A Study of Distribution Channel of Nestle in Bhubaneswar

Company Profile: Nestlé S.A. is a Swiss multinational food and beverage company headquartered in Vevey, Switzerland. It is the largest food company in the world measured by revenues. Nestlé's products include baby food, bottled water, breakfast cereals, coffee, confectionery, dairy products, ice cream, pet foods, and snacks. 29 of Nestlé's brands have annual sales of over 1 billion Swiss francs (about $ 1.1 billion), including Nespresso, Nescafé, Kit Kat, Smarties, Nesquik, Stouffer's, Vittel, and Maggi. Nestlé has around 450 factories, operates in 86 countries, and employs around 328,000 people. It is one of the main shareholders of L'Oréal, the world's largest cosmetics company. Nestlé was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in 1866 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri Nestlé. The company grew significantly during the First World War and again following the Second World War, expanding its offerings beyond its early condensed milk and infant formula products. The company has made a number of corporate acquisitions, including Crosse & Blackwell in 1950, Findus in 1963, Libby's in 1971, Rowntree Mackintosh in 1988, and Gerber in 2007. Nestlé has a primary listing on the SIX Swiss Exchange and is a constituent of the Swiss Market Index. It has a secondary listing on Euronext. In 2011, Nestlé was listed No. 1 in the Fortune Global 500 as the world's most profitable corporation. With a market capitalization of $233 billion, Nestlé ranked No. 9 in the FT Global 500 2013. Nestlé is the biggest food company in the world, with a market capitalization of roughly 191 billion Swiss francs, which is more than 200 billion U.S. dollars. In 2011, consolidated sales were CHF 107.6 billion and net profit 10.43 billion. Research and development investment was CHF 2.02 billion.

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Sales by activity breakdown 27% from drinks 26% from dairy and food products 18% from ready-prepared dishes and ready-cooked dishes 12% from chocolate 11% from pet products 6% from pharmaceutical products

From increasing the milk yield of their cows through improved dairy farming methods. the economic policies of the Indian Government emphasized the need for local production. confectionery and pet foods. ice cream. chocolate. importing and selling finished products in the Indian market. The company’s top six brands generate more than 70% of its total revenues. with a huge variety of products including dairy. where the Government wanted Nestlé to develop the milk economy. 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'.A. Progress in Moga required the introduction of Nestlé's Agricultural Services to educate. The Company insists on honesty. After India's independence in 1947. but also instill amongst the community. coffee. 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. of Switzerland. to irrigation. With eight factories and a large number of co-packers. bottled water. advise. integrity and fairness in all aspects of its business and expects the same in its relationships. a confidence in the dairy business. when it began trading as The Nestlé AngloSwiss Condensed Milk Company (Export) Limited. Nestlé responded to India's aspirations by forming a company in India and set up its first factory in 1961 at Moga. and help the farmer in a variety of aspects.000 brands. Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not . Nestlé set up milk collection centers that would not only ensure prompt collection and pay fair prices. Nestle India: Nestlé India is a subsidiary of Nestlé S. Punjab. infant food.2% from baby milks  Sales by geographic area breakdown 32% from Europe 31% from Americas (26% from US) 16% from Asia 21% from rest of the world Nestle owns and operates about 6. scientific crop management practices and helping with the procurement of bank loans. Nestlé's relationship with India dates back to 1912.

. 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. as well. MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLÉ Milk. Health and Wellness through its product offerings. NESTLÉ Dahi and NESTLÉ Jeera Raita. The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste. 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. safe food products at affordable prices. MILKYBAR. MAGGI. Nestlé India manufactures products of truly international quality under internationally famous brand names such as NESCAFÉ. suppliers of packaging materials.just the transformation of Moga into a prosperous and vibrant milk district today. services and other goods. KIT KAT. BAR-ONE. NESTLÉ SLIM Milk. Nutrition. It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality. but a thriving hub of industrial activity.

