MARKETING CHANNEL CONDUCT AND MARKETING MARGIN ON MARKETING PERFORMANCE OF SOFT DRINK DISTRIBUTORS IN NIGERIA

Abstract

This study investigates the causal relationship between soft drinks marketing channel conduct and margin on the performance of distributors in Maiduguri. 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 questionnaire was used to collect data from 120 out of the 150 total questionnaire distributed from the total population of 403 Soft Drink marketers (comprising of producers, wholesalers and retailers) using purposive and simple random sampling technique from markets 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 result of the regression analysis revealed an R2 value of 63.8%, F-value of 8.93 and a very low standard error of 0.38889. The result further revealed that initial capital,cooling cost and handling costs were positive and significant at different levels indicating that they were the major determinants of profitability, sales output, and customer attraction in the area. The study identified a decentralized distribution channel in the area and that marketing and marketing margin affects marketing performance in the study area. It is recommended that marketers should form a strong co-operative society in the area. Inventories should be stored to smooth out sales, increase profits and customer satisfaction.