THE EFFECTIVENESS OF PHYSICAL DISTRIBUTION STRATEGIES IN NIGERIAN BOTTLING COMPANY
This research work is mainly on the effectiveness of physical distribution strategies in NBC in Enugu metropolis using Coca-cola as a reference study. The main objective of this study is to find out if the physical distribution strategies adopted by NBC Plc for coca cola make the product available at the right quality in Enugu Metropolis. Also to find out whether the physical distribution strategies adopted for coca cola make the company achieve distribution objectives. Secondly and primary data were used in the course of this study. Primary data collection methods include personal interviews, and questionnaires. The secondary data collection methods include past research work authoritative textbooks, newspapers and journals. The population for this study comprised of the consumers, distributors and staff and management of NBC Plc at 9th mile corner, Enugu. The researcher conducted pilot survey using topmans formula to determine the sample size for consumers and distributors while a census survey was under taken to ascertain the known population size of staff and management of NBC Plc at 9th mile corner, Enugu. Chi-square method was used to test the formulated hypotheses stated in chapter 1.5 of this project because the topic under study is a comparism type. Based on the investigation, it was found out that the physical distribution strategies adopted by NBC Plc for coca cola do not make the product available at the right quality. It was also revealed that the physical distribution strategies adopted for coca cola make the company to achieve distribution objective. Based on the findings the following recommendations were made. Firstly, that the company should always respond to proper modification of its physical distribution strategies in order to make sure that the product is available at the right quality in Enugu metropolis. The research also recommends that the management should constantly sustain the quality of the distribution channel options used that do not really match the need of the company, customers service desired as well as improve the distribution productivity will help to achieve the distribution objectives. The researcher conclude by saying if these recommendations made based on the findings are properly managed and abide with by the physical distribution management and marketing executives of NBC Plc will enable them to formulate an efficient and effective distribution strategies to compete within the competitive economy as well as to achieve better profitability in return.
TABLE OF CONTENTS
Title page i
Approval page ii
Table of contents vii
List of tables x
Background of the Study 1
Statement of the Problems 3
Objectives of the Study 4
Research Questions 5
Research Hypothesis 7
Significance of the Study 8
Limitations of the Study 9
Scope /Delimitation of the Study 10
Definition of Terms 11
Review of Related Literature 14
Research Mythology 25
Sources of Data 25
Population of Study 26
Sample Determination 27
Sample Technique 28
Research Instruments Used 29
Questionnaire Administration and Distribution 29
Method of Data Treatment and Analysis 30
Presentation, Analysis and Interpretation of Data 31
Presentation and Analysis of Data 31
Test of Hypothesis 57
Summary of Findings, Recommendations and Conclusion 67
Summary of findings 67
Background of the Study
Production is incomplete until the goods get to the final consumers whom they are meant for. A typical firm will deliver as soon as the products are ready for consumption by the target consumers. The decision for firms to distribute its products directly through its own sales outlets and/or indirectly through marketing intermediaries such as wholesalers and retailers alone are not enough to get the goods to the final consumers. These firms have to ensure that soft drinks brands are actually available at the distribution outlets/centers.
Adequate care has to be taken in order to minimize losses or damages and commensurate customer’s service have to be given in order to achieve customer satisfaction and increase patronage. In other words, the physical distribution management of NBC Plc in charge of the flow of product from the manufacturer to the target customer, seeks to achieve customers satisfaction as well as to attain organization goals. Physical distribution must be properly channeled to this respect. Physical distribution is just how companies store, distribute and handle more goods so that they will be available to consumers at the appropriate place and time. Consumer’s attraction and satisfaction are highly influenced by companies’ physical distribution capabilities. As such, the issue of physical distribution is paramount in business activities. An effective physical distribution will result to a reduction in cost of transportation, production and even will invariably lead to the attraction of many price conscious consumers. Efficient transportation and proximity of sales outlets to the target consumers will enable soft drinks industries to make their products available to the target market at far distance.
Physical distribution should be intensive because consumers are not sufficiently satisfied with the way NBC Plc distribute its products within restricted market environment in Nigeria. Therefore, an effective distribution strategy is very paramount as to attain marketing goals and objective as well as to compete efficiently and effective as possible within a given competitive marketing territory (Onah and Thomas, 2004).
Statement of the Problems
Although that NBC Plc has been using physical distribution strategies in distributing its products; however from the part two to three years, customers have been complaining in one way or the other even the company itself was award that its product is not available at the right quality and the quantity of the product is not what its used to be. Also, customers complained that they discovered some infectious materials inside the product of the company. Not only that, the price of the company’s product is a little bit higher compared to the price of other competitors products. Moreso, the customers also complained that they do not get enough of the company’s product at the right time and pace which may impinge on the profit of the company. As a result of this, the company may find it so cumbersome to achieve distribution objective. Based on these negative points indicated above suggest that there is a deviation from what should be done to resolve these prevailing problems are the reasons for undertaking this study.