DISTRIBUTION CHANNEL OF

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HISTORY & EVOLUTION

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agribusiness, Foods, Lifestyle Retailing, Education & Stationery and Personal Care the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'.
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FINANCIAL STATUS

MARKET CAPATALISATION GROSS INCOME

Rs 1,00,000 CRORE Rs 25000 CRORE

PROFIT BEFORE TAX Rs 6000 CRORE PROFIT AFTER TAX Rs 4000 CRORE

RETURN ON CAPITAL 40%

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ITC leveraged it traditional businesses to develop new brands for new segments ITC is a diversified company trading in a number of ITC leverages ebusiness sectors Choupal in a novel way. ITC is moving into new and emerging sectors including Information

Connection of tobacco with poor health and premature death. To fund its cash guzzling FMCG start-up, the company is still dependant upon The obvious its tobacco threat is from revenues competition, both domestic and international.
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FMCG OF ITC
In line with ITC's aspiration to be India's premier FMCG company, recognised for its world-class quality and enduring consumer trust, ITC forayed into the Personal Care business in July 2005. In the short period since its entry, ITC has already launched an array of brands, each of which offers a unique and superior value proposition to discerning consumers. Anchored on extensive consumer research and product development, ITC's personal care portfolio brings worldclass products with clearly differentiated benefits to qualityseeking consumers.

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PR S NT D T IBUTION C ANNELF F G EE IS R H OR MC
MANUF TUR AC ING UNIT (AATA)

S MAL L RE TAIL R ES

WHOL S E E AL R

MANUF TUR AC ING UNIT (B C IS UITS ) R TAIL R E E H UB MANUF TUR AC ING UNIT (F OOD ) DIS IBUTOR TR E C US X L IVE

P D AN ABBAS MANUF TUR AC ING UNITS(AGAR BATTI ,AIM E ) TC

MAL S L

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WHY THIS DISTRIBUTION CHANNEL FOR FMCG??

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THE SALES TAKE PLACE FROM THE LARGEST OF RETAILERS LIKE BIG BAZARS , SPENCERS TO THE SMALLEST OF PAANWALAS AT EVERY NOOK AND CORNER IN INDIA THUS TO PENETRATE DEEP INTO THE INDIAN MARKET ITC ADOPTED THIS DISTRIBUTION CHANNEL.

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WHAT CAN BE DISTRIBUTION CHANNEL FOR FMCG..??

SOME TIFFS RAISE BETWEEN DISTRIBUTOR AND RETAILER DUE TO UNDER OR NO SUPPLY FROM DISTRIBUTOR THE REASON BEHIND THIS IS LARGE DEMAND OF ITC PRODUCTS IN MARKET AS COMPARE TO PRODUCTION AND THE TRANSPORTATION MODES THEY USE (RICKSHAW , CYCLES , AUTOS ) IF ITC USE MINI TRUCKS FOR DISTRIBUTION AS SOFT DRINK COMPANIES DO , THEY CAN COVER LARGE AREA IN SHORT TIME THIS WILL SOLVE THE PROBLEM OF UNDER AND NO SUPPLY AS MINI TRUCKS HAVE LARGE CAPACITY TO CARRY AS COMPARE TO RICKSHAW , CYCLES , AUTOS etc
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CIGARETTE OF ITC
ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a leadership position in every segment of the market. It's highly popular portfolio of brands includes Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.

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PR ENT D TR UTION CHANNELF CIGARETTE ES IS IB OR

MANUF TUR AC ING UNIT (K K OL ATA)

WAR H E OUS E (H OWR ) AH

WH E AL OL S E DIS IBUTOR TR (K P AL ANA TR ADE S R)

WH E AL R OL S E S

R TAIL RS E E

C ONS UMER

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WHY THIS DISTRIBUTION CHANNEL..??

CIGRAETTES ARE ADDICTION BASED PRODUCT , FREQUENCY OF PURCHASE IS VERY HIGH . SO IN ORDER TO MAKE IT AVAILABLE ITC OPTED FOR THIS DISTRIBUTION CHANNEL AS THE DISTRIBUTION CHANNEL IS NOT VERY COMPLICATED AND CONSUMER GET CIGRAETTES EASILY

WHAT CAN BE DISTRIBUTION CHANNEL FOR CIGRAETTES..?? AS COMPANY CAN NOT DO MUCH IN THE DISTRIBUTION SYSTEM OF CIGRATTES.. THEY CAN GO FOR AUTOMATIC MACHINES FOR DISPATCHING OF CIGRAETTES AT MAIN RETAILERS , THIS WILL REDUCE THE EXPENDITURE ON FIELD FORCE
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ITC WELCOME GROUP

ITC Welcomgroup Hotels, Palaces and Resorts is India's second largest hotel chain[citation needed] with over 100 hotels. Based out of Hotels Division Headquarters at the ITC Green Centre in Gurgaon, off New Delhi, ITC Welcomgroup is also the exclusive franchisee of The Luxury Collection brand of Starwood Hotels and Resorts in India. ITC Hotels is regularly voted amongst the best employers in Asia in the hospitality sector

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DIS IBUTION CHANNELF ITC H TR OR OTEL S

D IREC T C ANNEL H

IND IREC T C ANNEL H

H OTEL WE IT BS E

CENTRAL RES ERVATIONS

ONL INE AGENT

C ORP ORATE AGENT

DIREC CAL T L TO HOTEL

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WHY?
v

Hotel Distribution Chanel is related to Hotels room reservations. At present time it is more Direct i.e: 60% than Indirect i.e; 40%. It is found that customer gets more satisfaction by calling the desired Hotel by the means of adopting direct channels of booking the room. ITC main objective of running hotels is providing luxury with warmth. This channel is most efficient in terms of time taken in booking the room.

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HOW IT CAN BE BETTER?

As customers use more of Hotels sites for bookings as it gives additional information to them which is not possible through other means. So, these sites should be more strengthen to give complete info to customers. ITC should target hotel websites as a biggest player in direct channel of booking. As indirect channel gives customers plenty offers to go for bookings through agents, it also gives price benefit to customers. So it should also be promoted to tap maximum customer base which largely go to the agents for bookings.
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PRESENTED BY:TADASHA DAS RAJNI PATHAK ANSHU CHETAN GUPTA ASHUTOSH SHREY SHARMA
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