ABSTRACT
The aim of this research
work is to know the effect of physical distribution on sales volume of
beverages in Enugu Metropolis. It is also aimed at ascertaining the performance
of physical distribution on seven up product/ drink. The objective of the researcher
is to address the following: to find out the distribution strategy employed by
the company to get its product to the ultimate consumers, to determine the
efficient and profitability of physical distribution in the company operation.
To find out how often the consumer has been disappointed by unavailability of
the product. This issues were addressed through theoretical and empirical help
approach within help of secondary and primary data collection method, related
literature were reviewed to ascertain what various authors have to say on the
topic. The question is; how do you assess the effect of physical distribution
on the performance of seven up product. The researcher found out that physical
distribution have a very positive effect on sales volume of beverage. The
researcher made the following recommendations, the company should engage in
effective distribution strategy, they should increase its effort toward the
integration for the range of the physical distribution activities.
TABLE OF CONTENTS
Title page- - - - - - - - - - - -i
Approval - - - - - - - - - - -ii
Dedication- - - - - - - - - - -iii
Acknowledgements- - - - - - - - -iv
Table of contents- - - - - - - - - -v
Abstracts- - - - - - - - - - viii
CHAPTER ONE
INTRODUCITON
1.1 Background of the study- - - - - - - -1
1.2
Statement of the problem- - - - - - - -4
1.3 Objectives
of the study - - - - - - -5
1.4
Significance of the study- - - - - - - -6
1.5 Research question- - - - - - - - -6
1.6 Scope of the study - - - - - - - -7
1.8 Definition of terms- - - - - - - - -7
CHAPTER TWO
LITERATURE REVIEW
2.1 Definition of physical distribution- - - - - 11
2.2 Physical distribution objective and policies- - - - 15
2.3 Scope and activity centers of physical distribution. - 18
2.4 Physical distribution, efficiency and profits.- - - 27
2.5 Control physical distribution in the beverage industries. 29
2.6 Current studies on physical distribution on sales volume. 32
2.7 Summery of literature review- - - - - - 34
CHAPTER THREE
METHODOLOGY
3.1 Research design- - - - - - - - - 36
3.2 Area of the study- - - - - - - - 36
3.3 Population of the study- - - -- -- - - 37
3.4 Sample of the study - - - - - - - - 37
3.5 Instrument for data collection - - - - - - 38
3.6 Validation of the
instrument
- - - - - - 39
3.7 Distribution and retrieval of the instrument
- - 40
3.8 data analysis - - - - - - - - - 40
CHAPTER FOUR
DATA PRESENTAITON AND
ANALYSIS
4.1 presentation and interpretation of data - - - - 41
4.2 Discussion of the findings - - - - - - 48
CHAPTER FIVE
SUMMARY, CONCLUSION AND
RECOMMENDATION
5.1 Summary - - - - - - - - - - 49
5.2 Conclusion- - - - - - - - - 50
5.3
Recommendations - - - - - - - 51
5.4 Limitations of study- - - - - - - - 52
5.5 Suggestion for further Research- - - - - - 53
References- - - - - - - - - - 54
Appendix "A"- - - - - - - - - - 56
Appendix "B"- - - - - - - - - - 57
CHAPTER
ONE
INTRODUCTION
1.1
BACKGROUND
OF THE STUDY
In any economic system there are always the
basic element of production and consumption. In such a business environment
physically distributed problem has received an increasing emphasis.
The
table of matching the technical excellence of mass production with parallel
progress in mass distribution becomes crucial. Consumers and customers cannot
enjoy the benefits of mass production without efficient distribution system.
Getting
the productions to customers as viewed by management is the concern of other.
The distribution activity of the firm is as such a part marketing mix as
pricing, promotions and product decision. Indeed some market the impact of the
distribution effort upon sales can exceed that of other mix element. The
distribution channels provides the link between highly specialized and
geographical dispersed produces of goods and the demand of millions of
purchasing units seen as the means whereby the products reaches the successful
development of the firms distributive effort is the adoption of total systems
approach, whereby an integration view is taken of the various activities
involved in the distribution effort.
The
physical distribution channels structures represent a network of specialized
institution that exist for the purpose of physically delivery products
assortment to purchase the physical
distribution channels consists of institutional arrangement between
specialized intermediaries engaged in the fiction for whom in the manufacturer
producing. Physical distribution activities have recently received increasing
attention from business management including small business other. This is due
to the fact that these functions often represent almost half of the marketing
cost product. In fact researcher’s indicate that physical distribution cost
nationally amend to approximately to percent of the country’s total gross
national product (GNP)
These
finding have led to many small business to expand this cost cutting effort
beyond their historical focus on production to encompass physical distribution
activities.
BRIEF
HISTORY OF THE COMPANY
Seven-up
bottling company is one of the largest manufacturing companies in Nigeria. They
produce and distribute the favorite brand of soft drink, Pepsi, Miranda,
Seven-up and Mountain Dew.
