1 | P a g e

I MP L E ME N TAT I ON OF R A A N D C L O
P R OGR A M
I TC LTD.




Industry Guide: Ms. Muffadal Hussain


Submitted in partial fulfillment of the Post Graduate Programme in Management at
TAPMI, Manipal by:

Name: Harsh Sultania
Roll No: 13321
Batch: 2013-15
Date:26/5/2014







M I P S U M M E R P R O J E C T R E P O R T
T A P M I , M A N I P A L , K A R N A T A K A - 5 7 6 1 0 4


2 | P a g e

ACKNOWLEDGEMENT

The summer internship experience at ITC Limited has been extremely fruitful and the
credit for the same goes to a number of individuals who have been instrumental in
making my project a success.
Firstly I would like to thank my project guides Mr. Muffadal Hussain, and Mr.Santanu
Bhattacharjee for taking out time from their busy schedules to provide me with
valuable inputs throughout the project. Next, I want to extend my heartfelt gratitude to
Mr. Deepak G.N, Assistant HR manager, for proving me the opportunity to work with
ITC Ltd
I would also like to extend my gratitude to, Mr. Gopal Rana, Mr. Ananda,
Mr.Jagannat and all others area supervisors who went out of their way in illustrating
various operations, arranging visits and enhancing my learning. They have all made
my stay here so much more meaningful.
I feel privileged to have come in contact and worked alongside such wonderful
people. I would attribute a fair share in the completion of this project to their constant
motivation and patient hearing.


3 | P a g e


TABLE OF CONTENT
1) EXECUTI VE SUMARY
2) ABOUT I TC LTD
3) PROJECT BACKGROUN
I ) PROJECT OBJECTI VES
I I ) PROJECT SCOPE
I I I ) METHODOLOGYFOLLOWED
4) METHODOLOGY
I ) SECONDARY RESEARCH
A) OBSERVATI ONS
I I ) MARKETI NG RESEACRCH
A) OUTLET QUESTI ONNAI RE FORM
B) FEEDBACK FROM RESPONSES
C) FI NDI NG AND ANALYSI S
5) I NDUSTRY ANALYSI S
6) PERSONAL CARE PRODUCT
7) PRODUCT PRI CES AND SCHEMES
8) LOYALTY PROGRAMS
9) I NCENTI VES TO DI STRI BUTOR SALES PERSONNEL
10) WORK DONE
I ) I MPLEMENTATI ON OF RA OUTLETS
I I ) I MPLEMENTATI ON OF CLO PROGRAMS
A) ACKNOWLEDGMENT FORM
B) OUTLET COVERED
C) OBSERVATI ON AT DI STRI BUTOR POI NT
D) WORK AT RETAI L OUTLETS
E) SCHEMES AND PROGRAMS RUN BY COMPETI TORS
11) LI MI TATI ONS
12) CONCLUSI ON





4 | P a g e

EXECUTI VE SUMMARY
Implementation of RA and CLO Program
ITC LTD
Harsh Sultania
26/5/2014


My project revolved around implementation of loyalty project run by ITC Ltd.
At first I was into implementing of RA (Retail Architect). I worked in 28 outlets in
different areas of Kolkata. My work in those outlets was to negotiate for a hotspot and
see that the merchandiser takes the proper measurement and gives all the things
negotiated for. I also did a survey on the factor affecting the purchase of deodorant
and competitor analysis.
After the work on RA outlets was done, I was given a list of outlets under 3
distribution point for implementation of CLO (Category Leadership Outlets) outlets.
In these outlets an acknowledgment form had to be singed and submitted to Area
Executive for implementation of the display. In those outlets I also did competitor
analysis as to what schemes, incentives and loyalty program competitors are
currently running.
During my work in those outlets I also learned about sales and distribution process.









5 | P a g e

About ITC LTD

ITC is one of India's foremost private sector companies with a market capitalization
of nearly US $ 18 billion and a turnover of over US $ 5.1 Billion. ITC is rated among
the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable
Companies by Forbes magazine, among India's Most Respected Companies by
Business World and among India's Most Valuable Companies by Business Today.
ITC also ranks among India's top 10 `Most Valuable (Company) Brands', in a study
conducted by Brand Finance and published by the Economic Times.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty
Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information
Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other
FMCG products. While ITC is an outstanding market leader in its traditional
businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is
rapidly gaining market share even in its nascent businesses of Packaged Foods &
Confectionery, Branded Apparel, Personal Care and Stationery.
ITC employs over 24,000 people at more than 60 locations across India. The
Company continuously endeavors to enhance its wealth generating capabilities in a
globalizing environment to consistently reward more than 3, 83,000 shareholders,
fulfill the aspirations of its stakeholders and meet societal expectations. This over-
arching vision of the company is expressively captured in its corporate positioning
statement: "Enduring Value For the nation For the Shareholder."
ITC Ltd is one of India's premier private sector companies with diversified presence
in businesses such as Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Packaged Foods & Confectionery, Information
Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG
products. Presently, ITC has a market capitalization of nearly US $ 15 billion and a
turnover of over US $ 4.75 billion. It employs over 21,000 people at more than 60
locations across India. ITC has been rated among the World's Best Big Companies,
Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine,
among India's Most Respected Companies by Business World and among India's
Most Valuable Companies by Business Today.

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco
Company of India Limited'. ITC had a humble beginning and in the initial days it used
to operate from a leased office on Radha Bazar Lane, Kolkata. On its 16th birthday
on August 24, 1926, ITC purchased the plot of land situated at 37, Chowringhee,
(now renamed J.L. Nehru Road) Kolkata. Two years later companies headquarter
building; 'Virginia House' came on that plot. Progressively the ownership of the
company Indianised and the name of the Company were changed to I.T.C. Limited in
1974. In recognition of the Company's multi-business portfolio encompassing a wide
range of businesses, the full stops in the Company's name were removed effective
September 18, 2001 and the Company was rechristened as 'ITC Limited'.


