Marketing Channel Conduct and Margin on Performance of Soft Drink Distributors in Maiduguri, Borno state, Nigeria

• Main Authors: Mustapha, Bintu, Ibrahim, Maryam Imam
• Format: Conference or Workshop Item
• Language: English
• Published: 2017
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/23682/1/CBMM%202017%20%2078.pdf; http://repo.uum.edu.my/23682/

This study investigates the causal relationship between soft drinks marketing channel conduct and margin on the performance of distributors in Maiduguri, Nigeria.Specifically, the study focuses on the different channels involved, power relationship and margin determinant on the general performance in terms of profitability, sales output, and customer attraction.Structured questionnaires was used to collect data from 120 Soft Drink marketers (comprising of producers wholesalers and retailers) using purposive and simple random sampling technique from marketers and Distributors in Maiduguri metropolis. Analytical tools used were descriptive statistics, market margin and multiple regression analysis.The result showed a margin of 39.8% which could be attributed to the marketing functions. The study identified a decentralized distribution channel in the area. Regression analysis revealed an R2 of 63.8%, F-value of 8.93 and a very low standard error of 0.38889.The result further revealed that initial capital, initial investment, and handling charges were positive and significant at different levels indicating that they were the major determinants of profitability, sales output, and customer attraction in the area.It is recommended that marketers should form a strong co-operative society in the area.There is also a need for government intervention by reducing tax and providing license to increase the number of micro-credit finance institutions.