COMPANY PROFILE:

A Swiss multinational food and beverage company headquartered

in Vevey ,Switzerland.

Products include baby food, bottled water, breakfast cereals,

coffee and tea, confectionary, dairy products, ice cream, frozen

food, pet foods, and snacks.

Beverage Partners Worldwide with The Coca-Cola Company

Nestlé with Colgate-Palmolive.

Biggest competitor Cadbury.

Nestle's Principle:

Nestle is based on the principle of decentralization,

which means each zone is responsible for the

efficient running of its business - including the

recruitment of its staff.

Nestle India:Milk Products &

Nutrition

Beverages Prepared Dishes

& Cooking Aids

Chocolates &

Confectionary

Nestle Milk Nescafe Classic MAGGI 2-MINUTE

NoodlesNestle 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 Nestle Alpino

Distribution Channel

Mother

Godown

Carriage & Forward Agency

Super StockistDistributor

Re-DistributorWhole salerRetailer

End Customer Retailer

Criteria to be a channel member:Capital Investment

Distributor:40-50 Lakhs

Relevant experience

3-5 year experience in FMCG sector is preferred

Distributor should not be dealing in Competitor’s product

Should handle entire (stock keeping unit )

Infrastructure

Godowns/Storage space with appropriate refrigeration as per product

needs

Delivery vehicles, Salesmen, ETC.

Distribution margin:

DISTRBUTOR WHOLESALER RETAILER

5-6% 1.5-2% 7-8%

Distribution point in

Bhubaneswar:

Shree Ram Enterprises

Distributor:Mr. Bikram Kumar Jain (Proprietor)

Products Distributor-Nestle tea, coffee machine, maggi,

sause, coffee, milk made, chocolate

BADAGADA BRIT COLONY ROAD, BHUBANESWAR ,

KHURDA

Order Delivery System:

Take the order in morning and delivery takes

place in evening or next day morning by

delivery boy.

Appoint 8 delivery boy to deliver

Having 6 delivery van

Counter Analysis:

Types of Counter

Super Market

Small Grocery Store

Big Grocery Store

Convenience Store

Betel shop

Medicine store

What are Schemes for retailer &

consumer?

Promotional schemes to consumers & Trade Partners Such as

free packs for Consumers, gifts, bundling, price off etc.

For retailer they provide some Coupon, Bulk discount ,

Additional Margin , Free packs

How they distribute?

Sales force of distributor is divided into 3

heads

1. Milk Products-A

2. Chocolates-B

3. Other products-C

• All the 3 teams visit the retailers once in a week on

different Days

• Sales executive of the company visit once in week

to each distributor to train sales man.

• Idea is to keep an eye in the distribution by

wholesaler and in certain specific cases to push

extra stock in the market.

Credit Policy:

• Distributors are termed as Cash Distributors because

the company charges the distributors before the stock

is delivered

• Company has connected the distributor online and

All the transactions happen online

• The distributor sells goods on credit; the period of

credit ranges from 1-2 week

• The wholesaler allows discount of 1% on cash

payment (company policy followed by the distributors).

Stock Policy:

As per the company regulations the distributor is supposed to

maintain a stock of 3 weeks which monetary value is equals to

Rs. 30 lakhs for the distributor.

A distributor place an order before 8 days & they received conformation after 2-3 days & in that period they can negotiate.

Distributor come under slow moving SKU’s clubs & retailer are in fast

moving SKU’s

Company DUMPS significantly on the distributors, the distributor

has to mange the supply by the company

Lead period: Lead periods in providing stocks to the distributors, differs

from the SKU and quantity ordered (3-5 days)

Some SKU’s like dairy products are delivered correspondingly with taking order but some are sent from the warehouses

A higher quantity ordered has to be reload from the

Warehouse.

Return Policy: Company follows a policy of return when the product has

past its expiry date, damaged or has a defect

Replenishment is done with cash and happens at the end of

every six months

Return on Investment: Company does not give any guarantee to the distributor

Storage policy: Distributor maintains Cold Storages and Deep Freezers for the

storage of the products.

Distributor has to bear all expenses pertaining to Infrastructure

requirements.

Sales Force: The remuneration and all other expenses for sales force are

carried by the distributor.

How they give training to salesman?

Training programs for sales man of distributor:

Nestle Quality System

Good Warehousing Practices (GWP)

Good Distribution Practices

Major aspects of the training program are:

1. Stocking as per norms

2. Good Warehousing practice

3. Accounting

4. Handling of Bad goods

5. Temperature control for chocolates and dairy products

Thank You

channel & distribution system of nestle india ltd

Education