M.Com. (Marketing Management) / The majority of resources in the distribution channels for the perishable market in South Africa, have mostly been directed towards the formal sector. Since macro statistics showed that the informal sector's growth rate is 5 % to the 0,5 % per annum for the formal sector, companies have started to allocate resources towards distribution channels in the informal sector. Distribution channels in the informal sector are mainly characterised by two factors: Firstly a lack of knowledge concerning distribution channel management and strategies by the perishable market and in particular the organisation that was selected as focus, namely Sacca, and secondly, a lack of workable systems and infrastructure. The purpose of this study is, firstly to determine the level of distribution channel management in the perishable market of Southern Africa. This will enable organisations to formulate a framework for a distribution channel strategy to develop the informal sector. Secondly, to determine the potential of such a distribution channel into the informal sector. The methodology used to meet the above mentioned objectives consisted of a literature survey that defined the study and set out the current state of knowledge on the subject. Secondly field visits were conducted with business leaders from Sacca and with leaders in the field of informal sector studies to collect specific information on selected issues. Personal observation followed with a comparative analysis of Sacca in the areas of channel management and strategies were carried out. The major findings of the study are, firstly that traditional channel management is still being practised by the majority of organisations. Organisations are not correctly positioned to create the necessary structure whereof responsibility is a part. Secondly trends can be identify to make it easier for the organisation to enter the market. Thirdly organisations have limited knowledge about the informal sector's structure, opportunities and threats. Lastly that the importance of a distribution channel strategy framework can never be overestimated.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:3706 |
| Date | 10 February 2014 |
| Creators | Lübbe, Hendrikus |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Thesis |
| Rights | University of Johannesburg |
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