The Fast Moving Consumer Goods (FMCG) industry in South Africa is now more than ever, facing a new era with strong competition and a need for innovative and sustainable distribution strategies to remain competitive in the market. Organisations are continuously searching for ways to increase their competitiveness and sustainability as markets change and develop, so do the strategies used to enter them. Organisations must therefore be able to choose the most effective approach to enter markets in order to remain competitive. Recent approaches require organisations to identify innovative distribution methods to meet consumer needs due to a considerable increase in competition, which makes it very difficult for organisations to differentiate their products solely on the basis of cost or quality. The research problem addressed in this study comprised an assessment of factors affecting distribution models from an FMCG perspective. This necessitated a comprehensive literature review of the various definitions, trends impacting on distribution as well as investigating the status relating to distribution models. Strategies and attributes of successful distribution models were evaluated to determine an effective distribution model to assist the organisation in challenging competition. The researcher found that a significant number of authors have suggested the following key attributes for a successful distribution model, namely operational excellence, performance management, strategic partnership, technology drivers, and relationship marketing. An empirical study was conducted after the appropriate measuring instrument was developed. The purpose of the measuring instrument was to validate the literature findings, identify the rank importance of the identified attributes and to evaluate the extent to which these factors are provided for in the organisation, based on the points above. The present study assessed innovation at Coca-Cola Fortune (Pty) Ltd., a local FMCG firm in an effort to develop a distribution model that would be successful for the company. The study comprised a sample of 40 Official Coca-Cola Distributors which form part of the distribution model of Coca-Cola Fortune (Pty) Ltd. Questionnaires were sent to each of the 40 Official Coca-Cola Distributors and a response rate of 100 percent was obtained. The major findings indicated that the respondents agreed with the literature in respect of the important attributes of a successful distribution model. Overall the majority of the respondents identified the distribution model between Coca-Cola Fortune and the Official Coca-Cola Distributors as a successful distribution model. The literature findings together with the empirical study findings resulted in the development of a strategic model to maintain a successful and competitive distribution model. The current investigation highlighted the overall perception of Coca-Cola Fortune’s distribution model and the importance of having a successful model. To sustain this distribution model the organisation must maintain the key attributes of a successful distribution model as identified in the literature to ensure competitiveness, sustainability and meeting changing consumer demands.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:8907 |
| Date | January 2013 |
| Creators | Reshalin, Kumesh Sivaram Jay |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | xi, 118 pages, pdf |
| Rights | Nelson Mandela Metropolitan University |
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