This project aims to study about ITC Bingo snacks and its distribution strategies. The
project provides information about the various procedures followed by ITC with
respect to distribution chain function, and client management.


6 | P a g e

With the fast growing retail industry in India, competition has increased between the
major market players. Companies are continually trying to engage and construct
innovate ideas to service this market.

The project includes a mix of observation, interview and questionnaires with scales.
Initially a period of 4 weeks was dedicated to fieldwork under the guidance of area
executives of ITC limited. An effort was made to understand the various servicing
procedure, the typical areas/locality and classes of customers.

Regular interaction was done with retailers and distributors about the response and
flow of product respectively. Through this it makes easy to understand the process of
distribution.

A week was dedicated to collect information of Frito-Lays regarding their marketing
strategy, Distribution Network and Other Useful Information from the company
officials. This project also includes my observation at retail outlets.

ITC is involved in following businesses:

Cigarettes: ITC is the market leader in cigarettes in India and has a wide range of
popular brands such as Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut,
Scissors, Capstan, Berkeley, Bristol and Flake in its portfolio.

Packaging: ITC's Packaging & Printing Business is the country's largest convertor of
paperboard into packaging. It was set up in 1925 as a strategic backward integration
for ITC's Cigarettes business. It offers a variety of value-added packaging solutions
for the food & beverage, personal products, cigarette, liquor, cellular phone and IT
packaging industries.

Hotels: ITC entered the hotels business in 1975 with the acquisition of a hotel in
Chennai, which was rechristened Hotel Chola. Today ITC-Welcomgroup with over 70
hotels is one of the foremost hotel chains in India.

Paperboards: In 1979, ITC entered the Paperboards business by promoting ITC
Bhadrachalam Paperboards. ITC's Paperboards business has a manufacturing
capacity of over 360,000 tonnes per year and is a market leader in India across all
carton-consuming segments.

Greeting, Gifting & Stationery: ITC's stationery brands "Paper Kraft" & "Classmate"
are widely distributed brands across India. The Paperkraft designer stationery range
consists of notepads & multi subject notebooks in hard, soft covers & multiple binding
formats including spirals, wires etc. ITC's Greeting & Gifting products include
Expressions range of greeting cards and gifting products.

Safety Matches: ITC's brands of safety matches include iKno, Mangaldeep, VaxLit,
Delite and Aim. The Aim is the largest selling brand of Safety Matches in India. ITC
also exports premium brands to markets such as Europe, Africa and the USA.

Aggarbattis: ITC has launched Mangaldeep brand of Aggarbattis with a wide range
of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini,
Anushri, Ananth and Mogra. Mangaldeep is also being exported to USA, UAE,
Bahrain, Nepal, Singapore, Malaysia, Oman and South Africa.

Lifestyle Retailing: ITC entered the Lifestyle Retailing business with the Wills Sport
range of international quality relaxed wear for men and women in 2000. The Wills

7 | P a g e

Lifestyle chain of exclusive stores later expanded its range to include Wills Classic
formal wear (2002) and Wills Club life evening wear (2003). In 2002, ITC entered into
the popular segment with its men's wear brand, John Players. In 2005, ITC
introduced Essenza Di Wills, an exclusive line of prestige fragrance products.

Food: ITC made its entry into the branded & packaged Foods business in August
2001 with the launch of the "Kitchens of India" brand. In 2002 it expanded into
Confectionery, Staples and Snack Foods segments. ITC's brand in Food category
includes: Kitchens of India, Aashirvaad, Sunfeast, Mint-O, Candyman, and Bingo!

Agri Exports: ITC's International Business Division (IBD) is the country's second
largest exporter of agri-products. ITC exports Feed Ingredients (Soyameal), Food
grains (Rice, Wheat, and Pulses), Coffee & Spices, Edible Nuts and Marine Product

E-choupal: The e-Choupal model of ITC has been very effective in tackling the
challenges posed by the unique features of Indian agriculture, characterized by
fragmented farms, weak infrastructure and the involvement of numerous
intermediaries.




ITC Limited - SWOT Analysis

Strength ------- Brand & Management
Weakness ------- Unrelated diversification.
Opportunity ------- Rural market and e-choupal.
Threats ------- 1) Increasing tax in cigarettes
2) Health hazard













8 | P a g e

PROJECT BACKGROUND

Project Objective:

To increase ITCs presence in the small retail outlets
To understand competitors offering to these outlets



Project Scope:

To work on visibility of product
To understand how much display and incentives help in sales
To understand the problem faced by the retailers
To work on sales and understand the distribution network

Methodology Followed:

Secondary Research
Market visits
Market Research
Competitors analysis


























9 | P a g e

METHODOLOGY
1) Secondary Research
The first stage of project involved secondary research for better understanding of
deodorant industry. Through secondary research got an idea of the key competitors,
understanding the market share and their advertisements and promotion and also
pricing
Observations
Prices of different Deodorant in India
Fogg - Rs.180
Park Avenue Rs.185
Axe Rs.165
Wild Stone Rs.160
Deodorant Market in India
India is a Sub Tropical Country and Deodorant is a Crucial Grooming Product
here
Market has grown from 103 Cr in 2003 to 1520 Cr in 2013
With a current growth rate of 39% in next 9 years, 85% urban and 15% rural
citizen would be using deodorant
Changing socio economic fabric and women empowerment are major factors
for Deodorant revolution
Deodorant predominantly a male grooming product, but expansion into the
women segment underway




10 | P a g e

PESTLE Analysis of Deodorant Industry
Political : Controversial advertisements of deodorant regularly subjected to
criticism by politicians
Economic : Poor economy leads to unemployment which further leads to fall
in consumption of deodorants
Social : With change in lifestyle and increase in personal disposable
income, people tends to focus tend to focus more on hygiene and therefore
increase deodorant consumption
Environment: Deodorant contains Aluminium which can lead to cancer and
Alzheimers disease.
Legal : Misleading ads by deodorant companies attract court cases


Market Share before launch of Engage



Market Share after launch of Engage

Fogg -13%
Axe 8%
Park Avenue - 8%
Wild Stone 7%
Engage 5%
Set Wet 4.5 %
Spinz 4%
Nivea 4%

11 | P a g e


Competitor Analysis









2) Marketing research through primary data collection
The next step included collection of data from the retailers regarding the buying
behaviour of deodorants and also about satisfaction and dissatisfaction of retailers.
A questionnaire was prepared and data from around 150 outlets was collected.

