Chapter one

1: Introduction
1.1 Back ground of the study
Marketing is, more than any other business function, deals with customers. Marketing
means the process by which companies create for customers and build strong customer
relationship in order to capture value from customers in return. It consists of the firms
marketing mix, the set of marketing tools the firm uses to implement its marketing
strategy. The major marketing mix tools are classified into four broad groups, called the
four P’s of marketing: product, price, place, and promotion. The firm must blend all of
these marketing mix tools into a comprehensive integrated marketing program that
communicates and delivers the intended value to chosen customers (Kotler, 2010:36).

Among these marketing mixes this study focus on distribution (place).Distribution is one
of the marketing mix which facilitate movement and coordination of supply and demand
in the creation of time and place utility in goods, Havard and Cavale (2007:86).
In this paper, we are concerned with the assessment of marketing distribution strategy of
MOHA Soft Drink Share Company. Even though it’s natural to come up though different
shortage, limitations and various factories or any kind of organizations is striving to
produce at least a single product from which it incurs values , revenues or profit. In
order to earn profit all organization needs to have marketing strategy. (Baker: 1998:51)
Distribution Marketing strategy serve as fundamental under pinning of marketing plans
designed to fill market needs and reach under marketing objectives. Plans and objective
are general tested for measurable results. Common distribution marketing strategies are
developed as multi years plans with a tactical plan detailing specific action to be
accomplished in the current year. Time horizon covered by the marketing plan varies by
company, by industry and by nation. However time horizon is becoming shorter as the
speed of change in the environment increases marketing strategies are dynamic and
interactive. As we get from (www.ask.com)

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Marketing distribution system involves careful scanning of the internal and external
environment. Internal environment factor include marketing mix, plus performance
analysis and strategic constraint- external environment include customer analysis ,
competitor analysis –target market analysis as well as evaluation any element of
technological, economic, Cultural and Political.

A key component of marketing distribution is often to keep marketing in line with

company over arching mission statement.

Marketing distribution strategy is essential pattern or plan that integrates organization

major goals, policies and action sequence in cohesive whole to achieve customer success.

Marketing distribution strategy should be flexible based on situation a specially in 21 st

century due to financial crisis the past strategy may not accurately worked we have to
differentiated cultural and moderate strategy and use the that enable us meet potential
customer.

MOHA Soft Drink Company produces five product mix Pepsi (cola flavor, Miranda
(orange flavor), 7up (Lemon flavor), Miranda tonic & Miranda apple (Apple flavor). The
product is available in 300ml returnable bottles.

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1.2 Statement of the problem
Distribution Marketing strategy serve as fundamental under pinning of marketing plans
designed to fill market needs and reach under marketing objectives. Company often pay
too a little attention to their distribution channel, however, sometimes with damaging
results. In contrast, many companies have used imaginative distribution systems to gain
competitive advantage. from the economic systems point of view, the role of marketing
intermediaries are to transform the assortments of products made by producer into the
assortments wanted by consumers.

Even though, there are a number of problems that would affect the marketing
distribution strategy some of are: - shortage of own transportation service to
distribute the output at the customer destination, bad timing promotion; means, take rest,
or unfavorable condition, will also affect the customers to shift other company product -
and finally complexities of product in the market may also affect customer to change
their motive or attitude and company to change their marketing distribution strategy.

All organization have their own marketing distribution strategy which is a plan that
specified the impact that the organization hope to achieve and demand or product line is a
given target market.

There are number of factors that affect the marketing distribution strategy designing such
as human power, material, land management, production method and etc.

As to their extents of necessity these factors are not easily available. Beside this process
of combining and using these factor is the other headache. Balancing production capacity
with actual or potential the other factors which treat the strength of the factory. The
reason to select this topic is in MOHA soft drink Company there is a problem of
distribution strategy to reach the product to the final users so to fill this gap the researcher
will study this research.

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This study important by assessing the distribution strategies of MOHA soft drink
Company by recommend and suggest possible solution to their distribution strategy.

The main purpose of this study would try to answer the following questions
Research questions
1. What were the factors that affect the distribution system of MOHA Soft Drink Share
Company?
2. What type of distribution system did by MOHA Soft Drink Share Company use?
3. How did MOHA handle its distribution responsibilities?
4. Did the company transportation service satisfy the customer need or do customers
satisfy by the transportation services by company delivery?
1.3 Objective of the study
The general objective of the study was to assess the overall marketing distribution system
of MOHA soft drink industry s.c.
Specific objectives
The specific objectives of the study were the following:
1. to identity major challenges of MOHA soft drink share company product
2. To point out the factor that affected the distribution system of MOHA Soft Drink Share
Company.
3. To help other researcher and gave sufficient information about the distribution system
of MOHA.
4. To assess the availability of enough ware house

1.4 Significance of the study

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By assessing the distribution strategies of MOHA Soft Drink Company, the study should
provide to close the gap between customer and organization. This study expected to
provide the following results:
 It helps to know and improve current company distribution strategies.
 It may serve as reference materials for those seeking deep study in the area under
investigation.
 The student researcher gets experience and knowledge on how to conduct
research.

1.5 Scope of the study

This study tried to describe the distribution strategies. It has been better if the study
covers the industry as a whole but due to a shortage of time and budget, the study would
be delimited to only MOHA soft drink Company in Addis Abeba in Nifas silk. In
addition to this the study should be delimited to distribution strategy rather than dealing
with all marketing mix such as product, promotion and pricing strategies due to time and
financial constraints.

1.6 Limitation of the study

In conducting this research paper the researcher would encounter different kind of
problems.
The most serious are indicate as follows
 Inadequacy of data and less availability of related information with the factory’s
current activities performed.
 Lack of strong experience in the way of research under taking limited the overall
organization of the papers as the beginner and students.
 Unwillingness of respondents because of this the researcher would encounter
inadequacy of data.

