Context of the Study
Over the years, many manufacturers have lost the capability for direct marketing and now rely on brokers to save money on massive distribution and a substantial reduction in labor volume. Even if there are abundant financial resources, using these resources in one’s primary profession is more efficient; consequently, the benefits of having a distribution channel are evident (Kotler & Armstrong, 2010).
As one of the most significant distribution channels from an economic perspective, the function of distribution businesses is to transform the form of manufacturers’ goods into the form of goods desired by customers. In addition to transferring goods from the maker to the consumer, reducing time, and linking goods owners and customers, a distribution channel has additional vital functions.
For an organization to be successful, it must have an efficient distribution channel or method for transporting finished goods from the maker to the final consumers. This is due to the fact that without distribution, the best product cannot be given and the marketing mix would fail.
As a result, companies are increasingly adopting supply chain management in an effort to cut costs, boost market share and sales, and strengthen customer relationships (Ferguson 2000). The concept of utilizing an effective distribution channel as a strategic tool in the acquisition of technical goods can be viewed as a philosophy based on the belief that each firm in the supply chain directly and indirectly affects the performance of all other supply chain members, as well as, ultimately, the performance of the entire supply chain.
Effective application of this philosophy necessitates that functional and supply-chain partner activities are linked with the organization’s strategy and harmonized with its organizational structure, procedures, culture, incentives, and people (Abell 1999).
Distribution station consists of a group of individuals or organizations that aid in delivering the product to the appropriate location and time. Distribution is crucial, primarily because it eventually affects the organization’s sales turnover and profit margins.
If a product is unable to reach its designated destination on time, it might competitive advantage and client retention. The retail sector is responsible for distributing finished goods to consumers and the general public. General retailers (run by individuals/families), department stores, specialized stores, and discount stores compose the retail industry.
In practice, many firms utilize a variety of channels; for example, they may supplement a direct sales staff, which calls on larger clients, with agents, who handle smaller customers and prospects. The most significant obstacle facing the retail industry is the influence of customers or buyers.
The reason for this is that buyers are becoming increasingly knowledgeable and impatient, not willing to wait any length of time for the providers’ items.
This, along with the fact that firms are now attempting to implement specific distribution strategies or practices based on their unique set of competitive priorities and business conditions in order to achieve the desired level of performance, prompted an examination of effective product distribution and organizational performance in order to determine the distribution strategy or practice that has the greatest impact on the purchase of technical goods in Nigeria.
1.2 Description of the Problem
The ineffectiveness and inefficiency of product distribution in the country are exacerbated by the country’s inadequate road infrastructure. This creates a high rate of vehicle breakdown and delays the delivery of products to the ultimate consumers.
Transportation and delivery costs have an impact on a company’s distribution strategy. These factors increase the production and market prices of goods and services, to the prejudice of ultimate consumers, and have an impact on organizational effectiveness.
Government policy is commonly viewed as a factor that may influence a company’s distribution strategy. Evidently, the government employs or selects a standing taskforce that generates revenue for the government or its agents in accordance with the law.
By requiring a tax identity number, annual official registration, stickers, and an infrastructure levy during the course of business in an area, this creates obstacles to the flow of commerce.
1.3 Investigative Questions
This study attempts to address the following questions.
I What is the frequency of Effective Product distribution and organizational effectiveness in Nigeria?
ii) What elements in Nigeria contribute to good product distribution and organizational performance?
iii) what steps are organizations making to guarantee effective product distribution in Nigeria?
1.4 Objectives of the Research
These are the aims of this investigation:
I to determine the frequency of Effective Product distribution and organizational performance in Nigeria
ii) to investigate the elements important for efficient product distribution and organizational performance in Nigeria
iii) Evaluate the activities of organizations to guarantee efficient product distribution in Nigeria
1.5 Scientific Hypothesis
The following research hypotheses will be tested:
I There is a considerable correlation between efficient product distribution and organizational performance.
ii) There is a substantial relationship between government policy and organizational effectiveness
1.6 Importance of the Research
This study aims to investigate efficient distribution and organizational effectiveness. It will therefore strive to empower management to give consumers with the correct products at the right time, place, and price, resulting in a significant portion of the company’s sales. It will also serve as a blueprint of action for start-ups and a collection of information for future research in logistics/distribution channel management of indigenous and multinational oil and gas enterprises.
1.7 Scope of the Research
This study will examine the rules for utilizing an effective distribution channel as a strategic instrument for procuring technical items. Therefore, President Paints Nigeria will serve as a case study.
1.8 Restrictions of the study
The most significant limitation of this investigation is time. This research was conducted in a considerate manner to satisfy the desires of those interested in the topic for future study, while time constraints prevented me from going farther.
1.9 Determinations of Terms
The following phrases were utilized throughout this study:
Distribution is the act of delivering or giving something to someone.
Organizational performance consists of an organization’s actual output or results assessed against its expected outputs (or goals and objectives).
Product: a prepared or refined object or substance intended for sale