THE EFFECTIVENESS OF PHYSICAL DISTRIBUTION OF CHARIS
SATCHET WATER IN ENUGU METROPOLIS
(A CASE STUDY OF EJ COLLINCE COMPANY)
CHAPTER
ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
Production
is uncompleted until the good get to the final consumer whom they are
meant. A typical firm will deliver or
discover that the consumer for its products are scattered abroad.
The firm
decision to distribute its products directly through own sales outlets or
indirectly through marketing intermediaries such as wholesale and retailers
alone is not enough to get the goods to the consumers. The firm has to ensure
that the product are actually available or make available to the distribution
at lets.
Adequate
core has to be taken of the products minimize losses or damages, and
commensurate customer service have to be given in order to achieve customer
satisfaction and increase patronage.
In order
management of the flow of products from manufacturer to consumer with aim to
achieve consumer satisfaction and goal of the firm, physical distribution must
be properly channeled to this respect. The increase emphasis given to the
concept of the 1950,s is a practical example of its immense contribution to the
successful achievement of marketing goals. Physical distribution is just how
companies store; handle more goods so that they will be available to consumers
at the right time and place.
Consumers
attraction and satisfaction are highly influence by the seller physical
distribution capabilities. As such the issue of physical distribution is
important in business endeavour. An executive physical distribution which
result to a reduction in cost of physical distribution will lead to a reduction
in production cost or product price, which will invariably head to the
attraction of many price conscious consumers.
In Nigeria
and as well as most other nations, industries are localized or concentrated in
few industrial cities or layout wile the consumers or their products are
scattered abroad.
Efficient
transportation and location of sales outlets will enable industries to make
their products available to consumer living very far. Efficient transportation
and physical can give a company advantage in being close to these consumers.
For
example, vita malt drinks produced by Associated Breweries Ltd. In Ogun State
of Nigeria compete favourably with other malt drinks in virtually all ports of
the country as a result of the efficient planning and coordination of physical
distribution activities which make goods available at the right place and time
or where right place and needed.
Expert
believe that substantial savings can be gain in the physical distribution area
which has been describe as “the last frontier for cost economics” (Journal of
marketing April 1962:15)
Physical
distribution in the sachet industries should be intensive they should stock
their products in as outlet are possible. The goals must have place utility.
Cigarette for example, since over one million outlets to maximized brand
exposure and convenience.
Physical
distribution should be intensive because consumers are not efficient
distribution of the product is very important to gain marketing goals and to
compete efficiently and effectively too.
1.2
HISTORICAL BACKGROUND OF THE
COMPANY
Charis
sachet water industry one of the leading name in sachet water industry in Enugu
Metropolis. The company is located in heart of the commercial city of Enugu J.E
Collince company was establishes over a decades with improved capacity physical
distribution of their products.
The company
has so many distribution outlets and target geographical areas. The J.E.
Collince the makers of Charis sachet water was among the largest sale sachet
water in the industry in Enugu.
The
profitability and success of the company can be clearly traced as they are
heavily patronized in the competitive business.
The company
is located in heart of Enugu metropolis (River Asata layout). The company have
a brand name Charis water which the production site is in No. 3 Mildland
Avenue, Asata River layout Enugu.
1.3
STATEMENT OF PROBLEMS
Physical
distribution is a very important aspect of distribution activity as it creates
place and time utility and set the stage for possession and title utility. All
gained towards customers satisfaction.
Based on
this therefore, there is need for a careful handling of the physical
distribution functions for a successful operation of sachet water industries.
However,
for Nigeria sachet water industries physical distribution system to beat lest
near perfection. It must rate highly in its care activities such as
transportation, warehousing, inventory management, and others.
Processing
also have the ability to organize these price of activities properly and
implement them efficiently and effectively, at time the salesman are not
efficient in carrying out their physical distribution activities.
