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ROLE OF PHYSICAL DISTRIBUTION FUNCTION IN CONSUMER GOODS MARKETING

ABSTRACT

This study is concerned with the analysis of physical Distribution function in consumer goods marketing with particular reference to 7up Bottling Company, Aba. The researcher outlines the problems and development of physical distribution in study. The introduction part gives a brief account of the meaning of physical distribution (general overview) the statement of problems: objective of the study, significance of the study, research question, hypothesis, scope of the study, limited of the study and operational definition of terms. CHAPTER TWO-Review of related literature, CHAPTER THREE is devoted to methodology, CHAPTER FOUR shows the discussion of finding associated with the research work. The discussion on findings were made with a view to high lighting a sound basis for some possible solution. CHAPTER FIVE witnessed the climax up by summarizing and concluding all findings by giving some recommendation. I finalized by giving some recommendation which is in my mind. If adhere to could help improve the physical distribution function in consumer goods marketing.

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Production is deemed not complete until the products reach the consumer in the right quantity, at the right place at the right price and in good condition owing to proliferation of comparies in Nigeria, it becomes very essential to have an efficient distribution system so that goods produced get to the consumer. Basically the aim of any company is to minimize cost and maximize profit, in order to achieve this, a firm will have to identify the high cost generating centers and hence try to reduce them. Distribution activities generate cost, the aim of physical distribution management in firms is to bring to absolute minimum the total cost of distribution and at the same time achieve high customer service.

The word (“DISTRIBUTION) is reference to the retailing on selling function means a vast firm which is composed of many thousand of out let’s ranging in size from the small corner shop to large super markets, departmental stores and “CASH AND CARRY” ware houses all of which attempt to supply the needs of our consumer society. So physical distribution management is concerned with the movement of raw material and finished products from the supplier the manufacturer and consumer (i.e. retailer). It is the link between manufacturing and production on one hand and the retailer and customer on the other hand. The simplest definition one can offer is that physical distribution is an intergraded set of activities that deals with managing the movement of products within firms and through marketing channels.

1.2 STATEMENT OF PROBLEMS OF THE STUDY

This research work, centre on the role of physical distribution function in consumer goods marketing. It not fail to torch on the problem emanating from there. These problem range from lack of adequate supervision, lack of storage facilities. The channel members are not effective controlled as a result of which prices of the product differ from place to place and urban to rural areas. Another area lies in the hoarding of “beer” and its apparent scarcity lack of mechanized equipment for easy loading and off loading can not be left out. The scope of modern communication network is small to make impact in business transaction. The telephone service is confirmed to the urban areas only and with few lines that out off now and then making customers contract very difficult. Ware housing are few and far apart as a result of reasonable distance between depots and the customers price of product tends to be higher in remote areas of Aba.

1.3 OBJECTIVES OF THE STUDY

It is very important that every study must have objective and thus one is not an exemption it has the following objective.

a) To identify the extent to which depot facilities limit the performance of the channel members.

b) To make recommendation on improving the distribution system of the company.

c) To satisfy the requirement in partial fulfillment for the award of HND certificate in purchasing and supply.

1.4 SIGNIFICANCE OF THE STUDY

It is the mind of the researcher that the findings and recommendation of this project work will be useful to many interested persons. The significance of the study will include the following: a) This study will further enlighten distribution in the organization. b) Purchasing students will not doubt find this study a vital academic material they will have a wilder knowledge of the role of physical distribution in a company or firm. c) This study will also enlighten the government on the importance of basic infrastructural amenities such as good roads for the distribution system in the state.

1.5 RESEARCH QUESTIONS

Based on this project topic and the objectives of the research as stated above the following research questions have been formulated:

1. How does the company handle their operations and documents?

2. What are the means of distribution the products to the depots?

3. How many depots does the company have?

4. Does the company have experienced driver?

5. What is the company production capacity?

6. How are breakages in transit treated?

7. Is the middlemen willing to carry adequate stocks of inventory?

8. Are storage and related materials handling facilities suitable?

1.6 HYPOTHESIS

The following are the hypothesis which will be tested

a) Ho channel members of the NBC ltd, Aba are not well supervised.

b) Hi channel member of the NBC ltd, Aba are well supervised.

HYPOTHESIS TWO

a) Ho Too channel members do not affect the cost of moving the products to the final consumers.

b) Hi Too many channel members effect the cost of moving the products to final consumers.

1.7 SCOPE OF STUDY

The researcher will focus the study on the activities of physical distribution in 7ups bottling company plc Aba. In trying to identify the role of physical distribution function indepth study will be taken on the present distribution arrangement of the company, loading and offloading system, stock holding and inventory control order. Processing and administration, the documents used in delivery and dispatch and including the appointment of the distributors.

1.8 LIMITATION OF THE STUDY

FINANCE The source of income off the researcher is very low. As a result, he cannot afford the money for all the expenses he is going to incure or he is incurring. In actual service, thus study should have involved the study of some of the manufacturing companies, but because of the geographical distribution of these firms it was not practicable for the researcher to carryout research work on these firms. In view of this, the researcher has decided after careful study of all the various types of firms to concentrate on the 7up bottling company Aba. Another problem is lack of relevant data in some areas that could have helped the researcher in the study. There is also the problem caused by the attitude of 7up to project and also PHCN intermittent power failures. Also the problem of some uncompromising staff of the company cannot be left out.

1.9 OPERATIONAL DEFINITION OF TERM

HYPOTHESIS When we want to take a decision about a given population, try to make an assumption made is called a statistical hypothesis. The assumption might be true or false.

PHYSICAL DISTRIBUTION The physical flows of materials and final goods from point of origin to point of use or consumption to meet the needs of customers at a point or it is that managerial function concerned with the movement of material and finished goods from point of manufacture to the point of consumption through a channel.

INVENTORY CONTROL This is the science based art of controlling the amount of stock held in various forms within a business unit to meet economically the demands placed upon it.

RE-ORDER LAVEL This is a stock level when it is desirable to place a new order. 

DEPOT A storage place where suppliers are made to customers.

LTD This is an abbreviation for Limited Liability Company. This is usually place after the business name.

PHCN This is an acronym for the power holding company of Nigeria plc.

ROUTING To fix the order of procedure of operations, in this case vehicles.

PLANT To tools machinery, textures, buildings ground etc of a factory or business.

LOGISTICS This is a branch of science having to do with moving and supplying of goods.

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