08-08-2012, 03:42 PM
FOODS BUSINESS DIVISION OF I T C
FOODS BUSINESS.doc (Size: 943 KB / Downloads: 35)
INTRODUCTION
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.
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.
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.
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.
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 vis-à-vis ITC signifying a higher focus at the outlet level and also because of the large no. of SKUs.
ORDER CAPTURE AND DELIVERY SYSTEMS
The order capture systems vary from company to company. Most companies with a large no. of SKUs prefer to go in for the advanced order booking system as it helps them distribute all SKUs more efficiently. This could be the reason why Perfetti stands out amongst all the companies studied in persisting with the ready-stock system as it has relatively smaller number of SKUs. However, in order to make sure that the distributions of SKUs don’t suffer, they have grouped all their SKUs into two, each group being manned by a separate unit