An Analysis Of Impact Of Warehousing On The Efficient Distribution Of Soft Drinks (A Case Study Of Nigerian Bottling Company Plc, Owerri)

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An Analysis Of Impact Of Warehousing On The Efficient Distribution Of Soft Drinks (A Case Study Of Nigerian Bottling Company Plc, Owerri)


Abstract


This research was conducted on the basis of the analysis of impact of warehousing on the efficient distribution of soft drink on Nigerian Bottling Company in Owerri, Imo state. Based on this, the researcher alleged that the problem facing the Nigerian Bottling Company is that of ineffective warehousing of the Nigeria Bottling Company. The objectives were meant to find out and analyze the impact of warehousing on the efficient distribution of soft drinks of the Nigerian Bottling Company. Objectively, the following specific objectives were ascertained.

  1. To find out if ware housing has significant impact on the efficient distribution of soft drinks.
  2. To find out the relationship between warehousing and effective distribution of NBC soft drinks.
  3. To know the cost implication of warehousing on the profit level of NBC of soft drinks.

The study also reviewed some related literature during the literature review in the area of distribution such as the marketing mix elements definition of warehousing, type of ware house, functions of warehousing, reasons for warehousing, location of warehousing and customer services, factors influencing warehouse planning and organization etc.

During research design and methodology in chapter three, the research used descriptive and analytical methods. A probability research design was used under which a stratified random sampling was used for sample size determination. In order to obtain relevant and meaningful information as regards the study, the two vital methods of data collection were used which include, the primary data and secondary data.

Questionnaire administration was also used in collaboration with the preliminary interviews. The population and sample size were determined, the validity and reliability of measuring instruments were proved. A Yaro Yamen formular was used to get the sample size. In chapter four data were analyzed and interpreted using tables.

Hypothesis were used accordingly in order to prove the statement of the problem stated in chapter one. Chi-square was used in analyzing the data, respondents were represented in tables and result of data analyzed in percentage one after the other. Lastly, the researcher made her summary, conclusion and recommendations.


Table Of Content


Preliminary Page(s)

  • Title Page
  • Approval Page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Content

Chapter One

1.0 Introduction

  • 1.1 The Background of the Study
  • 1.2 The Statement of the Problem
  • 1.3 The objectives of the Study
  • 1.4 Research Questions
  • 1.5 Statement of Hypothesis
  • 1.6 The Significance of the Study
  • 1.7 Scope of Study
  • 1.8 Limitations of the Study
  • 1.9 Definition of Terms

Chapter Two

2.0 Literature Review

  • 2.1 Introduction
  • 2.2 The Marketing Mix Element
  • 2.3 Definition Warehousing
  • 2.4 Types of Warehouse
  • 2.5 Functions of Warehousing
  • 2.6 Reasons for Warehousing
  • 2.7 Warehousing location and Customer Services
  • 2.8 Factors Influencing Warehouse Planning and Organization
  • 2.9 Distribution Intensity
  • Reference

Chapter Three

3.0 Research Methodology

  • 3.1 Introduction
  • 3.2 Research Design
  • 3.3 Method of Data Collection
  • 3.4 Population of the Study
  • 3.5 Sampling Technique
  • 3.6 Validity and Reliability of Measuring Instrument
  • 3.7 Method of Data Analysis

Chapter Four

4.0 Presentation and Analysis of Data

  • 4.1 Introduction
  • 4.2 Test of Hypothesis

Chapter Five

5.0 Summary, Conclusion and Recommendation

  • 5.1 Introduction
  • 5.2 Summary
  • 5.3 Conclusion
  • 5.4 Recommendation
  • References
  • Appendix
  • Questionnaire

Chapter One


1.0 Introduction

1.1 Background Of The Study

Marketing is not complete until the product produced get to the final consumer.

Great wonder say that increasing numbers of people are questioning whether distribution has a useful role in marketing of products. Since consumers can as well go to the shop or to the manufacturers to buy the product without distributing them to where they are living hence, using direct channel.

Currently, modern marketing concept holds the consumers supreme, hence effort desires, preference and creating avenues to satisfy them profitably.

People use to think that marketing commerce only after production of goods and services when the physical movements of such products are being performed as well as promotion, advertising, personal selling etc.

As soon as a firm acquire some inventories, the need to have some storage facilities in the form of warehouses or stores will arise in addition to have distribution centers from where such inventories would be replaced.

Technological advancement has equally shortened the gap between the time of manufacturing physical products or inventories and the time of consumption in terms of efficient transportation and effective communication systems.

But these recent positive trends not withstanding the need for warehousing globalization of the world economy and the increasing competitive posture has consistently made the continued warehousing management an inevitable venture.

A warehouse performs the functions of receiving the goods, sorting, storing, displaying, selling and even the shipment of these goods to the customers profitability.

Warehousing deals with the accumulation of product from time to time for the purpose of equalizing supplied over a certain period of time.