CHAPTER TWO

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 2. Literature Review
2.1 Definition of distribution
A distribution channel is a set of interdependent organizations (intermediaries) involved
in the process of making a product or service available for use or consumption by the
consumer or business user.
Channel decisions are among the most important decisions that management faces and
should directly affect every other marketing decision. For a general term distribution
includes every function concerned with the transferences of good from the point of or gin
unit they come in to the possession of final buyers. Includes transportation, storage, and
merchandizing, promotion of outlet’s stocking or dealing in a designated product.
According to (Baker 1998) description

Place: Place is the environment in which the service is as stabled band where the firm
and customer interact and tangible commodities which facilitate performance or
communication of the service place as a number of aspect of concern to the service.
Marketing the actual location of the promises that channels of distribution is concerned
the client will be searching, for physical dues in assessing the success of the company.
Another author (Bewman 1996 P.78) explain
While selecting my research doing on the distribution channel, the I compared the costs,
sales volume and profits expected from alternative channels of distribution. We have to
consider the following things:-
 Market consideration
 Number and location of buyers
 Size of order
 Customer buying habits
 Product consideration
 Unit value
 According to sherlkar, (2004:147) physical means the process of delivering the
product to the user or consumer promptly, safely and in time.
 Physical distribution involves management planning action and control of the
physical flows of raw material and finished goods from the point of use

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 consumption to meet customer need at a profit. it covers all activities in the flow
of good between producer and consumer, James, (1997:60).
 Physical distribution as market logistics a physical distribution has recently
expanded into the broader concept of supply chain management. Supply chain
management starts earlier than physical distribution attempts to produce the high
input craw material components convert them efficiently into finished products
and dispatches them the final destination. Kolter,( 2002: 536) explains
 Both outers under line on the point which explains physical distribution as
delivering products to consumer promptly safely and in time that is the time and
place utility aspects is regarded as the major task in physical distribution decision
makes process . Physical distribution channels and including such importance of
decision areas customer service inventory controls material handling protective
packaging order processing transportation.
 Ware house selection ware housing physical distribution is part of a larger process
distribution which include whole sale and retail marketing as well as the physical
movement of product, lancy, (1990:56).
 Physical distribution activates activities have recently received increasing
attention from business manger including small business owners this is due in
large that function often represent almost half of the total marketing costs of a
product, Lancy,(1990:56).
 Explain physical distribution management employed management employed in
manufacturing and commerce to describe the broad range of activates concerned
with efficient movement of finished product from the end of the product line to
the consumer and in some cases include the movement of raw material from the
source to the beginning warehouse material handling packing inventory
management order processing and customer service, Khanna, (2002:14)

 According to kumar and meenakshi ,(2006:356) physical distribution focuses on

the efficient movement of goods from manufacturing to customers of the product.
2.2Channels of Distribution

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Is defined as a system of relationship existing among business that participate in the
process of buying and selling products and serviced. Some of the activities and in votives
great members who take an ownership of the product automatically increase there is
always the possibility that may not able to sell the produce. Subsequently, other activities
while highly importance of the process don’t encounter the same level of risk and are
more special led in nature. For example when channels. As economy group market
information to another participation intermediaries to perform varies activates increase,
before a company can consider specific elements of channels stature it has been
identified three channels classification based on dependence these are:-
- Conventional channels
- Signal transaction channels and
- Vertical marketing systems
Mostly manufacture helps to know the exact quality and quantity of goods required by
required by consumers and he plants his manufacturing schedule according and may get a
benefit of larger order from whole sale.
They make manufacture to maintain a constant level of production by placing orders at
regular interval and demand of the consumer they are also sufficient information which
are quite in tolerant to the company. (Baker 1996 p.20)
2.3 The nature and importance of Marketing channel
Few producers sell their goods directly to the final users. Instead, most use intermediaries
to bring their products to market. They try to make a distribution channel – a set of
interdependent organization involved in the process of making a product or service
available for use or consumption by consumers or business users company’s channel
decision directly affect every other marketing decisions. The company’s pricing depends
on its works with national discount chains, uses high quality specialty stores, or sells
directly to consumers via the web. The firms sell force and communication decision
depends on how much persuasions, traning, motivation, and support its channel partner
needs. Company often pay too a little attention to their distribution channel, however,
sometimes with damaging results. In contrast, many companies have used imaginative
distribution systems to gain competitive advantage. from the economic systems point of
view, the role of marketing intermediaries are to transform the assortments of products

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made by producer into the assortments wanted by consumers. Producers make narrow
assortments of products in large quantity, but consumers want broad assortments of
products in small quantities. In the marketing channels, intermediaries by large quantities
from many producers and break them down into smaller quantities and broader
assortments wanted by consumers. These, intermediaries play an important role in
matching supply and demand. In making products and service available to consumers,
channel members add value by bridging the major time, place, and possession gaps that
separate goods and service from those who would use them.

2.4 Functions of distribution channel members

1. Information: gathering and distributing marketing research and intelligence
information about actors and forces in the marketing environment needed for
planning and aiding exchange.
2. Promotion: developing and spreading persuasive communication about an offer
3. Contact: finding and communicating with prospective buyers.
4. Matching: shaping and fitting the offer to the buyer needs, including activities
such as manufacturing, grading, assembling, and packaging.
5. Negotiation: reaching agreement on price and other terms of the offer so that
ownership or possession can be transferred.
6. Physical distribution: transporting and storing goods.
7. Financing: acquiring and using funds to cover the cost of the channel work.
8. Risk taking: assuming the risk of caring out the channel work.

