Every industry requires efficient marketing distribution to help end customers get their products more easily and optimize the profit to achieve a large market share. As a Stateowned Enterprise, Perum Jasa Tirta II (PJT II) faces a great challenge in distributing localbrand bottled water products. This study aims to identify the distribution channel of bottled water product used by PJT II, analyze the efficiency level of the distribution, and formulate the improvement strategy using Data

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... ment Analysis (DEA) method with the help of Frontier Analysis Software. The limits of the efficiency measurement used in this study are the input and output variables. Input variables include the number of agents, delivery volume, and distribution cost. Output variables include the volume of sales, revenue, and profits. This study concludes that: the distribution channel in use is the zero-level and one-level distribution channel; there is only one area in which the distribution channel runs efficiently: Purwakarta. Meanwhile, distribution channels in the other six areas (Jakarta, Bandung, Karawang, Subang, Bekasi, and Tangerang) are inefficient; strategies that can be implemented to improve the inefficient distribution channels are: reducing the volume of delivery to match the targeted efficiency level, increasing the volume of sales based on the targeted efficiency level in order to avoid inventory pileup and boost profit; and Increasing the number of retailers in the areas in which the distribution is not efficient.