Distributional strategies and performance of manufacturing firms in Ikeja

Abstract

Distribution plays a great role within the marketing mix. A good distribution strategy can maximize an organization's revenue and profits but a bad and unplanned distribution strategy can lead to losses. In view of the cruciality of distributional strategy to the performance of manufacturing firms, this study focuses on distributional strategy and performance of manufacturing firms in Ikeja, Lagos state. The aim of the study is to investigate the relationship between the distribution strategies and the performance of firms in Ikeja, Lagos State-Nigeria. The study adopts survey design. A sample of 234 respondents cutting across relevant departments of the selected firms was chosen, out of which 205 respondents returned their questionnaires for analysis. The collected data was analysed using descriptive statistics in the form of percentages and inferential statistics in the forms of Pearson Moment Correlation and simple regression analysis with significance level of 0.05 to test the hypotheses. From the findings of the study, intensive, selective and exclusive distribution strategies have a statistically significant positive correlation with the firms' performance. It concludes that there is positive relationship between distribution strategies and the performance of manufacturing firms in Ikeja, Lagos State-Nigeria. The study recommends that manufacturing firms in Ikeja area should invest more on the usage of the distribution strategies since they have the capacity of improving their performance.