The Roles Of Effective Distribution Channels On Customers Satisfaction (A Case Study Of Nigeria Bottling Company Plc, Ilorin, Kwara State)

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The Roles Of Effective Distribution Channels On Customers Satisfaction (A Case Study Of Nigeria Bottling Company Plc, Ilorin, Kwara State)


The role of effect in distribution channel in any organization can not be over emphasized. This is because it assists positively in creating customers satisfaction, since the customer remain the king in any economy. Distribution channel a locust path and route through which product passes or move from the point of production to the point of consumption is essential hence, its significance never be divorce from marketing product The process cover five chapters: Chapter One: Background of study, statement of problem, objectives of the study, significance of the study, scope and limitation of the study, definition of terms, management, distribution policy and channels, marketing intermediaries agents direct sales. Chapter Two: Has to do with literature review, being the review of past authors work on the subject matter, direct and indirect method of distribution, wholesaling, limited service of wholesaler, retailing and their function, objective of distribution, the channel design decision, accounting for the cost of distribution principle of managing the channels and technique for managing the channel. Chapter Three: Consist of research methodology. This consist of the research method used instrument used for data collection, research population and sample size, the sampling procedure employed and the statistical techniques used in analysis of data and the information of data. Chapter four: Also cover, the presentation and analysis of data and the proof of hypothesis Chapter Five: The finding, conclusion and recommendation, summary

Table of Content

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

Chapter One

General Introduction

  • 1.0 Background of the Study
  • 1.1 Statement of the Research Problem
  • 1.2 Aim and Objectives
  • 1.3 Significant of the Study
  • 1.4 Scope and Limitation of the Study
  • 1.5 Historical Background of Nigeria Bottling Plc Ilorin
  • 1.6 Limitation and Constraints
  • 1.7 Organizational structure of the Nigeria Bottling Company Plc
  • 1.8 Definition of Terms

Chapter Two

Literature Review

  • 2.0 Introduction
  • 2.1 The Channel as a Unit
  • 2.2 An – Xray of Distribution
  • 2.3 Evolution of Distribution Channel in Nigeria
  • 2.4 Development of Distribution Channel
  • 2.5 need for marketing intermediaries
  • 2.6 method of distribution in the Nigeria market
  • 2.6.1. Direct Method
  • 2.6.2. Indirect Method
  • 2.7 Wholesaling
  • 2.7.1 Types And Function Of Wholesaling
  • 2.7.2 Merchant Wholesaler
  • 2.7.3 Limited Service Wholesalers
  • 2.7.4 Drop Shippers
  • 2.7.5. Mail Order Wholesalers
  • 2.7.6 Future Of Retailers
  • 2.7.7 Objective Of Distribution
  • 2.8 Major Consideration Of The Choice of Distribution
  • 2.9 Channel Design Decision
  • 2.10 Accounting for the Cost of Distribution
  • 2.11 Principle of Distribution Costing
  • 2.12 Techniques for Managing the Channel

Chapter Three

Research Methodology

  • 3.1 Research Method Used
  • 3.2 Instrument Used in Data Collection
  • 3.3 Research Population and Sample Size
  • 3.4. Sample Procedure Used
  • 3.5 Statistical Techniques used in Analysis Data

Chapter Four

Data Analysis and Presentation

  • 4.1 Data Presentation
  • 4.2 Proof of Hypothesis

Chapter Five

Summary Conclusion and Recommendation

  • 5.1 Summary of Finding
  • 5.2 Conclusion
  • 5.3 Recommendation
  • Reference
  • Appendix I
  • Appendix II

Chapter One

General Introduction

1.0 Background of the Study

It is observe that place it one of the marketing activities include channel of distribution transaction were housing, STORAGE, INVENTORY handling etc. when product have been produced, marketers have to create to place utility.
It does not matter how good products are the movements it cannot get to the customer at the right place, the objectives of marketing are defeated.

Distribution channel involves inter – related activities that enhances the movement of goods and service from the producer and to the point of consumption through organization that performs different types of marketing activities. It is critically essential that marketer understand channel of distribution facilities that will enables to distribution facilities that will enable them to research their target market effectively.

