Analysis of Distribution Channels in the Pharmaceutical Industry in Ghana: the Case of Aryton Drugs Ltd. in the Greater and Eastern Regions.

Abstract

The study attempted to examine the level of satisfaction among retailers who buy from distributors, to find out the reasons manufacturers in the pharmaceutical industry are not fully outsourcing their distribution function and also to identify the challenges faced by firms in distributing their products to retailers and distributors. The study adopted a purposive and accidental non-probability sampling technique. The study surveyed retailers and distributors in Greater Accra region and Koforidua in the Eastern region and management staff of Aryton Ltd. Structured questionnaires and interviews were used. Personal interviews between 1 to 5 minutes for word-of-mouth testimonies were conducted. Close-ended and open-ended questionnaires were administered to 90 retailers and distributors. The study revealed that most retailers are very satisfied with the level of service quality they receive from distributors. Few distributors wish to solely distribute for local manufacturers. Generally the study revealed that both distributors and manufacturers have challenges, some of which are limited financial resources, lack of collateral, high payment default, lack of logistics, and keen competition.

Key words: Distribution, Distribution Channels, Channel strategy Pharmaceutical Industry.