ABSTRACT
The
role of effect in distribution channel in any organization can not be over
emphasized. This is because it assists positively in creating customers
satisfaction, since the customer remain the king in any economy. Distribution channel a locust path and route
through which product passes or move from the point of production to the point
of consumption is essential hence, its significance never be divorce from
marketing product The process cover five chapters: Chapter One: Background of study, statement of problem,
objectives of the study, significance of the study, scope and limitation of the
study, definition of terms, management, distribution policy and channels,
marketing intermediaries agents direct sales. Chapter Two: Has to do with
literature review, being the review of past authors work on the subject matter,
direct and indirect method of distribution, wholesaling, limited service of
wholesaler, retailing and their function, objective of distribution, the
channel design decision, accounting for the cost of distribution principle of
managing the channels and technique for managing the channel. Chapter Three:
Consist of research methodology. This consist of the research method used
instrument used for data collection, research population and sample size, the
sampling procedure employed and the statistical techniques used in analysis of
data and the information of data. Chapter four: Also cover, the presentation
and analysis of data and the proof of hypothesis Chapter Five: The finding,
conclusion and recommendation, summary
TABLE OF CONTENT
TITLE
PAGE i
CERTIFICATION
ii
DEDICATION
iii
ACKNOWLEDGEMENT
iv
ABSTRACT
vii
TABLE
OF CONTENT viii
CHAPTER
ONE
GENERAL INTRODUCTION
1.0 Background of the Study 1
1.1 Statement of the Research Problem 1
1.2 Aim and Objectives 4
1.3
Significant of the Study 5
1.4 Scope and Limitation of the Study 6
1.5 Historical Background of Nigeria Bottling
Plc Ilorin 7
1.6
Limitation and Constraints 9
1.7
Organizational structure of the Nigeria
Bottling Company Plc 10
1.8 Definition of Terms 11
CHAPTER
TWO
LITERATURE REVIEW
2.0
Introduction 13
2.1 The Channel as a Unit 14
2.2 An – Xray of Distribution 14
2.3
Evolution of Distribution Channel in
Nigeria
2.4 Development of Distribution Channel
2.5 need for marketing intermediaries
2.6 method of distribution in the
Nigeria market
2.6.1. Direct Method
2.6.2. Indirect Method
2.7 Wholesaling
2.7.1
Types And Function Of Wholesaling
2.7.2 Merchant Wholesaler
2.7.3
Limited Service Wholesalers
2.7.4
Drop Shippers
2.7.5.
Mail Order Wholesalers
2.7.6
Future Of Retailers
2.7.7 Objective Of Distribution
2.8 Major Consideration Of The Choice of Distribution
2.9 Channel Design Decision
2.10 Accounting for the Cost of Distribution
2.11
Principle of Distribution Costing
2.12 Techniques for Managing the Channel
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.1
Research Method Used
3.2 Instrument Used in Data Collection
3.3 Research Population and Sample Size
3.4.
Sample Procedure Used
3.5 Statistical Techniques used in Analysis Data
CHAPTER FOUR
4.1 Data Presentation
4.2 Proof of Hypothesis
CHAPTER
FIVE
SUMMARY CONCLUSION AND
RECOMMENDATION
5.1 Summary of Finding
5.2 Conclusion
5.3 Recommendation
Reference
Appendix
I
Appendix
II
CHAPTER ONE
GENERAL INTRODUCTION
1.0 BACKGROUND OF THE STUDY
It is observe that place it one of the
marketing activities include channel of distribution transaction were housing,
STORAGE, INVENTORY handling etc. when product have been produced, marketers
have to create to place utility.
It does not matter how good products
are the movements it cannot get to the customer at the right place, the
objectives of marketing are defeated.
Distribution channel involves inter –
related activities that enhances the movement of goods and service from the
producer and to the point of consumption through organization that performs
different types of marketing activities. It is critically essential that
marketer understand channel of distribution facilities that will enables to
distribution facilities that will enable them to research their target market
effectively.
Distribution channel concept is
essentially the development and operation of efficient flow system for product
it relates to other activities of the firm to the extent that it is difficult
to isolate them exception in conceptual terms.
Beside its interaction with promotion
and other marketing functions, the distribution management concept also interact
with production, this makes distribution a key to success market that is distribution
is central to the success or failure of company’s efforts.
1.1 STATEMENT
OF THE RESEARCH PROBLEM
The aim of producer, is to produce
goods and service to wards consumers wants and satisfaction, and one of the
means to let consumers get satisfied is to enable consumer get the goods at the
rights place. This can only be possible through channels of distribution which
are often linked to pipe inked to pipe line through which a product flows on
its way toe the consumer. It is therefore, become interactive that markets understand
channel or distribution and that they are able to distribute facilities that
will enables them to reach their market target effectively. The route taken by goods
and services include the manufacture intermediacies and the ultimate consumers.
Intermediaries in the channel process include wholesaler, retailer and various
kinds of agent such brokers.
The
channel distribution is an organization dispute its important have been
observed to create the problem of high price of goods and service which in turn
usually bring about low sale of companies product, reduction in consumers
satisfaction etc. it is as a result of this problems that the research is under
taken to ensure its minimization and maximize consumers satisfaction. As a
result of the above problem mentioned, the choice of channel of distribution to
be used should be headed with care, infant the following factor company
objective market consideration product characteristics, middlemen
characteristics consumer and characteristics environment characteristic are
fundamental toward choosing distribution channels and firms must take cognizance
of them.
