An In depth Study on Sales & Distribution Management practices at Nestle India Ltd. Finding were counter analysis,distribution system and order taking.Suggestion was to have an efficient distribution system according to the counters

1. Channel & Distribution System
of Nestle India Ltd
Presented By:
Gopal Kumar
Tapabrata Banerjee
Prateek Tiwari

2. Pedagogy
• Nestlé's Principle
• SKUs
• Distribution Channel
• Order Delivery System
• Counter Analysis
• Schemes
• Terms of Operations
• Distributor’s Cost
• DB’s ROI Calculation
• DIP Training

3. Nestle’s 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.

4. Nestle India
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

5. Distribution Channel
Mother
Godwon
Carriage & Forward Agency
Super Stockist
Distributor
Re-Distributor
Whole saler
Retailer
End Customer Retailer

6. Selection of Channel Partners
 Capital Investment
 Varies from region to region
 C & F Agent :3-5 Crores
 Super Stockist:60-80 Lakhs
 Distributor:25-30 Lakhs
 Relevant experience
 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
 Godowns / Storage space with appropriate refrigeration as per product
needs
 Delivery vehicles
 Salesmen

7. Order Delivery System
DBSRs take the order in morning and delivery
takes place in evening or next day morning by
delivery boy.

8. Counter Analysis
Types of Counter
• Super Market
• Small Grocery Store
• Big Grocery Store
• Convenience Store
• Paan Plus
• Chemist

9. Nestle’s Margins
C & F Super Stockist Distributor Re-Distributor Wholesaler Retailer
1.5% 2-2.8% 5.8% 3.8% 1.5-2% 7-8%

10. Schemes
Secondary schemes: Promotional schemes to
consumers & Trade Partners
Such as free packs for
Consumers,gifts,bundling,price off etc.
For retailers:Coupon,Bulk discount,Additional
Margin,Free packs

11. Terms of Operation
Sales force of distributor is divided into 3 heads namely:
1. Milk Products
2. Chocolates
3. 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

12. Terms of Operation(contd..)
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
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 (policy followed by the wholesaler)

13. Terms of Operation(contd..)
Stock Policy
• As per the company regulations the distributor is supposed to
maintain a stock of 3 weeks which in monetary terms equals to
Rs. 30 lakhs for the distributor.
• Stock is formalized by the company; the dealer can negotiate on
3-4 end days, the stock policy is formed for the month
• Distributor to push in slow moving SKU’s clubs them with fast
moving SKU’s for the retailers
• Company DUMPS significantly on the distributors, the distributor
has to mange the supply by the company

14. Terms of Operation(contd..)
Lead period
• Lead periods in providing stocks to the dealers differs from the
SKU and quantity ordered
• 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 replenished 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

15. Terms of Operation(contd..)
Storage policy
• Distributor maintains Cold Storages and Deep
Freezers for thestorage of the products
• Distributor has to bear all expenses pertaining to
Infrastructurerequirements
Sales Force
• The remuneration and all other expenses for sales
force areborne by the distributor.

16. Merchandiser’s jobs
• Presentation to potential clients
• Researching Costs, new design ideas, images &
graphics.
• To observe the visibility of the product of an
outlet in window, banner, poster

17. DIP Training
Training programs for C&F agents which includes
modules on:
• Nestle Quality System
• Good Warehousing Practices (GWP)
• Good Distribution Practices
Major aspects of the training program are;
1. Stacking as per norms
2. Good Warehousing practices
3. Accounting
4. Handling of Bad goods
5. Temperature control for chocolates and dairy products

18. Thank You