Home  Journals  Economic Analysis: Theory and Practice  31(382) - 2014 August

The analysis of services provided by sale companies through bringing agricultural products to consumers

Available online: 13 August 2014

Subject Heading: DEVELOPMENT OF AGRICULTURAL SECTOR

JEL Classification: 

Pages: 23-31

The article studies the problem of agricultural products sale by Russian manufacturers. The analysis of distribution channels existed in pre-reformed and modern Russia found that previous channels, used until 1990's, such as consumer cooperatives and collective-farm markets, are currently not available. Due to the lack of effective distribution channels, farmers, especially small farms, cannot sell products, and this often leads to its loss and to renounce future production. Distributors are forced to cover the high cost by high price markup that is the reason for the rise in price of goods to final consumers. The authors concluded that the impact of the agri-food sector will be increased by establishing relations with the centers of consumption of production. The authors have studied the experience of agro-industries for the marketing of products, including the views of producers studied the advantages and disadvantages of establishing their own retail network as a proprietary trading and experience of cooperation with independent trade networks. The article deals with the peculiarities of branded trade in Russia and abroad. The authors have analyzed the electronic distribution channels and visiting fair trading and revealed the problems impeding the marketing of agricultural products through electronic channels. The authors name the lack of village computerization and even computer illiteracy of villagers as the most significant reasons of today's situation. As an effective marketing channel of agricultural products, the authors define network retail trade, including network, created by farmers, and independent retailers, logistics centers, Internet channels and visiting trade fairs. The paper shows the results of marketing research to study the opinions of consumers about the attractiveness of the purchases of agricultural products in various trading formats. The article gives certain forecast on reduction of losses of agricultural products produced by local farmers when developing the effective sales channels.

Keywords: distribution channels, agricultural products, retail trade, branded trading, infrastructure, agriculture, agro-industrial holdings, logistics centers, visiting fairs, Internet channels, merchandising

References:

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ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

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