Distribution & Channel Management, Promotion Decisions OF ITC Limited
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Transcript of Distribution & Channel Management, Promotion Decisions OF ITC Limited
Distribution & Channel Management
Promotion DecisionsLearning Team C 05Reyaz JafarKumar SourabhSmita SwainSumit SharmaShefali BhagatS. M. Tahir Raza Zaidi
ITC LIMITED headquartered in Kolkata, West Bengal has a diversified business into five segments: Fast Moving Consumer Goods (FMCG), Hotels, Paperboards & Packaging, Agri Business & Information Technology.
Established Imperial Tobacco Company of India Limited, the company was renamed as the Indian Tobacco Company Limited and further to I.T.C. Limited .
The company has a market capitalization of US$45 billion. It employs over 25,000 people at more than 60 locations across India and is part of Forbes 2000 list
Introduction
Model 1: Large Cities, Metros, and Geographical Areas With High Demand
Model 2: Cities
As compared to model 1 the distribution area is small and so C&F agent follows strategy of minimizing the distribution channel and hence the profit distribution among different components. They ignore the wholesalers and pass the profit to retailers in return expecting large sale.
Channel Levels
Company C&F WholeSeller Retailer Consumer
Company C&F Retailer Consumer
Model 3: Small Towns
This models is followed where transportation systems are not good or the wholesaler’s coverage area is large. One of the retailer keeps the stocks and distributes it to other retailers at lower profit margin.
Proposed Distribution System For Business Users
Channel Levels(Continued)
Company C&F Semi Wholesellers Consumers
Company Agent/Broker Wholeseller Consumer
Multi-Channel distribution system: ITC uses a combination of distribution
channels according to the products, Demand and geography it is catering to.
Push Strategy Used to increase sells, awareness and to
gain favouritism from kirana owners. Was implemented for cigarettesPull Strategy Marketing activities through advertising
and Consumer promotion. To induce the consumer to buy product. Was used in the case of ‘Sunfeast Ready
to eat Pasta’.
Channel Design
Exclusive (Textile)
Selective(PaperBoards & Cigarettes)
Intensive(Other FMCG Products)
Improved efficiency A better assortment of products Brand image Routinization of transactions, and Easier searching for goods as well as customers Promotion Suggestions Feedback Proper training of sales person Incentives to sales person
How ITC Adds Value
AASHIRVAAD is a brand of staple food and kitchen ingredients owned by ITC Ltd.. The Aashirvaad range of products include Atta, Salt, Spices and Instant mixes.
ITC entered the branded Atta market with the launch of Aashirvaad Atta in Jaipur and Chandigarh in May 2002. The product is now available all over India.
Aashirvaad Select Atta (5 kg pack)made from Sharbati wheat which comes from Madhya Pradesh. was awarded the World Star Award for Excellence in Packaging in the Consumer Pack Category.
AASHIRVAAD BELIEVES IN OFFERING YOU ONLY THE BEST BECAUSE YOU DESERVE IT
Aashirvaad Atta
TV Advertisements
Promotion Strategies
Informative Advertising Tagline
Print Ads Hoarding
Public Relations
E Chaupal Water Conservation
World Hunger Day
Exclusive Aashirvaad stores have been opened. ITC has tied up with Indian government to sell Aashirvaad Atta at military
canteens. Aashirvaad Atta has been the sponsor for various shows on television. There have been offers in which the price has been reduced to allow for
the increase in sales. Coupons are provided when we buy Aashirvaad Atta from online stores
like Reliance Fresh Direct, Zopnow etc. Aashirvaad Ready To Eat products have been offered free with Aashirvaad
Atta.
Sales Promotion Of Aashirvaad Atta
Market Capitalization over $45 billion Turnover over: over $7 billion Over 30,000 employees Educating 3,00,000 children Empowering 4 million Farmers 40,000 Sustainable livelihood for rural women 40% renewable energy Greenest luxury hotel chain 1,42,000 Hectares greened Powering growth with multiple business drives Soil and moisture conservation to 1,16,000 Hectares
Conclusion
THANK YOU