study of cdm in fmcg sector

Vikramaditya [email protected]

Summer InternshipReportI T C L i m i t e d

I T C L t d , 1 s t F l o o r , I n d i a nM e r c a n t i l e C h a m b e r s

R . K a m a n i M a r g , B a l l a r dE s t a t e , F o r t , M u m b a i - 4 0 0 0 0 1

7 / 8 / 2 0 1 3

Vikramaditya Singh [2013]An Analysis of Sales & Distribution of ITC FMCG Productson Convenience Delivery Model.

ContentsExecutive Summary....................................................................................................................................2

Overview of Bingo......................................................................................................................................3

Bingo! Yumitos - 'Take a Yumitos Break'....................................................................................................3

Bingo! Mad Angles - "Har Angle se Mmmm..."..........................................................................................4

Bingo! Tedhe Medhe - "Har Stick mein alag twist...".................................................................................4

Bingo! Tangles - "Khaoge to Khilaoge..."....................................................................................................5

Scope of the Project ...................................................................................................................................9

Problem Statement ....................................................................................................................................9

Research Methodology ..............................................................................................................................9

Findings & Observations ..........................................................................................................................10

Warehouse Distribution Point .................................................................................................................12

Issues Observed .......................................................................................................................................12

Suggestions ..............................................................................................................................................12

Retailers ...................................................................................................................................................13

Issues Observed .......................................................................................................................................13

Suggestions ..............................................................................................................................................13

Distributor Salesman................................................................................................................................14

Issues........................................................................................................................................................14

Suggestions ..............................................................................................................................................14

Appendix 1: Competition Landscape ...............................................................................16

Appendix 2: Cash Flow Cycle....................................................................................................................17

Appendix 3: Total Sales Breakdown ................................................................................18

Appendix 4: Salesperson wise Sales Breakdown .....................................................................................19

Appendix 5: Various SKU sales data (INR) .......................................................................48

Appendix 6: DSS Rating for FMCG Sales ..........................................................................50

DSS rating according to FMCG sales on CDM day: ..........................................................50

Appendix 7: DSS Rating for Bingo Sales ...................................................................................................53

Bingo Sales Wise DSS performance all data in INR:.........................................................53

Acknowledgements .........................................................................................................56

Executive Summary

In the world where only permanent thing is “Change”. The market for every FMCG is evolving ata nanosecond pace. Markets for different product categories have become highly competitive. Insuch dynamic and competitive market conditions, it is indispensable for companies to remain inbreast with their Supply Chain. With this importance in consideration, I have been assigned tostudy the Sales & Distribution of ITC FMCG products. The project is conducted for ITC Mumbaiunder the mentorship of Mr. Kiran Churi.

The main objectives of this project are:-

Understand the Sales and Distribution on CDM for various FMCG products Study the “ITC Distribution Ecosystem” and understand the dynamics among key players-Sales distributors, Supervisors and Retailers Measure Sales performance & Cash flow Cycle of Sales Distributors Measure and Increase the sales of product “Bingo Study the competition landscape Find out preferences, quality, taste, and awareness of ITC FMCG products along withsatisfaction level at retailers’ end

One of the primary objectives of the report is to understand ITC’s distribution ecosystem. To

achieve this objective, I have conducted a market survey in 25 different locations in Mumbai

city. I accompanied 30 sales distributors to different retail outlets for a period of 60 days. This

exercise provided vital insights to ascertain position, visibility, and availability of ITC FMCG

products along with key competition in the market. Other sources like internet, online journals,

and company’s financial reports have been used to collect secondary data and support findings

from primary data.

The data was collected, analyzed and represented in the form of various facts and figures.

Findings and Suggestions are presented in the form of report and presentation to achieve

objectives of study.

Every project has some limitations and this study is no different. One of the major limitations of

this project has been time limit. I was unable to visit manufacturing units of ITC products.

Visiting these units could have provided more clarity on manufacturing process, packaging and

operations on the supply side of distribution chain.

Overview of Bingo

Bingo was launched in March 2007 with a wide range of exciting packaged salted snacks. Therange includes multiple flavor variants of Potato Chips & Finger Snacks.

The brand is associated with youth, fun and excitement. It fulfils the consumers need for varietyand novelty in snacks. At present Bingo! has 4 sub-brands in its portfolio, each of which haveunique values based on consumer need differentiation.

Bingo! Yumitos - 'Take a Yumitos Break'

Bingo! Yumitos Potato Chips are the best partner for break. Bingo! Yumitos is verytempting and yummy account the full bodied flavours. These flavors range from traditionalfavourites like Salted to innovative ones such as Red Chilli. There are in total 7 excitingflavours.

Premium Salted International Cream & Onion Red Chilli Bijli

Masala Remix Juicy Tomato Ketchup Fiery Red Tomato

Oye Pudina

Bingo! Mad Angles - "Har Angle se Mmmm..."

One of the biggest successes from the Bingo! Portfolio, Bingo! Mad Angles has carved aniche for itself in the consumers mind and is synonymous with the perfect triangular snack.

A combination of innovative flavours on a traditional khakra base, Mad Angles is a snackthat is true to taste with perfect flavour delivery as well as shape, making it a snack that'struly "Har Angle se Mmmm ..."

