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CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The process by which goods were from the producer or area of abundance to the consumer or region of need or scarcity is known as Distribution. The identification and production of consumers needs and wants is not complete without the practise of marketing concepts, if the product did not reach the consumer at the time, place, quantity and at the right price. Therefore, for an effective and efficient marketing operation the goods must be made available at the most convenient place for the consumers to easily obtain the goods/ products thirst is distribution. Most at times, the channels and patterns of distribution is determined by producers. A firms financial capability determines either for the firm to carryout a direct channel of distribution when such firm sells its product to the consumer on the other hand the firm is not solidly funded or a matter of marketing effectiveness cam move its product consumer through distribution specialist known as middlemen. The middlemen comprise agents. wholesalers, brokers and Retailers. The number of length of distribution channel open as on the nature of the product.

Industrial goods and durable consumerable goods can be a longer process of distribution from the manufacturer to an agent to the wholesalers, who sell is small quantities to the retailers who then sell to the ultimate consumers.
On the other side I hand non durable goods can take zero channel or one channel of distribution. Our subjects happens to fall in this category of goods because of its nature. Bread is produced by mixing grounded cereal i.e. (Flour) granulated sugar, yeast, butter, water and carbon (IV) oxide and heated in oven to dry the moisture and rise due to the presence of carbon (IV) oxide. This combination makes bread very vulnerable to decay when it comes in contact with water or shut out of air. For this chemical nature of the product it takes a short channel of distribution in most cases in channel from the producer to retailers who sell in units to the consumers.

In Enugu Metropolis there are not less than twenty (20) bakery firm or industries. Notably among them are Macons International Ltd. (Makers of Macons Bread) located at (58 Ibadan street federal low cost, Housing Trans-Ekulu, Dax International (Bakery) Producer of Amechi Bread) 114 Agbani Road Enugu, Macons Bakery Enterprises, maker of Macons Bread, behind NNPC Depot Emene, Metro Bakery, No 10 Obiagu Road Ogui New lay Out and Croisant Technical Nigeria Ltd of Dens Cook Foods located at No 2 Agbani Road Enugu. Of all the bakeries Macons Bread was chosen as my case study due to its large market share and sophisticated organizational structure.

1.2 Statement of Distribution Problems 

1. Macons Bread are not available to most consumers because major retail outlet usually had no stock.

2. Macons Bread are not conveniently procured because they are not easily found. 

3. Macons Bread has poor transportation of their Product due to bad roads.

4. Macons Bread has insufficient of delivery van in order to reach many destination in Enugu.

5 Macons Bread should arrange for training for itself so that public relations manager would improve the promotion of their product.

6. Macons Bread have to qualified drivers.

1.3 Objective of the Study

Distribution plays important role in marketing activities therefore an effective and efficient distribution it enhances the satisfaction of the consumers.
Furthermore the distribution functions vary from firm to another defending on the type of product, therefore the market and the awareness stage of the consumers. To this extents this research work is therefore a product.

i. To investigate the best channel of distribution of a product.

ii. To determine distribution made to adapt for convenient purchase of Macons Bread

iii. Identifying distribution problems confronting distribution in general and Macons Bread in particular.

iv. And preferring solution to solve distribution problem militating against Macons Bread.

1.4 Significance of the Study

i. The Bread Industries

ii. Nigerian economy

1.5 Scope of Limitation of the Study

In anything in human endeavour we expect some bottleneck along the lines, likewise this study. To reduce complexity problems involved in this nature of research the study reviewed to a particular firms and their distribution systems in the entire nation wide environment. Therefore, this study is strictly limited to Macons Bread and its distribution system in Enugu Metropolis. The firm was chosen due to its position in the mind of consumers and its large market share.

1.6 Limitation of the Study

1. Finance:- This researcher being student would not affect as much as to enable us to meet up with the financial requirement such as travelling to various places for materials since the researcher were spending of their meagre pocket money.

2. Time Factor:- The researcher could not carryout an idnepth study of the topic due to time constraint, we had to attend lectures and meet up with other academic requirements.

3. Late Return of Questionnaires:- Most reports had lukewarm attitude towards responding to questionnaires and also causes of late return of questionnaires constitutes some constraints.

4. Pressure of Course Work:- The pressure of course work limits the area of coverage by the researcher. I attend to lectures, prepare assignments and reach quizzes, examinations and also carrying out the research.

5. Non-Availability or Relevant Materials:- Some of the relevant materials and information which would have helped the quantity or the research were not available to the researcher due to unwillingness or the respondents to supply certain information to the researcher.

1.7 Definition of Terms

NNPC: Nigeria National Petroleum Corporation 

LTD: Limited

MD; Managing Director

MO: Marketing Operation

DCG: Durable Consumable Goods

BAKER: This is a place where bread baked for sale.

METROOLIS: Chief region of a city or country.

LMS: Large Market Share.

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