An Integrated Model of Factors Affecting Distribution Channel Performance for Companies Manufacturing and Importing Fast-Moving Consumer Goods (FMCG) in Iran

Document Type : Research Paper

Authors

1 Associate Professor, Department of Management and Accounting

2 Faculty member/Allameh Tabatabai University

3 تهران، خیابان ولی عصر، بالاتر از میدان ونک، کوچه نگار، پلاک ۳۸

Abstract

The present study aimed to explore Factors affecting development a distribution channel performance for companies manufacturing and importing fast moving consumer goods in Iran. During the model development phase, the literature on the distribution channel of the fast-moving consumer goods was first reviewed in depth, and then there was a coding process to extract concepts and themes. Since the model was supposed to be developed for Iran, after extracting themes from the relevant literature, an open-ended interview was carried out with 19 marketing, sales and logistics experts to complete and confirm the list of extracted themes. After answering the questions, the coding process was undertaken to extract the relevant factors from the responses, each of which was then assigned to a theme. The identified themes are as follows: (1) Organizational considerations, (2) core considerations of distribution channel, (3) channel design and maintenance strategy, (4) macro environmental considerations, (5) micro environment considerations, and (6) performance outcomes. Finally, the conceptual model was plotted. To have a quantitative assessment of the model, structural equation modeling was used. To this end, a questionnaire encompassing 81 items was developed and submitted to some marketing and supply chain experts via Press Line software, e-mail, and social networks, 67 of which were returned. According to the findings, there was a significant relationship between organizational considerations, core considerations of distribution channel, channel design and maintenance strategy, macro environment considerations, and micro environment considerations with performance outcomes.

Keywords

References

البرز, گ. م. ت. ا. (1388). گزارش طرح تحقیقاتی بررسی وضعیت نظام توزیع در کشور و چگونگی استقرار شبکه نوین تهیه و توزیع کالا توسط بخش تعاون و مرکز بازاریابی تعاون.
حاتمی, ک., و خیری, ب. (1396). مدل سازی عوامل موثر در انتخاب کانال توزیع توسط شرکت. مطالعات مدیریت و کارآفرینی, 20(3), 128-136.
حقیقی, م. (1391). مدیریت کانال های توزیع و فروش ب تاکید بر پخش مویرگی- نگرشی کاربردی (ویرایش اول). تهران: مهربان نشر.
Aithal, R. K., & Maurya, H. (2018). Distribution Challenges in Emerging Markets: Evaluating Alternate Distribution Strategies for FMCG Firms in Rural India. In Strategic Marketing Issues in Emerging Markets (pp. 51-60): Springer.
Aličić, A., & Duman, T. (2013). Comparing the efficiency of distribution methods in home appliance industry. European Journal of Business and Social Sciences, 2(5), 56-75.
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing: Pearson Australia.
Balmer, J. M., McDonald, M. H., de Chernatony, L., & Harris, F. (2001). Corporate marketing and service brands‐Moving beyond the fast‐moving consumer goods model. European Journal of Marketing.
Bilgen, B., & Günther, H.-O. (2010). Integrated production and distribution planning in the fast moving consumer goods industry: a block planning application. OR spectrum, 32(4), 927-955.
Carter, C. R., & Rogers, D. S. (2008). A framework of sustainable supply chain management: moving toward new theory. International Journal of Physical Distribution & Logistics Management, 38(5), 360-387.
Coughlan, A. T., Anderson, E., Stern, L. W., & El-Ansary, A. (2006). Marketing channels.
Czubała, A. (2006). Determinanty kanałów dystrybucji usług. Zeszyty Naukowe/Akademia Ekonomiczna w Krakowie(720), 173-181.
Gaski, J. F. (1988). Distribution channels: a validation study. International Journal of Physical Distribution & Materials Management, 18(5), 16-33.
