AN EVALUATION OF THE DISTRIBUTION STRATEGIES OF AUTOMOBILE, ITS IMPLICATION FOR MARKETING EFFECTIVENESS IN NIGERIA: A CASE STUDY OF PEUGEOT AUTOMOBILE NIGERIA LIMITED.
AN EVALUATION OF THE DISTRIBUTION STRATEGIES OF AUTOMOBILE, ITS IMPLICATION FOR MARKETING EFFECTIVENESS IN NIGERIA: A CASE STUDY OF PEUGEOT AUTOMOBILE NIGERIA LIMITED.
No Thumbnail Available
Date
1999-09
Authors
AJAO, ALAO.
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
ABSTRACT
My desire to carry out a research work on the Automobile industry
was prompted as a result of the unique position which the Automobile
industry occupies in the economic development of Nigeria and the entire
world in general. Peugeot automobile of Nigeria is the First Automobile
industry established in Nigeria in 1975. This study aimed at finding out
why this important automobile company has not been able to achieve the
objective for which it was established. In an attempt to find out some of the
reasons for the non-achievement of its objectives to the Nigerian economy,
its distribution system was selected as the focal point for the examination
and evaluation.
As a result of a thorough examination of the data collected from its
distribution system the study discovered that there is distribution problems,
such as delay in order processing, delivery schedule to mention a few of
them. It should be noted also that the prices of Peugeot cars and minibuses
are not within the reach of the average Nigerian, besides, the distributors
are not adequately encouraged, as a result of inefficiency in the total
distribution system of the company.
The high prices of the company's product could partly be due to the
high cost of imported component parts which the company is importing, as
well as the desire to maximise profits. The company has only achieved 36
. . .
percent of local content and has to import 64 percent of its component
parts.
For the automobile industry to start yielding the required returns of
development a maximum of 80 percent local content sourcing must be
achieved. Hope is however not lost in this area as the Federal Government
is intensifying effort to complete the Ajaokuta Steel Rolling Mill and to
revive the Delta Steel Alaja, this will provide the industry with the required
local contents needed.
Nigeria prefer importing built-up cars from other countries which are
cheaper than the product of PAN Limited, because the manufacturing
countries source most of their raw materials locally and enjoy the advantage
of technology over it Nigerian counterparts.
The study suggested that, the company should invest heavily on local
content sourcing so as to be able to reduce prices of its products and
thereby increasing its market share in the Nigerian automobile market, solve
problems of distributors and to advertise its products using the various mass
media stating the advantages of buying a made in Nigeria product i.e.
Peugeot products over that of imported products.
Description
DEPARTMENT OF BUSINESS ADMINISTRATION
FACULTY OF ADMINISTRATION
AHMADU BELLO UNIVERSITY
ZARIA.
Keywords
EVALUATION,, DISTRIBUTION,, STRATEGIES,, AUTOMOBILE,, IMPLICATION,, MARKETING,, EFFECTIVENESS,, NIGERIA, CASE,, STUDY,, PEUGEOT,, AUTOMOBILE,, NIGERIA, LIMITED.