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.