CHAPTER ONE

BACKGROUND OF STUDY

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 CHAPTER ONE
Introduction
1.1 Background of The study
In the present day world of mass production in anticipation of Demad, there
is always a pressing need of intermediaries of one type or the other, for
enabling the goods to reach the ultimate consumes. The purpose is to sell
everything that is produced. However, it is really difficult for producer to
under take the distribution of goods directly to consumers all by
themselves. Therefore the distribution is under taken by a number of the
intermediaries: PK SAHUK (2003:16).

This channels of distribution are path ways- to connect the producer to the
ultimate consume or user i.e. the reute through which goods or services
pass from the point of production to the point of ultimate consumption .This
includes producers, wholesalers, agents, middleman and retailer; Pk
SAHUK. CRAWOT (2003; 17) .The distribution system along with other
marketing strategies have an effect on the availability of products and
satisfy consumer needs; Philip kotter (1996: 389)

The primary objective of the channels of distribution is to assist the

producers in marketing the goods and services on one hand and to satisfy
the demand of the consumer by providing good of right time place and the
right prices: PK SAHUK.CRAWOT (2003:17) .According to them, every
channels contains one or more transfer point where there is either on
institutions or a final buyer. In other words, legal ownerships of the
producers change hands at least once. When the producer sells directly to
the final buyers and there are no intervening middlemen, it is called directly
selling. However in most cases the product passes from the producer to the
ultimate consumers or industries users through a serious of middle men
(distribution institution) called indirect selling .As Philip kotler (1996; 391)

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states, indirect marketing channel in consumer market level typically a
jobber, retailer and wholesaler etc from manufacturer point of view, a
greater number of level means. Less control and greater channel complexity
and business market commonly include multi level distribution channels.

In our country Ethiopia, there are a number of textile factories. engaged in

production and distribution of products these textile factories produces
various types of products which are sold in domestic and international
markers. companies must decide on the best way to store, handle, and
move their products and services so that they are available to consumers in
the right assortments, at the right time in the right places most of producers
use a distribution channel, which is asset of interdependent organizations
involved in the process of making a product or services available for use and
consumption by the consumer or business user.

Background of the company

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Adama Textile share company was established in 1985 by Russia
government in the hearty city of Adama .100 km east of Addes Ababa. It’s
intial capital was 5,6 million birr.in1994 Russia government sold company
to the individual or non-government .The company was originally
established due to several valid reasons such as regional development
demand for textile sources of direct and indirect development, and
availability of power the Awash falls and water from the blue Nile and
availability of manpower.

.It total land holding is 480.00 square meters of which 39, 200, metric
covered by building is 2.7,.700 tons, 25,000,000 meteric tons, 19.7 million
tones yare, grey fabrics and finished fabrics respectively. Regarding human
resources, there were 360 male 120 female, total .480 workers during the
establishment of the company. According to the survey made on the
structure and organization of all human resources in 1994 e.c the share
company was supported to have 780 worker, but present compain has 260
permanent and 80 temporary, total 340 workers .out of this number of
employees more than 90% of it engaged in production and technical
department , the remaining are supportive statfS.

The company manufacture 100% cotton products, including different size

bed sheets, different type of fabrics and market yarn for hand woven fabrics.
In general Adama textile share compain have currently about 12.8 million
capitals.

Statement of problem

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Adam Textile share company is one of the well- knows manufacture in
Ethiopia .The company produces various of the products. These are bed
sheets, fabrics market yarns &mattresses which are delivered to the
domestic and international market .The factor chooses to distribute its
products indirectly by taking the help of various middlemen like wholesaler,
agent and retailers. As Pk SAHU CRAUT( 2003:17) says it is quite difficult to
identify a specific channel, which can be considered as the best. The
manufacture often users more than one channels of distribution of good
and services.

Adam a textile Share Company is unable to satisfy all the user requirements
due to the incapability of using interaction with outside environment i.e to
gain new ideas, technology and high transportation expense hinder the
company to be competent enough in the market .So these and the like
constraints make the company unprofitable .Thus the purpose of this
research is to examine the impact of product distribution system on the
availability of product to consumers.

Therefore, in this study the trial will be made to assess the existing
problems of the company and suggests possible solutions for the problems.

Finally, this research project will reply for the following basic question.

1. What are the distribution system being employed in the company.

2. What factors affect the distribution of the product to deliver them for
consumer.
3. In what way that the distribution channel distribute the products?
4. Are consumer able to get the required product at a required time?

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 5. What measures must be taken by the company to satisfy the
consumer in making the product accessible to them?

