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Student
Title
Supervisor
Faculty
Educational Programme
Final Grade
Year of Graduation
Natalia Verbitskaya
Distribution Chains' Improvement: the Case of Mars Company
Marketing
(Master’s programme)
2018
Master thesis is devoted to proposing measures on changing the distributor evaluation method and improving the existing distribution chain for Mars the company

To maintain the sales level, the company must organize a distribution system in a way that will allow it to feel confident in the market. In case of bad-organized distribution system, sales losses can be up to 20% (Anikin BA, Barkova NY, 2017).

The sales system includes the organization of distribution chains. Distributors are part of this chain; therefore, they can also cause the sales loss. In this case it is important to choose reliable partners in the market. The right choice, in turn, is possible only if an objective evaluation system is developed.

The study consisted of three stages. At the first stage, in-depth interviews were conducted. As a result, the main tasks of Mars Company in the sphere of distribution chain were identified: the creation of a new system for distributors’ evaluation and the reduction of the distributors’ number. Based on interviews the survey was formed. The survey was the preparatory base for conducting a cluster analysis. Based on the survey the structure of distributors’ evaluation criteria was changed: they were rearranged and unimportant criteria were removed from the evaluation system. Now there are 2 groups of criteria - strategic and functional ones.

Further, the correctness of the new evaluation system was checked based on historical data. As a result, the new method has reduced the number of distributors from 69 to 36. Also, the new method is also economically profitable and will allow the company to reduce up to 2.5% of the distributors investment.

It is important to note that the company has already used all the above recommendations: The new model of distributors’ evaluation is already integrated into Mars working processes. Moreover, the company decided to continue working only 36 distributors in the same breakdown as it is indicated in this paper.

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