ITC LTD

PROBLEM CENTRIC STUDY

Distribution challenges of ITC products in Triveni Supermarket.

SUBMITTED BY

SOBIN MATHEW

RAJAGIRI BUSINESS SCHOOL

2017-2019
TITLE OF STUDY

Distribution challenges of ITC products in Triveni Supermarket.

RELAVANCE OF STUDY

Triveni Supermarkets is a chain of retail supermarkets operating in the co-operative sector in

the state of Kerala, India. This system is operated by the Kerala State Co-operative Consumers
Federation Limited, which is at large controlled by the Government of Kerala. Hence this chain
is in principle used as a form of governmental intervention in the retail market in the state to
control and limit retail prices .As of 2017, there are a total of 229 outlets throughout the state,
including some mobile, floating supermarkets .currently the business of ITC in triveni
supermarket faces lot of issues in distribution process. the available ITC product in Triveni is
very less so to analyse and solving the distribution issues in triveni is provide more business
development for ITC

OBJECTIVE

The study is conducted to find out the distribution challenges faced by Triveni outlets in
supplying ITC products.

SCOPE OF STUDY

The scope of study extends to all the triveni store managers to solve the distribution gap
between ITC and Triveni supermarkets

RESEARCH METHODOLOGY

The study is descriptive in nature

TYPE OF DATA

Primary data is used for the purpose, and the data is collected from triveni store managers of
different outlets .secondary data is used to assist the primary data and to perform the study on
distribution issues
SAMPLE SIZE

Sample were taken from 30 triveni outlet store managers .They were asked to respond various
issues related with distribution of ITC products.

DATA COLLECTION METHOD

Marking responses in Google form, direct interview with store managers.

LIMITATIONS

The outlet stores was in rural area

The sample size took was less

Respondents were reluctant to take the survey

RESULT AND ANALYSIS

The study explains the distribution issues and its causes in delivering ITC products in triveni
super markets. The research is carried out to find out the important factors that affects the
distribution of ITC products, its drawbacks and help to the company to improve the distribution
and sale of products in the triveni outlets.

For the purpose of study, demand of consumers towards ITC product in triveni outlets, product
availability, proper order taking, restocking, etc. are evaluated. The detailed information
regarding survey, analysis and results are explained below. There were total 30 respondents
who completed the survey.
DATA OBTAINED

1. Are you aware of ITC products?

Inference:

Out of the 30 respondents 96.7% of store managers are aware of the ITC products only few of
them does not have much knowledge about the products
2. How often do you give orders to ITC Distributors?

Inference:

 From the data obtained 46.7 % of the store managers give orders at a time period of 2-
6 month frequently and about 36.7% of the respondents give orders monthly.A less
number of store managers give order weekly.
 3. Which ITC product has the most demand?

Inference:

 From the data obtained the ITC product which having the most demand in triveni super
markets is Aashirvad Atta.
 Sunfeast biscuit has a demand of 30% and Vivel soaps has a demand of 13.3%.
4. Which ITC product has the least demand?

Inference:

 46.7% of store managers agrees that deodrants have the least demand and 43.3% of
them agrees agarbattis have the least demand. Therefore these are the products by ITC
that has the lowest demand in triveni supermarkets.
 10% out of 30 respondents marked fiama produts have the least demand.
5. Is there proper restock of the goods and products from ITC by the distributors?

Inference:

 83.3% of the store managers responded that there is no proper restocking of products
by ITC in triveni supermarkets and remaining 16.7% agrees there are proper restocking
in the outlets.
6. Which is the major competitor for ITC in Triveni stores?

PRODUCTS
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Britannia Nestle HUL Others

Series 1 Column2 Column1

Inference:

 From the survey conducted, different products are highly competing with ITC,
HUL is the main competitor of ITC in FMCG sector
 Britannia is one of the major competitor for sunfeast biscuits which is the
product having the higher demand in triveni super market because of its low
cost.
 Nestle Maggi is one of the another biggest competitor for ITC’s Yeppie noodles
 Nirapara atta, lux soap products are also competitors in FMCG sector for ITC.
7. Is there any communication gap between the regional office and this outlet?

Inference:

 86.7% of triveni store managers marked there is communication gap between outlet and
the regional office of triveni stores for the distribution of ITC products
 13.3% of respondent marked that there is proper communication between regional
office and the outlets.
8. Is there any transportation problem in carrying goods from the Regional office to the
outlets?

Inference:

 56.7% of the store managers marked they face transportation problem in carrying goods
from regional office.
 30% of outlets does not have transportation issues and 13.3% outlets have the issue
only at sometimes.
9. Is there any quality issues with the products delivered from the regional office?