Mad Angles Tomato Mischief Mad Angles Chilli Dhamaka Mad Angles Achaari Masti

Mad Angles Masti Chaat

Bingo! Tedhe Medhe - "Har Stick mein alag twist..."

Bingo! Tedhe Medhe is the popular spindle shaped format from Bingo! that is a deliciousblend of handpicked spices with an aroma that makes one crave for more. The taste of fierysparks which masalas leave on ones tongue is an experience with savouring!

Just like no two things in life are the same, Bingo! Tedhe Medhe provides a uniqueexperience to the consumer each time he consumes it from the pack, making him go beyondstereotypes and celebrating the eccentricities in life!

Bingo! Tangles - "Khaoge to Khilaoge..."

Bingo! Tangles is one of the most innovative snacks available in the market. Each piece ofthis innovative crunchy snack is made out of strands loaded with lip smacking masala ortantalizing tomato or simply salted flavours. Once bitten, they break into many moredelicious strands in the mouth. It is so tasty that you can’t resist sharing it with others.

Masala Tangle

Bingo! Tedhe Medhe

Figure 1: Wafer Market Share in India

Lays47%

Balaji22%

Uncle Chips10%

Bingo9%

Parle7%

YellowDiamond

5%

Wafers Market Share (July'12-Sep'12)

All data collected by A C Nielson 2012 report

Figure 2: Bridge Market Share in India

Kur Kure64%

Bingo24%

Balaji ChatakaPataka

12%

Bridge Market Share (July'12-Sep'12)

All data collected by A C Nielson 2012 report

Figure 3: Western Snacks Market Share in India

2009-2010 2010-2011 2011-2012

4843 40

6

65

13

13

11

8

8

9

3

35

2227 30

Western Snacks Market ShareFrito Lay India Haldiram Balaji Namkeen ITC Parle Product Others

₹ 138791 Cr ₹ 205591 Cr ₹ 241124 Cr

Scope of the Project

To carry out field work pertaining to Sales and distribution of FMCGproducts on Convenience Delivery Model (CDM)

To understand & increase the sales of ITC Bingo! Snacks in currentoperational distribution system on Convenience Delivery Model (CDM)

Problem Statement

The purpose of this project is to study the Convenience Delivery Model and suggestmeasures to enhance distribution efficiency and boost sales of ITC FMCG products withspecial focus on Bingo

Research Methodology

In this study, primary and secondary research was conducted to provide a holistic view ofthe problem and to arrive at actionable recommendations.

Secondary research was essentially done to learn about ITC as an organization and tounderstand its FMCG offerings. Additionally, secondary research helped in understandingITC’s positioning in the market viz a viz competition. The sources of secondary researchincluded official website, blogs and industry articles.

Primary research was undertaken in order to understand sales & distribution system of ITCFMCG products on CDM. This was achieved by personally accompanying CDM vehiclesand visiting shopkeepers of various routes in Mumbai. Thorough this research, I have beenable to study how DSS operate and deliver products to numerous retailers. I have collectedfeedback from retailers regarding supply and distribution of ITC FMCG products. Thisfeedback has given me insights into retailers’ preferences regarding product display anddelivery to the end consumer. This feedback also helped me understand retailers’ issues withrespect to ITC products. Furthermore, in order to understand cash flow cycle of distributors,I studied complete cycle of cash movement from the point DSS take orders from retailers tothe point retailers pay these DSS for delivery of goods. This has helped me understand

distributors’ challenges in terms of ordering goods, obstacles faced in distribution &complexity of managing cash flow.

Findings & ObservationsBy studying the distribution cycle of Star warehouse for a period of 2 months, I observed variouschallenges that plague current distribution. The diagram below shows a typical day in the Starwarehouse.

nhava sheva nhava shevDS reaches STAR WD on average

0f 8-8:15 am

Supervisor reaches STAR WD onaverage 8-8:20 am

Four vehicles reach WD on the average of 8:25am.vehicles’ leave for defined route from WD

Loading of CDM vehicles’ starts at 8:30 am. On the averageone DS take 12 to 15 minutes to load the vehicles . Out ofthese 15 minutes, an estimated 10 minutes spent on orderingand negotiations

All CDM vehicles are loaded & leave the WD by 9:00 am

All CDM vehicles’ reach back to WD by an average 0f 4:40PM

Day starts at8:00 am on STAR

WD

Day ends at 5:00 pm onSTAR WD & daily billing iscompleted

Typical Schedule of StarWD from

Monday – Saturdayevery week

During this study, I have observed multiple challenges in the sales & distribution channel. Thesechallenges have been classified under three major categories:-

Challenges at warehouse distribution point Challenges faced by distributors Challenges faced by retailers

Warehouse Distribution Point

Issues Observed1. The routes are prefixed. However, it is observed that there are major changes

in the route on the day of CDM due to various reasons such as distributorabsence, distributor unwillingness to take CDM vehicle or distributorhesitant to take all products

2. Most of the time, various flavors of bingo preferred by the DSS are notavailable in the warehouse

3. On rainy days, there is heavy water logging which affects productivity of thewarehouse. Severe waterlogging can impact even a whole day’s business ashad been observed on June 11, 2013

