CHANNEL & DISTRIBUTION

SYSTEM OF NESTLE INDIA LTD

Presented By :

Geeti Gourav Pati

Anshuman Nanda
Ashish Trama
Sourav Raj Singh
Ashwini Mahakur
Damrudhar Sahu*
 COMPANY PROFILE:
 A Swiss multinational food and beverage company headquartered
in Vevey ,Switzerland.
 Products include baby food, bottled water, breakfast cereals,
coffee and tea, confectionary, dairy products, ice cream, frozen
food, pet foods, and snacks.
 Beverage Partners Worldwide with The Coca-Cola Company
 Nestlé with Colgate-Palmolive.
 Biggest competitor Cadbury.
 Nestle's Principle:

Nestle is based on the principle of decentralization,

which means each zone is responsible for the
efficient running of its business - including the
recruitment of its staff.
Nestle India:
Milk Products & Beverages Prepared Dishes Chocolates &
Nutrition & Cooking Aids Confectionary
Nestle Milk Nescafe Classic MAGGI 2-MINUTE Nestle Kitkat
Noodles
Nestle Slim Milk Nescafe Sunrise MAGGI Imli Nestle Munch
Premium Pichkoo
Nestle Dahi Nescafe MAGGI Sauces Nestle Bar One
Cappuccino
Nestle Bhuna Jeera Nescafe Sunrise MAGGI Healthy Nestle Milky Bar
Raita Soups
Nestea Nestea Iced Tea MAGGI CUPPA Nestle Polo
MANIA
Nestle Milkmaid MAGGI Vegetable Nestle Eclairs
Atta Noodles
Nestle Everyday MAGGI Pazzta Nestle Alpino
Whitener
 Distribution Channel
Mother
Godown

Carriage & Forward Agency

Distributor
Super Stockist

Re-Distributor
Retailer Whole saler

End Customer Retailer

Criteria to be a channel member:
Capital Investment
 Distributor:40-50 Lakhs

Relevant experience
 3-5 year experience in FMCG sector is preferred
 Distributor should not be dealing in Competitor’s product
 Should handle entire (stock keeping unit )

Infrastructure
 Godowns/Storage space with appropriate refrigeration as per product
needs
 Delivery vehicles, Salesmen, ETC.
Distribution margin:

DISTRBUTOR WHOLESALER RETAILER

5-6% 1.5-2% 7-8%

Distribution point in
Bhubaneswar:

 Shree Ram Enterprises

 Distributor:Mr. Bikram Kumar Jain (Proprietor)
 Products Distributor-Nestle tea, coffee machine, maggi,
sause, coffee, milk made, chocolate
 BADAGADA BRIT COLONY ROAD, BHUBANESWAR ,
KHURDA
 Order Delivery System:

 Take the order in morning and delivery takes

place in evening or next day morning by
delivery boy.
 Appoint 8 delivery boy to deliver
 Having 6 delivery van
Counter Analysis:

Types of Counter
 Super Market
 Small Grocery Store
 Big Grocery Store
 Convenience Store
 Betel shop
 Medicine store
What are Schemes for retailer &
consumer?
 Promotional schemes to consumers & Trade Partners Such as
free packs for Consumers, gifts, bundling, price off etc.
 For retailer they provide some Coupon, Bulk discount ,
Additional Margin , Free packs
How they distribute?
Sales force of distributor is divided into 3
heads
1. Milk Products-A
2. Chocolates-B
3. Other products-C
• All the 3 teams visit the retailers once in a week on
different Days
• Sales executive of the company visit once in week
to each distributor to train sales man.
• Idea is to keep an eye in the distribution by
wholesaler and in certain specific cases to push
extra stock in the market.
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

All 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 (company policy followed by the distributors).
Stock Policy:
 As per the company regulations the distributor is supposed to
maintain a stock of 3 weeks which monetary value is equals to
Rs. 30 lakhs for the distributor.

 A distributor place an order before 8 days & they received conformation

after 2-3 days & in that period they can negotiate.

 Distributor come under slow moving SKU’s clubs & retailer are in fast
moving SKU’s

 Company DUMPS significantly on the distributors, the distributor

has to mange the supply by the company
Lead period:
 Lead periods in providing stocks to the distributors, differs
from the SKU and quantity ordered (3-5 days)
 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 reload 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

Storage policy:
 Distributor maintains Cold Storages and Deep Freezers for the
storage of the products.
 Distributor has to bear all expenses pertaining to Infrastructure
requirements.

Sales Force:
 The remuneration and all other expenses for sales force are
carried by the distributor.
How they give training to salesman?

Training programs for sales man of distributor:

 Nestle Quality System
 Good Warehousing Practices (GWP)
 Good Distribution Practices

Major aspects of the training program are:

1. Stocking as per norms
2. Good Warehousing practice
3. Accounting
4. Handling of Bad goods
5. Temperature control for chocolates and dairy products
Thank You