ASSIGNMENT ON NESTLE

[Area – Bhubaneswar]

Find out the Distribution system, Communication Channel and

Medium of services used for nestle product?

[Origin of Nestle Company]

Nestle is the largest food and nutrition company in the world. Founded and head quartered in
vevey. Switzerland Nestle originated in1905 merged of the Anglo-Swiss Milk Company,
established in 1867 by brothers George Page and Charles Page, and Farine Lactee Henri
Nestle, founded in 1866 by Henri Nestle. The company grew significantly during the First World
War and again following the Second World War, eventually expanding its offerings beyond its
early condensed milk and infant formula products. Today, the company operates in 86 countries
around the world, and employs over 280,000 people.

[Nestle Products available in Bhubaneswar]

Milk products and nutrition

 Nestle everyday dairy whitener.

 Nestle everyday ghee.
 Nestle bhuna jeera raita.
 Nestle real fruit yog hurts.
 Nestle cream vanilla.
 Nestle milk maid.
 Nestle Neslac.

Baby Food

 Nestle Nan.
 Nestle Lactogen-Liquid.
 Nestle cerelac.
 Nestle Nestum
Breverages

 Nescafe Classic.
 Nescafe Sunrise Premium.
 Nescafe Cappuccino.
 Nestea icea tea with green tea.
 Nestea iced tea lemon.
 Nescafe Chocomocha.

Prepared dishes and cooking aids

 Maggi 2 minutes noodles.

 Maggi vegetable ata noodles.
 Maggi cuppa mania.
 Maggi healthy soups.
 Maggi masala-ae-magic.
 Maggie sauces.
 Maggi pichkoo.
 Maggi magic cubes
 Maggi vegetable multigrave noodles.
 Maggi bhuna masala.
 Maggi coconut milk powder.
 Maggi pazzta.
 Maggi imli pichkoo.

Chocolate and confectionery

 Nestle Kit Kat.

 Munch.
 Munch Pop Chocolate.
 Milky bar.
 Bar-one.
 Polo.
 Éclairs
 Milky bar éclairs.
 Dark chocolate.
[Distribution System]
As per our survey we found out this following information:-

Big malls such as Pantaloon (bhubaneswar) brings there product from the depot which is
situated in kalpana bbsr , there is only one intermediary present in the distribution of products.
The malls get there product form the distributor the distribution channel can be better known
from the below diagram.

Manufacturer Distributor Malls/ Retailers.

In this distribution system the transportation and the delivery of the products are been incurred
by the company itself.

Where as in case of small retails outlets the distribution of products in done by the distributors,

In Bhubaneswar there are three nestle distributor present those are in Chandrasekharpur ,
OTDC back and Kalasrimukha among this three the most reputed nestle distributor is
KALASRIMUKHA agencies kalpana square 52/A.

KALASRINUKHA covers a total of 738 outlets. The major areas of sales out let are “Sahid
nagar, Rasulgarh Palasoni, Asoka Market, Rajmahal, K.Stadium, Shasti nagar, Nayapali,
Unit-4, M.C Satya Nagar, Acharya Vihar.”

The KALASRIMUKHA agencies have hired a number of salesmen whose job is to deliver
products to different sales outlets/ retailers. The KALASRIMUKHA agencies uses Tata ace
vehicle for delivery of product. The Depo from which Kalasrimukha agencies brings product are
located in Cuttack and Gopalpur [Mahavir communication].

According to KALASRIMUKHA agencies the Nestle products that are most demanded by the
retailers are:-

 Nestle Kit-Kat.
 Nestle Munch.
 Nestle Milky bar.
 Nestle Bar-one.
 Maggie 2 minute noodle.
 Nestle cerelac.
 Nestle sauce.
 Nestle classic.
[Communication Channel]
The Nestle Company uses various media for communication. These Media can be classified into

 Indoor Advertisement Media.

 Outdoor Advertising Media.

[Indoor Advertising Media]

The Nestle Company uses various Indoor advertisement media as a communication channel. In
Bhubaneswar the Indoor media used by the Nestle company are:-

1. Press Media – The Nestle Company uses this press media as communication channel to
make the Bhubaneswar or Orissa people know about their products the company
advertise in regional or local news paper such as samaj sambad dharitri etc.
2. Radio Media- As now days due to emerge of FM there is rapid increase in the listeners
in Bhubaneswar there for the Nestle company uses this radio as a medium of
communication to the people. Popular Fm Channel that the Nestle Company advertises in
Bhubaneswar is Big 92.7 fm and Radio chocolate.
3. Television Media- This television Media is the most effective Medium of
communication, The Nestle company has made a numerous advertisement for its
different products, But to communicate the people of Bhubaneswar the Nestle company
uses different strategy these Nestle advertisement are been dubbed in regional language
and are shown in regional channel so that the viewer could get the proper message of the
advertisement. The channel such as OTV, DD oriya etc shows such advertisement.

[Outdoor Advertising Media]

The Nestle Company also uses various outdoor advertising media as a communication channel.
In Bhubaneswar the Outdoor media used by the Nestle company are:-

1. Hoardings - The Nestle Company for advertising of its product uses hoarding to let the
people know about their products, there is lot of Nestle hoardings in Bhubaneswar.
2. Painted Display- Painted Display are the painted bulletins and wall paintings, The Nestle
company uses this method for communicating the people, In Bhubaneswar there can be
seen a lot of Nestle products advertised in painted display method.
3. Electrical Sign- In Bhubaneswar the Nestle company also uses this electrical sign
method as a communication channel, This electrical sign are made of steel beam metal
sheets, plastic using bright and flash lights, neon signs and color.
KALASRIMUKHA AGENCIES

Name of the owner-Mr.Niranjan Sahoo

Number of sales outlets covered-738 outlets

Depot-Gopalpur[Mahavir communication] and Cuttack

Areas of sales outlet-Saheed Nagar,Rasulgarh,Palasuni,Ashoka market,Rajmahal,Kalinga

stadium,Shastri Nagar,Nayapali,Unit iv ,Mastercanteen,Satyanagar, Acharyavihar.

Means of communication-Tata Ace

Number of outlets visited daily-25 outlets[coverage plan-not less than 90%]

Number of salesmen-5

Delivery unit-accoutant,driver,labourer,

Shifts of salesmen-5 to 7 hours a day.

SERVICES USED BY KALASRIMUKHA AGENCIES

Bank transactions-The banking transactions made by kalasrimukha agencies are done in State
Bank Of India

Money transactions-they money transactions are done by the process of RTGS[Real Time Gross
Settlement] and NEFT[National Electronic Fund Transfer]

Monthly Sales-60 Lakhs

Any Target-It depends on the delivery service.

Discount Structure-If the target is achieved then the company gives a certain percentage of
discount in the payment of next purchase.

Credit Facility-The credit is provided in terms of post dated cheque.