distribution & channel management, promotion decisions of itc limited

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Distribution & Channel Management Promotion Decisions Learning Team C 05 Reyaz Jafar Kumar Sourabh Smita Swain Sumit Sharma Shefali Bhagat S. M. Tahir Raza Zaidi

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Page 1: 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

Page 2: Distribution & Channel Management, Promotion Decisions OF ITC Limited

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

Page 3: Distribution & Channel Management, Promotion Decisions OF ITC Limited

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

Page 4: Distribution & Channel Management, Promotion Decisions OF ITC Limited

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

Page 5: Distribution & Channel Management, Promotion Decisions OF ITC Limited

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)

Page 6: Distribution & Channel Management, Promotion Decisions OF ITC Limited

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

Page 7: Distribution & Channel Management, Promotion Decisions OF ITC Limited

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

Page 8: Distribution & Channel Management, Promotion Decisions OF ITC Limited

TV Advertisements

Promotion Strategies

Page 9: Distribution & Channel Management, Promotion Decisions OF ITC Limited

Informative Advertising Tagline

Page 10: Distribution & Channel Management, Promotion Decisions OF ITC Limited

Print Ads Hoarding

Page 11: Distribution & Channel Management, Promotion Decisions OF ITC Limited

Public Relations

Page 12: Distribution & Channel Management, Promotion Decisions OF ITC Limited

E Chaupal Water Conservation

Page 13: Distribution & Channel Management, Promotion Decisions OF ITC Limited

World Hunger Day

Page 14: Distribution & Channel Management, Promotion Decisions OF ITC Limited

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

Page 15: Distribution & Channel Management, Promotion Decisions OF ITC Limited

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

Page 16: Distribution & Channel Management, Promotion Decisions OF ITC Limited

THANK YOU