Supply Chain Management

ITC -FMCG
Submitted to: Prof. Chetan Zaveri Submitted by: Dhruva Patel (104216) Shreya Kanoi (104252) Shruti Jain (104253) Tanumati Gurnani (104255)

HISTORY & EVOLUTION of ITC

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, Agri-business, 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'. The Companys beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company. ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house. In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100 owned and managed properties spread across India. In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the

development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002. Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh. In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. A line of premium range of notebooks under brand Paperkraftwas launched in 2002. To augment its offering and to reach a wider student population, the popular range of notebooks was launched under brand Classmate in 2003. Classmate over the years has grown to become Indias largest notebook brand and has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the Classmate brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the Paperkraft Brand. Paperkraft offers a diverse portfolio in the premium executive stationery and office consumables segment. Paperkraft entered new categories in the office consumable segment with the launch of Textliners, Permanent Ink Markers and White Board Markers in 2009. ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening

wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers. In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC Infotech is one of Indias fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment. ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands minto and Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007. In eight years, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing. In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro. ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeepacross a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa. ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivelrange of soaps in February and Vivel range of shampoos in June 2008.

THE ITC WAY

ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organisational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems. ITCs corporate strategies are:

Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organizational capability with opportunities in domestic and export markets. Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. Ensure that each of its businesses is world class and internationally competitive. Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITCs various businesses. Create distributed leadership within the organization by nurturing talented and focused top management teams for each of the businesses. Continuously strengthen and refine Corporate Governance processes and systems to catalyse the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.

ITC FMCG products

It is ITC's strategic intent to secure long-term growth by synergizing and blending the diverse pool of competencies residing in its various businesses to exploit emerging opportunities in the FMCG sector. The Companys institutional strengths deep understanding of the Indian consumer, strong trademarks, deep and wide distribution network, agri-sourcing skills, packaging know-how and cuisine expertise continue to be effectively leveraged to rapidly grow the new FMCG businesses. Over the last few years, ITC has rapidly scaled up presence in its newer FMCG businesses comprising Branded Packaged Foods, Lifestyle Retailing, Education and Stationery products, Personal Care products, Safety Matches and Incense Sticks (Agarbatti) with Segment Revenues growing at an impressive compound annual growth rate of 38% during the last 5 years.

The Companys unwavering focus on quality, innovation and differentiation backed by deep consumer insights, world-class R&D and an efficient and responsive supply chain will further strengthen its leadership position in the Indian FMCG industry. ITCs FMCG portfolio comprises of: 1. Cigarettes and cigars ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, ITC has a leadership position in every segment of the market. ITCs highly popular portfolio of brands includes Insignia, India Kings, Lucky Strike, Classic, Gold Flake, Navy Cut, Players, Scissors, Capstan, Berkeley, Bristol, Flake, Silk Cut, Duke & Royal. ITC's pursuit of international competitiveness is reflected in its initiatives in overseas markets. In the extremely competitive US market, ITC offers high-quality, value-priced cigarettes and Rollyour-own solutions. In West Asia, ITC has become a key player in the GCC markets through its export operations. ITC's cigarettes are manufactured in state-of-the-art factories at Bangalore, Munger, Saharanpur, Kolkata and Pune, with cutting-edge technology & excellent work practices benchmarked to the best globally. An efficient supply-chain & distribution network reaches India's popular brands across the length & breadth of the country. 2. Food The Foods business is today represented in 4 categories in the market. These are:

Ready To Eat Foods Staples Confectionery Snack Foods

In order to assure consumers of the highest standards of food safety and hygiene, ITC is engaged in assisting outsourced manufacturers in implementing world-class hygiene standards through HACCP certification. The unwavering commitment to internationally benchmarked quality standards enabled ITC to rapidly gain market standing in all its 6 brands:

3. Lifestyle retailing

ITC's Lifestyle Retailing Business Division has established a nationwide retailing presence through itsWills Lifestyle chain of exclusive specialty stores. Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work wear, Wills Sport relaxed wear, Wills Clublife evening wear, fashion accessories and Essenza Di Wills - an exclusive range of fine fragrances and bath & body care products and Fiama Di Wills - a range of premium shampoos and shower gels. Wills Lifestyle has also introduced Wills Signature designer wear, designed by the leading designers of the country.

4. Personal care ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene and benchmarked manufacturing practices. Contemporary technology and the latest manufacturing processes have combined to produce distinctly superior products which rank high on quality and consumer appeal.