4. Sometimes obstacles at the entrance of the ware house block the way ofCDM vehicles and eat away precious 15 minutes in the morning. A primeexample of such obstacle is BMC van which blocks the entrance exactly atthe same time when CDM vehicles are supposed to depart from thewarehouse

5. Currently, Star warehouse has 2 big sized & 2 small sized CDM vehicles. Itis observed that DSS often prefer small vehicle resulting in higher lead time

6. Schemes are not clearly communicated to distributors7. Many DSS have raised theft issue in the warehouse

Suggestions1. All CDM vehicles should reach STAR warehouse at 8:10 AM so that loadingcan commence from 8:15 AM2. The designated distributor of CDM route day should be instructed to reachStar at 8:10 AM sharp and immediately place the order for products to be loaded

3. Supervisor should develop a practice of informing designated CDM DSS for theday to report at the warehouse at assigned time

4. Since smaller vehicles can be easily parked in congested spaces, it isrecommended that fleet size of these vehicles be increased

5. Distributor should not be allowed to miss designated CDM day more than once amonth

6. In case a Distributor does not take the vehicle on scheduled day, he shouldinform the Supervisor two days prior to CDM day

7. WD management should ensure that DS carries different flavors of FMCGproduct

8. There should be a proper display board on the warehouse to display all schemesbeing offered

9. There should be sufficient number of cameras installed to overcome theft issues10. Monthly cash incentives should be offered to DSS with highest sale on CDM

vehicles. This practice will increase interest in taking CDM vehicle and sellingmore products

11. Require helper on CDM day to increase visibility & visibility of Bingo.

Retailers

Issues Observed

1. D&D replacement is a major issue in both biscuit & bingo categories2. Due to unfriendly packaging, removing a single bingo from ladi becomes

difficult and wastes few precious seconds3. Competitive products such as Lays have higher visibility because their DSS

make an extra effort to showcase the product at retailer’s store4. It is observed that DSS do not deliver the products as per retailer’s preference5. In comparison with ITC FMCG products, competition offers much more

lucrative schemes to retailers. For instance, Balaji provides wafer at INR 3.90 tothe retailer. Detailed description of promotions is stated in table xx

Suggestions1. The biggest hurdle in sales of Bingo is faced in D&D replacement. To overcome

this issue, I recommend that the DSS should be allowed to replace Bingo on

time on CDM day. He should take count of D&D goods a day before CDM dayand carry appropriate number of extra Bingo and biscuits

2. Ladi should be designed in such a manner that the corner of Bingo packets canbe stroked out easily. This will reduce the number of D&D goods. This will alsohelp in making Bingo a product of choice for the retailer due to reduced leadtime in delivering goods to consumers

3. In confectionary section, it is observed that licks and frooti fun have greaterdemand. Therefore, DS should carry more of these jars

4. To make sure visibility of bingo on the outlets, helpers should be sent withdifferent DS’s at least once a week to make sure that the racks or the hangersprovided by the company should carry bingo to ensure better visibility

5. To increase sales of Bingo, ITC should offer better cash incentives to retailerswho sell more than 500 bingo packets a month

6. Providing a check list book with all SKU mentioned to the DSS’s will help indelivering right products to retailers

7. There should be attractive display boards on shops to increase awareness

Distributor Salesman

Issues1. ITC currently does not offer any credit schemes to DSS. As a result, DSS face

cash flow issues as their money gets stuck on a daily basis2. ITC does not offer any incentives to DSS’s based on sales performance3. Delayed D&D replacement is an issue & is one of the main parameters retailers

use to stock products4. There is lack of communication between warehouse management & DSS on

schemes5. There are theft issues in WD when DSS’s bring back left over inventory at the

end of CDM day6. On rainy days, distribution system is badly affected mainly impacting loading &

unloading of CDM vehicles

Suggestions

1. Practice of DSS’s carrying sufficient number of Bingo hangers is currentlymissing and therefore should be enforced by ITC

2. ITC should provide one day credit period to DSS’s for CDM vehicles. To ensureeffective implementation of this scheme, ITC can provide credit period on basisof confirmation provided by DSS on the amount of sales he will generate

3. To clearly communicate various active schemes, there should be display boardsin the warehouse to educate DSSs on the same

4. ITC should develop a mobile billing application on phone to increase efficiency& therefore translate that into more sales by making DSSs increase theircoverage area

5. Providing trays in CDM vehicles to enable DSS to carry goods from vehicles toretailer shop will reduce hassles & save transit time

6. Conducting frequent trainings for DSSs to encourage them to adopt ways ofreducing distribution time & utilize the saved time

Appendix

Appendix 1: Competition Landscape

SKU Competitor

Scheme byCompetitor to

retailersITC Scheme to

retailers Comments

Biscuit Britannia6 pack 3 Pieces

freeNo scheme underbiscuit category

1 Box 6 Piecesfree

No scheme underbiscuit category

Parle1 packet free

with 24 piecesNo scheme underbiscuit category

CadburyOffer 5/- perkwith 15/- oreo

No scheme underbiscuit category

Match Box Bell Same margin Same margin

Bell use wax strapthis is moredemand amongthe buyer

Wafer Balaji Per piece 3.90/- Per piece 4.45/-

Lays Per piece 4.25/- Per piece 4.45/-

Lays levy VAT ofonly5 % toretailers

MasalaMunch

For 45pieces 2 free

Per piece 4.45/-Per piece 3.97

Puff YummyCheese Per piece 3.97 Per piece 4.45/-MasalaMunch Per Piece 3.97 Per piece 4.45/-

