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Project Report On ITC

The project report titled 'Study on Distribution Potential - ITC’25 – Tobacco' by Bidisha Nayak focuses on analyzing the distribution landscape of ITC's tobacco products in specific areas of Kolkata. It employs a combination of qualitative and quantitative research methodologies to assess outlet coverage, availability of competitive brands, and in-shop visibility, while also aiming to update the retail universe in the Breeze SW Application. The report includes findings, recommendations, and insights gained from direct market engagement and data collection efforts during the project period.

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0% found this document useful (0 votes)
75 views34 pages

Project Report On ITC

The project report titled 'Study on Distribution Potential - ITC’25 – Tobacco' by Bidisha Nayak focuses on analyzing the distribution landscape of ITC's tobacco products in specific areas of Kolkata. It employs a combination of qualitative and quantitative research methodologies to assess outlet coverage, availability of competitive brands, and in-shop visibility, while also aiming to update the retail universe in the Breeze SW Application. The report includes findings, recommendations, and insights gained from direct market engagement and data collection efforts during the project period.

Uploaded by

Bidisha Nayak
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Project Report on

“STUDY ON DISTRIBUTION POTENTIAL - ITC’25 –


TOBACCO”
REPORT SUBMITTED IN PARTIAL FULFILLMENT OF
REQUIREMENTFOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
PREPARED BY

BIDISHA NAYAK

VU Registration No – VP245040604 OF 2024-25


Roll No – VU/PG/504/24/09/04-IIS NO: 0055
MAJOR: MARKETING; MINOR: FINANCE

UNDER THE GUIDANCE OF

Prof. TAPAS CHAKRABORTY ITC LIMITED

SUBMITTED TO

Eastern Institute for Integrated Learning in


Management, Kolkata Affiliated to
Vidyasagar University

AUGUST, 2023
CERTIFICATE
DECLARATION

I, Bidisha Nayak, do hereby declare that this report titled “STUDY ON


DISTRIBUTION POTENTIAL - ITC’25 – TOBACCO”
is submitted by me for the partial fulfilment of Master of Business Administration in
Vidyasagar University.
This report is exclusively prepared by me and has not been submitted to any other
institutions or published anywhere before.
DATE: BIDISHA NAYAK
Roll No – VU/PG/504/24/09/04-IIS NO: 0055
VU Registration No – VP245040604 OF 2024-25
PLACE: KOLKATA MBA, SECOND SEMESTER
EIILM, KOLKATA
ACKNOWLEDGEMENTS
At the outset, I would like to thank Mr. Bandhu Chandra, Area Sales Manager of ITC
Limited and Mr. Sujoy Samaddar, Area Executive of ITC Limited for their guidance to
undertake this project.
I express my sincere gratitude to Prof. Tapas Chakraborty, Faculty, EIILM, Kolkata
who has sincerely provided me with critical suggestions and valuable insights which
enabled me to complete this project and bring outthis report in the best way possible.
I would take this opportunity to thank Prof. (Dr.) R. P Banerjee, Chairman & Director,
EIILM, Kolkata and other faculty members of the institute for their cooperation and
support.
I am also thankful to all others persons who directly or indirectly helped me to accomplish
my project work.

DATE: BIDISHA NAYAK


Roll No – VU/PG/504/24/09/04-IIS NO: 0055
VU Registration No – VP245040604 OF 2024-25

PLACE: KOLKATA MBA, SECOND SEMESTER


EIILM, KOLKATA
EXECUTIVE SUMMARY
In this project, I have collected data from the outlets in selected areas of Baranagar- Tabin
Road, Sinthir More, Baruipara, Jhulon Tala, Dakshineshwar, Bonhoogly, Alambazar,
Kutighat, Paikpara, Dunlop, Tantipara The instrument of data collection was structured
questionnaire and personal interview. With the data, we have tried to determine the outlet
coverage by the DSM, the types of outlets covered, availability of ITC products and products
of competitive brands such as Marlboro and Total, the reasons why retailer prefers ITC
products, channel service status, order delivery status, in-shop visibility of the brands.
I have also added new outlets, reactivated inactive outlets, registered outlets in the SW
Application called Breeze. I have accompanied several DSM in their beats to collect the data.
Meanwhile I have monitored their work, learned from them, and helped them in achieving
their targets and increasing sales.
OBJECTIVE: In this project the objective is to update the retail universe in Breeze SW
Application, identify distribution gap, establish channel service status, add new outlets to the
universe, find out availability of competitor brands with respect to ITC, increase product
lines, establish in-shop visibility.
METHODOLOGY: The Research Methodology consists of Descriptive and Exploratory
Research with Quantitative and Qualitative Primary data conducted on all the retailers (Pan,
General Merchants, Grocery, Tea) who sell tobacco and cigarettes in the aforementioned
areas. I have used Judgemental Sampling as sampling technique.
FINDINGS & RECOMMENDATIONS: In this project we have come to know about many
factors related to the market. Some of them we got from our collected data and some are
from our experience in the market. In this project we have also recommended some things
which we think can be applicable to make the situation better.
CONTENTS
SL NO PARTICULARS PAGE NO.