5. Education and stationary ITC is the manufacturer of India's first Ozone treated environment friendly Elemental Chlorine Free (ECF) pulp, paper and paperboard. It blends its knowledge of image processing, printing and conversion garnered from Packaging & Printing Business with its brand building and trade marketing & distribution strengths resident in its FMCG business to offer superior value products to consumers.

6. Safety matches ITC's range of Safety matches include popular brands like i Kno, Mangaldeep, Stylites, Aim and Aim Mega. Through its participation, ITC aims to enhance the competitiveness of the small and medium scale sectors through its complementary R&D based product development and marketing strengths, especially the breadth and depth of the Company's trade marketing and distribution. 7. Agarbattis

As part of ITC's business strategy of creating multiple drivers of growth in the FMCG sector, the Company commenced marketing Agarbattis (Incense Sticks) sourced from small-scale and cottage units in 2003. This Business leverages the core strengths of ITC in nation-wide distribution and marketing, brand building, supply chain management, manufacture of high quality paperboards and the creation of innovative packaging solutions to offer Indian consumers high quality Agarbattis. With its participation in the business, ITC aims to enhance the competitiveness of the small and medium scale sectors through its complementary R&D based product development and strengths in trade marketing and distribution.

Supply Chain
The objective of supply chain function is to ensure that products are available always fresh, at the right time and in the right place. The ITC's Supply Chain function involve Supply Chain Planning which involves demand and supply planning or in Physical Distribution which involves warehousing and transportation. The complexity of ITC's Supply Chain network can be gauged by the fact that ITC currently has more than 50 warehouses and 70 factories spread across the country and over 1200 trucks transporting ITC's goods on a daily basis. The supply chain function in ITC is responsible for distribution of 18 product categories, 75 sub product categories to over 2 million outlets distributed over 1 lakh markets. The wide product range, uniqueness of each category in terms of requirement, large network operation and early responsibilities makes the supply chain function extremely challenging and enriching. Involvement in planning enables close coordination with different businesses and functions within these businesses i.e. sales, production, logistics. Category specific and unique "Route to Market" models, coupled with best in class technology such as APO, I2-SCS, SAP, constant and unparalleled investments into technology, infrastructure and most important of all into people development through training sessions, makes the ITC's supply chain function more evolving. ITC's ABD-ILTD division adds a unique dimension to the supply chain function. The Leaf Tobacco Supply Chain of ITC spans across the globe, shipping over 150 M. Kg of Unmanufactured Tobacco to more than 50 countries. The main objective of Leaf Tobacco supply chain is to deliver on time in full, Indian tobacco to its customers sourced from reliable sources. ITC's leaf supply chain operations are spread across the states of Andhra Pradesh, Karnataka and Tamil Nadu; it operates from over 200 individual nodes, comprising 43 warehouses, managing over 700 SKU's.

The supply chain function of the Division coordinates the leaf from the farmer level until it is manufactured into a cigarette. These operations involve seamless interaction with all the functions of the business. The leaf supply chain has systems in place that provide traceability for every leaf of tobacco to the farm where it was grown. An agri-commodity supply chain demands very high hygiene standards and protocols to protect the quality of the tobacco and this is a key priority for the business. The environment in which leaf supply chain operates is very dynamic and uncertain (weather, global crop scenarios) which makes it imperative for the function to develop inherent flexibility and build robust processes to cater to customer requirements. Given the scale and scope of tobacco operations and with the motto of exceeding customer expectations, systematic investments have been made to develop customized supply chains for customers, build state-ofthe-art warehousing facilities, benchmark Information Technology and developing world class planning systems. For ITC, the challenge in the atta market was to offer consistency in quality. To achieve this, ITC decided to source wheat directly from farmers through its e-choupal initiative, unlike other players in the market who sourced their wheat from mandis. Through its direct sourcing model, the company was able to ensure consistent quality and that's where Aashirvaad Atta today scores over its competitors. ITC's supply chain successfully catered to the business need of achieving consistent quality in its product offering and not so much as lower cost in sourcing, which might have been the case had its supply chain strategy not been driven by its business strategy.

