ABOUT NESTLE INDIA LTD:

Nestle India Lid is one of leading Fast Moving Consumer Goods (FMCG) Company. It is has
been operating in India since past seventy-five years. The products offered by Nestle are
usually premium in price, and the quality of the products are at par with the competitive
market. The product profile of Nestle India consists of categories like noodles, Coffees,
Sauces, Infant Formula, Infant Cereals, Chocolates. Dairy Whitener, Condensed milk, etc:
It is the market leader in almost all the segments. For example, "Nestle Maggi" has 93%
market share in noodle segment and "Nestle Cerelac has 94% market share in Infant cereals
category.
This was made possible because of the company's point of differentiation in operational
effectiveness on the competitors. They are distinct in the area of production, demand
planning, supply chain management and distribution and operational cost.
To understand the success of Nestle, understanding its distribution channel and its effective
sales force will play an important role.

EMPLOYEE DETAILS
DESIGNATION- SHOPPER ACTIVATION AND SAMPLING OFFICER
ORGANISATION - NESTLE INDIA

EMPLOYEE JOB ROLE-

 Looking for different avenues for activations offline & online.
 Coordination with different stakeholders i.e.- sales team.

Company Policy and Guidelines

 The company has created two kinds of distributors, namely Trade and Chocolate. The
former deals with the Maggie range, Nestle dahi etc. Chocolate deals with all
confectionery items like chocolates, sweets etc.

 A representative of each distributor goes to the various outlets, once or twice a week
(depending upon the area), takes the order and then either delivers the goods there and
then, or on the same day.
  It has been realized that a retailer has a limited pocket for a days purchase. If one sales
representative goes for an order with 50 SKU’s the retailer will only buy what his
pocket allows, for a one-time purchase. Whereas, if two different sales people go,
representing different distributors there is a possibility both will get an order and the
company will witness better sales.

 The company has also taken an initiative for deeper reach and penetration into the
market with its operation “STING”. Whereby the sales representatives on the
company go on bicycles and try to fulfill the order of small ignored and unserved
outlets. For example, the panwallas, the kinara stores etc.

HOW TERRITORIES ARE ALLOCATED-

Different distributors are aligned for different locations. Those distributors are called third-
party distributors.
Product goes from Factory to distribution centre/warehouse which is currently in hassangarh,
Haryana.
It depends upon distributor’s turnover that is how much he sells in a month.
And on that basis an invoice plan is created and they receive stocks. Stocks come on weekly
basis. And there are two vehicles planned for one week.
For example – In Delhi-NCR
In Dwarka, the biggest distributor for nestle is Garg agencies. Then that agency distributes it
to the retailers.

Criteria are:
1) Capital Investment-This is dependent not only on the present required turnovers but
also on the estimated future capital investments that will be required by the distributor (based
on company’s growth plans in the area). Amounts required vary from area to area and
markets to markets.

2)Relevant experience- It is imperative that the distributor has had some prior experience
as a channel member in the FMCG sector so that no training is required to be imparted to him
on aspects of the business. The distributor should not be dealing in competitor’s products and
should be able to function as a dedicated channel for Nestle. For example, while deciding on
a distributor for chocolates, an obvious preference would be an existing distributor for other
products of Nestle This is because he will pay attention to the entire range of the chocolates
and not focus on any particular SKU only.

3) Infrastructure-Appropriate infrastructure (depending on the market served and overall

volumes) Should be there-
a) Warehouses/ storage space. For chocolates, airconditioned warehouse space (with wooden
padding will be required).
b) Delivery vehicles
c) Salesmen

HOW PERFORMANCE IS EVALUATED?

TARGET BASED- The distributors should complete their targets. Suppose Garg agencies
have a monthly target of 10 crore. That target is further divided into different target based on
products. For example – 70 gm maggie i.e.rs 12 maggie, a plan created how much maggie
they have to sell for a particular month. This is calculated on the basis of previous data.
Once a distributor is appointed the company generally does not take away business from him,
except when the underperformance has been observed over long periods.
While evaluating his performance, his targets performance is studied relative to that of other
distributors in the nearby area (because growth patterns may by regions).

RECCOMENDATIONS-
Currently nestle salesperson has to go the retailers physically to take orders and then the
retailers tell them how much order they want, then the salesperson punchs in the order in a
mobile application and the system gets updated automatically.
And due to COVID right now, salesman can’t really go out much, nestle could make an app
from which the retailer can send the order by the app itself without the salesperson going to
them physically. This would be really helpful during lockdown times. They can create an
online system.
Training of Sales force of Distributors should be taken over by Nestle to ensure optimal
performance.