The foundation stone for the new Centre was unveiled on 22nd of September. ‘Creating Shared Value’ or ‘Saanjhapan’ as we call it in India is about the impact of our business and engagement through it.A. These are therefore at the core of our business strategy and operations. it must consider the needs of two primary stakeholders at the same time: the people in the countries where we operate and our shareholders. Nestlé S. 2010.Nestlé India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where it operates. Water and Rural Development. announced the establishment of the first R&D Centre in India in 2010. in Manesar. Across our business and value chain in India we continue to ensure that we respond to social needs and environmental issues whilst improving our performance at the same time. a part of the global R&D network. Haryana. Creating Shared Value says that for our business to be successful in the long run. . The areas of greatest potential for joint value optimization with society for us are Nutrition.

00 5.00 137. Secretary for Ministry of Food Processing Industries. Zimmermann commented that the event not only marked Nestlé’s continuing long-term commitment to R&D.Mr.8g)PR Munch IN CERELAC STA2 Whe App Chry BIB 24x300g IN CERELAC STA3 Whe Ri Mxd Fruit 24x300g IN CERELAC STA3 Whe Ri Mxd Veg 24x300g IN CERELAC STAGE 1 Rice Bag In Box24x375gIN CERELAC STAGE 1 Rice Bag In Box24x375gIN CERELAC STAGE 1 Rice BIB 24x300g IN CERELAC STAGE 1 Whe Apple BIB 24x300g IN CERELAC STAGE 1 Wheat Apple BIB24x375gIN CERELAC STAGE 1 Wheat BIB 24x300g IN CERELAC STAGE 1 Wheat BIB 24x375g IN CERELAC STAGE 1 Wheat BIB 24x375g IN CERELAC STAGE 1 Wheat BIB 24x375g IN CERELAC STAGE 2 Rice Veg BIB 24x300g IN CERELAC STAGE 2 Rice Veg BIB 24x350g IN CERELAC STAGE 2 Rice Veg BIB 24x375g IN CERELAC STAGE 2 Rice Veg BIB 24x375g IN CERELAC STAGE 2 Whe Honey BIB 24x300g IN CERELAC STAGE 2 Whe Orange BIB24x300g IN CERELAC STAGE 2 Whe Orange BIB24x375g IN 330. Waszyk emphasized that the Nestlé Board’s decision to establish an R&D Centre in India at the request of Nestlé India.8g) IN CARAMEL ECLS pbg 36(100x3. and Mr.00 170. A. would be an additional competitive advantage.00 100.00 162. Helio Waszyk. Klaus E.00 100. Some of the latest SKU’s of products are:BABY n ME Maternal Nutrition Supl 24x400gIN BAR ONE Jar Promo 20(35X13g) IN CARAMEL ECLAIRS pbg 30(100x3. Nestlé India Limited.A. the choice of tasty. healthy. and nutritious products.00 115. Subodh Kant Sahai.00 122.8% and the margin of retailer is 12% whereas if schemes are added it adds up to 14-18%..00 162. Ashok Sinha.00 121.00 112. Honourable Minister of Food Processing Industries. Ambassador of Switzerland. was the Chief Guest for the ceremony. Mr. Nestle Product SKU’s and Margins The margin of C&F is 2. Philippe Welti. Government of India. but also celebrated the building of Nestlé’s first R&D Centre in India. Zimmermann. Chairman and Managing Director. Global Head of R&D Centres.5%.00 125.00 135.00 115. Mr. It would help accelerate the Company’s growth and at the same time contribute towards reducing nutritional deficiencies in the country.00 148.00 165.00 138. Mr. He mentioned that the R&D Centre would allow Nestlé to offer consumers in India and beyond. Mr. The margin of distribution is 5.00 138.00 167.00 .00 119.00 162. Also present at the ceremony were His Excellency Mr.00 166. Nestlé S.