SIGNIFICANCE OF THE STUDY

Distributions system is one of the vital tools of companies to make the

products accessible for consumers. Therefore any company should give a
great focus for distribution since distributions of product to the market have
a significant effect on consumer need satisfaction if makes the company
unable to achieve its own objective and becomes unpredictable if it can not
sale in appropriate time.
Therefore , the researcher finding
 Helps the company to observe its existing distribution system .
 Provides highlight for future distribution system management.
 Helps the company to strengthen its relation with the existing
effective channels for a longer period of time.
 It can be used as an input for others researcher.

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 Objectives of the study
General objective
The researcher attempts to examine the effect of distribution system on the
product availability for ultimate consumer and business user.
Specific objective
1. To state whether the products are available or not
2. To examine the challenges on the existing distribution system
3. To point out the impact of distribution on the need satisfying ability of
the company for consumer
4. To identify the factors that effect the distribution system of the
company.
5. To assess the existing distributions system effectiveness on the
delivery of the products to consumers.
6. To suggest and recommend on the problems based on the findings.

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 DIFINITION OF TERMS

Distributions:- The giving of something to a number of people and it is the

way something is shared out or over an area
System: - A methodology way of planning, coordinating the work to
produces complex or means of bringing a clear vision of
the business to those who operate
Product: - Anything that can be offer to market for attention acquisition,
use or consumption that might satisfy a want or need. It
includes physical object, services, person, places,
organization and ideas.
Consumer: - All the individuals and house holds who buy reacquire goods
and services for personal consumptions

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1.5 Research Design and Methodology

The data was obtained from two sources .these were primary and secondary
data. The researcher choose the primary data collection technique in order to
get first hand information from the respondents and it helps to gather
information for the specific purpose of addressing the problem at hand ;the
effects of distribution system on the product availability and the primary data
was collected by preparing a questionnaire a set of questions arranged in
logical sequence.

The questionnaires type, which the researcher used, was structured

questionnaire. This types of questionnaire was selected to involve high
number of a close-ended question and less number of open- ended questions.
So the researcher found it most appropriate not to waste time.

Thus the respondents replied for both open and close –ended question in
appropriate time. Also this structured type of the questionnaire help the
researcher not to be contused while analyzing since mainly open ended
questions provide a freedom to the respondents, it is tedious for the
researcher to generalize and to explain the response of the forget populations.

The researcher , in addition used secondary data sources since it is the main
sources of information and secondary data is easily availabile , inexpensive
and can be obtained quickly as well as, it can be used for linger reference
purred.

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1.5.2 Method of sampling

From the target population of the study who were found in Adama town, the
researcher used non- probability sampling technique to gather the required
information because the representative due to the nature of sampling
techniques the consumer at the product.
The company have two outlets retaining shops with the total of 600
customers with in month .From these customers the researcher takes 10% of
the target population .i.e.
10 x 600= 60 thus the sample size of this researcher is 60 customer
100
And company manger. The reason why the researcher took 10% of the target
population is to all aviate time constraints while gathering the data and to
make the information simple for analysis data and conclusion .So this
methods helps the researcher to obtain the required information at the
required time.
1.5.3 Method of Analysis

The information gathered by the above technique was analyzed by using

judgmental sample techniques .Thus researcher used tabulation percentage,
pie charts and analysis on graphical, which helps the researcher to present
all the collected information in the simplest form to arrive at effective
conclusion and the possible recommendations.

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Limitation of the study

There are constraints faced by researcher which the study

1. The time allowed for by distributing and collecting the questionnaire
was not sufficient.
2. Shortages of secondary data to make comparison and be reference for
more details.
3. Respondents were careless to respond the open ended question freely
and clearly.

11
CHAPTER TOW
REVIEW OF THE
LITERATURE

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 CHAPTER TWO
REVIEW OF THE RELATED LITERATURE

This chapter reviews the literature related to the distribution system of the
products in order to make accessible to consumer. This includes the
channels of distribution, number of channels levels, the types of
intermediaries, the horizontal, vertical and hybrid marketing systems the
concept of physical distributions and their component, the function and
goals of logistics are described under this chapter.

