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.

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.

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