Potential of channel conflict in Beras Corporation Sendirian Berhad’s corporate marketing system / Semuel Belawan

Since 1997 BCSB marketing channel system has gone through phases of change first with establishment ofB’mart Sdn. Bhd. retailing system with 14 wholly owned retail outlets and score of exclusive B’mart retail agents covering major towns in Sarawak. At the same time it set up 4 JV wholesale distributors covering major Divisions in Sarawak. Realizing that the JVs are competing directly with B’mart, the later was withdrawn from the market in 1998. On grounds that Bemas was also killing independent rice retailers. In 2000-2003 the company was experiencing drastic fall in the sale of imported rice from average sales of 8000 tonnes per month to less the 5000 tonnes in Sarawak. BCSB reacted by appointing strategic alliance wholesalers that created a new scenario in the rice distribution, however without much improvement to its sales.