2.1 CHANNELS OF DISTRIBUTION

A channel is defended as system of relationships existing among business

that participate in the process of buying and selling products and services.
Some of the activities and involve grater risk and level of responsibility than
other channel members. who take an ownerships of the products
automatically incur. Risk as there is always the possibility that they may
not able to sell the products. Subsequently other activities, while highly
important to the process do not encounter the same level of risk and are

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more specialized in nature. For example when a channel members passes
on market information to another participant Michael J. Boker (1995:201)

As economy growth in size, sophistication and the need for intermediares to

perform various activities increase. Before a Company can consider specific
elements of channel structure it has been identified three channel
classification based on dependences These are single transaction channels,
conventional and vertical marketing system Michael j.Baker(1995:201).
Mostly manufacturer helps to know the exact quality and quantity
scheduling accordingly and may get a benefits of longer orders from whole
solar. so they make the manufacturer to maintain a constant level of
production by placing orders as regular interval and also provide valuable
information about taste, fashion and demand of the consumer, they are also
sufficient information which are quite important to the company Michael.s
baker (1995,201)

In addition, Fredic Alline (1987)/95) widely distributed and frequently

purchased the consumer products are sold through industrial distributors
Channels literally bridge the gap between and where they are needed and
after a host of support services that buyer’s desire since they control
economical access to final a buyers, learning to respond to channels needs
is critical to obtaining widespread distribution of product.

Generally, the choice of channel influenced by the characteristic of the

organization, company characteristic refer to the organization of the
manufacturer , reputation of the firm and marketing polices and company’s
product mix influence the channel pattern. A company which is financially
sound can adopt direct marketing channel profitability where as affirms
which is financing weak and is not in position to sell directly may depend on
the intermediaries as stated by Michoel J Baker (1995:202)

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2.2 Number of Distributions Channel level

As Philip kotler (1996:391) states, distribution channels can be described by

the number of channels levels involves. Each layer of marketing
intermediates that that performs some work in bringing the product and its
ownerships closer to the final buyer is a channel level. Because the
producer and the final consumer both perform some work, they are part of
channel. Essentially three basic alternative are opened to manufacture of
both industrial and consumer goods. Namely direct sale to user or
consumer, indirect sale through the medium of the third party and
combination of both direct and indirect sale.

A DIRECT MARKETING CHANNEL

Direct marketing channels has no intermediary level, it consist of complain

solving directly to consumer. Direct sales offer the greater degree of control
but can be uneconomic where there is a larger number customer for the
products in question direct sale to the customer may be achieved by
manufacture or seller of the services in one of the three ways. By forward
integration in to retailing and establishment of one own outlets usually it is
a retail who integrate backward, mail order selling , door to door diving
michoel J. Baker(1996.215)

B INDIRECT MARKETING CHANNELS

Distribution through an intermediary of the wholes sealer, offers the

manufacturer opportunity to improve the over all profitability; J Baker
(1996:1999) with in the retail outlet recognition of the high costs arising

15
from the counter services, both in terms of the duplication of efforts in
putting goods on display and then fetching them for customer on request,
as well as the waste of valuable selling space; Michael J. Baker (1996.204).
From the consumers point of view, retail outlet greatly facilitate the
purchasing decision as they provide the opportunity to inspect and compare
both prices and quality of competing products Michael s Baker (1996.205)

2.3 IDETIFYING MAJOR CHANNEL ALTRNATIVES

Company can choose from a wide variety of channels for reaching customer.
Form sales forces to agent, distributors’ dealers, direct mails, telemarketing
and internet, each channel have unique strengths as well as weakness.
Personal selling is effective for handle complex products and internal is very
expensive. Channel alternative is described by three elements in Philip
kotler (1999:510)
 The type of intermediaries
 The number of intermediate
 The terms and responsibilities of each channel member
2.3.1 Types of Intermediaries
Afirm needed to identify the types of intermediaries available to carry on its
channel work company should search for innovative marketing channels
sometimes a company choose on un conventional channel because of the
difficulty or cost working with the dominant channel. The advantage is that
the company will encounter less competition during the initial move into
this channel: Philip kolter(1999. 510)
2.3.2 Number of Intermediaries
Company have to decide on the number of intermediaries to use at each
channel level Three strategies are available Philip kotle (1999: 512)
 Exclusive Distribution
 Selective Distribution

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  Intensive Distribution
I Excusive Distribution
They are several limiting number of intermediation and used when producer
wants to maintain control ever the services level and outputs offered by the
result. It requires greeters partnerships between seller and reseller and is
used in the Distribution of new automobiles some major appliance and
some women’s apprea, brands
Ii. Selective Distribution
Involve the use of more than a few but less than all of the intermediaries
who are willing to carry a particular products intermediaries It is used by
established company and by new company seeking distribution the
company does not have to worry about many out lets can gain adequate
market coverage with more control and less cost than intensive
Distribution.
III Intensive Distribution
Costs after placing the good or services in many outsets as possible .This
strategy is generally used for items such as tobacco products, soap snack
foods and gum, product ,for which the consumer requires , a great deal of
location convenience ; Philip kotle ( 2003:514)