Inference:

 The majority of respondents point out that the quality of ITC products from regional
office is good, 53.3% of triveni outlets supports the availability of good products and
16.7% of store managers responded about availability of low quality products and 30%
of them face the quality issues sometimes.
10. Will the distributors retake the damaged products?

Inference:

 80% of the store managers of triveni marked the distributors will retake the damaged
products but they consider some factors.
 20% of respondents marked distributors will not replace the damaged products.
FINDINGS

 Most of the triveni outlet store managers are aware of ITC products some of them does
not have idea about some products.
 The order giving to the distributors happens between 2-6 months interval.so there is no
proper initiative to take order taking from the company side.
 Aashirvad Atta is the ITC product that having the most demand in triveni supermarkets
and sunfeast biscuits also have more demand compared to vivel and other products.
 The products like deodrants and agarbattis marked as a least preferred products of ITC.
 In triveni supermarket there is no proper restocking of ITC products
 Britannia is one of the major competitor for sunfeast biscuits, the product have high
demand in triveni super market because of its low cost. Nestle maggi is an another
biggest competitor for Yippie noodles
 86.7% of triveni store managers marked there is a communication gap between outlet
and regional office of triveni stores for the distribution of ITC products.
 The goods transportation from the regional office to outlets is an important problem,
some godown does not have vehicle so they cannot distribute bulk of products from
regional office.
 Products distributed from the regional office is having good quality and packaging is
also good thus the customers are more conscious about the quality of the product.
 In Most of the outlets the damaged products will be replaced by considering some
factors.
AVAILABLE ITC PRODUCT IN TRIVENI

 The availability checking in Idukki region of triveni supermarkets have only found out
Aashirvad atta product there is no other ITC products are obtained

REQUIREMENT OF PRODUCTS IN TRIVENI

• High Demand in Aashirvad MP atta and Sunfeast Biscuits

• Low Demand in Agarbatties , Deodorant, Shower Gel, Snacks

SUGGESTIONS FOR BUSINESS DEVELOPMENT

 For proper order taking will improve the business between triveni and ITC and solve
the communication gap between oulets and ITC

 It’s better to introduce a third party like ppmc or a dealer to triveni stores that could be
helpful for updation

 Most of the outlets need many products from ITC, the suggestion from Idukki depo
manager who will supply stocks to each outlets based on requirement by the direct
supply of ITC products to the Idukki depot

 Even the store managers does not know various products of ITC, so necessary methods
to be used to make them familiarize with our products.

 Idukki depot cant take huge load from regional office because of transportation issues

Thus if our department provide supply directly there will be high chance of account
opening

 The consumers in triveni markets prefer more low price products so the movement of
high priced products is become quite difficult so focus to distribute cheap rate products
that will be provide more business opportunities
CONCLUSION

Last four years there is no significant distribution of ITC products to the triveni supermarkets
Currently in triveni stores have only few of ITC products so the distribution in each districts in
kerala is delayed and the lack of supply affects the product availability in triveni supermarkets
From the survey conducted, we can understand that there are some distribution issues with ITC,
regional office and the triveni outlets. There are some issues such as no proper order taking in
the outlets, shortage of products, transportation, and also there is communication gap between
the regional office and the outlet. The problems can be solved by assigning employees for
restocking the products in the outlet, the best method for the stock updation in triveni is to
introduce a third party like ppmc or a dealer therefore they can check regularly the stock in
each outlets. currently the company does not have any dealer in triveni supermarkets, so they
only have communication with regional office thus making connection to each outlets will
help to distribute products as per the demands of triveni outlets hence ITC can solve the
distribution issues

BIBLIOGRAPHY

 http://www.itcportal.com/about-itc/profile/index.aspx

 ITC reports and accounts 2017

 http://economictimes.indiatimes.com/itc-ltd/infocompanyhistory/companyid-
13554.cms

 http://www.consumerfed.net/networks/triveni-supermarket
ANNEXURE

Survey on Distribution of ITC products at Triveni Outlets

1. Are you aware of ITC products?

yes No
2. How often do you give orders to ITC Distributors?

Weekly Monthly 2 - 6 Months

3. Which ITC product has the most demand?

Aashirvad Atta Sunfeast Biscuits FiamaDiwills Vivel Agarbattis Deodrants

4. Which ITC product has the least demand?

Aashirvad Atta Sunfeast Biscuits FiamaDiwills Vivel Agarbattis Deodrants

5. Is there proper restock of the goods and products from ITC by the distributors?

Yes No

6. Which is the major competitor for ITC in Triveni stores?

7. Is there any communication gap between the regional office and this outlet?

Yes No

8. Is there any transportation problem in carrying goods from the Regional office to the outlets?

Yes No

9. Is there any quality issues with the products delivered from the regional office?

Yes No

10. Will the distributors retake the damaged products?

Yes No