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

This study investigates the impact of distribution channels on market penetration, focusing on Nestlé Nigeria in Port Harcourt. Employing a descriptive research design, the study surveyed 111 respondents, including Nestlé employees, distribution partners, and customers, with 100 completed responses. Three questionnaires assessed intensive, extensive, and selective distribution strategies, using a 5-point Likert scale. Data were analyzed with descriptive statistics and Pearson Product Moment Correlation Coefficient to test relationships. Results show intensive distribution strongly enhances repeat purchases (90% agreement, mean 4.2, R=0.803, p<0.05), ensuring widespread product availability. Extensive distribution fosters customer loyalty (80% agreement, mean 4.3, R=0.713, p<0.05) by reaching diverse markets. Selective distribution improves customer advocacy (55% agreement, mean 3.6, R=0.713, p<0.05), particularly for premium products, though logistical challenges limit its impact. Qualitative insights from 15 interviews highlight intensive distribution’s role in accessibility, extensive distribution’s consistency in rural areas, and selective distribution’s brand enhancement. The study concludes that optimizing these channels drives market penetration by improving accessibility, loyalty, and advocacy. These findings guide manufacturers to balance distribution strategies for competitive advantage and urge policymakers to support infrastructure development. The research underscores the importance of tailored distribution in Nigeria’s fast-moving consumer goods sector, offering insights for firms to enhance market reach and customer engagement.

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2025-08-31
DOI
https://doi.org/10.5281/zenodo.17718473
Primary Topic
Customer Service Quality and Loyalty
Type
article
Field-Weighted Citation Impact
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article

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

Zenodo (CERN European Organization for Nuclear Research)
Customer Service Quality and Loyalty
article

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

article en

Abstract

This study investigates the impact of distribution channels on market penetration, focusing on Nestlé Nigeria in Port Harcourt. Employing a descriptive research design, the study surveyed 111 respondents, including Nestlé employees, distribution partners, and customers, with 100 completed responses. Three questionnaires assessed intensive, extensive, and selective distribution strategies, using a 5-point Likert scale. Data were analyzed with descriptive statistics and Pearson Product Moment Correlation Coefficient to test relationships. Results show intensive distribution strongly enhances repeat purchases (90% agreement, mean 4.2, R=0.803, p<0.05), ensuring widespread product availability. Extensive distribution fosters customer loyalty (80% agreement, mean 4.3, R=0.713, p<0.05) by reaching diverse markets. Selective distribution improves customer advocacy (55% agreement, mean 3.6, R=0.713, p<0.05), particularly for premium products, though logistical challenges limit its impact. Qualitative insights from 15 interviews highlight intensive distribution’s role in accessibility, extensive distribution’s consistency in rural areas, and selective distribution’s brand enhancement. The study concludes that optimizing these channels drives market penetration by improving accessibility, loyalty, and advocacy. These findings guide manufacturers to balance distribution strategies for competitive advantage and urge policymakers to support infrastructure development. The research underscores the importance of tailored distribution in Nigeria’s fast-moving consumer goods sector, offering insights for firms to enhance market reach and customer engagement.

Zenodo (CERN European Organization for Nuclear Research)
Ahmadu Bello University (NG)
Industry, innovation and infrastructure
Openalex Percentile: Top 33%
Customer Service Quality and Loyalty
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