Assessment of the effectiveness of channels of distribution models in the sales performance of an organization: The case of Coca-Cola Morogoro region.

Abstract

The study examined Effectiveness of channels of distribution models in the Sales performance of an organization, taking the case of Coca-Cola Morogoro Region. Specifically the study assessed, the extent into which Direct distribution channel affects sales performance, also, to assess the extent into which Indirect distribution channel affects sales performance, additionally, to asses distribution channels being used by competitors with that of Coca-Cola in Morogoro region and lastly to asses distribution channel adopted by Coca-Cola Kwanza Ltd both direct and indirect Morogoro Depot and Control of the retail outlets. This case study research had customers and employees as unit of analysis. It had a sample of 90 respondents, whereby primary and secondary data were collected through the use of interviews, questionnaires, and documentary review. Data were analysed through Statistical Package of Social Science. Findings revealed that distribution channel adopted by Coca-Cola ensures availability of her products, reduce response time and makes information available to her customer in aspect it facilitates positive relationship with her customers and agents. It was also found out that selection of agents/Distributors was based on financial capability, size of firm among others. It was concluded that distribution channel plays important role with respect to the soft drink industry because if products are not available on time consumer will switch on to other brands and the company will lose its market share and hence an effective distribution channel is an important aspect of soft drink industry. Coca-Cola Company kwanza have enjoyed its benefits like easing processes, increasing the supply chain awareness, reducing total costs on distribution of her products. Based on the findings, it was recommended that Coca-Cola Company’s management should be in position to continuously weigh the benefits that accrue from application of distribution channel. Coca-Cola kwanza should ensure strict adherence to the company’s policies and guideline regarding the use distribution channel. Coca-Cola Company should ensure aggressive Marketing, regular visit to distribution