The question is not weather thus functions need to be performed they must be, but rather
who would perform them. To the extent that the manufacturer performs thus functions, its
costs go up and its prices have to be higher. When some of these functions are shifted to
intermediaries, the producers’ costs and prices may be lower, but the intermediaries must
charge more to cover the cost their work. In dividing the work of the channel, the various
functions should be assigned to the channel members who can add the most value for the
cost.

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2.5 Number of channel levels
Channels levels is a layer of intermediaries that performs some work in bringing the
products and its ownership closer to the final buyer .the number of intermediaries levels
indicates the length of a channel .companies can design their distribution channel to make
products and services available to customer in different ways.
Direct marketing channels: it is a marketing channel that has no intermediary levels;
the company sells directly to consumers.
Indirect marketing channel: it is a marketing channel that contains one or more
intermediary levels.

2.6 Types of distribution strategies

Companies must also determine the number of channel members to use at each level.
Three strategies are available:-intensive, exclusive and selective distribution strategies.
1. Intensive distribution strategies: it is strategies in which they stoke their
products in as many outlets as possible. Producers of convince products and
common raw materials typically seek intensive distribution. These goods must be
available where and when consumers want them. For example, toothpaste, candy,
and other similar items are sold in millions of outlets to provide maximum brand
exposure and consumer convince.
2. Exclusive distribution strategies: it is a strategy in which the producer gives
only a limited number of dealers the exclusive rights to distribute its products in
their territories. Exclusive distribution is often found in the distribution of new
automobile and prestige goods. Some producer purposely limits the number of
intermediaries handling their products. Exclusive distribution strategies also
enhance the products image and allows for higher mark ups.
3. Selective distribution strategy: it is a strategy that use of more than one but
fewer than all, of the intermediaries who are willing to carry a company’s
products. By using selective distribution strategy, producers do not have to spread
their efforts over many outlets, including many marginal ones. Producer can
develop good working relationships with selected channel members and expect a
better than average selling effort. Selective distribution strategies gives producer

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 good market coverage with more control and less cost than does intensive
distribution.

2.7 Types of Intermediaries

A firm should identify the types of channel members available to carry out its channel
work. For example, suppose a manufacturer of test equipment has developed an audio
device that detects poor mechanical connection in machines with moving parts. Company
mangers sink this product would have a market in all industries in which electronic,
combustion, or steam engines are made or used. The company’s current sales force is
small, and the problem is how best to reach these different industries. The following
channel alternatives might emerge from management decisions.

Company sells force: expand the company direct sells force. Assign outside sells people
to territories and have them contact all prospects in the area or develop separate company
sells force for different industries.
Manufacturers agency: hire manufacturers agent are independent firms whose sells
force handle related products from many companies in different regions or industries to
sell the new test equipment.
Industrial distributors: find distributors in the different regions or industries who will
buy and carry the new line.

CHAPTER THREE
3. Research methodology
3.1 Research Type

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The study used descriptive research methods because it is one of the research approaches
that use both qualitative and quantitative expressions and enable to obtain the general
overview of the fact.
3.2 sampling
3.2.1 Target population
The target populations of the study were employees and manager of MOHA Soft Drink
Share Company as well as agents of the company. The target populations of this study
30 employees and 25 agents and distributors.
3.2.2 Sample size and sampling method
Based on the company data, there were 30 employees in the of Nifas Silk Branch. From
this employees are male and 85 employees are female.
To do the research efficiently, the researcher took a sample from 231 employees select 30
employees and from 25 agents takes the whole agents, because it was difficult to the
researcher distributed the question to all the employees of the organization and it was
costly.
To do a good research, the researcher used simple random sampling because it gaves
equal chance for every respondent and avoids bias.
3.3. Source of data
The researcher used both types of data sources. Those were primary and secondary data
to identify the problem that related to distribution strategy.

3. 4 Data collection method

For conducting of this research the researcher would used both primary and secondary
data from various sources.

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The researcher was collected primary sources from the employees and agents.
Questionnaire, include both close and open ended questionnaire.; because open ended
question should enabled respondents to expressed their idea freely and closed ended
questions should and unstructured form.
The researcher also collected used secondary data from books, company annual report,
sales report and other material.
3.5 Data Analysis method
In order to analysis the collected data, the researcher used both qualitative and
quantitative method and finally the study used tabulation, chart and percentage. This
means the researcher should be described the study based on the data from respondents.

CHAPTER FOUR

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 4. DATA PRESENTATION ANALYSIS AND INTERPRETATION
The objective of the study is to assess the distribution strategy of Moha’s Soft Drink
Share Company in case of Addis Ababa Nifas Silk Branch. In this study, the following
main points raised by the researchers thus were: the types of distribution strategy that
practiced by the Moha’s as well as the distributors of the Moha’s product, the types of
distribution channels used by distributors and Moha’s by itself to distribute Moha’s Soft
drink company products, what it look like the sales volume of the company products as
compared to other soft drink company’s products and challenges that affected both the
company and distributors while they were delivering Moha’s products to their customers
of Moha’s products.
Therefore, the student researcher classified the analysis in to two parts, thus are: the
Analysis of the Moha’s Soft drink Company and the analysis of the distributors of
Moha’s Soft Drink Company Products.
4.1. Employees responses
A total of 55 questionnaires distributed to the employees Moha Soft Drink Share
Company and distributors of Moha‘s Products and all of the questionnaires were returned.
Table 4.1: Represents the Summary Returned Questionnaire
Respondents Distributed Returned %
questionnaires questionnaires
Employees 30 30 100%
Distributors 20 20 100%
Total 55 55 100%
Source: Own field survey, 2014
As indicated in table 1 all of the target respondents of this study responded their response
fo r the student researcher.
Table4. 2: General Information about Employees of Moha Soft Drink Share Company
Item Respondents
No No %
1 Sex - Female 9 30
-Male 21 70
Total 30 100
2 Age
 18-25 8 26.7

