Question

On the basis of nestle company answer the following questions.
Distribution channel application criteria:
1 strategic role of intermediaries.
2Types of distribution channel function
3 channel strategy decisions
4 channel design and competetive advantage

Answer 1

Ans- Nestle is a swiss multinational food and drink processing company. It's headquarters is situated in vaud, Switzerland. It is the world's largest food company in the world. It is established in 1866 (154 years ago) who's founder is Henri Nestle. They sell various products like baby food,coffee, dairy products, breakfast cereals etc.

1-Nestle has a good brand name,low cost and a good financial position. It has an employee strength of over 328000 people around the world. The emergence of strong intermediaries is the result that nestle handles the international market. Its intermediary system is very strong and diverse which make nestle a reputed company in all over the world. The two strategy that have been used are umbrella branding and seperate brand names. With the emergence of new intermediaries such as mass merchandisers and warehouse clubs have boosted the sales of nestle company.

2- The distribution channel system of nestle is that they Transport their products at major regional sales office which are situated at different cities (especially in india),which in turn sell the products to the small retailers and finally reach the product to the ultimate consumer. The company performs an indirect physical distribution system in which they first dell their products to an intermediary and intermediaries sells to wholesalers and wholesalers to small retailers. This chain is generally used by the companies(big companies) to make out a good reach in the international market.

3. Nestle provide a portfolio of products that evolve with consumer needs,so that they can know about consumer preferences. By identifying the consumer needs,they capture them and work according to the needs.

4-Nestle distribution channel design is something like it starts from mother godwon then goes to carriage and forwarding agent then it goes to distributer and super-stockist then to wholesaler and finally to retailer. Fro. Super stockist it goes to re-distributer and then to retailer and finally to ultimate consumer.

According to nestle its competive advantage is that they have unmatched research and development capabilities. They have strong geographic presence.