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Effect of distribution channels on market penetration: A case study of Nestlé Nigeria

Author: Obiajulu, Chinonso Benjamin; Azubuko, Chidimma Francisca; A, Bello Taofik
Publisher: Zenodo
DOI: 10.5281/zenodo.17718473
Source: https://zenodo.org/records/17718473/files/WJARR-2025-2923.pdf
Co esponding au ho : Chinonso Benjamin Obiajulu
Copy igh © 2025 Au ho (s) e ain he copy igh o his a icle. This a icle is published unde he e ms o he C ea i e Commons A ibu ion License 4.0.
E ec o dis ibu ion channels on ma ke pene a ion: A case s udy o Nes lé Nige ia
Chinonso Benjamin Obiajulu 1, *, Chidimma F ancisca Azubuko 2 and Bello Tao ik A 1
1 Depa men o Business Adminis a ion, Ahmadu Bello Uni e si y, Za ia, Nige ia.
2 Independen Resea che , Lagos, Nige ia.
Wo ld Jou nal o Ad anced Resea ch and Re iews, 2025, 27(02), 1288-1293
Publica ion his o y: Recei ed on 11 July 2025; e ised on 10Augus ; accep ed on 13Augus 2025
A icle DOI: h ps://doi.o g/10.30574/wja .2025.27.2.2923
Abs ac
This s udy in es iga es he impac o dis ibu ion channels on ma ke pene a ion, ocusing on Nes lé Nige ia in Po
Ha cou . Employing a desc ip i e esea ch design, he s udy su eyed 111 esponden s, including Nes lé employees,
dis ibu ion pa ne s, and cus ome s, wi h 100 comple ed esponses. Th ee ques ionnai es assessed in ensi e,
ex ensi e, and selec i e dis ibu ion s a egies, using a 5-poin Like scale. Da a we e analyzed wi h desc ip i e
s a is ics and Pea son P oduc Momen Co ela ion Coe icien o es ela ionships. Resul s show in ensi e dis ibu ion
s ongly enhances epea pu chases (90% ag eemen , mean 4.2, R=0.803, p<0.05), ensu ing widesp ead p oduc
a ailabili y. Ex ensi e dis ibu ion os e s cus ome loyal y (80% ag eemen , mean 4.3, R=0.713, p<0.05) by eaching
di e se ma ke s. Selec i e dis ibu ion imp o es cus ome ad ocacy (55% ag eemen , mean 3.6, R=0.713, p<0.05),
pa icula ly o p emium p oduc s, hough logis ical challenges limi i s impac . Quali a i e insigh s om 15 in e iews
highligh in ensi e dis ibu ion’s ole in accessibili y, ex ensi e dis ibu ion’s consis ency in u al a eas, and selec i e
dis ibu ion’s b and enhancemen . The s udy concludes ha op imizing hese channels d i es ma ke pene a ion by
imp o ing accessibili y, loyal y, and ad ocacy. These indings guide manu ac u e s o balance dis ibu ion s a egies o
compe i i e ad an age and u ge policymake s o suppo in as uc u e de elopmen . The esea ch unde sco es he
impo ance o ailo ed dis ibu ion in Nige ia’s as -mo ing consume goods sec o , o e ing insigh s o i ms o
enhance ma ke each and cus ome engagemen .
Keywo ds: Dis ibu ion channels; Ma ke pene a ion; In ensi e dis ibu ion; Ex ensi e dis ibu ion; Selec i e
dis ibu ion; Nes lé Nige ia
1. In oduc ion
Dis ibu ion channels a e pi o al o he success o manu ac u ing i ms, ensu ing p oduc s each consume s e icien ly
and e ec i ely, he eby d i ing ma ke pene a ion and business g ow h [1]. In Nige ia’s compe i i e as -mo ing
consume goods (FMCG) sec o , companies like Nes lé Nige ia ely on obus dis ibu ion s a egies o expand hei
ma ke p esence and enhance cus ome sa is ac ion [2]. This s udy in es iga es he e ec o dis ibu ion channels on
ma ke pene a ion, using Nes lé Nige ia as a case s udy. I ocuses on in ensi e, ex ensi e, and selec i e dis ibu ion
s a egies, examining hei impac on epea pu chases, cus ome loyal y, and ad ocacy in he con ex o Nige ia’s
dynamic ma ke en i onmen .
