THE PROBLEMS AND PROSPECTS OF DISTRIBUTING PAINTS IN NIGERIA

(A CASE STUDY OF BERGER PAINT NIGERIA PLC)

ABSTRACT

This study explores the problems and prospects of distributing paints in Nigeria with Berger Paint Nigeria Pic, as its "case study. The study considers whether the middlemen shouldbe influenced to avoid undue charging of high prices and hoarding, whether selection of the night middlemen has relevance in the effectiveness of the company's distribution system, whether nearness to depot location should be considered in appointing distributors and whether the concept of order processing cycle satisfies the requirement of an effective distribution system. The tests of hypotheses conducted reveals that the distributors should be influenced, effective selection of the distributors should be conducted, location of depot should be considered in appointing distributors while the concept of processing cycle satisfies the requirement of a good distribution system. The study recommends that the financial capability of the applicants for, distributorship of the company's paints should be considered before appointments are made. The study also notes that depotlocation, knowledgeable and financially strong distributors are essential for profitable performance.

TABLE OF CONTENTS

Title Page                                                                                                       i

Certification                                                                                                  ii

Dedication                                                                                                     iii

Acknowledgement                                                                                       iv

Abstract                                                                                                         vi

Table of Contents                                                                                         vii

CHAPTER ONE:    INTRODUCTION

1.1       Background of the study                                                                 1

1.2       Purpose of study                                                                              2

1.3       Research of hypotheses                                                                  2

1.4       Significance of the study                                                                3

1.5       Scope of study                                                                                  4

1.6       Research problems                                                                          4

1.7       Foreseeable limitation                                                                     4

1.8       Historical background of the company                                        5

1.9       Definition of terms                                                                          7

CHAPTER TWO:   LITERATURE REVIEW                       

2.1       Introduction                                                                                      8

2.2       Definitions of salient terms                                                                        8

2.3       The need for distribution channel                                                 9

2.4       The nature of distribution channel                                                            11

2.5       Middlemen selection and performance evaluation                    14

2.6       Conflicts and cooperation in the distribution channel              18

2.7       Distribution channel policy decision                                           20

2.8       Reference                                                                                          22

CHAPTER THREE:           RESEARCH METHODOLOGY

3.1       Introduction                                                                                      23

3.2       Research design                                                                               23

3.3       Sources of data                                                                                 24

3.4       Sample plan                                                                                      26

3.5       Sampling procedure                                                                         29

3.6       Research instrument                                                                                    30

3.7       Reference                                                                                          36

CHAPTER FOUR:  DATA PRESENTATION

4.1       The summary of the questionnaire                                                            37

4.2       Test of hypotheses                                                                           43

4.3       Research finding                                                                              52

CHAPTER FIVE: DISCUSSION OF FINDINGS, SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1       Discussion of research findings                                                    55

5.2       Summary                                                                                           56

5.3       Recommendation                                                                             57

5.4       Conclusion                                                                                        60

BIBLOGRAPHY                                                                                           60

APPENDICES

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Distribution involves the transfer of goods and their title to the ultimate buyers by the manufacturer.

This is a research work, which aims at analyzing the distribution system of Berger Paints Nigeria Pic. The task of distribution is to make goods physically available from the producers to the buyers and this bridge the gap of space and time between the production process and the consumption process.

Hence, the selection and efficiency of the distribution channel of a firm is one of the most critical factors that determine the company's marketing success. In fact, the importance of distribution cannot be over emphasized as one of the marketing mix because without this, anything produced by the producers cannot get to the final consumers. With differentlines of paints produce by this company this study intends to pay attentions to the distribution of decorative paints.

Since distribution brings goods and service nearer to the markets, it therefore means that it plays a vital role in profit level of any organization. Distribution of product is important and necessary for a company's existence because it also prevents products obsolescence overstocking and under stocking.