Tata Consumer Products Limited (TCPL):

Course Mentor: Prof. Manoj Motiani

Sales and Distribution Analysis

SUBMITTED BY:

Abhishek Kumar 2024EPGP004

Faiz Ali 2024EPGP019
Sapan Agarwal 2024EPGP057
Aabhimanyu Singh 2024EPGP001
Gurrala Nikhitha Reddy 2024EPGP020
Naveen Chauhan 2024EPGP037
Introduction to Tata Consumer Products Limited (TCPL):

Tata Consumer Products Limited (TCPL) is a leading fast-moving consumer goods (FMCG) company
that forms a vital part of the Tata Group, one of India's largest and most respected conglomerates.
Established in 1962 as Tata Tea Limited, the company evolved over the years and expanded its product
portfolio to include a diverse range of offerings. In 2020, the company was rebranded as Tata
Consumer Products Limited after the merger of Tata Global Beverages and the consumer products
business of Tata Chemicals.

Product Portfolio:

 Beverages: Tata Tea (India’s leading tea brand), Tetley, Tata Coffee, and Himalayan Water.
 Food Products: Tata Salt (India’s most trusted salt brand), Tata Sampann (pulses, spices, and
ready-to-cook products), Tata Soulfull (nutritional snacks and cereals).
 Packaged Water: Himalayan Natural Mineral Water, Tata Copper+ Water, and Tata Gluco+.

Global Presence: TCPL has a significant global footprint, with operations spanning over 40 countries.
Its brands like Tetley and Tata Tea have become household names in markets such as the UK, Canada,
the US, and Australia, establishing a strong international presence.

Market Leadership:

 Tata Tea holds the largest share in the Indian packaged tea market.
 Tata Salt is the undisputed leader in the Indian packaged salt category.

Core Values and Vision: TCPL is driven by its commitment to quality, innovation, and sustainability.
The company aims to “nourish and delight” consumers through its wide array of products, which are
crafted with care to promote well-being. Guided by the Tata Group's ethos, TCPL focuses on creating
long-term value for stakeholders while contributing positively to society.

Sustainability Initiatives: The company places a high emphasis on sustainability and ethical practices,
ensuring responsible sourcing, minimizing environmental impact, and supporting the communities it
operates in.

Recent Developments:

 Expansion into the health and wellness segment with products such as nutritional snacks and
fortified beverages.
 Increasing digital and e-commerce focus, particularly through platforms like Tata Neu, to
adapt to changing consumer behavior.

With a robust legacy, a diverse product portfolio, and a forward-looking approach, Tata Consumer
Products continues to be a trusted name in millions of households globally.
1. Sales and Distribution Objectives:

 Ensure maximum market penetration and availability of products across urban and rural
markets.

 Optimize supply chain efficiency and reduce costs.

 Enhance customer satisfaction by reducing stockouts and improving product accessibility.

 Drive sales growth by leveraging data-driven strategies and technology-enabled systems.

2. Key Components of the Network:

A. Sales Force Structure:

1. Direct Sales Team:

a. Focused on key accounts like modern retail chains (Big Bazaar, Reliance Retail, etc.),
e-commerce platforms (Amazon, Flipkart, Tata Neu), and institutional buyers (hotels,
corporate offices).

b. Regional Sales Managers (RSMs) oversee zonal territories with Area Sales Managers
(ASMs) and Sales Officers (SOs) handling daily operations.

2. Channel Sales Team:

a. Responsible for traditional trade, which includes distributors, wholesalers, and

retailers in urban and rural markets.

b. Specialized roles like Rural Sales Executives (RSEs) to manage rural markets and
ensure penetration.

3. E-commerce Sales Team:

a. Dedicated team to handle online platforms and ensure seamless operations like order
fulfillment, delivery timelines, and analytics.

B. Distribution Network Design:

1. Primary Distribution (Factory to Distribution Centers):

a. Use company-owned trucks or third-party logistics (3PL) providers for bulk
transportation.
b. Strategic location of warehouses near high-demand zones to minimize lead time.
2. Secondary Distribution (Distribution Centers to Wholesalers/Retailers):
a. Multi-tier system with hubs in metro cities and spokes in smaller towns.
b. Incorporate predictive analytics for demand forecasting and inventory management.
3. Tertiary Distribution (Retailers to End Consumers):
a. Partnerships with last-mile delivery providers for efficient stock replenishment.
b. For rural markets, leverage Tata’s "e-Choupal" or similar platforms to reach remote
areas.
Figure 1:Sales and distribution of TATA consumer Products

C. Channel Strategy:

1. Traditional Trade:
a. Build strong relationships with distributors and retailers.
b. Incentivize channel partners through trade schemes, volume discounts, and
promotional offers.
2. Modern Trade:
a. Dedicated team to handle negotiations with large-format stores.
b. Focus on increasing shelf visibility and in-store promotions.
3. E-commerce Channels:
a. Employ data-driven marketing to target specific customer segments.
b. Utilize Tata Neu to promote bundled offers and cross-sell across product categories.
4. Direct-to-Consumer (D2C):
a. Promote own e-commerce website for exclusive products and offers.
b. Invest in digital marketing and influencer collaborations.

D. Technology Integration:

 Use Salesforce or SAP CRM for customer relationship management.

 Implement AI-driven demand forecasting and inventory optimization tools.

 Adopt mobile applications for real-time sales tracking and distributor communication.

 Utilize Geographic Information Systems (GIS) to plan efficient delivery routes.

3. Distribution Network Flow:

 1. Factories: Located in strategic zones to minimize production and distribution costs.
a. E.g., Tea factories in Assam, Salt production facilities in Gujarat.
2. Warehouses: Regional warehouses in major metro cities (Delhi, Mumbai, Chennai, Kolkata)
with spoke warehouses in Tier-2 and Tier-3 cities.
3. Distributors: Appointed for every 3-5 districts, categorized as urban and rural distributors.
4. Retailers:
a. Urban: Supermarkets, Kirana stores, modern retail outlets.
b. Rural: Small village shops, haats, and fairs.
5. Consumers: End users purchasing through retail outlets, e-commerce, or direct channels.

4. Performance Metrics:

 Sales KPIs: Volume growth, revenue, new account acquisition, and customer retention rate.

 Distribution KPIs: Service levels, stock availability, order fulfillment rate, and delivery time.

 Channel Partner KPIs: Distributor satisfaction score, secondary sales, and scheme adoption
rate.

5. Challenges and Solutions:

1. Rural Penetration:
a. Challenge: Limited infrastructure and low product awareness.
b. Solution: Deploy micro-distributors and leverage Tata’s CSR programs for community
engagement.
2. Inventory Management:
a. Challenge: Overstocking or stockouts.
b. Solution: Implement Just-in-Time (JIT) inventory and demand planning tools.
3. Competition:
a. Challenge: Intense competition from established and new entrants.
b. Solution: Focus on brand loyalty programs, quality assurance, and localized marketing
campaigns.

6. Tata FMCG Product Distributorship Requirements:

To become a distributor for Tata FMCG products, certain prerequisites must be met:

 Investment:

o A retail store and a warehouse are required.

o Security fees are applicable for each.

o Total investment ranges between ₹15-20 lakhs, depending on location and business
scale.