1 INTRODUCTION 1-3

2 METHODOLOGY 4

3 PROCESSES & ACTIVITIES 5

4 DATA ANALYSIS & INTERPRETATION 6-17

5 FINDINGS 18

6 OBSERVATIONS 19

7 RECOMMENDATIONS 20

8 ACHIEVEMENTS 21

9 LEARNINGS 22

10 CHALLENGES – PROBLEMS & ISSUES 23

11 CONCLUSION 24

12 BIBLIOGRAPHY 25

13 ANNEXURE 26-27
LIST OF TABLES
SL NO TABLES PAGE NO
1 DATA ANALYSIS ON DISTRIBUTION COVERAGE 6

2 DATA ANALYSIS ON OUTLET TYPE 7


3 DATA ANALYSIS ON AVAILABILITY OF 8-9
COMPETITITON – ECONOMY CATEGORY

4 DATA ANALYSIS ON AVAILABILITY OF 10


COMPETITION – POPULAR CATEGORY

5 DATA ANALYSIS ON BRAND PREFERENCE 11


6 DATA ANALYSIS ON IN-SHOP VISIBILITY 12
7 DATA ANALYSIS ON S&D OF MODERN 13-16
VARIANTS
8 DATA ANALYSIS ON MYSTERY AUDIT REPORT 17
LIST OF FIGURES
SL NO PARTICULARS PAGE NO

1 INDUSTRY DETAILS 1

2 COMPANY DETAILS 2

3 OBJECTIVES OF THE STUDY 3

4 RESEARCH DESIGN & SAMPLING DESIGN 4

5 PROCESSES & ACTIVITIES 5

6 DATA ANALYSIS ON DISTRIBUTION 6


COVERAGE
7 DATA ANALYSIS ON OUTLET TYPE 7

8 DATA ANALYSIS ON AVAILABILITY OF 8-9


COMPETITION – ECONOMY CATEGORY
9 DATA ANALYSIS ON AVAILABILITY OF 10
COMPETITION – POPULAR CATEGORY
10 DATA ANALYSIS ON BRAND PREFERENCE 11

11 DATA ANALYSIS ON IN-SHOP VISIBILITY 12

12 DATA ANALYSIS ON S&D OF CLASSIC 13


BALANCED TASTE
13 DATA ANALYSIS ON S&D OF CLASSIC 14
REFINED TASTE
14 DATA ANALYSIS ON S&D OF CLASSIC VERVE 15

15 DATA ANALYSIS ON S&D OF CLASSIC 16


ICE BURST
16 DATA ANALYSIS ON MYSTERY AUDIT 17

17 FINDINGS 18

18 OBSERVATIONS 19

19 RECOMMENDATIONS 20
20 ACHIEVEMENTS 21

21 LEARNINGS 22

22 CHALLENGES: PROBLEMS & ISSUES 23

23 CONCLUSION 24
INTRODUCTION
I have chosen STUDY ON DISTRIBUTION POTENTIAL - ITC’25 – TOBACCO as my
topic for SIP Report.