Confectionary ParleOne parle gbiscuit free

One ball pen freewith minto gol

Appendix 2: Cash Flow Cycle

1. DSS gets billed everyday on the end of day.2. Cigarette payment on average gets 99.5% paid to DSS by retailer on the same day.3. In FMCG products the cash flow cycle differs for different SKU. Below table will

get a clear picture of the cash flow cycle of FMCG products:

FMCG Products Average Payment Cycle of Different SKU

Cash on same date in % Due Money for 3 days in %Due Money more than 3 daysin %

Bingo 70 25 5

Biscuit 93 6 1

Confectionery 95 41

Match Box 98 2 0

Soaps 50 10 40

Noodles 90 8 2

In-cense sticks 60 15 25

Appendix 3: Total Sales Breakdown

Day Route Sales Data (INR)Total Sales with

cigarette FMCG SalesFMCGSales %

1Dadar East 90403 12491.4 14%

2 Dadar- Mahim 53141 5645 11%3 Mahim 60601 9170 15%4 Dharavi East 33198.3 9779.3 29%5 Matunga Road 41334 12996.35 31%6 Parel Village - Lalbaugh 48779 11621 24%

7 Dadar( Shiv SenaBhavan) 90403 10491.5 12%

8 Parel( KEM Hospital) 59988 9743 16%

9 Matunga East- KingCircle 66443.7 9464.84 14%

10 Worli 72974.5 7576.5 10%11 Sewri 33245.5 10031.76 30%12 Dharavi 51695.04 9208.8 18%13 Matunga East 66386 8098 12%14 Parel 44544 14215.6 32%15 Tata Hospital Parel 70081.4 10724.4 15%16 Mahim 72543.6 11343.6 16%17 Mahim East 67449 26242 39%18 Lalbaugh- Parel 60722 9534 16%19 Worli - Prabha DEVI 68179.6 7539.6 11%20 Dadar - Prabha DEVI 70643 10003 14%21 Parel village 57953.4 13450.4 23%22 Mahim 66972 10336 15%23 Mahim East 80578.4 14288.4 18%24 King Circle 61484 8995 15%25 Worli- Prabha devi 76052 10223 13%26 Lower Parel 53383.8 9879.4 19%27 Tata Hospital-Bhoivada 74036.8 11036.8 15%28 Wadala- Antop hill 72007.4 8018.4 11%29 Wadala (Ram Mandir) 62668 7568.88 12%

Appendix 4: Salesperson wise Sales Breakdown

DSS Surjeet

Specification

Area DadarEast

Outlets 23Handlers 12

Sales Data( INR)

Total Sales with Cigarettes 90403

Biscuit 5985Jar 1290Bingo 3746.4

Match Box 1470

Noodles 0Soaps 0FMCG Sales 12491.4

Field Observation:

1. Total shops closed= 6

2. Retailers complain on display payment.

3. FMCG category- Out of Total sales, comprises biscuits maximum share of 48%, followed bybingo 30% , matchboxes 12%, jar 10%

4. Most of the shop keepers do the payment on credit basis in this area.

5. Total RA shops - 3

6. Industry Type shops- 7

7. Shubhas café is one of the largest retailer of Bingo in this area

DSS R P SinghSpecificationArea Dadar – MahimOutlets 26Handlers 12

Sales Data( INR)Total Sales withCigarettes

53141

Biscuit 2145Jar 990Bingo 1745.6

Match Box 765Noodles 0Soaps 0FMCG Sales 5645

Field Observation:


2. Not taking enough stock due to LBT bandh.

3. FMCG category- Out of Total sales, biscuits comprises maximum share of 38%, followed bybingo 31% ,matchboxes 14%, Jar7%.

4. Retailers complain on packaging of Bingo- Inconvenience is observed in taking outindividual units

5. Total RA shops-0

6. Industry Type shops-6

7. Small retailer in terms of bingo purchases in between 50 to 70 bingo. Maharashtra PCO,Kaushal Tea, B K Shop.

DSS Sitaram

SpecificationArea MahimOutlets 26Handlers 11

Sales Data( INR)

Total Sales withCigarettes 60601Biscuit 5940Jar 1220Bingo 1230.9

Match Box 780Noodles 0Soaps 0

FMCG Sales 9170

Field Observation:

1. Demand for the licks and natkaht mango.

2. FMCG category- Out of Total sales, biscuits comprises maximum share of 65%, followed bybingo 13% ,Jar 13%,matchboxes 9%.

