ASSESSMENT OF DISTRIBUTION MANAGEMENT PRACTICES OF BEER PRODUCTS: THE CASES OF META ABO BREWERY SC

Abstract

The study pursued to assess the distribution management practice of beer product in the case of Meta brewery. The study was guided by the following specific objectives: To show in what way and the extent in which, distribution channel affect the sales volume of the company, and to point out the significant factors influencing the distribution channel system of Meta Brewery? Moreover, this study will also try to provide basis for anticipated decision-making process by an analyzing and evaluating what are the mandatory guidelines and standards which must be in place at any distributor to deliver sales growth and to have good physical availability? What are the governance of the business and its relationship with manufacturers? And what kind of structure and capability do a distributors need [ staff, assets, processes and s training curriculum] in conjunction with manufacturers? A company wants a distribution channel that not only meets customers’ needs but also provides an edge on competition, and for the purpose of this study, an organized approach is required which comprises of four Sequence decisions: specifying the role of distribution, selecting the type of channel, determining intensity of distribution and choosing specific channel members - that is selecting specific firms to distribute the product. A distribution channel consists of the set of people and firms involved in the transfer of title to a product as the product moves from producer to ultimate consumer or business user. Diverse distribution channels exist today, The study focused on Meta abo sales, distribution and customer service team staff and its exclusive distributors, form Addis Ababa and up county markets. The study adopted a descriptive survey design. Purposive judgmental proportion technique was carried out to arrive at a representative sample for the study and 112 willing respondents were found to participate in the study and taken as a target for the sample size. The researcher used primary source of data which was obtained through a semi-structured questionnaire. The findings indicate that the effective distribution management practice is very important for the companies and distributors due to the effect and the impact on sales volume of the company The distribution management practice of Meta Abo is done by independent function called distribution management team with the help of 7 propels which they manage different regional markets classified based on their geography and strategic importance. It’s evident that the company applied mixed use of different distribution strategy. From total Meta Abo exclusive distributors most of them are categorized as Gold and Silver standard distributors whereas the rest are bronze and below minimum standard respectively. Though Meta Abo Brewery need to improve or take action to upgrade their standard to gold and silver to increase its sales performance and distribution coverage. Furthermore; in terms of Gold and Silver distributors number up county has better score than Addis Ababa market. But still upcountry also has significant number of bronze and below minimum standard distributors. Meta Abo brewery distributors didn’t have well organized organizational structure as per the company standard, they are less capitalized and equipped with IT, stock management and transaction system. The result further indicated that the company had a procedure of tracking and analyzing the words of its consumers. The research has opened up the venue for future studies to investigating the effect of distributional methods on sales of companies in the context of emerging economies like Ethiopia.