur 9447642508

6 Aasi Bakery Mohanan Padiyour 4602273968

7 Family Store Ashraf Blathoor 9446457562

8 General Trading Co Rahees Peravoor 9947273924

9 PK vegetables Purusu Kanichar 8129402897

10 Kurupance Fancy Roy Kelakam 9446672802

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PORTFOLIO AVAILABILITY AFTER PHASE 2

Portfolio item Availability Percentage

25/- Vival 234 77.74 %

Vival AE 192 63.79 %Fiama GBB 52 17.28 %

Savlone 67 22.26 %

Superia 172 57.14 %

Yungglow 190 63.12 %

Deo 132 43.85 %

Fiama TA 125 41.53 %

SH 269 89.37 %

Savlone HW 42 13.95 %

25/- V

ival

Vival

AE

Fiama G

BBSa

vlon

Supe

ria

Vival

Yungg

low Deo

Fiama T

A

Supe

ria SH

Savlo

n HW

0

50

100

150

200

250

300

Num

ber

of o

utle

ts

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PHASE 3 : PORTFOLIO DEVELOPMENT

SCHEME CARD_June – 2016

CategoryBrand/SKU/Price Point

Channel

SlabScheme Details

MRP PTRNet

Retail Rate

Net Marg

in (Reta

il)

Net SWD

Rate

Net Margin (SWD)

Toilet Soap

Fiama GBB 75 Gms

Retail 3-11 Pcs 4% 36 33.3 32.2 3.8 31.7 4.3

Fiama GBB 75 Gms

Retail & SWD

>=12 Pcs 7.69% 36 33.3 31.1 4.9 31.0 5.0

Fiama GBB 125 Gms

Retail 3-11 Pcs 4% 60 51.8 53.6 6.4 52.9 7.1

Fiama GBB 125 Gms

Retail & SWD

>=12 Pcs 7.69% 60 51.8 52.1 7.9 51.6 8.4

Savlon Double

Strength(75+25Gms)

Retail 1--99998% + 1.82%

25 23.2 22.8 2.2 22.8 2.2

Savlon Double

Strength(75+25Gms)

