AN ASSESSMENT OF THE DRAFT BEER DISTRIBUTION SYSTEM IN LIGHT OF CUSTOMER SATISFACTION: THE CASE OF HEINEKEN BREWERY SHARE COMPANY IN ADDIS ABABA

Abstract

The objective of the study was to assess the distribution system of draft beer in light of customer satisfaction in case of Heineken Brewery Share Company. In the study the researcher assessed: the existing distribution system, standards (selection criteria) of distributers (agents), performance evaluation and the support provision by the company, challenges in management of distribution system and the degree of outlet customers satisfaction. The research approach followed was mixed approach with a descriptive design. The researcher used convenient sampling technique to select samples from outlet customers. From the company, the draft development manager and all draft beer specialists were included in the study. From 56 sales representatives, 26 were selected using simple random sampling. In addition, from distributers: all agents and from a total of 2416 outlets customers, 343 samples were taken base on convenience sampling. The researcher has used questionnaire and interview for DBDM and questionnaire for DBS, SR, agent and outlet customers. Data were analyzed using frequency, percentage, mean and standard deviation. Results of the study indicated that distribution management system was lined with specializing on production and distributing through intermediary called “agent”. The agent selection was not based on the stated selection criteria, performance evaluation method were based on number of outlet visited in a day for agents and hectoliter volume for customer outlets, and outlet customers were not satisfied in the existing distribution system. From the study the researcher found that distribution system should have to be managed according to company main objective but it should be lined with wining a market share. Selection of agents has its own influence on customer satisfaction. Agent selection need to be revised and it should be based on minimum requirement of the standard criteria. In addition, performance evaluation needs to add daily on time delivery performance to win a market share. Hence it is recommended that HBSC need to follow-up its Outlet customers closely to satisfy and to create superior value for final consumers, because, they are a final way to get loyal product consumer.