Company Profile:

ITC was established on August 24, 1910

Indian public conglomerate company headquartered in Kolkata,

West Bengal, India

Sales and Distribution ITC's gross revenue for FY2023 stood at Rs. 69480 crores and
market capitalization of Rs. 561098 crores
Submitted To: Prof. Bindesh Mishra Management
The company is currently headed by Yogesh Chander Deveshwar
By: Group 10 (Chairman)
Abhinav Kumar
It employs over 25,959 people (as on 31st March 2023) at more
Saurav Shandilya
Abhishek Sinha
than 60 locations across India.
Akashdeep
Vishal Kumar Among India's Most Valuable Companies by Business Today.
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ORGANOGRAM About ITC Ltd. (Contd.)

Vision Mission

• Sustain ITC’s position as one • To enhance the wealth

of India’s most valuable generating capability of the
corporations through world- enterprise in a globalising
class performance, creating environment, delivering
growing value for the Indian superior and sustainable
economy and the stakeholder value
Company’s stakeholders

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 About ITC Ltd. (Contd.)
Objective
Diversified Product Categories:

To create, communicate and deliver superior value to FMCG

consumer though effective sales and distribution
management. IT Hotels

Paper Agri-
Boards Business

Packaging
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Background SWOT Analysis

Strength Weakness
Sales Management means “the planning, direction, and control  Strong brand recognition  Dependence on tobacco revenues
of personal selling including recruiting, selecting, equipping,  Experienced Management  Negative Connection of Tobacco
assigning, routing, supervising, paying and motivating as  Diversified Product Portfolio  Low export levels
 Well established distribution network
these tasks apply to personal salesforce”. – American
Marketing Association

• The objectives of sales management are sales volume,

contribution to profit and continuing growth.
Opportunity Threat
Low per capita consumption of personal Competition both Domestic &
“We … recognize that selling only works when everything is care products International
right for the customer—when we deliver value.”  Untapped rural market  Ban on smoking
 Collaboration with foreign players  Competition from unbranded products
– Rick Makos (President, NCR-Canada)  e-retailing High competition from established
companies
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 Presence of ITC Ltd.. Sales Hierarchy of ITC

Division Manager
NORTH EAST Regional Branch Manager
Division Division
Branch Manager

Assistant Manager
SOUTH WEST Area Manager
Division Division
Area Executive

Sales Trainee
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Recruitment Recruitment (Contd .)

CV Short listing
Level 1
Top B- Schools • Assistant under Training (AUT) Group Discussions / Business Plan
Level 2 Competition

Interview round 1st Round

Other Level 3
• Sales Trainee Written Test - 3 sections. Total of 55
B- schools questions. Numerical - 15, Analytical
Level 4
- 20, Verbal - 20 questions.
Employee Level 5

• Lateral Recruitment (for the Interview round 2

References and
post of AE) by BM and HRM
Consultancy
11 Quality of hire 13
 Training and Development Training and Development
(Contd.)

Induction On Job Induction Training:

Training Training
Sales Trainee

Internal Competency Duration: 1 week

Training Development Place: HO

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Training and Development Training and Development

On Job Training: (Contd.)

New Sales Training For Sales

Process Trainee and AUT
Personnel Through NIS

Top distributors Internal

Distributor’s Sales
Duration: 1
Person &
Training: month
Supervisor
3 Salesman are
selected
On Job Training

New Entrant Duration: 3

(S. Trainee & AUT)
In Branch office
days

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 Training and Development
Compensation (Contd.)
(Contd.)
Competency Training: Position CTC (in Rs. Lakhs Variable
annually)

Branch Manager Branch Manager 28 - 30 20% of CTC

recommends AE and AM
for training
Assistant Manager 17.2 – 17.4 20% of CTC

Area Manager 15.2 – 15.4 20% 0f CTC

Location: Head Office
Area Executive 9.2 – 9.4 20% of CTC

Sales Trainee 4.2 – 4.4 20% of CTC

Duration: 6 Days

Variable salary is decided on the basis of performance and

target met by sales personnel
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Performance evaluation of sales Performance evaluation of

personnel sales personnel
STAR WARS:

