Distribution Channel of Nescafe

Conflict in Nescafe Distribution channel

• When higher members in the channel sell their inventory of Nescafe directly to the last levels, by passing the intermediates, occurs mostly due to overproduction and dumping of goods by the higher channel member.

• A manufacturer sells to wholesalers and retailers directly. A wholesaler is unhappy that the manufacturer sells directly to one of their largest customers and threats to drop the manufacturer's products.
• • Undercutting by wholesaler

Thanks!

Power Relation between Nescafe Channel member

Creating shared value between Channel member

Video:

Nescafe has intensive DC

• Nescafe has many facilities from manufacturer to small retailers.
• Great coverage of Nescafe all over Egypt
• easy to buy anywhere and anytime.

Risking

Return Policy

Financing

Distributor sell goods on credit, Company charges DC before the stock is delivered

References:

The marketing flows of Nescafe`s distribution channel.

Physical Possession

Distributors bear all expenses, called cash distributors

ownership

Promotion

Margin for SC Partners, Wholesaler allow 1% discount on Cash payment, F.B, YouTube Ads, free mugs for End Users

https://www.logicbay.com/blog/companies-who-faced-channel-conflict-and-won-one-who-didn-t

Distribution Channel Of Nescafe

Service outputs cont.

https://www.nestle.com/aboutus/suppliers

How do products reach us? Distribution channels and its significance, MAY,2016, KMBANGERA

Information Provision:

• Nescafe mainly focus on 3 social Media tools Facebook, YouTube and Twitter

• Nestle Channel also sponsor for many social event to make people know more about their products

even small supermarket you can found coffee corner with their logo.

Customer Service: easy way to contact them and to purchase Nescafe

spatial convenience : Did you went to any super market and you did not find Nescafe?

Nestle sell Nescafe all over the world at millions of different points of sale

These include:

Big retail superstores, supermarkets and chain stores. vending machines, mobile

vendors

Bulk Breaking: in thanks of efficient distribution channel, you do not need to carry

unnecessary amount of Nescafe, you can always purchase what ever amount you want with

a reasonable price

Waiting or delivery time: due to a lot of facilities of Nestle, this provide a very

good customer experience in delivery time

https://www.nestle.com/investors/corporate-governance/articles

Service Outputs

Product variety:

• Gold
• 3*1
• Classic
• Mocha
• latte
• espresso
• cappuccino

Assortment

3*1 has different flavors

Distribution Channel Of Nescafe In Egypt

Submitted to: Dr. Mohamed El-Mokadem

Professor of Distribution Channels Management Course

submitted by: Fatma Aly

Date: 12-4-2018

The role of Nescafe ` Channel members member

Manufacturer: Production and Storage of Nescafe.

Distributor: Equipped with all necessary facilities to ensure and mange the availability of Nescafe in his area.

Super- Stock List: supplies the Nescafe to the Re-Distributor who is in charge of managing the availability outside the region of the Distributor.

Re-distributor: supplies Nescafe to Wholesaler and Retail in their respective region or area.

Wholesaler, retailer: Supply Super markets and others

Agenda:

• Introduction about Nestle
• Distribution Channel of Nescafe
• Roles of each Distribution channel member
• Service Outputs
• Channel Flows
• Intensive Channel of Nescafe
• The relation between distribution channel partners
• Conflict of Nescafe Destribution channel

Introduction about Nestle`

Established by Henry Nestle 1866

World Largest food processing Company

435 Production factories operating in 35 Countries

Focus on SHARED Value Across all the Channel

Focus on decentralization