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 should be 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 depot location,
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 different lines 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.
1.2 PURPOSE OF STUDY
The purpose of carrying out this study is to emphasis on
importance of distribution in Berger Paint Nigeria Pic, the problems and
prospects of distributing paint in Nigeria.
Also, to examine how effective distribution provide sound
and authentic solution to the problems.
It is also important to identify the factors influencing
the company's choice of distribution channel for its product in spite of the
numerous ones.
1.3 RESEARCH HYPOTHESES
The following hypotheses shall be tested in other to
provide sound and authentic bases for identifying the problems and proffering
relevant solutions.
a. That the middlemen be better motivated,
so that effective control be taken in order to reduce high prices and hoarding.
Ho = That
motivation of middlemen is not a factor to make them avoid charging high prices
and hoarding.
Hi = That
the middlemen will avoid charging high prices and hoarding if well motivated.
b. That selection and functions of the
wholesalers have any effects on distribution system.
Ho = That
effective selection of the middlemen will has no relevance to the effectiveness
of the organizational distribution system.
Hi = That
effective selection of the middlemen will enhance the effectiveness of the
company's distribution system.
c. That depot
location be consider when selecting distributors
Ho = That
nearness to depot location is not relevant in the selection of distributors.
Hi = That
nearness to depot location should be considered in the selection of
distributors.
d. That the order processing cycle satisfies
the requirement of distribution system.
Ho = That
the order processing cycle does not satisfy the requirement of distribution system
Hi = That
the order processing cycle satisfied the requirement of distribution system.
1.4 SIGNIFICANCE OF THE STUDY
This research study is important because of the benefits
to be derived by the company in question to correct the anomalies that their
distribution system might suffer in
determine the strategies to be adopted in locating their depots all over the
parts of the country, know whether the selection and function of marketing
intermediaries have any effect on
distribution system and finally, to know whether the order processing cycle
satisfies the requirement of channel system.
1.5 SCOPE OF STUDY
The study will be dealing with the problem and prospects
of distributing paints in Nigeria. This study will cover only Decorative Division
of Berger Paints Nigeria Plc and their distribution system of this paints to
the various parts of the country.
Berger Paints Nigeria Pic make use of various channels of
distribution. Therefore, distribution policy decision, mode and pattern of
distribution network they adopt and how these affect the effectiveness of
distributing paints in Nigeria will be examined.
1.6 RESEARCH PROBLEMS
The statement of problems of this research study are
discussed as follows
i. Do the middlemen be better motivated so
that an effective control be taken in order to reduce high price?
ii. Does the selection and function of
marketing intermediaries (wholesaler, retailer) have any effect on distribution
system?
iii. Should the
depot location be considered when selecting distributors?
iv. Does the order processing cycle satisfies
the requirement of distribution channel system?
1.7 FORESEEABLE LIMITATIONS
Like most of the researchers, there is no doubt that the
research will depend mostly on money, time and personal capability to carry out
the research.
i. Time is one of the most great limitation
so far because the time scheduled for the project work or the research will not
be enough or sufficient for the effective research work.
ii. Personal capability, the inability of the
personal of Berger Paints Nigeria Plc to art with vital information about the
company that might be needed for the research project or research work.
iii. Cost of traveling from Ilaro to Lagos might
be quite high considering the economic situation of the country.
iv. Restrictions from getting to strategic department
from where necessary information can be gathered.
1.8 HISTORICAL BACKGROUND OF THE COMPANY
Berger Paints Nigeria Plc is a subsidiary of Julius
Berger International. The company commenced its operation in Nigeria 1962 as
British paints (W.A. Limited).
The company was acquired in 1969 by Berger Jenson and
Nicholson, the company's name was then changed to Berger Paints Nigeria Plc.
The company is the largest producer of paints product in Nigeria and now have
two factories, with the Head Office, and factory at Port-Harcourt and other one
at Oba Akran Avenue, Ikeja, Lagos State which is the headquarter.
Berger paints products provide colour protection and
durability for an infinite variety of application throughout the world. Colour to improve safety in order to aid
recognition and durability in buildings, vehicles and ships protection. The
company also serves householders, industries and communities’ professional
decorators rely on Berger Paints products to produce paints for every kind of
job on every kind of buildings, vehicles and ships almost everywhere in the
world.
For the smooth and improvement of the company's Berger
Paints Nigeria Pic have a large number of depots or distributors all over the
country and even proposing to have new factory.
Berger paint products are as follows:
i. Automotive
ii. Decorative
iii. Marine,
and
iv. Industrial.
They also provide some ancillary service like
i. Technical
services
ii. Chemicals,
and
iii. Equipments.
Thus, the product of Berger Paints Nigeria can be listed
as below in the product range.
·
Luxol
·
Wood finishes
·
Chemical
pre-treatments
·
Show finishes
·
General metal
finishes/printers
·
Domestic appliance
finishes
1.9 DEFINITION OF TERMS
i. Risk Taking: This is the assumption of
risks in connection with carrying out the channel work.
ii. Middlemen: It refers to as an individual
or business firm operating between producers and the final consumer for the
purpose of transferring tittle to goods.
iii. Depots: It refers to a place where paints
or goods are stored outside the company premises to ensure ease of reaching the
consumers in time.
iv. Distribution: This refers to as the
movement of goods or paints from the points of production to the final points
of consumption.
v. Paints: These are solid colouring matter
to be mixed with oil or other liquid and used to give colour to a surface.
vi. Users: Users refer to as an individuals
that make use of the paint or product.
vii. Financing:
This is the acquisition and dispersal of funds to cover the cost of
the channel work by the company involve.
viii. Channel members: These are the set of
people or institutions which performs all the functions needed to move a
products and its title from the point of production to the point of
consumption.
xi. Physical distribution: This is the
transportation of the product or paint and storage of the product itself.
x. Channel of distribution: This is the route
taken by the product as it moves from the point of production to the point of
consumption.
Producer Retailer Consumer
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