THE IMPACT OF MARKETING LOGISTICS ON CORPORATE PROFITABILITY IN THE BREWERY INDUSTRY (A CASE STUDY OF NIGERIA BREWERY PLC ENUGU)
The study as the impacts of marketing logistics on the corporate profitability in the industry a ( case study of NBPLC,ENUGU IC) was carried out with the following objectives:
To determine if consumers are satisfied with the marketing logistics strategies adoptioned by Nigeria brewery plc Enugu.
To offer solutions and suggestion on how to tackle and alleviate distribution problems identified.
In order to achieve the above objectives. Three sets of questionnaire were prepared and administratered to the population ccomprising staff, distributors and customers of NB plc Enugu in addition, extensive literature review was conducted.
The sample size for the study were determined using topmans formula. Questionnaires collected were analyzed using frequencies and percentages, while the hypotheses were tested using chi-square and statistical tools.
The analyzed data and tested hypotheses showed the following.
- That marketing logistics as being adopted by NB Plc Enugu charges customer patronage and impacts positively on the corporate profitability of the company.
- That marketing congestive is an indispensable tool for not only fighting competitive but also increased market share of the company.
Based on the fings the following recommendations were made
- NB Plc Enugu should also maintain good and efficient service to its customers.
- The case organization should continuously monitor the marketing environment so as to ensure continued relevance of it’s marketing cogitics system, in serving the market efficiently and effectively for improved corporate profitability
Approval page iii
Table of contents viii
1.1 Introduction 1
1.2 Statement of the problem 4
1.3 Objectives of the study 5
1.4 Formulation of hypotheses
1.5 Significance of the study 7
1.6 Scope of the study 8
1.7 Definition of terms 9
2.0 Review of related literature 10
2.1 Overview of marketing logistics 10
2.2 components of marketing logistics 12
2.3 Transportation 14
2.4 Distribution 17
2.5 Inventory management 18
2.6 The place of logistics is marketing 20
2.7 The impact of marketing logistic on corporate profitability.24
3.0 Research methodology 27
3.1 Research design 27
3.2 Population of the study 27
3.3 Sampling technique 27
3.4 Determination of sample size 28
3.5 Research instruments used 30
3.6 Limitation of the study 32
4.0 Presentation, Analysis & interpretation of data 33
4.1 Data presentation and analysis 33
4.2 Test of hypothesis 43
5.0 Summary of findings, recommendation and conclusion 54
5.1 Summary of findings 54
5.2 Recommendations 55
5.3 Conclusion 56
Modern marketing is concerned with the performance of the activities through which the needs of consumers is a society are identified and satisfied through the exchange process. It’s main interest is how to satisfy the identified needs of the people in a society. The new orientation in marketing discipline has entailed its search for various ideas, concepts and contribution from other older disciplines that can be of any help in achieving the goal of consumer satisfaction.
One of the discipline that have made on in road into marketing to help, establish it as multi disciplinary quasi- science is marketing logistics.
Olakunori (1999:6) States that since 1950 when logistics made an entry into marketing, it gained an increasing popularity. This is as a result of its immense contributions to marketing’s achievement of its overriding goal of consumer satisfaction.
Okakunoni (1999:7) quotes Ballow (1973:6) He sees marketing logistics as planning organizing and controlling of all moveable activities that facilitate product flow from the point of raw material acquisition to the point of final consumption and of the attendant information flows, for the purpose of providing a sufficient level of customer service (and associated revenues) consistent with the cost incurred for overcoming the resistance of time and space in providing the service.
Ani (1998) believe that marketing logistics is concerned with function of physical transfer of goods. It concern basically with two activities namely.
- Movement of goods from one place to another, including storage when necessary
- Condition of customer demand with supply of goods which can be made available to meet to.
Marketing logistics ensures’ that the activities of the material management and physical distribution function are well integrated and performed effectively and efficiently, so as to save cost and optimize the satisfaction of customers.
