PROJECT ON

MARKETING MANAGEMENT 2

SAINTGITS INSTITUTE OF MANAGEMENT

KOTTAYAM

PROJECT

Submitted by:
Sachin Thomas George
Sudhin.k

Submitted to:
Ms. shino abraham
Asst. Professor, SIM

Submitted on:
27-03-2020
 PROJECT CONCEPT
A distribution channel means the chain of business or
intermediaries through which a good or service passes until
reaches the end consumer” Success of each company lies on
various aspects, among these the distribution channel is the
most important one. Distribution channel is a chain of
intermediaries; each passing the product down the chain to
the next organization, before it finally reaches the consumer
or end-user. This process is known as the ‘distribution chain’
or the channel’. Each of the elements in these chains will have
their own specific needs, which the producer should consider,
along with those of the all-important end-user or consumer.
Each company had their own distribution channel for their
product marketing, it differ from other companies. Every
company wants to know effectiveness of distribution channel
of its product. If the distribution channel is not effective, the
company cannot perform very well in the market. For better
sale of its product in the market, the company must formulate
different strategies for the distribution channel. A company
can coordinate and formulate different activities in the
distribution channel.this project shold focus on the NESTLE
company distribution channels and the promotion decsions of
nestle company this project focus on the documentation of
the proect and industry introduction and company marketing
stratagies polices in marketing distribution of that company
nestle is a fast moving consumer goods product
 DOCUMENTATION OF PROJECT
Distribution includes all activities undertaken by the
producer, alone or in cooperation, since the end of the
final finished products or services until they are in
possession of consumers. The distribution consists of the
following major components: Distribution channels or
marketing channels, which together form a distribution
network; Logistics physical distribution. In order to
effective achieve, distribution of goods requires an
amount of activities and operational processes related to
transit of goods from producer to consumer, the best
conditions, using existing distribution channels and
logistics system. One of the essential functions of a
distribution is performing acts of sale, through which, with
the actual movement of goods, their change of ownership
takes place, that the successive transfer of ownership
from producer to consumer. This is an itinerary in the
economic cycle of goods, called the distribution channel.
Distribution is vital to the success of FMCG companies.
Ensuring that they deliver to customers their brands in the
correct amount, the place and right time, in good
condition and at a competitive price, is still a challenge for
the trade marketing and distribution companies
department. Also, the distribution is important for
business partners, including independent distributors, the
relationship with them based on the principle of mutual
profit. FMCG companies have three objectives in terms
of distribution: Brands’ availability Brands disponibility
Effective distribution of price viewpoint - making the
availability and quality of products
INDUSTRY INTRODUCTION
The Fast Moving Consumer Goods (FMCG) industry
primarily deals with the production, distribution and
marketing of consumer packaged goods, i.e. those
categories of products that are consumed at regular
intervals. Examples include food & beverage, personal
care, pharmaceuticals, plastic goods, paper & stationery
and household products etc. The industry is vast and
offers a wide range of job opportunities in functions such
as sales, supply chain, finance, marketing, operations,
purchasing, human resources, product development and
general management.
In India, the FMCG industry is the fourth largest sector
with a total (organized) market size of over US$15 billion
in 2007, as per ASSOCHAM, and can be classified under
the premium and popular segments. The premium
segment (25%) caters mostly to the higher/upper middle
income consumers while the price sensitive popular or
mass segment (75%) consists of consumers belonging
mainly to the semi-urban or rural areas who are not, and
cannot afford to be, brand conscious. The market growth
over the past 5 years has been phenomenal, primarily
due to consumers’ growing disposable income which is
directly linked to an increased demand for FMCG goods
and services. Indeed, it is widely acknowledged that the
large young population in the rural and semi-urban
regions is driving demand growth, with the continuous
rise in their disposable income, life style, food habits etc.
On the supply side, the wide availability of raw materials,
vast agricultural produce, low cost of labour and
increased
COMPANY INTRODUCTION, (NESTLE)
Nestles start date back to 1866, when two split Swiss
enterprise were found that would later form the core of
Nestle. In the subsequent decades, the two challenging
enterprise forcefully delayed their businesses throughout
Europe and the United States. Nestle 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 Lactee Henri Nestle, founded
in 1866 by Henri Nestle. The company grows significantly
during the First World War and again following the
Second World War, expanding its contributions outside
its early reduced milk and child 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. Nestle’s products include baby
food, bottled water, breakfast cereals, coffee,
confectionery, dairy products, ice cream, pet foods and
snacks. 29 of Nestle’s brands have annual sales of over