2.3.3 Terms and responsibility channel Members

The producer must determine the right and responsibility of participating

channel members .Each channel member must be treats respectively and
given the opportunity to profitable .The main elements in the trade –Relation
mix’ are price, condition of sale, territorial right, and specific services to be
performed by each party.
 Prices policy:- calls for produce to establish a prices lists and
schedule of discount and allowance that intermediaries see as

17
 equitable sufficient.
 Condition of sale:- refer to payment terms and producer
guarantee most producer grant cash discount to distributor for
early payment.

 Distribution territorial Right:- define the distributors

territorial and the terms under which the producer will enfranchise
other distributors normally expect to receive full credit for all sales
in their territory whether or not they did selling .

2.3.4 Evaluation of channel member

Producer must periodically evaluate intermediaries performances against
such standard as sales quota attainment, average inventory level customer
delivery time, treatment and damage and lost good and cooperation in
promotional and training programs. A producer will occasionally discover
that it is paying too much to particular intermediaries for what they are
actually dong one manufacture that was compensating a distributor for
holding inventories found that are the inventories were actually held in
public warehouse at its expenses.
2.5 Channel dynamics
As Philip Kotler 9199:5190 states distribution channel do not stand still
new wholesaling and retaining institutions emerge , and new channel
system evolve in recent year

2.5.1 Vertical marketing system

As Michael J.Baker (1995:202) describes vertical marketing system channel
structure are professionally managed and centrally controlled .it is designed

18
 to achieve technological, coordination and synchronization of the marketing
flows from the point of production to point of ultimate user specifically, from
the various types of vertical marketing system corporate vertical marketing
system exist when the various channel members participating within chain
are owned wholesaling or retailing structure or through backward
integration where as retailer or wholesaler its own suppler base .
2.5.2 Horizontal Marketing
In which two or more unrelated companies put together resources or
program to exploit on emerging marketing opportunity by working together.
Company can combine their capital, production capabilities or marketing
resources to accomplish more than one company could working alone.
2.5.3 Hybrid marketing
Multi channel distribution system in which a single firm set up two or more
marketing channel to reach one or more customer segments by adding more
channel, compares can gain important benefit.

2.6 Physical Distribution concepts

As Robin T. perveson (1989:118), describe many people believe that
marketing is mainly concerned with promotions. They are after surprised to
learn that it includes physical distribution as well yet this a very important
aspect or marketing. Physical distribution is the efficient movement of
finished goods from produce to consumer .Through physical distribution
marketer create time and place utility for customer
 Time utility means making goods available when they are
needed
 Place utility means making goods available where they are
needed .Physical distribution in company is a system of interrelated
parts that work together towards one or more common fools the parts of
physical distribution in company are system of interrelated parts that work
together towards one or more common goals .The parts of physical

19
 distribution system are interrelated because what happens to one parts
affect the other normally the comman goal are to provide customer wish the
goods they desire at the time when and place where they want them all at
reasonable cost.

The most useful goals are that specific enough to provide guidance so
physical distribution personal; Micheal J.Baker 91996:185) stated that a
channel of distribution is the structure of intra-organizational units and
extra company agents and dealer, wholesaler and retailer through which
commodity can be delivered.
Physical distribution is concerned with the movement handling steerage and
delivery of raw material, fabricated material, component and subassemblies
one finished goods. All of those posses value but they also represent capital
tied up in inventory or stock, while the appropriate level of stocks will vary
accordingly to one’s position within the industry/marker, efficiency and
effectiveness will depend on very much on keeping stocks do a minimum
and turning them over quickly as possible. Ideally the manufacturer would
wish to performs all function to control the products from factory to the
final customers. Further more Fred C. Alluine (1987:7) stakes physical
distributions involving making products available to buyer (channels
member, and final purchaser) when they are needed at the lowest possible
cost,.

2.7 Goals of the logistics system

Customers may want several distribution services from supplier, fast and
efficient order processing, speed and flexible delivery, presorting and of
merchandise order tracking information, and willingness to take back or
replace defective goods. Some companies state their logistic objective as
providing maximum customer services at the lost cost. Unfortunately, no
logistic system can both maximize customer services and minimize

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distribution cost maximum customer services implies rapid delivery, large
inventories, flexible assort to next, liberal reforms polices and other services
all of these are raise distribution cost.