12 | P a g e

Outlet Questionnaire Form
Outlet name: ...................................................
1) How many and of which brands deo do you sale?
__________________________________________________________________
2) Which deo most of the customers demand, in order of their preferences?
__________________________________________________________________
3) What does a consumer look for?
a)Price b) smell c) size d) stay e)others
4) Does price play any significant role in Engage deo purchase?
Yes: ( ) No: ( ) Sometime: ( )
5) Are other competitors products offering any scheme?
Yes: ( ) No: ( )
6) Name of the brands and their respective offers?
___________________________________________________________
___________________________________________________________
___________________________________________________________
7) Do customers carry any pre-conceived idea about Engage deo, or they make their
decision at the shop?
Pre-conceived idea: ( ) Decision at the shop: ( )
8) Which category of deo is gaining more demand?
Male: ( ) Female: ( ) Both: ( )
9) Does the scheme offered by the company create impact on the sales?
Very much : ( ) Significant : ( ) Not much : ( ) Not at all : ( )
10) Are the customers happy with the fragrance?
Yes: ( ) No: ( ) Cant say: ( )
11) Do the customers also buy the product after watching TV ads or having friends
influence?
TV ads: ( ) Friends influence: ( ) Cant say: ( )
12) Which age-group of customers mostly buy the deo?
9-15: ( ) 16-25: ( ) 26-35: ( ) 35 above: ( )
13) How much is the display helpful in making sale?
Very much : ( ) Good : ( ) Average : ( ) Poor : ( )
14) What is the overall response of the customers towards Engage deo?
Excellent : ( ) Good : ( ) Average : ( ) Poor : ( )






13 | P a g e

The questionnaire was filled while working on the implementation of for RA and CLO
outlets. The feedbacks from the responses are represented graphically:



92
58
Role of price
Significant
Not Significant
17
56
71
6
Important Factors
Price
stay
Fragnance
size

14 | P a g e




37
51
62
Category
Male
Female
Both
60
90
Pre-concieved idea
Yes
NO

15 | P a g e



:
8
77
54
11
Age Group
13-17
18-25
26-35
35+
21
94
32
3
Role of Display
very much
good
average
poor

16 | P a g e




Schemes offered by the company: Most of the Dealers are happy with the schemes
offered by the company. The margin on Engage is better than the other deodorants.
Customer Satisfaction: Most of the Customers are happy with the fragrances and
they are repurchasing the Deo.
TV ads: TV ads act as a very important driver for increasing sale of deodorant






35
95
20
Response
very good
good
average
poor

17 | P a g e

Findings from the research:
Price is not a very important factor for purchase of deodorants as compared
to smell and stay.
The advertisement of engage fails to connect with the Indian population.
There is a lack of catchy tagline.
Fogg is the maximum demand for its ad and its tagline no gas, only liquid
Display is helpful in increase in sale.
Retailers needs to be happy with company as sale also depends on dealer as
60% customers decides in the shop itself.
Dealers are not happy for the delayed payment for the display.

Schemes Offered by other Companies

AXE:
Buy 12 and get one free
Buy 24 and get 2 free
Buy 48 and get Rs 20 off in all the 48 pieces
Display amount Rs. 350

Wild Stone:
Buy 8 and get 1 free
Buy 24 and get 3 free
Buy 48 and get Rs. 800 less on bill
Display amount Rs.500

Park Avenue:
Buy 12 and get 1 free
Buy 24 and get 2
Buy 24 get Rs 350 discount
Buy 48 get Rs. 500 discount

XLR8:
Buy 500 pieces and get a music system free
Buy worth Rs. 100000 and get a laptop free with a INOX ticket with each
deodorant for customer and in each ticket dealers gets Rs. 30

Nivea paying display amount of Rs. 800






18 | P a g e

INDUSTRY ANALYSIS
Fast Moving Consumer Goods (FMCG) as products that have a quick shelf turnover,
at relatively low cost and dont require a lot of thought, time and financial investment
to purchase. Fast Moving Consumer Goods is a classification that refers to a wide
range of frequently purchased consumer products

Indian FMCG Sector
The Indian FMCG sector is the fourth largest in the economy and has a market size
of US$13.1 billion. Well-established distribution networks, as well as intense
competition between the organized and unorganized segments are the
characteristics of this sector. FMCG in India has a strong and competitive MNC
presence across the entire value chain. It has been predicted that the FMCG market
will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class
and the rural segments of the Indian population are the most promising market for
FMCG, and give brand makers the opportunity to convert them to branded products.
Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in
India, have low per capita consumption as well as low penetration level, but the
potential for growth is huge.

The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid
urbanization, increased literacy levels, and rising per capita income.
The big firms are growing bigger and small-time companies are catching up as well.
According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned
Household
Care
Personal Care Food &
Beverages
Fabric wash
(laundry soaps and
synthetic
detergents)
Household cleaners
(dish/utensil
cleaners, floor
cleaners, toilet
cleaners, air
fresheners,
insecticides and
mosquito
repellents, metal
polish and furniture
polish)
Oral care
Hair care
Skin care
Personal wash (soaps)
Cosmetics
Toiletries
Perfumes
Deodorants
Feminine hygiene
Health beverages
Soft drinks
Staples/cereals
Bakery products
(biscuits, bread,
cakes)
Snack food
Chocolates
Ice cream
Tea & Coffee
Processed fruits &
vegetables
Dairy products
Bottled water
Branded flour
Branded rice
Branded sugar
Juices