Their brands are popular and widely consumed
across the length bread of Nigeria. Seven-up bottling company has well
Coordinated distributed networks over 200 distribution centers. Located across
Seven-up bottling company was incorporated in November 1951 as subsidiary of
centers group. Their production began in 1953 at a bottling factory in Ebute
Metta in Lagos State.
Since production started the company has the
largest bottle of non-alcoholic beverage in the country in terms of sales
volume with about 1.8 million bottles sold per year, making it the second
largest market in Africa.
1.2
STATEMENT
OF PROBLEM
Physical distribution is a component of
distribution which one of the four element of marketing mix without physical
distribution the production of an organization cannot get the consumer. This
shows the important of physical distribution
in the saves of a products.
A
lot of money has been spent on physical distribution by some organization, but
the effect of physical distribution by some organization, but the effect of
physical distribution on sales is still questionable thus, the aim of this
study is to ascertain the effect of physical distribution on the sales volume
or beverages.
1.3
OBJECTIVE
OF THE STUDY
The objective of this study is to
fulfill the following
1.To examine Seven-up
bottling company’s physical distribution objectives and policies. And to
determine at what level they are set and how the company is organized to
achieve these objectives.
2.To find out the
distribution strategies employed by the company to get it’s products to the
ultimate consumers.
3.To determine the
efficient and profitability of physical distribution in the company operation.
4.To find out its
physical distribution has any effect on the company’s sales volume.
5.To ascertain the
performance of physical distribution on the Seven-up often the consumer has
been disappointed by unavailability of the product.
1.4
SIGNIFICANT
OF THE STUDY
The end product or otherwise the finding
of this research work will be useful to different categories of people and organized
normally students of marketing and related fields, other researches corporate
organizations (especially business institutions) Seven-up bottling company
government and the society at large.
1.5
RESEARCH
QUESTIONS
1.To what extent does
physical distribution interface the performance of Seven-up product?
2.Does physical
distribution has any effect on sales volume of Seven-up drink?
3.Is the cost of carrying
out physical distribution high?
4.How many of the
production line did you carryout physical distribution activities?
5.Did you still make much
gain after the physical distribution expenses?
6.How often have you
(consumers) been disappointed by unavailability of the products?
1.6
SCOPE
OF THE STUDY
In this study the researcher focus his
study on the part of the company business portfolio where physical distribution
is actually practiced. Hence the researcher narrows the study to cover
zones/territories at Ninth Mile, Abakpa, Enugu Ngwo (All within Enugu State).
In order to see how the product get to the ultimate consumer and the sales
representatives of Seven-up bottling company Enugu State.
1.7
DEFINITION
OF TERMS
1.TRANSPORTATION: This
serves as a link between the manufacturers and the suppliers and also between
the manufacturers and the final consumer. It bridges the spatial gaps among the
fixed factory and the market. Therefore transportation increases the value of
the product by creating time and place utilities and at the same time promoting
possession utility.
2.INVENTORY MANAGEMENT
AND CONTROL
INVENTORY MANAGEMENT: Inventory management is one of
the major centers of physical distribution. It involves aimed at ensuring
maximum customer’s service at minimum cost. It also involve the maintenance and
storage of optional cycle and safety stock level in order to ensure a minimum
stock out situation.
3.WAREHOUSING:
Warehousing involves the physical facilities used primarily for storage within
a distribution channel, therefore, warehousing is one of the physical
distribution activities involved in increasing goods, storing them and holding
them till they are further processed. It involves receiving finished goods from
the production line arranging sorting and keeping them in good condition to
facilitate their transfer to distribution channel.
4.PCKAGING: Packaging is
one of the physical distribution activities designed to provide wrapper or
container for the finished goods. The major function of packaging is to protect
finished goods from damage and also to keep them in good condition till they
are needed by the final consumers. It also facilitates sales through
promotions, products differentiation, labeling and provision of infrastructural
materials. Packaging help in achieving the physical distribution activities of
providing adequate consumer service at minimal cost through protection of goods
from damages and provision of the goods in good condition to the final
consumer.
5.MATERIAL HADLING: In
order to achieve the physical distribution of objective of providing adequate
customer’s services at a minimum cost, management has to ensure that materials
and component part are efficiently handled right from the time materials and
component part enters the factory gate till they are processed and ready for
delivery to consumer in form of finished goods.
6.ORDER PROCESSING: This
involves the activities undertaken from the point of receipt of order till the
warehouse is notified to ship the orders. It involves the collection and
processing of all document relating to internal and external transaction. Such
document include: customer’s order, shipping manifest, involves loading from
payment receipt, warehouse storage data and pallet collection. The range
activities involves in order processing include receipts and documentation of
order, ascertaining the credit worthiness of the customers, creating the sales
person that get the order with the sales reflecting the order in the customer
account notifying the account department.
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