In general goal at marketing services should provide targeted level of

customer services at least cast search the importance distribution services to
customer and set the desired services level for each segment.

CHAPTER THREE
DATA ANALYSISIS AND

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 CHAPTER THREE
DATA ANALYSISIS AND INTERPRETATION
In this chapter comprises the company assessment and analysis of data
collected from Adama textile Share Company
Demography
The researcher took the population of Adama Town as target population of
study 60 respondents were requested to fill the questionnaires and
respondents are agreed and filled frankly even though all the questionnaire
were collected and accomplished in the required time some respondent were
not filled open ended question clearly and not returns the questionnaires to
the researcher.
The composite result regarding respondents personnel information is
calculated, tabulated and presented below. As a result the researcher tried
to present the responses of consumer by analyzing in the following manner.

22
 Table 1:- Age distribution of the respondent
Age
Sex 18.25 26-33 3441 42-50 50&above Total
Male 17(28.33%) 14(18.33%) 9(11.67%0 3(5%0 1(1.67%) 42
Female 6(10%) 5(8.33%) 5(8.33%0 1(1.87%0 1(1.67%) 18
Total 23 19 12 4 2 60

As indicated above table 167 (28.33%) males and 6 (10%0 female

respondents are found between the age 18-25 category. This indicated the
greater number or respondent it found in the age category between 18-25
are 23 in number and from total number females 18 this because of female
are not found while the researcher distribute the questionnaires and also
the complain male manager are included.

Table 2:- Sex Distribution of Respondents

Sex Number of the respondents Percent of the respondents
Male 41 68.33%
Female 19 31.66%
Total 60 100%

The above table indicates from total sample 41 (68%) respondents are male
and 19 (31 .66%) are females at the time of distributing the questionnaires,
females were rarely found and mostly males responded. Due to this reason
the numbers of males was greater than the number of females.

Table 3:- Educational level of respondents

Sex Primary Secondary Diploma Degree Total
Male 5(8.33%) 20(33.3%) 19(16.67%) 7(11.67%) 42(70%)
Female 2(3.33%) 15(25%) 1(1.57%) - 18(30%)
Total 7(11.67%) 35(58.67%) 11(18.34%) 7(11.67%) 60(100%)

As indicated above 58.33% f the respondents is secondary level

accomplished here both number of sex have significant number .About

23
11.6% o the sample is primary level and 18.34% are diploma holder and the
rest 11. 67% respondents have first degree.
From the total number of males 2 of them are managers and the rest are
consumer of the product .And the is a manager who is degree holder in
marketing

Table 4:- Average of monthly Income Distribution of respondents

Sex Monthly Income
Below 120 120-280 280-340 Above 440 Total
B/month birr
Male 7(11.67%) 7(11.67%) 5(8.33%) 21(#%%) 40(66.6%)
Female 5(8.33%) 6(10%) 4(6.67%) 5(8.33%) 20(33.33%)
Total 12(20%) 13(21.67%) 9(15%) 26(43.33%) 60(100%)

As indicated above 7. (11.67%) of male and 5(8.33%) of females respondents

income laves is below 120 birr per month. About 7 (11.67%) of male and
6(10%) of females gains 120- 280 birr per month and about 9(15%) of the
respondents have income level 280-440 per month both female and males.
Also the remaining 26 (43-38%) of the respondents earn an in come level
above 440 the number of males exceed the females number because the
manager are also includes at this category and 66.67% of the respondents
are male merchants and consumers of the products.

Distribution system

Table 5:- The types of distribution channel that the consumer mostly
uses
No Types of channels Number of the Percentages of the %

24
 respondents respondents
1 Direct 10 16.67%
2 Indirect 36 60%
3 Both 14 23.33%
4 Total 60 100%

As the table show the number of respondents who uses the direct channels
10 (16.67%) of the sample and the about 36 (60%) of respondents use
indirect channels to acquire the products and also about 14 (23.33%) of
respondents use both methods of distribution channels . This indicates the
indirect channels user exceeds both the direct channel users since
consumer find the product in a near by they used to buy indirectly rather
than going the factory to get the required product. Also the respondents use
direct method, which buy the product inequality are merchants for reselling
purposes.

2. The Distribution that consumer frequently users

36.60% 16.67%
Retailer
wholesaler
Both
46.00%

As shows on the above pie chart for the question that asked which specific
types channels the consumer uses, about the 28 (46. 67%) of the
respondents use retailer to get the product and also 22 ( 36. 67%) of
respondents use a wholesaler to buy the required amount .About 10 (16.
67%) of respondents use both of the retailer and wholesaler to buy the

25
 textile products .This impels the considerable number of the respondents is
buying the products from the retailers due to availability of the products in
near by.

