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DISTRIBUTION CHANNEL/STRATEGIES FOR BREAD IN ENUGU STATE

ABSTRACT

The study conducted to examine how unemployment has been reduced through cooperative to Enugu North Local Government Area, from the year 2000 – 2004. In the course of this investigation, researcher objective and hypothesis were formulated. Both primary and secondary data were collected, and based on the above, the findings on the topics is as follows. Staff employee of the sampled cooperative are average qualified for their various jobs and they are given opportunities further training by the marketing strategies. Employee of the sampled marketing are averagely paid while some necessary allowances marketing strategies absorbs about 35% at school leavers yearly.

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

As the economy advances, there is a restaurant widening of the gap between producers and consumers, the increase in output of goods and services necessities. The development of channel of distribution they provide time, place and convenience utility for the goals and services provided. In the view of Adirika, Ebue and Nnolin (2001) distribution is demand creation and satisfaction and both directly and indirectly brings down the total cost of marketing organization. Apart from producing the goods and services required by buyers pricing and promoting them (i.e informing buyers about them) marketers have to make these goods and services available to the buyers, that is, place them at his or her convenience, in order to make them seen or perceived, admired, accepted and purchased by them. Thus, effective and efficient distribution flow will not only make goods available, but will also do so at the cheapest possible price to the consumer, at the lowest possible cost to the consumer, at the lowest possible cost to the consumer, at the lowest possible cost to the producer or supplier.

Accordingly the distributional strategy and channel employed greatly influences the economic value of goals, both to the distributor and to the consumer especially when and it it’s selection is carefully considered. A manufacture has option of selling either directly to the ultimate, consumer of it’s products, or through the use of intermediaries in realizing the same objectives considering present marketing environment factors such as the location of the market, the insulating economic conditions within the Nigerian economy as a whole, together with consumer requirements by way of varieties, quantities and time of product requirement, most manufactures prefer reaching their customers through the use of marketing intermediaries.

In the bread industry, an considering the nature of the product, channel of distribution channel become a very important marketing decision. Also, in this industry, the different marketing utilities of distribution economy, market covery channel control and adaptation to changing environments, interplay and influence the choice decision. According, the distribute channel and strategy option adopted by any producer should contribute to the achievement of the overall marketing objective, and therefore meet the company objective and the consumer’s requirement in the sale.

It is a fact that the bread industry has assumed importance in the Enugu state today. In this state, bread is one of the staple food items consumer by most people. This demand for bread and its frequency of consumption is high. This high rate of bread consumption in this state is accounted for by a number of factors. Among the Height food is ideal for bread food other reasons for the loaf demand for bread can still be mentioned among unmarried people, bread is regarded as very difficult duty also at ceremonies like birthday, sand which, prepared from bread has become a popular entertainment diet of the people. Bread has assumed prominence as a food items, so also has it’s industries importance. It is because of distributions in making this important stable food (bread) available that the research examines distributions channel option/strategies for bread industries in Enugu State.

1.2      STATEMENT OF PROBLEM

Some retails (vendors and hawkers) of bread in Enugu State indicates that suppliers of the product are often not delivered in schedule, other complain of occasional damage to the product before arrival at their. Still some are of the opinion that prices charged them are higher than these changed customer purchasing. From the producer compares. On further investigation it was realize that delay, in deliveries could result in damage to the product considering the perishable nature of bread. The condition of most road in Enugu is very deplorable where there are road at all. They are either not properly maintained or they are completely neglected. These bad roads has consequently reduced the efficiency of available delivery vehicles since they put in poor working condition and equaling increase their maintenance cost most of the producer/companies distribution processes are anything but inadequate, in some companies, salesmen combine the duties of selling with that of delivery and to complicate matters some companies even surcharge them for damage and losses. Investigation also revealed including fuel cost, vehicle maintenance and repair expenses, as well salesmen allowances, have forced up distribution cost.

1.3      OBJECTIVES OF THE STUDY

Base on the research problems the following hypotheses are formulated.

1)  Example and analyze the present distributional strategies and channel options available to bread in Enugu State with a view determining the of their efficiency.

2)  Investigate other distributional strategy and other channel options that are available for use by the bread industry.

3)  Formulate, on the basis of finding most efficient distributional strategy and channel options for the bread industry in order to reduce costs damages and delays of supplies to consumers

4)  Examine the reasons for scarcity of bread especially during festive period.

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