Product Planning Management And Distribution Problems In Soft Drink Industry

Project and Seminar material for Public Administration

Abstract

Product planning, management and distribution problems are very vital in the production and distribution of every manufacturing organization. Before ever a manufacturing company could come with good quality product, it must undergo many process from planning for either short range or long ranges forecasting carrying out market research and consumer survey protesting the product and introducing different channels of distribution.

The aim of this study is to describe how the Nigerian Bottling company Enugu is really involved in the process of product planning, distribution and management. This is done by gathering information from staff and distribution channels, operators defining certain problems usually associated with product planning, management and distribution problems in the company and proposing remedial measures after revealing areas of problems. The questions in the questionnaire will be based on the research questions developed for this purpose while analysis developed for this purpose while formula we use percentage analysis to analyze data collected and accept 50% (percent) and above as significant and discharge influences under 50% (percent).

From here, the researcher will make a decision of findings, recommendation and conclusion. It is hoped that this study will aid managers in planning, distribution and managing their products by taking effective efficient decisions in these important areas. For example, the company should recruit highly skilled staff and give them adequate training.

Introducing operational research whereby decisions are taken jointly without each manager relying only on his own decision.

Chapter One

Introduction

1.1 Background of the Study

Product planning, distribution and management in the soft drink industry:

Nigerian Bottling Company Plc. Enugu, perspectives. The coca – cola company was established in 1886, Altanta Georgia U.S.A. The first product of the industry, which is coca – cola, was first bottled on 18th May 1886. The head quarter is at Georgia U.S.A hometown of the owner Dr. Johnson styth Pemberton a placist.

The name coca – cola was given by France. M. Robionson, Pemberton partner and book keeper. He also designed the following scripts that distinguish the famous trademark. Coca – cola contents remain a secret as they have been for over 116 years, the formula known as merchandize 7x, is kept in a special security vault in a bank in the united states of America Coca cola is the world leading soft millions bottles are consumed everyday in all part of the word.

(Source)

The Nigerian Bottling Company was established in Nigeria in 1953 (Apapa – Plant). It is today the number one soft drinks sold, more than 7,264, 138 bottles daily throughout Nigeria representing 302,773 crates of 24 bottles; a figure which is still growing with the continuity expansion of the existing 22 plants

The Nigeria Bottling Company Enugu was established in 1974. It is situated / located at 9th Mile Corner Ngwo in Udi Local Government Area of Enugu state. The first plant manager was Mr. Perridis, a white man from Greece. The company has its objective as organized and operated under the marketing concept. Company profit is a function of customer satisfaction.

Marketing concept by Philip Kotler is a management orientation that holds that key of the organization to determine the need and wants of target markets and to adapt the organization to delivery the desired satisfaction more effectively and efficiently its competitors. Current findings or research from the total drinks industry shows that Nigerian Bottling Company Plc has 93% of the total market share while Nigerian mineral water industries (Limca) has 4% market share seven 7 up Bottling company Plc. Has 3% market share. The mere fact that the company (NBC) produces well over six million bottles of soft drinks per day puts upon itself the responsibility of having to effectively and efficiently distribute these drinks so that they get to the consumers at the right place and at the right time.

To have the largest share of the market, NBC has 22 plants scattered all over Nigerian

The Nigerian Bottling Plc has its eastern corner plant. They are manufactures of Coca – cola Fanta, sprite, ginger ale, tonic water, soda water, krest-lemon, and has its depot located at Abakaliki, Nsukka, Ogoja, Ikom in cross River state, Achi, Agbani and Awka in Anambra state.

The Nigeria bolting company plc is currently under the supervisor of motive group o0f foreign firm to see the activities and operations of the company through out the country Nigeria Bolting company has fine department as sales and market departments, production financial ,personnel, and engineering department.

This research work is centered on the product planning, distribution and management of the Nigerian bolting companies product: coca-coda, Fanta, sprite, ginger-ale, tonic water soda water, krest lemon in Enugu plant to find out its strength and weakness in terms or planing distribution and management and suggest ways to reduce or eliminatory weakness found.

1.2 Definition of Problem;

In most consumer business operatives today the task of production planning, distribution and management is not an easy one. Emphasis is laid on the problem or statement of problem associated with product planning, distribution plc, Enugu.