Table 6:- The problems faced while consumer buy from

distributors
Problems Number of the Percentages of the
respondents respondents
Unfair prices increment 27 45%
Insufficient amount of 12 20%
the supply
Insufficient amount of 17 28.33%
in come
Other 4 6.67%
Total 60 100%
The above table shows, consumer face a problem while they purchase from
distributors. About 27 (45%) of the respondents face unfair prices
increments, and about 12 (20%) of the respondents are unlabeled to get the
required amount of supply at of the time of their requirements about
17(28.33%) of the respondents have insufficient amount of income .The
remaining 4 (6,67%) of respondents are unable to get these products which
are expected while consumer wants to buy .As a result the above table
shows 27(45%) cases of respondents are much exceeds the other problems
faced to respondents while customers buy from a retailer they also come
across some problems.
Table7:- Existence of problem
No Problems exists Number of the Percentages of
respondents the respondents

26
1 Yes 32 53.33%
2 No 8 13.33%
3 Same time 20 33.33%

As the table shows about 32(53.33%) of respondents faced problem while

they purchase from retailer and 20(33.3%) of respondents faced a problems
sometimes .In other hand about 8(13.33%) of respondents did not face any
problems .As is shows on table the number of respondents who face
problems exceeds the number of respondents who did not faces.

Tables 8:- Specific problems while consumer buy from retailers

The specific problems respondents faced
No Problems exists Number of the Percentages of
Types respondents the respondents
1 Rising of a price 42 70%
2 Unavailability of product 11 18.33%
3 Sales person detect 4 6.67%
4 Other 3 5%
5 Total 60 100%

From the above table, prices increment is the serious problems of consumer
while they purchase from retailer, that is about 42(20%) of the respondents
complained on this .About 11(18.33%) of respondent said unavailability of
product at the required time.and 4(6.67%)of respondents faced improper
sales personals treatment which made them alienate while the customer
goes to their shops. Generally price increment is serious problem for
consumer while they purchase form the retailer.
Table 9 :- Factor affecting the distribution systems.
No Factors Number Percentages
1 Lack of money - -
2 Governments factors 2 66.67%

3 Factors Environmental 1 33.33%

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 Lock knowledge -

As the manger said about 2(66.67%) of company’s distribution system

affected by government forces. This because of the

government doesn’t give focus on contraband goods and commodities which

are imported to the country and chooses by consumer for their unique style
and color. About 1 (33.33%0 of the distribution affected by environmental
factors lake infrastructure for the delivers of the products to consumer.
Table 10:- While the consumer wants to buy the product in
what way the consume will purchase? the ways of
the consumer payment

No Payment will be made Number of the Percentage

respondents s of
respondent
s
1 Advance payment 42 70%
2 Post payment 11 18.33%
3 Timely bases 5 8.33%
4 Other 2 3.33%

As indicated above 42 (70%) of consumers made a payment before taking

the product and 11 (18.33%0 of respondent made payment after taking the
product and about 5 (8.33%) of consumer pays some amounts on one
month and the remaining on the next month and 2(3.33%) of the consumer
pays, per month .As show about 42(20%) of consumer take the product after
they agreed on the amount need by consumers.

28
.
Table 11:-Accessibility and customer satisfaction
does consumer get available product at the required time
No Is the product Number of the Percentages of
available respondents the respondents
1 Yes 30 50%
2 No 11 18.33%
3 Sometime 19 31.67%

As the above table shows about half of the respondents 30(50%) of the same
size a bled to get the product at the required time and place. But a about
11(18.33%) of respondents could not get the product due to lack of
transportation and due to the in accessibility of supplier at required time
and 19(31.67) of respondents get the required product and some times they
could not. The data indicates half of the respondents could get the product
on time and on the proper place while some others could sometimes not.

While consumers buy from distributors have you get the product by
maintaining its quality or not

Table 12:- The quality of product while purchasing

No Quality of the Number of the Percentages of
products respondents the respondents
1 Maintaing as it 27 45%
2 Decreasing 12 20%
3 All come across 19 31.67%
4 Other 2 3.37%

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As table shows about 27 (45%) of respondents get the product as keeping its
quality while they purchase but 12(20%) of the consumes get the product by
decreasing its quality to some extent also 19 (31.67%) of respondents come
across both features and 2(3.37%) of the respondents also said the products
features decreases because of the products is not offered to the market due
to distributor problems so that 3.37% respondent. Say product quality
decreased or maintains by making the product available to the current
market but 27(45%) of respondents exceed the rest items and are found the
product what they expects
Table 13:- Have you ever used other company products
Are you use other company Number of the Percentages of
product? respondents the respondents
Yes 47 78.33%
No 13 21,67%
Total 60 100%

As indicated above consumer have been used other company products is

that about 47(78.33%) customer uses other cam pain products but (21.67%)
respondents are not using other com pans products. The implication is that
most consumer uses other company products of the Adama textile product
by its unique feature.