INDUSTRY:
FMCG are items that have a fast shelf turnover, at low-cost and do not need a lot of idea,
time, and financial investment to purchase. The margin of revenue on every private
FMCG product is less. Nevertheless, the big variety of products sold is what makes the
distinction. For this reason, earning in FMCG items always equates to the variety of
items sold. Quick Moving Consumer Item is a classification that describes a broad
variety of often required consumer items such as toiletries, soaps, cosmetics, oral care
products, textile care products, and other non-durables like glassware, bulbs, batteries,
paper items and plastic goods etc.
‘Quick Moving’ is in opposition to consumer durables such as kitchen appliances that are
generally changed once a year. The classification may consist of pharmaceuticals,
consumer electronic devices and packaged food items and beverages, although these are
typically classified separately. The term customer packaged goods are used
interchangeably with quick moving consumer product (FMCG).
Some of the largest and best understood examples of fast-moving consumer goods
businesses are Nestle, Hindustan Unilever, ITC Limited, Dabur etc. The FMCG Sector
represents consumer items needed for daily or frequent usage. The primary sections of
this sector are individual care, oral care, hair care, soap, cosmetics etc. there are also
products like household care such as family cleaners, material wash and branded and
packaged food, drinks such as health drinks, cereals, dairy products, chocolates etc.
The Indian FMCG sector is essential to the Nation’s GDP. It is the 4th largest sector in the
Indian economy and is accountable for 5% of the total factory work in India. The industry
also creates employment for many people in downstream activities, much of which is
distributed in small towns and rural India. The industry has witnessed strong growth in the
past decade. This has been due to liberalization, urbanization and increase in the
disposable incomes and altered lifestyle. Furthermore, the boom has also been fuelled by
reduction in excise duties, the reservation of from small-scale sector and the concerted
efforts of personal care companies to attract the burgeoning affluent segment in the
middle class through product and packaging innovations. Unlike the perception that the
FMCG sector is producer of luxury items targeted at the elite the sector meets the
everyday needs of the masses. The lower middle income group accounts for over 60% of
the sector’s sales. Rural markets account for 56% of the total domestic FMCG demand.
Many of the global FMCG majors have been present in the country for many decades. But
in the last 10 years, many of the smaller Indian FMCG companies have gained scale. As a
result, the unorganized and regional players have witnessed erosion in the market share.
The growth potential for FMCG companies looks promising over the long-term horizon,
as the per capita consumption of almost all products in the country is amongst the lowest
in the world.
.
COMPANY: ITC LIMITED
ITC is one of India's foremost private sector companies with a market
capitalisation of nearly US $14 Billion and a turnover of over US $5
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 ranks
among India's 10 Most Valuable (Company) Brands, in a study
conducted by Brand Finance and published by the Economic Times. ITC
also ranks among Asia's 50 best performing companies compiled by
Business Week.
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.
TOBACCO DIVISION OF ITC LIMITED:

ITC is the market leader in cigarettes in India. With a portfolio of


invaluable brands, ITC's cigarette business stands testimony to the
company's unwavering and unrivalled commitment to quality,
innovation, and consumer focus.
More than one hundred years of expertise in developing products to
match the evolving taste of consumers, has led to a portfolio of brands
including, Insignia, India Kings, Classic, Gold Flake, American
Club, Wills Navy Cut, Players, Scissors, Capstan, Berkeley,
Bristol, Flake, Silk Cut, Duke & Royal.
The Company is characterised by a single-minded focus on continuous value
creation for consumers through significant investments behind innovative
product designs, state-of-the-art manufacturing technology & superior
marketing and distribution.
ITC's cigarettes are manufactured in state-of-the-art factories at
Bengaluru, Munger, Saharanpur, Kolkata and Pune, with cutting-edge
technology & excellent work practices benchmarked to the best
globally.
In overseas markets, ITC's cigarette business continues to maintain
high standards of international quality and competitiveness. West Asia
is a key export region for ITC and we offer a wide portfolio of high-
quality cigarettes in this region. With a Portfolio of brands under the
Classic, Wills, Scissors and ACE Umbrella Trademarks.
ITC has cemented its international standing being the 3rd largest
player in the countries of Bahrain & Qatar. ITC was also the first
company to introduce a flavour-on-demand (capsule) product in the
economy industry segment in the West Asia region.
OBJECTIVES OF THE STUDY:

• To update retail outlet universe in “BREEZE” SW Application

• To identify distribution gap

• To establish availability of competitive brands

 Economy category

 Popular category

• To establish Channel Service Status

• Reactivate listed outlets and open new outlets

• To track In-Shop Visibility (Merchandising) of competition

• To establish in-shop promotional activities

• To increase product lines ~ range & value

ADDITIONAL OBJECTIVES:
 To increase penetration of Modern Variants in outlets as per the benchmark
norms. The specified Modern Variants – Classic Balanced Taste, Classic
Refined Taste, Classic Verve, Classic Ice Burst, Flake Insta Fresh

 Mystery Audit in input outlets.