Distribution channel concept is essentially the development and operation of efficient flow system for product it relates to other activities of the firm to the extent that it is difficult to isolate them exception in conceptual terms.
Beside its interaction with promotion and other marketing functions, the distribution management concept also interact with production, this makes distribution a key to success market that is distribution is central to the success or failure of company’s efforts.

1.1 Statement of the Research Problem

The aim of producer, is to produce goods and service to wards consumers wants and satisfaction, and one of the means to let consumers get satisfied is to enable consumer get the goods at the rights place. This can only be possible through channels of distribution which are often linked to pipe inked to pipe line through which a product flows on its way toe the consumer. It is therefore, become interactive that markets understand channel or distribution and that they are able to distribute facilities that will enables them to reach their market target effectively. The route taken by goods and services include the manufacture intermediacies and the ultimate consumers. Intermediaries in the channel process include wholesaler, retailer and various kinds of agent such brokers.

The channel distribution is an organization dispute its important have been observed to create the problem of high price of goods and service which in turn usually bring about low sale of companies product, reduction in consumers satisfaction etc. it is as a result of this problems that the research is under taken to ensure its minimization and maximize consumers satisfaction. As a result of the above problem mentioned, the choice of channel of distribution to be used should be headed with care, infant the following factor company objective market consideration product characteristics, middlemen characteristics consumer and characteristics environment characteristic are fundamental toward choosing distribution channels and firms must take cognizance of them.

Therefore, channel of distribution should be heated as total system of action. Producer and middlemen should understand that each of them is one component of total systematic organization that is designed to maximize market effectiveness in selling the company product and meeting customers satisfaction.

1.2 Aim and Objectives

The general objectives of this research study is to examine with care the effectiveness of distribution channel management and customer satisfaction using Nigeria bottling company plc as a case study

  1. To identify the need for customer consideration in designed channel of distribution
  2. To establish the fact that distribution channel enhances customer satisfaction.
  3. To estimate the fact that distribution channel persuades customers to buy company products.
  4. To have a look at problem those are common to channel of distribution
  5. To identify how company image can be built through distribution channel
  6. To establish that the distribution channel increases company sales volumes.

1.3 Significant of the Study

The relevance of this study is derived from the economic depression uncounted in Nigeria recently which ahs seriously affected the distribution marketing of goods and service of many manufacturing companies. There is need to direct research attention of the problem above.

The results obtained from this research finding will spur the company to a greater efficiency in term of distribution of their goods and service other is the manufacturing sectors will be more serious to embark on the decision that will help in improving their channel of distribution. The study will also broaden the fronties of knowledge on the distribution as a subject.

1.4 Scope and Limitation of the Study

To ensure effective performances of any company. The management of its distribution channels is important however, attempting to cover all bottling companies would be impressible as a result of the differences in their channels of distribution. As a result of this, I will be using Nigeria Bottling Company Plc Ilorin.

The research work will be concentrated on how they distributed their product to the final and user (i.e. consumer) through different channels which may be such as from manufacturer – wholesaler – retailer final consumer.

Furthermore this study will cover to middlemen because they see to how the company product are being distributed and the retailer, consumers of the company’s product will not be excluded.

1.5 Historical Background of Nigeria Bottling Plc Ilorin

The first Nigeria bottling plan was commissioned in 1953. Operating within the basement of present maintained Hotel as Ebutemetta, Lagos. It was to be the beginning of an existing story of growth and development particularly during the 45 years with staff strength of about 10,000 workers in all fields of operations all over the country.

Nigeria Bottling Company is Nigeria number one bottler of soft derives selling more than million bottler of growing. In order to increase sakes the company established deports in major cities between 1953 and 1955, in 1955 the company established a new plant in Kano to provide service to the northern states. The 1970s can appropriately be discovered as a decode of expansion for the Nigerian bottling company a plant was opened at Benin of the beginning of the 70s. this was followed in 1972 and 1973 commissioned of the Jos and enough plant respectively.

Another plant was opened in Ikeja in 1978 and then one in Ilorin 1979, fanta is by the number one best seller in orange segment and sprite the most widely sold lemon – line drive in Nigeria other product bottled by Nigerian bottling company include fanta tome and krest bitter lemon 35cl fanta champion was introiduce recently in july 19095. then 25cl coke was introduced to ilorin on Sunday 8th January, 1995 to cater low income earner also the 50cl coke, fanta and other were introduced recently, directly coke is another product introduced to the market.