The analyzing of the impact of warehousing on the efficient distribution of soft drink in Imo state calls for understanding of the consumers needs and wants.

One thing is to produce a product available at every point in time so that consumer will not be searching for ways of satisfying their needs thereby left with the only option of patronizing the competitors. One of the assumptions that underlying products concept is that the major of organization is to keep improving manufacturing and distribution efficiency as well as lowering price to attract customer patronage.

Onuoha J. Kelechi (2007). Similarly warehouses are established near the markets in order to efficiently facilitate consumers satisfaction through increased customer service.

Brief History Of The Nigerian Bottling Company (Nbc) Plc

Nigerian bottling company is a multinational corporation Dr. John Styth Robertson; a pharmacist first introduced coca-cola in his home town in Atlanta Georgia, United States of America in 18th May 1986. Mr. Frank, Mr. Obinson, Dr. Robertson’s partner and book-keeper gave coca-cola its first name. He also designed the following script that distinguishes the trade mark. People got to know coca-cola through Dr. Robertson’s advertising and marketing activities.

Basing out facts on coca-cola’s information bulleting, coca-cola in Nigeria in 1953 when the NBC opened its first plant in Lagos.

Remarkably, that was the genesis of interesting story of growth and development particularly during the past fifteen years. As it stands now NBC is today Nigeria number one bottler of soft drinks, selling more than (7) million bottles per day. More still, this feature is simultaneously with opening of new plant in various parts of the federation. Fanta orange is by far the number 1 best seller in the orange segment, likewise coke in its segment in Nigeria. Other products bottled by Nigerian bottling company Fanta Soda, Sprite, Fanta Lemon, Fanta Chapman and Krest Bitter Lemon.

In addition, NBC has the largest private owned fleet of delivery trucks, pick ups and cars to more than sixty thousand (60,000) dealers in many parts of the country.

NBC is also largest manufacturer of carbon dioxide (Co2) and this is used for carbonate soft drinks.
Finally, worthy to mention is the fact that NBC employs over (60,000) sixty thousand Nigerian in all field of operation. This is the history of coca-cola NBC in Owerri Imo state.


1.2 Statement Of The Problem

For several years, Nigerian bottling company Plc of its inception operates under dynamism of marketing environment. For so many years now, NBC has been the leading company in the soft drink industry. However, the entry of other soft drinks firm has posed a threat to the operations and satisfactions of its target market. Being the case therefore, the researcher wants to study the operations of the NBC.

To that effect, it has been alleged that ineffective warehousing has been associated with the operation of this company.

The problems are as follows:

  1. There is insufficient warehousing provision
  2. Wrong location of warehouses associated with the company affects the sales performance.
  3. Dearth of competent warehousing managers in the company.
  4. Relegation of marketing research efforts disturbs the effective and efficient distribution of soft drinks however by the end of this investigation, we shall know if it is facing the problem so alleged.

1.3 Objective Of The Study

With response to the alleged problem facing the Nigerian bottling company Plc. The researcher embarks to find out the impact of warehousing on the efficient distribution of soft drink of NBC.
Therefore, the specific objectives are stated here as follows:

  1. To find out the relationship between warehousing and effective distribution of NBC soft drinks.
  2. To find out that if warehousing has significant impact on the sales performance of the NBC soft drinks.
  3. To know the cost implications of warehousing on the profit level of NBC
  4. To ascertain which among the channel warehousing facilities.
  5. Finally, to recommend a more effective and efficient way of distributing soft drink of the NBC.

1.4 Research Questions

For proper investigation of the study the following questions are put forward

  1. What is the significant relationship between warehousing and effective distribution of soft drink of NBC?
  2. Does warehousing have any significant impact on the sales performance of the NBC?
  3. What is the cost implication of warehousing on the profit level of NBC?
  4. Which among the channel members is responsible for the provision of warehousing facilities in your company?
  5. What would you recommend for a more effective and efficient means of distribution of soft drinks after thorough examination of the prevailing situations?

1.5 Statement Of Hypothesis

  • Ho: There is no significant relationship between warehousing and effective distribution of NBC products.
    Hi: There is no significant impact of warehousing on the sales performance of the NBC products.
  • Ho: Warehousing does not increase the unit cost of soft drinks of the NBC.
    Hi: Warehousing does not play a significant role in the achievement of the company’s market share.

1.6 Significance Of The Study

This research work on analysis impact of warehousing on the efficient distribution of soft drink of Nigerian bottling company (NBC) is significant to the company.

This is because Nigeria bottling company occupies a sizeable portion of entire soft drink industry of the Nigeria economy.

Moreover, the study will help the company in having a competitive edge over all other soft drink firms as the level of competitive performance of other brands are seen in the market. Besides, the research is useful in such a way that it will be of immense benefits to students who may be interested in this area of study.