METHODOLOGY

There are certain methods used for data collection in research – for research design, for
data refining, and for data collection, analysis, and interpretation. These are research
methods which helps the researcher to find answers to research problems. The step-by-
step process of conducting the research is known as Research Methodology.

RESEARCH DESIGN:
• Type of Research – Exploratory and Descriptive Study
• Type of Data – Quantitative and Qualitative
• Classification of Data – Primary
• Instrument of Data Collection – Personal Interview and Structured Questionnaire

SAMPLING DESIGN:
• Population – All the retailers (Pan, General Merchant, Grocery, Tea) who sell
tobacco in selected areas of Baranagar- Tabin Road, Sinthir More, Baruipara, Jhulon
Tala, Dakshineshwar, Bonhoogly, Alambazar, Kutighat, Paikpara, Dunlop, Tantipara,
Ratan Babu Road, Ananya, MNK Road, Bireswar Dhol Lane, Lokkhi Lal Mullick Lane,
Nimchand Moitra Street, Bidyatan Sarani, SPI Lane, RIC More, Lake View.
• Sample Frame – Available
• Sampling Technique – Judgemental Sampling
• Sampling Size – 241
PROCESSES & ACTIVITIES

PROCESSES:
• Received brief of company and working process during SIP
• Received training on product knowledge, supply chain
• Allocated markets/ towns/ area/ distributor
• Developed data collecting instrument – Questionnaire
• Visited distributor at the start of working day to gather market information
• Visited distributor at the end of working day to follow up
• Captured responses on the market survey questionnaire sheet
• Collected information about sale of Modern Variants
• Identified input outlets of the company under the area governed by that
specific Distribution point

ACTIVITIES:
• Convinced the retailers in the market to sell range
• Supported the DSM with their ‘Breeze’ SW Application
• Documented competitive brand availability in the outlets
• Visited the General Merchants, Pan Shop, Tea Stalls, Grocery Stores
• Sold/Placed new product lines
• Identified uncovered outlets that are listed
• Identified new outlets that are not visited
• Educating the DSM about Breeze SW Application
• Conducted Mystery Audit in input outlets of the company
PROCESSES & ACTIVITIES

PROCESS
• In company Briefing of categories of business
• Personal introduction
• Product knowledge
• Market working machine-"Tejas”
• Allocated market
• Provided billing machine- “Tejas”
• Explained how to work on – “Tejas”
• Check availability of competitive brands focus on malboro

ACTIVITIES
• Visited WD (Wholesaler/Distributor) points daily for regular market visits.
• Observed tasks and responsibilities assigned to Distribution Salesmen (DS) in the
field.
• Interacted with retailers to understand their feedback on products and services.
• Identified and added new retail outlets while investigating why some retailers
purchase from indirect channels instead of company-authorised ones.
• Actively promoted new product Flake Insta Fresh to retailers by sharing detailed
specifications and benefits.
• Independently sold the new brand Flake Insta Fresh to retailers which enhanced the
given target to the designated WD point to me.
• Added potential outlets from new areas into the outlet universe as part of the CFP
(Channel Filling Project).
• Conducted a competitive analysis of Marlboro and its market presence.
• Worked with the merchandiser to ensure proper visibility and in-store branding for
focus brands like American Club, Flake Insta, and Gold Flake Insta.
DATA ANALYSIS & INTERRETATION

DISTRIBUTION COVERAGE

LISTED NOT LISTED COVERED NOT NEW


COVERED
519 36 532 7 20

COVERAGE

L
1%
NL
CV
2% NCV
47%
48% NEW

3%

FINDINGS:
• 48% of the outlets are covered and 46% of outlets are listed.
• 3% of the outlets are not listed.
• 20 new outlets have been covered and added to the outlet universe.
• Portion consisting with lower percentages showing a scope for expansion.
• DSs are performing strongly only in listed and covered outlets.