Monthly • Monthly Sales Target

Target • Visibility Target Quiz

Performance • Sales Volume for each Motivation

of the product category
branch • Market share growth rate
Updated
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Wholesale Distributor (WD) WD employees: Recruitment
and Compensation
Recruitment:

WD The salespersons of distributors are appointed

by the distributor himself in consultation with
ITC officials
Compensation:
• Their fixed salary is paid by the distributor but
Driver/
Salesmen Supervisors Delivery Boy
Thelawala
is reimbursed by the company.
• The variable salary of salesmen is decided on
his meeting of sales target.
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WD employees: Recruitment WD employees: Recruitment and

and Compensation Compensation
Salesmen Evaluation and Compensation Control mechanism:
•The compensation received by salesmen • The performance and work of WD employees is evaluated by
company’s officials weekly.
depends upon the target achieved by them • Their daily sales order is monitored by Area Executive.
• The salesmen is given a geographical territory which doesn’t
consider sales potential.
• Targets under consideration: • Salesmen has to cover 30 outlets each day.
1. Monthly sales target • They are given a beat plan for each day.
2. Product wise sales target • If a WD employee is not performing then the company can
sack him.
3. Category wise

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 WD employees: Recruitment and
Compensation
Role of Salesmen:
• Prospecting- Searching for new outlets
• Targeting- Visiting potential outlets
• Communicating- Informing about products and offers
• An order taker- As per requirement in retail and
convenience outlet
• Selling to retailers and convenience outlet
• Servicing- Removal of damaged/expired(DND)products
• Information gathering- About needs/ preferences of
customers
• Allocating- Fixed time to each outlets
• Cash collection 25 26

Distribution Channel Channel Type

CNF
3-level Distribution Channel:

FACTORY Wholesale
Company Wholesaler Retailers Consumer
Distributor

WHOLESALE 2 -level Distribution Channel:

DEALER BASE

Company Wholesale
Retailers Consumer
RETAILER Distributor
WHOLESALE
DISTRIBUTOR

Wholesale
Company Wholesaler Consumer
Distributor
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 Distribution Type Physical Distribution/Logistic
Mother
Hub/Factory
Central
Exclusive (Textile) Warehouse
Warehouse Service
Provider
Selective (Paper
Boards & Cigarettes)
WD Godowns
Intense (Other
FMCG Products)

Outlets
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Effective Working of Channel Effective Working of Channel

Members Members (Contd.)
Score card for Measurement of WD Performance:
Performance is measured on
following broad parameters: Bands Score
Platinum > 95%
Gold 85-95%
Distribution Health Business Health (Sales Silver 80-85%
(Outlet coverage, Performance Bronze Star 75-80%
availability, visibility benchmarked to Bronze 60-65%
levels, etc) relevant Circle) Non Performing < 60%

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Effective Working of Channel Problem Statement
Members (Contd.)
Causes:
Actionable basis for WD evaluation:
– Lack of proper training to distributor’s salesmen.
Essentials Check Bands Follow up action – Poor Infrastructural support (TPS software not updated on regular
Not Qualified Non Performing Replace basis).
Not Qualified Bronze On Notice – Inefficient sales strategy (territory allotted to salesmen doesn’t
consider sales potential of region).
Not Qualified Bronze Star/ Silver On Notice
BM to revert with follow
up plan
Qualified Non Performing On Notice Effect:
Qualified Bronze On Notice – Problem of product recall by salesmen.
Time bound action plan – More focus on sales target rather than business expansion. (Salesman
focuses more on large outlets which purchases in large volume).
Qualified Bronze Star/ Silver Encouragement for further – Poor level of motivation among sales staff.
improvement

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4

Improve Management
• Proper training should be provided to salesmen.

• Salesmen should be regularly informed about the changing offers and

schemes on the products.

• Territory allotted to salesmen should consider the sales potential and Thank You
concentration of outlets in that area

• Salesmen should be provided incentive for adding new outlets.

• TPS should be updated regularly to show current stock details.

• The incentive of the salesmen should be based on the number of outlets

served by them too rather than merely on sales volume .
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