00 180.00 18.00 129.00 260.3g) PR 1Unit Free IN KIT KAT 4F Fmly Pack (128x111.00 5.00 227.00 20.00 10.00 60.00 19.00 221.00 40.00 71.00 161.00 55.9g) IN KIT KAT Dark Multipack 120(3x27.00 237.00 121.00 14.00 172.00 165.5g) IN KIT KAT 4 Finger 18(18x37.00 20.00 60.00 142.00 5.00 5.00 238.00 15.00 78.00 5.00 239.00 227.5g) IN KIT KAT Fmly Pack 6X2F (128x108g) N1 IN LACTOGEN 1 Inf Formula Tin 24x400g IN LACTOGEN 1 Infant Formula BIB 24x400g IN LACTOGEN 1 Infant Formula BIB 24x475g IN LACTOGEN 1 Infant Formula BIB 24x475g IN LACTOGEN 2 FU Infant Form BIB 24x400g IN LACTOGEN 2 FU Infant FormulaBIB24x475gIN LACTOGEN 3 FU Inf Formula BIB 24x400g IN LACTOGEN 3 FU InfantFormula BIB24x450gIN LACTOGEN 3 FU InfantFormula BIB24x450gIN LACTOGEN 4 FU Infant Form BIB 24x400g IN LACTOGEN 4 FU Infant FormulaBIB24x450g MAGGI 2-MIN NDLS Mas 24x300g PR Mgc72 IN MAGGI 2-MIN NDLS Mas Hungroo 21x450g IN MAGGI 2-MIN NDLS Mas Hungroo84x112.00 124.6g) N1 IN KIT KAT 2 Finger 18(40x18g) N1 IN KIT KAT 3 Finger 18(24x27.00 175.00 15.00 353.00 123.00 .3g) IN KIT KAT 4F 18(18x37.5g IN MAGGI 2-MINN Masala Sachet 144x45g IN MAGGI 2-MINN Masala Sachet 252x35g IN MAGGI 2-MINN NDLS Guess Flavor 96x85g IN MAGGI 2-MINN NDLS Veg Atta 24x320gIN MAGGI 2-MINN NDLS Veg Atta 96x80 IN MAGGI 2-MINN NDLS Veg Atta 96x80 IN 161.00 145.00 237.00 10.00 175.00 60.00 165.00 129.CERELAC STAGE 2 Wheat Honey BIB24x350gIN CERELAC STAGE 2 Wheat Honey BIB24x375gIN CERELAC STAGE 2 Wheat Honey BIB24x375gIN CERELAC STAGE 3 Mixed Fruit BIB24x350gIN CERELAC STAGE 3 Mixed Veg BIB 24x375g IN CERELAC STAGE 3 Mixed Veg BIB 24x375g IN CERELAC STAGE4 MU 5 Fruit BIB 24x300g IN CERELAC STAGE4 MU 5 Fruit BIB 24x375g IN CERELAC STAGE4 MU Dal Veg BIB 24x300g IN CERL STA1 Whe Ri Khichdi BIB 24x300g IN CERL STA2 Veg Khichdi BIB 24x300g IN EVERYDAY Dairy Whitener Sachet 72x190gIN EVERYDAY DW 12x1 Kg IN EVERYDAY DW 20X750g IN EVERYDAY DW 288x20g IN EVERYDAY DW 32x400g PR Rs 20 off IN EVERYDAY DW 432x10g IN KIT KAT 1Finger 40(24x8.00 280.