19 | P a g e

by MNCs, and the balance by Indian companies. Fifteen companies own these 62
brands, and 27 of these are owned by Hindustan Lever. Pepsi is at number three
followed by Thums Up. Britannia takes the fifth place, followed by Colgate (6), Nirma
(7), Coca-Cola (8) and Parle (9). These are figures the soft drink and cigarette
companies have always shied away from revealing. Personal care, cigarettes, and
soft drinks are the three biggest categories in FMCG. Between them, they account
for 35 of the top 100 brands.
Exhibit I
THE TOP 10 COMPANIES IN FMCG SECTOR
S. NO. Companies
1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestl India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble
10. Marico Industries

The companies mentioned in Exhibit I, are the leaders in their respective sectors.
The personal care category has the largest number of brands, i.e., 21, inclusive of
Lux, Lifebuoy, Fair and Lovely, Vicks, and Ponds. There are 11 HLL brands in the
21, aggregating Rs. 3,799 crore or 54% of the personal care category. Cigarettes
account for 17% of the top 100 FMCG sales, and just below the personal care
category. ITC alone accounts for 60% volume market share and 70% by value of all
filter cigarettes in India.

The foods category in FMCG is gaining popularity with a swing of launches by HLL,
ITC, Godrej, and others. This category has 18 major brands, aggregating Rs. 4,637
crore. Nestle and Amul slug it out in the powders segment. The food category has
also seen innovations like softies in ice creams, chapattis by HLL, ready to eat rice
by HLL and pizzas by both GCMMF and Godrej Pillsbury. This category seems to
have faster development than the stagnating personal care category. Amul, India's
largest foods company has a good presence in the food category with its ice-creams,
curd, milk, butter, cheese, and so on. Britannia also ranks in the top 100 FMCG
brands, dominates the biscuits category and has launched a series of products at
various prices.
In the household care category (like mosquito repellents), Godrej and Reckitt are two
players. Goodknight from Godrej is worth above Rs 217 crore, followed by Reckitt's
Mortein at Rs 149 crore.

Outlook
There is a huge growth potential for all the FMCG companies as the per capita
consumption of almost all products in the country is amongst the lowest in the world.
Again the demand or prospect could be increased further if these companies can
change the consumer's mindset and offer new generation products. Earlier, Indian

20 | P a g e

consumers were using non-branded apparel, but today, clothes of different brands
are available and the same consumers are willing to pay more for branded quality
clothes. It's the quality, promotion and innovation of products, which can drive many
sectors.



























21 | P a g e

Personal care product: -
ITC launched an exclusive line of prestige fine fragrances under the Essenza Di
Wills brand in mid-2005. The Essenza Di Wills range of perfumes reinforces ITCs
tradition of bringing world-class products to Indian consumers to enrich the quality of
their lives.
Essenza Di Wills embodies a fine balance between the classic and the
contemporary. The brand personifies exclusivity, innate style, sophistication and
magnetism.
The Essenza Di Wills line has been developed with the assistance of French
perfumery experts to give it the mystique and premium luxury quality that go with the
best of international brands.
The latest addition to the Essenza Di Wills portfolio
is the Aqua range for men (Aqua Home) that offers
a distinctive and fresh aquatic fragrance. The Aqua
range includes an After-Shave Lotion, a Deodorant,
a Hair & Body Shampoo and a Bathing Bar.
In September 2007, ITC launched Fiama Di Wills,
a premium range of personal care products comprising
shampoos, conditioner, shower gels and soap. This premium range is a unique
blend of nature and science that promises gentle effective care. It is an outcome of
4 years of extensive research and development by experts at ITC R&D Centre. The
packaging for all Fiama Di Wills products has been developed by a leading
European design firm and the fragrances have been developed by an international
fragrance house in France.

Fiama Di Wills Shampoos developed in collaboration with Cosmetech
Labs Inc., USA, offers a range of four variants. Each variant is designed to
deliver a specific hair benefit to the consumer
The Fiama Di Wills range of soaps has been launched under the sub - brand Skin
Sense. The first variant to be introduced in this range is Soft Green.
This is a gentle caring soap, which helps enhance retention of skin
proteins making skin look beautiful and youthful. Following the
successful launch of Fiama Di Wills Shampoos and Shower Gels, ITC
has now introduced Fiama Di Wills Soaps, which offer the benefit of
gentle and effective care by combining elements of nature and science.








22 | P a g e

Product prices and various Schemes
Engage Deodorant
Purchase Scheme
Net
Rate
MRP
1-3 Units 5% on Bill 125.57 160
4-7 Units 8% on Bill 121.6 160
8 Units 8+1 117.49 160
21 Units 21+3 115.65 160
36 Units 36+6 113.26 160

Vivel
Product Rate Scheme Net rate MRP
Rs.10 Vivel All Variants 8.89
2% discount on purchase of
48 8.7122 10
Vivel FV Carton 125 Gms 22.22 NA 22.22 24
Vivel 100 g 20.37 NA 20.37 23
Vivel 100g*4 74.07 NA 74.07 85
Vivel 100g*3 58.33 NA 58.33 63
Vivel 75 g 18.52 NA 18.52 20
Vivel 75g*4 64.81 NA 64.81 70

Fiama Di Wills
Product Rate Scheme Net Rate MRP
FDW 75g 29.63 NA 29.63 32
FDW 125g 50 NA 50 54
FDW 125*3 144.44 NA 144.4 156
FDW shower Gel 138.89 11+1 127.3158 145






23 | P a g e

LOYALTY PROGRAMS
Retail Class B :- Retailers qualified to sell ITC products

SL Qualified: - Shubh Labh Qualified Retailers are the ones who make a
purchase of the Rs 35000 every month to become wholesalers. This includes
purchase of every division excluding popular atta (plain atta).

FC Qualified:-First Club Qualified Retailers are the ones who have to make a
purchase of Rs 12000 every month. On every purchase, for Rs 250 they earn
one point and after the target is achieved they earn one point for Rs 225.
These points can be redeemed after a period of 3 months by the way of
purchasing ITC goods without cash. These retailers are provided with the
facilities of display and Star SQ points.

