CHAPTER ONE
1.0 INTRODUCTION
The type distribution policy exercised differs from one organisation to another, depending on the type of goods and services produced in such business organisation. In considering the importance of distribution policy on organizational profitability, volume of business organisation either positively or negatively.
Before an organisation settles for the type of distribution policy to be used, two things has to be considered, knowledge of various marketing channels available is one thing, developing a sound system is another thing. The effectiveness of an excellent marketing executive however in his ability to select and obtain channels, which will minimize sales and costs.
In selecting marketing channels, one must understand that, they are not rigid, rather they are dynamic. In essence the impact of distribution policy on the organizational profitability of coca-cola is that it helps to strengthen and make the organisations marketing conception in terms of place and ability possible. However, when a wrong system of distribution is being used by an organisation, such organisation is bound to fail but if the right peg is being put into the right hole success is bound to be attained.
1.1 AIMS AND OBJECTIVES OF THE STUDY
The motive behind the study is to seek out and explain what will be the impact of distribution policy on organizational profitability of coca-cola.
The essence of choosing coca-cola is because of the fact that most Nigerian manufacturers are producers of such consumer gods. The study intends to seek the distribution policy that, they make use of in getting the goods to the ultimate consumers or user and impact of such policy on the profitability of the organisation and overall of achieving the target of any marketing form, which is consumer satisfaction, whether the impact of these stated focus are favourable, otherwise or has no impact at all.
The study would also look at various distribution policies that are open to manufacturers, from which they can make their choice depending on the market coverage, product characteristic of each and how each of the earlier mentioned policies (intensive, selective and exclusive) can be adopted for coca-cola. In order to be able to cover all aims and objective of the study it would require an extensive research involving some of the department or units in the Nigerian Bottling Company Plc, Agidingbi, Lagos, but due to some constraints, just two departments would be made use of in this research i.e. Sales/marketing and distribution department.
The organization was chosen due to the position it occupies as one of the leading organisations, more so as market leader in its sector (soft drink sector) hence much reference would be made to the company.
1.2 STATEMENT OF THE PROBLEM
The problem that this study meant to examine is that of the distribution policy adopted by Nigerian Bottling Company. This effect, affects the producer that they are not to exploit their potential customers not reached while even the present consumers are not given the utmost satisfaction they are supposed to enjoy from the product.
Meanwhile, distribution problem can also have chain effect of leading the organisation to operate below full capacity interms of manufacturing. This study wants to find out the actual problems and how well they can be solved, and the advantages hope to gain soon when applying the various distribution policies in distributing coca-cola and its impact on organisational profitability of the product (coca-cola).
1.3 RATIONAL OF THE STUDY