INTRODUCTION TO TOPIC: CHANNEL MANAGEMENT: Distribution plays important role in success and failure of any organization . The organization may fail, if its distribution networks are not efficient and unable to provide the necessary items at required place and at reasonable time. Distribution system of Nestlé is one of major source of 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 centers) have their own vans with sales people who sell and transport goods to the small retailers. M A N U F A C T U R E R CARRIAGE & FORWARDER AGENT DISTRIBUTOR WHOLESALER RETAILER End customer tRETAILER In general Nestlé follows the above sequence for distribution of its products. In India this strategy is working very effectively and efficiently. By the above diagram, we can understand that the products are sent to the C&F Agents of the company from its Manufacturing Unit. Then at later stage it·s been sent to Distributor and Super Stockist. Here, Distributor is the responsible person to manage the availability of products in his area, whereas Super Stockist supplies the goods to Re-Distributor who is responsible to manage the availability of outside the region of Distributor. Then the Distributor and Re-Distributor supply the products to Wholesaler and Retail in their respective region or area. There will be a single C&F Agent for every state who supplies the goods to the Distributor. Now, distributor will be appointed by the company for every urban city. That distributor will be to maintain the proper flow of goods in his region. Whereas on the other hand there will be a Super Stockist in the same city who will supply the products to the Re-Distributor who will be there at the near by places of that city
OBJECTIVES: To identify how the distributors manages the supply of goods to whole seller and retailer • Perception of retailers towards the distribution channel of the nestle • To consider the part that supply chain plays in delivering value to the end customer •
COMPANY PROFILE: Nestlé was founded in 1866 by Henri Nestlé and is today the world's biggest food and beverage company. Nestlé employ around250,000 people from more than 70 countries and have factories or operations in almost every country in the world. The history of Nestlé began in Switzerland in 1867 when Henri Nestlé, the pharmacist, launched his product Farine Lactée Nestlé,a nutritious gruel for children. Henri used his surname, which means ·little nest·, in both the company name and the logotype. The nest, which symbolizes security, family and nourishment, still plays a central role in Nestlé·s profile. Since it began over 130 years ago, Nestlé·s success with product innovations and business acquisitions has turned it into the largest Food Company in the world. As the years have passed, the Nestlé family has grown to include chocolates, soups, coffee, cereals, frozen products, yoghurts, mineral water and other food products. Beginning in the 70s, Nestlé has continued to expand its product portfolio to include pet foods, pharmaceutical products and cosmetics too. Today, Nestlé markets a great number of products, all with one thing in common: the high quality for which Nestlé has become renowned throughout the world The Company's strategy is guided by several fundamental principles. Nestlé's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short term performance. The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. Taste of Nestlé in each of the countries where Nestlé sell products .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. That's not to say that every operating company can do as it wishes. Headquarters in Vevey sets the overall strategy and ensures that it is carried out. It's an approach that is best summed up as: 'centralize what you must, decentralize what you can'. Nestlé is a company which is present in all over the world but it has difference and unique motto to deal in all over the world. Nestlé believes that they should think about their organizations globally but they deal with people by interacting with them locally. ´THINKING GLOBALLY ACTING LOCALLY INTRODUCTION TO NESTLÉ INDIA Nestlé India is a subsidiary of Nestlé S.A. of Switzerland. With seven factories and a large number of co-packers, Nestlé India is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction. The Company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. This has earned it the trust and respect of every strata of society that it comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'
Nestlé·s relationship with India dates back to 1912, when it began trading as The Nestlé Anglo-Swiss Condensed Milk Company(Export) Limited, importing and selling finished products in the Indian market. After India·s independence in 1947, the economic policies of the Indian Government emphasized the need for local production .Nestlé responded to India·s aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestlé to develop the milk economy. Progress in Moga required the introduction of Nestlé·s Agricultural Services to educate advice and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans. Nestlé set up milk collection centers that would not only ensure prompt collection and pay fair prices, but also instill amongst the community, a confidence in the dairy business. Progress involved the creation of prosperity on an
on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well. For more on Nestlé Agricultural Services, Nestlé has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods. The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. The culture of innovation and renovation within the Company and access to the Nestlé Group's proprietary technology/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts. It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality, safe food products at affordable prices. Nestlé India manufactures products of truly international quality under internationally famous brand names such as NESCAFÉ,MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Fresh 'n' Natural Dahi and NESTLÉ Jeera Raita. Nestlé India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where It operates. Competetors of nestle are Cadbury, Bru, Amul etc.