Olakunoni (1999:11) quotes Ballow (1973:6) noted logistics activitites as essentially the same whether performed in the military marketing, urban transportation, communication or government set- ups. They commonly involve the planning, implementation and control of the desired objective of flow at the right time and in the right condition or state. Each area has relevance to others. He noted that marketing logisitics is now receiving as increasing alternation from scholars. This is as a result of the significant role it has been found to play in manufacturing and marketing. It facilitates the efficient movement, storage and control of materials and finished goods in order to provide the much needed time, place and possession utilities for thee satisfaction of consumer.
The importance attached to marketing logistics in an organization like Brewery industry makes the researcher to examine critically, the impact of marketing logistics on corporate profitability with special interest on Nigeria Brewery NBC Enugu.
1.2 STATEMENT OF THE PROBLEM
Marketing logistics is a very important aspects of marketing which provides time, place and possession utilities for the satisfaction of consumers. However the implementation of this important aspect of marketing in the brewery industry leaves much to be desired.
It has been disarered that Breweries cannot effecientively make their products available to its numerious customers within Enugu metropolis. This has impacted negatively on the patronage of consumers. One may be in chied to suggest that some other factors that negatively effect marketing logistics of the industry includes scarcity of products, more Christmas in some remote areas in Enugu.
Ineffective marketing logistics has equally led to high price of these products in areas far away from factory or depot. At times when these products are available they are not enough. All these problems have affected customers patronage.
1.3 OBJECTIVES OF THE STUDY
The objective of this study among other things includes:
ØTo determine the impact of marketing logistics on the profit of br ewery industry.
ØTo appraise the marketing logistics activities of brewery industry in order to determine their impact on products availability.
ØTo determine whether distribution system dopted by brewery lead to increased customer patronage.
ØTo identify the causes of scarcity of soft drinks in Enugu.
ØTo find out whether soft drinks are available at the right time.
ØTo find out whether soft drinks are available at right quality .
ØTo offer solution and suggestion on how to tackle and alleviate marketing logistics problems.
1.4 FORMULATION OF HYPOTHESIS
Ho: marketing logistics as adopted by NB PLC encourages consumer patronage of their products.
Hi: marketing logistics as adopted by NB PLC encourages consumer patronage.
Ho: marketing logistics as adopted by NB PLC lead to increased market share by thr company.
Hi: marketing logistics as adopted by NB PLC lead to increases market share by the company.
Ho: marketing logistics adopted by NBPLC do not help the company to fight competition.
Hi: marketing logistics adopted by NBPLC help the company to fight competition.
Ho: marketing logistics practice of NB PLC do not impact positively on their profit.
Hi: marketing logistics practice of NB PLC impact positively on their profit.
1.5 SCOPE OF THE STUDY
This study on the impact of marketing logistics on corporate profitability in the brewery industry concentrated on Nigeria brewery operations within Enugu metropolis.
1.6 SIGNIFICANCE OF THE STUDY
From the economic part of view production is not complete until the goods and services gets to the hands of consumers. This sudy will be of benefit to brewery industries and the case organization. The study will help them to plan their marketing logistics so as to effectively serve their customers at a reduced cost.
It will serve as a source of a documents to readers and researchers who will be interested in writing on a related topic. The consumers of soft drinks will equally benefit if the company adopts the findings of this study. The products will be available to them at the right time and at the right price.
1.7 DEFINITION OF TERMS
MARKETING: issets of humans activities directed toward the satisfaction of human needs and wants through an exchange process. (ADIRIKA ,EBUE & NNOLI 1996:
LOGISTICS: Is concluded with function of physical transfer of goods. (Ani J (1998) Handout
CHANNEL OF DISTRIBUTION: Means by which goos pass from the manufacturer to the consumers via wholesalers and retailers. (Edoga P and Ani J 2003)
PROFITABILITY: Is the ability to make profit. (Olakunoni O.K (1998)