00 120.00 15.00 28.00 15.00 39.00 20.00 .00 38.MAGGI 2-MINN NDLS Veg Atta 96x80 IN MAGGI 2-MINUTE NDLS MagicMas 96x72g IN MAGGI 2-MINUTE NOODLES FmlyPack16x540gIN MAGGI 2-MINUTE NOODLES Masala 12x600g IN MAGGI 2-MINUTE NOODLES Masala 16x450g IN MAGGI 2-MINUTE NOODLES Masala 24x300g IN MAGGI 2-MINUTE NOODLES Masala 48x150g IN MAGGI 2-MINUTE NOODLES Masala 48x180g IN MAGGI 2-MINUTE NOODLES Masala 96x75g IN MAGGI 2-MINUTE NOODLES Masala 96x90g IN MAGGI Cuppa Mania Ndl Yo Masala 48x70gIN MAGGI H&S 24x500g PR Pazzta Tom 64g IN MAGGI HOT & SWEET TCS Bottle 12x1kgIN MAGGI HOT & SWEET TCS Bottle 24x200g IN MAGGI Imli Sauce Doy 6(12x80g) IN MAGGI Masala-ae-Magic 10(9x40g) IN MAGGI Masala-e-Magic Sac 24(72x6g)IN FrH MAGGI Masala-e-Magic Sachet 24(72x6g)IN MAGGI Meri Masala Dumdaar Ndl 24x304g IN MAGGI Pasta Mushroom 96x64g IN MAGGI Pazzta Cheese 96x70g IN MAGGI Pazzta Cheese 96x70g IN MAGGI Pazzta Masala 96x65g IN MAGGI Pazzta Masala 96x65g PR GIFTS IN MAGGI Pazzta Masala Dbl Pack 48x130g IN MAGGI Pazzta Tomato 80x64g IN MAGGI Pazzta Tomato 80x64g IN MAGGI Pazzta Tomato 80x64g PR GIFTS IN MAGGI Pazzta Tomato Dbl Pack 48x128g IN MAGGI Rich Soups Chicken Sac 48X53g IN MAGGI Rich Soups Chicken Sac 48X53g IN MAGGI Soup Mixed Veg 48x44g IN MAGGI Soup Tomato 96x54g IN MAGGI Soups Mushroom 48x43g IN MAGGI Tom Ket 12x1kgPR MAG Ndl Mas160gIN MAGGI Tomato Ket Pichkoo 4(12x90g) IN MAGGI Tomato Ketchup Bottle 12x1kg IN MAGGI Tomato Ketchup Bottle 12x1kg IN MAGGI Tomato Ketchup Bottle 24x200g IN MAGGI Tomato Ketchup Bottle 24x500g IN MAGGI TomKet 24x500g PR HungroondlsFr IN MAGGI TomKet Pichkoo 4(12x90g) PR FrH IN MILKMAID Prtsk SCM EOE Tin 48x400g IN MILKMAID Prtsk SCM EOE Tin 48x400g IN MILKYBAR CHOO 30(24x14g) IN 20.00 80.00 20.00 79.00 10.00 39.00 15.00 32.00 3.00 45.00 5.00 89.00 40.00 39.00 28.00 97.00 20.00 42.00 20.00 20.00 120.00 29.00 20.00 59.00 20.00 78.00 122.00 10.00 20.00 3.00 60.00 15.00 18.00 20.00 40.00 18.00 58.00 78.

00 10.5g IN NESCAFE CLASSIC Sachet 96x50g IN NESCAFE CLASSIC Sachet 96x50g N1 IN NESCAFE My First Cup Sac 30(96x0.00 1.00 5.00 .00 240.00 10.00 390.00 10.0g) IN NESCAFE CLASSIC Sac 432x8g PR2g Fr N1 IN NESCAFE CLASSIC Sac 96x50g PR Rs7 off IN NESCAFE CLASSIC Sachet 25(96x0.00 10.00 2.00 121.6g) IN NESCAFE SUNRISE Sac 20((24+1)X10g) IN NESCAFE SUNRISE Sac 32(132x1.00 348.00 160.00 360.00 820.6g) IN MILKYBAR MANGO CHOO 16(24x24g) IN MILKYBAR Mould 12(24x18g) N1 IN MILKYBAR Mould 30(30x9g) IN MILO ACTIGEN-E Stabilo 24x500g IN MUNCH 4X4 12(28x23g) N1 IN MUNCH Chotu 18(55 x 3.00 235.00 1.00 10.00 106.00 5.00 10.00 106.00 65.00 60.00 366.00 60.6g) IN MILKYBAR Eclairs Jar 4(820x3.2g) IN NESCAFE SUNRISE Sac 4(60X10g) PR Cont IN NESTEA Iced Tea Lemon Hang 12(10x100g)IN NESTEA Instant Iced Tea Lemon 24x500g IN NESTLE BAR ONE Ctln 16(24x26g) IN NESTLE BARONE Ctln 24(30x14g) N1 IN NESTLE Eclairs Polybag 30(120x2.00 1.00 5.00 340.00 10.00 393.00 5.00 68.0g IN NESCAFE CLASSIC Sachet 864x3.5g) IN NESCAFE SUNRISE Sac 14((144+8)x2.00 110.00 368.MILKYBAR CHOO Strawberry 30(24x14g) IN MILKYBAR Eclairs Jar 20(160x 3.00 240.00 2.00 10.00 35.6g) IN MUNCH Maha 24(24x11.00 80.00 145.6g) IN NESTLE EVERYDAY DW 32x400g IN 5.00 10.00 55.7g) IN NESCAFE My First Cup Sac 38(48x1.00 2.5g) N2 IN MUNCH Maha Home (75x69g) IN MUNCH Pouch 28x172.5g IN NAN 1 Infant Formula BIB 30x450g IN NAN 2 Follow-Up Formula BIB 30x450g IN NAN 3 FU Formula BIB 30x450g IN NAN PRO 1 INFANT FORMULA BIB 24x400g IN NAN PRO 1 INFANT FORMULA Tin 30x400g IN NAN PRO 2 FU FORMULA BIB 24x400g IN NAN PRO 2 FU FORMULA Tin 30x400g IN NAN PRO 3 FU FORMULA BIB 24x400g IN NAN PRO 3 FU FORMULA BIB 30x450g IN NAN PRO 4 FU FORMULA BIB 24x400g IN NESCAFE CLASSIC Jar 24x25g N1 IN NESCAFE CLASSIC Jar 24x25g N1 IN NESCAFE CLASSIC Jar 24x50g IN NESCAFE CLASSIC Sac 36(17x7.00 25.8g) IN NESCAFE CLASSIC Sachet 432x7.

