S  U  M  M  E   R        T  R  A  I  N  I  N  G         P  R  O  J  E  C  T         R  E  P  O  R  T  

TABLE OF CONTENTS

ABBREVIATIONS        

Chapter 1: AIM OF THE PROJECT        

METHODOLOGY        

Chapter 3 :        

Chapter 4: TM&D STRATEGIES        

Chapter 5:        

Chapter 6:        

WORKING NORMS FOR TERRITORY – IN – CHARGE.        

Chapter 8:  MERCHANDISING        

Chapter 10: TRADE RELATIONSHIPS:        

Chapter 11: ANALYSIS OF THE QUESTIONNAIRE        

Chapter 13:        

1. POP MATERIALS & ADVERTISINGS        

2. DISPLAYS        

Chapter 14: MODEL FOR INCREASING SALES        

2. INCENTIVISATION OF THE DS        


ABBREVIATIONS

WD                :-         WHOLESALE DEALER

SWD                :-        SEMI WHOLESALE DEALER

DS                :-        DISTRIBUTION SALESMAN

TM & D         :-        TRADE MARKETTING AND DISTRIBUTION

TMR                :-        TRADE MARKETING REPRESNTATIVE

O/Ls                :-        OUTLETS

FIFO                :-        FIRST IN FIRST OUT

AE                :-        AREA EXECUTIVE

AM                :-        AREA MANAGER

BM                :-        BRANCH MANAGER

TSI                :-        TERRITORY SALES INCHARGE

POSM        : -        PURCHASE OF SALES MATERIAL

POP                :-        POINT OF PURCHASE MATERIALS

FOD                :-        FACE ON DISPLAYS

GSB                :-        GLOW SIGN BOARDS

RSB                :-        RETAIL SIGN BOARDS


Chapter 1: AIM OF THE PROJECT

OBJECTIVE

  • To study the work practices of the major competition companies of I T C in confectionary and biscuits category.
  • To increase the sales of the Semi Wholesale Dealers (SWD) for    I T C in biscuits and confectionary category.

METHODOLOGY

Study the work practices of the following companies in confectionary & biscuits

        

PARLE, PERFETTI, BRITANNIA & HLL

Keeping in mind the desired TM & D outcomes: -

  • Understanding the TM & D strategies of all the companies studied.
  • Mapping roles & work practices of each member of the field force.
  • Recommending the work practices to increase the sale of confectionary & biscuits for I T C.
  • Developing a model for increasing the sales of the SWDs in the command area.


Chapter 2: INTRODUCTION

FOODS BUSINESS DIVISION OF I T C

BISCUITS

The current size of the Indian biscuits market is around Rs 4,500 crore, out of which the size of the organized sector is Rs 2,700 crore. In terms of volumes, the total production of biscuits in India currently stands at around eight lakh tonnes out of which 4.5 lakh tonnes come from the organised sector. I T C expect to capture around 11 per cent share in the biscuits market within the next 3 years. This will put I T C in the 3rd position in the biscuits market

There has been a tremendous growth in the biscuits market during the last couple of years especially in 2002-03, when the market grew by around 12 per cent. This overall market growth has prompted I T C to venture in the field in a big way.

Sunfeast" - the umbrella brand name introduced in the Glucose, Marie and Cream segments. "Sun" mascot - the brand ambassador is reinforcing the positioning of the brand "Spread the Smile". Product Innovation - two unique and new flavors - for the first time in the India market- Orange Marie and Butterscotch Cream biscuit. Looking to I T C and increasing consumers’ demand for Orange Marie, PARLE has also plunged in production of Orange Marie and is launching the same across all the O/Ls in a short time.

"Sunfeast" – is launched nationally in phases in over One million retail outlets across the country.

CONFECTIONARY

I T C currently has two brands in the confectionery segment - "Mint-O" and "Candyman" .

I T C acquired the brand "mint-o" from Candico in March 2002. I T C re-launched the compressed mint product mint-o with new and improved product and packaging. Mint-o is the first mint in India to be also available in an orange flavour besides the regular mint flavour. An innovative "Lemon mint" flavour was launched on 26th February 2003. The product is available in two sizes – rolls of 20s and 6s.   Mint-o offers the discerning consumer a value-added mint that captures the international essence of youthful "cool". Mint-o is currently available in all major markets.

