Essay about Nestle Distribution Channel

2351 WordsDec 18, 201010 Pages
Table of Contents Sr. No. | Title | Page Number | 1 | Introduction | 2 | 2 | Distribution Channels Structure | 2 | 3 | Terms of Appointment and Incentives for Distribution Channels | 3 | 4 | Reporting, Control and evaluation system for their sales force | 5 | 7 | Recommendations and Conclusion | 5 | 8 | References & Bibliography | 6 | Introduction: Success toady in the competitive world has become very difficult. This is because it does not solely depend on basic factors but on all the factors related to the organisation. Earlier it was possible for an organisation to dominate in the market but today due to lot of different methods, channels and modern tools for marketing and functioning of the organisation, the…show more content…
The transportation is appointed by Nestle and is dedicated only for Nestle. York is a huge hub of confectionery and has heavy storage capacity to cater the market needs. Kit Kat being highly popular in the market there is continuous distribution running round the clock for Nestle. The demand in the market though fluctuating is handsome and so Nestle deals with it very efficiently. This generates high profit for Nestle as compared to other products. Nestle has their own regional distribution depots which are so placed that they cover the whole of UK. Kit Kat is transported from the national distribution centre at York to the regional depots as and when the requirement is put on. These regional depots then supply pallets of Kit Kat to the whole sellers in the market. In UK Asda, Tesco, Sainsbury’s, Waitrose, Morrisons, etc. are the major wholesalers those purchase huge stock from Nestle. (www.nestle.com, accessed 08 August 2010) All this is supplied from the regional depots. These whole sellers are direct retailers as well. So Kit Kat reaches the consumers from them as well as from small off license and small retailer shops. Terms of Appointment and Incentives for Distribution Channels: The distribution channels and its elements are all a part of the distribution strategy for any product. In order for the smooth functioning of the channel there are some terms and conditions between the company and the distributor. This is an agreement between the two over

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