Page 770 - MARSIUM'21 COMP OF PAPER

749 Rahimah & Dr.Norzafir(2021)

1.6 SCOPE OF STUDY

The coverage of this study is to determine the multichannel distribution effectiveness in Syarikat Helang Gagah Sdn Bhd.
Companies may know what and how multichannel happens but they may not know how effective it is. It can also facilitate
consumers as well as attract new customers. However, to use multichannel distribution is not as easy as we understand, there may
be some obstacles that need to be faced to improvise the distribution channel. This study involved 8 respondents consisting of
employees and retailers for Helang Gagah Sdn Bhd. Data obtained from informant will be recorded to answer research questions.
To interact with the informants to obtain data in a purposive way, the in-depth interview will be conducted using the semi- structured
interview method.

2.0 LITERATURE REVIEW
2.1 WHAT IS MULTI CHANNEL DISTRIBUTION?

A multichannel distribution is a method or structure by which a single company establishes two or more sales and marketing
channels to reach one or more customer segments, such as through a physical store, an online marketplace like Amazon or eBay,
a large retailer, wholesale, direct marketing, or resellers (QuickBooks Commerce, 2019). Neslin et al. (2006) defines the design,
deployment, coordination, and evaluation of the various channels via which a marketer recruits, maintains, and develops clients is
referred to as multichannel marketing. According to Kotler and Keller (2012) each channel of distribution has a different customer
category as its target market, or even attempts to serve diverse demands of the same clients.Multichannel distribution can help
Helang Gagah Sdn. Bhd. to improve customer perception because with multi -channel distribution it can facilitate buyers or
consumers. It can also contribute to customer loyalty because ease in purchasing can differentiate us from competitors. Choosing
a distribution channel or designing one has proven to be difficult in general for companies, this can be quite difficult (Edgar E.
Blanco, 2012).

2.2 THE IMPORTANCE OF MULTICHANNEL DISTRIBUTION

According, Hassan Mansoor (2017) defines customer reach as the possible number of customers your company may reach through
any marketing channel or campaign. According to (Hassan Mansoor, 2017) sales, exposure, and consumer reach rise when
companies position their goods in front of people who need it, whether in-store or online. Multichannel distribution allows
businesses to communicate with customers in a variety of ways, increasing their reach '(Michael J. Valos, 2008). It is a factor of
effectiveness by having multichannel in the company can help increase the breadth and increase customer reach. Multichannel
makes it easy for customers to deal in purchases or to find out information about a company’s products. When it facilitates buyers
or consumers it can simultaneously achieve customer satisfaction. If customer satisfaction is achieved, the customer will spread the
word about this product to new customers. It can indirectly increase customer reach.

2.3 CONVENIENCE FOR PURCHASING

For most customers, convenience is defined as an experience that saves them time and effort. Convenience helps users get what
they need, when they need it, quickly, easily, and up close. This is a factor in the effectiveness of various channels because the
convenience can provide satisfaction to customers. For Helang Gagah Sdn Bhd. Customer satisfaction is very influential in
determining the extent to which the market can perform. With the multichannel, it can help increase customer satisfaction with
the product. Meanwhile, the views from Helang Gagah Sdn Bhd. it can facilitate the company's affairs to increase the market and
can differentiate the company from competitors.

2.4. CHALLENGES OF USING MULTICHANNEL DISTRIBUTION

Multi-channel is a system for the distribution of goods through various channels. To have multiple channels, it involves high cost
and requires more space to store goods. This is because, if consumers want to use direct channel distribution the factory needs to
provide space to store finished goods. But distribution channels cannot rely on just one type of channel. Syarikat Helang Gagah
Sdn. Bhd. only operates as a finished goods processing plant. If they want to do multiple distribution channels, they need to add
space to store goods.

749