Nestle is a large company in Pakistan producing different product brands. It produces a variety of healthy and quality products. This company offer good quality of food with different flavors. It prefer health and nutrition that are the most important thing in life. Food has grown into a need to express our way of life. Nestle in the country produce safe and healthy products for all family members. Nestlé is providing service to its customer in Pakistan since 1988.
SUPPLY CHAIN VISION OF NESTLE:
The objective of nestle company is to satisfy customer needs with low cost and high efficient operations driven by value creation and continuous improvement.
SUPPLY CHAIN MISSION:
To optimize and consolidate resources and process for a low cost.
To develop and manage effective supply network to achieve high level of service.
WAREHOUSING OF NESTLE:
A ware house is commercial building used for storge of inventory. Nestle products have been stored in different ware houses, as the product move from upstream to downstream by manufacturer importer, exporter, distributor and the retailer.
The ware house of nestle is located 4km away from the processing plant. It is located near to the plant to reduce the transportation cost. At factor ware house temperature is controlled to ensure the condition of the milk is fresh when it is reached to the ultimate consumer. Milk is a perishable item therefore, it can required effective storage condition in warehouses to preserve milk in its real quality. Nestle ware house has suitable temperature for the milk that should not be increased the 38 degree centigrade I order to keep preserved milk in its fresh condition.
HOW GOODS ARE ORDERED:
The demand for goods are order through order booking or through spot selling. The goods are supplied in the method of Last in First out (LIFO). Order and demand are received from the across the country. The method LIFO is used because it takes transportation cost, time to record and place an order along with delivery process. As for nestle milk Pak an expiry of six month so it needs to be delivered first.
HOW GOOD ARE DELIVERED FROM WARE HOUSE:
There is a gate in the ware house through which the products or goods are supplied. Once the picker picks up the goods the process of supply from the ware house is starts.
The super visor of the ware house rechecks that the goods are picked up in the right quality packed in the right way and loaded in the right truck.
PHYSICAL DISTIBUTION OF NESTLE
The distributor have sales force to collect the demand from the customer and then distributor have do supply the product two them in two ways.
1. Order booking
2. Spot selling
First the sales force get order from the shops or retailer and then supply the products.
In the spot selling the sales force has given a van full of nestle products and goods to sell out an area.
Nestle milk Pak goes for indirect channel of distribution. It means that nestle has a chain of intermediaries through them a product moves from the additional step as like, from manufacturing business via distributor to wholesaler to retailer and them to the last ultimate consumer.
DISTRIBUTION STRETAGY OF NESTLE:
The distribution strategy of nestle milk Pak is intensive because it is covering the wide market all over Pakistan. The regional headquarters of nestle are located in different cities of Pakistan through which they make their distribution to other local areas through divisional or district agencies, and from them deliver to wholesaler to retailer and from retailer to last consumer.
In order to reach remote areas the company linked with main distributor and the sub distributor. The company direct linked with the main distributor then supply products or inventories to the main distributor. Through which further the demand of sub distributor, wholesaler and retailer are covered,
The distributor targets are different from area to area and set on the basis if history of sale to that area and also from monthly forecasting.
The demand are taken from the following customers like modern trade accounts , general trade account or retailers, institution hotels, ice cream shops etc.
NESTLE DISTRIBUTION GEOGRAPHICAL ZONE:
The distribution of nestle goods are ddone through different zone or cites which are as follow;
North Zone: Central Zone South Zone
Islamabad Lahore Karachi
Peshawar Faisalabad Hyderabad
Jehlum Gujranwala Quetta
DISTRIBUTION CHANNEL OF NESTLE COMPANY:
Nestle company distributor are recruited from different areas. The distributor have their own sales force and vehicles which supply the product to the wholesaler and retailer in the specific area for which the distributor is recruited. The supply the product to the customer by order booking or on the spot selling.
Every distributor have three territories which are categories in three ways, A, B and C.
In the “A” territory the distributor visit the outlet or shop and get order from the retailer in every alternative day.
In “B” territory the selling is done on the spot by visited the retaileer twice a week.
In “C” territory the van of the distributor visit the retailer once in a week.
The distributor give sales target which they communicate with their sales team the target is usually like 15 to 20 percent annual growth in sales.
The distributor can achieve the target by selling more units of the products to their existing customers or outlets in their regions. In some cases the retailer themselves demand for more products to stock with them for using in shortage of the product. In other case the distributor have to persuade the retailer to buy more, usually some times when the retailer ask for 12 packs the distributor give them 15 packs. The reason behind that is to don’t leave space for the competitor.
BENEFITS OF PHYSICAL DISTRIBUTION TO NESTLE:
The physical distribution of the product help to fill the gap between demand and supply efficiently. Therefore nestle has established a few of their outlets and franchise in the major cities of Pakistan.
The benefits are as follow:
The outlets helps to save the repute company from stock out in peak season like, Ramazan, Eid and Muharam etc.
There are less occurrence of shortage of product in the trading area.
These outlets and franchise are serving as a competitive advantage for nestle in their marketing strategy.
It help to build life time relationship with their customer.