The company has problem of procuring raw material for their products. The reason being that the federal government barred the importation of the basic material which the local suppliers do not have enough supply to the company also the local surplus has to be refined to bring them to the standard record of the company.

Distribution system of finished product and raw material of the company also constitute problem to the company since the company does not have enough intra-company agents and usually bulky.

Product planning and development is a problem to the management of NBC plc the reason being that the company exist in an economy strangled by hyper-in faction and insecurity, consumers are now being very careful on what they spend for or customer.

Competition drives out weaker firm form the market. The competitors are having a high quality product often not much different from the NBC’s like crush from Nigeria Breweries and 7 up bolting plc.

Bolting breakage and shop lifting is a common phenomenon in mineral industry. During production, a lot of bottles are record as breakage which in the stores department shop lifting pilfering is the order of the day and as such a lot is lost through this ugly act incident.

1.3 Objectives of the Study

This study is purely on product planning distribution and management. It is concerned with solving or answering the problem and question rose by the study. It aims at describing how NBC plc is really involved in these tasks. To do this, the study is based on information gathered from the staff.

The objective of the study is to define certain problem usually associated with product planning distribution and management in NBC, which require a proposal of remedial after revealing area of the problems.
The study will investigation on how the management of the NBC plc. Procures their raw material for their product.
To find out how distribution of finished products constitute a problem to the management of NBC Plc.
Also how product planning and development is a problem to the management of NBC Plc.
How they cope with their competitors during raining season.
Measures to be take against bottle breakage and pilferage in the company.

1.4 Research Hypothesis:

The research hypothesis of the research is purely based on the problems associated product planning distribution and management of the product of Nigeria bottling Company plc. Enugu plants.

How does the company Nigeria Bottling company plc. Has problem in procuring of their raw material for their product. H1= the company Nigeria bottling Plc has problem in procuring of their raw materials for their product.

Ho = Distribution of their finished products and raw material does it constitute a problem.
H1 = Distribution system constitute a problem to Nigerian bottling company Plc. Enugu.
Ho = Product planning and development is it a problem to the management of NBC Plc. Enugu.
H1 = Product planning and development always constitute a problem to the management NBC Plc. Enugu.
Ho= does competition constitute a problem to the management of the product of NBC Plc Enugu. H1 = competition constitute a problem to the manage of product of Nigeria bottling company Plc. Enugu.
H1= bottling breakage and pilfering does it constitute a problem in the distribution of the product of Nigeria bottling company Plc. H1 = bottling breakage and pilfering is a problem in the distribution of the products of Nigerian bottling company Plc. Enugu.

1.5 Significance of the Study

Research they said is a means of solving problem. According to Olaitan Nwoke (1992) “research is the process of arriving at dependable solutions to problem through the planned and systematic collection analysis and inter precaution of data it increases the knowledge and understanding of the research of the research problems, phenomena and the events concerning the activities as it is concerned with the product planning distribution and management in me Nigeria bottling company Plc. Enugu.

The research is determined to know the problem association with product planning distribution and management of the product of the Nigeria bottling company Plc. The research will be in better position to determine product that has lost its demand appeal in the market.

The research is benefit through the knowledge acquire while conducting the research while the company stands to have more credit, in that it help in product innovation, profit maximization and improving the living standard of the firm.

1.6 Scope of Study

This is study cover the Nigeria bottling company Plc. Enugu, the producer of:

Coca-Cola
Sprite
Fauta (quinine orange
Krest
Fata ginger ale
Club soda (fauta)

My research finding covers all the department of the company they include production personnel, engineering finances sales department in other to have an in –depth sight that will aid in research finding. I am basing my research on coca-coal product, which it started production in Nigeria in 1953

Chapter Five

5.0 Summary of Findings, Recommendations and Conclusion

5.1 Research Finding

This study has been concerned with the product planning, distribution and management using Nigeria bottling company plc, Enugu perspective. After an in depth search for facts, the researcher under took, modestly presented and an analyzed data that came up with following summaries:

That the management of Nigeria bottling company Enugu has problem in producing of raw material for their product and that their major sources of raw material is locally as testified by 40 or 36.70% of the sampled population.

Further more, the company- Nigeria bottling company Plc, is having problems in product planning, distribution and management as testified by 96 and 88.07% the population, emphasis is on the with drawl of fanta channel a new product.

