ABSTRACT
The
study set out to explore the effect of physical distribution strategies on the
operations of farmers in Aboh Mbaise local government area. The problem stems
from the consistent high perishable rate of farm produce in the area, resulting
to poor returns for the farmers. The major objective is to assess the extent
that the farmers’ physical distribution system/operations effectively and
efficiently address its customer’s need in term of delivery,
perishability, timely information flow
of farm produce and it’s on marketing performance. Specifically, the objectives
was to determine the effect of physical distribution strategies on sales
volume, to examine the importance of physical distribution to profit growth, to
determine the problems that affects the selection of channels of distribution
for agricultural products and to identify the basic components of physical
distribution of agricultural marketing used in the area. 339 respondents were
sampled and responses generated were analyzed using percentage, tables and
Chi-Square statistical analysis. The result of the findings show that farmers
in the area have a lots of challenges which have hampered their operational
efficiency and that there exist significant relationship between physical
distribution strategies and increase in sales volume. The study concludes that
physical distribution as one of the major components of the marketing mix has a
vital role to play in the marketing of agricultural products in the area. And
that effective and efficient physical distribution enhances sale volume. This
is because the goods produced must not be wasted, the farmers’ labor must be
encouraged as the consumers and customers at different places need these
agricultural produce either as raw materials, semi-finished or finished
products for production The study
recommends that provision of adequate facilities both by organized private
sector, individuals and government to assist in the agricultural products all
year round, Governments should provide access road and modern transportation
facilities to enable farmers and middlemen covey their goods to local and
distance markets from the point of production or harvesting, Government
should come up with good policies that will encourage the distribution channel
members and the farmers. This could be in terms of low charges on haulage by
local government official to encourage channel members. Suggestions of areas
for further studies were given.
TABLE OF CONTENTS
CHAPTER
1
INTRODUCTION
1.1
Background of the Study
1.2 Statement of the Problem
1.3 Objective of the Study
1.4 Research
Questions
1.5 Research
Hypothesis
1.6 Significance
of the Study
1.7 Scope
of the Study
CHAPTER
2
REVIEW
OF RELATED LITERATURE
2.1 Theoretical
Framework
2.1.1 Physical Distribution: 6 Major Elements Of
Physical Distribution And Marketing Management
2.2 Nature and Importance of Physical
Distribution
2.2 Distribution Channel for Consumer Products
2.3 Objectives
of Channel of Distribution
2.4 Functions of Distribution Channels
2.5 Selecting the Type of Channel
2.6 Distribution of Agricultural Produce in
Nigeria
2.7 Impact of Agricultural Marketing in Nigeria
2.8 Factors That Affect Agricultural Marketing
In Nigeria
2.9 Marketing
Performance and Measurement
2.10 Theoretical
Review
2.10.1 Game Theory
2.10.2 Statistical Decision Theory
2.10.3 Cost Benefit Analysis Theory
2.10.4 Distribution Theory
2.11 Empirical Review
CHAPTER 3
RESEACH METHODOLOGY
3.1 Research Design
3.2 Area of Study
3.3 Sources of Data
3.4 Population of the Study
3.5 Sampling Technique
3.6 Sample Size Determination
3.7 Validity
3.7.1 Reliability of Research Instrument
3.8 Method of Data Analysis
CHAPTER 4
DATA PRESENTATION,
ANALYSIS AND INTERPRETATION
4.1 Data Collection and
Collation
4.2 Age of Respondents
4.2.2 Marital Status
4.2.3 Educational Qualification of Respondents.
4.2.4 Business Experience
4.2.5 Physical Distribution and Profit Growth
4.2.6 Availability of Distribution Channels
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings
5.2 Conclusion
5.3 Recommendations
5.4 Suggestion
for Further Studies
References
Appendix: Completion
of Questionnaires
CHAPTER 1
INTRODUCTION
1.1
Background of the Study
Over
the years, there have been increasing emphases on physical distribution
strategies as a pathway through which producers of Agricultural products can
optimize their operations. An effective and efficient physical distribution
should be in place to deliver the right quality of goods at the right place and
time with the right support services to the consumers (Kurtz, 2008).
Olakunori,
(2005) opined that physical distribution is the course or route that a product
takes in its journey to customers and the transfer of its title. It consists of
all activities required to physically move the products from the producer to
the final consumers at the right time. Physical distribution is responsible for
getting the right product to the right place, at the right time, in the correct
quantities and proper condition expected by customers (Umeh & Ude, 2002). Customers
are interested in on time deliveries and not on how many activities that were
involved to bring about the delivery. Therefore, physical distribution
activities should be systematically coordinated to produce customer
satisfaction. All members of a marketing channel are involved in physical
distribution to some extent, but however control of the channel has major
responsibility.
Distribution
logistics or physical distribution is the warehousing and the physical movement
of products from the producer or original owner to the ultimate consumer. It
therefore, embraces all activities which have to do with the planning and
execution of the physical flow of material input and finished goods from
original owner to the final consumer (Aham,
Max, & Chinedu, 2011). To optimize in physical distribution, the component
activities (fixed facilities such as warehouses and wholesale and retail
outlets, transportation, inventory or stock and logistical support) must be
seen and performed as an integrated set of decisions which must start with a
consideration of the market or target consumers.
