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Presented By:: Nupur Harde Nihar Ranjan Pradhan Bhavesh Agarwal C.Bharat Simma Reddy Piyush Singh Shivam Yadav

Nestle was founded in 1886 in Switzerland by Henri Nestle. It started as an infant cereal company and later expanded globally through acquisitions. Nestle pioneered micro-distribution in Brazil by recruiting local women in slums as micro-distributors to sell products door-to-door. It also used non-store retailing and floating supermarkets to reach remote villages. Nestle sees branding as important for building long-term customer relationships and loyalty over short-term profits. It aims to expand its micro-distribution network across more states in Brazil to increase revenue from bottom of pyramid customers.

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113 views11 pages

Presented By:: Nupur Harde Nihar Ranjan Pradhan Bhavesh Agarwal C.Bharat Simma Reddy Piyush Singh Shivam Yadav

Nestle was founded in 1886 in Switzerland by Henri Nestle. It started as an infant cereal company and later expanded globally through acquisitions. Nestle pioneered micro-distribution in Brazil by recruiting local women in slums as micro-distributors to sell products door-to-door. It also used non-store retailing and floating supermarkets to reach remote villages. Nestle sees branding as important for building long-term customer relationships and loyalty over short-term profits. It aims to expand its micro-distribution network across more states in Brazil to increase revenue from bottom of pyramid customers.

Uploaded by

nihar pradhan
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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P R E S E N T E D B Y:

NUPUR HARDE
NIHAR RANJAN PRADHAN
B H AV E S H A G A R WA L
C . B H A R AT S I M M A R E D D Y
PIYUSH SINGH
S H I VA M YA D AV
INTRODUCTION
• N ES TLE WA S F O U N D ED BY H EN R I N ES TLE I N
1 8 8 6 IN S WI TZER LA N D .

• H EN R I N ES TLE, A P H A R M AC IST F R O M V ES EY,


D EV ELO P ED A N I N FA N T C ER EA L.

• IN 1 8 7 5,N ESTLE WA S A C QU IRED BY J U LES


M O N N ET.

• BY 1 9 1 0, C O M PA NY H A D FA C TO R IES I N U S , U K ,
G ER M A NY, A U S TR A LI A, S PA I N .
MICRO-DISTRIBUTION IN BRAZIL
• Brazil was the first market where Nestle started a regionalization unit to develop
products.
• The product developed in these units were known as PPPs ( Popularly positioned
products).
• Existing distribution system were not designed to distribute products in the quantity
demanded by the target consumers in urban slums called Favelas.
• In order to address the issue, Nestle came up with distribution system called Nestle ate
voce.
• Micro-distributor recruited reseller who were women from Favelas, who peddled
Nestle product in their neighbourhood.
• Further micro-distribution in country, Nestle launched the floating supermarket that
targeted inaccessible village in the amazon.
RETAILING

• RETA I L IN G I S A D I S TRIBU TIO N P RO CES S , I N W H ICH A LL TH E


A CT I V I TIE S I N V O LVE D I N S E L L I N G T H E ME RCH A N D ISE D I RE CT LY TO
T H E F I N A L CO N S U ME R.

• RE TA I L IN G I N CL U D E S A L L A CT I V I TIE S D I RE CT LY RE L AT E D TO S A L E S
O F G O O D S A N D S E RV I CE S TO T H E U LT I MATE CO N S U ME R.

• CO N S U ME RS BE N E F I T F RO M RE TA I L ING I S T H AT RE TA I L E RS P E RF O RM
MA RK E T I N G F U N CT I O N S T H AT MA K E S I T P O S S IBL E F O R CU S TO ME RS TO
H AV E A CCE S S TO BRO A D VA RI E T Y O F P RO D U CT S A N D S E RV I CE S .
TYPES OF RETAILING
• Store Retailing
• Non-store Retailing
1) Direct marketing
2) Direct selling
3) Automatic vending machine
4) Buying service
• Corporate Retailing
THE RETAIL ORGANISATION

• Corporate chains

• Voluntary chains and retailer cooperative

• Consumer cooperative
E-Retailing
• Electronic retailing is the sale of goods and services through the
Internet.

• E-tailing can include business-to-business (B2B) and business-to-


consumer (B2C) sales of products and services.

• Example for E-Retailing is Amazon.


NON STORE RETAILING ADOPTED BY NESTLE

• Nestle used Non store retailing in the BOP segment by recruiting the people
among who sold products like drinks, candy and flowers among the community.

• The also recruited from local churches and schools.

• There were Micro distributors who appointed Resellers who had lived in the
neighbourhood for at least 5 years and were trusted by the community.

• The Micro distributors and Resellers were trained on different food groups and
they could advise the customers about the combination of food they need to eat.
Commodity Vs Branding
•BRANDS CONNECT WITH EMOTION.
Commodities Connect on Price

•BRANDS ARE VISIBLE.


Commodities are Invisible.

•BRAND PUT LONG-TERM PROMISE OVER SHORT-


TERM PROFITS.
Looking Ahead…
NESTLE HAS 273 MICRO DISTRIBUTORS IN 20 OF THE 26 STATES
OF BRAZIL TILL JULY 2012.

NESTLÉ'S REVENUE INCREASED TO $20.5 BILLION IN 2011.

REVENUE FROM BOP SEGMENT INCREASED BY 25% AND


REACHED $ 1.8 BILLION IN 2011.

LOGISTICS WAS RESPONSIBLE FOR NOT HAVING OPERATIONS OF


NESTLE IN THE WHOLE COUNTRY.

NESTLE IS PLANNING TO EXPAND IT’S BUSINESS IN 26 STATES


TILL 2013.

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