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1.1.          INTRODUCTION

Marketing is a process whose principle is to promote and facilitate exchange through marketing individuals and groups obtain what they need and want by exchanging produce and services with other parties such a process can occur only when there are at least two parties each of which has something to offer. In addition exchange cannot occur unless the parties are able to communicate about how to deliver what they offer.

Marketing is not a conceive process, all parties must be free to accept or reject what others are offering. So defined, marketing is distinguished from other modes of obtaining desired goods such as through self production, bargain theft, or force (Achumsbaelal, 1994). Marketing is not confined to any particular type of economy because goods must be exchanged and therefore marked in all economies and societies except perhaps in the must primitive.

Furthermore, marketing is not a function that is limited to profit oriented business. Even such institutions as hospitals, schools and museums engage in some forms of marketing. It is a specialized discipline as well as a philosophy of doing business. As a specialized discipline it deals with the performance of those activities, which are directly involved in or facilitate the exchange function (Kotler 1980). No production of productive sector can exists unless a market exists for even if productive activities are started, the absence of sufficient market would force the cessation of such activities (Iyanda 1988).

Marketing as a philosophy is practiced in all aspects of economic life. It is vital to improving living standards, it brings about social changes and in enhancing the development of management and entrepreneurial talent in any nation (Raoend Iyenda 1983) at the top organization level, marketing makes a vital contribution to the advancement and satisfaction of human needs. It provides the means, by which organization identifies unfulfilled human needs, convert them into business opportunities and create satisfaction for others and profit for themselves. The capacity of organizations to survive and prosper depends on their ability to continually create value for target markets in the world of ever changing human needs and wants.

The task of distribution is to make goods physically available to buyers. Thus bridge the gaps of space and time between production and usage or consumption. The advent of structural advancement programme has seen the emergence of rearrangement in the distribution system in the country (Emoekpere, 1989). It must be mentioned that the role of marketing and distribution in any economy can only be effectively played when there are adequate marketing infrastructures (Osuagwu et al 1998) Transportation networks such as road rail, sea and sire services must be effective in bridging gap between production and consumption.

Communication media that are adequate in terms of spread and variety print and electronic media must be available.

In general, the goals of manufacturers is the choice of channels that ensures desired market exposure for their products, prompt delivery to their customers, low distribution cost, high sales turnover and maximum profit. However, the nature of the product, the environment which the firm must operate, and the specific marketing objectives of the firm, all interact to determine the channel structure the firm will choose. Although, in times past, the “seller” market situation has characterized the selling of manufactured goods in Nigeria thus has given way the face competition today resulting in low sales turnout, reduced market share, increased operating costs and dwelling and dwindling profit. In a situation like this, an efficient customer service may be the only means of ensuring customer’s loyalty. It is therefore necessary that channels to eases the degree of effectiveness in terms of attainment of the marketing objectives.

Another reason calling for evaluation of the distribution channels are the need to maintain channel goodwill and control once the channel has been selected. Conflicts to ensure from time to time, which may be due to the decision, goals end communication. Thus by evaluating the channel management will be to asses the extent of the conflicts and work towards resolving them. Increased efficiency and enhanced effectiveness of the distribution system will always improve customer services. This may be possible by minimizing stock outs, solidifying relation with customers, improving market coverage, better utilization of market personnel to create demands as well as engaging in cost reduction activities such as balancing inventory level to match customer’s requirements (Kotler, 1996).

Presently, Guinness, Nigeria Plc market seems concentrated in Lagos and there is no need to effectively penetrate other areas outside Lagos, it is also becoming increasingly necessary to evaluate the current channel structure, and discover other strategies that will best fulfill customer’s requirement whilst fulfilling company’s goals of effective reach and profitability. This research is an attempt to answer these seemingly differing objectives.


With the interest rate fixed, there is an acute shortage of loanable funds to facilitate real sector investment. Producers are confronted with higher unit production cost, low capacity utilization, diminishing disposal income, high inventory and debtor’s level and in some cases outright factory closures. All these account for local production being more expensive instead of being more competitive when compared with imported Guinness drinks.