Kotler
& Armstrong (2010) opined that marketing logistics also called physical
distribution involves planning, implementing, and controlling the physical flow
of goods, services, and related information from point of origin to points of
consumption to meet customers’ requirements at a profit. It involves getting
the right product to the right customer in the right place at the right time. Physical
distribution is the set of activities concerned with efficient movement of
finished goods from the end of the production operation to the consumer.
Physical distribution takes place within numerous wholesaling and retailing
distribution channels, and includes such important decision areas as customer
service, inventory control, materials handling, protective packaging, order
procession, transportation, warehouse site selection, and warehousing. Physical
distribution is part of a larger process called "distribution," which
includes wholesale and retail marketing, as well the physical movement of
products.
Physical
distribution activities have recently received increasing attention from
business managers, including small business owners. This is due in large part
to the fact that these functions often represent almost half of the total
marketing costs of a product.
The
essence of marketing performance measurement is to determine the incremental
profitability (i.e. cash flow) attributable to a specific marketing program and
relate it quantitatively to the program-related spending. Physical distribution
management in the recent time, has constituted a big challenge to the marketing
of Agricultural produce in Nigeria.
Against
this backdrop, it is imperative to assess the extent that the farmers’ physical
distribution system/operations effectively and efficiently address its
customer’s need in term of delivery, perishability, timely information flow of farm produce and
it’s on marketing performance.
1.2
Statement of the Problem
Physical
distribution has impacted greatly in ensuring that goods and services are made
available when and where they are desired and in safe conditions. But due to
the rise in technological development and global marketing, the process
however, is not without problems as many companies and business people still
lack adequate physical distribution facilities leading to the spoilage of these
products before getting to their destination points and this have effect on the
sales volume, sales growth and the overall profitability of the farmers.
Appropriate
strategies for efficient and effective distribution of these products are
required in distributing agricultural products in Aboh Mbaise local government
area. In Aboh Mbaise Local Government
Area, lack of adequate and efficient distribution system has badly affected
marketing of perishable products in the area as many of them perish on their
way before getting to their consumption point. These have really gone a long
way in discouraging the youth from participating in Agriculture.
1.3
Objective of the Study
The
major objective is to assess the extent that the farmers’ physical distribution
system/operations effectively and efficiently address its customer’s need in
term of delivery, perishability, timely
information flow of farm produce and it’s on marketing performance.
More
specifically, the study will aim at the following objectives:
i.
to determine the effect
of physical distribution strategies on sales volume.
ii.
to examine the importance
of physical distribution to profit growth.
iii.
to determine the problems
that affects the selection of channels of distribution for agricultural
products.
iv.
to identify the basic
components of physical distribution of agricultural marketing used in the area.
1.4 Research Questions
The
following research questions will be explored so as to gain depth knowledge on
the subject manner and they include;
i.
to what extent do
physical distribution strategies affect sales volume?
ii.
to what extent do
physical distribution affect profit growth?
iii.
what are the problems
that impedes the selection of channels of distribution for agricultural
products?
iv.
What are the basic
components of physical distribution of agricultural marketing used in Aboh
Mbaise L.G.A.?
1.5 Research Hypothesis
Ho1: Physical
distribution strategies do not have significant effect on sales volume.
1.6 Significance of the Study
This
study would assist in addressing issues related to physical distribution
strategies and challenges encountered by farmers. The empirical evidence from
the study will be of immense benefit particularly in the following areas:
Government
and policy makers at various levels would gain value added information on
physical distribution challenges in respect to perishability of farm produce.
The government and its agencies would be properly guided by the findings of
this research on how position themselves through their policies, actions and
regulations as it concerns physical distribution. The farmers union responsible
for strategies may use the findings to formulate effective monitoring and
control systems to mitigate against the challenges while formulating and
adopting strategies for physical distribution operations.
Academic
scholars and researchers would be able to borrow from the findings of this
research to support literary citations as well as develop themes for further
research. Specifically, the study would make theoretical, practical and
methodological contributions. The findings would contribute to professional
extension of existing knowledge in marketing logistics/physical distribution
and agricultural marketing performance by helping to understand to current
challenges that are being encountered by farmers and its effect on perishable
farm produce.
This
research would be important to farmers, Agribusiness cooperative sociteies,
agricultural ministries and stakeholders as it will unravel (expose) the
benefit and challenges of physical distribution strategies. It will also be of
great value to students and other researchers who will either adopt or improve
on the recommendations/findings of this study; and also use it as a basis for
future research study. Also, the finding through this project would contribute
immensely to the existing knowledge in this field. Lastly, this research work
will undoubtedly equip the researcher with improved knowledge on physical
distribution and perishability of agricultural products of farmers operating in
Imo state and beyond.
1.7 Scope of the Study
This
study is based on the perishable and non-perishable agricultural products in
Aboh Mbaise local government area of Imo state. Information and data on the
effect of physical distribution channel on the marketing performance of farmers in the area
is given only as related to these areas.
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