1.1 Background of the Study
As industries engage in production of goods and services, they need
to make them available to consumers at the right time right place and at
the least cost (price).All these cannot be without effective and
efficient system put in place. Distribution strategy is the transfer of
products from one place to another or from one manufacturer such as
wholesaler, retailer, agents and other means such as transportation,
communication warehousing etc. (Jobber 2002). Distribution contributes
no profit to companies account.
However, without satisfactory distribution drastically which could
lead to over stock, due to low sales or patronage of consumers,
redundancy in production due to shortage of low material.Dangote group
of company was founded in 1977 with the formation ofAlco International
Limited. Subsequently Dangote Nigeria Limited wasincorporated during the
1980s and 1990s, the group ventured into theimportation of sugar, milk,
flour, fish, rice, cement and iron rods, later,the group embarked on
the haulage business, which started with 60struck under Dangote
Dangote industries limited was incorporated in-order to sustain
thegroups market leadership in trading commodities and to expand
intomanufacturing of food, clothing and build materials,
Focus was placed on the following; sugar refining, flour milling, pastaproduction, salt processing, bulk cement bagging, oil and gasexportation,
real estate, propylene bag manufacturing, haulage, textiles,maritime
operations and telecommunications. The technical departments specialize
through its branches and the stores of approved dealer through the
century in the sales and servicing of a wide range of technical
products. The company acts through this department as major stockiest
and supplier of a comprehensive industry and all types of lighting
fitting including water industrial.
- Ø The general merchandise department with connection through leading
manufacturers in Nigeria and all over the wide range of hardware.
- Ø The report service department offer warehouse and delivery
services to local manufacturers. This enables them to maintain better
stock at all major centers for supply to their distributors.
1.2 Statement of the Problem
The importance of distribution system has been neglected in favour of
other marketing functions, manufacturers however, often forget the fact
that the only marketing function that linked the consumer products and
marketing is the distribution network. The negligence of producers as
matter of facts has hampered the effectiveness of distribution system to
The problem of poor Distribution Strategy which are usually defective
due to lack of skills and expertise and reliable and accurate
information on the sides of the managers, which will often leads to poor
forecast and formulation of vague goals and objectives. Also poor
policies and implementation strategies is yet another problem which in
most cases leads to deviation of results from the sets goals, and poor
Finally, the very dynamic nature of the business environment which
makes forecasting practically impossible, sometimes Jeopardizes the
organizational policy.Distribution strategy attracts more business
partner and improves company development through satisfying her
customers. Companies like Dangote Group of Company require good
distribution system to meet the supply with her competitors such
Unilever Nigeria, PIc Guinness Nigeria Plc and Nigeria Breweries Plc.).
It is based on the above that the researcher tends to investigate
Distribution strategies and customer satisfaction of selected
manufacturing firms in Port Harcourt.
1.3 Purpose of the Study
The major purpose of this research is to critically examine the
distribution strategies and customer satisfaction in manufacturing
1. To examine the association between Intensive Distribution and customer satisfaction in Port Harcourt.
2. To examine the association between Extensive Distributionand customer satisfaction in Port Harcourt.
3. To examine the association between Selective Distribution and customer satisfaction in Port Harcourt
1.4 Research Questions
To what extent will quality service bring about customer loyalty?
1. To what extent does Intensive Distribution affect customer satisfaction in Port Harcourt?
2. To what extent does Extensive Distribution affect customer satisfaction in Port Harcourt?
3. To what extent does Selective Distributive affect customer satisfaction in Port Harcourt?
Source: Conceptualized from literature, 2016
1.6 Research Hypotheses
H01: These are significant relationship between Intensive Distribution and Repeat Purchase.
H02: These is significant relationship between Extensive Distribution and Customer Loyalty
H03: These is significant relationship between Selective Distribution and Customer Advocacy
1.7 Scope of the Study
The scope of this study covers Distribution Strategy and Customer
Satisfaction. This research work will be restricted to the operations of
manufacturing firms in Port Harcourt. This will enable the researchers
to generalize and affirm how effective Distribution Strategy has been
able to bring about customer satisfaction in organizations.
1.8 Significance of the study
This research work shall be of great benefit to.
The marketer: Who will find the findings of this work very useful,
this is because effective distribution strategy expose and make it easy
for customer to make order or accept order, it will also make it easy
for customers to get what they want at the right time, right place form
and the right source. Thus, the study of what distribution strategy to
adopt to increase productivity will help the marketer realize his
mistakes of the past.
The Company: Will find this research finding guide valuable, this is
because the findings will enable them known their deficiencies and how
to correct them.Future Researchers: Will also benefit a lot from this
study this is because they may likely want to expand or change their
strategy, this work will serve as a stepping stone.
1.9 Definition of Terms
Distribution Strategy: A plan created by management
of a manufacturing business that specifies how firm intends to transfer
its products to intermediaries, retailers and end consumers.
Consumer: Is end user of company goods and or services.
Satisfaction: The fulfillment or gratification of a desire, need, or appetite.
Channel of Distribution: The set of all individual
and firms that take assist in transferring title of particular goods and
services as its move from the producers to the consumers.
Extensive Distribution is often used in an attempt to achievemarket penetration by makinginformation about a product or product line, as well as the product themselves, available to a large number of individuals. The opposite of selective distribution.