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  26-30 6 20
 31-36 12 40
 37-40 1 3.3
 41-45 1 3.3
 Above 45 2 6.7
Total 30 100
3 Levels of education
 Primary school completed (1st and 2nd 1 3.3
cycle)
 Secondary school completed 7 23.3
 Certificate 8 26.7
 Diploma 10 33.3
 Degree 3 10
 Master degree 1 3.3
 Above Master degree -
Total 30 100
Source: own field survey, 2014
As indicated in the above table, from total respondents 30 (70%) of them were male
respondents and 9(30%) of them are female respondents. Thus, this result showed that
majority of the employees respondent were males and more of male employees in the
Moha Soft Drink Company.
In the item 2 of table 2, indicated that the employees whose age found between 18-25 years
covered 26.7% of employees’ respondents. While 6(20%) of them are within the age 26-30
years. 12 (40%) of respondents are between the age of 31-36 years. 2(6.7%) of respondents
who found within a range of 37-45 years .There were 2(6.7%) of respondents above 45.
Because the majority employees of Moha’s Soft Drink Company were within the range of
31-36 years old. Based on the above data the student’s researcher said that majority of are
within this age.
As indicated in the item number 3 the level of respondents education stated 1(3.3%) of
employees completed primary school, 7 (23.3%) had completed secondary school. 8
(26.7%) were certificate on their education level. 10(33.3%) of respondents were diploma
on their education level. 3(10%) of respondents had degree holders and 1 (3.3%) of
respondents had master degree on their education. This showed majority of employees had
diploma on their education level.

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Table4. 3: Current Job position and Year of work experience of the Target Respondents
Item Respondents
No No %
1 Current Job position - Manager 1 3.3
-Marketing Manager 1 3.3
- Marketing Officer 16 53.3
- Lower level employee 12 40
2 Year of work experience 30 100
 1-3 3 10
 4-6 11 36.7
 7-9 14 46.7
 10 and above 10 2 6.7
Total 30 100
Source: own field survey, 2014
As indicated in the item number 1 of table 3 the job position of the respondents, they
stated 1(3.3%) of employee was the manager of the Nifas Silk branch, 1(3.3%) was the
marketing manager of the Nifas Silk branch, 16 (53.3%) were employees respondents
were marketing officer. 12(40%) of respondents were lower employee of the Nifas Silk
branch office.
T+
hus, most of the employee respondents were marketing officers of the Nifas Silk branch
office.
Item 2 which depicted the work experience of the respondents, 3(10%) of respondents had
1-3 year of work experience, 11(36.7%) of respondents had 4-6 year of work experience.
14(46.7%) of respondents had work experience 7-9 years and the remaining 2(6.7%) of
respondents had work experience 10 and above 10 years.
Thus, the student researcher concluded from the above data most of respondents had work
experience between 4-9 years of work experience.
Table 4.4: The Distribution Strategy of Moha to Distribute its Products
No The distribution strategy NO of respondent %
1 Intensive distribution strategy 7 23.3
2 Exclusive distribution strategy 18 60
3 Selective distributive strategy 5 16.7
Total 30 100

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 Source: Own field survey, 2014
The above table indicated that the distribution strategy that practiced by Moha soft drink
company, most of the respondents responded that Moha used exclusive type of distribution
strategy to distribute its products and they covered 18(60%) of the respondents. 7(23.3%)
respondents replied that Moha’s used intensive type of distribution strategy to distribute its
products and less in number of respondents replied that Moha used selective type of
distribution strategy to distribute its products.
Thus, the student researcher concluded from the above data Moha’s used mainly to
distribute its product Exclusive type of distribution strategy to distribute its products for its
customers.
Table 4.5: The Importance of Moha’s Distribution Strategy to Increase Sales Volume
Item Response
Very High Medium Low Very low
high
N % NO % N % N % NO %
O O O
1. What is the level of your 15 50 9 30 4 13.3 2 6.7 - -
organization distribution
strategy for your
organizational products
of sale increment?
Source: own field survey, 2014
Table 4.5 which explained the level of Moha’s distribution strategy to increase sales volume;
most of the respondents responded that there was very high (5) supported Moha to increase its
sales volume and these respondents covered15 (50%) of the sample respondents. The second
in frequency and percentage of respondents responded that there was high (4) increase the
distribution strategy for sales volume and these respondents covered 9(30%) of the total
respondents. The third more of respondents responded Moha’s distribution medium (3) to
increase the sales volume. The remaining 2(6.7%) of respondents replied that Moha’s
distribution strategy low support for increased sales volume.

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The student researcher concluded from the above data, Moha’s distribution strategy helped to
increase the sales volume.

Table 4.6: The Effectiveness of Moha’s Distribution Strategy

No Item Number of Percentage (%)
Respondents
Yes No Yes No
1 Is the strategy that used 25 5 83.3% 16.3%
by Moha to distributing
the products effective?
Source: own survey, 2014
The above table which showed the magnitude of the effectiveness of the distribution
strategy ; most of the respondents responded ‘’yes’’ Moha’s distribution strategy was
effective and the number of respondents who replied this equal to 25 and in percentage
(83.3%) of the total respondents; while 5(16.7%) respondents responded that the
distribution strategy was not effective.
As a result of the above data the student researcher concluded that the distribution strategy
used by Moha’s was effective.
Table 4.7: Evaluate the Effectiveness of Moha’s Distribution Strategy
Item Response
Very High Medium Low Very low
high
N % NO % N % N % NO %
O O O
1. How do you rate the 10 40 9 36 4 16 2 8 - -
effectiveness of the strategy?
?