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 10%

25%

15% Design
Durability
Inc
Other

36.67%

The pie graph indicates consumers prefers the company’s product by if

durability, about 22(36.67%) preterit because of its durability. Also about
15(25%) of respondents prefer the company product by its eye catching
design because its cooler is made up some i.e 15% of consumer prefer less
than all of design and durability and about 4(6.67%) of the buyer prefer the
products by its conformability and softness.

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 Table: - 14 Unique product feature
No Unique feature of product Number of the Percentages of
respondents the respondents
1 Product quality 20 33.33%
2 strength Product 15 25%
3 Fair prices 17 28%
4 Other 8 13 3%

As shown in the above table, the respondents states that they have get a
benefit while these are (purchase quality product about 20(33.33%) that
means 20 or 33.33% depended on quality of product while about 17
(28.33%) of the respondent able to get product with fair price. The
remaining respondent about 15(25%) wants to get product with good
strength and 8(13.3%) respondents depends on other thing

Table: -15 Benefits that consumer gets being a user of Adama textile
products

No Benefit gain from Adama Number of the Percentages of

textile respondents the respondents
1 Transportation accessible 23 38.33%
2 Pricing fairly made 20 33.33%
3 Able to get at required time 14 23.33%
4 Other 3 5%

As indicated above table consumer have been gained benefit from Adama
textile about 23(38.33%0 respondents gain benefits of transportation
accessibility about 20 (33.33%) respondents gain benefits of fairly prices
and about 14(23.333%) respondents able to get product at required time
and remaining 3(5%) get other benefits.

Table:-16 Sample at 3 managers Taken from the factors Replied as

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 follow Unique feature of the products
No Unique characteristics for Number of the Percentages of
the company production manager the respondents
1 Use modernized machine - -
2 Drafting new design 1 33.33%
3 Hiring trained personnel 1 33.33%
4 Other 1 33.33%

As the above table shows, about 33.33% managers said, the company
makes its products unique by producing it with the help of trained
personnel by changing and modifying the designs to give more attractive
feature and other. What makes the product unique is using storing thread
for garments and for clothes.
Table:- 17 Incentive given to consumers by the Company
No Incentive give by the Number of the Percentages of
company manager the respondents
1 Free transportation - -
2 Price discount 2 66.67%
3 Need satisfaction 1 33.33%
4 Other (credit) - -
5 Total 3 100%

As the above table indicates, the company used to sale its product in
quantity by making price discount. Free transportation of goods is not
mostly practiced for the distant consumers since the cost of energy and
other expenses cause bankruptcy the factors also fries to satisfy the
consumer needs by providing additional feature product like design cooler
etc. but credit is not adapted by the company to sale the product.

Table: -18 Product availability

No Product availability Number of the manager Percentages of

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 the respondents
1 Yes 1 33.33%
2 No 1 33.33%
3 Sometimes 1 33.33%

Table 18 shows, about 33.33% of managers said, the product is available,

sometime and not at all the reason that product is not available at all is due
to distributor problems.

Table:- 19 If the product is not available what the reason is

No Reason for unavailable of Number of the Percentages of the

products mangers respondents
1 Scarcity of product -
2 Defect on distributor 2 66.67%
3 Financial problem -
4 Lock of raw material 1 33.33%
5 Totals 3

As the above table shows, about 2 .7% of managers said the product is
mostly invaluable to consumer due to defects made on distributes by storing
the product in their shops. Some firm lack of raw materials have effect on
scarcity of product to the market by natural factors and other reasons as of
1% of managers said but the rest problems have impact but frequently faced
by the company are about two factors. Measure taken by the company
manager the factors or problem s tasted.

As manager described, most of the problems are raised by distributors effort

to increases the price by holding the product on their store. To alleviate this
problem, the company manager provides plants of products for current

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distributors so as to decrease the product scarcity on the market. And the
managers also consult with distribution to market the products accessible
in the marked by expanding its distributions channels. The managers added
try to reduces problem related to raw material by purchasing plenty of such
in puts like cotton dye, etc to facilitate its production process at a time
making product available .

