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APPRAISAL OF DISTRIBUTION STRATEGIES OF PRODUCTION COMPANIES (A STUDY OF THE NIGERIAN BOTTLING COMPANY PLC IN ENUGU)

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CHAPTER ONE

1 1.1 BACKGROUND OF THE STUDY

Distribution channel is the path through which goods and services traverse as they go from producer to ultimate consumer. Also, marketing channels or marketing intermediaries represent organized network of agencies and institutions which in combination perform all the activities required to link producers with users and users with producers in order to accomplish the marketing task. By delivering products and their ownership titles to consumers at the right time, marketing channels therefore, perform a special kind of service to society by generating time, place and ownership utilities.

A sound physical distribution policies are therefore, important as a guideline for companies effective and efficient performance in order to realize and achieve the desired short and long run goals and objectives.

Many business organizations have come short of achieving their desired goals and objectives even after producing high quality products. These shortcomings have been attributed to improper, ineffective and inefficient strategies as it relates to physical distribution of goods. The purpose of distribution is to make goods to be physically available to the ultimate consumer at reasonable prices. It is therefore, very imperative that the products are distributed in the most efficient manner to reach the ultimate consumer whose patronage ensures the survival of the organization. By so doing, the organization will enjoy consistent high sales turnover and subsequently high profit delivery.

Organizations through their managerial functions of planning, marshal out articulated ‘policies that enable them to control their internal and external actions. Against this background, the organization will be able to harness and monitor her relationship or activities internally and her publics.

Physical distribution policies In the Nigerian Bottling Company include’ identification of appropriate location of plant, equipment, depots, warehouses and mode of transportation services. It also includes the maintenance of good communication system, inventory level and proper packaging of products so that they can be transported and stored on a economic basis. They are geared to reduce loss and increase satisfactory customers service so that the organization will continue to win their loyalty.

1.2 STATEMENT OF PROBLEMS 3 An efficient physical distribution system makes it possible for a particular geographical area to specialize in producing products for which it has the appropriate natural resources, ultimate or to the advantage.

However, physical distribution policies of most product- oriented companies in Nigeria have left -much to be desired in satisfying-the consumers wants and needs.

This project work will endeavour to appraise the physical distribution policies of Nigerian Bottling Company organization in Enugu, and proffer solutions for improvement.

1.3 STATEMENT OF OBJECTIVES

Efficiency and satisfactory services are key goals of physical distribution of the Nigerian Bottling Company. Organizations whose physical distributions policies are far from adequate in meeting her key goals should appraise these policies so as to correct the lapses and flaws where they exist.

Additionally, this research work apart from appraisal of physical distribution of Nigerian Bottling Company Plc, intends to now the following:

  1. To examine whether the physical distribution policies of the company are being implemented along the line of set objectives.
  2. To ascertain the extent the various strategies have helped to enhance the company’s physical distribution problems.
  3. To determine to what extent the sales department especially, has gone in coping with short of delivery trucks, vehicles etc.
  4. To proffer or recommend articulated solutions to the bottlenecks being experienced by the Nigerian Bottling Company Plc, in the physical distribution of her productions within Enugu.

1.4  FORMULATION OF HYPOTHESES

  1. Ho: The physical distribution policies of the Nigerian Bottling Company have not encouraged consumer loyalty of the company’s product.

Hi: The physical distribution policies of the Nigerian Bottling Company have encouraged consumer loyalty of the company’s product.

  1. Ho: The safes department programmes to satisfy both existing and prospective customers are not adequate.

Hi: The sales department programmes to satisfy both existing and prospective customers are adequate.

  1. Ho: The chosen channels of physical distribution have not affected the consumer patronage of the company’s products. Hi: The chosen channels of physical distribution have affected the consumer patronage of the company’s products.

1.5 SIGNIFICANCE OF THE STUDY

The research work is very significant because of it contributes to the field of knowledge, in finding ways of improving the physical distribution policies of Nigerian Bottling company in Enugu.

Additionally, the research work would appraise the significant role of physical distribution policies of the Nigerian Bottling Company Plc, in Enugu as to know whether it has been adequate to the company’s most target audience. The findings and recommendations of this research work, if adopted by Nigerian Bottling Company Plc, in her physical distribution policies will reduce some costs and enhance her distribution activities above her competition.

Management of Soft Drinks Companies and the Nigerian Bottling Company plc, in particular can adopt these findings as a guide in formulating their physical distribution polices for their companies.

Academically, further research could be carried out to widen the intellectual horizon of people, and also, improve the physical distribution policies of the Nigerian Bottling Company Plc, and other Soft Drink Bottling Companies in Enugu and beyond.

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