SUGGESTIONS:
• DSs should focus more on the low-coverage segments.
• Introduce rewards or recognition for cigarette DSs and other DSs as well for adding
and activate new outlets.
• Ensuring follow-up and regular visit to the NCV and New outlets.
• Offer promotional support or loyalty schemes to convert NL outlets into loyal ones.
• Add new DSs to ensure maximum area coverage.
OUTLET TYPE
PAN GM KIR SST DPT

79 335 132 0 0

OUTLET TYPE
400
350 335

300
250
200
150 132
100 79
50
0 0
0
PAN GM KIR SSST DPT

OBSERVATIONS:
• GM dominate the outlet coverage with the number of 335 that indicating they are the
primary retail channel.
• Kirana stores also have significant presence with the number of 132, showing strong
reach in traditional neighbourhood retail.
• PAN outlets are comparatively fewer with the number of 79 but still noticeable part of
the network.
• No presence in modern trade formats like SSST and DPT highlighting a potential gap.
• The current distribution strategy appears focused on traditional trade, with
opportunities to expand into untapped retail formats
AVAILABILITY OF COMPETITION - ITC (UNITS)

ITC
GL.FLK FLK N.CUT S.CUT WAVE CLASIC A'CLUB I.KINGS

AVAILABILITY OF COMPET-
ITION - ITC(UNITS)
8000 6742
6141 5973
6000 5424
4841 4342
4000
2410
2000 1042
0
GL.FLK FLK N.CUT S.CUT WAVE CLASIC A'CLUB I.KINGS
ITC

FINDINGS:
• Gold Flake has the highest availability with 6742 units.
• Flake follows closely with 6141 units.
• Silk Cut shows strong presence with 5973 units.
• Navy Cut is moderately available with 4841 units.
• Classic brand has 5424 units, indicating consistent visibility.
• Wave is relatively lower with 4342 units available.
• American Club has limited presence with 2410 units.
• India Kings has the least availability with only 1042 units.

SUGGESTIONS:
• Increase visibility and stocks of I.KINGS, A’CLUB, and WAVE through targeted
promotional and trade push strategies.
• Offer trade incentives for retailers to stock and display underperforming or niche ITC
brands.
• Run awareness drives or sampling for low visibility brands.
AVAILABILITY OF COMPETITION VST/ NTC/ PMI/ GP
(UNITS)
VST NTC PMI GP
CHARM
SPECIAL S C'MINAR TOTAL RGNT RGNT SL M'BORO 4SQR
851 677 944 1126 472 362 3957 2295

3957

2295
1126
944
851

677

472

362
C H ARMS

M'B OR O
RGNT SL
SP EC I AL

RGNT
TOTAL

4 SQR
C 'MI
NAR

VST NTC P MI GP
2 - AVAI L ABI L I TY OF C OMP ETI TI ON - VST/ NTC / P MI / G P (UNI TS)

OBSERVATIONS:
• PMI’s M’BORO has the highest availability with 3957 units.
• GP’s 4SQR follows closely with 2295 units, showing strong market presence.
• VST’s total availability across Special(1023, Charms, C’minar, TOTAL is 3813 units.
• NTC’s Regent brand is at 472 units and Regent SL is the lowest among all with 362
units.
• GP and PMI dominate in competitive availability, while NTC has limited distribution
in comparison.
• VST maintains moderate availability mostly driven by its Special and C’minar
Variants.
AVAILABILTY OF ALL BRANDS(UNITS)
ITC VST NTC PMI GP
36915 3598 834 3957 2295

40000

35000

30000

25000

20000

15000

10000

5000

0
ITC VST NTC PMI GP
AVAILABILTY OF ALL BRANDS

FINDINGS:
• ITC leads the market significantly with the highest availability at 36,915 units.
• PMI holds the second position with a total availability of 3957 units.
• VST follows with 3598 units, showing moderate market presence.
• GP has 2295 units, competing with VST IN availability.
• NTC has the lowest availability among all with just 834 units.
SUGGESTIONS:
• Continue consistent supply and visibility of top-performing brands like Gold Flake,
Flake, Silk Cut to retain shelf space and customer loyalty.
• Track fast-growing competitors like PMI and GP by monitoring competitive activity.
• Use analytics to identify low-coverage pockets and optimize DS routes to enhance
outlet reach.
BRAND PREFERENCE
C-DMD AVL PRIC PRFT SCH CP
536 1780 2174 2926 2870 2700

C-DMD AVL PRIC PRFT SCH CP


1 4 4 5 5 5

The lower the number, the more is the preference*

FINDINGS:
• Consumer Demand ranks highest in preference with a score of 1, indicating strong
market pull.
• Availability is ranked 4, suggesting a gap between demand and on-ground availability.
• Price shows average consumer price satisfaction.
• Despite strong demand, brand suffers in trade profitability, scheme strength, and
consumer pull, needing improvement in value delivery and trade engagement.
SUGGESTIONS:
• Bridge the gap between high consumer demand and availability by strengthening
supply chain efficiency and outlet coverage.
• Introduce more attractive and frequent trade schemes to boost retailer participation.
• Focus efforts on high demand areas first, using consumer demand data to guide
coverage and stock decision
IN-SHOP VISIBILITY
ITC VST NTC PMI GP
1 5 5 3 2

