Sales, Distribution

and Retail
Management
•Submitted By: Group 3
•Aashima Bajaj (291001)
•Abhinav Singh (291005)
•Akansha Rungta (291009)
•Arihant Sinha (291012)
•Arshpreet Singh Bagga (291013)
•Arushi Jain (291014)
Introduction Nestle was formed in the 1860s
and 1870s by combining two
different companies founded by
Nestle has over 2000 brands
with a wide variety of products
Henri Nestle and chocolate
inventor Daniel Peter

Nestlé's products include baby

food, medical food, bottled
Maggi Noodles, Nescafe and
water, breakfast cereals, coffee
Milkmaid are some popular
and tea, confectionery, dairy
Nestle products
products, ice cream, frozen
food, pet foods, and snacks.

Many famous chocolates like

KitKat , BarOne and Munch are
sold by Nestle
 Nestle
Distribution
Channel
Effectiveness of Channel

An efficient supply chain is crucial for a FMCG giant. Thus, Channel management and distribution constitute
an essential part of the market plan of any organization.

• The distribution for Nestle India uses, a mix of channels which makes it more reliable and intensive, the
inclusion of retailers, wholesalers, supermarkets etc. helps the company in increasing the market
share.
• In terms of variety, the distribution has a rich mix, as the products are available in a wide variety of
locations, the distribution is also aided by general stores, canteens, online retail etc.
• In terms of Novelty, the brand uses different things like the display sections in retail spaces, which give
a better view of the products, also the utilization of  online sales through social media is new and
effective.
 Capital Investment

• Varying amount area and market wise

• Present and Future Investment done by Distributors

Experience

Selection • Relevance in FMCG sector

Criteria of • No competitors should be in the deal of Distributor

• Dedicated channel for Nestle

Distributors Infrastructure

• Storage Space (Trade and Chocolate based)

• Salesmen
• Transportation Mechanism

Companies Discretion
 1. “Proud to be Nestle – super awards for super

Initiatives achievers”
        Open to 
for • Area Sales Managers 
• Sales Officers 
Motivating • Cash Distributors 

Channel • Distributor Salesman 

• Merchandisers 
Partners
       Qualifying Criteria 
• 100% achievement of internal target for 3rd
quarter (Invoicing) 
• Min. 10% RDBN turnover growth over last year
2nd quarter
2. Ranking
• All ASM’s who fulfil predefined criteria are ranked based on an internal company Index
(INDEX = %RD turnover growth * absolute value increase)
• Top ASM’s (as fixed by the branch) win prizes and their whole team wins a team
trophy and certificates

3. Special Schemes
• Spread over 2-3 months, these schemes encourage specific target achievements.
Targets are given as indexed growth rates based on weights. The prizes in the schemes
can be monetary- for example additional 2% margin on turnover or non-monetary –
for example, free T.V. sets on achievement of targets. It is attempted to keep in mind
the monetary benefit to distributor in case he sells the gift given in kind. 
• Secondary Schemes: Promotional schemes for Trade Partners such as free packs for
consumers, gifts, bundling, price off, coupons, bulk discount, additional margins, free
packs etc.
 Dealership in Practice (DIP) Training
Training programs for C&F agents which includes
modules on: 
Special Steps • Nestle Quality System 
Undertaken • Good Warehousing Practices (GWP) 

to Enhance • Good Distribution Practices 

Major aspects of the training program are; 
Distribution • Stacking as per norms 
• Good Warehousing practices 
• Accounting 
• Handling of Bad goods 
• Temperature control for chocolates and dairy
products

Issues faced by Distributors
& Recommendations
Distributor: Kumar Brothers 
Sole distributor of Nestle for District
Ghaziabad, Uttar Pradesh
ISSUES
• Battle With Wholesalers
• Slow moving SKU's
• Dedicated Channel
• Differential Margin
RECOMMENDATIONS
• Schemes like QPS Margins
• Non-monetary Incentives and Rewarding
Schemes
• Refine sales tactics for slow moving SKU's
• Higher margins and Longer credit terms
Sales Force Structure
• Two new divisions – channel and category sales development
and national key accounts management organization
• The second internal reorganization exercise after it had
realigned internal company structures
• Supply chain configurations is one of Nestle's weaknesses
• Creation of a nutritional compass to help consumers make
informed choices through an in-store initiative titled Nestle
Nutriworld
• To initiate any market growth strategy was a challenge
because of the increasing turnover of the distributors'
salesmen
 Sales Force Division and Functions
National Regional
Zonal Sales Area Sales Territory- Sales
Sales Sales Distributors
Manager Managers in-charge Associates
Manager Manager

1. Focus more on direct distribution in order to reduce the time of overall Sales process
2. Take care of the forward and backward flow of activity in respect of product and information​
3. Visit retail stores​
4. Analyse local demands​
5. Suggest required tweaks in product placements based on the company’s in-house analytics​
6. Take orders on their cell phones through an app​
7. After this, the salespeople reach out to nearest distributor and ensure the delivery of products to
the retailer. ​
Some special steps undertaken to manage salesforce

The company does not

have a policy to train The remuneration and
the staff of all other expenses are
the distributor, the borne by the
distributor trains his distributor.
own sales force.
Issues and Problems
• The major problem that the wholesaler must
contend with is the problem of undercutting.
• Ghaziabad is one of the closest places to the
main distribution market Delhi and that results
in retailers buying from Delhi at higher margins
which wholesalers are incapable of providing.
• The selection of Distributors is a very crucial
decision for the company. A lot of time and
effort is spent to train them. Also, they are not
frequently changed.
• The company dumps huge stocks of slow
moving SKUs to achieve targets, but in the long
run, it results into dissatisfaction of distributor
and losses for the company.
Recommendations
• Measures should be taken to stop the
undercutting, even if company is using the
undercutting created to push sales, it should
be minimized, enough to not hurt the
distributors.
• Good relations should be maintained with
distributors, occasionally offering
better margins, can make them feel valued
while also give a push to sales.
• The company should
not use excessive dumping of slow-moving
SKUs, as this will not only create
dissatisfaction for distributors, but also create
a roadblock, for sales in near future.
THANK YOU!