CLO: - Category Leading Outlet. This program involves the facility of display
and when the retailers achieve certain targets stated by the company, they
are provided with 3% discount on the total bill of 3 months. CLO has 3
categories.
i) CLO Premium : Last 6 months average PCP sales > Rs. 1000
ii) CLO Popular Soaps : Last 6 months average PCP sales > Rs 750
iii) DEOCLO : last 3 months average deodorant sale > Rs. 800

RA: - Retail Architect. This program involves the facility of display but with a
higher amount than CLO outlets. In these outlets a third party comes and
does the designing for shelves selected for display. This program is only for
cosmetic stores.


INCENTIVES TO THE DISTRIBUTOR SALES PERSONNEL
An incentive of Rs 100 per day for a minimum of 10 bills cut is provided to the
DS.
An incentive of Rs 75 per day for a minimum of 120 lines cut is provided to
the DS.
In case of Bingo Rs 60 per day for a minimum of 8 bills cut is provided to the
DS and additional of Rs 10 per bill for more than 8 bills.
Overall target achievement-
90% achievement:- Rs 1800
95% achievement:- Rs 2400
100% achievement:- Rs 3000

24 | P a g e

Work DONE
Implementation of RA outlets:
First 10 days were devoted for implementation of RA at 30 cosmetic outlets.
In those outlets negotiation for the best spots available was done. Certain loopholes
where also found during that stage.

Name of outlet No of
shelves
Measurement Remarks
New Sovanalaya 2 Done Not a good spot
KK & sons 1 Done Bad spot(negotiation
going on)
Chandra Stationary 1 Done Ok
Cosmetic center Not done No space
provided(no timely
payment)
Amrita stores 1 Done Good
Variety corner 1 Done Ok
Ladies corner
Rajlaxmi stationers 1 Done Ok
New Rakamari stores Not done No display
New city variety Not done Recommended for
DA outlet
Rani stores 1 Done Current spot is not
good. Asked the
dealer to negotiate
for a better spot
Rupango(J) 1 Done Same
New Rupango 1 Done Same
Nandanik 2 Done Ok
Maa kali stores 1 Done Good
Rupangan 1 Done Ok(no other place
available)
Barsha cosmetics 1 Done Good
Basanti M.S 2 Done Good
Ghose cousin variety 1 Done Ok
Fancy stores 2 Done Good
Jugal & co. 1 Done Ok
Sweet emporium 1 Done Ok
Minerva stores 1 Done Good
Jaiswal stores Not done Currently not a outlet
S lal & shaw 2 Done Good
Nu sweet emporium 1 Done Not good(no other
spot available)
Super store 1 Not done Space not available

Find Below, pictures of some stores and the negotiated shelves:


25 | P a g e


Jugal & Company


S. Lal & Shaw

Fancy Stores

26 | P a g e

Implemenation of CLO Program
For CLO program to be implemented the following Acknowledgment Form was need
to signed by the shop owners, following which the merchandiser which would come
set up the display.

Acknowledgement for Display Acceptance
For office use only
WD Name & Code
Sify ID
Loyalty Type CLO PCP ________________________________ (Plz specify type e.g. DEO & Popular)

Date: _________________
To,
Store Name: ________________________________
Address: ___________________________________
Dear Sir,
As per your consent this is to confirm that the display as mentioned below will be put up in your store by the
merchandiser in next 30 days.
Please note that the display should have Backing sheet, Shelf Strip & Presence of agreed products all the time to
entitle you to receive the display amount as mentioned below:
Details Display Details
No of Agreed Shelves for Display
Brands For Display
Display Amount

Kindly confirm the above by signing this document.
________________________________
________________________________
(Name and Sign of Shop owner) (Name and Sign of
DS/TL)


Acknowledgement of Display Completion
Date of Acknowledgement Received by PPMS OM/OE: ________________
Date of Display Completion by Merchandiser: ________________________

I acknowledge the installation of the above display to my satisfaction.

27 | P a g e

__________________________ ____ __________________________
(Name and Sign of Shop Owner) (Name and Sign of Merchandiser)

Process Note for Display Negotiation & Implementation:
1. Display Negotiation with the outlet: AE/WD TL/DS will negotiate the display space
at the outlets basis the potential outlets list provided by the HO team & will get an
acknowledgement (as attached) sign from the outlet owner. Please ensure that
displays should be taken only at Hot spots. AE/WD/TL will mark the space
negotiated for display with permanent marker so that merchandiser should be able
to identify the same.
2. Communication for Display implementation to PPMS team: AE will hand over the
acknowledgement to the respective PPMS OM/OE or the supervisor every Saturday
for implementing the display at the outlets.
3. Display Implementation by PPMS Merchandiser: After receiving negotiation
acknowledgement PPMS will put up a receipt date on the acknowledgement form &
execute the display within next 30 days. After putting up the display he will report to
his respective incharge & will hand over the slip to his incharge.
4. Merchandiser actionable in case of no permission by outlet: If outlets refuse for
display implementation then merchandiser will try to resolve the issue with the help
of the person who has negotiated the display at the outlet. If even after this
intervention, the merchandiser fails to put up the display then he will share the date
of visit & reasons for non-implementation of display at the outlets with his
respective supervisor once a week.
5. Data base updation by PPMS: The data base of receipt forms will be updated by
PPMS backend team at their 8 branch offices & will be collated at PPMS head office
& will be sent to ITC HO as per agreed frequency. Respective PPMS OE/OM will also
share a weekly or fortnightly update on display implementation with issues if any
with ITC branch teams as per agreed dates.










28 | P a g e

Outlets covered
Outlets under 4 distribution houses where covered
1) Gopal Enterprise (Belgoria) -272 outlets
2) Anil Bhusan and Mitra (Shyambazar) - 94 outlets
3) Subhas Trading Company (Saltlake) - 69 outlets
OBSERVATION AT DISTRIBUTION POINT

Wholesale Dealer Operations
ITC has various distributors as per area/regions who follow the chain of transferring
the products to their clients. These distributors are independent proprietors/ partners
who are the mediators between the company and the customer. Apart from the basic
relation of a mediator, the distributor plays a very important role as it passes
consistent raw information as to which product is performing in the market.

