Nestle India has proactively divided India into 15 different clusters, considering each market different. The division has been made on the food preferences of the local residents.
Nestle India Ltd is embracing a hyperlocal model for marketing and distribution. It will help increase penetration and expand reach leading to faster growth. Suresh Narayanan, chairman and managing director, Nestle India said,“There are many Indias in India. Each of them needs to be served differently.”
Nestle India has developed a separate team in which there are 10-20 people from sales, category marketing, supply chain, and trade marketing—for each of the clusters.
Narayanan further said,“Product placements, distribution, marketing and promotions for each cluster would be tailor-made based on insights from the ground. This would ensure better penetration in existing markets and help us expand into adjacent markets.” This approach has given Nestle India to focus on 100 top towns, it is a value-driven strategy.
Nestle India is providing its products to around 4 million, out of which it reaches 1.3 million people directly. The Nestle chairman further added, “It may not be a completely new business. It could be the extension of an existing category. Premium coffee, category extensions in prepared dishes and snacks are among a bunch of things that are on the priority list.”