Impact Of Road Transportation Mode On The Marketing Of Consumer Goods In Nigeria

Impact Of Road Transportation Mode On The Marketing Of Consumer Goods In Nigeria

Abstract

This study is mainly to ascertain the effects of road transportation mode on the marketing of consumer goods in Nigeria.

The following were the objectives of the study:

• To find out how road transportation system help consumers in the distribution of their products in Nigeria.
• To know how extend to which road transportation system affected the marketing of consumers goods.

The study among other revealed the following:

• That road transport affect the marketing of consumer products in Nigeria.
• Consumer goods charges high due to high cost of transportation.

Based on the findings of the study, the following recommendations were made:-

The identification of the problem – based on the problem and finding of the study, some useful recommendations are made towards growing more foods.

I still use this medium to advice that government should put eye on the poor road network so that consumers will not find it difficult in marketing their products.

Chapter One

Introduction

1.1 Background of the Study

Food production is geographically dispersed and the task of linking the several food production centres with the consumption centres instance is critically dependent on physical distribution:

(According to Owen 1969:86) that the wide variety of Nigeria food would not be available without the complex of transportation system which serves the food industry farm product, therefore depend upon transportation for the creation and preservation of their value.

Based on the above reasoning, the impact as well as very important to the road transportation system is also investigated the study with a particular reference to the marketing of consumer goods in Enugu metropolis. The quest to achieve self sufficiency food production is one of the highest priority areas facing most of the worlds people today, it is also a problem that threatens to worsen rapidly in the years ahead (According to Okereke 1984:4:6:60) on the road transport on the marketing of consumers goods that the interaction between transportation and consumers economic development is always a subject of theoretical interest and practical importance while some regard transport improvement as indispensable to an acceleration of the development process, others look at transport development as a result of rather than a cause of economic development.

(Nigeria trade journals, vol, 9 No 1 January/March 1961) report on nation food and organization conference (FAO) that the food requirements of the developing nations will increase by a staggering 125% by 1989. On the other hand problems relating to rural inaccessibility have continued to play the world and in particular Nigeria distribution. It is on this basis that government and transport policy makers should intensify efforts to improve the transportation system especially in road network system. Their collective or individual efforts and endeavors should be directed towards fighting a war against hunger, and providing necessary transport facilities and services and contribute to judicious investment decision in related areas that can help assure the supply of additional food and its distribution to consumers.

However, it becomes a matter for debate and intensive inquiry whether it is beneficial to extend and improve transport facilities as development proceeds or whether the available limited capital resources should be (hopefully more efficient and beneficial) invested in other sectors of economy.

1.2 Statement of the Problem

Ever since the beginning of time, consumers and transportation have always co-existed inseparably. This is not only because the source of food and fiber or other economic products must be reasonable accessible and on being collected be distributed to markets, ports and factories carries services operation are necessary condition for effecting an efficient physical distribution of consumers goods. Transportation network is a cornerstone of the modern food marketing system. Transportation serves as a means of moving goods, ideas and information geared towards increase productivity.

In Nigerian road constitute the most important infrastructure in the structural transformation of her consumer products in Enugu metropolis, most of the road traverse a territory of sharp contrasts in climate, soil and vegetations and this hinders consumers progress. In some rural areas most of the road which are of course essential for the prompt evacuation of produce from the farms to the market places are often time inaccessible all year round. Most of these road, poorly devoured and winding, this prevents easy access to the hinder land where the majority of the farmers were located. Even where such road are in a fair condition there is the problem caused by poor maintenance, lack of adequate executive capacity, lack of suitable materials and management problem. The vicious combination of these factors is that cost are higher.

Besides, the inadequacy of road network services are inefficiently executed, delay in transit bad loading and off loading, rough handling of goods characterize road net transport resulting in great losses from damages spoilage and deterioration of preventing farmers from specializing in the crops that offer them the best return. If consumers is to respond to the growing demand then it will be necessary to evolve a good progressive rural structure with rural roads to expedite and reduce the cost of the flow of consumer commodities information and all sorts of rural services to enable it contribute meaningfully to general economic growth. This will also help to accommodate increase traffic flows in both direction impute moving from the urban area to the farm and output in the opposite direction. The task involves a large additional to rural network and maintaining existing road, the expansion of storage and processing facilities and a new institutional arrangement for managing and financing the total system.