As a Manager
As a manager I want to make the company more efficient and effective in full filling the needs of the customer. To get the demand of the product in every minute from the customer when they wants to ordered or demand for a product online and I want to supply the product fast and quickly to meet the needs of the retailer to full fill the needs of the customer. And specially to direct interact with the customer for their needs and to provide them information about the product benefits etc. To satisfy their needs and wants and to make loyal customers in the market. I have decide to use the online technology for the company of nestle.
By using technology the company the will increase number customers through online marketing. It help them to achieve their goals in the market and compete in the market with effective and efficient service to the customer.
Although it’s a bit expensive, but use of technology will benefit Nestle in future and it reduces the time and human error and increase efficiency.
E-MARKETING OF NESTLE COMPANY:
The e marketing of nestle company is designed to enable better customer relationship and gaining competitive advantage in the market.
Online marketing is the most important part of business in today world, because it benefit the business in cost effectiveness, better customer relationship, gaining competitive, advantage and increase reward by using online marketing strategies. Therefore nestle company is moving from traditional marketing to online marketing Nestle company can achieve the objective of the company and to sustain relationship with the customer through online marketing.
WHY ADOPT E MARKETING FOR NESTLE COMPANY:
The e marketing is adopt for nestle company is to achieve the objective of the company which are helpful to reduce the cost of transportation, to build customer relationship and to produce best return on investment. In order to achieve the goal and objectives;
To build brand in the market through internet.
To increase the sales of the company and boost up the profit.
Online marketing is develop to build relationship with customer.
The e marketing strategy of nestle company is implement achieve the goals and objective of the company through website development, viral marketing, affiliate marketing search engine optimization and online advertising etc.
To achieve the objective and goals of the nestle company by developing and designing a good website which is the most important and initial stage in online marketing.
As we know that Asia is the internet mature continent in the world that has potential online market where internet is the current fad tool for the people to look for product online. They user search information about the different product through different websites, therefore nestle has developed a website to attract the potential customer and users to achieve the objectives of the company.
USABILITY OF WEBSITE:
The usability of a website help the users to achieve their objectives of visiting the sites in the simple and easy way. Nestle had designed it website with a clear image of its brands categories, if aconsumer would like to look for information about the products of the company user can easily get the information through the website.
Like, Brand> Milk>Growing up milk, it is a smooth flow channel for those who are just internet browsers to make them e shopper. The websitee have manyy pages with number of products brand in nestle. The navigation of the site should be taaken into account becaausse some of the visitor are not arrive on the front page when they enter in the site, so there is a possibility arise that the visitors are not aware of the otheer content on the site.
Nestle had ensured that the insite of the search facility they provided an option “search again” will offer marketing message, whenever there is no matching product the user can particularly search for that.
CONTENT IN THE WEBSITE:
The content of the websites should always recognized by the customer where a successful internet presence has been effectively providing information to visitors wants. “CONTENT IS KING” is king in the website. Nestle should always update the content by providing latest information about the products brands. By adopting the web as a commercial medium nestle is benefited in a way that can deliver its product promotion through direct and information oriented manner to the web user. It help nestle to lower their cost for postage, printing cost, and television cost incur when using traditional advertisement.
Viral marketing is the most powerful form of word-of-mouth advertising techniques which utilize the popularity of social media network, forums, email, blog and other resource to deliver marketing messages. Nestle can market their brands through different channels.
CRITERIA FOR SUCCESFULL VIRAL CAMPAIGN:
Easy to forward; nestle should make sure that the website has a good usability technique that help the user to share the information with friends.
Nestle add “email to friend” option on every product so the user can share the product with their friend.
Right Target Audience:
Nestle can provide information regarding the products in detail so the receiver will realize it is suitable to share with friends.
Nestle can use affiliate marketing as of its marketing strategy to increase its sales while build builds up its brand finally lead to the best return on investment. One of the advantage to nestle is that by doing affiliate marketing netle will have a wider place to sell its products. The more the website use the more the information share and thee number of customer increase and the more the sales create.
It helps nestle to build up brand name and at the same time increase sales volume and achieve time efficiently.
SEARCH ENGINE OPTIMIZATION
Search engine optimization is one of the most important e marketing approach that help nestle to achieve its objectives of the company by increasing the number of customer to its website. This can be done by make visibility and accessibility to nestle website from search engine google, yahoo and many others.
ADVANTAGES OF SEARCH ENGINE OPTIMIZATION
The advantage of search engine optimization is that it can deliver nestle website at the top of ranked site in the web. There will be large number of users using nestle website. If the website is ranked at the top of the first page as compared to the websites ranked the third or latter pages on search engine.
Search engine optimization also help in promoting the brand on the related award that nestle has won on Asian marketing effectiveness award on 2007. This will lead to the visitor decision and assist user to come up on purchasing nestle product.
Online advertising is the powerful tool to start and strengthen the relationship with customer in brand promotion. Nestle can place their various brand advertisement on web. Nestle can apply the form of Pay per Click (PPC) made from advertising. By using PPC advertising nestle place their advertisement on google award where advertisement will in the search result of google when the people are using one of its keword.
For instance, key word “Good Food Good Life” will immediately link nestle site on top of the search engine with the increasing number of information people spend time on internet. Nestle can easily promote its brands through online advertising.