The lower the number, the more is the preference*

FINDINGS:
• ITC ranks 1st, indicating the strongest in-shop visibility among all competitors.
• GP ranks 2nd,showing notable visibility efforts close behind ITC.
• PMI holds 3rd, position, reflecting moderate in-shop visibility.
• VST and NTC both ranked 5th ,indicating poor-in-shop visibility and minimal brand
presence.
SUGGESTIONS:
• Use creative, brand-specific point of sale materials like danglers, wobblers, shelf
talkers to reinforce brand presence.
• Identify outlets with lower ITC visibility and introduce focused merchandising
initiatives there.
• Equip DSs with clear visibility standards and checklists to maintain consistent in-shop
execution.
SALES & DISTRIBUTION
AVERAGE UNITS SOLD TOTAL ORDER
PRODUCT LINE VALUE (Rs)
2 3363 188604

14000

12000

10000

8000

6000

4000

2000

0
5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5
202 202 202 202 202 202 202 202 202 202 202 202 202 202 202 202 202 202 202 202
/ / / / / / / / / / / / / / / / / / / /
25 27 29 /1 /3 /5 /7 /9 11 13 15 17 19 21 23 25 27 29 31 /2
4/ 4/ 4/ 5 5 5 5 5 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 6

DT UNITS ORDER
Rs. Val.

OBSERVATIONS:
• Order Value shows fluctuation throughout the period, with noticeable peaks and dips.
• A sharp spike in order value is seen on the last date(02-07-2025), indicating a sudden
surge in sales or bulk order.
• Unit sold remain relatively stable with a slight upward trend but don’t vary drastically.
• Order value varies more than units, suggesting price variation per unit or differences
in product types sold.
FINDINGS

• Only the covered outlets showing strong coverage effort with 48%.

• DS performance is not that much efficient in order to serve not covered out-lets,

indicate DSs are mostly focusing on existing stores rather than expanding the universe.

• Customer demand is strong but availability pricing and schemes are weak.

• ITC ranks 1 in visibility, showing effective retail branding.

• The sharp spike in order value toward the end of the period is linked to a seasonal

campaign and offer.

• ITC’s sheer unit availability dominance shows its scale but the presence of strong

niche players like GP, PMI and VST shows growing fragmentation in consumer

choices.

• Competitors like 4SQR and M’Boro show strong presence despite smaller portfolios,

indicating focused brand investment.

• ITC’S brands such as Gold Flake, Flake, Cuts, Classic are value for money segments

and most widely accepted in the market


OBSERVATIONS
• DSs operating under CDM are expected to hit daily targets for non tobacco

ranges while their core task is cigarette sales.

• Insufficient or poorly structured incentives for DSs have led to dips in

motivation and productivity.

• High-end brands see sales volumes that vary sharply by outlet location and

surrounding population’s purchasing power.

• The recently launched Insta Fresh line under Flake umbrella has yet to gain

significant traction.

• Outlets serviced by DSs with stronger retailer relationships consistently

outperform peers.

• DSs often skip or deprioritize small-volume out-lets, those purchasing in

lower quantities that resulting in coverage gaps.


RECOMMENDATIONS

• Include tiered rewards based on outlet coverage, product mix, and new

market additions to drive productivity.

• Implement strict route discipline and digital tracking to ensure all outlets

including low-volume ones are regularly serviced.

• Conduct campaigns, sampling drives and retailer push schemes to improve

traction for new category products.

• Launch a program to reward loyal retailers with priority restocks or

branding kits to retain top-performing retailers .

• Counter with timely in-shop branding upgrades and trade-led promotions in

high-threat zones.
ACHIEVEMENTS

• Successfully added potential outlets from new areas into the outlet universe

as part of the CFP.

• Conducted spot testing at specific outlets to ensure product placement, stick

to pack ratio, pack to stick ratio and new brand trail generation.

• Actively participated in the Insta Run project and independently sold

ciggerattes, helping boost sales and directly contributing to meeting the

product’s target.

• Carried out sampling tests for Flake Insta Fresh, enhancing consumer

awareness and trial generation for new category.

• Conducted a competitive analysis of Marlboro and its market presence.