ITCs Modular Learning System in Supply Chain Management - Global professional Training and Certification for Greater Competitiveness
In a market where customers are more demanding than ever and resources are scarce, achieving excellence in the supply chain is increasingly challenging. With the mandate to provide technical cooperation in the area of international trade promotion and development, ITC has developed a Modular Learning System in Supply Chain Management (MLS-SCM) . The MLS-SCM includes a series of 18 high-quality and up-to-date training packs covering all stages of supply chain management to help companies achieve greater competitiveness. A global professional certification programme with exams managed by ITC is also offered. The programme was launched in 2000 and, so far, more than 25,000 professionals in 61 countries have benefited from the training offered by a network of more than 1,500 trainers attached to 120 institutions. The MLS-SCM programme has been singled out as a model for sustainable training capacity development. It offers an interesting business model for local institutions where these institutions are given access to internationally validated materials, to trainers trained in modern training techniques and to an internationally recognized professional certification programme which these institutions can offer to their local markets.

The Importance of Optimizing Entry Processes While many companies have worked hard to develop internal processes, marketing and sales, the purchasing, logistics and supply chain aspects have often been neglected. For the most part, the search for ways to optimize these processes is only now gaining importance. Companies need to find new ways to deal with suppliers and customers through focusing on more strategic approaches, long-term thinking and an investment in training to allow managers and staff to implement best practice business processes. For example, a company that invests an average of 60% of total sales in raw materials and supplies (including production, administrative costs and utilities representing 40% of sales), a saving of 10% in the total acquisition costs could result in a 60% increase in profits. SWOT Matrix Opportunities Strengths Market expansion Promotion Awareness Affordability

Weaknesses Emphasize on personal care

Threats

Diversification

Strategic alliances with international players

Operation and Logistics: Operation management emphasis the current programs of an organizations and planning which essentially deals with the future and two intimately related activities. A distinction should be made between planning and forecasting. Planning departments are key in critiquing strategies, crystallizing goals, setting objectives, maintain control. NEEDS FOR STRATEGY:
o o o

Resources are finite Uncertainty about competitive strength and behavior When commitment is irreversible.

Logistic/supply chain management enabling technologies cover a wide spectrum of technology that facilitates smooth flow of goods and services and related information as well as integration of business processes. The overall competitiveness of industry would increase by having proper operations and logistic managements.

ITCs distribution channel: Company Hub Factory

Carried and Forward Agent

Wholesale Dealer Small Wholesale Dealer

Retailer

Consumer ITC supply chain:

Consists of diverse categories with different priorities More than 1000+ SKUs Buying Value $68 MM Warehousing space of more than 3.5m SFT around55+ Locations Products manufactured at 45+ plants More than 650 trucks moved every day Direct distribution from factories to Distributors.

Indirect movement through RDCs Combination of Rail/Road/Sea movement within the country depending on the product type

ITCs distribution network: -

Identify supply chain stages and no. of entities: Central (National) Warehouse (East, West, North, South)

State Warehouse (2 parts Depot)

Distribution Centers

Wholesaler

Retailer

Customers First of all, they have central warehouses at four places, i.e. east, west, north and south. After that ITC has state warehouse. There are mainly two parts they are called depot. After that they have distribution centers. Then they have wholesalers all wholesalers who buy goods in wholesale. Then they have retailers i.e. pan vala, provision stores, kirana stores, departmental stores etc At last customers came. Agents/Brokers Channel partners that match marketers with wholesalers or in organization markets, with customers They are very important for international marketing, for exports Think of the success of EBay, Placement Consultants, Online dating/Matrimonial sites Wholesalers - Organizations that purchase products from suppliers, such as manufacturers or other wholesalers, and in turn sell these to other resellers, such as retailers or other wholesalers. A wholesaler is someone who primarily sells to other retailers Also may retail on own Typically, buys in bulk Very important in rural India Companies think of him a necessary evil Retailer - Organizations that sell products directly to final consumers. The most visible face of the distribution system India has the largest number of retailers in the world

Hence, the reluctance of the Government in allowing FDI here fear of unemployment Value-added reseller Channel partners that buy products from marketers, add value by modifying or enhancing value, then reselling them Industrial Distributors Firms that work mainly in the business-to-business market selling products obtained from industrial suppliers.

Distribution Network for its Products and Customers

ITC have better distribution networks, hence their wide portfolio of products. Marico's distribution width and penetration is acknowledged as one of the best in the industry and is a leverage able strength. Marico's distribution network covers almost every Indian town with a population of over 20,000. The chart below depicts Marico's distribution network in the urban & rural markets: Thus, 1 out of every 10 Indians is a Marico consumer. Distribution Alliance: Our distribution strength has been recognized by Indo Nissin Foods Ltd. through their association with us for the distribution of Top Ramen products on a national basis. Rural Sales & Distribution: Marico's parallel rural sales and distribution network ranks among the top three in the industry and contributes 24% to the company's topline.