Source: own field survey, 2014

Table 4.7 which explained the level of the effectiveness of Moha’s distribution strategy; most
of the respondents responded that there was very high (5) the performance distribution

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strategy of Moha and these respondents covered10 (40%) of the sample respondents. The
second in frequency and percentage of respondents responded that there was high (4) the
effectiveness of the distribution strategy of Moha and these respondents covered 9(36%) of
the total respondents. The third more of respondents responded Moha’s distribution medium
(3) the distribution effectiveness of Moha and these respondents constituted 4(16%) of
respondents. The remaining 2(6.7%) of respondents replied that Moha’s distribution strategy
was low.
The student researcher concluded from the above data, the effectiveness of Moha’s
distribution was at good level.

Figure 1: The Types of Distribution Channel used by Moha to distribute its Products

Types of Distibution Channel

20%

direct Channel
Indirect Channel

80%

Source: Own field survey, 2014

Figure 1 indicated that types of distribution Chanel used by Moha’s to distribute its
products, 24(80%) of respondents used indirect channel to distribute its products; while the
remaining 6 (20%) of respondents replied that Moha’s used direct distribution channel to
distribute its products.
Thus, Moha used indirect distribution channel to distribute its products.
Table 4.8: Magnitude of the Moha’s Cost for distributing its Products

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 Item Response
Very High Medium Low Very low
high
N % NO % N % N % NO %
O O O
1. How do you evaluate 8 26.7 18 60 4 13.3 - - - -
the distribution cost of
Moha’s soft drink to
distribute its products?

Source: own field survey, 2014

Table 4.8 which depicted the level of the magnitude of Moha’s cost to distributing its
products; most of the respondents responded that there was high the cost of Moha’s for
distributing its products and these respondents covered18 (60%) of the sample respondents of
employees. The second in frequency and percentage of respondents responded that there was
very high the cost set by Moha to distribute its products and these respondents covered
8(26.7%) of the respondents. The third more of respondents responded that the cost set by
Moha to distribute its product medium and these respondents constituted 4(13.3%) of
respondents. No respondents responded that low and very low Moha set to distribute its
products to the customers.
Based on the above data, the researcher concluded that the cost of Moha to distribute its
products high.

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 Table 4.9: The Comparison between Sales Volume Moha’s Products with Other
Company’s products in Daily Basis

Item Response
Very High Medium Low Very low
high
N % NO % N % N % NO %
O O O
1. As compared to other 4 13.3 9 30 11 36.7 5 16.7 1 3.3
soft drink company
products, how much
Moha sell its products to
customers in daily?

Source: own field survey, 2014

Table 4.9 which depicted the comparison of sales volume of Moha’s products as compared to
other company’s products ; most of the respondents responded that Moha had medium sales
volume in a day as compared to other company’s products and these respondents covered11
(36.7%) of the sample respondents of employees. The second in number and percentage of
respondents responded Moha’s sales volume as compared to other company’s products high
and these respondents covered 9(30%) of the respondents. The third more of respondents
responded that Moha’s sales volume as compared to other company’s product low and these
respondents covered 5(16.7%) of respondents. The fourth in number and percentage of
respondents responded that very high sales volume of Moha’s as compared to other
company’s products and they covered 4(13.3%) of the respondents and the least in number of
respondents responded that very low the sales volume of Moha’s as compared to other
company’s products.
Based on the above data, the student researcher concluded that Moha’s sales volume in day
as compared to other company’s products medium.
Table 4.10: The Magnitude of Moha face Problem while Distributing its Products
S.No Item Response %
Yes No Yes No

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 1 Does Moha face problem while 22 8 73.3 26.7
distributing its products
Source: Own field survey, 2014

Table4.10 explained the magnitude of Moha face problem while distributing its products; 22(73.3%)
respondents responded that ‘’yes’’ Moha faced problem while delivering its products while 8(26.7%)
of respondents replied that’’ No’’, Moha faced problem while delivering its products to the
customers.
Therefore, the student researcher concluded that Moha faced problem while delivering its
products for customers.
The target respondents of Moha’s employees raised the following challenges that affected
them while they were distributing Moha’s products. Thus were

 Lack of transportation facility of the Moha’s create some problem at the time of
deliver the products of Moha’s to its customers
 Lack of products at various time

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  The employees were busy due to overlap of job, so the marketing officer at
various time push to do other department work
 The warehouse not enough for putting products’ Moha, when the products reach
at peak point

The target respondents also sort out the factors that create the above mentioned challenges.
The causes were:
 Sometimes the company faced with shortage of soft drink bottle, thus the company
reduce the product
 Sometimes the company faced with shortage of raw materials
 Limited vehicles
 Limited number of staff members

4.2 Distributer’s response

Data presentation, analysis and interpretation of Distributors of Moha product response
Table 4.11, Background of the distributer
No Items Respondents
1 NO %
Sex

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  Male 21 84
 Female 4 16
Total 25 100
2 Age
 18-25 3 12
 26-30 5 20
 31-35 1 4
 36-40 1 4
 41-45 4 16
 Above 45 11 44
Total 25 100
3 Educational level
 Primary school completed 10 40
 Secondary school completed 7 28

 Preparatory school completed 4 16

 Certificate -
 Diploma 3 12
 Degree 1 4
 Above BA degree -
Total 25 100
Source: Own field survey, 2014
As indicated in the above table, from total respondents 21 (84%) of them were male
respondents and 4(16%) of them are female respondents. Thus, this result showed that
majority of the distributors of Moha products respondents were males and. As a result,
more of male distributors of Moha’s products were male.
In the item 2 of table 2, indicated that the distributors whose age found between 18-25
years covered 12 % of distributors’ respondents. While 5(20%) of them are within the age
26-30 years. 1 (4%) of respondents were between the age of 31-35 years. 1(4%) of
respondents who found within a range of 36-40 years .There were 4(16%) of respondents
on the age interval between 41-45 years.11 (44%) of respondents were at age interval
above 45 years. Because the majority of Moha’s Soft Drink Company distributors were
above 45 years old. Based on the above data the student’s researcher said that majority of
were above 45 years.

