CHAPTER
ONE
GENERAL
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
It is observed that place is one of
the marketing activities include channel of distribution transaction were
housing, STORAGE, INVENTORY handling etc. when product have been produced,
marketers have to create to place utility.
It does not matter how good products
are the movements it cannot get to the customer at the right place, the
objectives of marketing are defeated.
Distribution channel involves inter –
related activities that enhances the movement of goods and service from the
producer and to the point of consumption through organization that performs
different types of marketing activities. It is critically essential that
marketer understand channel of distribution facilities that will enables to
distribution facilities that will enable them to research their target market
effectively.
Distribution channel concept is
essentially the development and operation of efficient flow system for product
it relates to other activities of the firm to the extent that it is difficult
to isolate them exception in conceptual terms.
Beside its interaction with promotion
and other marketing functions, the distribution management concept also interact
with production, this makes distribution a key to success market that is
distribution is central to the success or failure of company’s efforts.
1.1 STATEMENT OF THE RESEARCH PROBLEM
The aim of producer, is to produce goods
and service to wards consumers wants and satisfaction, and one of the means to
let consumers get satisfied is to enable consumer get the goods at the rights
place. This can only be possible through channels of distribution which are often
linked to pipe inked to pipe line through which a product flows on its way toe
the consumer. It is therefore, become interactive that markets understand
channel or distribution and that they are able to distribute facilities that
will enables them to reach their market target effectively. The route taken by goods
and services include the manufacture intermediacies and the ultimate consumers.
Intermediaries in the channel process include wholesaler, retailer and various
kinds of agent such brokers.
The channel distribution is an organization dispute
its important have been observed to create the problem of high price of goods
and service which in turn usually bring about low sale of companies product,
reduction in consumers satisfaction etc. it is as a result of this problems
that the research is under taken to ensure its minimization and maximize
consumers satisfaction. As a result of the above problem mentioned, the choice
of channel of distribution to be used should be headed with care, infant the
following factor company objective market consideration product
characteristics, middlemen characteristics consumer and characteristics environment
characteristic are fundamental toward choosing distribution channels and firms
must take cognizance of them.
Therefore, channel of distribution should be heated
as total system of action. Producer and middlemen should understand that each
of them is one component of total systematic organization that is designed to
maximize market effectiveness in selling the company product and meeting
customers satisfaction.
1.2 AIM AND OBJECTIVES
The general objectives of this
research study is to examine with care the effectiveness of distribution
channel management and customer satisfaction using Nigeria bottling company plc
as a case study
1. To
identify the need for customer consideration in designed channel of
distribution
2. To
establish the fact that distribution channel enhances customer satisfaction.
3. To
estimate the fact that distribution channel persuades customers to buy company
products.
4. To
have a look at problem those are common to channel of distribution
5. To
identify how company image can be built through distribution channel
6. To
establish that the distribution channel increases company sales volumes.
1.3
SIGNIFICANT OF THE STUDY
The relevance of this study is derived
from the economic depression uncounted in Nigeria recently which ahs
seriously affected the distribution marketing of goods and service of many
manufacturing companies. There is need to direct research attention of the
problem above.
The results obtained from this
research finding will spur the company to a greater efficiency in term of
distribution of their goods and service other is the manufacturing sectors will
be more serious to embark on the decision that will help in improving their channel
of distribution. The study will also broaden the fronties of knowledge on the
distribution as a subject.
1.4 SCOPE AND LIMITATION OF THE STUDY
To ensure effective performances of
any company. The management of its distribution channels is important however,
attempting to cover all bottling companies would be impressible as a result of
the differences in their channels of distribution. As a result of this, I will
be using Nigeria Bottling Company Plc Ilorin.
The research work will be concentrated
on how they distributed their product to the final and user (i.e. consumer) through
different channels which may be such as from manufacturer – wholesaler – retailer
final consumer. Furthermore this study will cover to middlemen because they see
to how the company product are being distributed and the retailer, consumers of
the company’s product will not be excluded.
1.5 HISTORICAL BACKGROUND OF NIGERIA BOTTLING PLC
The first bottling plan was
commissioned in 1953. Operating within the basement of present maintained Hotel
as Ebutemetta, .
It was to be the beginning of an existing story of growth and development
particularly during the 45 years with staff strength of about 10,000 workers in
all fields of operations all over the country.
Nigeria Bottling Company is number
one bottler of soft derives selling more than million bottler of growing. In order
to increase sakes the company established deports in major cities between 1953
and 1955, in 1955 the company established a new plant in to provide service to the northern
states. The 1970s can appropriately be discovered as a decode of
expansion for the Nigerian bottling company a plant was opened at Benin
of the beginning of the 70s. this was followed in 1972 and 1973 commissioned
of the Jos and enough plant respectively. Another plant was opened in Ikeja in
1978 and then one in Ilorin 1979, fanta is by the number one best seller in
orange segment and sprite the most widely sold lemon – line drive in Nigeria
other product bottled by Nigerian bottling company include fanta tome and krest
bitter lemon 35cl fanta champion was introiduce recently in july 19095. then
25cl coke was introduced to
on Sunday 8th January, 1995 to cater low income earner also the 50cl
coke, fanta and other were introduced recently, directly coke is another
product introduced to the market.
The success of coca – cola has brought
with it the development of a number of sister companies all contribution to the
growth of
economy. The nogal gloss, glos company in ugholti was incorporated in June 1974
and supplies the million of bottles to keep a large bottling company in
operation .also the crown to seal the bottles, the Benin plastic company which
makes the create for carryimg the bottle. In 1958, the first carbon dioxide
plant was established and
bottling company plc is the target manufacture of carbon dioxide used to
carbonate the drinks.
1.6
LIMITATION AND CONSTRAINTS
To ensure performance of any company, the management
of is distribution channels is important however, the attempting to cover all
bottling company would be impressible as a result of the differences in their
channel of distribution. As a result of this I will be using Nigeria Bottling
Company Plc Ilorin.
The research work will be encountered
on how they distributed their product to the consumption stage.
1.7 DEFINITION OF TERMS
Management of distribution channel in the
manufacturing concern consist many terms in which reservation found them
peculiar to define for easy understanding by individual organization
,institution or government set who wish to make use of this project.
1.
MANAGEMENT:
Management means getting things done through people or as a n act of making
resources productive. Through no mention was made of either planning,
organization, controlling, directing. It is obvious that can make resources
productive without those functions.
2.
DISTRIBUTION:
Distribution is the pathway through which goods and services flower move from
producer to consumer in order to allow customer get satisfied and toward the
realization of the company set objectives. distribution involves inter related
activities that facilitates the movement of goods and services as from the
producers and to the point of consumption.
3.
CHANNEL:
Channel in business organization could be define as the combination of
institution through which a saler markets his final goods the institutions comprises
of middle men such as wholesaler, retailer, advertising agencies, brokers
facilitations. This is path between manufacturing and consumers.
4.
DISTRIBUTION POLICY:
This is intensity of purchaser course of exposure a product should get.
5.
MARKETING INTERMEDIARY:
These are marketing institution or
channel member that are responsible for transfer
of goods and services from the problems to the final consumers.
6.
AGENT;-
These are marketing intermediaries that
make arrangement on behalf of a firm for buying and selling of the company
product under specified agreement they neither own nor take possession of the
merchandise .the sell to wholesales or retail customers
7.
DIRECT SALES;-
this is method of distributing involving the selling of goods and services directly
to customers or end users.