1.3 Objective of the Study

This study will attempt to relate road transport to the economy as regards to the marketing of consumers goods in Enugu metropolis. The objective include:

1. To determine the extent to which road transportation system has affected the marketing of consumer goods.
2. To identify those factors that are directly or indirectly related to the marketing of consumers goods and to what extend they have contributed to it.
3. To offer useful recommendation with a view to make the marketing of consumer goods a successful and effective in Enugu metropolis.
4. To find out whether transportation system especially in road network system improved the marketing of consumers in Nigeria.
5. To find out how road transportation system help consumers in the distribution of their products in Nigeria.

1.4 Hypotheses Formulation

Hypotheses 1

• H₀: The nature of road network in Enugu South Local Government Area affects the marketing of consumer goods.
• H₁: The nature of road transport system in Enugu South Local Government Area does not affect the marketing of consumer goods.

Hypotheses 2

• H₀: The nature of road network in Enugu south L.G.A. does not affects the marketing of consumer goods.
• H₂: The nature of road network in Enugu south L.G.A. affects the marketing of consumer goods.

Hypotheses 3

• H₀: Inaccessibility reduces the incentive to transport consumer goods.
• H₃: Inaccessibility does not reduces the incentive to transport consumer goods.

1.5 Significance of the Study

The increased interest in this study is due partially to the gaindul and developmental imputs consumers can make to the economy and most importantly to the tremendous impact of transportation infrastructure on regional economic.

This is because transport and development as well as consumers are usually closely related since each of them influences the fortunes and the relative rate of growth of the others.

The significance of this study is further highlighted considering that in Nigeria, the road is the only mode of transport by which all the staes of the federation are linked, especially with regards to the movement and distribution of consumers goods from the various rural areas of production to the different urban areas of the state for consumption.

Finally, the study shall also serve as a stimulant or reference guide for further research in this area especially in this era of population explosion and impending food shortage.

1.6 Scope of the Study

In Enugu metropolis, most of the consumer goods are:

• Yam
• Garri
• Cassava
• Ricse
• Tomatoes etc.

These are produced in the village located in the remote town, because of difference in ecological factors such climate, soil, texture etc. are produce more in the village several types of food and other consumers goods than others.

Taking cognizance of the fact that the study corners the entire Enugu metropolis, as a result of dearth of time therefore, it would be firesome and almost impossible to visit all the town in Enugu metropolis, secondly, because the attendants cost involved if the whole towns should be visited cannot be afforded by the researcher, coupled also with the final year academic work and recognising that Emene zone is the greatest producer of the main food items.

• Yam
• Garri
• Cassava

In this areas the study therefore will be restricted and limited to the afore said zone in investigating the impact of road transport system on the marketing of consumer goods in Enugu metropolis.

1.7 Definition of Terms

Considering that the subject matter of the study is the impact of road transportation system on the marketing of road transportation system on the marketing of consumer goods in Nigeria, a definition of the concepts should include the following:

• Consumer
• Marketing
• Transportation

Consumer goods

Could be defined as those goods that are needed for the satisfaction of the consumers needs, just to mention but few, (garri, yam, tomatoes).

Marketing

On its own is define as the performance of all business activities that direct the flow of goods and services from the producer to the consumers user.

According to (Kotler 1980:9) marketing is defined as a human activity directed at satisfying needs and wants through exchange process.

Transportation

Is a system for carrying people or goods from one place to another using vehicles or roads.

1.8 Scope of the Study

The researcher covers three areas in writing this project and they are:

• Emene
• Abakpa
• New Market

The fact remains that the modes of operation of consumer goods from the place of production to where it is been sold is a cumbersome task in the hands of the producer. This is because consumers goods like vegetable, yam and tomatoes are being produced in the remote area lke Abakpa, Emene and sometimes Abakaliki and usually produce in large quantity.

