Nescafe and its relationship with its channel partners. In this case Grofer being online and metro cash and carry as offline partners

3. Online Offline

4. • Metro cash & carry was founded in the year 1964
• The first METRO Cash & Carry wholesale center in India opened in Bangalore in 2003
• It’s business concept is targeted towards professional customers rather than end consumers.
• METRO also introduced the concept of Cash & Carry in India.
• METRO Cash & Carry is represented in 25 countries with over 750 self-service wholesale stores.

5.  Grofers was founded in the year 2013
 Grofers is an app-based delivery service that connects consumers with local stores.
 Users can order through the app and get everything delivered to their doorstep, quickly.
 Grofers aims to make the local shopping experience of consumers easy and pleasant by connecting
them to the merchants in their neighborhood through an easy to use mobile platform

6.  Bulk breaking for Nescafe is high in both Metro and Grofers.
 Spatial Convenience is high for Grofers as they deliver the product directly
to the customer.
 Waiting Time is more in Grofers and less in Metro.
 Product Variety: Breadth of Nescafe item are low as they sell only coffee
products but depth for Nescafe items are high as they have different
ranges of product and Metro have it all.
 Customer Service is high for Metro and low Grofers.
 Information provision compared to Metro is high for Grofers.

7. Manufactures
Wholesaler
Retailers
Consumers
INSERT LOGO HERE

8. Grofers
Local Stores
Consumers
INSERT LOGO HERE

9. Threats
• Health conscious people avoiding coffee
Opportunities
• Tie-ups with corporates
• Cheaper packets for rural areas
Weakness
• Health conscious people avoid coffee as it
Contains caffeine
Strength
• Strong Nestle brand name
• Excellent advertising and visibility
• Good product distribution and availability
• Lots of flavors and varieties available
SWOT
Analysis

10. • Hotels
• Restaurants
• Caterers
• Traders
• Other business
professionals.
• Local retailers
• End consumer

11. • When it comes to buying products, end consumers have not entirely accepted the online market because
people prefer to look, feel and understand through first hand experience.
• Big corporate houses cannot places a bulk order for certain types of goods without witnessing their real
quality. This sets online players a few notches behind in the race.
• Again a lot of customers feel that many of the online sellers trick them by offering fake discounts, wherein the
products are first overpriced without customers knowledge .
• No experts are around to guide customers when they are online.

12. In 2015 Nestle faced criticism due to one of its product known as Maggie. This in turn lead to the downfall in
demand for other Nestle products including Nescafe.
• Managing channel conflicts
Sales officer, Brand manager and Nutritional officers are involved in managing the channel structure. They visit
the market and channel distribution partners from time to time to weed out any conflicts, and at large, to make
sure the smooth functioning of the channel. Sales officer ensure that the projected sales figures are being met
through various partners. He assigns territories, quotas and monitors the members of his sales team. Sales
manager directly acts upon the sales figures and quotas set my executive level. Any conflicts in channel
structure will generally cause disruption in sales. Sales manager will therefore interact with various channel
partners on a regular basis to diagnose and resolve any conflicts as quickly as possible.

13. • Nescafe is a very well known brand in India and thus has referent power.
• Grofers is new to the market and thus faces coercive power from other offline retailers.
• Metro cash & carry is still preferred by businesses like hotels, local traders etc and thus has got expert power
over its competitors.

14. Enter Your
Screenshot Here
Supplier,
Manufacturer,
Farmer
Metro cash &
carry
Traders, Hotels,
Cafes, Small
businesses
Consumer / End
User
Supply chain
01
02
03
04

15. Enter Your
Screenshot Here
Localstores.For
examplegrocery
stores.
Grofers
End Consumers
Supply chain
01
02
03