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As indicated in the item number 3 the level of respondents education stated 10(40%) of
distributors completed primary school, 7 (28%) had completed secondary school. 4 (16%)
were completed their preparatory level, no distributors had no certificate on their education
level. 3(12%) of respondents were diploma on their education level. 1(4%) of respondents
had degree holders and no distributors who had above BA degree in their educational level.
This showed majority of the distributors of Moha’s products completed their primary
school.

4.2.1 Distributer responses to close ended questions

Table 4.12: Year of Work Experience of Distributors of Moha’s Products
1 Year of work experience NO %
 1-3 2 8
 4-6 7 28
 7-9 11 44
 10 and above 10 5 20
Total 25 100
Source: Own field survey, 2014
Table 4.12 depicted the work experience of the respondents, 2(8%) of respondents had 1-3
year of work experience, 7 (28%) of respondents had 4-6 year of work experience.
11(44%) of respondents had work experience 7-9 years and the remaining 5(20%) of
respondents had work experience 10 and above 10 years.
Thus, the student researcher concluded from the basis of the above data more than half of
the respondents had work experience between 4-9 years of work experience.

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 Figure 2: The Distribution Strategy used by Moha’s Product Distributors to
Distribute Products

Distribution Strategy

16%

Intensive distribution Strategy

Extensive distribution strategy
52% Selective distrubutive strategy

32%

Source: Own field survey, 2014

The above figure indicated that the distribution strategy that practiced by Moha’s product
distributors to distribute Moha’s product, most of the respondents responded that the
distributors used Intensive type of distribution strategy to distribute its products and they
covered 13(52%) of the respondents. 8(32%) respondents replied that the distributors used
intensive type of distribution strategy to distribute its products and less in number of
respondents replied that the distributors used selective type of distribution strategy to
distribute its products.

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 Thus, the student researcher concluded from the above data the distributors used mainly to
distribute its product Intensive type of distribution strategy to distribute Moha’s products for
its customers.

Table 4.13: The Importance of Moha’s Product Distributors Distribution Strategy to

Increase Sales Volume of Moha’s Product
Item Response
Very High Medium Low Very low
high
N % NO % N % N % NO %
O O O
1. What is the level of your 11 44 10 40 4 16 2 8 - -
organization distribution
strategy for your
organizational products
of sale increment?
Source: own field survey, 2014
Table 4.13 which explained the level of Moha’s product distributors distribution strategy to
increase sales volume; most of the respondents responded that there was very high support of the
distributors strategy to increase the sales volume and these respondents covered11 (44%) of the
sample respondents. The second in number and percentage of respondents responded that there
was high support of the distributors distribution strategy for increasing the sales volume and
these respondents covered 10(40%) of the total respondents. The third more of respondents
responded the distribution strategy of the distributors’ medium support to increase the sales
volume of Moha’s products. The remaining 2(8%) of respondents replied that the distributors
distribution strategy had low support for increased sales volume.
The student researcher concluded from the above data, the distribution strategy of the distributors
helped to increase the sales volume.

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 Table 4.14: The Effectiveness of the Distributors Distribution strategy
S.No Item Number of Percentage (%)
Respondents
Yes No Yes No
1 Does the strategy that 20 5 80% 20%
you are used for
distributing Moha’s
product effective?
Source: Own survey, 2014
The above table which showed the magnitude of the effectiveness of the distributors
distribution strategy ; most of the respondents responded ‘’yes’’ the distributors distribution
strategy was effective and the number of respondents who replied this equal to 21 and in
percentage (80%) of the total respondents; while 5(20%) respondents responded that the
distributors distribution strategy was not effective.
As a result of the above data the student researcher concluded that the distribution strategy
used by the distributors was effective.

Table 4.15: Evaluate the Effectiveness of the Distributors Distribution Strategy

Item Response
Very High Medium Low Very low
high
N % NO % N % N % NO %
O O O
2. Specify the degree of the 8 40 7 35 4 20 1 5 - -
effectiveness of the

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 distributing strategy?

Source: Own field survey, 2014

Table 4.15 which explained the level of the effectiveness of the distributors distribution
strategy; most of the respondents responded that the distribution strategy of the distributors
was very high and these respondents covered 8 (40%) of the sample respondents. The second
in number and percentage of respondents responded that the distributors distribution strategy
was high effectiveness and these respondents covered 7(35%) of the total respondents. The
third more of respondents responded the distribution strategy of the distributors had medium
effectiveness of and these respondents constituted 4(20%) of respondents. The remaining
1(5%) of respondents replied that the distributors distribution strategy was low.
The student researcher concluded from the above data, the effectiveness of the distributors’
strategy was at good level.

Table 4.16: The Amount of Distributors Sales in Day Moha’s Product

Item Response
Very High Medium Low Very low
high
N % NO % N % N % NO %
O O O
1. How do you rate Moha’s 4 16 6 24 4 16 5 20 1 4
product in daily basis
distributing by yourself?

Source: own field survey, 2014

Table 4.16 which depicted the amount of distributors sales in day Moha’s products; most of
the respondents responded that the distributors sales high amount of Moha’s product in day
and these respondents covered6 (24%) of the sample respondents of the distributors. The
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second in number and percentage of respondents responded Moha’s distributors sales in day
distribute low level of Moha’s products in day and these respondents covered 5(20%) of the
respondents. The third more of respondents responded that the distributors distribute very low
and medium amount of sales volume in day and these respondents covered 4(16%) of
respondents at each respectively, basis. The fewest in number and percentage of respondents
responded that the distributors of Moha’s products sales very low amount of Moha’s product
in day and they covered 1(4%) of the respondents.
Based on the above data, the student researcher concluded that the distributors distribute
Moha’s product in very high amount in daily basis.

