Nestle Distribution Channel

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Nestle Distribution Channel

By | December 2010
Page 1 of 8
Table of Contents
Sr. No.| Title| Page Number|
1| Introduction| 2|
2| Distribution Channels Structure| 2|
3| Terms of Appointment and Incentives for Distribution Channels| 3| 4| Reporting, Control and evaluation system for their sales force| 5| 7| Recommendations and Conclusion| 5|
8| References & Bibliography| 6|

Introduction:
Success toady in the competitive world has become very difficult. This is because it does not solely depend on basic factors but on all the factors related to the organisation. Earlier it was possible for an organisation to dominate in the market but today due to lot of different methods, channels and modern tools for marketing and functioning of the organisation, the world has become very competitive. In this assignment the author is concentrating on two major players in this competition, the distribution channels and the sales force. The company in discussion here is Nestlé UK and the product for narrow research is Nestlé’s own most successful brand “Kit Kat”. Nestlé homes itself in Switzerland since 1867 today is one of the world’s most successful organisation in the FMCG category. (www.total-logistics.eu.com, accessed 08 August 2010) It started its UK activities around 100years before and started their own manufacturing unit. Today Nestlé has 8 manufacturing plants in UK with two head offices in Croydon and Dublin. (www.nestle.co.uk, accessed 08 August 2010)

Distribution Channels Structure:

According to Brassington and Pettitt, a channel structure is a route selected in order to move the product to the market through different intermediaries. This is the distribution channel structure which proves vital for the smooth movement of the product and making it available to the end consumer. Distribution Channel Structure forms the fourth element of the Marketing mix for any product. The ‘Place’ element, and therefore it becomes an important factor. There are various channels of distribution...