PROBLEMS AND PROSPECTS OF DISTRIBUTING PAINTS IN NIGERIA
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PROBLEMS AND PROSPECTS OF DISTRIBUTING PAINTS IN NIGERIA
ABSTRACT
This study investigates the issues and potential of distributing paints in Nigeria, using Berger Paint Nigeria Pic as a “case study.” The study investigates whether middlemen should be influenced to avoid excessive price charging and hoarding,
whether the selection of night middlemen has an impact on the effectiveness of the company’s distribution system, whether proximity to the depot location should be considered when appointing distributors, and whether the concept of order processing cycle meets the requirements of an effective distribution system.
The hypothesis tests conducted reveal that distributors should be influenced, effective distributor selection should be conducted, the location of the depot should be considered when appointing distributors, and the concept of processing cycle meets the requirements of a good distribution system.
The report suggests that applicants for distributorship of the company’s paints be evaluated financially before making appointments. The report also concludes that depotlocation, knowledgeable, and financially strong distributors are critical for profitable performance.Chapter one
INTRODUCTION
1.1 Background of the Study
The manufacturer’s transfer of goods and their title to the eventual buyers is referred to as distribution.
This is a study project aimed at analysing the distribution chain of Berger Paints Nigeria Pic. The aim of distribution is to make things physically available from producers to purchasers, bridging the spatial and temporal gaps between the production and consumption processes.
As a result, one of the most important aspects influencing a company’s marketing performance is the selection and efficiency of its distribution channel. In reality, the importance of distribution as a component of the marketing mix cannot be overstated,
because without it, nothing generated by producers can reach the final customers. With the various paint lines produced by this corporation, this study wants to focus on the distribution of ornamental paint.
Distribution brings goods and services closer to markets, hence it plays an important part in any organization’s profit level. Product distribution is critical to a company’s survival because it prevents obsolescence, overstocking, and understocking.
1.2 PURPOSE OF STUDY
The goal of this research is to highlight the importance of distribution in Berger Paint Nigeria Pic, as well as the challenges and opportunities associated with distributing paint in Nigeria.
Also, investigate how effective distribution provides sound and real solutions to problems.
Identifying the elements that influence the company’s choice of distribution channel for its product is also crucial, despite the fact that there are many.
1.3 Research Hypothesis
The following hypotheses will be evaluated in order to give solid and authentic foundations for recognising problems and proposing appropriate solutions.
a. Middlemen should be more motivated so that effective control may be implemented to reduce excessive prices and stockpiling.
Ho= Middlemen’s motivation is not a factor that prevents them from charging exorbitant rates and hoarding.
Ho If the middlemen are motivated, they will avoid charging high rates and stockpiling.
b. Wholesaler selection and functions have an impact on the distribution system.
Ho= The effective selection of intermediaries has no bearing on the effectiveness of the organisational distribution system.
Hi= The efficient selection of middlemen will improve the efficiency of the company’s distribution system.
c. The depot location should be considered while selecting distributors.
The proximity to the depot location is irrelevant in the selection of distributors.
Hi = The proximity to the depot location should be considered when selecting wholesalers.
d. That the order processing cycle meets the requirements of the distribution system.
Ho= That the order processing cycle does not meet the requirements of the distribution system.
Hello, the order processing cycle met the requirements of the distribution system.
1.4 Significance of the Study
This research study is important because it will help the company in question correct any anomalies in their distribution system, determine the strategies to be used in locating their depots throughout the country,
determine whether the selection and function of marketing intermediaries have any effect on the distribution system, and finally, determine whether the order processing cycle meets the requirements of the channel system.
1.5 Scope of Study
The study will look at the problem and potential of distributing paints in Nigeria. This study will only look at Berger Paints Nigeria Plc’s Decorative Division and how they distribute their paints around the country.
Berger Paints Nigeria uses a variety of distribution routes. As a result, distribution policy decisions, the mode and pattern of distribution networks used, and how these affect the effectiveness of paint distribution in Nigeria will be investigated.
1.6 Research Problems
The problem statement of this research project is discussed as follows.
i. Will middlemen be better incentivized to exercise effective control in order to minimise excessive prices?
ii. Does the selection and role of marketing intermediaries (wholesaler, retailer) have an impact on the distribution system?
iii. Should the depot location be considered while choosing distributors?
IV. Does the order processing cycle meet the requirements of the distribution channel system?
1.7 Foreseeable Limitations
Like other researchers, there is little doubt that the research will be mostly dependent on funding, time, and personal competence to carry out the research.
i. Time is one of the most significant constraints so far because the time allotted for project work or research will not be adequate for successful research.
ii. Personal capability, the inability of Berger Paints Nigeria Plc employees to provide critical knowledge about the organisation that may be required for a research project or research activity.
iii. Given the country’s economic status, travelling from Ilaro to Lagos may be too expensive.
iv. Restrictions on access to the strategic department, from which relevant information can be obtained.
1.8 Historical Background of the Company
Berger Paints Nigeria Plc is a subsidiary of Julius Berger International. The company began operations in Nigeria in 1962 as British Paints (W.A. Limited).
Berger Jenson and Nicholson acquired the company in 1969, and its name was changed to Berger Paints Nigeria Plc. The company is Nigeria’s largest producer of paint products, with two plants, one in Port-Harcourt and the other in Oba Akran Avenue, Ikeja, Lagos State, which serves as the headquarters.
Berger paints products offer colour protection and durability for a wide range of applications around the world. Colour is used to promote safety by aiding in recognition and durability in the protection of buildings, vehicles, and ships.
Berger Paints also serves homeowners, industries, and communities. Professional decorators rely on Berger Paints supplies to make paints for every type of job on every type of structure, vehicle, and ship practically anywhere in the world.
Berger Paints Nigeria Pic has a huge number of depots or distributors throughout the country and is even proposing a new facility to ensure the company’s seamless operation and improvement.
Berger offers the following paint products:
I. Automotive
2. Decorative
3. Marine, and
IV. Industrial.
They also offer some supplementary services, like
i. Technical services.
ii. Chemical and
III. Equipment.
Thus, Berger Paints Nigeria’s products might be listed as follows in the product range.
• Luxol
· Wood finishes.
· Chemical pretreatments
· Show concludes.
· General metal finishes and printers.
· Domestic appliance finishes.
1.9 Definition of Terms
i. Risk Taking: This is the assumption of risks associated with carrying out channel work.
ii. Middlemen: This term refers to an individual or business firm that acts as a liaison between producers and ultimate consumers in order to transfer title to goods.
iii. Depots: A depot is a location where paints or items are held outside of the company’s premises to ensure timely delivery to consumers.
iv. Distribution: The transfer of goods or paints from production to consumption.
v. Paints: These are solid colourants that can be blended with oil or other liquids to add colour to a surface.
vi. Users: Refers to persons who utilise the paint or product.
vii. Financing: This refers to the acquisition and distribution of funds to cover the cost of
The channel work by the company is included.
viii. Channel members: These are the individuals or entities who fulfil all of the duties required to transport a product and its title from the place of production to the site of consumption.
xi. Physical distribution: This includes transporting the product or paint and storing it.
x. Channel of distribution: The path taken by the product from the place of production to the point of consumption.
Producer, retailer, and consumer
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