The Effectiveness Of Physical Distribution Of Charis Satchet Water In Enugu Metropolis (A Case Study Of EJ Collince Company)
This research work is mainly on effectiveness of physical distribution of Chris sachet Water in Enugu metropolis. The data needed for this study was collected from employees, consumers of Charis sachet water.
The objective is to find out if their products have very wide demand within Enugu metropolis. To determine the rate of satisfaction of consumers with the present level of physical distribution and to know if their product reaches the consumers at the worked for. The research methodology employed were questionnaires and observation of how physical distribution are implemented.
In addition, various statistical models like Top man formular and Z test techniques were used in calculating the sample size and testing of the hypothesis respectively.
From the analysis of the data obtained it was discovered that Charis sachet water have very wide demand within Enugu Metropolis that dealers are not satisfied with the present level of physical distribution service they receiving, products are not distributed to very point where they are needed at the right time and quantity and that they receive complaints from customer with this it was recommended that Charis sachet water should increase their product quantity for greater market share, improve physical distribution by providing enough product at the right time and right quantity and customer oriented.
Based on the findings, and the various facts highlighted, the following where recommended.
- Product high quality should be maintained for continual greater market share.
- In view of the fact that the initial problem of the company is finding capable distribution outlets, the company should engages more on intensive physical distribution system so that the numerous customers are adequately reached.
- The company should also try as much as possible to stop renting if this is implemented the warehousing (depot) facilities must be satisfactory
- The company should provide more storage facilities to customers and Kiosks to every customer in order to increase sales.
- The sales truck should serviced more often to avoid break down to enable it render adequate interrupted delivery service and this will minimize complaints from customers.
1.1 Background of the Study
Production is uncompleted until the good get to the final consumer whom they are meant. A typical firm will deliver or discover that the consumer for its products are scattered abroad.
The firm decision to distribute its products directly through own sales outlets or indirectly through marketing intermediaries such as wholesale and retailers alone is not enough to get the goods to the consumers. The firm has to ensure that the product are actually available or make available to the distribution at lets.
Adequate core has to be taken of the products minimize losses or damages, and commensurate customer service have to be given in order to achieve customer satisfaction and increase patronage.
In order management of the flow of products from manufacturer to consumer with aim to achieve consumer satisfaction and goal of the firm, physical distribution must be properly channeled to this respect. The increase emphasis given to the concept of the 1950,s is a practical example of its immense contribution to the successful achievement of marketing goals. Physical distribution is just how companies store; handle more goods so that they will be available to consumers at the right time and place.
Consumers attraction and satisfaction are highly influence by the seller physical distribution capabilities. As such the issue of physical distribution is important in business endeavour. An executive physical distribution which result to a reduction in cost of physical distribution will lead to a reduction in production cost or product price, which will invariably head to the attraction of many price conscious consumers.
In Nigeria and as well as most other nations, industries are localized or concentrated in few industrial cities or layout wile the consumers or their products are scattered abroad.
Efficient transportation and location of sales outlets will enable industries to make their products available to consumer living very far. Efficient transportation and physical can give a company advantage in being close to these consumers.
For example, vita malt drinks produced by Associated Breweries Ltd. In Ogun State of Nigeria compete favourably with other malt drinks in virtually all ports of the country as a result of the efficient planning and coordination of physical distribution activities which make goods available at the right place and time or where right place and needed.
Expert believe that substantial savings can be gain in the physical distribution area which has been describe as “the last frontier for cost economics” (Journal of marketing April 1962:15)
Physical distribution in the sachet industries should be intensive they should stock their products in as outlet are possible. The goals must have place utility. Cigarette for example, since over one million outlets to maximized brand exposure and convenience.
Physical distribution should be intensive because consumers are not efficient distribution of the product is very important to gain marketing goals and to compete efficiently and effectively too.
1.2 Historical Background of the Company
Charis sachet water industry one of the leading name in sachet water industry in Enugu Metropolis. The company is located in heart of the commercial city of Enugu J.E Collince company was establishes over a decades with improved capacity physical distribution of their products.
The company has so many distribution outlets and target geographical areas. The J.E. Collince the makers of Charis sachet water was among the largest sale sachet water in the industry in Enugu.
The profitability and success of the company can be clearly traced as they are heavily patronized in the competitive business.
The company is located in heart of Enugu metropolis (River Asata layout). The company have a brand name Charis water which the production site is in No. 3 Mildland Avenue, Asata River layout Enugu.
