Page 768 - MARSIUM'21 COMP OF PAPER

747 Rahimah & Dr.Norzafir(2021)

FYP PROPOSAL

AHIBS UTM JULY 2021

SKUDAI

STUDY OF EFFECTIVENESS & CHALLENGES MULTI-CHANNEL
DISTRIBUTION MARKETING MINYAK MASAK CAP LESONG

RAHIMAH BINTI AZMAN, DR. NORZAFIR

Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru
*Corresponding author: rahimah1996@graduate.utm.my

Abstract

Number of companies that have apply two or more channels to distribute their product in the market are positively increase and
this strategy is expected to have a positive impact on company performance. In the previous research demonstrated that multi-
channel distribution gives more opportunities to a company. The researcher shows that a customer that uses multiple distributions
channel is more loyal and it also can stimulate greater turnover. This proposal is a case study to study the effectiveness &
challenges multi-channel distribution marketing Minyak Masak Cap Lesong. The results of this study indicate that the preferred
marketing channel to distribute their products. The study conducted for this study is using qualitative research. This study aim to
determine the most effective Marketing Channel Strategy and to examine the challenges of using Multichannel Distribution to
market Minyak Cap Lesong. Data collection for this study is uses in-depth interviews to conduct interviews with respondents. The
respondent is consisting of retailer of Minyak Cap Lesong. Data has been analyzed using thematic analysis
Keywords: Multi-Channel, Channel, Distribution

1.0 INTRODUCTION

A distribution channel is one of the product business chains through which the end buyer will acquire or purchase the
product. Arya & Mittendorf (2013) defines distribution channel as the way how consumers reach the product. Distribution channel
is involved wholesalers, retailers and distributors. Vázquez-Casielles, Rodolfo, Victor Iglesias, (2013) said multiple channels have
played an important role in contemporary business strategy and have been considered a key driver to success. Distribution channel
is really important to an organization or manufacturer to distribute their products or services. They are many types of distribution
channels that have been used by most companies. Among them are Single channel and multi-Channel distribution. Single channel
refers to a producer or retailer's effort to reach customers through only one distribution option, regardless of whether it's online,
catalog, mail-order, face-to-face selling or traditional retail. This approach reduces marketing investments and organizational
complexity.
However, most large industrial companies are now diversifying the use of marketing channels in the distribution of their products.
Channel marketing is one way for manufacturers to ensure the distribution of goods to end users by using several levels called
middlemen. Baines et al. (2017) A marketing channel is defined as an entity or agency that engages in an activity that connects
producers and customers in order to make a product or service available. It was separated into two types: direct and indirect
marketing channels. (MacInnis, 2004; Brumfield, 2005; LeRoux, 2010; Seemanon et al., 2015). Study on suitable marketing
channel is important for the company because it can help to increase level of satisfaction for consumer and can improve
their brand awareness and loyalty toward their product and services. So that, this study needs to be done to find out the appropriate
marketing channel and what are the barriers to using the marketing channel for Minyak Cap Lesong.

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