Table 4.17: The Magnitude of Moha’s product Distributors face Problem while Distributing
Moha’s Product
S.No Item Response %
Yes No Yes No
1 What kinds of Problem are you facing 22 3 88 12
while you are distributing Moha’s
products?
Source: Own field survey, 2014
Table 4.17 explained the magnitude of Moha’s product distributors face problem while
distributing Moha’s products; 22(88%) respondents responded that ‘’yes’’ the distributors face
problem while they were distributing Moha’s product; while 3(12%) of respondents replied that the
distributors face ‘’No’’ problem while they were delivering Moha’s products to customers.
Therefore, the student researcher concluded that the distributors of Moha’s faced problem
while delivering Moha’s products for customers.

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 Table 4.18: The Magnitude of Problem the distributors faced related to Distributing Moha’s
product
Item Response
Very High Medium Low Very low
high
N % NO % N % N % NO %
O O O
1. How it looks like the 4 16 6 24 4 16 5 20 1 4
problem you were
facing while distributing
Moha’s product related
to transport?
?
Source: own field survey, 2014
Table 4.18 which explained the magnitude of problem the distributors faced while they were
distributing Moha’s product; most of the respondents responded that the distributors faced
high degree of transport problem while they were distributing Moha’s products and these
respondents covered6 (24%) of the sample respondents of the distributors. The second in
number and percentage of respondents responded the distributors faced low transport problem
while they were delivering Moha’s products and these respondents covered 5(20%) of the
respondents. The third more of respondents responded that the distributors faced very high
and medium transport problem while they were distributing Moha’s product and these
respondents covered 4(16%) of respondents at each respectively, basis. The fewest in number
and percentage of respondents responded that the distributors of Moha’s products faced very
low transport problem while the distributor distribute Moha’s product and covered 1(4%) of
the respondents.
Based on the above data, the student researcher concluded that the distributors faced high
transport problem while distribute the Moha’s products.

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 Figure 3: Types Problem the Distributor s of Moha’s Product Face

Problem of the Distributors

16% 16% Lack of Information

Limited warehouse
Price disagreement
with customers
24% Not well developed
32% Infrastructure
12% Low level of vehicles

Source: Own field survey, 2014

Figure 3 which depicted the problem of Moha’s product distributors face while they distributing
Moha’s products; most of target respondents replied that the distributors faced not well developed
infrastructure and they covered 8(32%) of the total respondents. The second more in number and
percentage of respondents faced problem related to warehouse and these respondents covered 6(24%)
of target respondents. 4(16%) of faced by the two types of problem thus were low level of vehicles
and lack of information and the fewest number and percentage of respondents faced problem related to
price disagreement with customers and they covered 3(12%) of the distributors sample respondents.

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 CHAPTER FIVE
5. Summary conclusion and recommendation
5.1 Summary of major findings
 The company’s overall marketing distribution strategy is observed by the
researchers on this study. Even if the company is very old and guided by old
principles it can satisfy its customer partially this is the strong side of the
company.
 In order to overcome its problems and utilize the existing opportunities the
company expect to develop which bring it to between growth and expansion.
 After assessing the marketing distribution strategy of the company, the
researchers put the following analysis results:
 The company supplies product like pepsi, mirinda, 7-up respectively. Most of the
respondents is between 32-38 age and the majorities are male. In addition to these
more than half respondents are first degree holders.
 The company has external problems, life lack of advanced technology and
shortage of public transportation and internal problems.
 The product ability to meet demand of its customers is high and the demand of
customers towards MOHA’s product also high.
 The company’s use fixed pricing system for each product type.
 Most of the time the company’s uses own transportation system to distribute its
product to the final customers.
 The company’s conduct research and take auditing and evaluation system to know
the effectiveness and efficiency of their marketing distribution strategy.
Continuous assessment of, product and distribution also used by the company to solve
problems.
 The company’s internal problems like shortage of own transportation SVC,
existence of important unsatisfied customers etc.

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 5.2 Conclusion
 MOHA Soft Drink Share Company is one of the best well known soft Drink
Company in Ethiopia that produce Pepsi, Miranda, 7-up and Miranda Tonic for
the supply of the public.
 The major goal of the company is increasing its profit by supplying enough
quantity for its target market, and to become the leader soft drink company by
setting reasonable price for each type of its product.
 According to the management, MOHA has over 60% of the market share and
therefore appears to be the leading soft drink supplier at present.
 The company could not satisfy country’s demand that resulted from various
problems like less technological advancement for production of the product and
spare parts that are necessary for the company activity, the existence of
unsatisfied employees this leads to expand carelessness in the work area and this
also leads to produce less efficient products. Finally the shortage of public and
own transportation SVC system affected the company’s marketing strategy by
lengthening the reach time of the product to the customers.
 Most of the respondents are between 32-38 age whose majority’s are male and
first degree holders.
The company has its own marketing strategy which bases on price, product, promotion
and its distribution system.

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 5.3 Recommendations
 Identification of the prevailing problems and indicating the available
opportunities for any producing factor is among the essential things that enable
the company effective on attainment of its marketing strategy.
 Depending on the above findings the researchers would like to forward the
following recommendations.
 Since MOHA Soft Drink Share Company owned by share and that was
established to generate profit for itself the company’s should work cooperatively
with government and other related company’s like beer company in order to get
experience and exchange information about the marketing distribution strategy.
 It makes company more effective and get recognition of the company gives extra
SVC and incentives for its customers.
 Since the current marketing strategy of the company guided by old marketing
principles, it should be adjust or revised to make better and flexible based on
dynamic world.
The existence of old model machines in the company affects its production so the
company should buy new model machines to replace the old one.
Factors that create the above mentioned challenges. The causes were:
 Sometimes the company faced with shortage of soft drink bottle, thus the company
reduce the product
 Sometimes the company faced with shortage of raw materials
 Limited vehicles

The existence of unsatisfied employees in the company is the major problems of the
company, so we recommend satisfying its employees by increasing its salary and gives
incentives.
Shortage of own transportation SVC also another headache for the company so the
company should buy additional transportation cars.