1 billion Swiss francs (about $ 1.1 billion), including
Nespresso, Nescafe, KitKat, Smarties, Nesquik, Stouffer
’s, Vittel, and Maggi. Nestle has around 450 factories,
operates in 86 countries, and employs around 328,000
people. It is one of the main shareholders of LOreal, the
world’s largest cosmetics company.
Nestle has a primary listing on the SIX Swiss
Exchange and is a element of the Swiss Market Index. It
has a secondary listing on Euronext. In 2011, Nestle was
listed No. 1 in the Fortune Global 500 as the world’s most
gainful business with a market capitalization of $ 200
billion, Nestle ranked No. 13 in the FT Global 2011.
DISTRIBUTION CHANNEL AND PROMOTIONEL
ACTIVITY
Nestle India: Milk Products & Nutrition Beverages
Prepared Dishes & Cooking Aids Chocolates &
Confectionary Nestle Milk Nescafe Classic MAGGI 2-
MINUTE Noodles Nestle Kitkat Nestle Slim Milk Nescafe
Sunrise Premium MAGGI Imli Pichkoo Nestle Munch
Nestle Dahi Nescafe Cappuccino MAGGI Sauces Nestle
Bar One Nestle Bhuna Jeera Raita Nescafe Sunrise
MAGGI Healthy Soups Nestle Milky Bar Nestea Iced Tea
MAGGI CUPPA MANIA Nestle Polo Nestle Milkmaid
MAGGI Vegetable Atta Noodles Nestle Eclairs Nestle
Everyday Whitener MAGGI Pazzta Nestle Alpino
Transport and distribution are defined as the movement
of goods (raw and finished), people and animals from one
place to another using mode of transport such as rail,
road, air, water, pipeline, cable, and space.
Transportation and distribution involve the management
of people, infrastructure, operations/ logistics and
vehicles (Nestle Company, 2016). Logistics, as a
superset of transportation, is defined as the art and
science of obtaining raw materials, production and
distribution of products and materials at the right time,
using proper methods, and in proper qualities and
quantities. With the industrial context, transport and
distribution refer to delivery of materials and products to
businesses, consumers, and government officers.
Transporting and distribution entail coordination of
trained workers, distribution management, and
warehousing. This paper will examine how effective is
transportation and distribution management is in fulfilling
the company's goals: A case of Nestle Corporation Nestle
is a globally known Nutrition, Health, and Wellness
company. Nestle Company established in 1866 in
Switzerland has expanded into global markets such as
the United States, Canada, and the United Kingdom. The
company's mission is as simple as, "Good Food, Good
Life"; Nestle offers its consumers with nutritious choices,
best tastes in a variety of beverage and food categories
(Nestle Company, 2016). Some of the well-known brands
by Nestle are chocolate, confectionery, coffee,
beverages, frozen desserts, ice creams, meals, and
Nestle Purina PetCare and Nestle Waters. In 2015,
Nestlé's annual profit was 9.066 billion which showed a
decline from 14.456 was in 2014 (Nestle Company,
2016). In 2013, Nestle was voted among the top ten most
recognized and admired corporations within the cultural
category. The company has always strived to improve the
lives of its customer by providing health and nutritious
solutions during the entire period of their lives. Nestle
helps customers by caring for them and their families. The
company's goal is to support people in leading healthier
lives. The company's core values have been formed on
respect: Respect for the customers, for the future
generation, for the environment and the culture and
global diversity. However, Nestle faces fierce competition
from Danone, Cadbury, Mondelez International, Inc., and
Mars, The company's transport and distribution approach
are based on environmental sustainability. The approach
focuses on:
 1. Optimization of the distributions routes and networks
planning in all operations;
2. Exploring opportunities for improving its
transportation options by switching to other transport
modes and identifying less harmful fuels; and
3. Expanding the drivers' training to handle both
environmental and safety issues efficiently (Ballou,
2013).
Moreover, as one way of optimizing the company's
performance, the transport and logistic manager focuses
on the reduction of empty transportation journeys,
increase vehicle utilization, and reviewing the strategic
distribution network from time to time. For its fleet
operations, optimizing the route planning is an ongoing
process (McKinnon, 2015). The company is moving from
the traditional mode of transports like road transport to
short-sea freight or rail. Likewise switching fossil fuels to
trucks using natural gasses with the focus on reducing
the environmental effect resulting from transportation. In
the warehouses, concentrating on reducing its energy
consumption as well as switching to alternative
renewable energy. Lastly, the company is investing in
new transportation and distribution technologies that offer
innovativeness in efficiency and environmental
improvements (Bookbinder, 2013).
Through the collaboration with its customers and
suppliers, the company has identified opportunities on
how to co-operate and avoid empty trucks on transit after
goods and products have been delivered (Emmett, 2012).
For example, one truck has been assigned to collect raw
materials from Craigavon and Dungannon in North
Ireland and deliver them to the factory located in Wisbech
in Cambridgeshire. The same vehicle collects finished
products from the factory and takes them to the
distribution in Warwickshire (Hams Hall). Conversely,
before leaving the distribution, the vehicle is loaded with
products to be delivered to homes and offices. The entire
process is used to ensure that the journeys are efficient,
and the capacity of the trucks have been maximized