SWD + Conv

> 1 CFC8% +

1.82% + 1.5%

25 23.2 22.8 2.2 22.5 2.5

Savlon Soap 75 Gms

Retail & SWD

<1 CFC8% + 1.82%

22 20.4 20.1 2.0 20.1 2.0

Savlon Soap 75 Gms

SWD >1 CFC8% +

1.82% + 1.5%

22 20.4 20.1 2.0 19.8 2.2

Savlon Soap 75 Gms

Chemist

1--99998% +

1.82% + 2.22%

22 20.4 20.1 2.0 19.8 2.2

Savlon Soap 125 Gms

Retail & SWD

<1 CFC8% + 1.82%

41 38.0 37.4 3.6 37.4 3.6

Savlon Soap 125 Gms

SWD >1 CFC8% +

1.82% + 1.5%

41 38.0 37.4 3.6 36.9 4.1

Savlon Soap 125 Gms

Chemist

1--99998% +

1.82% + 2.22%

41 38.0 37.4 3.6 36.9 4.1

Hand WashSavlon Hand Wash New

220 ml

Retail & SWD

1--9999

7%+Additio

nal Scheme 5.17%

75 67.3 67.3 7.7    

Talc

FDW Talc 125gm Mrp-

70

Retail & SWD

1-3 Pcs NA 70 63.6 63.6 6.4 62.8 7.2

FDW Talc 125gm Mrp-

70

Retail & SWD

4-7 Pcs 2% 70 63.6 62.5 7.5 61.7 8.3

FDW Talc 125gm Mrp-

70

Retail & SWD

8-12 Pcs 3% 70 63.6 62.0 8.0 61.1 8.9

FDW Talc 125gm Mrp-

70

Retail & SWD

13-17 Pcs 4% 70 63.6 61.4 8.6 60.6 9.4

FDW Talc 125gm Mrp-

70

Retail & SWD

18-35 Pcs 6.5% 70 63.6 60.0 10.0 59.2 10.8

FDW Talc 125gm Mrp-

70

Retail & SWD

36 & Above

8% 70 63.6 59.2 10.8 58.4 11.6

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CONTITIONCONTITION

ITEM VERITY

MINUMUM

ORDER

FIAMA

TA 5 ITEMS 5*1

SAVLO

N

3 SOAP 3

HAND WASH 6*1

FIAMA

GBB 3 SINGLES 3*2

Achievement

Incentive

Amount

100% 3000

90-100% 2500

80-90% 2000

70-80% 1500

60-70% 1000

50-60% 500

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Beat ways achievement

BEAT

NAME

FIAMA

GBB TGT

FIAMA

GBB

ACHIEVE

D

SAVLON

TGT

SAVLON

ACHVD

FIAM

A TA

TGT

FIAMA

TA

ACHV

D

MONDAY 40 32 30 26 25 20

TUESDAY 40 30 30 24 25 23

WEDNESD

AY 50 36 50 45 35 29

THURSDAY 35 24 35 35 25 27

FRIDAY 40 29 40 43 30 31

SATURDAY 45 31 45 43 35 25

TOTAL 250 182 230 216 175 155

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PORTFOLIO AVAILABILITY AFTER PHASE 3

Portfolio item Availability

25/- Vival 234

Vival AE 192

Fiama GBB 203

Savlone 248

Superia 172

Yungglow 190

Deo 132

Fiama TA 185

SH 269

Savlone HW 235

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25/- Vival Vival AE Fiama GBB

Savlone Superia Yungglow Deo Fiama TA SH Savlone HW

0

50

100

150

200

250

300

Availability

Num

ber

of O

utle

t

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FINDINGS

• There is a need of one more Distribution Staff for personal care product marketing in Iritty market

• Distribution Staff is not get sufficient time to serve the market , he is get prepacking duty as well.

• Lack of motivation to the employees in iritty whole sale dealer. • There is no proper monitoring of day to day activates.• Communication gap between the company and the retile outlet.

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RECOMMENDATIONS• Adding one more ds in to GR2 channel and covering

100% project explored outlets• WD should try to find new outlets and make

portfolio expiation in Iritty market.• DS should not get prepacking responsibilities, as it

will influence to decrease in the market working time and the daily priorities of ads.

• Manager/WD’s daily follow-up on strict professional ways, by adhering gate-meeting s and instant follow-ups of each activity.

• Unbilled outlets tracking by ds ( 127 outlets were unbilled in APRIL/ 111 outlets were unbilled in MAY)

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• CFT follow-up, market working time and outlet spending time should monitor

• FC & SL outlets target communication and weekly status follow-up and achievement tracking.

• In order to improve the promotional activity WD should invest an extra effort to find the market potential and explore the same.

• Adding chemist and cosmetics outlets in to the market base (Currently 0 outlets in chemist)

• CDM – active contribution assurance.• Handling customer issue should be given prior

concern. Staff should be trained to handle customer quarry.

RECOMMENDATIONS Contd..

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RECOMMENDATIONS Contd..

• Usages of POSM materials (Last month FDW TALC bin allocation was given to 2 outlets in Iritty, so far not implemented/ MEGA full shop drive is active in the section for the last 3 months, still there is not a single outlet is got implemented in Iritty.)

• Company should make sure that there should be no Karnataka product in Kerala market. Undercutting should be reduced as much as it is possible.

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CONCLUSIONFMCG industry in India is one of the fast growing industries in the world. ITC Personal Care Product continues to grow and increase its market share in the HUL and Godrej Indian Personal Care Product industry. Strict compliance standards, fast and effective sales ordering process, flexibility have so far ensured merchandising effectiveness for ITC .

With increasing competition in the personal care product segment, the importance of availability, visibility of personal care product factors are on the rise. This is particularly important in a scenario where even local players are adopting these practices to increase their sales. The study reveals that the availability and visibility ambience in retile handlers are boosting the sales of personal care products. National brands and local brands together are displayed and compete for their market share. In order to increase the sales of ITC , their availability, visibility of product portfolio plays a very influencing role