Hybrid Distribution Model and Market Penetration of Consumer Electronics in Nigeria

Abstract

In a geographically large and diverse market like Nigeria, gaining full-scale market penetration for consumer goods can be a herculean task due to inadequate transportation infrastructure, and lack of robust channel structure. This study sought to mitigate this challenge by investigating the causality between hybrid distribution model and market penetration. It specifically aimed to determine the influences of direct and indirect distribution on market penetration of consumer electronics in Nigeria. The study adopted cross-sectional research design. Primary data were obtained from 384 major distributors of consumer electronics in Port Harcourt, Calabar and Ikeja through a structured questionnaire. Snowball and quota sampling techniques were applied to recruit respondents for the survey. The data obtained were analyzed using descriptive statistics and the hypotheses of the study were tested using multiple linear regression. The findings of the study revealed that even though both direct and indirect distribution strategies had significant positive influences on market penetration of consumer electronics in Nigeria, the indirect distribution approach had a higher contribution to market penetration. Hence, the study concluded that hybrid distribution model strategically enhances the ability of manufacturers of consumer electronics to achieve extended market penetration in Nigeria. Therefore, we recommended that: manufacturers of consumer electronics should establish direct distribution outlets in Nigeria such as company warehouses, manufacturer-owned retail stores, corporate online stores, and direct sales representatives in order to effectively sell products to customers while eliminating the prospects of third-party adulterations, counterfeiting and other unwholesome practices of middlemen; and there is need for manufacturers of consumer electronics to collaborate and strategically partner with capable intermediaries like wholesale distributors, retail chain stores, independent retailers, online marketplaces, authorized dealers and market traders to achieve extended market coverage and ensure their products are extensively available in the Nigerian market.