Modeling an Integrated and Localized Distribution Channel in FMCG Industry: Investigating Factors that Influence Choice of Channel Distribution Structure

Abstract

The growing number of different species of distribution in different industries and transition from single - channel distribution to multi - channel and omni-channel distribution has made it easy for consumers to purchase. It also brings management concerns to marketers in upstream and downstream sectors. The aim of this paper is to present an integrated and localized model for distribution in the FMCG industry due to the micro and macro-economic characteristics and their impact on this industry and production type of goods. This research is a descriptive correlational study. The population of the study consisted of all distribution managers and experts in FMCG industry who were selected through a random sampling method. A standard questionnaire was used to collect the required data and the data were analyzed using SEM and PLS software. Based on investigating the research hypotheses, the results indicate that there is a positive and significant relationship between macroeconomic variables and micro-economic ones. The results show that there is significant relationship between macroeconomic variables as well as micro-economic ones on firm status in industry. The position of company in industry on the chosen distribution channel has a meaningful effect and the type of goods produced, mediates this relationship. The results could implicate in all FMCG industries and their distribution channels.