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PRICE POINT TABLE<br />Source: Lit searches; Scribd<br />
ENERGY POINT TABLE<br />Source: Lit searches; Scribd<br />
Distribution channel for biscuits<br />Source: Lit searches; Scribd<br />
“The supply chain of products in the FMCG market in India is one of the longest supply chains an industry could really have. There are as many as 5 levels of intermediaries involved in the entire supply chain through which a product passes before reaching the end consumer.”<br />Source: Bee Management Consultancy Services Pvt Ltd report on analysis and distribution channels on various sectors, 2005<br />
Parle<br />Parle maintains 9 mother units and 70 contract manufacturing units across the country<br />Distribution network (~ 5000 distributors)<br />Distributors arrange their own transport<br />Urban<br />Rural<br />Through the normal 5 layered distribution channel<br />Directly from the company:<br />Parle trucks deliver material<br />600gm packs are delivered from the factory only <br />‘Dedicted Parle Shops’ which keep only Parle products<br />Source: Factory visit<br />
Brand positioning<br />‘G for Genius’ since 2004.<br />2006-07: Changed to ‘Hindustan kiTaakat’, to assume a bigger platform as the biscuit that stands for strength (taakat) in and for India. <br />But in early 2008, Parle-G reverted to its ‘G for Genius’ line with a little twist – ‘Do Genius EkTaakat’.<br />
ITC<br />Uses FIFO method to reduce wastage of goods due to expiry<br />Keep goods on constant move from low sales area to high sales area<br />Company collects expired goods 4 times a year and destroys them<br />ITC provides the retailers with racks, hangers, etc to display the products<br />Source: http://www.itcportal.com/about-itc/newsroom/press-reports/PressReport.aspx?id=468&type=C&news=ITC%20foods%20growt<br />h%20spawns%20Rs%20700%20crore%20brand<br />
Britannia<br />Marketing strategy include<br />Product and packaging innovations<br />Appropriate pricing<br />Strong distribution channel<br />
Britannia<br />No major strategic innovations in distribution channels<br />More than 600000 outlets across the country<br />Britannia has maintained an excellent distribution channel in urban India<br />But ~70% of the Indian population is in villages and Britannia needs to tap this market<br />“We have good strong distribution channels 50 % of our revenue comes from<br /> rural markets “- Vinita Bali<br />Source: http://www.paterson.co.in/downloads/Britannia%20Ind%20-%20Paterson.pdf<br />
Three manufaturing plants : <br /> Greater Noida<br />Lucknow (U.P.)<br />Surat (Gujarat)<br />Concentrated mainly on Nothern and central part of the country. <br />Distribution channel consist of super stockists and distributors. <br /> 125 : Super stockists<br /> 3500 : Distributors<br />Greater availibilty in the Rural Market of the North.<br />Provide biscuits to airlines,railways, food kiosks present at railway stations (300 railway stations)<br />Priyagold<br />
Ways to improve distribution channel<br />Partnering with Self Help Groups in Rural India.<br />Internet based Rural Kiosks/Hubs<br />Direct Selling<br />Marketing and distribution model like ShaktiAmma by HUL<br />Source: http://www.oppapers.com/essays/Innovative-Distribution-Channels-Fmcg-India/120552<br />
References<br />http://www.businesseconomics.in/index.php?option=com_content&view=article&id=145&Itemid=6<br />Enterpreneur issue september 2009<br />http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4341<br />http://www.managementparadise.com/articles.php<br />