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 The company should assess the internal and external environment effectively to assure
the success of their marketing strategy. The company should conduct research to know
the effectiveness and efficiency of the marketing strategy better than now.

References
1. Kotler Philip (1997) Marketing management 9th ed. Prentice hall of Indian private
limited
2. Kotler, philip and Garry Arms (2004) principles of marketing 10th ed. Will weli.
3. Michale J. Baker(1996) Marketingh an Introduction text Bata press Kotler Philip
(1997) marketing management 9th ed. Prentice hall of Indian private limited.
4. Kotler Philip and Garrry Arms (2004) Principles of markeing, 10thed. Will weli.
5.Michael J.Baker (1996) marketing an introductory text Bata press
6.http://www.product strategy. Net

7. http://www.tkk.com
8. http://www. All travess. Com
9. http://www. Lean marketing .net
10. http://www. South invest. gov.et
11. (http://www 1000 ventrures.com (business. vide/marketing strategy)
12.(http://wwwlask/com)
13. (http://www.altravels.com)
14. (http://www.casterahost.com)
15. (http://www.learn marketing.net)
16. (http://www.wikepeida.org)

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 Appendix I
ADAMA SCIENCE AND TECHNOLOGY UNIVERSITY
SCHOOL OF BUSINESS AND ECONOMICS
DEPARTMENT OF MARKETING MANAGEMENT
Questionnaire to be filled by Employees of MOHA Soft Drink Share Company
Dear respondents, this questionnaire is prepared for collect data in the title of
Assessment of Distribution Strategy in case of MOHA soft drink Share Company case
study: Addis Ababa Nifas Silk Branch for partial fulfillment of BA degree in marketing
management.
Therefore, the student researcher strongly requests you to respond the questionnaire in
appropriately because your response has great importance for the creditability and
validity of the study. As a result of this, the student researcher hope that you will give
reliable and relevance information for substantiate the data.
Thank you in advance for your cooperation!
 Don’t need to write your name
 Just mark sign or write your answer on the provided space

Part One: Personal Information

1. Sex
Male Female
2. Age
18-25 26-30 31-35 36-40 41- 45
Above 45

3. Educational background: primary school completed secondary school

completed
Preparatory school completed certificate Diploma
Bachelor degree holder Masters and above

Part Two: Main Research Questions

1.Job position : General Manager marketing manager marketing officer
Others, ________________________________________________________________
2. Year of work experience : 1-3 years 4-6 years 7-9 years 10
and above 10 years
3.
4. What type of distribution strategy is practiced by MOHA Soft Drink Company to
distribute its product?
Intensive distribution strategy extensive distribution strategy selective
distribution strategy
5. What is the level of your organization distribution strategy for your organizational
products of sales increment?
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Very high high Medium low very low
6. Is the strategy used by Moha’s Soft drink to distribute its products is effective?

Yes No
7. If your answer for question number 5 is ‘’ yes’’, how do you rate the effectiveness
of the strategy?

Very high high Medium low very low

8. What type of distribution strategy used by Moha Soft Drink Company to
distribute its products? Direct channel Indirect Channel
9. How do you evaluate the distribution cost of Moha’s soft drink to distribute its
products?

Very high high Medium low very low

10. As compared to other soft drink company products, how much Moha sell its
products to customers in daily?

Very high high Medium low very low

11. Does Moha face problem while distributing its products?

Yes No
12. If your answer for question number 10 is ‘’ yes’’, what kind of problems have
faced while distributing its products?

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
___
13. What causes create problem for Moha not effectively distribute its products?

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
__________________

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 Appendix II
ADAMA SCIENCE AND TECHNOLOGY UNIVERSITY
SCHOOL OF BUSINESS AND ECONOMICS
DEPARTMENT OF MARKETING MANAGEMENT
Questionnaire to be filled by Distributors of Moha Soft Drink products
Dear respondents, this questionnaire is prepared for collect data in the title of Assessment of
Distribution Strategy in case of MOHA soft drink Share Company case study: Addis Ababa
Nifas Silk Branch for partial fulfillment of BA degree in marketing management.
Therefore, the student researcher strongly requests you to respond the questionnaire in
appropriately because your response has great importance for the creditability and validity of
the study. As a result of this, the student researcher hope that you will give reliable and
relevance information for substantiate the data.
Thank you in advance for your cooperation!
 Don’t need to write your name
 Just mark sign or write your answer on the provided space

Part one: Personal Information

1. Sex
Male Female
2. Age
18-25 26-30 31-35 36-40 41- 45 Above 45

3. Educational background: primary school completed secondary school completed

Preparatory school completed certificate Diploma
Bachelor and above BA degree
4. Year of work Experience: 1-3 years 4-6 years 7-9 years

10 and above 10 years

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Part Two: Main Research Questions
1.What type of distribution strategy ` is used to distribute MOHA products?

Intensive distribution Strategy Exclusive distribution Strategy

Selective distribution Strategy
2.What is the level of your organization distribution strategy for your organizational
products of sale increment?

Very high high Medium low very low

3. Does the strategy that you are used for distributing Moha’s product effective?

Yes No
4. If your answer for question number 4 is ‘’ yes’’, specify the degree of the
effectiveness of the distributing strategy?

Very high high Medium low very low

5. How do you rate Moha’s product in daily basis distributing by yourself?

Very high high Medium low very low

6. What kind of problems are you faced while you are distributing Moha’s products?

__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________
7. What causes are create problem on you not effectively distribute moha’s
products?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________

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