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Mabroor Ahmed

Marketing Channel

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Overview
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Marketing Channel Marketing Channel Strategy

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Case study of Nestle Introduction History Advertisment Strategy CSR Distribution Channel Rural Development 3/10/13

The Most Basic Questions in the Design of Marketing Channels

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When Do Customers Buy? Where Do Customers Buy? How Do Customers Buy? Who Buys? Who makes the actual purchase? Who uses the product?
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Marketing Channel Strategy? (Place); the fourth P in the . Marketing Mix has been largely neglected But this is changing....or business user.
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Marketing Channel Strategy is Growing in Importance. Why?

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Five Reasons

Search for Sustainable Competitive Advantage Growing Power of Retailers in Marketing Channels

The Need to Reduce Distribution Costs The Increased Role and Power of Technology
3/10/13 The New

Stress on Growth

CASE STUDY
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INTRODUCTION
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It was founded in 1867 by HENRI NESTLE. Was listed no.1 in fortune global 500 as the Worlds most profitable corporation.

Ranked no.13 in FT global 2011 with market capitalization of $200 million.

Has 449 factories in 86 countries and employs more than 3,28,000 people.

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Mainly deals in chocolates, milk products, maggi, soup,

Nestl :Advertising Strategy

Uses the same symbols worldwide. think globally and act locally
Product formulation vary to
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cultural differences.

Nestl :Advertising Strategy

Reduce prices and introduce smaller packages for products to make them affordable has also implemented many promotional schemes.

The company has also promoted

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there products like giving free

CORPORATE SOCIAL RESPONSIBILITY

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Nestl :advertisement

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Social Responsibility

Good Food Good Life

"Nestl is the largest food company in the world. But, more 3/10/13 important to them is to be the

Social Responsibility

In 2006, Nestl became the first . organisation to adopt creating share value approach Nestl has focused its Creating Shared Value efforts and investments on three areas nutrition,waterandrural development as these are core to our 3/10/13

Social Responsibility
As for social responsibility, the company says its education programs have reached 9 million people. And by changing the recipes of its foods, it has eliminated 75,000 tons of trans fat from its products, along with 15,000 tons of salt and 638,000 tons of sugars.
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Corporate Social Responsibility (CSR)

SOCIETY:
Nestle has constantly innovating and changing their products to fulfill their customers need. Nestle plans to double number of nutrition and physical activity education around the world

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What Is Distribution Channel?

A set of interdependent . organizations involved in the process of making a product or service available for use or consumption by the consumer or business user.
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Distribution Channel Functions

Inf or m ati on

C o m m un ic ati on Fi na nc in g

N eg oti ati on

Or de ri ng

Tr an sf er
.

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Pa y m en ts

Ph ysi cal Dis tri but

Ri sk Ta ki ng

The Nestle Distribution Channel

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Distribution
Distribution system of Nestl is one of major source of competitive edge over its existingrivals. Nestl has its
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owndistribution networks equipped with all necessary transportation facilities. They transport their products at major regional sales offices, which are situated at differentcities. These sales offices (distribution centres)have their ownvanswith sales people whosell and transport goods to thesmall retailers.
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The Need to Reduce Distribution Costs

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How a Distributor Reduces the Number of Channel Transactions

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1 2 3 4 5 6 7 8 9
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A. Number of contacts without a distributor MxC=3X3=9

= Manufacturer

= Customer

RURAL DEVELOPMENT

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Rural Development

INDIA:
Clean Drinking Water Project And Water Education Programme For Children:
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Rural Development
MALAYSIA:

Contract Chilli Farming Project:

Nestl provides the rural farmers with technical Support in the field of Chilli processing. 80% of the chillies proud farmer A produced,are purchased by from Nestl which are been 3/10/13

Kelantan, Malaysia Whose chillies are

Rural Development
IN INDIA:

Nestle Agricultural Services

has used the experience gained by nestle in different Parts Of the world to set up a system of direct and Efficient contact with the farmers in India. 3/10/13

Rural Development
IN PAKISTAN:

Joint Venture For

Driver

Training:

Nestle Pakistan joined hands with the National Highway and the Motorway Police(NHMP) for
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Rural Development
IN SOUTH AFRICA: Ice Cream On Wheels:
Nestle recognises the importance of

Enterprise development
to eradicate Poverty. The ice cream on Wheels
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initiative was launched

STRENGTHS . Many products with wide variety . Flexibility Recognized world wide OPPORTUNI TIES Healthy food market Asian Market . Increase in demand for bottled water
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WEAKNESS . Compete in many markets . Negative health effect

THREATS Intense competition Slowdown in rural area . Commodity price growth.

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Recommendations
Short-term
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Local markets . Health and Nutrition

Long-term
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Continue to expand globally Other markets and one brand Quality of products

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THANK YOU Presented byMABROOR AHMED AM552730

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