nestle

Topics: Marketing, Maggi, Nestlé Pages: 15 (1421 words) Published: March 31, 2014
Good Food, Good Life

Nestle
• Nestlé was founded in 1867 by Henri Nestlé in Switzerland • Merged with the Anglo-Swiss Condensed Milk Company in
1905
• Today it is the world's largest and most diversified food Company, and is about twice the size of its nearest competitor in the food and beverages sector.
• Nestlé employ around 250,000 people from more than 70
countries and have factories or operations in almost every
country in the world

Nestlé Principle
• Nestlé is based on the principle of decentralization, which means each country is responsible for the efficient running of its business - including the recruitment of its staff.

Nestle India Products
Nestlé India - Famous brand names

Milk Products & Nutrition

Beverages

Prepared Dishes & Cooking
Aids

Chocolates &
Confectionary

Nestle Milk

Nescafe Classic

MAGGI 2-MINUTE Noodles

Nestle Kitkat

Nestle Slim Milk

Nescafe Sunrise
Premium

MAGGI Imli Pichkoo

Nestle Munch

Nestle Dahi

Nescafe Cappuccino

MAGGI Sauces

Nestle Bar One

Nestle Bhuna Jeera Raita

Nescafe Sunrise

MAGGI Healthy Soups

Nestle Milky Bar

Nestea

Nestea Iced Tea

MAGGI CUPPA MANIA

Nestle Polo

Nestle Milkmaid

MAGGI Vegetable
Atta Noodles

Nestle Eclairs

Nestle Everyday Whitener

MAGGI Pazzta

Distribution System
• Competitive edge over its existing rivals.
• Nestlé has its own distribution networks equipped with all necessary transportation facilities.
• They transport their products at major regional sales offices, which are situated at different cities of India.
• These sales offices (distribution centres) have their
own vans with sales people who sell and transport goods to
the small retailers.

Inbound Logistics

Packaging

Processing

Raw Cocoa

Cardboard/Material
manufacturer

Outbound Logistics

Packaging
Transportation

Wholesaler

Grocery Store

Customer

Nestle Distribution Channel
Mother Godown
Carriage and Forwarding Agent
Distributor

Retailer

End Customer

Super-Stockist

Wholesaler

Re-distributor

Retailer

Nestle Distribution Channel
• Products are sent to the C&F Agents of the company from its Manufacturing Unit.
• Later it flows from the Manufacturing Unit to Distributor and Super Stockist.
• The Distributor is responsible to manage the availability of products in his area
• Super Stockist supplies the goods to the Re-Distributor who is in charge of managing the availability outside the region of the Distributor.
• The Distributor and Re-Distributor, then supplies the products to Wholesaler and Retail in their respective region or area.

Nestle Distribution Channel
C & F Agent
(Karnataka)

Distributors D1
(Bangaluru)

Distributors D2
(Mysore)

Re-Distributors
(Gokarna)

Super Stockist

Re-Distributors
(Kundapur)

Selection of Distributors
• The Criteria followed are:
1.

Capital Investment



2.

Relevant experience




3.

Prior experience in FMCG sector is preferred to save on training expenses Distributor should not be dealing in Competitor’s product
Should handle entire range of Nestle products (Both fast and slow moving SKU’s)

Infrastructure




4.

Depends on both present and future capital investments by distributors Amount vary from Area-wise to marketwise

Godowns / Storage space with appropriate refrigeration as per product needs Delivery vehicles
Salesmen

Company’s discretion based on markets served

Terms of Operation
• Sales force of distributor is divided into 3 heads namely: 1.
2.
3.

Milk Products
Chocolates
Other products

• All the 3 teams visit the retailers once in a week on different days
• Sales force is complimented by a weekly visit to the district by the sales executive of the company
• Idea is to supplement the lags in the distribution by
wholesaler and in certain specific cases to push extra stock in the market

Terms of...
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