Nestle Sales & Distribution

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Nestle Sales & Distribution

  1. 1. Ananya SunayanaGourav ShrivastavaJasmine Kaur NarulaGokulnath SubramanianTanwi Shrivastava
  2. 2. • Henri Nestle founded the company1866 in Switzerland • Setup their first production plant in1961 India at Moga, Punjab • Currently the world’s number one 1 diversified food company • Years of business in India starting100 from 1912 to Chennai and Kolkata
  3. 3. 1868• Henri Nestle designed the logo based on Nestle’s german meaning i.e: Little nest1966• Combined mark formed along with the word “Nestle”. Design Simplified.1988• Fledglings reduced to 2 to reflect modern family of 2 children and 1 mom.1995• New simplified logo which reiterates Nestle is not purely a nutrition company.
  4. 4. What makes Nestlé the world’s largest food company are the millions of consumers across the globe who put their trust in its products, bite after bite, sip after sip, day after day.
  5. 5. National Zonal Regional Area Territory Zonal Sales Manager North Sales Pallet Salesmen Administration Zonal Sales Executive Regional Sales Manager Manager South Territory Area Sales Manager Incharges(SO) Zonal SalesNational Sales Manager Manager West Distributor Zonal Sales Salesmen Manager East Zonal Sales Manager Central
  6. 6. • Work Environment Distribution Salesmen(DS) are direct reportees to theCash Distributors(CDs). Most CDs listened to ASM/TI guidelines.Very few CDs work along with the DS in the market. Targets aredictated to DSs.• Training and Motivation Annual Training workshop for all Distributor and PalletSalesmen irrespective of their experience. Considered more as anouting for the salesmen.• Performance Incentives Basic Pay as fixed by CD. Ranges between 3750 - 5500 Maximum Incentive for DS : 1200/month Average Incentive for DS : 750/month Based on turnover achievement. Controlled by CDs.
  7. 7. Manufacturing 7 Plants across India Plant Carrying and Forwarding 1 C & F per state Agent(C & F) 1 Distributor per city Modern Cash Super Stockist 1300 in 2010 Trade DC’s Distributor 1 Super stockist per city Multiple Purchase points per Re – Distributor Retailer Wholesaler region 1 Re-Distributor per region Last level purchaseRetailer Wholesaler STING points(Mostly rural) Supply happens in weekly beats
  8. 8. C & F Agent 1.5% 1.5% 1.5%Super Stockist 2 – 2.8 % -NA- 2–3% Distributor/ Stockist 5.8 % 6.5 % 4.8 – 5.2% Re – Distributor 3.8 % -NA- 4–5% Wholesaler 1.5 – 2 % 2% 1–2% Retailer 7–8% 8 – 10 % 5–7%
  9. 9. C&F Super Distributor Re – Wholesaler Retailer Agent Stockist DistributorLanding 33.60 34.08 34.08 34.70 36.05 36.77 PriceSelling 34.08 34.70 36.05 36.05 36.77 39 – 45 Price MRP 45
  10. 10. • Capital Investment Varies from region to region. Working capital required: C & F Agent -> 3 – 5 Crores Super Stockist -> 60 - 80 lakhs Distributor -> 25 – 30 lakhs• Relevant Experience Needs to have prior experience in FMCG Sector. Shouldnot deal in a competitor’s product line.• Infrastructure a) Godowns /Storage space as per territorial requirement b) Delivery Vehicles/Refrigeration for chocolates c) Salesmen/ Personnel
  11. 11. • Channel Conflict When higher members in the channel sell theirproducts directly to the last levels, bypassing theintermediates. Occurs mostly due to overproduction anddumping of goods by the higher channel member.• Undercutting by Wholesaler When a Wholesaler undercuts his margin andsupplies to retailers thereby cutting off potentialcustomers for the distributor.• Invasion of Territory Certain ASMs and Super Stockists indulge ininvasion of neighbouring territories. They undercut theirmargins and dump their goods there to increase sale. Thisis mainly due to higher targets given.
  12. 12. • Lack of Transparency between partners Stock on hand at different levels in the chain notclear to members above them• Display incentives do not reach till retailer leading topoor display of new products
  13. 13. • C & F Agent • M/s Logi Nish Logistics India Pvt Ltd, Chennai• Super Stockist • M/s Kokila Agencies, Vellore• Distributor • M/s Sri Shakthi Ganapathy Agencies, Arni• Wholesaler • M/s Kamal & Co, Vellore • M/s Rajiv Stores, Chennai• Retailers • M/s KPK Super Market, Vellore • M/s Harish Food Zone, Vellore
  14. 14. • Zonal Sales Manager • Mr. M V Subramaniam , RSM Chennai(North TN)• Area Sales Manager • Mr. R Shanmughanathan , ASM Chennai – II• http://www.slideshare.net/nikunj1986/distribution-network-of-nestle-kit-kat ; [19 - 03 – 2012 21:30pm]• Nestle India Website ; http://www.nestle.in/ ; [20 – 03 – 12 19:29pm]• http://www.scribd.com/doc/24419732/Nestle-Ppt ; [20 - 03 – 1217:15pm]• The Journal of Business Perspective· Vol. 14· No.4· October-December2010

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