1.

TITLE

THE ROLE OF DISTRIBUTION STRATEGY IN DELIVERING CUSTOMER

SATISFACTION IN A PHARMACEUTICAL COMPANY: CASE STUDY ON ERNEST
CHEMIST HO.

2. INTRODUCTION

2.1 Background of the Study

It is an undeniable fact that production is always incomplete until the goods reach the final

consumer. As far as 1776, Adam Smith, the father of modern economics wrote in his famous

work , “The Wealth Of Nations” that Consumption is the sole and purpose of all production and

the interest of the producers ought to be attended to only as it may be necessary for promoting

that of the consumer.

It is a fact today that most producers do not sell to the final user.

Instead, the majority of the goods and services move from producer to the end user through a

series of intermediaries.

On the whole, the middlemen and the institutions of which they form a part are variously called

distribution channels. Consumers are unaware of the methods through which they receive goods

and services. Indeed, the channel structure is often more complex and performs many functions.

According to Bucklin, a channel of distribution comprises a set of institutions which perform all

the activities needed to transfer a product and its details from production to consumption. This

engages the services of individuals, group of people or organizations to sell their goods to the

final consumer.
These individuals or group of people or organizations form a set of intermediaries between the

producers and the final consumer. They may be agents, wholesalers and retailers who stock the

manufacturer’s products on their shelves to be picked by consumers.

These points to the fact that a firm’s products or services seem to command demand for profit

maximization if the appropriate distribution strategies are adopted to ensure that the products or

services are made available to the end user at the right place, the right time and the right price in

the right quantity.

The various set of intermediaries concerned with the distribution of the goods and services to the

final consumer are as follows.

• Retailers

• Wholesalers

• Distributors and dealers

• Agents

Marketing with reference to the distribution of goods and services cannot be effective without

certain auxiliaries such as transportation, storage, insurance, banking, finance and

communication. All these help to enhance effective and efficient distribution process in

marketing. The current distribution system of Ernest Chemist is the intensive system of

distribution where strategy seeks to distribute a product through all available channels in a trade

area.

3. Statement of Problem
Many companies in the Ghanaian economy experience several problems with their distribution

system which affect delivery of their goods and services. This project is an attempt to examine

some of the problems encounter by Ernest Chemist in the distribution of its products to

customers which makes them unsatisfied.

The following are some problems distributors’ encounters in the pharmaceutical industry,

especially Ernest Chemist. Climatic conditions, Distance, Storage and other lifestyles contribute

to the ineffectiveness of distribution system.

Climatic conditions, in distribution the various climates must be put into notice because every

drug has its disadvantages to weather conditions.

Distance, this happens when the products being transported from the company has to travel a

long way before getting to the final consumer.

Storage of products, when drugs do not get adequate storage systems then it becomes a problem

to solve satisfaction to customers.

Required facilities, before distribution could be thought of in the first instance the required

facilities must be available to make the products reach its users effectively. In America for

example distribution is a different thing all together and also the main thing its customers look

out for before getting involved with the company’s products.

3.1 Objectives of the Study

The objectives that the study sought to achieve are:

To examine Ernest chemist’s distribution strategy,

To also assess how the distribution strategy is built to satisfy its customers,

To identify various problems within the distribution system and to

Examine whether the strategies are being implemented.

3.2 Scope of the Study

This research will cover all the distribution strategies that Ernest Chemist uses. This will also

include the distribution efforts and principles which Ernest Chemist has laid down to effectively

satisfy its customers.

3.3 Significance of the Study

The final document of this project work will be important to these various ways:

It will be of importance to Ernest chemist as a way to identify the various problems and

hindrances affecting their distribution systems and a way to improve upon them.

Another importance of this study is that it will be a source of information to other researchers.

4. DESCRIPITION OF THE PROPOSED RESEARCH INCLUDING METHODOLOGY

AND TIME FRAME

4.1 Type of Research Design

This research work will use both qualitative and quantitative methods to analyze and evaluate the

scenario behind the assessing of effective distribution system in the strategies of Ernest Chemist.

4.2 Data Collection Methods

The researchers will use various methods to help collect necessary primary and secondary data

from the target audience. The methods to be employed will consist of questionnaire (Structured

interview), interview (interview guides) and observation of events as they took place.

4.2.1 Questionnaires

Two main questionnaire types will be developed, one for Shop Staff and the other for customers.

The researchers will explain the objective and purpose for the study to the target audience and

the requisite way of responding to the questionnaires.

4.2.2 Interviews

The researcher will also spend considerable time talking and asking the target audience questions

of the research topic. This will enable the researchers to know most of the information and data

important to the study.

4.2.3 Observations

Finally, the research will help the researcher to observe how operations are undertaken. This will

include all the major distribution process involved in getting the products to the agents and final

users.

4.2.3 Software intended for Analysis

Microsoft Excel 2007 will be use in running the descriptive statistics while Statistical Package

for Social Sciences (SPSS 12) software will be use in the designing and inputting the data which

will be collected.

4.3 Data Analysis Techniques

The researchers will tabulate the data and develop frequency distribution averages and also

measures of dispersion will be compute for some variables. The researchers will also apply

advance statistical techniques in the hope of discovering additional findings.

4.4 Conclusions And Discussion

The research must enable the researchers to indicate whether Ernest Chemist often supervise its

intermediaries to achieve expected output. The research must enable the researchers to also know

the strategies Ernest Chemist uses in satisfying it customers. The findings should help the

researchers to know whether Ernest Chemist communicates to their customer when there is a

problem with distribution.Futhermore the research will enable us to know whether Ernest

Chemist distributes to its final consumers.

Finally an interview with the management of Ernest Chemist will help us to identify whether all

strategies planned by Ernest Chemist to develop its distribution system are implemented

effectively.