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DISTRIBUTIONCHANNELOF

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HISTORY & EVOLUTION

ITC was incorporated on August 24, 1910under the name Imperial Tobacco Company

of India Limited. As the Company'sownership progressively Indianised, thename of the Company was changed fromImperial Tobacco Company of India Limitedto India Tobacco Company Limited in 1970

and then to I.T.C. Limited in 1974. Inrecognition of the Company's multi-businessportfolio encompassing a wide range ofbusinesses - Cigarettes & Tobacco, Hotels,Information Technology, Packaging,Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing,Education & Stationery and Personal Care -the full stops in the Company's name wereremoved effective September 18, 2001. TheCompany now stands rechristened 'ITC

Limited'.

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FINANCIAL STATUS

MARKET

CAPATALISATION

Rs 1,00,000 CRORE

GROSS INCOME 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 ittraditional

businesses todevelop newbrands for newsegments

ITC is a diversifiedcompany tradingin a number ofbusiness sectors

Connection oftobacco with poor

health andpremature death.

To fund its cashguzzling FMCG

start-up, thecompany is stilldependant uponits tobaccorevenues

ITC leverages e-Choupal in a

novel way. ITC is moving into

new andemerging sectorsincludingInformation

The obviousthreat is from

competition, bothdomestic andinternational.

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In line with ITC's aspiration to be India's premier FMCG

company, recognised for its world-class quality and enduringconsumer trust, ITC forayed into the Personal Care businessin July 2005.In the short period since its entry, ITC has already launchedan array of brands, each of which offers a unique and

superior value proposition to discerning consumers.Anchored on extensive consumer research and productdevelopment, ITC's personal care portfolio brings world-class products with clearly differentiated benefits to quality-seeking consumers.

FMCG OF ITC

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PRESENT DISTRIBUTION CHANNEL FOR FMCG

MANUFACTURING

UNIT (AATA)

MANUFACTURING

UNIT (BISCUITS)

MANUFACTURING

UNIT (FOOD)

MANUFACTURING

UNITS (AGARBATTI

,AIM ETC)

HUB DISTRIBUTOR

EXCLUSIVE

WHOLESALER

RETAILER

PAN DABBAS

MALLS

SMALL

RETAILERS

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WHY THIS DISTRIBUTION CHANNEL FORFMCG??

vTHE SALES TAKE PLACE FROM THE LARGEST OFRETAILERS LIKE BIG BAZARS , SPENCERS TO THESMALLEST OF PAANWALAS AT EVERY NOOK ANDCORNER IN INDIA

vTHUS TO PENETRATE DEEP INTO THE INDIAN MARKETITC ADOPTED THIS DISTRIBUTION CHANNEL.

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WHAT CAN BE DISTRIBUTION CHANNEL FOR

FMCG..??

SOME TIFFS RAISE BETWEEN DISTRIBUTOR AND RETAILERDUE TO UNDER OR NO SUPPLY FROM DISTRIBUTOR

THE REASON BEHIND THIS IS LARGE DEMAND OF ITCPRODUCTS IN MARKET AS COMPARE TO PRODUCTION ANDTHE TRANSPORTATION MODES THEY USE (RICKSHAW ,CYCLES , AUTOS )

IF ITC USE MINI TRUCKS FOR DISTRIBUTION AS SOFT DRINKCOMPANIES DO , THEY CAN COVER LARGE AREA IN SHORTTIME THIS WILL SOLVE THE PROBLEM OF UNDER AND NOSUPPLY AS MINI TRUCKS HAVE LARGE CAPACITY TO CARRYAS COMPARE TO RICKSHAW , CYCLES , AUTOS etc

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CIGARETTE OF ITC

ITC is the market leader in cigarettesin India. With its wide range of

invaluable brands, it has aleadership position in every segmentof the market.It's highly popular portfolio ofbrands includes Insignia, India Kings,Classic, Gold Flake, Silk Cut, Navy

Cut, Scissors, Capstan, Berkeley,Bristol and Flake.

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PRESENT DISTRIBUTION CHANNEL FOR CIGARETTE

MANUFACTURING

UNIT (KOLKATA)

WAREHOUSE

(HOWRAH)

WHOLESALE

DISTRIBUTOR(KALPANA TRADERS)

WHOLESALERS RETAILERS

CONSUMER

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WHY THIS DISTRIBUTION CHANNEL..??

CIGRAETTES ARE ADDICTION BASED PRODUCT , FREQUENCY

OF PURCHASE IS VERY HIGH . SO IN ORDER TO MAKE ITAVAILABLE ITC OPTED FOR THIS DISTRIBUTION CHANNELAS THE DISTRIBUTION CHANNEL IS NOT VERYCOMPLICATED 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 DISPATCHINGOF CIGRAETTES AT MAIN RETAILERS , THIS WILL REDUCE THEEXPENDITURE ON FIELD FORCE

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ITC WELCOME GROUP

ITC Welcomgroup Hotels, Palacesand Resorts is India's secondlargest hotel chain[citationneeded] with over 100 hotels.Based out of Hotels Division

Headquarters at the ITC GreenCentre in Gurgaon, off New Delhi,

ITC Welcomgroup is also theexclusive franchisee of TheLuxury Collection brand ofStarwood Hotels and Resorts inIndia.

ITC Hotels is regularly votedamongst the best employers inAsia in the hospitality sector

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DISTRIBUTION CHANNEL FOR ITC HOTELS

DIRECT

CHANNEL

ONLINE

AGENT

INDIRECT

CHANNEL

CORPORATE

AGENTHOTEL

WEBSITE

CENTRAL

RESERVATIONS

DIRECT CALL

TO HOTEL

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WHY?

v Hotel Distribution Chanel is related to Hotels

room reservations. At present time it is moreDirect i.e: 60% than Indirect i.e; 40%.

v It is found that customer gets more satisfactionby calling the desired Hotel by the means ofadopting direct channels of booking the room.

v ITC main objective of running hotels is providingluxury with warmth. This channel is mostefficient in terms of time taken in booking theroom.

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HOW IT CAN BE BETTER?

As customers use more of Hotels sites forbookings as it gives additional information to themwhich is not possible through other means. So,these sites should be more strengthen to givecomplete info to customers. ITC should target hotelwebsites as a biggest player in direct channel ofbooking.As indirect channel gives customers plenty offersto go for bookings through agents, it also gives

price benefit to customers. So it should also bepromoted to tap maximum customer base which

largely go to the agents for bookings.

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PRESENTED BY:-TADASHA DASRAJNI PATHAKANSHUCHETAN GUPTAASHUTOSH

SHREY SHARMA