3. Some of the shopkeepers prefer buying from Kamat wholesaler.

4. Bell match box was having more presence.

5. No display of FMCG products at any shop.

6. Total RA shops- 4


8. Big retailers of bingo in this area Shreyas Foundation, China Corner Pan shop, Janta PanShop

DSS S P GuptaSpecificationArea Matunga RoadOutlets 16Handlers 6

Sales Data( INR)Total Sales with Cigarettes 41334Biscuit 9387Jar 0Bingo 1498.5

Match Box 1470Noodles 640.8Soaps 0

FMCG Sales 12996.35

Field Observation:


2. Less buyers due to summer vacations

3. FMCG category- Out of Total sales, biscuits comprises maximum share of 72%, followed bybingo 12%,matchboxes 11%., noodles 5%



6. Some of the biggest retailers in the area are Katil Pan Shop , Ratnagiri shop.

DSS Sharma(Ambernath)SpecificationArea Parel village-lalbaughOutlets 23Handlers 12Sales Data( INR)

Total Sales with Cigarettes 48779Biscuit 6905Jar 440Bingo 2996Match Box 510Noodles 770Soaps 0FMCG Sales 11621

Field Observation:


2. Display regarding complains.

3. Balaji waffers are more popular.

4. FMCG category- Out of Total sales, biscuits comprises maximum share of 59%, followedby bingo 26% ,Noddle's 7%,matchboxes & jar 4%.

5. Some shopkeepers have issue of obsolete product replacement.

6. Total RA shops-

7. Industry Type shops-8. Sai Kripa Bidi shop , Panchal Pan shop, Ramesh pan shop, Shubhak corner, Ganesh

general store are big bingo retailer in this area.

DSS S P PandeySpecificationArea Dadar (Shiva Sena Bhavan)Outlets 23Handlers 12

Sales Data( INR)Total Sales with Cigarettes 90403Biscuit 3985Jar 1290Bingo 3746.4

Match Box 1470Noodles 0Soaps 0

FMCG Sales 10491.5

Field Observation:


2. FMCG category- Out of Total sales, biscuits comprises maximum share of 38%, followed bybingo 36%,matchboxes 14 % & jar 12%,

3. Licks in demand but no stock available.



6. Some of the biggest retailers in the area are sunflower bidi shop, Sai kripa general store

DSS S R GuptaSpecificationArea Parel( KEM Hospital)Outlets 26Handlers 11Sales Data( INR)Total Sales withCigarettes 59988Biscuit 7464.5Confectionary 0Bingo 1498Match Box 780Noodles 0Soaps 0FMCG Sales 9743

Field Observation:


2. FMCG category- Out of Total sales, biscuits comprises maximum share of 77%,followed by Bingo 15% & matchboxes 8%

3. Small Biscuits of Rs 5 were more in demand. Chocolate flavor is most preferred

4. Retailers complain on packaging of Bingo- Inconvenience is observed in taking outindividual units out of batch.

5. Retailers expect better scheme on wafers.



8. Not much sale of bingo in this area. Some of the potential retailers Shettye Bidi Shop,Shri Sai general store.

DSS SatyaSpecificationArea MatungaOutlets 26Handlers 12Sales Data( INR)

Total Sales with Cigarettes 66443.7Biscuit 5109Jar 0Bingo 2247.84Match Box 1470Noodles 162Soaps 476FMCG Sales 9464.84

Field Observation:


2. FMCG category- Out of Total sales, biscuits comprises maximum share of 54%, followed byBingo 24%, matchboxes 16%,soap 5%,noodles 2%.


4. Industry Type shops – 6

5. Some of the biggest bingo retailers Manohar Bidi Shop, Shanti pan shop.

DSS SandeepSpecificationArea WorliOutlets 37Handlers 16Sales Data( INR)Total Sales withCigarettes 72974.5Biscuit 3828Jar 780Bingo 1498.5Match Box 1470Noodles 0Soaps 0FMCG Sales 7576.5

Field Observation:


2. FMCG category- Out of Total sales, biscuits comprises maximum share of 51%, followed bybingo 20%, matchboxes 19%, jar 10%.

3. Total RA shops-3

4. Industry Type shops – 8

5. Some of the potential bingo retailers of the area are Vikram Anil General Store, ShriSiddhivinayak pan shop.

DSS P P GuptaSpecificationArea SewriOutlets 28Handlers 13Sales Data( INR)

Total Sales with Cigarettes 33245.5Biscuit 6288Jar 1220Bingo 2033.76Match Box 490Noodles 0Soaps 0FMCG Sales 10031.76

Field Observation:


2. FMCG category- Out of Total sales, biscuits comprises maximum share of 63%, followedby Bingo 20% , jar 12%,matchboxes 5%

3. Retailers expect better scheme on wafers.



6. Rupa pan bidi shop is biggest retailer of bingo. There are 4 shops who are average buyercan be pushed more Mahakali Pan shop, Ratnagiri General Store, Vitthal Pan Bidi Shop,Sabhista Pan Bidi Shop

DSS BrijeshSpecifications

Area DharaviOutlets 33Handlers 15Sales Data( INR)

Total Sales with Cigarettes 51695.04Biscuit 4392Jar 0Bingo 2783.04Match Box 1470Noodles 1284.48Soaps 0FMCG Sales 9208.8

Field Observation:


2. FMCG category- Out of Total sales, biscuits comprises maximum share of 48%, followed byBingo 38%, noodles 13%.

3. Retailers expect better scheme on biscuit & bingo.

4. Total RA shops-2


6. Some of the big retailers of the area are Sada Shiv Pan Shop, Murlidhar Pan Shop, Sai nathgeneral store. Average bingo buyers retailors Kotiyan General Store, Jaiswal Pan Shop

DSS RamgopalSpecifications

Area DharaviOutlets 23Handlers 12

Sales Data( INR)Total Sales with Cigarettes 33198.3Biscuit 6170Jar 0Bingo 1498.5Match Box 1470Noodles 640.8Soaps 0FMCG Sales 9779.3Noodles 0In-cense Stick 0Soaps 0FMCG Sales 10336

Field Observation:


2. 5/- biscuit and cookies are more popular among the retailors.

