This is how they set up their channel system. Except that the quotas go up every time it's cascaded down. To make things worse, it breeds a dog-eat-dog system. Instead of following protocol, the different channels circumvent it and go elsewhere where it is cheaper.
In order to compete, the regional distributors lower their prices and order higher volumes. This is done under the threat of termination and unjust quotas while costs for operations and expenses increase.
This becomes their kill zone. They don't care. The bottom line is -- hit our quotas and we don't care how you do it. For the small guy, it's his life savings. The problem here is sustainability and quotas without buffers and protection without regard for mature market conditions for loyal distributors. The set up that Nestle likes means cut-throat competition and pricing, cross border selling, and price wars. Their solution? Make the quota or we will find someone to replace you.
Pa-mission statement, mission statement pa kayo eh puro kayo sinungaling.
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