Assessing the distribution strategies of beverage companies in Ghana and its impact on sales performance: a case of Guinness Ghana Breweries Limited (GGBL)

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AUGUST, 2015
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For most firms, distribution strategy is a key decision for building a successful business. Many companies have built lasting competitive advantages through their choices of distribution strategies. Against this background the study examined the distribution strategy of a single beverage company in Ghana. Data was collected from distribution managers of Guinness Ghana Breweries Limited (GGBL) as well as its key distributors and wholesalers across the country. Data was collected using self-administered questionnaires and structured interview guide. The questionnaires were administered to officials of the company’s key distributors, wholesalers and retailers. The interview was conducted among distribution managers of GGBL. The structured questionnaires were analysed quantitatively with the use of SPSS (Statistical Package for Social Scientists) while the interview data was transcribed and presented. The findings revealed that the company uses a form of indirect distribution strategy where key distributors, wholesalers and retailers play active role in the distribution of the company’s products to final consumers. The study further found that the current distribution strategy of the firm has significant impact on the company’s sales target, volume and profit. However, the findings revealed that channel conflict, logistics constraints and difficulty in managing the various distribution channels are some of the challenges associated with the firm’s distribution strategy. The study recommends among others that the company should give some form of support to key distributors to enhance their capacity to store and transport the company’s products to retailers and final consumers.
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A thesis submitted to the Department of Marketing and Corporate Strategy, College of Humanities and Social Sciences in partial fulfillment of the requirement for the degree of Master of Business Administration (Marketing Option).
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