Górska-Warsewicz, H., Świątkowska, M., & Krajewski, K. (2013). Marketing żywności: Oficyna a Wolters Kluwer business.
Gudonavičienė, R., & Alijošienė, R. (2008). The specific features of marketing channel design. Inžinerinė ekonomika(1), 74-83.
Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM): Sage Publications.
Heggde, G. S. (2008). Channel design for effective bi-directional relations in FMCG sector. Paper presented at the CONFERENCE READINGS BOOK.
Hill, A. V. (2012). The encyclopedia of operations management: a field manual and glossary of operations management terms and concepts: FT Press.
Hugos, M. H., & Thomas, C. (2005). Supply Chain Management in the retail industry: Wiley.
Ilesanmi, O. (2011). The Significance of Distribution Channel and Product Life Cycle in the Management of an Organization the Nigerian Experience. Global Journal of Management And Business Research, 11(10).
Khanna, T., Palepu, K. G., & Sinha, J. (2005). Strategies that fit emerging markets. Harvard business review, 83(6), 4-19.
Kotler, P. (2016). Principles of marketing 16th ed.
Kotler, P., & Armstrong, G. (2006). Principles of Marketing: 11E: Prentice Hall Video Gallery.
Kotler, P., & Armstrong, G. (2010). Principles of marketing: Pearson education.
Kotler, P., & Keller, K. L. (2008). Marketing Management [Marketing Management]. Publisher" Himdzhest", Ukraine.
Mallen, B. (1996). Selecting channels of distribution: a multi-stage process. International Journal of Physical Distribution & Logistics Management, 26(5), 5-22.
McVey, P. (1960). Are channels of distribution what the textbooks say? Journal of Marketing, 24(3), 61-65.
Meiyani, E., & Putra, A. (2019). The Relationship Between Islamic Leadership on Employee Engagement Distribution in FMCG Industry: Anthropology Business Review. 유통과학연구, 17(5), 19-28.
Mick, D. G. (2007). The end (s) of marketing and the neglect of moral responsibility by the American Marketing Association. Journal of Public Policy & Marketing, 26(2), 289-292.
Miracle, G. E. (1965). Product characteristics and marketing strategy. Journal of Marketing, 29(1), 18-24.
Mittal, S., & Swami, S. (2004). What factors influence pioneering advantage of companies? Vikalpa, 29(3), 15-34.
Munir Dad, A. (2012). Interactive communication channels and their appropriateness for the FMCG business. International Journal of Management and Business Research, 2(3), 253-269.
Palamountain, J. C. (1955). The politics of distribution: Harvard University Press.
Rosenberg, L. J. (1974). A new approach to distribution conflict management. Business horizons, 17(5), 67-74.
Rosenbloom, B. (2007). Multi-channel strategy in business-to-business markets: prospects and problems. Industrial Marketing Management, 36(1), 4-9.
Rosenbloom, B. (2012). Marketing channels: Cengage Learning.
Sambrani, V., & Pol, N. (2016). Supply Chain Management–Impact of Distributor ROI Towards Sales Enhancement in FMCG Sector. Available at SSRN 2770481.
Sharifi, S., Nesabi, H., & Yavarzadeh, Y. (2013). Identifying and prioritizing factors effecting on efficiency of goods distribution network. Iranian Business Management, 5(2), 115-130.
Trihatmoko, R. A. (2018). Structure of channel management and agency theory: relationship marketing approach for fast moving consumer goods (FMCG) business. Andalas University,
Trihatmoko, R. A., & Mulyani, R. (2018). Distribution strategy for new product marketing success: fast moving consumer goods (FMCG) business. Management and Human Resource Research Journal, 7(12), 19-32.
Vokurka, R. J., & Lummus, R. R. (1998). Balancing marketing and supply chain activities. Journal of Marketing Theory and Practice, 6(4), 41-50.
Webster Jr, F. E. (1976). The Role of the Industrial Distributor in Marketing Strategy: The industrial distributor and his role in the manufacturer's marketing strategy are changing—slowly. Journal of Marketing, 40(3), 10-16.
Zikmund, R., & d’Amico, T. (2011). Marketing action in networks. European Journal of Marketing, 4(11/12), 1271-1291.
 