The objec i es o his s udy a e: (1) o e alua e he ela ionship be ween in ensi e dis ibu ion and epea pu chases;
(2) o assess he impac o ex ensi e dis ibu ion on cus ome loyal y; and (3) o examine he ole o selec i e
dis ibu ion in imp o ing cus ome ad ocacy. The hypo hesis posi s ha in ensi e, ex ensi e, and selec i e dis ibu ion
channels signi ican ly enhance ma ke pene a ion by imp o ing p oduc a ailabili y, os e ing loyal y, and encou aging
ad ocacy. This hypo hesis is g ounded in Economic Dis ibu ion Channel Theo y, which emphasizes designing
dis ibu ion sys ems ha align wi h consume needs and cos e iciencies [3,4].
Wo ld Jou nal o Ad anced Resea ch and Re iews, 2025, 27(02), 1288-1293
1289
Dis ibu ion channels, encompassing di ec and indi ec pa hways such as wholesale s, e aile s, and digi al pla o ms,
acili a e he deli e y o p oduc s o end consume s [1]. In Nige ia, whe e economic ola ili y, including 15–20% annual
in la ion, and logis ical challenges shape ma ke dynamics, e ec i e dis ibu ion is c i ical o expanding each [5].
Nes lé Nige ia employs a mix o dis ibu ion s a egies o ensu e p oduc accessibili y ac oss u ban and u al ma ke s
[6]. In ensi e dis ibu ion maximizes p oduc a ailabili y h ough widesp ead ou le s, encou aging epea pu chases
[7]. Ex ensi e dis ibu ion a ge s b oad geog aphic and demog aphic segmen s, enhancing cus ome loyal y by
ensu ing consis en access [6]. Selec i e dis ibu ion ocuses on speci ic egions o cus ome g oups, s eng hening
b and image and ad ocacy in niche ma ke s [8].
The hypo hesis was de eloped based on heo e ical and p ac ical insigh s. Economic Dis ibu ion Channel Theo y
sugges s ha op imal dis ibu ion sys ems mee consume demands o con enience while minimizing cos s [3].
Ande son e al. emphasize ha e ec i e channels align wi h cus ome expec a ions o se ice ou pu s, enhancing
ma ke each [9]. In Nige ia, in as uc u e limi a ions and di e se consume p e e ences necessi a e ailo ed
dis ibu ion s a egies [10]. Discussions wi h Nes lé Nige ia’s dis ibu ion pa ne s in Po Ha cou indica ed ha
ex ensi e ne wo ks inc ease p oduc isibili y, while selec i e s a egies enhance b and pe cep ion in unde se ed
a eas [4].
The impo ance o his s udy lies in i s ocus on dis ibu ion as a d i e o ma ke pene a ion in Nige ia’s FMCG sec o .
Many i ms s uggle wi h high ailu e a es due o poo ma ke each and compe i ion [11]. Nes lé Nige ia’s success in
le e aging di e se channels o e s aluable lessons o o he manu ac u e s [6]. In ensi e dis ibu ion ensu es p oduc s
like Maggi and Milo a e widely a ailable, d i ing sales olume [7]. Ex ensi e dis ibu ion suppo s loyal y by
main aining consis en supply chains, while selec i e dis ibu ion a ge s p emium segmen s, os e ing ad ocacy [8].
The ise o e-comme ce in Nige ia, wi h inc easing adop ion o digi al pla o ms, u he ampli ies he po en ial o hese
s a egies [12].
This esea ch add esses a gap in he li e a u e, as s udies on dis ibu ion channels in eme ging ma ke s like Nige ia a e
limi ed compa ed o de eloped ma ke s [13]. Fo Nes lé Nige ia, op imizing dis ibu ion is c ucial o main aining i s
leade ship in he FMCG sec o , whe e accessibili y d i es compe i i eness [1]. The indings can guide o he i ms in
e ining dis ibu ion s a egies o imp o e ope a ional e iciency and cus ome engagemen [9]. Policymake s, such as
he Cen al Bank o Nige ia, can use hese insigh s o suppo in as uc u e de elopmen o dis ibu ion ne wo ks,
add essing logis ical ba ie s [5].
The s udy is mo i a ed by he need o enhance ma ke pene a ion s a egies in Nige ia’s compe i i e landscape.
Ine icien dis ibu ion can lead o s ock sho ages, educed sales, and weakened b and loyal y [10]. By analyzing Nes lé
Nige ia’s p ac ices, his esea ch p o ides a bluep in o balancing in ensi e, ex ensi e, and selec i e dis ibu ion o
achie e sus ainable g ow h. The ocus on cus ome -cen ic dis ibu ion aligns wi h global ends, whe e accessibili y
and con enience d i e ma ke success [14].