1.3 Statement of Problems
Physical distribution is a very important aspect of distribution activity as it creates place and time utility and set the stage for possession and title utility. All gained towards customers satisfaction.
Based on this therefore, there is need for a careful handling of the physical distribution functions for a successful operation of sachet water industries.
However, for Nigeria sachet water industries physical distribution system to beat lest near perfection. It must rate highly in its care activities such as transportation, warehousing, inventory management, and others.
Processing also have the ability to organize these price of activities properly and implement them efficiently and effectively, at time the salesman are not efficient in carrying out their physical distribution activities.
More so, the salesmen arbitrarily raise the cost of each buy of sachet water sold to intermediary, market thus reducing their margin some times the degree of the wholesalers margin affect the final customers. In some cases, the customers do not get enough of the products at the right time and in the right quality.
In the case of Charis sachet water industry they don’t have enough outlets for their product. Nevertheless, for them to compete effectively and efficiently with other sachet water company’s they need to have enough outlets for their products.
In most cases, the salesman direct some products already allocated to the company’s customers. More so, the distribution of Charis sachet products have a direct relationship with sales turnover it enjoys.
A negative response to any of these points will indicate that there is deviation from what should normally obtain. The desire to find out if any of such problem exist, their cause effect and what may be done to resolve such problems are the reasons for undertaking this research work.
1.4 Objective of the Study
In consonance with the macro objective to determine the effectiveness of physical distribution of Charis product in Enugu metropolis, this research has some objective which includes;
- To study the physical distribution activities of Charis sachet water in Enugu and try to find out if these activities are well performed as expected.
- Analyzing the present physical distribution system with the aims to accessing its level of efficiency is another point.
- To determine the nature of the market; if it diffused, concentrated or dusted.
- To also determines the extent to which the distribution of Charis dates with the sale being made.
1.5 Significance of the Study
It is important to study the effectiveness of physical distribution because without distribution companies cannot make sales.
The old buying in marketing was, that when you produce the product the whole world will bit a part to your door. In the modern time, it dose not apply because the place utilizing must be incorporated. This means that in addition to producing the best product, the customers must be communicated and they may want it delivered at a given time, place and form and such it the function of physical distribution.
Non- durable products such as Charis sachet water have to be supplied as at when needed. Any short fall in performance will reduce the level of customer service.
Thus it become important to study the physical distribution system and benefit from this effective they are and uncover and defects inherent within the system and then recommend measures to reduce or eliminate these defects.
Furthermore, it is expected that findings of this study will help the management and distribution of this company in improving their business activities. Customers will also benefit from this efficient physical distribution in that Charis product which will be made more ready available to them at all time.
1.6 Limitation of the Study
There is the problem of lack of time. The work is very elaborate yet we have very limited time to accomplish it and with other tight schedules. However, because of the importance of the subject matter, we are able to carry out a justifiable work from where dependable generalizations could be made again, there was there problem of financial constrain of the nations economic crunch.
The high cost of transportation to this company under study was also hindrance in the sense that most time the researcher had to repeat his visit twice or thrice a week before getting the information required. Also the consideration.
1.7 Research Questions
The research question for this work will be base on the following.
- What is the size of demand for Charis waters? Are customers satisfied with the present level of physical distribution service of Charis?
- Does Charis has enough distribution outlet to satisfy the customers. What is the distribution objective of Charis?
- What presentation of market is Charis serving? What is the type of Channel structure used by Charis?
- Is it from the produceto the customers or with the use of intermediaries?
- Does the distribution strategy questionnaire regular and fulfill the issue of time lines is it effective in terms of cost and distribution objectives?
1.8 Statement of Hypothesis
This Work is Based on the Following Hypothesis:
- H0: Charis water has very wide demand in Enugu metropolis.
Hi: Charis water dose not have wide demand in Enugu metropolis
- H0: Charis water are distributed to every point where they are needed at the right time and quantity.
Hi: Charis water are not distributed to every point where they are needed at the right time and quantity.
- H0: Customers are satisfied with the present level of physical distribution service they receive.
H1: Customers are not satisfied with the present level present level of physical distribution service they receive.
1.9 Definition of Terms
Is the movement of goods from the point pf production to the point of sale.
Is the marketing function of holding goods. It provides time utility.
Is the amount of goods being stored.
The transportation and sorting of the goods.
Is a place for load and unloading of products both in the central stores and the depot of Charis waters.