Order taking process
The order taking process starts from the customer point from where a Purchase
Order (P.O.) is sent directly to the distributor of ITC via salesman.

Delivery process
The Delivery process starts after the goods are been loaded in trucks and are ready
to move towards clients' stores.



Cash via salesman



System Loading
Ordering
Process
Delivery
Process Print out


Cash
Delivery person



Cash or Credit




Damaged policy
The company accepts manufacturing defects and damaged goods. These damaged
goods are returned to the company after the inspection done by the distributor.
Purchase Order from Client
Wholesale Dealer
Booking the Order
Load slip
Retail outlet
Company

29 | P a g e



Cash/Credit Management
One of the most important decisions a distributor has to take is about cash /credit
management. Cash management includes effectively managing working capital. The
use of Working is the highest in distribution when it comes to any form of business.
There is high amount of money blocked in working capital throughout the year, which
is very risky. The basic way at which this distributor managements the cash is by
regularly following up accounts receivable.
Credit management is the sole of this business as all clients / customers demand for
longer credit days as even there working capital is blocked till the end users do not
purchase the goods. Credit policy is designed as per the trade of terms policy of ITC.
This policy is designed categories wise.


WORK AT RETAIL OUTLETS:
1) To check the availability of products.
2) To check visibility of products.
3) To check how old the product is.
4) To trace the complaints regarding the product.
5) Identifying what would the factor to increase sale.
6) To select best place for display and maximum visibility
7) To understand what schemes and programs competitors are running












30 | P a g e

Gopal Enterprise
Gopal Enterprises have 6 salesmen under it and 30 markets. Each salesman has 5
markets under which he covers every day. Thursday the market under Gopal
Enterprises remains close
Outlet Name
A KA BARNAWAL MAA LAXMI BHANDAR -
AAFIA ST MAA MANASHA BHANDAR
ABHA VARIETY MAA MANASHA BHANDAR (NIMTA)
ACHARYA STORES. MAA TARA (ST) -(ARD)
ADDYAMAA MAA TARA BHANDER-KHARDHA
ADHAKARY ST MADHURI SNACK
AGAMONI STORES MAITY ST
AMIO BHANDAR MALLICK ST
AMIT BH MAMATA VT
AMULYA BHANDAR MANILAL SHAW
ANIL ST-ARD MANISHA
ANIMA STORES MANORAMA STORES
ANNAPURANA BH-ARD MANOSHA BHANDAR (DURGANAGAR)
ANNAPURNA BHANDAR SUCKCHAR MATRI BHANDAR
ANNAPURNA BHANDAR-DURGANAGAR MATRI BHANDAR-MANIKDANGA
APARUPA ST MATRI BHANDAR-SCHOOL ROAD
AVINANDAN-GHOLA 2 MATRI BHANDER2
BABA LOKENATH BHANDAR - BELGHORIA MAYA BHANDAR
BABLU STORES MAYURI
BALAJI STORES MOHINI SRINGAR MAHAL
BANERJEE BHANDAR MONALISHA
BASANTI STORES MONDAL BROS
BENARASHI GROCERY MONDAL VT. STORES
BERA STORES MUSARAF ALI
BHAGABAN SHAW N. SAHA
BHAGOBATI BHANDAR NABA KALPATARU BHANDER
BHOLANATH BHANDAR NAKUL STORES
BHOLANATH BHANDER-NATAGARH2 NANDI STORES-RASKHOLA
BHOLANATH BHANDER-SUKCHAR NARAYAN STORES
BIJAY CONFEC. NAYAK (ST)
BIJAY ST (KAM) NEHA ST
BINA DEPRTMENTAL NEW LAXMI BHANDAR
BINA PANI ST NEW MAA DURGA BHANDAR
BISCUIT GHAR NEW VRT STORES-USHUMPUR
BISWARUP BHANDAR NILMANI SADUKHA
BISWAS VR. STORES NITAI CHAKRABORTY
C.LAL, NITYA GOPAL BHANDAR - ALIPURE MORE
CHATRABANDHU NOBEL TEA.

31 | P a g e

CHAYANIKA O P GUPTA CLO
COSMETIC WORLD ONKAR STORES
D. M STORES P.G.GHOSH
DAS VR BH PARIMAL DEY
DAYAMAYEE VR ST PRINCE ST
DAYAMOYE. PROYAJANI STORES
DEBKUMAR DEBNATH PULIN PAUL
DEBNATH BHANDER PURNALAXMI BHANDAR
DEBNATH STORES. PUSPESWAR BHANDAR
DEBNATH STORES-RAHARA R.S.TRADING
DEEPSIKHA RADHA RANI ST-KAM
DILIP SARKAR RADHA VRT STORES
DILIP SHOW RAHARA VR ST
DILIP STORES RAIMA VRT STORES
DINESH CHANDRA SAHAR DOKAN RAJBANS SINGH
DIPALI ST RAJLAXMI BHANDAR
DIPANKAR STNR GOODS RAJLAXMI BHANDER
DIPIKA STORES RAKAMARI ST-D P NAGAR
DIPTY VT.-GIRJA RANJIT ST
DURGA ST (ARD) RATION SHOP 208
DURGA STORES-SAKTIPUR RENUKA.
DUTTA VRT STORES USH RINKI VRT STORES
DUTTA VT. ST.-SCHOOL RD RIYA ST
ELGO S. SAHA
GANAPATHI TRADING S.DABNATH
GANDHESWARI BHANDAR - (NIMTA ROAD) S.GHOSH
GANDHESWARI BHANDAR-SCHOOL ROAD S.K.BHANDER
GANESH BH (KAM) SADHANA VR ST-CLO
GANESH BH (N.PARA) SADHUKHA VRT STORES
GANESH TRADERS SADHUKHAN ST
GANESH TRADING - KDH2 SAHA BHANDAR
GHAR SANSAR. SAJGHAR.
GHOSH BROTHERS. SAJSAJJA (DKS)
GHOSH BROTHERS-NANDAN NAGAR SAMANTA STORES-GIRJA
GIRI BHANDAR SANDHA ST.
GITANJALI SANKAR BHANDAR
GLOSSY IMITATION SANKAR GHOSH(618)
GOBINDA BHANDAR SANKAR GRO.-NATAGARH2
GOPAL BHANDAR SANKAR VRT STORES
GUPTA ST ( S K GUPTA) SANTA ENTERPRISE
GUPTA ST. SANTI STORES (MATHKOL)
GUPTA STORES (PRAFULLA NAGAR) SANTOSHI MAA BH (KAM)
GUPTA TRADERS-SASHI SANTU KARMAKAR
H.N.KOLEY SANTY BH.
HALDAR STORES SARASWATI BHANDAR.