00 2.00 20.00 114.00 75.00 375.00 118.5g) IN NESTLE Tablet 40(30x12g) IN NESTOGEN 1 Infant Formula BIB 24x475g IN NESTOGEN 1 Infant Formula BIB 24x475g IN NESTOGEN 1 Infant Formula BIB 24x475g IN NESTOGEN 1 Infant Formula Tin 24x450g IN NESTOGEN 1 InfFormula BIB 24x400g IN NESTOGEN 2 FU Inf Formula BIB 24x400g IN NESTOGEN 2 FU Infant FormulaBIB24x475gIN NESTUM STAGE 1 Rice Bag In Box 24x375gIN NESTUM STAGE 1 Rice BIB 24x300g IN NESTUM STAGE 2 Rice Dal BIB 24x375g IN NESTUM STAGE 2 Rice Dal BIB 24x375g IN NESTUM STAGE 2 Rice Dal BIB24x300gIN NESTUM STAGE 3 Rice 3 Frt BIB24x300gIN NESTUM STAGE 3 Rice Fruit BIB 24x375g IN POLO Mini Dispensing Box 36(30X7.3g) IN SUNRISE PREMIUM Sachet 96x50g N1 IN SUNRISE PREMIUM Sachet 96x50g N1 IN 5.00 2.81g) IN POLO Mini Jar 36(50x7.00 149. .00 88.00 Nestle India Bhubaneswar distribution network is as follows: The goods reach from factory to C&F and C&F distributes it to distributors and super stockiest.00 48.00 90.00 10.00 83.00 100. Nestle considers super stockiest and distributors as same.81g) IN PRE NAN DS094-2 12x400g IN SUNRISE PREMIUM Sac (96x50g) PR 10g F IN SUNRISE PREMIUM Sac 360x13g IN SUNRISE PREMIUM Sachet 25(120x1. Re distribution happens after this level to Retailers (Organized trade and General Trade).00 5.00 68.00 124.00 172.00 5.00 1.00 10.00 149.00 105.00 5. Here the super stockiest re distributes it to rural areas. The next hierarchy in the channel is sub-stockiest.00 118.00 124.00 115.00 330.NESTLE EVERYDAY DW 432x12g IN NESTLE EVERYDAY Ghee CEKA 16 x 1L IN NESTLE Milk Chocolate 24(24x18g) IN NESTLE Milk Chocolate 28(12x36g) IN NESTLE MILKYBAR Crispy 24(24x12g) IN NESTLE MILKYBAR Crispy 24(24x13g)IN NESTLE MUNCH ROLLZ 24x24x8g IN NESTLE NESLAC 24x400g IN NESTLE SELECTIONS (38x154.00 5.00 180.00 95.