Nestle concentrates on their consumers and tries to

understand their physical and emotional desires. They
have a wide range of products and consumed by all age
groups. Nestle try to understand the economic,
geographic and social factors which affects the diets of
the consumers and try to concentrate on the nutritional
and health value of the products. Example Nestle have
used their research and technological expertise to their
ice cream products to lower the calories and fats and.
They have also introduced sugar free products in their
confectioneries like Polo and lower sugar products like Kit
Kat Light. Nestle also have concentrated on the lower-
income consumers and made their products available at
affordable prices while providing a diet compensating the
local dietary deficiencies and including relevant nutrition.
Nestle also try to understand the motivations, routines,
decision making and purchasing habits of the customers
by spending time with the people. Example: Nestle
employees spent three days living with people in suburbs
of Lima in PERU to understand their everyday aspects of
their life, and based on their understanding they sold
relevant products in the local markets and stalls Thus it’s
clear that Nestle is a Market Oriented company since they
try to understand the customer or market needs and
produce products accordingly to achieve the
organizations goals. And they believe that people are the
main strength of the company. According to Narver and
Slater (1990) marketing orientation comprises of three
main components: Customer, Competitor, and inter-
functional coordination. Customer orientation includes all
the aspects of buyers in the designated area and
competitor orientation includes the information about the
competitors in the targeted area whereas inter-functional
coordination involves the delivery of superior value for the
target customers by the efficient use of available
resources. Distribution coverage may vary based on the
features of the product, the market and the target
customers. The company may opt for intensive
distribution, selective distribution or exclusive distribution.
In the case of intensive distribution, the company tries to
sell the product through the maximum number of retailers
and wholesalers. In selective distribution, the company
may limit the number of wholesalers and retailers which
are the best in that market while in the case of exclusive
distribution; the manufacturing company may provide
exclusive rights for distributing the product to only one or
a few distributors.
SUGGESTION

1. Select the right target audience

2. Set measurable goals
3. Limit availability
4. Promote widely but wisely
5. Offer real value
6. Review your results