As ealier said that this product are produce in the rural areas by the farmer, the problem of transporting this goods from the village to where it is needed can only be done through transportation by land or train where the lather are still functional.

1.9 Study Area

Enugu State is in the South-east geo-graphical zone of Nigeria. It was created on August 27, 1991 with Enugu city as its capital. The state derives its name Enugu (Hill Top) from the capital city which was established in 1909 as small coal mining town. From Enugu the British administration was able to spread its influence over the southern Province of Nigeria. The Colonial past of Enugu is today evidence by the Georgian building types and meandering narrow roads within the residential area originally reserved for the whites, an area which is today called the Government Reserved Area (GRA.)

From being the capital of the southern Province, Enugu became the capital of the Eastern Region (now divided into nine States), and Capital of the defunct Republic of Biafra, thereafter it became the capital of East Central State, Anambra State, (old) Enugu State, and now the present Enugu State through a process of state creation and diffusion of administrative authority. A traditional Enugu man is hospital, warm and enterprising. The State is predominately occupied by the Igbo ethnic group with some pockets of Igala speaking communities of Ette in Igbo-Eze-North LGA, Ogurugu and Ojjor in Uzo-Uwani LGA respectively. Enugu State shares boarders with Abia State and Imo State to South, Ebonyi State to the east, Benue State to the northeast, Kogi State to the North West and Anambra state to the west. The state is located in a tropical rain forest zone with humid climate. The mean daily temperature is 26.7 °C (80.1 °F). As in the rest of West Africa, the rainy season and dry season are the only weather periods that recurs in the State.

The State Government and the Local Government are the two levels of government in Enugu State as in all other states of Nigeria. Sullivan Chime is the current Executive Governor of Enugu State. He was first elected in April 2007 and was sworn into office on May 29th, 2007. He recontested the position in 2011 and was re-elected. The governor has a group of commissioners, who oversee government portfolios such as Health, Housing, Education, works etc. Both the governor and the commissioners form the Executive Council of Enugu State. The seat of government is based at the Government House, Enugu. There are 17 Local Government Area in Enugu State. These are Aninri, Agwu, Enugu East, Enugu North, Enugu South, Ezeagu, Igbo Etiti, Igbo-eze North, Igboeze South, Isi-Uzo, Nkanu East, Nkanu West, Nsukka, Oji-River, Udenu, Udi, Uzo-Uwani.

Chapter Five

Summary, Recommendation and Conclusion

The purpose of this chapter is to present a summary of the findings based on the stated and tested hypotheses, and to highlight other findings of the study in order to enable meaningful conclusions to be drawn.

Finally useful recommendation are then made based on the findings.

5.1 Summary of Findings

A brief summary of the results of the study as seen from the acceptance or rejection of the earlier stated hypothesis is made here.

Hypothesis One

This hypothesis states that the nature of road network in Enugu South Local Government Area affects the marketing of consumer goods. It was tested by using pie-chart and chi-square statistical distribution as tools of analysis.
From the results obtained, it was observed that majority of the respondents hold strongly the view that the (poor) nature of road net-work in Enugu effects the marketing of consumer goods.

This however is the view expressed by 132 out of 254 respondents, representing approximately 52% of total respondents. The implication of this finding is that the (poor) nature of the roads makes distribution and effective marketing of the consumer goods difficult for the rural retailers and consumers.

Hypothesis Two

This hypothesis states that the nature of road network in Enugu south L.G.A. does not affects the marketing of consumer goods. Again, this hypothesis was tested by the use of pie-chart and chi-square statistical distribution as tools of analysis.

From the results obtained, it was found that most of the respondents hold strongly the view that inaccessibility (caused by poor-state of the roads) reduces the affects the marketing of consumer goods. This findings also revealed that the nature of road network in Enugu south L.G.A. affects the marketing of consumer goods.

This result is the view expressed by about of 120 respondents, representing approximately 80% of total respondents.

