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Assessing The Distribution Strategies and Practices of East
Assessing The Distribution Strategies and Practices of East
Assessing The Distribution Strategies and Practices of East
The purpose of the study is to assess the distribution strategies and practices
of an organization which can help to increase the products accessibility to
customers.
The study also sought the explanation of what work is performed by
marketing channel, channel design and its determinant, and physical
distributions and its functions.
The weakness and strength of the distribution strategy of the organization
was also studied.
Methods of handling the study
A zero level channel also called direct marketing channel is the shortest
channel which entails selling product and services direct to the final
consumer
In a one level channel the products move from the producer through the
retailer before it is reaching the final consumer
In a two level channel the product moves from the producer to the wholesaler
who in turn sells the products to the retailer who finally transfers to the final
consumer
A three level channel comprises of three middlemen and although it is
occasionally used in distributing locally produced and consumed products;
these middlemen comprise of the agent, wholesaler and end users
Background of the EALBI
East Africa Lion brands manufacturing S.C manufacturing facilities are found
at Dukem Industrial park
The EALBI has implemented the ISO 9001:2008 quality management system
and continues to invest in modern technology for increased manufacturing
capacity and efficiency
The products it produces are
food
Home care(soap)
Personal care( lotion)
Factors affecting the distribution
strategies
Political factor
Economic factor
Social factor
Legal factor
Technological factors
Environmental factors
Cont..
Internal
Cash , Sales Volume and Sales Increase
None Skill Sales Force
Communication gap b/n Seller and Producer
Weakness sales strategy
Team less Sales
Influential and Capable Sales team
Material sourced from local market with high price increment due to Forex scarcity
Low capacity utilization.
Forex unavailability
Cont..
External
Unfair Competitors selling price Discounts
Only agent Sales with Currently Selling
Agent & Bulk buyers more than 100th not coming. No D2D sales like Competitors
Un branding sales activity/Strategy/
Careless to sell for who need push products by variety
Conclusion
The Company should always consider the factors available to establish and
assess the proper channel of distribution and be able to formulate strategies
of curbing and tackling this scenario
The company needs to increase its promotion. By doing this it gives awareness
to the customers
The company needs to use social media as one of distributing channels. Social
media can be used to influence demand