Therefore,
channel of distribution should be heated as total system of action. Producer
and middlemen should understand that each of them is one component of total
systematic organization that is designed to maximize market effectiveness in
selling the company product and meeting customers satisfaction.
1.2 AIM AND OBJECTIVES
The general objectives of this
research study is to examine with care the effectiveness of distribution
channel management and customer satisfaction using Nigeria bottling company plc
as a case study
1. To
identify the need for customer consideration in designed channel of
distribution
2. To
establish the fact that distribution channel enhances customer satisfaction.
3. To
estimate the fact that distribution channel persuades customers to buy company
products.
4. To
have a look at problem those are common to channel of distribution
5. To
identify how company image can be built through distribution channel
6. To
establish that the distribution channel increases company sales volumes.
1.3 SIGNIFICANT OF THE STUDY
The relevance of this study is derived
from the economic depression uncounted in Nigeria recently which ahs
seriously affected the distribution marketing of goods and service of many
manufacturing companies. There is need to direct research attention of the
problem above.
The results obtained from this
research finding will spur the company to a greater efficiency in term of
distribution of their goods and service other is the manufacturing sectors will
be more serious to embark on the decision that will help in improving their channel
of distribution. The study will also broaden the fronties of knowledge on the
distribution as a subject.
1.4 SCOPE AND LIMITATION OF THE STUDY
To ensure effective performances of
any company. The management of its distribution channels is important however,
attempting to cover all bottling companies would be impressible as a result of
the differences in their channels of distribution. As a result of this, I will
be using Nigeria Bottling Company Plc Ilorin.
The research work will be concentrated
on how they distributed their product to the final and user (i.e. consumer) through
different channels which may be such as from manufacturer – wholesaler – retailer
final consumer. Furthermore this study will cover to middlemen because they see
to how the company product are being distributed and the retailer, consumers of
the company’s product will not be excluded.
1.5 HISTORICAL BACKGROUND OF NIGERIA
BOTTLING PLC ILORIN
The
first Nigeria
bottling plan was commissioned in 1953. Operating within the basement of
present maintained Hotel as Ebutemetta, Lagos.
It was to be the beginning of an existing story of growth and development
particularly during the 45 years with staff strength of about 10,000 workers in
all fields of operations all over the country.
Nigeria Bottling Company is Nigeria number
one bottler of soft derives selling more than million bottler of growing. In order
to increase sakes the company established deports in major cities between 1953
and 1955, in 1955 the company established a new plant in Kano to provide service to the northern
states. The 1970s can appropriately be discovered as a decode of
expansion for the Nigerian bottling company a plant was opened at Benin
of the beginning of the 70s. this was followed in 1972 and 1973 commissioned
of the Jos and enough plant respectively. Another plant was opened in Ikeja in
1978 and then one in Ilorin 1979, fanta is by the number one best seller in
orange segment and sprite the most widely sold lemon – line drive in Nigeria
other product bottled by Nigerian bottling company include fanta tome and krest
bitter lemon 35cl fanta champion was introiduce recently in july 19095. then
25cl coke was introduced to ilorin
on Sunday 8th January, 1995 to cater low income earner also the 50cl
coke, fanta and other were introduced recently, directly coke is another
product introduced to the market.
The success of coca – cola has brought
with it the development of a number of sister companies all contribution to the
growth of Nigeria
economy. The nogal gloss, glos company in ugholti was incorporated in June 1974
and supplies the million of bottles to keep a large bottling company in
operation .also the crown to seal the bottles, the Benin plastic company which
makes the create for carryimg the bottle. In 1958, the first carbon dioxide
plant was established and Nigeria
bottling company plc is the target manufacture of carbon dioxide used to
carbonate the drinks.
1.8
LIMITATION AND CONSTRAINTS
To
ensure performance of any company, the management of is distribution channels
is important however, the attempting to cover all bottling company would be
impressible as a result of the differences in their channel of distribution. As
a result of this I will be using Nigeria Bottling Company Plc Ilorin.
The research work will be encountered
on how they distributed their product to the consumption stage.
1.9 DEFINITION OF TERMS
Management
of distribution channel in the manufacturing concern consist many terms in
which reservation found them peculiar to define for easy understanding by individual
organization ,institution or government set who wish to make use of this
project.
1.
MANAGEMENT:
Management means getting things done through people or as a n act of making
resources productive. Through no mention was made of either planning,
organization, controlling, directing. It is obvious that can make resources
productive without those functions.
2.
DISTRIBUTION:
Distribution is the pathway through which goods and services flower move from
producer to consumer in order to allow customer get satisfied and toward the
realization of the company set objectives. distribution involves inter related
activities that facilitates the movement of goods and services as from the
producers and to the point of consumption.
3.
CHANNEL:
Channel in business organization could be define as the combination of
institution through which a saler markets his final goods the institutions
comprises of middle men such as wholesaler, retailer, advertising agencies, brokers
facilitations. This is path between manufacturing and consumers.
4.
DISTRIBUTION POLICY:
This is intensity of purchaser course of exposure a product should get.
5.
MARKETING INTERMEDIARY:
These are marketing institution or channel member
that are responsible for transfer of goods and services from the
problems to the final consumers.
6.
AGENT;-
These are marketing intermediaries that
make arrangement on behalf of a firm for buying and selling of the company
product under specified agreement they neither own nor take possession of the
merchandise .the sell to wholesales or retail customers
7.
DIRECT SALES;-
this is method of distributing involving the selling of goods and services directly
to customers or end users.
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