Hypothesis Three

This third hypothesis states that inaccessibility reduces the incentive to transport of consumer goods, this hypothesis was tested by the use of 2-test analysis. The essence of using this tool of analysis is to establish whether any relationship exists between the (poor) nature of the roads and the prices of the products since the cost of transportation depends on the nature of the roads.

From the results obtained, it was found that majority of the respondents hold the view that inaccessibility reduces the incentive to transport of consumer goods.

It can therefore be finally established that the inaccessibility in Enugu L.G.A. to a great extent reduces the incentive to transport of consumer goods. This is because importation usually add up transportation cost to the prices charged for the products, thereby making the process high.

5.2 Other Finding

Apart from the finding made through the test of hypotheses, other useful and reliable finding and observations were made during the course of the study. Such other findings are summarized as shown below:

1. That majority of those engaged in marketing of the consumer goods are aged between 30 to 40 years and earn less than N200,000 per annum.
2. That most of the people involved in marketing of consumer goods and importing had little or no education and this affects their level of productivity.
3. That apart from poor road facilities, inadequate vehicle facilities and road distance to consumers are other problems military against marketing of consumer goods in the local government area.
4. That the poor state of the roads not only reduces the incentive to marketers but also causes urbanization and creates conservations.
5. That the prices of consumer goods is influenced not only by the poor road network but also by government tax.

5.3 Conclusion

Generally, researches are conducted with a view to finding out better and new methods of improvement in all fields of human endeavour. This study, however has been concerned with determining the impact of road transport mode in the marketing of consumer goodsin Enugu South L.G.A.

It is generally believed that production and promotion of a product is never complete until what is produced gets to the consumers and for this purpose to be achieved goods must be made available to be consumers at the right place and time. This of course is the essence of transportation in marketing.

In the course of the study, efforts were made to identify those factors that directly or indirectly affect the effective marketing of consumer goods in Enugu South L.G.A. prominent among the factors was poor road network which in the respondent’s views was the greatest problem hindering effective marketing of consumer goods in the L.G.A.
Since poor road network and lack of maintenance have been identified as major shortcomings in the marketing process of consumer goods, the incentive and enterprise to shift in more goods is therefore greatly reduced. As a result, promoters and marketer’s profits are reduced and a lot of wastage due to poor or no storage facilities is experienced.

The implication of these is quite obvious, it causes dearth and scarcity of consumer goods especially in the urban markets. When this happens, the tendency is for the prices of thisconsumer goods to rise owing to increased costs of inputs like efforts and transportation costs. The modern marketing system, and since transportation services are a necessary condition for effecting an efficient physical, distributor, distribution of consumer goods, one cannot therefore, but conclude that efficient and reliable of road transportation mode is desirous and indispensable in effective marketing of consumer goods in Nigeria and Enugu SouthL.G.A. in particular.

5.4 Recommendations

As is normally said, the first step is solving any problem is the identification of the problem. Based on the identified problems and findings of the study, some useful recommendation are made all armed towards importing and exporting more goods and enhancing effective marketing of consumer goods in Nigeria and Enugu SouthL.G.A. in particular. This is with a view to achieving self-sufficiency in consumer goods supply.

1. In planning for consumer good supply in an area, it is absolutely essential that rural feeder roads are constructed to link such area and where the roads are in a terrible state of disrepair, be reconstructed or rehabilitated. This recommendation is to enhance easy evacuation of goods to the various areas of need.
2. Given that inaccessibility caused by poor state of the roads reduces the incentive to marketers of consumer goods, it is highly recommended that the government makes efforts to improve upon the nature of the roads. On the alternative it could begin to subsidies the marketers cost of importing and marketing. This will raise the morale and as well serve as an incentive to higher importation.
3. Having established the fact that transportation cost increases the prices of the consumer goods, it is recommended that the government with the collective will of the people, establish areas where government vehicles can collect and transport this goods to the urban markets.
4. Consumers co-operatives, it is also suggested could be established to help lower the prices of these goods.In the height of the above, it is also recommended that government invests heavily in rural region roads and again ensures adequate and proper maintenance to enable the road sustain in all seasons.
5. Furthermore, it is recommended that planning of road network should not be left to civil on engineers alone.

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