Problem Of Physical Distribution In A Beverage Industry

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Problem Of Physical Distribution In A Beverage Industry


This research work is carried out to determine the problems of physical distribution management in a beverage industry. A case study of Nigeria bottling company Owerri.

To achieve this, it is necessary to find out the physical distribution problem in a beverage industry. The study is aimed at.

  1. To determine the factors that affect physical distribution in a beverage industries.
  2. To determine the activities inherent in physical distribution, its barriers and to identify the factors.
  3. To recommend ways and means of improving the physical distribution system.

The data for the study was collected through the use of questionnaire and interviews which was conducted at the premises of the industry. The were analyzed, giving solution to such as suing the right distribution channels and ensuring that product are distributed to where they are highly needed for effective physical distribution.

This work is written in chapters. Chapter one is the introductory part of the work, chapter two takes about the literature review chapter three is the research methodology, then chapter four review the data presentation of the work done and the chapter five is the summary, conclusion and the recommendation of the work.

Chapter One


1.1 Background of the Study

According the Kotler (1986:80 distribution channel involves planning, implementing and controlling the physical flow of materials and final goods from point of orign to point of use to meet the needs of customers as a profit.
He went further to say that the major physical distribution cost is transportation, followed by inventory carrying cost, warehousing and or reprocessing, physical distribution management should be broadened to include the distribution cost could be more effectively managed.

There should be an service to get to the final consumer at the right time.

This is because the consumer is the distribution of all production process. The distributors have to date into account the changing panthern of the market and the activity of the competitors. And also the goal which the industry sets to achieve and also determining the product need of consumers before embraking on physical distribution management.

The use of distribution in conveying products to the consumer are an behalf of manufacturers in dealing with their customers. These distributors are also known as the middlemen or wholesales who act as a link between the manufacturers and consumers. One of the problems facing most firms is the physical distribution of product. Because of this reason, a lot of research has been done and most of these researchers tried to find out solution to these problems.

1.2 Statement of the Problem

Because of the competitive nature of every industry, many companies who are unable to cope with the competition have collapsed and foiled.

Distribution is an important aspect of marketing, many industries loose their share as a result of poor distribution management most consumers blame them for high priel because the distribution add cost to the product, buy, clain that there would be no effectiveness and efficiency in distribution of product without the introduction of distributions.

No much has been written or done to know the extent of the influence of distribution in marketing and thereby coming out with possible and workable solution there is therefore, the heed for the researcher to evaluate the distribution channel in marketing of coco cola product in Imo State using Nigeria Bottling company Owerri as a case study. The researcher channels are unnecessary and if some channels or addition should be made.

1.3 Objective of the Study

The specific objective of this study are as follows.

  1. To critically examine the distribution channels of Nigeria Bottling Company Owerri.
  2. To determine and examine the various channels used in distributing soft drinks in Imo State.
  3. To determine the problems encountered in the distribution channel and also to identify the factors that could be responsible for such situation.
  4. To examine the impact of distribution cost to print.
  5. To fund and recommend possible solution to the problems associated with the distribution.

1.4 Significance of the Study

Distribution is not static but change with the changing market but change study is very significant because it exposes the effect of improper choice of distribution channel in the manufacturing industry ike Nigeria Bottling company Owerri.

The total physical distribution concept will assist industries to identify areas where changes have to take place for progress to be made.

This study also aimed at informing the management of the implication of inefficient communication system and exposes the benefits of consumers on the new techniques for the physical distribution channel in a manufacturing industry.

1.5 Research Question

The research questions are stated as follows

  1. Are there effective distribution of soft drink products to customer and consumers.
  2. Does your company have an effective transportation system.
  3. Does the use of advertising increase the distribution system in your company.
  4. Does the conflict between retailer and distributors have effect on your distribution channel.
  5. How has physical distribution channel increase your production system.

1.6 Hypothesis

The following research hypothesis will be tested.

  1. Ho: There is effective distribution of soft drink product to customers and consumers.
    Hi: There is no effective distribution of soft drink product to customer and consumers.
  2. Ho: Transportation cost is a limiting factor in the distribution of soft drink.
    Hi: Transportation cost is not limiting factor in the distribution of soft drink.
  3. Ho: Conflict between retailer and distributor have effect on distribution channel.
    Hi: Conflict between retailer and distributors have no effect on distribution channel.

