Essay about Nestle Distribution Channel

2351 Words Dec 18th, 2010 10 Pages
Table of Contents Sr. No. | Title | Page Number | 1 | Introduction | 2 | 2 | Distribution Channels Structure | 2 | 3 | Terms of Appointment and Incentives for Distribution Channels | 3 | 4 | Reporting, Control and evaluation system for their sales force | 5 | 7 | Recommendations and Conclusion | 5 | 8 | References & Bibliography | 6 |

Introduction:
Success toady in the competitive world has become very difficult. This is because it does not solely depend on basic factors but on all the factors related to the organisation. Earlier it was possible for an organisation to dominate in the market but today due to lot of different methods, channels and modern tools for marketing and functioning of the organisation, the
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1. The Parties: are the guarantors needed for any obligations of the distributor 2. Territory/Products: The place and its boundary that the distributor is allotted for sale. The products the distributor is allowed to sale and many times the clause of new products that they get added automatically or new agreement has to be done each time. 3. Nature of Appointment: The company may reserve right to sell the product directly in the same territory or if needed can appoint a new distributor in the same territory. This point can be a complete no or flexible. 4. Duration of Appointment: The length of agreement or contract between the company and the distributor, as in fixed term or short term. If the contract is short term then the notice period has to specified, if it is a fixed term then the exact duration needs to be specified. There can be a linkage of the duration to the distributors performance say above a certain level then certain duration if not then discontinue. There also can be a probation period allotted for the distributor wherein the performance can be evaluated and then agreement can be decided. 5. Obligation of or restrictions on distributor: These are generally related to the sales, promotion and advertising of the product. The rights can be kept by the company or can be given to the distributor. This point also refers to any requirements for sales in the territory say government licenses, quality certificates, pollution

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