It is the process by which information is passed by a previously accepted symbol.
The searching out and communication with prospective buyers.
Summary of Findings, Conclusion and Recommendations.
5.1 Summary of Findings
In an attempt to study the physical distribution of Charis sachet water in Enugu metropolis, the following findings were made.
- It was found that the company’s initial problem was finding capable distribution outlets, which were overcome by intensive and efficient physical distribution system.
- The company deals with the wholesaler and retailer directly. Also received complaints occasionally from them and find solution to them.
- The company’s warehousing (depot) facilities are fairly satisfactory because they are not owned by the company but it has enough distribution outlet in Enugu.
- Storage facilities in form of cooler are provided by the company to some of the customers and it has enough sale truck in delivery of its products.
- The greater percentages of the dealers are retailer and they do not set enough products at the right quantity.
- It was also discovered that Charis product are not distributed to every point where they are needed at the right time and quantity.
- The company’s driver’s salesmen are fairly efficient and their attitude towards their dealers are satisfied.
- The price of Charis water is moderate as deduced by a greater percentage of the dealer.
- The company is customer oriented because it pays attention to dealers complaints and finds favourable solution to their problems.
- It was discovered that consumers after revival, they prefer Charis water product more than others sachet water product as such have very wide demand in Enugu metropolis.
Physical distribution is a very important aspect of distribution activity as it relates place and time utilities and set the stage of possession and title utility all geared towards customer’s satisfaction. It is duly established that some obvious flows exist in the physical distribution operations of the E.J Collince Company at River layout Asata Enugu. And the situation would get worse in the near future of appropriate actions are not taken.
Charis sachet water have very wide demand within Enugu metropolis. As such the company has an edge over other sachet water companies in the country and in order to maintain this position, it must improve on the physical distribution service and also maintain the quality of its product. Drawing influence from findings, it was found that a greater percentage if the dealers are not satisfied with the present level of physical distribution service they receive and more effort should be made towards that direction.
Again, the company had no warehousing facilities and fairly satisfactory and storage facilities are provided for some customers but this should be increase in the near future. Also company deals with both wholesaler and retailers and by this much attention is paid to their problems resulting to cordial relationship between the customers and company.
Moreover the company engages in intensive physical distribution system, that is why products are usually obtainable and the rice is moderate. Also the company has enough sales trucks in delivery of its products to the customers but they do not get enough products of the right time in the right quantity, which means the vehicles break down often or the driver salesmen are not very efficient. This shows that Charis sachet water are not distributed to every point where they are needed at the right time and quantity.
Finally, the researcher study is a worth while exercise because it has helped in studying the effectiveness of physical distribution system of Charis sachet water company and identifying the problems encountered in the system. It has also helped to broaden the knowledge of the experienced and business is like in practice with majority of customer taking Charis sachet water as their favourite, the company has good potential for growth and increased profit. If only it can endeavour to improve more an its physical distribution system in order to further satisfy its customers and consumers of its product. Also try to make the salesmen to be efficient in their work, and finally still maintain its high quality level.
They should also produce more of the products during hot season.
The researcher wishes to acknowledge the efforts of the management of E.J. Collince Company in providing Charis drink water to customer with storage facilities in form of coolers and Kiosks on free change basis. The above is a good marketing strategy, while should be maintained.
Product high quality should be maintained for continual greater market share.
Improvement and solution to the problems identified, the researcher therefore recommend the following.
In view of the fact that the initial problem of the company is finding capable distribution outlets, the company engages more on intensive physical distribution system so that the numerous customers are adequately reached.
Again, the company should try as much as possible to stop renting of this is implemented the warehousing (depot) facilities must be satisfactory to meet needs of company. Thirdly, the company should provide were storage facilities to customer and kiosks to every customer in order to increase sales. Fourthly, the sales trucks should be serviced more often to avoid break down to enable it render adequate uninterrupted delivery services and customers.
Also, Charis sachet water should increase the suppliers of those needed customers more than once a week.
To increase production during hot season when there is always increased season when there is always increased demand moreover to improve more on its physical distribution service by providing enough products at the right time and in the right quantity. The driver salesmen should be trained to increase efficiently.
The company should be customers oriented by paying attention to customer’s complaints and finding favourable of solution to their problem.
Advertisement should be embraced to create more awareness over their product including incentives to the customers.
Finally, the company should monitor the activities of drivers salesmen so as to make sure that they effectively and efficiently carrying out their duties.
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