Documente Academic
Documente Profesional
Documente Cultură
Presented By:
Gopal Kumar
Tapabrata Banerjee
Prateek Tiwari
Pedagogy
Nestl's Principle
SKUs
Distribution Channel
Order Delivery System
Counter Analysis
Schemes
Terms of Operations
Distributors Cost
DBs ROI Calculation
DIP Training
Nestles Principle
Nestl 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.
Nestle India
Beverages
Nestle Milk
Nescafe Classic
MAGGI 2-MINUTE
Noodles
Nestle Kitkat
Nescafe Sunrise
Premium
MAGGI Imli
Pichkoo
Nestle Munch
Nestle Dahi
Nescafe Sunrise
MAGGI Healthy
Soups
Nestea
MAGGI CUPPA
MANIA
Nestle Polo
Nestle Milkmaid
MAGGI Vegetable
Atta Noodles
Nestle Eclairs
Nestle Everyday
Whitener
MAGGI Pazzta
Distribution Channel
Mother
Godwon
Distributor
Retailer
End Customer
Super
Stockist
Whole
saler
Re-Distributor
Retailer
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 Competitors product
Should handle entire range of Nestle products (Both fast and slow moving
SKUs
Infrastructure
Godowns / Storage space with appropriate refrigeration as per product
needs
Delivery vehicles
Salesmen
Counter Analysis
Types of Counter
Super Market
Small Grocery Store
Big Grocery Store
Convenience Store
Paan Plus
Chemist
Nestles Margins
C&F
Super
Stockist
Distribu
tor
ReDistributo
r
Wholesal
er
Retailer
1.5%
2-2.8%
5.8%
3.8%
1.5-2%
7-8%
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
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
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)
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 SKUs clubs them with fast
moving SKUs for the retailers
Company DUMPS significantly on the distributors, the distributor
has to mange the supply by the company
Terms of Operation(contd..)
Lead period
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
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.
Merchandisers 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
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
Thank You