THE IMPACT OF DISTRIBUTION ON THE SALES VOLUME OF SOFT DRINKS INDUSTRY
A research topic on “The Impact of Distribution on the Sales Volume of Soft drinks Industry (A Case Study of Nigeria Bottling Company Plc, Enugu). The study as other forth coming researchers. The population of the study is 300 which the researcher determine the sample size to be 171 using Bourley’s formular method. In analyzing the data the researcher adopted chi-square method to test the hypothesis and simple table with percentage were used to analyze all the data presented on table. Data were collected using research instrument under which the researcher find out that
- Distribution increase the cost price of soft drink products.
- Customers are satisfied with distribution channel of soft drink product
- Good road network help to facilitate product distribution in the state society
- It is also noted/discovered that Nigeria Bottling Company sales on credit to their distributors.
The researcher recommend based on the above findings
- The company should find out whether the customer is credit worth before selling on credit.
- They should cultivate good customer relation with their customers and distributor and other recommendations on the project.
TABLE OF CONTENTS
Title page i
Approval page ii
Table of contents vi
1.1 Background of the study 1
1.2 Statement of the problem 4
1.3 Objectives of the study 5
1.4 Research questions 6
1.5 Formulation of hypothesis 6
1.6 Significance of the study 8
1.7 Scope of the study 9
1.8 Definition of terms 11
LITERATURE REVIEW 13
2.1 An overview of distribution 13
2.2 Distribution channel functions 16
2.3 Types of channel of distribution 21
2.4 Factors influencing choice of a channels 25
2.5 Reasons for the existence of intermediaries 31
2.6 Channel levels of distribution 32
2.7 Flows in distribution channel 35
2.8 Channel co-operations, conflicts and competitions 38
2.9 Evaluation of the effectiveness of the distribution system in the marketing of soft drinks 42
2.10 Company profile of Nigeria bottling company plc Enugu 44
RESEARCH METHODOLOGY 47
3.2 Population of the study 47
3.3 Determination of sample size 48
3.4 Sampling techniques 49
3.5 Research instrument used 49
3.6 Reliability of research instrument 50
3.7 Questionnaire administration 50
3.8 Method of data treatment and analysis 51
3.9 Limitations of the study 51
DATA PRESENTATION AND ANALYSIS 53
4.1 Data presentation and analysis 53
4.2 Testing of hypothesis 66
DISCUSSION OF FINDING, RECOMMENDATIONS AND CONCLUSION 78
5.1 Summary of findings 78
5.2 Recommendations 79
5.3 Conclusion 81
1.9 BACKGROUND OF THE STUDY
Distribution has been a neglected area of emphasis and implementation in marketing partly because of the fact that physical distribution and logistics have become highly specialized and automated function that requires a separate department. In recent years, there has been a growing recognition of the importance of distribution and related activities as a key determination of corporate performance. It is becoming increasingly important to bridge the time gap between customer owner and order fulfillment.
According to Chukwu (2010) Distribution is the task involved in planning, implementing and controlling the physical flow of materials, final goods and related information from points of origin to points of consumption. He linked the issue of distribution with the act of exchange which brings together the agents of producers. This act of exchange is central to the distribution process.
Baker (2000) define distribution process as the act or process of designing or sharing commitment that will yield benefit to those who give value for them. Roller (2002) observed that the distribution system is a key external resource that represents significant corporate commitment to a large number of independent companies whose business is distribution and to the particular market they serve.
Distribution is one of the marketing variables in the marketing mix concerned with getting goods and services from the manufacturer to the ultimate consumer by transferring title and physically moving the products through the process of negotiation makes possession utility possible while the institution provides the channel through which with the aid of physical distribution, time and place utilities are achieved to enhance the form utility created in production. Distribution lies at the heart of the connection between what the market wants and what is supplied. It is the most crucial step in the marketing development process which can be one of the biggest overhead costs for manufactures and it is an area where most companies often make mistake.
According to Kotler and Armstrong (2006) The primary focus of marketing strategy is to effectively allocate and coordinate marketing resources and activities to accomplish the firm’s objectives within a specific product market. After target market has been identified, firms seek competitive advantage and synergy through a well integrated programmes of marketing mix element (distribution inclusive) to satisfy the needs and wants of the target market.
1.10 STATEMENT OF THE PROBLEM
Despite the impact of distribution on the sales volume of soft drinks, there exists certain factors militating against the organizational goals in attempt to increase their sales volume.
However, there are factors that contribute towards the increase on soft drink sales volume among others are the intermediaries who assist in shifting these product from one location to another. Though, the problem of Nigeria bottling company in respect to distribution is said to be profitable to an extent but some of the problem the researcher will tend to solve in the course of the study has to do with: product scarcity in the market, un-even price system of the product, high cost of transportation of the product and many others.
The above mention are the criticism to the above topic having stated the application of the topic in real situation. Thus, it is noted that distributors their best of ability to distribute soft drink product even as of this period of research when oil subsidy is removed by the federal government of Nigeria. Meanwhile, the researcher will address the above problem in the course of this study.
1.11 OBJECTIVES OF THE STUDY
The following below were the objective to the study
1) To determine the rate of impact of distribution on the sales volume
2) To identify all the possible means or factors that will give rise to sales volume
3) To evaluate the activities of the middlemen in relation to distribution of soft drink product
4) To identify those problem that may be encountered as a result of distribution in respect to soft drink product
5) To recommend solutions to the identify problems of distribution
6) To find out whether distribution increase the price of the product