Nestlé India has a distribution channel that consists of the central warehouse n

Question

Nestlé India has a distribution channel that consists of the central warehouse near New Delhi. The goods are handed over to carry forward agents. The agents ensure that the goods reach the distributors assigned to each territory. Then the goods are passed over to the wholesalers in each of the territories. The goods then go to the retailers and finally reach the end customers.

The above constitutes an example of: A.indirect channel of distribution. B.direct channel of distribution. C.channel value proposition. D.franchising. E.licensing.

Explanation / Answer

Option (B).

The direct distribution channel is the following line of movement:

Warehouse > Agents > Distributors > Wholesalers > Retailers > End user.

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