2. Ma e ials and Me hods
This s udy adop ed a desc ip i e esea ch design o examine he e ec o dis ibu ion channels on ma ke pene a ion,
ocusing on Nes lé Nige ia in Po Ha cou . A mixed-me hods app oach combined quan i a i e su ey da a wi h
quali a i e insigh s o p o ide a comp ehensi e analysis o in ensi e, ex ensi e, and selec i e dis ibu ion s a egies.
The a ge popula ion comp ised 162 indi iduals, including Nes lé Nige ia employees, dis ibu ion pa ne s
(wholesale s, e aile s), and cus ome s in Po Ha cou . A sample o 111 esponden s was selec ed using pu posi e
sampling o ensu e ep esen a ion ac oss hese g oups. Da a collec ion u ilized h ee se s o s uc u ed ques ionnai es:
one o Nes lé managemen and s a , one o dis ibu ion pa ne s, and one o cus ome s. The ques ionnai es assessed
he impac o dis ibu ion channels on epea pu chases, cus ome loyal y, and ad ocacy, as e lec ed in Tables 6–12 o
he s udy. Ques ions used a 5-poin Like scale (1 = s ongly disag ee, 5 = s ongly ag ee) o measu e pe cep ions.
Validi y was ensu ed h ough e iew by wo ma ke ing expe s, and eliabili y was con i med ia a pilo s udy wi h 10
esponden s, achie ing a C onbach’s alpha o 0.81. O he 111 ques ionnai es dis ibu ed, 100 we e e u ned, yielding
a 90% esponse a e.
Da a analysis employed desc ip i e s a is ics (pe cen ages, equencies) o summa ize esponses using ables and pie
cha s, as p esen ed in he s udy. Hypo heses es ing he ela ionships be ween in ensi e, ex ensi e, and selec i e
dis ibu ion and ma ke pene a ion ou comes ( epea pu chases, loyal y, ad ocacy) used he Pea son P oduc Momen
Co ela ion Coe icien (PPMC) wi h a signi icance le el o 0.05, conduc ed ia SPSS e sion 25. No specialized ma e ials
Wo ld Jou nal o Ad anced Resea ch and Re iews, 2025, 27(02), 1288-1293
1290
o chemicals we e used, and da a we e s o ed secu ely. In o med consen was ob ained om all 111 pa icipan s,
ensu ing olun a y pa icipa ion and con iden iali y o esea ch and publica ion pu poses.
3. Resul s
This s udy in es iga es he e ec o dis ibu ion channels on ma ke pene a ion, ocusing on Nes lé Nige ia in Po
Ha cou . Da a om 100 esponden s, including Nes lé employees, dis ibu ion pa ne s, and cus ome s, add ess h ee
objec i es: e alua ing he ela ionship be ween in ensi e dis ibu ion and epea pu chases, assessing ex ensi e
dis ibu ion’s impac on cus ome loyal y, and examining selec i e dis ibu ion’s ole in cus ome ad ocacy. Resul s a e
p esen ed below, ollowed by a discussion linking indings o exis ing li e a u e.
3.1. Objec i e 1: Rela ionship Be ween In ensi e Dis ibu ion and Repea Pu chases
Table 1 shows esponses on whe he in ensi e dis ibu ion imp o es epea pu chases, a ed on a 5-poin Like scale
(1 = s ongly disag ee, 5 = s ongly ag ee). O 100 esponden s, 90% (90 esponden s) s ongly ag eed o ag eed (40%
s ongly ag ee, 50% ag ee; mean = 4.2, SD = 0.8). Only 8% disag eed o s ongly disag eed. Pea son P oduc Momen
Co ela ion Coe icien (PPMC) analysis e ealed a s ong posi i e ela ionship be ween in ensi e dis ibu ion and
epea pu chases (R = 0.803, p<0.05).
Table 1 In ensi e Dis ibu ion Imp o es Repea Pu chases
Response
F equency
Pe cen age (%)
Valid Pe cen
Cumula i e Pe cen
S ongly Ag ee
40
40.0%
40.0%
40.0%
Ag ee
50
50.0%
50.0%
90.0%
Undecided
2
2.0%
2.0%
92.0%
Disag ee
5
5.0%
5.0%
97.0%
S ongly Disag ee
3
3.0%
3.0%
100.0%
To al
100
100.0%
100.0%
(Sou ce: Field Su ey, May 2024).