3. FMCG category- Out of Total sales, biscuits comprises maximum share of 63%, followed bybingo 15% ,matchboxes 15%,noodles 7%.

4. Most of the retailers are small time buyer so need to refill the stock on shorter frequency.

5. Prefer to take stock from wholesaler



8. Sai kripa General Store is biggest retailer in terms of Bingo.

DSS Name- SatyaSpecificationsArea Matunga EastOutlets 31Handlers 12Sales Data( INR)


Biscuit 3672Confectionery 1230

Bingo 1764Match Box 500Noodles 0In-cense Stick 0Soaps 932FMCG Sales 8098

Field Observation:

1. Out of total sales the percentage of FMCG category is 12%.2. FMCG category- Out of Total sales, biscuits comprises maximum share of 45%, followed by

bingo 22% , confectionery 15 %,Soap 12 %,matchboxes 6%.3. DS uses his cycle also on the CDM day which helps in reducing the distribution lead time.4. Total RA shops - 65. Industry Type shops- 66. Some of the biggest bingo retailers Manohar Bidi Shop, Shanti pan shop.

DSS Name- KeshavSpecificationsArea ParelOutlets 31Handlers 17Sales Data( INR)

Total Sales with Cigarettes 44544Biscuit 8806Confectionery 1960Bingo 1605.6Match Box 0Noodles 872In-cense Stick 0Soaps 972FMCG Sales 14215.6

Field Observation:

1. Out of total sales the percentage of FMCG category is 32%.2. FMCG category- Out of Total sales, biscuits comprises maximum share of 60%, followed

by confectionery 14 %, bingo 11% , Soap 7 %,Noodles 6%.3. 10 /- noodles was more in demand DS was short of stock.4. On the distribution time biscuit was broken.5. Pineapple flavor biscuit was in demand.6. Matri Chaya shop was keeping Marlboro in ITC display.7. Total RA shop- 28. Industry Type shops-109. Some of the biggest bingo retailers are Kamal Pan Shop, VIP pan shop. There are many

small bingo retailers in this area.

DSS Name- SubhasSpecificationsArea Tata Hospital( Parel)Outlets 39Handlers 20Sales Data( INR)Total Sales with Cigarettes 70081.4Biscuit 6422Confectionery 330Bingo 2822.4Match Box 490Noodles 660In-cense Stick 0Soaps 0FMCG Sales 10724.4

Field Observation:


by bingo 26% ,Noodles 6%, match box 5 %,Confectionery 3 %,3. Shopkeepers have complaint regarding DND replacement.4. Bingo DS offer better scheme.5. In confectionery category licks and frooti fun in demand.6. Work was on hold due to heavy rain for almost an hour.7. Total RA shops- 28. Industry Type shops-109. Some of the biggest retailer of bingo are Shah Nanji Bhai Dharamshi shop, Shri Pan Shop,

Star Pan Shop, Anil Bidi Shop, Shri Kripa Pan bidi Shop, Anil tobacco & general store.

DSS Name- S N GuptaSpecificationsArea MahimOutlets 39Handlers 20Sales Data( INR)Total Sales with Cigarettes 72543.6Biscuit 7380Confectionery 990Bingo 2973.6Match Box 0Noodles 0In-cense Stick 0Soaps 0FMCG Sales 11343.6

Field Observation:1. Out of total sales the percentage of FMCG category is 15%.2. FMCG category- Out of Total sales, biscuits comprises maximum share of 65%, followed

by bingo 26% , Confectionery 9 %.3. Shopkeepers have complaint regarding DND replacement.4. Total RA shops – 15. Industry Type shops- 106. Some of the biggest retailer of bingo in the area are Yadav pan Shop,A- One general Store,

Durga Pan Bidi shop

DSS Name- VinodSpecificationsArea MahimOutlets 39Handlers 20Sales Data( INR)Total Sales with Cigarettes 67449Biscuit 22140Confectionery 1780Bingo 1512Match Box 500Noodles 0In-cense Stick 310Soaps 0FMCG Sales 26242

Field Observation:


by Confectionery 7 %, bingo 6%, match box 2%,In-cense Stick 1%.3. DS was having 180 extra bingo already in the market.4. Noodles not with DS was ordered by two shop5. Total RA shops-46. Industry Type shops-117. Some of the biggest bingo retailers are Shreyas Foundation,China Food Corner, Janta Pan

Shop. There are many average bingo retailers in the area

DSS Name- V S PandeySpecificationsArea Lalbaugh- ParelOutlets 37Handlers 19Sales Data( INR)Total Sales with Cigarettes 60722Biscuit 5798Confectionery 880Bingo 2856Match Box 0Noodles 0In-cense Stick 0Soaps 0FMCG Sales 9534

Field Observation:


bingo 30%, Confectionery 7 %.3. Dark Fantasy & Chocofill not with DS demanded by 4 shops.4. Licks in demand.5. Total RA shops-16. Industry Type shops-97. Some of the biggest retailers of the area are Manohar Pan Shop. Many average bingo retailer

shop like Jai Santoshi Mata Stall, Bandhkare Bidi Shop, J K Pan bidi shop.