The significant high inflation rate reduces consumer’s purchasing power. Dealers are caution regarded building up of stock due to the seemingly unending socio-economic instability. Producers found it almost impossible to increase selling price to recoup the upsurge in production costs and are increasing for acing chargers. Manufacturing concern recorded a significant build up of finished goods, while those who succeeded in selling did so with increased debts level at lower margins.

Than the aims of the company regarded efficient / effective distribution can be achieved and balanced between marketing the products readily available with the minimization of total costs increased on inventory transportation and storage.

Thus other problems to be examined are:

(1)             The examination of how the organization segmented its market

(2)             Investigate low distribution strategies of the organization had contributed to the consumers satisfaction and create loyalty

(3)             The identification of the distribution strategies of the organization

(4)             Determination of whether the distribution strategy of the organization is effective in meeting distribution objective of the organization

(5)             Examination of the adequacy of the current distribution from strategies in the organization.

(6)             Ascertain the distributive goal of the organization

(7)              The assessment of the distribution channels with a view to identifying the weakness and strength in order to reposition the channels strategy for effective distribution network.

1.3.          PURPOSE OF STUDY

The main purpose of undertaking this study is to access the effectiveness of the current distribution channels structure of Guinness Nigeria Plc.

The purpose of this study is as follows:

(1)       Examine low Guinness Nigeria Plc products spread in the market segments

(2)       To investigate how distribution strategies of Guinness Nigeria Plc contributes to consumer satisfaction/loyalty

(3)       To identify the distribution strategies of Guinness Nigeria Plc

(4)       To determine whether the distribution strategies of Guinness Nigeria are reaching its customers.

(5)       To determine how adequate the current distribution strategies of Guinness Nigeria are reaching its customers

(6)       To determine Guinness Plc’s distribution goal

(7)       To determine how Guinness Nigeria Plc’s distribution goal relates to its overall marketing objectives.

(8)       To carryout assessment of the distribution channels of Guinness Nigeria Plc with a view to identifying the strength and weaknesses in the channels.

(9)       To proffer solutions that will help Guinness Nigeria Plc over come its channel weaknesses.


The following research questions will be answered by this research.

(a)              How is Guinness Nigeria Plc’s product spread in the market segment?

(b)             How the distribution strategy of Guinness Nigeria Plc does contribute to consumer satisfaction/loyalty?

(c)              What are the distribution strategies of Guinness Nigeria Plc.

(d)             Are the distribution strategies of Guinness Nigeria Plc effective?

(e)              How adequately are the current distribution strategies of Guinness Nigeria Plc reaching its customers?

(f)               What are Guinness Nigeria’s plc distribution goals?

(g)             How are Guinness Nigeria Plc distribution goals related to its overall marketing objective?

(h)             What are the strength and weaknesses in the channels of Guinness Plc.

(i)               How can Guinness Nigeria Plc overcome its channels weakness?


The marketing discipline had its origin in the early 20th century as an offspring of economics. Economics Science had neglected the role of middlemen and the role of function other than price in the determination of demand levels and characteristics.

Early marketing economists examined agricultural and industrial markets and described them in greater detail than the classical economists. This examination resulted in the development of three approaches to the analysis of marketing activity, the commodity, the institution and the function. Commodity analysis studies the ways in which a product or product group is brought to market. A product analysis of milk for example, traces the way in which milk is collected at individual’s daily firms, imported to and processed at local daily cooperation and shipped to grocers and supermarkets for consumer’s purchase. Institution analysis describes the type of business that plays a prevalent role in marketing. Such as wholesaler or retail institutions. For instance, an institution analysis of clothing, wholesaler examines the ongoing concern that wholesalers face on order to ensure both the correct supply for their customer and the appropriate inventory and shipping capabilities.

As a functional analysis examines the general tasks that marketing performs. For example, any marketing effort must ensure that the product is transported from the suppler to the customer.

In some industries, this transportation function may be handled by a truck, while in it may be done by mail, television signal, or all those institutions perform the same function.

As the study of marketing become more prevalent throughout the 20th century, large comprises particularly mass consumer manufacturers begin to recognize the importance of market research, better product design affection with consumers in the success of their brands moved into the industrial goods sector and subsequently later moved into the industrial goods sector and subsequently into the service sector. It soon became apparent that organizations and individuals market goods

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