Finally, marketing practitioners equally enjoy some utilities in the work since the questionnaire and interview will be made to the field staff work. Therefore, wealth of experience are obtained in the data, gathered, analyzed and presented.


1.7 Scope Of The Study

This research work essentially deals with the analysis of impact of warehousing and efficient distribution of soft drinks of Nigerian bottling company (NBC) in Owerri metropolis, the researcher focuses only on the Nigerian bottling company in Owerri. This means that the researcher did not recognize any other soft drink firms Owerri metropolis.


1.8 Limitation Of The Study

With respect to the limitation of the study, there was problem of inadequate resources which would have been helpful to expand the study. Other problems that limits the study are identified:

  1. The attitude of the respondents in the area.
  2. There was also problem of gathering relevant information on the real motive behind the study
  3. The researcher also finds it difficult to obtain meaningful information’s from the customers of Nigerian bottling company (NBC), for instance some customers were not co-operating where as others were not at home when the researcher visited.

1.9 Definition Of Terms

For easy understanding of terms adopted by the researcher, the following terminologies are hereby defined as follows:

Marketing:

This is a social and managerial process by which individuals and groups obtained what they need and want through creating and exchanging value with others.

Market Research:

This is concerned with investigation into an entire marketing programmes including product design, pricing distribution, promotion etc.

Market:

The actual and potential customers who wants or need a product and who are willing and able to exchange something for it.

Distribution:

This deals with the planning implementing and controlling the physical flow of raw materials, final goods, service and related information from points of origin to point of consumption to meet customer requirement at a profit.

Warehousing:

This involves receiving, transfer, selection, shipping and storage of goods to the appropriate location in the warehouse.

Warehouse:

This is a place where finished goods are stored until they are sold.

Product:

A goods service or idea for which customers will exchange money or something else value.

Marketing Channel:

A system designed to more goods and services from producers to consumers which consists of people and organizations supported by various facilities equipments and information resources

Marketing Intermediaries:

People or organizations that assist in the flow of product in a marketing channel.

Retails:

Intermediaries that sell to final customers. They purchase goods from wholesalers and in some case directly from the producers.

Wholesalers:

Intermediaries that perform a variety of marketing functions more goods and services through the channel to retailers and organizational customers.

Transportation:

The provision and adequate management of the right quality and quantity of vehicles for the evacuation of finished goods from the factory, on plant warehouse to firms various market.


Chapter Five


5.0 Summary, Conclusion And Recommendation

5.1 Introduction

In this chapter, the researcher summarized the findings which anchors on the subject matter of this project work. the researcher was moved to review and analyze the impact of warehousing on the efficient distribution of soft drink using Nigerian bottling company Plc, Owerri as a case study.

The researcher also made some conclusion from the findings and finally recommended to the company on how to effectively carry out the warehousing activities to achieve its company objectives.


5.2 Summary Of Findings

From the data collected and analyzed, the researcher was motivated to make the following summaries of the findings the researcher found out that proper warehousing availability has a significant impact on the effective distribution of soft drink.

Citing warehousing nearer to the market will help on the effective distribution of products. In today’s economy, manufacturers do not sell their products directly to the final consumers between the producers and the final consumers are some marketing intermediaries performing various functions. One of these functions performed by the intermediaries are provision of warehousing for efficient distribution.

Moreover, the researcher found out that unavailability of warehousing may lead to ineffective and inefficient distribution, thereby reducing the sales performance of the company.
Finally, the comprehensive perception of the staff and consumers is that adequate warehousing and its contingency increase the company’s sales productivity, profitability, market share etc of the company.


5.3 Conclusion

The aim of the above summary of finding was to assist in drawing a valid conclusion as regards this research project.
With respect to that, the following conclusions were made:

In spite of several functions performed by the intermediaries, provision of warehousing occupies a large portion on the overall marketing effort. If all products produced by a company using large scale production are not stocked, the company might be exposed to relative scarcity when demand for such product is high.

The role of warehousing cannot be over emphasized, business executives who so not see the usefulness of warehousing ought to start making provisions for warehousing in order to complete favourably in the market place.

Finally, many companies have failed due to negligence of provision of warehousing and its management.


5.4 Recommendations

From the fore-going, it has been observed that warehousing determines the success and failure of company’s product.

To this effect, the following recommendations are itemized as follows;

  1. There should be adequate provision of warehousing both the private warehousing and public warehousing to enhance effective distribution of the products.
  2. The location of the warehousing should be nearer to the market to facilitate the coverage of the product.
  3. Suffice it to say that the company should employ a competent warehousing manager who oversees warehousing operation.
  4. The company should also a matter of fact embark on proper market research to know the quantity to be produced and be stocked.
  5. Finally, companies should accord warehousing activities the desired priority attention at top management level.

An Analysis Of Impact Of Warehousing On The Efficient Distribution Of Soft Drinks (A Case Study Of Nigerian Bottling Company Plc, Owerri)


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