Understanding the distribution channels of fast moving consumable goods (FMCG) of food industry in Nigeria
Odupitan, Aminat (2017)
Odupitan, Aminat
Vaasan ammattikorkeakoulu
2017
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2017120820329
https://urn.fi/URN:NBN:fi:amk-2017120820329
Tiivistelmä
The Fast Moving Consumable Goods (FMCG) sector in Nigeria is one of the largest sectors in the country and its contribution to the economy cannot be over-looked. This sector is highly important in the food industries which makes this study to focus on its distribution channels. This study also focus on its challenges that is related to the distribution channels.
This study aimed to help foreign investors that are investing into the food sector as well as students, and sales representatives of the companies to understand the distribution channel that is used in the sector by FMCG Companies in Nigeria. Some theories of marketing distribution channels are used and which are collected from different sources such as books, articles and journals.
Both qualitative and quantitative research approach was used to elicit the information required for this study. A random sampling method was used to select the participants of this study. The study population in this study were FMCG companies in Lagos industrial area and managers and distribution staff of FMCG companies. Questionnaires and phone interviews were used to obtain information from respondents. Reliability and validity tests were conducted to ascertain the precision of the data tools used in this study.
The findings in this study revealed the types of distribution channels that are used by fast moving consumable goods companies and some of the problems encountered the problems which include; defaults in payment, stolen goods, poor infrastructure, presence of counterfeit goods in the market place, quality issues,
discriminatory trade offers, inadequate training of sales personnel and etc.
The analysis of findings in this study suggest that these distribution channels may affect the profitability, sales turnover, market share, productivity and revenue generated by FMCG companies. Furthermore, FMCG companies must be willing to monitor their territory management, business status, financial capability and infrastructure compliance to ensure the efficacy of distribution strategies.
This study aimed to help foreign investors that are investing into the food sector as well as students, and sales representatives of the companies to understand the distribution channel that is used in the sector by FMCG Companies in Nigeria. Some theories of marketing distribution channels are used and which are collected from different sources such as books, articles and journals.
Both qualitative and quantitative research approach was used to elicit the information required for this study. A random sampling method was used to select the participants of this study. The study population in this study were FMCG companies in Lagos industrial area and managers and distribution staff of FMCG companies. Questionnaires and phone interviews were used to obtain information from respondents. Reliability and validity tests were conducted to ascertain the precision of the data tools used in this study.
The findings in this study revealed the types of distribution channels that are used by fast moving consumable goods companies and some of the problems encountered the problems which include; defaults in payment, stolen goods, poor infrastructure, presence of counterfeit goods in the market place, quality issues,
discriminatory trade offers, inadequate training of sales personnel and etc.
The analysis of findings in this study suggest that these distribution channels may affect the profitability, sales turnover, market share, productivity and revenue generated by FMCG companies. Furthermore, FMCG companies must be willing to monitor their territory management, business status, financial capability and infrastructure compliance to ensure the efficacy of distribution strategies.