FACTORS AFFECTING DISTRIBUTION PERFORMANCE OF FAST MOVING GOODS: THE CASE OF EAST AFRICA BOTTLING SHARE COMPANY ON SELECTED CITIES IN ADDIS ABABA.

Abstract

Even though this day direct marketing system grows, most producers still do not sell their products directly to final users. Between them and consumers lie marketing intermediaries which bridges the gap between user and producer, in connecting customers and products. The growth and the increasing importance of distribution channel in recent years and having efficiently performing distribution channels can be considered a competitive advantage for manufacturers. Therefore evaluating performance and efficiency of distribution channels and problems that are or might exist with this regard is very essential. Only limited numbers of studies in Ethiopia are concerned with investigating the performance of distribution channels of FMGs. This study investigates the factors affecting distribution performance of fast moving goods a case of east Africa bottling Share Company. Four determinants: competence and experience, financial and facility capacity, availability and delivery of product and selling capacity have been kept in mind while doing this research. The study used quantitative Methods and descriptive research design techniques in which 144 respondents from Addis Ababa were included. In this study structured questionnaire for key account customers, Sales representative, Area sale manager and Distributors identified through descriptive and explanatory research approach was used. The researcher used Pearson’s correlation and regression analysis to analyze the data. The result of the study shows that all four variables; competence and experience, financial and facility capacity, availability and delivery of product and selling capacity has a significant influence on distribution performance of the firm with different degree. The study suggests that focusing on these distribution performance variables could further reduce the probability of default while distribution performance of fast moving goods or coca cola products.