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 CHAPTER FOUR
SUMMARY,
CONCLUSION AND
RECOMMENDATION

CHAPTER FOUR
SUMMARY , CONCLUSION AND RECOMMENDATIONS
4.1 Summaries
At the beginning of demographic description, people who are under the age
of 18 respondents are excluded from the study considering that they are not
engage in the buying of company’s product. Even though the expectation
was to comprise equal number of male and female respondents .mostly at

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the time of distributing the questionnaire male respondents are found due
to this male respondents exceed female respondents out of the total sample
taken.

When we see the educational level of the respondents a significant number

is secondary level. This is due to the researcher conduct with respondents
in market thus most of them are merchants and ate secondary level
accomplished and earn above 500 birr per month.

The Distribution system used by consumers having a considerable number

of consumers indirect method .This is due to consumer can get the product
in a near by and at required time and some respondents who are
wholesalers,, retailers, buys the product in large quantity by using direct
method of channel .As marketing mangers described the company uses all
types of direct and indirect methods of distribution. Although serving all
the customers face to – face is difficult the company uses this methods for
those consumers who buy the product in large quantity and indirect
methods is employed by means of distributor.

From the distributors the majority of the consumer uses retailer to get the
product at the required time and place and mostly the consumers prefer it
to buy a required amount of the company product at any time

4.2 Conclusions

 As finding shows , majority of the respondents used to get the product

from distributes, indirectly .This because of consumer prefer to buy from
hem, since they get the product in near by with out incurring much cost
on transportation

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  Most of the respondents are complaining about the prices increment
made by distributors. And consumer are unable to buy the required
amount at a time, from this the researcher concludes price increment
affect the purchase decision of the buyers.
 Even though a majority of respondents get Adama Textile factory product
at the required time, the remaining respondents are complaining about
the unavailability of the product to the market due to distributors effect
to store the product in the shop and it created difficult to acquire the
needed product.
 As finding shows most of the respondents buy the product from retailer
for personal consumption and for house hold purposes as well as for
marketing business. Although the majority of the respondents had used
other factory products consumers still prefer the Adama Textile product
by its strength, quality, comfortably and other features that satisfy the
consumer needs.
 Adama Textile factory use a discount methods for those who buy the
company product in large quantity and its helps to create strong relation
ship with consumer and to increases the sale volume .
 Generally product distributions have effect on the availability of products
to the market and an consumer needs satisfaction as well as on
purchase decisions

1.3 Recommendations

As the finding suggest, Adama Textile factory products are available on the
market at the required time and place. But there are conditions which seeks
a great focus.

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 1. The factory should which seeks a great focus distribution strategy in
order to meet demand of various group consumer
2. Adama Textile factory should use effective distribution system which
consumer able to get the product and diversify its distribution channel
for delivery of the products for foreign and domestic market.
3. The factory should supply enough amounts of products to the
distributors, for market available in the market at required time
tratharthan storing the product on their shops which will result quality
decrement.
4. The company should provides a discount while selling the products to
distributes, which result a fair price of products for consumers,
5. The company should design strategies to encourage distributors for the
domestic firm, which results the progress of the country’s economy.
6. The company should produce, quality product in order to attach those
contraband goods.

Consumers face a problem which they purchase from distributors and the
majority said increment is the serious problems. Which leads consumer to
reduces the amount of product to be purchased. The factors which affect
the distribution of company product is government forces which is not tight
to tackle those competitors who sale a contraband goods in lower prices.
The company products are accessible to consumer. The majority of the
respondents said they can get the product at the required time and place.
The reason why consumer used to buy from distributors is that products
are available in anear by so that cost of time and energy as well as monetary
cost will be reduced. Consumer have also used other company products
with a major replies that Adama Textile product is petered by consumer by
its different feature design, quality, conformability, durability etc from the
company profile, the mission of the company is to play a leading role in the

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domestic and foreign market for textile products the unique feature of
company product plays great role

Consumers who are near to the factors has got benefit by transportation
facilities and price discount made while they purchase in quantity but for
distance consumer company do not transportation freely.

Majority of the consumer are satisfied with the services of distributors and
factory production activity to manufacture yarn and all kinds of finished
garmented from the cotton .how ever the majority of product in market
consumer also suggests this distributor must delivery consumer satisfaction
rather than making profit maximizations .Even though profit maximizations
is their ultimate objective , other also do not satisfied with the products
accessibility in the market products like abugedi ,bed sheets and share
products are available in the market.

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