5.2 Recommendation

In view of the product planning, distribution and management, the following recommendation have been made based on the research findings, the company should reduce the problems of procuring raw materials by adequately determining the level of raw material to stock ahead of time. They should have more than one supplier so as avoid the problem of out of stock of raw materials caused by the suppliers.

Adequate maintenance of the company’s trucks and purchasing of raw ones for conveying of their finished products should be addressed seriously. Distribution channel makes it possible for a product to be moved from the producer to the ultimate user.

Moreover, the company should try as much as possible to start planning for their product ahead of time, long-range planning should be adopted. The company should recruit highly skilled and unskilled staff and adequate training should be give to them so as to lessen the problems of some major challenges product of the company from the market due to problems associated with planning and management.

5.3 Limitation of Study

These are some of the thing lam countered during my research on product planning, management and distribution problem.

Financial Problem: The main problem Levant through was that of finance. As a student writing a project a had to go to the library for proper research and I made series of inquiries and research, I traveled to places for the purpose of proper project writing. But due to lack of money I was unable to do it well and project work was limited to the one I was able to research on.

Lack of Enough Time: As a student of S.D.DE, time is not on our side. This is because I am working, and my employer will not to carry out the research properly, as a result of this, I was able to do my research with the little time I was given by my employer, and the little I was able to squeeze out myself.

Poor Response to Questionnaire and Poor Communication: Many people are always afraid to fill the questionnaire for the following reasons; they think that the information they give many be used against them. (b) some think that it will be published in the news paper, while some will walk you out of their house of office. Another thing is that people find it difficult to fill any aspect of the questionnaire that does not have yes or no.

Another thing is that research find it difficult getting source information that are tagged” classified” or “ secret” especially from public or government offices. For example in Coca-Cola bottling company, found it difficult to get some information from them, as they kept telling come today come tomorrow, or the person that will attend to you is not on sit today, as it were, the research discovered that sales promotion is the major marketing strategy used by NBC Plc. Enugu to fight their numerous competitors while advertising and publicity plays lesser as compared with 54 or 49.54% and 25 or 22.94% of advert and publicity respectively.

Also during production a lot of bottle breakage’s are been recorded as damages, efforts are been made by the management in the areas of bottle breakage controls, bonus are given to the best shift in the production for bottle breakage’s control.

A lot of finished products are lost in the store department through pilfering by the staff of the company especially.
That the NBC trucks are some times attacked by armed robbers while on transit. Further more, that the poor maintenance of source of the company truck has been causing road accidents, traffic congestion etc.

The totality of these incidents constitutes great losses. To that effect, security and maintenance measures are seriously in place. Facing the company planning and development of products.

Also recommendation is that the management should endeavor to put an end to the difficulties encountered in organizing and controlling the product development process, by introducing operational research which requires the company to form a team instead of each manager taking decision on his own.

In addition, the management should find out the season when the demand for the company product is at its peak level and when the market level fails. This will be done by carrying out a research through their customer (distribution) because the retailers are more close to the final consumer. Output level should be increased at period when demand is high. The company should add source district quality in their products so as to differentiate the taste from that of their competitors. This will enable the consumers to have a clear identification of company’s product. The company should encourage and introduce promotional tools like sale promotion advertising and publicity to boast their product.

Finally the security of the company should be re-organized, they should be well motivated to fight against pilfering, and source days off duty should be introduced security experts I force should be engaged to serve as an escort to the company trucks, while on transit. Equally merit and dedication should be rewarded. Elderly man in the security department should be retired to another department

5.4 Concluision

The data analyzed that finding led the researcher to conclude that Nigerian bottling company of their raw material for their products.

The research also concludes that the distribution of finished product of the NBC Plc, Enugu equally constitute a problem to the company.

The research went further to conclude that marketing could be complete without distribution.

In addition, the researcher concludes that the bottling company is having problems in product planning and development.

Also the company is having problems due to increase in competitors like 7 up bottling company, limca, crush etc in the mineral industry

Further, the researcher concludes that the need and importance of distribution can exemplified by under standing the functions it performs. Really, buying and selling are functions of exchange that must be performed in all market transaction and storage are more encompassing than physical distribution.

Finally, the research concludes in the area of distribution of finished goods/ products and during production that a lot of bottles were broken as a result of accident and absolutes machinery in the factory. Also a lot of bottles are wasted through pilfering in the store by the staff and visitors during non-production hours.

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