32 | P a g e

HAREKRISHNA SARKAR BANIJYA
INDIAN ST SAROSWATI BH
ITYADI. SATYA NARAYAN BHANDAR-AGARPARA
JANONI STORES SATYA NARAYAN BHANDER
JOY GOPAL BHANDAR. SAYAN ST (BH/ARD)
JOY GURU STORES SHIB BHANDER - SUKCHAR
JOY MAA KALI BHANDAR-R N AVENUE 2 SHISU ART
JOY MAA TARA SHIV STORES
JOY MATARA BHANDAR SHIVAM ST
JOYA STORES SHOW ST
JOYDEB BHANDAR SIKHA STORES
JOYRAM STORES SITARAM BH (ARD)
JOYTY ENTERPRISE SNEHALATA EMITITION
JYOTSNA-SARADAPALLY SONAR TARI
KABERI STORES SREE DURGA BHANDAR
KACHER SWARGA SREE GANESH BH(RIFELREANG ROAD)
KALI MATA BHANDAR SREE GOURANGA BHANDAR
KALIMATA STORES SREE GOURANGA.
KALPATARU-AGARPARA SREE GURU ABODUT BHANDAR
KAMALA BHANDAR. SREE GURU BHANDAR.
KAMLA EMITITION SREE GURU BHANDAR-GHOLA
KANU DUTTA SREE GURU ONE
KHUDIRAM STORES SREE GURU STORES-SAKTIPUR
KIRAN VR. STORES - BELGHORIA STATION SREEMAA STORES
KRISHNA BHANDAR. SRI BHANDAR
KRISHNA CORNER SRI DURGA ST
KUNDU BHANDAR SRI KRISHNA BHANDAR
KUNDU ST-BH SRIMA STORES.
LAKHI SNACKS SUBHASIHINI STORES
LAXMI BHANDAR-RAHARA SUBHOM STORES- 3 NO. RAIL GATE
LAXMI BHANDAR-SENBAZAR SUDHA ST(KAM)
LAXMI BHANDER-MISSONPARA SUJAY ENTERPRISE
LAXMI BHANDER-NATAGARH 2 SUKUMAR SAHA
LAXMI NARAYAN BHANDAR SULAB BHANDAR
LAXMI NARAYAN ST-MINMAY GHOSH SULAB SAMBHAR
LAXMI ST (ARD) SUSAN ST(BH)
LAXMI ST-NIMTA SUSOMA ST
LAXMI STORES-B T ROAD SWAGATA STORE(BH)
LAXMINARAYAN STORES, TARA MA BHANDAR
LOKENATH STORES - OLD NIMTA TARA MA ST
LOKNATH BHANDAR-KHARDA 2 TARAKNATH BHANDAR.
LOKNATH ST(KAM) TARAKNATH BHANDAR-AGARPARA
LOKNATH STORES. TARAKNATH BHANDER.
LOKNATH STORES-RAHARA THE CHEAP STORES
LUCKY STORES TIRUPOTI ST

33 | P a g e

MAA ANANDAMAYEE ENT TRILOKE SHOW
MAA CHINDICK ST CLO TRINATH BHANDAR
MAA DURGA BHANDAR BIRATI TRIPURA BHANDAR
MAA DURGA BHANDAR(SVS) UTTAM VT. STORES
MAA KALI BHANDAR - D. P. NAGAR VARIETY STORES
MAA KALI BHANDER VICTOR MEUSEUM
MAA KARUNAMAYE VIVEKANANDA BHANDAR
MAA LAXMI BH. MAA LAXMI BHANDAR

Of the above 272 outlets 208 outlets were converted to CLO outlets.

Anil Bhusan and Mitra

Outlet Name
A N HALDER MAA DURGA STORES
A.BASAK MAHA PRAVU BHANDER
A.K.STORES ( V. ROAD( MAHA RAJA STORES
ABHIJIT DUTT MAHAKALI STORES ( HADUA)
AMIR CHAND MAHESH BHANDER
ANAND TRADING MALATI ZARDA
ANANDA BHANDER- RM MAMON LADIES CORNER
ANNAPURNA BHANDER ( APC) MANJU STORES ( BEADON)
B. L. MISRA MODERN VARIETY STORES-R.D.SARKAR
B.P.AGARWAL(SHAMBHU DA) NEW ELITE TEA HOUSE
BALAJI ENTERPRISE NEW LAXMI NARAYAN BHANDER- MASZID
BARU LAL SHAW NEW MADHUMALA
BASUDEB SAHA NEW SUNDARAM
BHATTACHERJEE STORES NILIMA
BHOLA NATH STORES O.C.VARIETY
BINOD SHAW OMPRAKASH SHAW
BINOD SHAW(RGK) P G SHAW
BINOD SHAW(SYM) P.HALDER
CHARU CHANDRA STORES PRALLAD RAM OMPRAKASH
CHATERJEE BROTHERS RAJU BHANDER BAGBAZAR
D.N.CHOWDHURY S.K.SHAW
DASHAKARMA BHANDER S.KUMAR ( HEDUA)
DINESH SHAW(RGK) S.KUNDU
DIP STORES S.L.AGARWAL
G S RANA S.LAHA
GANDESWARI BHANDER(HG) S.N.BASAK
GANESH STORES SAFEDA BHANDER
GHOSH BROTHERS ( RGK) SAHA STORES-VIVEKANADA ROAD
GIRIJA PRASAD GUPTA SAMIR SETH ( APC)