3.2. Objec i e 2: Impac o Ex ensi e Dis ibu ion on Cus ome Loyal y
Table 2 illus a es esponses on whe he ex ensi e dis ibu ion s imula es cus ome loyal y. O 100 esponden s, 80%
(80 esponden s) s ongly ag eed o ag eed (50% s ongly ag ee, 30% ag ee; mean = 4.3, SD = 0.7). Only 17% disag eed
o s ongly disag eed. PPMC analysis con i med a s ong posi i e ela ionship be ween ex ensi e dis ibu ion and
cus ome loyal y (R = 0.713, p<0.05).
Table 2 Ex ensi e Dis ibu ion S imula es Cus ome Loyal y
Response
F equency
Pe cen age (%)
Valid Pe cen
Cumula i e Pe cen
S ongly Ag ee
50
50.0%
50.0%
50.0%
Ag ee
30
30.0%
30.0%
80.0%
Undecided
3
3.0%
3.0%
83.0%
Disag ee
10
10.0%
10.0%
93.0%
S ongly Disag ee
7
7.0%
7.0%
100.0%
To al
100
100.0%
100.0%
(Sou ce: Field Su ey, May 2024).
3.3. Objec i e 3: Role o Selec i e Dis ibu ion in Cus ome Ad ocacy
Table 3 shows esponses on whe he selec i e dis ibu ion imp o es cus ome ad ocacy. O 100 esponden s, 55% (55
esponden s) s ongly ag eed o ag eed (30% s ongly ag ee, 25% ag ee; mean = 3.6, SD = 0.9). Howe e , 24% we e
Wo ld Jou nal o Ad anced Resea ch and Re iews, 2025, 27(02), 1288-1293
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undecided, and 21% disag eed o s ongly disag eed. PPMC analysis indica ed a s ong posi i e ela ionship be ween
selec i e dis ibu ion and cus ome ad ocacy (R = 0.713, p<0.05).
Table 3 Selec i e Dis ibu ion Imp o es Cus ome Ad ocacy
Response
F equency
Pe cen age (%)
Valid Pe cen
Cumula i e Pe cen
S ongly Ag ee
30
30.0%
30.0%
30.0%
Ag ee
25
25.0%
25.0%
55.0%
Undecided
24
24.0%
24.0%
79.0%
Disag ee
17
17.0%
17.0%
96.0%
S ongly Disag ee
4
4.0%
4.0%
100.0%
To al
100
100.0%
100.0%
(Sou ce: Field Su ey, May 2024).
4. Discussion
The esul s suppo he hypo hesis ha in ensi e, ex ensi e, and selec i e dis ibu ion channels signi ican ly enhance
ma ke pene a ion, aligning wi h he s udy’s objec i es. The s ong posi i e ela ionship be ween in ensi e dis ibu ion
and epea pu chases (R = 0.803, p<0.05; 90% ag eemen , mean = 4.2) e lec s Nes lé Nige ia’s s a egy o placing
p oduc s in nume ous ou le s, ensu ing accessibili y [1]. Ko le and Kelle emphasize ha in ensi e dis ibu ion
maximizes p oduc a ailabili y, encou aging equen pu chases in compe i i e FMCG ma ke s [1]. In Nige ia, whe e
consume access is limi ed by in as uc u e challenges, his app oach ensu es p oduc s like Milo a e ubiqui ous, d i ing
sales olume [5].
Ex ensi e dis ibu ion’s impac on cus ome loyal y (R = 0.713, p<0.05; 80% ag eemen , mean = 4.3) aligns wi h Chanzu
and Geka u’s indings ha b oad dis ibu ion ne wo ks enhance cus ome sa is ac ion by ensu ing consis en supply
ac oss di e se egions [6]. Nes lé Nige ia’s use o wholesale s and e aile s o each u ban and u al ma ke s os e s
loyal y, c i ical in a ma ke wi h 15–20% annual in la ion [5]. Sawhney no es ha mul i-channel dis ibu ion, including
e-comme ce, s eng hens cus ome engagemen by o e ing con enience, a end e iden in Nige ia’s g owing digi al
ma ke [12].
Selec i e dis ibu ion’s ole in cus ome ad ocacy (R = 0.713, p<0.05; 55% ag eemen , mean = 3.6) is less p onounced,
wi h highe unce ain y (24% undecided), e lec ing i s a ge ed app oach. Lenee and Oki sugges ha selec i e
dis ibu ion enhances b and image by ocusing on p emium segmen s, as seen wi h Nes lé’s specialized p oduc s [8].
Howe e , logis ical cons ain s in Nige ia’s unde se ed a eas may limi i s e ec i eness, as no ed in in e iews [10].
Ande son e al. highligh ha selec i e s a egies equi e ca e ul ma ke segmen a ion o maximize ad ocacy, aligning
wi h Nes lé’s a ge ing o high- alue cus ome s [9].
