Factors affecting distribution of nestle products in Kenya
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Date
2012-07-02
Authors
Karanja, Chege Stanley
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Abstract
This report is a result of an academic research titled factors affecting distribution of Nestle products in Kenya. The objectives of the study were to investigate the distributors' operations in their assigned territories; establish Nestle's support to the distribution of its products and find out challenges encountered in distributing Nestle's products in Kenya. To answer research questions, a descriptive research design was used and the total number of Nestle's distributors was targeted. Participants were interviewed through a one to one personal interview administered questionnaire. A semi structured interview with one of Nestle managers (represented by the head of sales) was conducted in order to ensure the reliability of the information to be provided by respondents. Data was analyzed quantitatively using Statistical Package for Social Sciences (SPSS). The results of the study shows that ordering, handling and shipping, and storage are some of the activities that are very well performed by Nestle's distributors; nevertheless they do not penetrate the market to the maximum. Secondly, it was discovered that guidance and training on WHO code relating to marketing of breastmilk substitutes are the most kind of support that Nestle gives to its distributors. As far as challenges are concerned, internal and external collaboration, unclear roles and rights, incompatibility of goals and logistics performance management were discovered to the most challenges that are associated with distribution of Nestle's products in Kenya. Finally, communication among channel members; logistics; long term commitment; inadequate of integrated support system; and promotional activities are the main factors that were discovered to hinder the effectiveness of distributors' activities and overall distribution of Nestle's
products in Kenya. It was recommended that Nestle should develop clarity and communication in its distribution strategy, yet being keen to determine the channel power and evaluate the position of the wholesale channel.