Effects of distribution strategies employed by the Sewing machine industry in Kenya on channel members; a case of Amedo Centres (Kenya) Limited

Abstract

Over the past two decades, a shift in emphasis has occurred from the production of goods to the distribution of goods. This shift has been accelerated by the manufacturers' view that distribution channels play the role of gate keepers into consumer markets. They help to overcome the time, place and possession gaps that separate goods and services from those who need or want them and provide a link between production and consumption by filling any gap or discontinuity that exists between them. Thus, the new frontier for cost control is the distribution channel. This study sought to investigate the effects of distribution strategies applied by the sewing industry in Kenya on channel members, with the case of study being Amedo Centres (Kenya) Limited. The objective of the study was to determine the effects of distribution strategies employed by Amedo Centres (K) Ltd on the company's channel members. The population of interest comprised the channel members of Amedo Centres. Stratified sampling technique was used to select the sample. Data collected was analyzed through content analysis. The study found that Amedo Centres distribution strategy was largely positioned on reliability and after sales service and support. The company was perceived as very responsive to issues of quality, product information, and channel member remuneration. Respondents were unanimous in their view that the company needed to put more emphasis on the competition with the influx of low priced products from the Far East, and on flexibility of pricing so as to compete effectively. The study concluded that management must develop and operate the channel in such a way as to support and enhance the other strategic variables of the marketing mix in order to meet the demands of the company's target markets and leverage the company's competitive position. Amedo must therefore continuously review its distribution channel strategy in order to effectively respond to the competitive forces.