e. Less Than One Lakh and Greater Than Fifty Thousand and finally to Less Than Fifty Thousand.Factory C&F Distributors & Super-Stockist Sub Stockist Reliance Retail Distribution Center Urban Retailers (OT & GT) Rural Retailers Nestle has one C&F in Cuttack. S. general trade. As found according to the study we found that the C&F in Cuttack is Shree Mahabir Agencies situated in Phulnakhra. All sales are in . Nestle is having 4 distributors in Bhubaneswar i. rural reach and wholesalers.No. 1 2 3 4 Name Ajay Kumar Rahul Kumar Jyoti Prakash Hindustan Agencies Hindustan Agencies Type Distributor (OT & GT) Distributor Superstockist Distributor Area Old Town Chandrasekharpur Rural Bhubaneswar Rasulgarh Counter Management: The counters are classified as three types according to sales as One Lakh Plus. It has three distributors and one super stockist in Bhubaneswar area. They are responsible for re-distribution to organized trade.

INR. Salesmen visit frequency depends even upon the store potential and type. The Bhubaneswar area is divided into areas and the target of salesmen is to cover at least 30 counters per day. Pantaloons Retail The World Metro Bazar If area has more than 30 counters. Modern Trade is classified into 3 tiers as per company guidelines: Tier-I Tier-II Tier-III Beat Planning: The beats are covered by salesmen of distributors in the area. If store has . There are total of 15 salesmen in Bhubaneswar area. The indent is escalated to the distributors. Delhi Zone and Chennai Zone. Based on the counter type the visits are classified. They are provided with palm tops and are supposed to go to every retail store of their territory and take orders. Every salesman follows a six days cycle and again they start the same beat plan. Mumbai Zone. then on the next day they are supposed to cover the remaining stores and the next area. Nestle divided India into 4 zones as Kolkata Zone. Big Bazaar. Bhubaneswar is classified as Tier 1 city. Similarly Orissa comes under West Zone. In addition 2 sales officers are there to follow up and also check the issues in distribution and redistribution.

Haryana. Ponda and Bicholim (Goa).of salesmen required to cover beats: . Consider. Bhubaneswar comes under Kolkata Zone. Chennai and Kolkata help facilitate the sales and marketing activities. Samalkha (Haryana). The order from distributors is collected on emails so as to have a sufficient know that how much stock is to be dispatched to the distributor. VSS Nagar has 40 stores and the target of each salesman is 30 calls per day. 2 salesmen are required to cover 380 stores in 6 days.380/ (30 * 6) =2 So. There are almost 2500 retail outlets where Nestle products are available. In 2012. P. Unit 4. calls. As said earlier Nestle divided India into 4 zones as Kolkata Zone. Nestlé India has presence across India with 8 manufacturing facilities and 4 branch offices. Nanjangud (Karnataka). Unit 4 has 40 stores. new business developments. VSS Nagar. respectively. in 2006. Bhubaneswar is classified as Tier 1 city. The 4 Branch Offices located at Delhi. There are 15 salesmen from distributor’s side and 3 from Nestle. in 1995 and 1997. The 15 salesmen take care of beat covering. Mumbai. Rasulgarh. Nayapalli. Chandrasekharpur. Saheed Nagar. in 1967. So. Delhi Zone and Chennai Zone. in 1993. credit collection.100+40+200+40=380 No. The Nestlé India’s Head Office is located in Gurgaon.g.high sales then they visit two times a week. distribution orders and re-distribution. today. Nestle India set up its 8th manufacturing facility at Tahliwal (Himachal Pradesh). Nestlé India set up its first manufacturing facility at Moga (Punjab) in 1961 followed by its manufacturing facilities at Choladi (Tamil Nadu). Mumbai Zone. Saheed Nagar has 100 stores. Rasulgarh have 200 stores. and Pantnagar (Uttarakhand). Bhubaneswar is divided into four territories. orders. Ashok Nagar. and 3 company salesmen take care of follow ups. How is beat planning done? E. Territory Management: After more than a century-old association with the country. Khandagiri. Market. in 1989. total stores for this distributor: . complaint handlings. Sainik School.D. . If a store is in rural or the sales potential is very low then they visit the store once for ten days.

