IMPACT OF INTENSIVE DISTRIBUTION STRATEGY ON MARKETING OF CONSUMER GOODS
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IMPACT OF INTENSIVE DISTRIBUTION STRATEGY ON MARKETING OF CONSUMER GOODS
ABSTRACT
The purpose of this research is to look at the impact of an intensive distribution strategy on consumer goods marketing, with Dotmall Nigeria Limited serving as a case study.
To achieve the above-mentioned goal, both primary and secondary data collection methods were used, including the employment of questionnaires to elicit information and the evaluation of textbooks, journals, and internet sources. Statistical methods such as frequency distributions, basic percentage tables, and the Chi-Square (x2) were utilised.
The findings of the hypotheses examined revealed that the corporation employs an intense distribution strategy for the distribution of its products. Convenience items must be available at all times and in all places; poor roads and storage facilities limit successful distribution of goods and services.
Based on these findings, organisations should ensure a proper definition of channel members’ roles, rights, and responsibilities, as conflicts of interest among these members could have a significant impact on the marketing of the company’s products.
Organisations should conduct careful research to ensure the right distribution strategy is chosen for the tight type of product(s) to avoid putting a square peg in a round hole.Chapter one
INTRODUCTION
1.1 Background of the Study
The goal of marketing as a combination of human and organisational activities is to guarantee that consumer wants, requirements, and preferences are adequately and correctly met in order to assure customer/consumer happiness while also achieving the individual or organization’s goals. Marketing ensures that goods and services are not only created, but also delivered to consumers at the appropriate time, place, and quality.
Marketing achieves its goals through the marketing mix elements of product, price, promotion, and place (distribution). Marketing guarantees that these marketing mix ingredients are blended in the proper amount, at the appropriate time, and in the correct sequence to fulfil the needs of the target market.
This study focuses on distribution, one of the marketing mix aspects. The primary goal of distribution is to ensure that commodities and services go from point of production to point of consumption.
This includes both the physical movement and handling of things, as well as the transfer of title. It is crucial to recognise that distribution is a broad notion.
Agbonifor et al. (1998) define distribution as “the flow of title to goods and the movement of those goods from the point of production to the point of consumption.”
It was defined by Kotler (2008) as “involving tasks of planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirement at a profit.”
He went on to say that distribution, as a marketing resource, is used to make the product available in the correct area and quantity for the target audience. Without distribution systems, organisations would have to spend more money or construct their own infrastructure to reach their clients.
It is important to note that distribution is divided into two categories: channel of distribution (also known as marketing channel or trade channel) and physical distribution (logistics). The definition of physical distribution is the same as previously established by Kotler.
The term “channel of distribution” refers to the road or course used in transferring title to a product, as well as the individuals and institutions involved in the distribution of products from locations of production to points of consumption.
Firms use several distribution tactics to market their products. They may choose an exclusive, intensive, or selective strategy. It should be mentioned that the strategy chosen is dependent on the company and the nature of its products.
In the past, physical distribution often began with products at the facility and then sought low-cost ways to get them to customers. However, today’s marketers prefer customer-centered logistics thinking, which begins with the market and goes backward to the factory, or even the source of supplies.
As the global market becomes more competitive, a company that wants to be successful must carefully plan its distribution policy to ensure that goods are not only available, but also delivered to the right customers at the right time and place, in the right quantity and quality.
1.2 Statement of Problem
Using Dotmall Nigeria Limited as a case study, the following issues with consumer products and services distribution can be identified:
Many organisations lack a well-structured distribution policy that may aid in the efficient distribution of their products.
ü Companies, particularly small-scale firms, fail to equate an effective distribution programme with successful product promotion.
In addition, many organisations struggle to choose the best distribution strategy for their products.
ü In most circumstances, distributors suffer a conflict of interest, causing them to overlook the core aim of distribution in favour of their personal economic interests.
Inadequate definitions of responsibilities and rights between corporations and their distributors have also hampered the effective distribution of consumer goods.
ü One of the most significant challenges to effective distribution in Nigeria is the lack of adequate transportation facilities, such as transportation and warehousing.
1.3 GOALS OF THE STUDY
Any distribution plan aims to ensure that goods and services reach customers at the appropriate time, place, quantity, and quality. The study’s aims are as follows:
ü To investigate the impact of poorly organised distribution policies on the effective distribution of consumer goods.
ü To investigate how effective distribution policy influences the success of a marketing programme.
