INCREASE EFFECTIVENESS OF DISTRIBUTION SYSTEM IN BOTTLED MINERAL WATER INDUSTRY THROUGH REDUCING MAJOR CHALLENGES

In Ethiopia bottled mineral water manufacturing companies play a great role in economic development of the country through producing a mineral water which is essential for human life for the peoples.In the existing bottled mineral water company 56% losses is due to ineffectiveness distribution system of the companies.Currently the existing bottled mineral water has a major distribution challenges, i.e. low morale of distributor's, lack of maintenance and services of distribution materials, shortage of bottles, less faithfulness between company management system and distributors, increases of product price without management decision, price abuse of distributors, management and distribution system gap, less attentions of marketing channel, inequality of customers and unclear and untruly information on distribution system.Because of those challenges they lose their competitive advantages and existing customers with dissatisfaction.Due to this reason it needs to increase their effectiveness of distribution system by reducing the existing major challenges of distribution, in order to create sustainable competitive advantages for the companies and satisfy the customers with increasing demand of the product.The objective of the paper is to increase the effectiveness of distribution system by reducing the existing challenges of bottled mineral water company through creating distributor's framework, increases of distributor's motivation, effective information transfer, effective management skill, uses of proper market channel and manual distribution centers, investing on bottles and preventive maintenance for distribution materials.The end result of the paper to create sustainable development and competitive advantage for a company with increases of demand and customer satisfaction.