ABSTRACT
The main objective of a manufacturing organization in
the past was to manufacture and sell, but recent marketing dynamics has
changed this my opic stance. Today manufacturers find out what consumers
want, and what they want to buy, as only then, will be the
certainty that the product can be sold profitably, and also offers a good return on the investment. But inspite of
efforts, human and materials put into concept and development of a product they will still not be shelves and retail
outlets if a proper
distribution channel is not identified.
The study set out to examine the effects of
distribution channel on effective market share development in enhancing
organizational performance with special reference to Lisabi Mill Ltd,
Lagos.
Using the descriptive study approach,
the study aid a
cross sectional research design with the use of structural question. Data
emanating from the two principals source of data-primary and secondary source were analyzed using descriptive
statistics, and chi-square statistics to test the articulated hypothesis.
The study revealed that distribution
channel is an important variable that aids the spread and reach of a product. However, this is not
visible or quantifiable like other elements of marketing.
TABLE OF CONTENTS
Title page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of contents vi
List of table/figures vii
CHAPTER ONE: INTRODUCTION
1.1 Background of the study 1
1.2 Statement of problems 2
1.3 Objectives of the study 3
1.4 Research question 3
1.5 Research Hypothesis 4
1.6 Significance of the study 4
1.7 Limitation of the study 5
1.8 Definition of the terms 5
CHAPTER TWO: LITERATURE REVIEW
2.1 What is Marketing 7
2.2 Distribution and programme 8
2.3 Distribution policy 9
2.4 Distribution channel 11
2.5 Distribution systems of
Lisabi Mills Ltd 14
2.6 Channel Selection Objectives 16
2.7 Factors that affect
Distribution channel selection
objectives 17
CHAPTER THREE: METHODOLOGY
3.1 Research Design 21
3.2 Sampling Procedure 21
3.3 Method of Data collection 23
3.4 Research instrument 24
3.5 Validation of Research
instrument 24
3.6 Data analytical techniques 24
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Questionnaire retrieved 26
4.2 Analysis of questionnaire 26
4.3 Analysis of respondents view 33
4.4 Test of Hypothesis 34
4.5 Interview reports 37
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of findings
5.2 Conclusion
5.3 Recommendation
Bibliography
Questionnaire
LISTS OF
FIGURES/TABLES
Figure 2.1 Distribution channel for consumers’ goods
Figure 2.2 Distribution channel for industrial goods
Figure 2.3 Distribution channel of Lisabi Mills Ltd
Table 4.1 Sex distribution of respondents
Table 4.2 Age distribution of respondents
Table 4.3 Marital statuses
Table 4.4 Educational Background
Table 4.5 Consumer conveniences
Table 4.6 Frequency of purchase of product
Table 4.7 Respondents awareness of product
Table 4.8 Convenience of purchase
Table 4.9 Substitute for product
Table 4.10 Nearness of product to respondents
Table 4.11 Motivating for respondent search
Table 4.12 Chi-square distribution
Table 4.13 Analysis of respondents view
Table 4.14 Test of hypothesis
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
In the past years, the main aim of business organization
was to Manufacture and sell, but recent marketing dynamic has change this my
topic notion of our poor industrialists with finding out what consumers want
and buy, as only then will there be certainty that the product can be sold
profitability and also offer return on investment. Previously, product departments
produce what they want for marketing department, but now marketing department
request for what consumers want from the company thus indicating what is to be
produced.
Marketing has been defined by different authors in
several ways, while Kotler, p (1984) & Bolt D.W (1987) see it as an attempt but a manufacturer
of goods\provider of services, or its agent to present a product or service in
a manner that will be acceptable to its numerous customers both prospective
existing ones, Henry, H (1986) & Foster, D (1982) view it as the execution
of those business function that direct flow of goods and services the producer
to the consumer. To achieve this, the market adopts the product planning,
pricing, promotion and place of marketing in a way that the product would be
developed to satisfy the need of their consumers.
Appreciating these needs, marketing also provides
products defined to satisfy them either in unit or in-group. As a result,
consumers are faced with taking a decision on what product best suit their need.
Realizing the problem of consumers, marketing managers with help of research
and development, design information system and program which guides the consumers
in analyzing each product and take appropriate decision on which product to
purchase.
