The distribution channel is having an important role in the positioning of the product because we know that the distribution channel is a tool by which we can reach our product to the final consumers. That is why selecting a distribution channel is an important aspect of building a competitive advantage for companies of all sizes. Distribution channels include their own direct sales force, retailers, distributors and the Internet. The right distribution channel ensures that customers in different locations across the country or around the world can buy their products and get the right level of service from your company. To select the right distribution channel for your business, you should consider what a channel can offer, including location and reach, skills and resources, administration costs, and degree of control.
The ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As a progressively Indianised Company property, the Company's name 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-company portfolio spanning a wide range of businesses - fast moving consumer goods comprising food, personal care, cigarettes and cigars, branded clothing, education and stationery products , Incense sticks and security parties, Paperboards and Special Papers, Packaging, Agribusiness and Information Technology - the complete stops in the name of the Company were eliminated as of September 18, 2001. The Company is now renamed As 'ITC Limited'. Although the Company's first six decades of existence were primarily focused on the growth and consolidation of the Cigarette and Tobacco Leaf business, the 1970s witnessed the beginning of a corporate transformation that would lead to momentous changes in life of the company.