The indings align wi h Economic Dis ibu ion Channel Theo y, which ad oca es designing channels o mee consume
needs o accessibili y and con enience [3]. In ensi e and ex ensi e s a egies add ess Nige ia’s di e se ma ke , while
selec i e dis ibu ion ca e s o niche segmen s, suppo ing ma ke pene a ion [4]. Quali a i e insigh s con i m ha
in ensi e dis ibu ion d i es olume, ex ensi e dis ibu ion builds loyal y, and selec i e dis ibu ion enhances
ad ocacy, hough challenges like anspo a ion cos s pe sis [11]. These esul s a e consis en wi h global ends,
whe e e ec i e dis ibu ion enhances compe i i eness [14].
P ac ically, Nes lé Nige ia should con inue le e aging in ensi e and ex ensi e channels o maximize each and loyal y,
while e ining selec i e s a egies o o e come logis ical ba ie s. O he FMCG i ms can adop simila app oaches o
imp o e ma ke pene a ion [6]. Policymake s, such as he Cen al Bank o Nige ia, should suppo in as uc u e
imp o emen s o enhance dis ibu ion e iciency [5]. The s udy add esses a li e a u e gap in Nige ia’s FMCG sec o ,
whe e dis ibu ion dynamics a e unde explo ed [13]. Limi a ions include he ocus on Po Ha cou , sugges ing u u e
esea ch in o he egions o gene alize indings [10].
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5. Conclusion
This s udy demons a es ha in ensi e, ex ensi e, and selec i e dis ibu ion channels signi ican ly enhance ma ke
pene a ion o Nes lé Nige ia. In ensi e dis ibu ion, ensu ing widesp ead p oduc a ailabili y, s ongly d i es epea
pu chases, pa icula ly o e e yday p oduc s like Maggi and Milo. Ex ensi e dis ibu ion os e s cus ome loyal y by
p o iding consis en access ac oss u ban and u al ma ke s, add essing Nige ia’s logis ical challenges. Selec i e
dis ibu ion, hough less impac ul, p omo es cus ome ad ocacy by a ge ing p emium segmen s, enhancing b and
image in niche ma ke s. The in eg a ion o hese s a egies enables Nes lé Nige ia o expand i s cus ome base,
s eng hen loyal y, and main ain a compe i i e edge in he as -mo ing consume goods sec o .
The indings a e highly ele an o manu ac u ing i ms seeking o deepen ma ke each wi hou signi ican capi al
in es men . By op imizing dis ibu ion ne wo ks, i ms can imp o e p oduc accessibili y and cus ome sa is ac ion,
c ucial in Nige ia’s ola ile economic en i onmen . In ensi e and ex ensi e channels a e pa icula ly e ec i e o mass-
ma ke p oduc s, while selec i e channels sui p emium o e ings. Policymake s and indus y bodies should suppo
in as uc u e de elopmen and aining o help i ms o e come logis ical ba ie s and adop mul i-channel s a egies,
including e-comme ce.
This esea ch con ibu es o unde s anding dis ibu ion as a d i e o ma ke pene a ion in Nige ia’s compe i i e
landscape. I o e s a p ac ical amewo k o i ms o ailo dis ibu ion s a egies o consume needs, ensu ing
sus ainable g ow h. Fo Nes lé Nige ia, con inued in es men in di e se channels will sus ain i s ma ke leade ship and
suppo long- e m cus ome engagemen .
Compliance wi h e hical s anda ds
Acknowledgmen s
The au ho ex ends hea el g a i ude o D . Tao ik Bello o his academic guidance and insigh ul eedback h oughou
he esea ch p ocess. Special hanks a e due o Nes lé Nige ia’s managemen and s a in Po Ha cou o acili a ing
access o dis ibu ion pa ne s and cus ome s. The au ho app ecia es he 111 esponden s, including employees,
pa ne s, and cus ome s, o hei pa icipa ion in he su ey. No ex e nal g an s unded his s udy, and p elimina y
indings we e p esen ed a he 2024 Nige ian Business Resea ch Con e ence, Lagos.
Disclosu e o con lic o in e es
Chinonso Benjamin Obiajulu decla es no con lic s o in e es o compe ing in e es s ela ed o he publica ion o his
manusc ip . The e a e no a ilia ions wi h ins i u ions, p oduc s, o compe ing p oduc s men ioned in he s udy ha
could in luence he esea ch ou comes.
S a emen o in o med consen
In o med consen was ob ained om all indi idual pa icipan s included in he s udy.
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