DSS Name- KamleshSpecificationsArea Lower Parel - Prabha DEVIOutlets 38Handlers 20Sales Data( INR)Total Sales with Cigarettes 68179.6Biscuit 3996Confectionery 1205Bingo 1908.6Match Box 430Noodles 0In-cense Stick 0Soaps 0FMCG Sales 7539.6

Field Observation:


bingo 25%, Confectionery 16 %, Match Box 6%.3. Bingo was short in the area.4. Total RA shops-75. Industry Type shops-96. In this area most of the retailers are average bingo buyers. Sai Pan Shop, Vijay Store, Sudama

Pan Shop, New Royal Pan Shop, Jai Maharashtra Pan Shop,Shirodkar pan Shop, Sddhant PanShop

DSS Name- Arvind SinghSpecificationsArea Dadar - Prabha DEVIOutlets 39Handlers 20Sales Data( INR)Total Sales withCigarettes 70643Biscuit 5442Confectionery 1205Bingo 2856Match Box 500Noodles 0In-cense Stick 0Soaps 0FMCG Sales 10003

Field Observation:


by bingo 29%, Confectionery 12 %, Match Box 5%.3. Diamond wafers are more popular in this area.4. Most of the shopkeepers have stop taking bingo because of the difficulty they face in

DND replacement.5. Display issue.6. Bingo denied on the ground of rainy season.7. After packaging of the products it reaches after one month to the shopkeepers.8. Burbon biscuit asked by shop keeper .9. Total RA shops-110. Industry Type shops-811. Some of the biggest bingo retailers in the area Daya Pan Shop, Narkar pan Bidi Shop,Shri

Sai Store. Average bingo retailers Mahesh pan Shop, OM communication centre, Onkartobacco shop

DSS Name- RameshSpecificationsArea Parel villageOutlets 30Handlers 17Sales Data( INR)Total Sales withCigarettes 57953.4Biscuit 7888Confectionery 700Bingo 2822.4Match Box 500Noodles 1540In-cense Stick 0Soaps 0FMCG Sales 13450.4

Field Observation:


bingo 21%, noodles 11,Confectionery 5 %, Match Box 4%.3. Complaint on the Aim match box there are too many waste sticks inside the box4. Gagad general store is facing some issue from BMC regarding the display.5. Total RA shops- 56. Industry Type shops-97. Sai Kripa Bidi shop , Panchal Pan shop, Ramesh pan shop, Shubhak corner, Ganesh general

store are big bingo retailer in this area.

DSS Name- S K GuptaSpecificationsArea MahimOutlets 30Handlers 16Sales Data( INR)Total Sales with Cigarettes 66972Biscuit 5868Confectionery 440Bingo 3528Match Box 500Noodles 0In-cense Stick 0Soaps 0FMCG Sales 10336

Filed Observation:


bingo 34%, Match Box 5%,,Confectionery 4 %.3. Bingo strip issue.4. Total RA shops-85. Industry Type shops-66. Some of the biggest retailer of bingo in the area are Yadav pan Shop,A- One general Store,

Durga Pan Bidi shop

DSS Name- VinodSpecificationsArea MahimOutlets 39Handlers 20Sales Data( INR)Total Sales with Cigarettes 80578.4Biscuit 8026Confectionery 1560Bingo 2822.4Match Box 1000Noodles 880In-cense Stick 0Soaps 0FMCG Sales 14288.4

Field Observation:

1. Out of total sales the percentage of FMCG category is 21%.2. FMCG category- Out of Total sales, biscuits comprises maximum share of 56%,

followed by bingo 26%,Confectionery 11 %, Match Box 7%, Noodles 6%.3. Total RA shops- 44. Industry Type shops-105. Some of the biggest bingo retailers are Shreyas Foundation,China Food Corner. There

are many average bingo retailers area.

DSS Name- SatyaSpecificationsArea Matunga EOutlets 31Handlers 12Sales Data( INR)Total Sales withCigarettes 61484Biscuit 2382Confectionery 1260Bingo 2848Match Box 1000Noodles 880In-cense Stick 625Soaps 0FMCG Sales 8995

Field Observation:

1. Out of total sales the percentage of FMCG category is 16%.2. FMCG category- Out of Total sales, bingo comprises maximum share of 32%, followed

by biscuit 26%,Confectionery 14 %, Match Box 11%, Noodles 10%, In-cense Stick 7%.3. Shop keeper expecting better scheme on biscuits.4. Work was on hold for very long due to rain.5. Total RA shops- 6

6. Industry Type shops -6

7. Some of the biggest bingo retailers Manohar Bidi Shop, Shanti pan shop.

6.

