Nestlé Ready-to-drink Coffee Marketing Channel Optimization Research

With the rapid development of China's economy and the constant improvement of people's living quality,drinks are diversified day by day,among which coffee is linked gradually with fashion and modern life.This has brought rapid growth to consumption of coffee and form a huge potential consuming market.According to authoritative statistics,China's coffee consumption has remained between 80,000 and 100,000 tons in recent years,with the market growing at 10%-15%per year.China is expected to become the world's most promising country for coffee consuming and it is.estimated that China's consumption will reach 200,000 tons by 2020,and the retail sales will reach tens of billion RMB yuan.However,China's coffee production industry is highly competitive,and the high-end market is monopolized by the leading enterprises,while the low-end market is excessively competitive due to the numerous small brands.Nestle entered into China in the 80s of last century,producing various kinds of ready-to-drink coffee.After nearly 30 years of operation,Nestle has occupied a considerable market sharein the coffee category,but the existing marketing channel model for Nestle ready-to-drink coffee has lagged behind the development of the company,with imperfect channel system planning and more and more visible channel design problems.Therefore,studying the marketing channel of Nescafeand putting forward a feasible optimization plan for marketing channel has great practical significance to improve the marketing performance of Nescafe overall.Through composite analysis,this paper focuses on researchingthe marketing channel of Nescafeand points out the existed problems.Nestle has a single marketing channel for ready-to-drink coffee and relies too heavily on distributors.Besides,the evaluation of channels mainly depends on marketing performance,which leads to the frequent occurrence of transregional sales.Also,the incentive method of the channel is singleand the incentive effect of cash reward is poor,while marketing ability in the channel is low.These problems have led to the stagnant sales of distributors in Nestle.Aiming at the existing problems,this paper designs a series of channel optimization measures to try to eliminate these problems.The measures include optimal selection and training of channel members,standard evaluation and optimal implementation of channel plan,optimal evaluation of sales staff s performance,optimization of distributor's management and service,the management of running state performance of channel and channel conflicts.In general,this paper can help to improve the optimization of Nescafe's existing marketing channel and provide other similar companies with reference for marketing channel management.