34 | P a g e

GOPAL STORES SANJAY STORES ( HEDUA )
GUPTA BHANDER (MANIKTALA) SANKAR STORES (123/1/1
HANUMAN PRASED GUPTA SANKAR STORES(HG)
JAGNATH STORES ( HADUA) SANTOSH SHAW
JAGONATH STORES SHAMALI
JUST FRESH SHIV BHANDER- DARJEE PARA LANE
K C SHARMA SIDDHI GOPAL STORES
KAMALA STORES(B/R SARANI) SOUMODEEP TELECOM
KAMALA TEA CO. SREE AGARWAL BHANDER
KASHINATH BHANDAR SREE DURGA STORES (RS)
KHOKAN NAG SREE KRISHNA BHANDER
KISHORI SHAW SREE TIRUPATI BALAJI
KISHORI SHAW(BAG) SUNIL AGARWAL
LAHA BROTHERS SURESH SHAW ( HEDUA)
LUCKY STORES SUSHILA STORES
M.D.CASH SWAPAN KR. SETH
M/S K P KARAK & S C KARAK TARU BALA STORES
MAA BHABANI BHANDER USHA STORES

Of the above 94 outlets 81 outlets were converted to CLO outlets


Subhash Trading Company

Outlet Name
ABHINANDAN NARAYAN BHANDER
ALAPAN NEEDS
AMIT MAJUMDER NEW ANANTA BHANDER
ANNAPURN BHANDAR AB
MARKET NEW KARUNAMAYEE STORES
ARNNAPURNA BHANDER NEW LOKNATH BHANDER
BABA TAROKNATH BHANDER NEW MAA KALI BAHNDER
BABAMONI HOME NEEDS NEW MAA SONTOSHI
BAPI STORES PROBIR STORES
BAPPA DEPARTMENTAL
QUALITY HOUSH IB
MARKET
BHOUMIK STORES RADHA STORES
CHATTERJEE CONFECTIONERY RATION SHOP BJ MARKET
DASABHUJA STORES RATION SHOP-BD BLOCK
DUTTA BHAI-EC BLOCK RATION SHOP-IA BLOCK
FAIR TRADERS RELIABLE ENTERPRISE
GANESH BHANDER ROY & SONS
GLOBAL FOOD MART S.N.C.L
GOSH VARIETY STORES SAHA STORES
GUPTA STORES SANGAM
GURUDEV TRADING SANKAR CONSUMER

35 | P a g e

HORI CHAND BHANDAR SATORUPA BANDER
JEET STORES SHIVAM STORES
JOY GURU BHANDER SHREE GANESH
K.K.BHNADER SHREE HANUMAN STORES
KARUNAMAYEE SIDDESWARI BHANDER
KAUSHIK HOWLADAR (SUSIL) SOVA VARIETY STORES
LOKENATH BHANDER SREE DURGA BHNADER
LOKENATH STORES-AE BLOCK SREE GRIHASTI STORES
MAA ANNAPURNA STORES SREE KRISHNA BHANDER
MAA LAXMI BHANDER SUDHYA KHADYA BHANDER
MAA SONTOSHI BHANDAR TARA MAA BHANDER
MAA TARA BAHNDER THE SUMBAR
MAA VARITY STORES TRINATH BHNADER
MAMONI STORES UTSAV
MURARI STORES VIVEKANANDA STORES
YOGOMAYA STORES

Of the above 69 outlets 55 outlets were converted to CLO outlets

The once which are not selected is due to the following reasons:
Non availability of display shelf
Non availability of a good spot for display
Dealer asking for a much higher rate which was allowed by company
Dealers not ready due to the previous display related experiences
Outlets not suitable for being CLO due to lack of competition or low sales


Schemes and programs run by other companies

Unilevers

Unilevers is current using Hangers for display of its small packet products like
Surf Excel, Rin, Tressemme sampoo etc.
For this there is no fixed monthly payments
This incentive is decided on the basis of sales
The incentive on different products are as follows
Small sachet products: 05% on sales
Soaps: 1 % on sales
Food: 2 % on sales
In addition to the above points they are also given a monthly target, and if the
target is achieved they get addition 1.5% discount
There is also a concept of HUL Hulk Counter. Hulk Counters are the selected
as area top 3 counters; they get the benefit receiving all the products before
the other retailers and also get extra 2% incentives.


36 | P a g e

Procter and Gamble

P & G currently is running Shiksha Program
There is no display amount but 4% Discount on the bill


LIMITATIONS

To be able to interact well with the retailers knowing the local language is
mandatory
All the grocery shops used to get closed down at around 1 oclock. So all the
work have to be completed before that
All the shops were small. They did have a clear idea as what schemes and
loyalty programs are run by the companies. So data collection was a problem
As the location of the shops were difficult to trace down, i had to travel with
the area sales man. They took a lot of time in taking orders and payment
collection and this killed my lot of time.



CONCLUSIONS

Few outlets could have been set without paying the display amount; incentive
on sales would be fine with them. This would not only save monthly payments
but also increase sale.
Introduction of soap for summers. Some retailers complained of lack of a cool
soap, which are demanded by the customers during summers
Providing Testers of deodorant in few outlets could be beneficial, as it would
increase the sale of deodorants
Timely payment of display amount is required as all the retailers complained
regarding the same.
There is a huge undercut in the market. Rates in the wholesale market are
very less. This is causing problems to retailers as there is huge difference in
price. This needs to be checked and resolved as soon as possible
Engage Deodorant advertisement fails to offer differentiation. It plays the
same theme which the rest of the deo players, the so called chemistry
between men and women.
Fogg on the other hand has moved up in market because it chose to speak in
a different language