ü To assess how a distribution strategy at a given period influences the effective distribution of consumer products and services.
ü To investigate how conflicts of interest in distribution channels impact the distribution programme.
ü To investigate the impact of unclear rights and obligations on the effective distribution of commodities and services.
Finally, the goal of this research is to determine the impact of poor roads and inadequate storage facilities on the efficient distribution of goods.
1.4 Significance of the Study
The researcher derives the greatest benefit from this research. This is because the research effort is required as a partial fulfilment of the Bachelor of Science (Bsc) in Marketing degree requirements.
The research effort is also important to the case study because it serves as a source of information for determining the optimum promotional mix methods.
Furthermore, the study effort is critical for the distributing sub-sector or enterprises to understand the relevance of effective distribution policies and strategies in today’s complicated and changing business world. This is the idea behind the tagline “Production is not complete until the goods reach the final consumers.”
The research will also uncover elements that can help enterprises and organisations involved in distribution enhance their distribution efficiency.
Finally, the research will criticise previous work by various experts in order to validate their claims on the subject. The findings will determine whether such allegations are accepted or disputed.
1.5 RESEARCH QUESTIONS.
This research will strive to answer questions about problems raised earlier in this chapter. The questions are as follows.
How does an ill-structured distribution policy affect the effective distribution of consumer goods?
ü To what extent does an effective distribution policy influence the success of a marketing campaign?
ü How does each distribution strategy influence the effective distribution of consumer goods and services?
ü How have conflicts of interest in distribution channels impacted the distribution programme?
ü What effect does imprecise formulation of rights and responsibilities have on the effective distribution of commodities and services?
ü How do bad roads and inadequate storage facilities affect the efficient distribution of goods?
1.6 Research Hypothesis
Hypotheses are preliminary statements concerning the relationship between two or more variables. This study will test the following hypotheses:
The Null Hypothesis (Ho) and the Alternative Hypothesis (Hi)
Hypothesis 1.
Ho: Consumer goods marketing is unaffected by the number of channel members in the distribution network.
Hi: The number of channel members in the distribution network influences consumer product marketing.
Hypothesis 2.
Ho: Choosing the correct distribution channel is not enough to ensure a successful distribution plan.
Hi: A successful distribution plan is dependent on picking the appropriate distribution channel.
Hypothesis 3
Ho: Distribution distance has no meaningful association with sales volume.
Hi: There is a considerable link between distribution distance and sales volume.
1.7 Scope of the Study
This research project focuses on the impact of intense distribution strategies on consumer products marketing, using Dotmall Nigeria Limited as a case study.
Questionnaires will be delivered to the company’s employees in several areas, as well as top executives. The scope of the investigation will also be limited to the company’s headquarters in Ikorodu, Lagos State.
1.8 Limitations of the Study.
These are the primary factors impeding scientific progress. Some examples include:
The inability to accurately complete the questionnaire, as well as the difficulty in understanding what is actually required, impedes the study effort.
The lack of financial backing further impedes the progress of this research. Because practically all enterprises engaged in some sort of distribution are unevenly distributed throughout the town, it becomes a time-consuming, if not impossible, process for the researcher to visit all of the companies in the country to do study.
Accurate data is necessary for every study project, however it is sad that accurate data is not available in Nigeria. Data required are unavailable, and where they are accessible, they are guesses rather than the result of careful research.
Inadequate library texts are also a constraint. Other obstacles that hampered this research included time constraints and respondents’ unwillingness to provide essential information.
1.9 Definition of Terms
MARKETING: Individual and organisational efforts aimed at identifying and meeting consumer requirements, wants, and preferences, as well as facilitating and expediting exchange.
Marketing Mix: Kotler (2008). “is a collection of controllable tactical marketing tools – product, price, place, and promotion – that the firm uses to get the desired responses in the target market.
PRODUCT: Anything that may be presented to a market for attention, acquisition, or consumption in order to meet a desire or need.
DISTRIBUTION: This term refers to the transfer of title to goods and their passage from the site of production to the point of consumption.
PHYSICAL DISTRIBUTION: This is the movement of materials, finished items, and related information from the point of origin to the point of consumption in order to meet consumer needs while being profitable.
CHANNEL OF DISTRIBUTION: This refers to the road or process used in transferring title to a product, as well as the individuals and institutions involved in the distribution of products from points of production to locations of consumption.
Consumer goods are items purchased for personal or home use.
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