DSS Name- KamleshSpecificationsArea Worli- Prabha deviOutlets 38Handlers 20Sales Data( INR)Total Sales withCigarettes 76052Biscuit 6651Confectionery 1260Bingo 1512Match Box 500Noodles 0In-cense Stick 300Soaps 0FMCG Sales 10223

Field Observation:


by bingo 15%,Confectionery 12 %, Match Box 5%, Noodles 3%.3. Complaint regarding the bingo delivery not different flavor’s provided.4. Total RA shops- 75. Industry Type shops-96. In this area most of the retailers are average bingo buyers. Sai Pan Shop, Vijay Store,

Sudama Pan Shop, New Royal Pan Shop, Jai Maharashtra Pan Shop,Shirodkar pan Shop,Siddhant Pan Shop

DSS Name- BharatYadavSpecificationsArea Lower ParelOutlets 38Handlers 20Sales Data( INR)Total Sales withCigarettes 53383.8Biscuit 4927Confectionery 750Bingo 2822.4Match Box 500Noodles 880In-cense Stick 0Soaps 0FMCG Sales 9879.4

Field Observation:


bingo 29%, Noodles 9%.,Confectionery 8 %, Match Box 5%,3. Total RA shops-54. Industry Type shops-105. Some of the biggest retailers of bingo are Neelkanth Pan Shop, K Square, Nisarg ice cream &

communication, Maharashtra pan shop

DSS Name- RatanSpecificationsArea Tata Hospital-BhoivadaOutlets 39Handlers 20Sales Data( INR)Total Sales withCigarettes 74036.8Biscuit 7034.4Confectionery 680Bingo 2822.4Match Box 500Noodles 0In-cense Stick 0Soaps 0FMCG Sales 11036.8

Field Observation:


bingo 26%, Confectionery 6 %, Match Box 5%.3. Delivered wrong stock to the customer.4. One shop keeper has delivery timing issue.5. Total RA shops - 26. Industry Type shops- 127. Some of the biggest retailer in the area are Viklang PCO shop, Sitaram Asreni shop, Sai Kripa

Bidi shop.

DSS O P SharmaSpecificationArea WadalaOutlets 31Handlers 19Sales Data( INR)


Biscuit 3456Jar 1360Bingo 2252.88Match Box 500Noodles 0Soaps 0FMCG Sales 7568.88

Field Observation:


bingo 30%, Confectionery 18 %, Match Box 7%.3. Total RA shops - 34. Industry Type shops – 105. Potential bingo retailers Nanji bhai Shop, Pragati General Store.

DSS Name- KLOPSpecificationsArea Wadala- Antop hillOutlets 39Handlers 20Sales Data( INR)Total Sales withCigarettes 72007.4Biscuit 3436Confectionery 1260Bingo 2822.4Match Box 500Noodles 0In-cense Stick 0Soaps 0FMCG Sales 8018.4

Field Observation:

1. Out of total sales the percentage of FMCG category is 11%.2. FMCG category- Out of Total sales, biscuits comprises maximum share of

43%, followed by bingo 35%, Confectionery 16 %, Match Box 6%.3. Frooti fun in demand.4. Cashew biscuit demanded not with DS.5. Soap box kept in market.6. Avinash bidi shop (RA shop) no visibility of bingo7. Total RA shops - 48. Industry Type shops - 99. Some of the potential retailers in the area are Wadala Bidi Shop, Afgan Store,

Amba Bhavani Provision store, AAlekh bidi shop, Guru kripa Pan shop

Appendix 5: Various SKU sales data (INR)

SKU Total Sales of Individual SKU (INR)Biscuit 180922.9Confectionery 26080Bingo 69074.52Match Box 21535Noodles 9210.08In-cense sticks 1235Soaps 2380

Graphical Representation:

Biscuit58%

Confectionery9%

Bingo22%

Match Box7%

Noodles3%

In-sence sticks0%

Soaps1%

FMCG SALES

Appendix 6: DSS Rating for FMCG Sales

DSS rating according to FMCG sales on CDM day:

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

O PSharma

R P Singh Sandeep KLOP Satya Kamlesh

Under achievers

Under achievers

0

2000

4000

6000

8000

10000

12000

14000

Average Achiever

Average Achiever

0

5000

10000

15000

20000

25000

30000

Keshav Vinod Ramesh Satya Vinod

Satisfactory Achiever

Satisfactory achiever

Appendix 7: DSS Rating for Bingo Sales

Bingo Sales Wise DSS performance all data in INR:

0

200

400

600

800

1000

1200

1400

1600

Sitaram S P Gupta S R Gupta Sandeep Ramgopal Kamlesh

Bingo Underachievers

Bingo Underachievers

0

500

1000

1500

2000

2500

3000

Bingo Average Achievers

Bingo Average Achievers

0

500

1000

1500

2000

2500

3000

3500

4000

Bingo Push Achievers

Bingo Push Achievers

Acknowledgements

Mr. Manish Maheshwari, Assistant Branch Manager, ITC Ltd., Mumbai for assigning thisproject to me.

The above report has been prepared under the valuable guidance and inputs provided by myMentor, Kiran Churi Area Manager, ITC Ltd., Mumbai

Significant information & guidelines was made available by Mr. Nikhil Vithalani, AreaExecutive , ITC Ltd, Mumbai

1

Ac

study of cdm in fmcg sector

Business

fmcg sales

t e d i t c

r d e s t

f o r t

b e r s r

total sales breakdown

overview of bingo

various fmcg products