Candyman Butterscotch Licks and Orange Licks were launched in December 2003 and now available in markets across the country. This marked I T C's entry into the deposited candy market. In addition, Candyman Eclairs and Candyman hard-boiled candies viz. Wild Banana, Mango Delite, Orange Josh and Pineapple Punch are also available across India.

The latest offering from I T C Foods is in tune with the company's strategic direction to develop new product lines by synergising its proven competencies. It is believed that company’s understanding of the Indian consumer is reflected in the increasing confidence in the "I T C" brand and more importantly the trust that Indian consumers are reposing in all products.


Chapter 3 :

OUTLETS CLASSIFICATION OF STUDIED Cos.

OUTLET CLASSIFICATION NORMS:

Every company studied has classified outlets on the basis of both turnovers as well as by channels. The classification by turnover could be on the basis of the turnover of the industry of the category in the outlet or the turnover of the company’s own products in the outlet. This classification is primarily used for inputting the respective companies’ brands better and in a more focused manner. Inputs could be in the form of trade or cash discounts or in the form of special incentives to whichever class of outlets is being targeted. These classifications are also taken into account while conducting any visibility and merchandising drives.

PARLE

        Outlets are classified as per the A, B, C and semi wholesale depending on their turnover.

In addition to the above classification, the outlets are also classified channel wise into following heads:

  • Bakery
  • Pan-Bidi
  • General Stores
  • Chemist
  • STD – PCO
  • Institutions
  • Ice-cream Parlors
  • Restaurants / Hotels
  • Others

PERFETTI

Outlets are classified as per the turnover during the each call as well as the channels in each route.  Following are the classifications based on the turnover

In addition to above classification the classification is also done according to the channel-wise.

  • Pan-Bidi
  • Stationary
  • Hotels
  • Kirana
  • Medical Stores
  • Gift Shops

BRITANNIA

Outlets are classified on the basis of monthly turnover as well as channel wise.

Classification Channel wise

HLL

        Outlets are classified according on their monthly Turnover, type, channel and service. According to turnover the classification is done as follows:

Classification is also done on the basis of the type of the outlet.

The outlets are classified according to the channel segment.

The classification is also done according to the service type.

Thus the classification of O/L can be summarized as follows:

Other than Britannia, O/L classification by volume class by all other companies is done on their own T/Os. Britannia does it on the industry.

This outlet classification is done for the following purposes.

  • Determine service frequencies.
  • Working out Trade Schemes.
  • Working out merchandising inputs.
  • All companies have classified O/Ls by channels/types in a similar manner only to focus their sell-in of the various categories they sell, eg - pushing confectioneries & biscuits in the Paan-Bidi channel.

Chapter 4: TM&D STRATEGIES

PARLE

  • Channel focus – Primarily Grocery and wholesale
  • Selling-in: Focus on range selling and productivity. Evident from the fact that every productive call should have at least 10 SKUs in the order and the minimum productivity should be 70%. Product detailing and sampling are actively used to aid this process.
  • Selling-out: As much importance to selling-out as to selling-in. Merchandising is used to aid this process. FODs, signature displays and Jar capturing for confectioneries are the most common tools used.
  • Relationship building: Parle is one company, which stands out in its belief in trade marketing and its efforts at relationship building.
  • Width of coverage: Approx. 70% of the universe in Surat. However, the no. of outlet: distributor ratio is lower vis-à-vis ITC that implies a higher sell-out and therefore focus at the outlet level.

PERFETTI

  • Channel focus: In addition to the traditional channel of Grocery and wholesale, Pan-bidi and stationery shops are also important channels.
  • Selling-in: Focus on range selling. Total no. of SKUs have been bunched into two separate groups in order to aid distribution.
  • Selling-out: Primarily aided by advertising. Merchandising is done only in the form of Jar capturing.  
  • Relationship building: No focus in this field.
  • Width of coverage: Only service the key O/Ls (50% of Universe).
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BRITANNIA

  • Channel focus: Primarily Grocery and wholesale. In addition, Bakeries, chemists and eateries are also covered.
  • Selling-in: Minimum productivity advocated is 60%. However, this is not strictly adhered to or followed up. Primarily aided by trade schemes and consumer promotions.
  • Selling-out: High focus on Consumer promos & FODs.
  • Relationship building: No structured effort observed on the part of the company. Is entirely subject to the individual initiative of the Distributor.
  • Width of coverage: 60% of the universe. However, the no. of outlet: distributor ratio is lower ...

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