The four territories are: 1. Similarly on the same basis RSM divides it to ASM. The ATL activities are Newspaper . Sale Promotion/ Trade Promotion: The Bhubaneswar area or any area per se doesn’t have any control or authority on the Nestle ATL activities. The salesperson accordingly based on the prior sales to the distributor accordingly allocates the target. and moreover the salespersons are given stretched targets. The incentives are decided by the Region HR. 3. As accordingly the salesperson are incentivized based upon the targets they achieve. 2.The four territories cover entire Bhubaneswar Urban and Rural. ASM gives the same to the salesperson as per their potential. The quotas are break down into the four zones. Based on the previous performance of each states and the market potential the percentage of targets are divided it to RSM. They are decided by the national office. 4. Chandrasekharpur territory Old Town territory Patrapada territory Rasulgarh territory Quota Management: Quotas are derived from the national target and drilled down to individual area.

Hoardings. They consider the effect of seasonality in their monthly targets. They don’t stretch the targets. In case of festive season they plan the stock prior to 2-3 months so that they can ensure there is availability of stock during festive season and moreover they will see some schemes are associated with the product so as to increase enthusiasm among customers and during offseason they will float the product with extra gram-ages so as to pull the customers. Season Management: The sales estimates are turned to monthly figures as per the seasonal trend analysis forecast. The company provides them budget for promotion activities and they are supposed to spend within for the BTL activities. area wise branding activities etc. The schemes are designed on the given budget. Public Relations.Advertisements. The schemes are also same for every distributor. They can decide which stores can be considered for sampling. 10 gm free or price off like 2 rupees less. Nestle strives for ensuring Availability. In festive season the same is applicable. in store activities. visual merchandise in modern retail. promotional activities like children quiz in schools etc. Some of the BTL activities are sampling of products. TV ads. . Visibility and Accessibility. Radio announcements. The sales forecast approach they follow is seasonal/trend analysis forecast method. For e. Nestles is a very conservative company and it doesn’t come into lime light anytime. The class wise discounts and schemes will be same. If it is an off-season then the pressure will be bit less and so as the targets. The BTL activities are controlled by Bhubaneswar area. But there are schemes under discretion of salesperson to distributors so as to get their quota filled from distributors and in return they will give 2 bags more without any cost to distributor. schemes and everything are not as per the competition but as per their seasonal trend.g. The schemes will be consistent and same within the state. Similarly if it is a peak season then the targets are stretched and also the pressure. The discounts. The effect of competition in the scheme design will be very less. Schemes/ Discount Management: Schemes and discounts are under the discretion of Regional Sales Manager.

Retail: In the modern retail except Reliance retail everybody are procuring the products from distributors whereas Reliance Retail is procuring directly from C&F Issues: 1. . Here. the distributers try to the lure the wholesalers of their competitors to maximise revenue by selling them at prices lower than that of the competitors. Again. Undercutting: It happens when a particular product is in high demand. It takes place generally border areas of different territories. they make profits by the inflated sales volume at lower prices.

7. Competitors activities: Wherever they operate. Off-take: Less-selling products are pushed in the market with the help of the distribution network by introducing schemes and offers to attract the channel partners. 5. so it becomes problem for distributor to have huge lump sum amount at the discretion to the salesperson while stock arrives. it’s basically an oligopolistic market and the price fluctuations are very less and moreover the company’s strategy has always been conservative and it plays very smoothly in the market and it doesn’t hurt the sentiments or business of other companies. 3.2. Subsequently. Distributors Problem: It is because either due to financial problems persisting with the distributor and company operates on cash on counter model. 6. Even a distributor / retailer caught under such circumstances are legitimated to be cancelling the license for distribution. Sometimes. Holding of less stock by distributors and retailers 4. company push for more products and distributor is unable due to risk associated with it. this phenomenon gives rise to undercutting of prices. distributers and wholesalers cater to the channel partners of other distributers in different areas resulting infiltration of territories. Almost 60% times company knows that infiltration happens. . General Trade asks for more schemes which is difficult from the point of view of RSM as company profitability is affected and moreover schemes are designed as per the zone’s budget. Territory Infiltration: Very often. but they doesn’t stress about this issue to the salesperson and they take infiltration serious when it happens at the main market area and when caught serious action are taken.

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