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Asian Journal of Agriculture and Development (AJAD) - Call for papers!

Assessment of the Marketing Channel Performance of Agriculture-based Products and Consumer Goods Distributors of PT. Unilever Indonesia TBK at Bengkulu Territory, Indonesia

(Indonesia), Master of Management in Business Management (University of the Philippines Los Baños)

Field Study Abstract:

The study generally aimed to determine the effectiveness and efficiency performance of Distributors of PT. Unilever Indonesia TBK at Bengkulu Territory as manifested in their sales, assets, and worth/equity. The specific objectives were to (1) determine the contribution of sales, assets, and equity worth to the efficiency of distributors of PT. Unilever Indonesia TBK at Bengkulu Territory; and (2) determine the effectiveness of distributors of PT. Unilever Indonesia TBK at Bengkulu Territory as reflected in their quality of service as perceived by their retailer-customers.

Data were collected from two major sources. Primary data of the study were collected by distributing some questionnaires to retail stores (second dealers) and interviewing the distributors. Secondary data were taken from the financial report of the distributors, and other references and publications from various resources, which were related to marketing aspect, particularly marketing channel.

Results showed that based on the total sales, assets and equity worth, CV. Bunga Mas Arga Makmur had the last position compared with the other six distributors. However, for the return on investment (ROI), CV. Bunga Mas Arga Makmur garnered the first rank. It was the most efficient among the distributors. With only an ROI of 92.5 percent for two years, it had averaged 15.41 percent quarterly or 61.64 percent per year. The least efficient was PT. Pantja Niaga Lubuk Linggau, which reach only 9.10 percent quarterly or 36.40 percent. This value was below the target of PT. Unilever Indonesia among its distributors.

Based on the effectiveness performance, all the distributors of PT. Unilever Indonesia at Bengkulu Territory showed very good performance. For the first rank of the distributor effectiveness performance based on service quality data, CV. Bunga Mas Bengkulu had a total score of 106.9. PT. Pantja Niaga Bengkulu was ranked last.

Findings showed that sales was the main variable, which can determine the value of ROI for all distributors of PT. Unilever Indonesia at Bengkulu Territory. RAS should support PT. Pantja Niaga Lubuk Linggau and encourage its distributor to hold up their sales. Efforts should not only focus on the total amount of sales, but should also consider and monitor the market changes, and push up sales value.