A Study on Distribution - Retailers and Their Effect on Market Coverage: A Case of Unilever Pakistan

Abstract

The FMCG industry is one of the most important sectors in Pakistan because products are sold quickly and competition is very high. Unilever Pakistan is one of the leading companies in this industry. However, to stay ahead of competitors, Unilever must continuously improve how its products are distributed and placed in retail shops. This research study, titled “Optimizing Distribution Channels and Retailer Engagement to Maximize Market Coverage: A Case Study of Unilever Pakistan,” looks at the problems in Unilever’s distribution network, especially issues related to product placement at retail outlets. The main purpose of the study is to understand how delays in delivery, stock shortages, and weak distributor services affect retailers’ satisfaction and Unilever’s market coverage. A survey was conducted with 50 retailers, including Kirana stores, convenience stores, and pharmacies. In addition, distributor operations were observed to understand how orders are processed and delivered. This helped identify gaps between planned distribution and actual product placement in stores. The findings show that Unilever performs well in large cities where its products are widely available. However, in rural and semi-urban areas, retailers often face late deliveries and stock outs of fast-moving products. Because of these issues, Unilever products are sometimes missing from shelves, allowing competitors to take advantage of space. Retailers also shared concerns about strict credit policies and unequal distribution of trade promotions, which make it harder for them to stock and display Unilever products properly. Heavy reliance on third-party distributors further weakens control over service quality and placement execution. To solve these problems, the study recommends improving the distribution system by using a centralized Distributor Management System for better stock visibility, adopting route planning software to ensure timely deliveries, and focusing more on a retailer-centric approach. This includes flexible credit terms, fair promotional support, and digital ordering systems to help retailers keep Unilever products consistently available.