Marico's distribution network covers almost every Indian town with a population of over 20,000. The chart below depicts Marico's distribution network in the urban & rural markets: Thus, 1 out of every 10 Indians is a Marico consumer.

Distribution Alliance: Our distribution strength has been recognised by Indo Nissin Foods Ltd. through their association with us for the distribution of Top Ramen products on a national basis. Rural Sales & Distribution: Marico's parallel rural sales and distribution network ranks among the top three in the industry and contributes 24% to the company's topline.

A business model that allows a company to procure agri-products directly from farmers, and which allows farmers online access to faraway markets; a newspaper that's customised to meet regional requirements from Day 1 itself; a company that extended beyond its manufacturing and tech capabilities to build a distribution network, offer content at never-before price points and in the process build a sustainable brand in the home video space. Those are just three examples of outstanding innovation and you will read more about them in the pages ahead. They're not just new products or service offeringsif me-toos can swiftly come in and do the same, then that wouldn't qualify as innovation in the first place.

Re-inventing business models, in 12 May 2010 and creating extended networks has linked together by a distribution model that leverages ITC'S proprietary channel.The whole theoretical part is covered with relation to the product. The pricing of the ITC food division depends upon the Customers' demand. Buoyed by a strong distribution network ITC is likely to retain its market share.

ITC SUNFEAST BISCUITS sales and distribution allows low profit margins, intense competition, high customer-service expectations.

Providing service at low cost is a difficult task. ITC has a large range of products, so providing the service at low cost for all the products of ITC is difficult. As major percentage is outsourced so there is the involvement of 3PL which results into higher cost.

Do you agree that the firm has adopted an effective inventory management policy? What is the lead time and its variability on inventory level ? Ans: In past the company ITC did not adopted an effective inventory policy system because it had huge number of SKUs and was difficult for them to handle and maintain control over there inventory. They were unable to forcast the demand because of which many a times many products faced either excess capacity or out of stock which resulted the customer switching to other product and unnecessary lost revenue that could be generated through proper forecast about the product .In past the company maintained inventory through SAP which didnt proved to be very efficient for the company ITC owing huge number of SKUs and dealing with diverse kind of people who have different needs and whose demand varies widely . Currently the firm have employed sify technology also along with SAP which has proved to better compared to only using SAP and its unability to control inventory. The lead time for the product is high because the firm ITC dealing into personal care products , Biscuits , Matches ,Agarbatti ,tobacco , Confectionary gets 95% of those products being outsourced except in case of tobacco so it takes some time as it is not produced inhouse only and the company have to outsourced the same .Now what do Sify does is it collects the goods saleable summary every evening which gives an idea about the demand of the product and this summary is collected through the 1 sales man being appointed by the bisuit distributor and 1 sales person being appointed by distributor of Agarbatti ,Matches and other products and this sales person visits 40 -50 retailers a day to know the order that they are interested to place and he record the same in the order book which is then entered into sify which at the end of the day shows a summary of the products that are required and also this software is like a online software which gives detailing to the regional ware house about the requirement of the product in that particular region by various distributor and then that regional warehouse gives intimation through that software to the central ware house about the goods demanded and the central ware house totals the demand of all regional ware house to know exact demand of the product and thus gets to now about the product The firm is slowly and steadily moving to better inventory management through better inventory control. Is there any type of partnership that the firm is using to improve supply chain performance ? Ans: Yes the firm ITC is using business partnership to improves its supply chain performance like in case of storing what ITC is doing it is having a central warehouse which is owned by ITC itself but the regional warehouse is not being owned by ITC what it does is that it gives there product for storing on commission basis and does not look towards the working of regional warehouse and gets free with the working of regional warehouse working and is involved only with looking towards the operation of central warehouse .

Next partnership that the company is going through is that of outsourcing the product and this company gets nearly 95 % of the products being outsourced. Thus the company has gone through certain partnership to improve supply chain performance.

Highlight the other challenges of ITC FMCG supply chin observed in a firm.
Forecasting: Forecasting is very difficult in any FMCG company, because FMCG are those goods which are daily use or twice in a week or weekly use etc. so how much demand of such products are difficult to forecast. Launching of new products: If a company is launching new products to market then that company has to advertise its product, because there are many products in FMCG sector thats why till the product cannot enter into the mind of customers, company has to advertise its product. Therefore, launching of new product is difficult. Feedback of product: FMCG companies are lacking to take feedback from customers about their new product(s). There are only few customers who are giving feedback to FMCG products.