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MKTG 450SALES MANAGEMENT

Outline Nestlé Background

Nestlé Global Nestlé Turkey

Market Organization Chart

Nestlé Turkey Sales Sales and Marketing

CCSD Sales People Sales Automation Order Processing

Wanna more?

Can you guess when was Nestlé is founded?

1200’s1300’s

2000’s1900’s 1800’s1700’s

1600’s1500’s

1860

Source: www.nestle.com

Nestlé around the world 1860s Henri Nestlé, a pharmacist, food

for babies 1905; mergers and acquisition 1900s, Nestlé is now a Global Company World War I: By the end of the war,

Nestlé's production had more than doubled.

Globalization

Source: www.nestle.com.tr

Nestlé Turkey Oldest FDI in Turkey First year in Ottoman market 1750 unit

sold Growth

Turkey = Nestlé’s 15th market Mis Süt = Nestlé in dairy products market Nesquik, breakfast cereals Nestlé Pure Life = Water category

Markets 4 markets

Water Leader: Erikli (%60 owned by Nestlé) Players: Nestlé, Saka, Hayat (Danone), Pınar

Yogurt Leader: Danone Players:Sütaş, Nestlé, Pınar

Milk Leader: Ülker Players: Pınar, Mis (Nestlé), Danone

Ready-to-drink coffee Leader: Nestlé Players: Jacobs, Maxwell

Organization chartCEO

SALES MARKETING SUPPLY CHAIN GLOBE

TRADITIONAL TRADE

MODERN TRADE (NAM)

KAM CARREFOUR+GİMA

KAM MİGROS+TANSAŞ

KAM DİA

KAM BİM

KAM KİLER

KAM TESCO (KİPA)

KAM METRO+REAL

DISTRIBUTORS

ANKARA

İZMİR

TRAKYA

KADIKÖY

GROCERIES

CCSD

Sales

1/3 of

1/3 of

1/3 ofSales

Traditional Trade

Modern Trade

Distributors Groceries Carrefour + Gima

Migros + Tansaş

Bim

Dia

Tesco (Kipa)

Kiler

Metro + Real

Ankara

İzmir

Trakya

KAdıköy

One more chance!

Why Nestlé tried hard to diverse its revenue almost equally among different channels?

1/3 of

1/3 of

1/3 ofRisk Diversion

Traditional Trade• 4 Regional

Management Units• İzmir• Ankara • Trakya• Kadıköy

• 25.000 sales point• Used for

• Financial resource• Warehousing

• Disributor sales chiefs• Nestlé employee

Traditional Trade

Distributors Groceries

Ankara

İzmir

Trakya

Kadıköy

Coffee?

Who do you think was the idea to develop Nescafé 3 in 1? A sales chief

Modern TradeModern Trade

Groceries Key Accounts

Discount Hypermarket

Supermarket

Cash & Carry

Dia Bim Carrefour

Gima Real MetroMigros Kiler Tansaş

Migros (5M)

Traditional Trade & Modern Trade

Trad

ition

al

Trad

e

Modern

Trade

Groceries

Sales & MarketingCommercial

Director of Sales & Marketing

Sales Marketing

BEFORE!

AFTER!

Category Channel Sales Development

Duties:1) Information about new product 2) SWOT analyses3) Make next year’s plan

Sales: all about customer (best shelf order, posters, umbrellas at the groceries)

Marketing: all about consumers (promotions etc)

Sales People• Hiring

• Tests, • Every time of the year

• Training• Trained buyers, requires trained sellers• Management Trainee• Many opportunities• “Best practices”• SAP education

Quiz!• With a reward!

• Sales peole should be motivated. Why?

Effort PerformanceReward

Expactancy Instrumentality Valence

Sales People Motivation• CCSD’s in charge• Give a target and reinforce the success

The winner! Bonuses monthly targets Key Performance Indicators The award is given in each quadrant

Sales Force Automation• SAP

• Palm• Who, when, how?• Takes order• Connected to HQ

Order Processing• Distributors have warehouses, stocks are kept, • Key Accounts: There are some differences.

Everyday for Carrefour , For Carrefour and Metro

EDI System received by Supply Chain

Twice a week for Gima For Gima:

E-mail Delivery: next day

Migros B2B is important Strictly controlled

LEAD TIME

Key Points TO PREVENT SPOT:

Distributors ID Follow up SPOT

Don’t concentrate on 1 channel. Diverse the risk.Nestlé succeded it very well!

. . .. ..

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