• Established direct engagement with retailers, gathering feedback on ITC

product performance, service satisfaction and competitive comparison.


LEARNINGS

• Learned how sales distribution and retail coverage operate in the


FMCG and tobacco industry.
• Learned about the product lines, SKUs, branding outlets types, DS
types, Tejas, Breeze and Dhanus initiatives and PTR/PTS offered
by the tobacco division.
• Learned how retailer relationships and DSM reputation directly
impact outlet performance.
• Gained hands-on experience in selling and promoting a new
product in a competitive market.
• Developed skills in identifying new outlets and understanding
market expansion strategies.
• Gained exposure to trade schemes, pricing strategies and consumer
preference dynamics.
• Learned how visibility and product placement influence in-store
brand performance.
• Experienced real-time problem solving in managing low-sales or
skipped oulets.
• Learned how to improve communication and negotiation skills
through direct interaction with retailers.
• Learned how data from spot testing and field tracking is used to
improve sales execution.

CHALLENGES
• Stock available at the WD point fell short on most occasions.
• Many retail outlets had inconsistent timings, due to which sales
were affected.
• Many outlets listed in the database were either permanently shut or
fake or unserviceable due to various reasons, due to which sales
targets assigned to DSMs were not proportional to the actual
potential.
• Struggled with low sales for the new brand Flake Insta Fresh due to
limited consumer demand.
• Delivery issues that led to delays in fulfilling retailer orders on
time.
• Unavailability of DS on certain days, impacting planned outlet
visits and sales execution.
• Low-volume outlets were skipped by DSs which led missed
opportunities and incomplete market coverage.
SUPPORT
• Advised retailers to communicate with the delivery agents during

the delivery process and sign the invoice once they’re satisfied.

• Flagged outlets with inconsistent timings and actively scouted for

potential alternatives.

• Advised to maintain adequate stock levels through proactive

demand forecasting and replenishment.

• Advised to assign backup DSs or floaters to avoid disruption due to

DS unavailability.

• Create beat specific stocking strategies based on outlet size, type

and consumer demographics.


ACHIEVEMENTS:
 Successfully achieved 93% of the cigarette sales target (₹6.5L out of ₹7.00L) through
active field selling and retailer engagement.
 Independently sold and introduced Flake Insta Fresh to multiple retailers,
contributing to its market penetration.
 Expanded outlet universe by identifying and adding new potential outlets under the
CFP (Channel Filling Project).
 Persuaded retailers to stock new brands, increasing product availability and visibility in
untapped markets.
 Played a key role in improving brand visibility for focus brands like American Club,
Flake Insta, and Gold Flake Insta in collaboration with the merchandising team.
 Gathered critical market insights by interacting with retailers, helping the team
understand purchasing behaviors and indirect channel preferences.
 Conducted competitive analysis against Marlboro, contributing to strategic planning for
brand positioning.
 Built strong retailer relationships, enhancing trust and brand preference at the ground
level.
 Demonstrated strong sales and persuasion skills by independently closing sales without
DS support.
 Contributed to market expansion by covering new territories and onboarding untapped
outlets.
 Helped identify key reasons why certain outlets preferred indirect purchase channels,
aiding future strategic decisions.
 Provided on-ground feedback that supported the sales team in refining product messaging
and retailer engagement strategies.
 Maintained daily discipline and consistency by visiting WD points and markets regularly,
showing reliability and dedication.
 Displayed initiative and ownership by taking up tasks beyond observation, such as
selling, promotion, and retailer follow-ups.
CONCLUSION
• The SIP provided hands-on exposure to sales and distribution

operations in the FMCG-Tobacco sector, especially within a highly

competitive retail environment.

• Internship helped bridge classroom concepts with practical FMCG

sales strategies and market dynamics.

• It helped me gain real-time market insights and provided the

opportunity to experience the business operations firsthand.

• It has broadened my horizon, and hopefully it will facilitate a

smooth transition into the corporate world.

• Lastly, I would like to thank my external guide, Sujoy Samaddar,

and my internal guide, Tapas sir, for providing constant guidance

regarding the report preparation and the SIP itself.


BIBLIOGRAPHY
URL:

 https://en.wikipedia.org/wiki/FMCG_in_India
 https://www.itcportal.com/businesses/fmcg/index.aspx
 https://www.itcportal.com/about-itc/index.aspx
 https://www.itcportal.com/businesses/fmcg/cigarettes.aspx

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