1.2 STATEMENT OF PROBLEM
It has been discovered that in-spite of efforts, human
and materials put into conception and development of a product, they were still
not visible on shelves and shop stands.
I this regard, the following questions come to mind of
what use is good product if the questions to be answered are: after all efforts
by the manufacturer in producing it acceptably, fixing a competitive price, backed
up with promotion and advertising, when the product is not getting to the
consumers as a result of inappropriate marketing channel I the consumers search
for the product a result of ineffective management of channel mix the marketing
managers?
Why are these products missing on shelves? If these are
competitive product what advantages has it over the missing product on display?
If it is distribution advantages, what procedure was used in channel selection for the product that is missing on shelves? What channel
lines is adopted for
the product? Who is responsible for the channel management and how efficient is
the channel mix? How often does he evaluate the channels to monitor the
performance? What alternative are available?
Answer must be sought for these questions, and related
issues researched, re-assessed and address accordingly to achieve an effectives
market share development for a product in the physical distribution of the
product of manufacturing company.
1.3 OBJECTIVES OF THE STUDY
The main objective of this study is to study the effect
of distribution channel on effective Market share development in enhancing organisation
performance for a product. More specifically, the study aims at;
i. Identifying the problem associated with
channel selection and distribution of products
ii. Ascertaining the scope and importance of
distribution channel as it relates to marketing mix
iii. Identifying
the distribution channels of products in Lisabi Mills
iv. Analyzing the effectiveness of the channels
in product delivery to consumer
v. Making recommendations/suggestions based
on research finding for effective development of products market share.
1.4 RESEARCH QUESTIONS
The research among other thing will try to find out if:
1. If channel is an important variable of
distribution that aids the reach or spread of a consumer product.
2. If improper channel management could have
negative on company's market share.
3. If poor market visibility/availability
could contribute to loss of confidence of the Consumer on the manufacturer.
4. If easy access to products contribution
to consumer purchase decision at point of share (POS)
1.5 RESEARCH HYPOTHESIS
The following research hypothesis will be tested.
HYPOTHESIS 1
Ho: Channel is not
an important variable that aids or spread of production.
Hi: Channel is an important variable that aids
the research or spread of production.
HYPOTHESIS 2
Ho: improper
management of channel has negative effect on company Share.
1.6 SIGNIFICANCE
OF STUDY
This study is significant in several respects. First and
foremost, it seeks to highlight the important of product market through proper
planning of distribution channels in the manufacturing sector. This is because
an understanding of the dynamic of market channels in product distribution
enables organizations to achieve their sales targets and other related corporate
goal and insures maximized profit vis-o-vis high sale volume and market share
retention.
The study is significant also as it will enable
manufacturing concerns as well as other market related corporate bodies to
realize the ethical position of marketing channels identification and creation
in the things in the effectiveness of operation and achievement of corporate
goals.
Most importantly this study will contribute to knowledge
by expanding existing literature on the subject, and provide a balanced
framework for manufacturing set-ups for effective market planning and product
distribution.
1.7 LIMITATION OF THE STUDY
As a result of time constraint and are of specification,
this dissertation will be restricted to the finished goods distribution and
will be specific about consumer goods.
The distribution of raw materials and technical materials
will not be part of this dissertation so that other researchers whose
specifications are relevant to it could have opportunities.
1.8 DEFINITION OF TERMS
Channel: This is the activity that makes a product available to customers where and
when they want to purchase them
Brand loyalty: patronage
of product by customers no matter the substitute and price of that product in
existence.
Customer: This is
the end user of product
P.O.S: Point
of sales.
4PS: This is the strategy used by marketers and its stands for
product planning, pricing, promotion and place.
Marketing Mix: The controllable variables, which company puts together
to satisfy a Target group.
Market: A group of potential customers with similar needs
Sales Decline: product life cycle stage is when the new products replace
the old ones.
Promotion: communicating information between
seller and buyer to influence Attitude and behavior.
Target Market: This is a selection of the market segment (a group of
consumers to whom the company which it appeal.
Sales: turnover of a particular product, exchange of goods or
properties for money.
Strategy: This is the chosen course of action
to be taken in pursuing an objective.
Distribution: The process involved in getting products or services to
the final Consumers.
Middlemen: A person who buys goods from producers and sells them to
retailers or Consumers.
Retailer: A merchant who sells goods at retail. That is someone who
sells goods in Small quantity directly to consumers.
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