The success of coca – cola has brought with it the development of a number of sister companies all contribution to the growth of Nigeria economy. The nogal gloss, glos company in ugholti was incorporated in June 1974 and supplies the million of bottles to keep a large bottling company in operation .also the crown to seal the bottles, the Benin plastic company which makes the create for carryimg the bottle. In 1958, the first carbon dioxide plant was established and Nigeria bottling company plc is the target manufacture of carbon dioxide used to carbonate the drinks.

1.6 Limitation and Constraints

To ensure performance of any company, the management of is distribution channels is important however, the attempting to cover all bottling company would be impressible as a result of the differences in their channel of distribution. As a result of this I will be using Nigeria Bottling Company Plc Ilorin.

The research work will be encountered on how they distributed their product to the consumption stage.

1.7 Organisational Structure of the Nigeria Bottling Company Plc

1.8 Definition Of Terms

Management of distribution channel in the manufacturing concern consist many terms in which reservation found them peculiar to define for easy understanding by individual organization ,institution or government set who wish to make use of this project.

1. Management:

Management means getting things done through people or as a n act of making resources productive. Through no mention was made of either planning, organization, controlling, directing. It is obvious that can make resources productive without those functions.

2. Distribution:

Distribution is the pathway through which goods and services flower move from producer to consumer in order to allow customer get satisfied and toward the realization of the company set objectives. distribution involves inter related activities that facilitates the movement of goods and services as from the producers and to the point of consumption.

3. Channel:

Channel in business organization could be define as the combination of institution through which a saler markets his final goods the institutions comprises of middle men such as wholesaler, retailer, advertising agencies, brokers facilitations. This is path between manufacturing and consumers.

4. Distribution Policy:

This is intensity of purchaser course of exposure a product should get.

5. Marketing Intermediary:

These are marketing institution or channel member that are responsible for transfer of goods and services from the problems to the final consumers.

6. Agent:

These are marketing intermediaries that make arrangement on behalf of a firm for buying and selling of the company product under specified agreement they neither own nor take possession of the merchandise .the sell to wholesales or retail customers

7. Direct Sales:

This is method of distributing involving the selling of goods and services directly to customers or end users.

Chapter Five

Summary Conclusion and Recommendation

5.1 Summary of Finding

In the process of the research the resources deducted that the distribution channel and satisfaction in a company is an indispensable factor that requires an inch man garent skill to attain the organization objectives.

In designing channel of distribution a company must take into consideration some factor that serve as bedrock for developing are effective channel of distridution.

The following factor are:

  1. Company consideration
  2. Product consideration
  3. Competition consideration
  4. Market consideration
  5. Middlemen consideration and environment

Distribution channel and delivery system are concerned with making desired goods and services available to customers at their location and time that are convenient.

Conclusively companies who have adopted the policy of indirect channel of distribution will effectively achieve its distribution goal.

5.2 Conclusion

During this research work ,the researcher was able to determine the role that the distribution channel plays in improving the company’s from the analyzed data, the researcher was able to identify some benefit that can be derived from distribution channel if manager properly some of this benefit includes;

The distribution channel enhances customers satisfaction persuade customer to buy the company products.
Channel of distribution increases company sales volume and it build the company’s image.

Finally, it will be obvious that the channel of distribution in any business organization serves as bedrock to upliftment of the organization. Therefore, it must be designed properly to enable it to be line with the company’s objectives and as to desired of the customers as managerial theory has said the business starts and end with the customers.

5.3 Recommendation

Having done an indepth analysis on this topic and based on the researcher findings the following recommendations are provided the company should monitor the profits being change by the middlemen so that the price of the product would be favourable to customers.

Distribution channel should make the product more appealing to customers

Environment factors such as culture, political social etc must be studied toward achieving effective distribution channel.

The department should help in widening or expanding the time [period] for the researcher in order to get different opinion.

School should make available different materials such as textbooks, journals etc which can also serve as means of getting relevant information respondents orientation is important to enable them to respond positively and with truth to the researchers. Also since financial incentives or cost are incurred during the processing, government should financial assistance to students in carrying out the researcher work.

Finally, all the conclusion reached after the research should be acted upon not ordinary being noted which later turn down the main aim of the research.

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