Determinants on Distribution of Fast-Moving Consumer Goods in Addis Ababa: The Case of Locally Produced Edible Oil
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Date
2022-05-20
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A.A.U
Abstract
Any organization to be effective there should be a well distribution management system to convey final products from the manufacturer to the consumers. The main objective of this study is to examine the determinants on distribution performance of locally produced edible oil. The study focused on determinants on distribution of fast-moving consumer goods in Addis Ababa for the case of locally produced edible oil which is Tena Oil, product of Health Care Food Manufacturer S.C at the firm of food. A quantitative approach was employed to come across the objectives of the study and to go through all research questions and hypothesis. A total of sixty-seven well-structured close ended questioners were distributed to different professionals and fifty-seven were returned which is 85.1%. After checking the reliability and validity of the primary data it was further analyzed by statistical package for social science (SPSS). Product quality in the distribution system highly affects the distribution of locally produced edible oil in Addis Ababa. The impact of locally produced edible oil quality on the distribution system is the main determinant factor. The product price and end users need is one of the determinant factors in the distribution of locally produced edible oil in Addis Ababa. Under this the Price of the local produced edible oil strongly affecting the performance of the distribution. Influence of product promotion on selling performance have a great impact on distribution of locally produced edible oil in Addis Ababa. Among entities promotion increase the visibility of the product and it is strongly affecting distribution performance. The availability of product influence on companies sells target is the main impact on distribution of locally produced edible oil in Addis Ababa. From different factors product production Consistency strongly affect distribution performance. Among the main distribution determinants; distributor’s experience is the first ranked determinant factor in the distribution of locally produced edible oil scoring a mean value of 3.992. Distributor’s efficiency in the market and product promotion of locally produced edible oil in Addis Ababa become second and third having a mean value of 3.885 and 3.875 respectively. A good warehouse management has a big influence to increase the efficiency distribution. And finally, and distributorsrecommendations are also forwarded for customers accordingly.