1.7 Scope of the Study

This research work is limited to the physical distribution management in a manufacturing industry in Owerri with reference to Nigeria Bottling company Owerri plant. The analysis made in this research. Is based on data made available to the researcher by the company’s staffs through questionnaires and responses. The sample size is the selected area. The sample size is the selected area of study and it involves observation, questionnaire and interview.

1.8 Limitation of the Study

In actual sense, this study should have involved the study of the some of the manufacturing industries, but because of the geographical distribution of these industries, it is not practicable for the researcher to carryout research work on these industries. In view of this, the researcher has decided, after careful study of all the various types of industries to concentrate on the Nigeria Bottling company Owerri .

In addition, there was the problem of time and financial, the time allocated for the completion of this research is very limited as such, the industries in the state.

There was also the problem of compromising attitude of the stated of Nigeria Bottling company especially those at the soft they always very suspicious of the researchers mission.

However, being these constraint, the researcher has made efforts to ensure that she lift no stone unturned in the research for materials and evidence necessary for the purpose of carrying out this research successfully.

1.9 Definition of Terms

The term physical distribution has varied meanings and terms associated with it as understated.

1. Physical:

It loauid be partaning to body t is the nature of things.

2. Distribution:

It is the act of dividing and sharing out things to different places or at different points.

3. Physical distribution:

This is a task of ensuring that the goods and services produced by the organization are transported from te place of production to the point of consumption, as efficiently and as economically as possible.

4. Management:

It is the control of operating a business tactfully.

5. Product:

It is the physical entity and services which satieties aerating customers need.

6. Channel:

It is the passage for the medium of communication.

7. Communication:

It is the act of including others to interpret an idea in a manner intended by the speaker.

8. Industry:

Manufacturing or combination of firms that products similar goods.

9. Wholesalers

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

10. transportation:

The provision and adequate manufacturing of the right quality and quantity of vehecles for the evaluation of finished goods.

11. Consumption:

It is the sole end purpose of all production.

Chapter Five

Summary and Conclusion

5.1 Summary

This study was undertaken to specifically examine the problems of physical distribution in the beverage industry. Lots of these problems have been discussed in the chapter two of this project.

However, the student proceed to Nigeria Bottling company, owerri to have a first hand verification of facts.

Findings from the study reveals that:

  1. Nigeria Bottling Company Owerri records effective distribution.
  2. Nigeria Bottling company, Owerri have an effective transportation system.
  3. Advertising has not had a significant effect, however, the company have not regretted adopting it as it serves as a vital strategy for effective marketing.
  4. That conflict between retailers and distributors of Nigeria Bottling Company have effect on the company’s distribution channel.

5.2 Conclusion and Recommendation

One major challenge facing companies is that of attracting and retaining customers in acompetitive environment. Companies can attract customers by offering better customerservice through physical distribution (PD) system that is sufficiently sensitive andflexible to permit timely response to customer requirements and cost effective to ensureprofit. A company’s failure to provide desired level of customer service leads tocustomer dissatisfaction and loss of customers. The strategic importance of an effectiveand efficient PD system cannot be over-emphasized, especially in soft drink industrywhere brand loyalty is not strong but availability and price play major roles indetermining the final demand for the products.

Distribution is one of the longest standing subjects of study in Marketing. Physicaldistribution is one of the two arms of distribution while the other is channel ofdistribution. Ironically, the concept of physical distribution as a component of overallcustomer service remains ambiguous. One aspect of the more generic concept ofmarketing customer service is the ability to provide time and place utility, termed“physical distribution”. The importance of physical distribution in marketing as statedearlier cannot be over emphasized. Generally speaking, all marketing effort which hasbeen put behind the product fails if the potential buyers do not find it on hand whenthey are buying.

The study recommends constant and effective transport system. This system should be carefully monitored to avoid mishaps that have previously befell the organization. Also, the company has to review its advertising programmes to ensure that the right market are met. This will increase patronage for the company.

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