PRODUCTS OF NESTLE: Milk products and nutrition: NESTLÉ EVERYDAY Ghee NESTLÉ Milk NESTLÉ Slim Milk NESTLÉ NESVITA PRO-HEART MILK NESTLÉ Fresh 'n' Natural Dahi NESTLÉ Fresh 'n' Natural Slim Dahi NESTLÉ Jeera Raita NESTLÉ NESVITA Dahi NESTLÉ MILKMAID Fruit yoghurt NESTLÉ MILKMAID NESTLÉ NIDO NESTLÉ Dahi
BEWAREAGES: NESTEA ICED TEA WITH GREEN TEA NESTEA ICED TEA NESCAFÉ CLASSIC NESCAFÉ SUNRISE Premium NESCAFÉ SUNRISE Special NESCAFÉ CAPPUCCINO NESTEA Instant Hot Tea Mixes NESCAFÉ 3in1
PREPARED DISHES AND COOKING AIDS: MAGGI 2-MINUTE Noodles MAGGIVegetablttaNoodles MAGGI CUPPA MANIA MAGGI Healthy Soups MAGGI Masala-ae-Magic MAGGI Sauces MAGGI Pichkoo MAGGI Pizza Mazza MAGGI MAGIC Cubes MAGGI Vegetable Multigrainz Noodles MAGGI Bhuna Masala MAGGI Coconut Milk Powder MAGGI Pazzta MAGGI Sanjeevni Cup Soup
CHOCOLATE AND COMFECTIONARY: NESTLÉ KIT KAT NESTLÉ KIT KAT CHUNKY NESTLÉ MUNCH NESTLÉ MUNCH POP CHOC NESTLÉ MILKYBAR NESTLÉ MILKYBAR CHOO NESTLÉ BAR-ONE NESTLÉ Milk Chocolate POLO NESTLÉ Eclairs NESTLÉ MILKYBAR Eclairs NESTLÉ MILKYBAR Crispy Wafer
HYPOTHESIS: TO IDENTIFY WHETHER THE SUPPLY OF NESTLE PRODUCTS MEETS THE DEMAND OF WHOLE SELLERS AND RETAILER • •
If supply meets the demand use null hypothesis If supply does not meet the demand follow alternate hypothesis
REASEARCH METHODOLOGY: PRIMARY DATA (Direct Contacts) is the data observed or collected from first hand Experience. For example, a structured survey might be conducted for the purpose of discovering current attitudes on a particular topic; raw survey responses would be primary data. There are several methods of collecting primary data, particularly in surveys and descriptive researches. In surveys we obtain primary data either through observation or through direct communication with respondents in one form or another or through personal interviews Here the primary data is obtained by Questionnaire Method
SECOUNDARY DATA (Tele calling) is data that has already been collected and collated by somebody for some reason other than the current study. It can be used to get a new perspective on the current study, to supplement or compare or to use parts of it, as another study may prove costly and time consuming e.g. the census. Secondary data can further be divided into two parts. Qualitative data includes biographies, personal letters, diaries, records, documents, published material, computer database, policy statements, concerned person (HR) visiting cards, or any one who takes care of recruitments etc. Quantitative data would have market research, census, and Economic documents, planning documents or specimens. The list is endless and once the type of secondary data is identified, it becomes easy to locate the source. Since the data has been collected for another purpose by somebody else, it may not be fully useful, the context could have changed or data could have been doctored.
LIMITATIONS: • The study is limited to small area. • Limited sample size and random sampling having a drawback of results. • The entire customer will not giving good response • There was no way to check the authenticity of the information given by the respondents and thus had to be accepted as genuine. •
Topic is vast but availability of information and timeline is short.