 
البرز, گ. م. ت. ا. (1388). گزارش طرح تحقیقاتی بررسی وضعیت نظام توزیع در کشور و چگونگی استقرار شبکه نوین تهیه و توزیع کالا توسط بخش تعاون و مرکز بازاریابی تعاون.
حاتمی, ک., و خیری, ب. (1396). مدل سازی عوامل موثر در انتخاب کانال توزیع توسط شرکت. مطالعات مدیریت و کارآفرینی, 20(3), 128-136.
حقیقی, م. (1391). مدیریت کانال های توزیع و فروش ب تاکید بر پخش مویرگی- نگرشی کاربردی (ویرایش اول). تهران: مهربان نشر.
Aithal, R. K., & Maurya, H. (2018). Distribution Challenges in Emerging Markets: Evaluating Alternate Distribution Strategies for FMCG Firms in Rural India. In Strategic Marketing Issues in Emerging Markets (pp. 51-60): Springer.
Aličić, A., & Duman, T. (2013). Comparing the efficiency of distribution methods in home appliance industry. European Journal of Business and Social Sciences, 2(5), 56-75.
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing: Pearson Australia.
Balmer, J. M., McDonald, M. H., de Chernatony, L., & Harris, F. (2001). Corporate marketing and service brands‐Moving beyond the fast‐moving consumer goods model. European Journal of Marketing.
Bilgen, B., & Günther, H.-O. (2010). Integrated production and distribution planning in the fast moving consumer goods industry: a block planning application. OR spectrum, 32(4), 927-955.
Carter, C. R., & Rogers, D. S. (2008). A framework of sustainable supply chain management: moving toward new theory. International Journal of Physical Distribution & Logistics Management, 38(5), 360-387.
Coughlan, A. T., Anderson, E., Stern, L. W., & El-Ansary, A. (2006). Marketing channels.
Czubała, A. (2006). Determinanty kanałów dystrybucji usług. Zeszyty Naukowe/Akademia Ekonomiczna w Krakowie(720), 173-181.
Gaski, J. F. (1988). Distribution channels: a validation study. International Journal of Physical Distribution & Materials Management, 18(5), 16-33.
Górska-Warsewicz, H., Świątkowska, M., & Krajewski, K. (2013). Marketing żywności: Oficyna a Wolters Kluwer business.
Gudonavičienė, R., & Alijošienė, R. (2008). The specific features of marketing channel design. Inžinerinė ekonomika(1), 74-83.
Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM): Sage Publications.
Heggde, G. S. (2008). Channel design for effective bi-directional relations in FMCG sector. Paper presented at the CONFERENCE READINGS BOOK.
Hill, A. V. (2012). The encyclopedia of operations management: a field manual and glossary of operations management terms and concepts: FT Press.
Hugos, M. H., & Thomas, C. (2005). Supply Chain Management in the retail industry: Wiley.
Ilesanmi, O. (2011). The Significance of Distribution Channel and Product Life Cycle in the Management of an Organization the Nigerian Experience. Global Journal of Management And Business Research, 11(10).
Khanna, T., Palepu, K. G., & Sinha, J. (2005). Strategies that fit emerging markets. Harvard business review, 83(6), 4-19.
Kotler, P. (2016). Principles of marketing 16th ed.
Kotler, P., & Armstrong, G. (2006). Principles of Marketing: 11E: Prentice Hall Video Gallery.
Kotler, P., & Armstrong, G. (2010). Principles of marketing: Pearson education.
Kotler, P., & Keller, K. L. (2008). Marketing Management [Marketing Management]. Publisher" Himdzhest", Ukraine.
Mallen, B. (1996). Selecting channels of distribution: a multi-stage process. International Journal of Physical Distribution & Logistics Management, 26(5), 5-22.
McVey, P. (1960). Are channels of distribution what the textbooks say? Journal of Marketing, 24(3), 61-65.
Meiyani, E., & Putra, A. (2019). The Relationship Between Islamic Leadership on Employee Engagement Distribution in FMCG Industry: Anthropology Business Review. 유통과학연구, 17(5), 19-28.
Mick, D. G. (2007). The end (s) of marketing and the neglect of moral responsibility by the American Marketing Association. Journal of Public Policy & Marketing, 26(2), 289-292.
Miracle, G. E. (1965). Product characteristics and marketing strategy. Journal of Marketing, 29(1), 18-24.
Mittal, S., & Swami, S. (2004). What factors influence pioneering advantage of companies? Vikalpa, 29(3), 15-34.
Munir Dad, A. (2012). Interactive communication channels and their appropriateness for the FMCG business. International Journal of Management and Business Research, 2(3), 253-269.
Palamountain, J. C. (1955). The politics of distribution: Harvard University Press.
Rosenberg, L. J. (1974). A new approach to distribution conflict management. Business horizons, 17(5), 67-74.
Rosenbloom, B. (2007). Multi-channel strategy in business-to-business markets: prospects and problems. Industrial Marketing Management, 36(1), 4-9.
Rosenbloom, B. (2012). Marketing channels: Cengage Learning.
Sambrani, V., & Pol, N. (2016). Supply Chain Management–Impact of Distributor ROI Towards Sales Enhancement in FMCG Sector. Available at SSRN 2770481.
Sharifi, S., Nesabi, H., & Yavarzadeh, Y. (2013). Identifying and prioritizing factors effecting on efficiency of goods distribution network. Iranian Business Management, 5(2), 115-130.
Trihatmoko, R. A. (2018). Structure of channel management and agency theory: relationship marketing approach for fast moving consumer goods (FMCG) business. Andalas University,
Trihatmoko, R. A., & Mulyani, R. (2018). Distribution strategy for new product marketing success: fast moving consumer goods (FMCG) business. Management and Human Resource Research Journal, 7(12), 19-32.
Vokurka, R. J., & Lummus, R. R. (1998). Balancing marketing and supply chain activities. Journal of Marketing Theory and Practice, 6(4), 41-50.
Webster Jr, F. E. (1976). The Role of the Industrial Distributor in Marketing Strategy: The industrial distributor and his role in the manufacturer's marketing strategy are changing—slowly. Journal of Marketing, 40(3), 10-16.
Zikmund, R., & d’Amico, T. (2011). Marketing action in networks. European Journal of Marketing, 4(11/12), 1271-1291.
 
 

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History

  • Receive Date: 25 November 2019
  • Revise Date: 30 January 2020
  • Accept Date: 08 February 2020

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