More
so, the salesmen arbitrarily raise the cost of each buy of sachet water sold to
intermediary, market thus reducing their margin some times the degree of the
wholesalers margin affect the final customers. In some cases, the customers do
not get enough of the products at the right time and in the right quality.
In the
case of Charis sachet water industry they don’t have enough outlets for their
product. Nevertheless, for them to compete effectively and efficiently with
other sachet water company’s they need to have enough outlets for their
products.
In most
cases, the salesman direct some products already allocated to the company’s
customers. More so, the distribution of Charis sachet products have a direct
relationship with sales turnover it enjoys.
A
negative response to any of these points will indicate that there is deviation
from what should normally obtain. The desire to find out if any of such problem
exist, their cause effect and what may be done to resolve such problems are the
reasons for undertaking this research work.
1.4
OBJECTIVE OF THE STUDY
In
consonance with the macro objective to determine the effectiveness of physical
distribution of Charis product in Enugu metropolis, this research has some
objective which includes;
To study
the physical distribution activities of Charis sachet water in Enugu and try to
find out if these activities are well performed as expected.
Analyzing
the present physical distribution system with the aims to accessing its level
of efficiency is another point.
To
determine the nature of the market; if it diffused, concentrated or dusted.
To also
determines the extent to which the distribution of Charis dates with the sale
being made.
1.5
SIGNIFICANCE OF THE STUDY
It is
important to study the effectiveness of physical distribution because without
distribution companies cannot make sales.
The old
buying in marketing was, that when you produce the product the whole world will
bit a part to your door. In the modern time, it dose not apply because the
place utilizing must be incorporated. This means that in addition to producing
the best product, the customers must be communicated and they may want it
delivered at a given time, place and form and such it the function of physical
distribution.
Non-
durable products such as Charis sachet water have to be supplied as at when
needed. Any short fall in performance will reduce the level of customer
service.
Thus it
become important to study the physical distribution system and benefit from
this effective they are and uncover and defects inherent within the system and
then recommend measures to reduce or eliminate these defects.
Furthermore,
it is expected that findings of this study will help the management and distribution
of this company in improving their business activities. Customers will also
benefit from this efficient physical distribution in that Charis product which
will be made more ready available to them at all time.
1.6
LIMITATION OF THE STUDY
There is
the problem of lack of time. The work is very elaborate yet we have very
limited time to accomplish it and with other tight schedules. However, because
of the importance of the subject matter, we are able to carry out a justifiable
work from where dependable generalizations could be made again, there was there
problem of financial constrain of the nations economic crunch.
The high
cost of transportation to this company under study was also hindrance in the
sense that most time the researcher had to repeat his visit twice or thrice a
week before getting the information required. Also the consideration.
1.7
RESEARCH QUESTIONS
The
research question for this work will be base on the following.
What is the
size of demand for Charis waters? Are customers satisfied with the present
level of physical distribution service of Charis?
Does Charis
has enough distribution outlet to satisfy the customers. What is the
distribution objective of Charis? What presentation of market is Charis
serving? What is the type of Channel structure used by Charis? Is it from the
produceto the customers or with the use of intermediaries? Does the
distribution strategy questionnaire regular and fulfill the issue of time lines
is it effective in terms of cost and distribution objectives.
1.8
STATEMENT OF HYPOTHESIS
THIS WORK IS BASED ON THE FOLLOWING HYPOTHESIS:
1.
H0: Charis water has very wide
demand in Enugu metropolis.
Hi: Charis
water dose not have wide demand in Enugu metropolis
2.
H0: Charis water are distributed to
every point where they are needed at the right time and quantity.
Hi: Charis
water are not distributed to every point where they are needed at the right
time and quantity.
3.
H0: Customers are satisfied with
the present level of physical distribution service they receive.
H1:
Customers are not satisfied with the present level present level of physical
distribution service they receive.
1.9
DEFINITION OF TERMS
TRANSPORTATION: Is the movement of goods from the
point pf production to the point of sale.
STORING:- Is the marketing function of holding goods.
It provides time utility.
INVENTORY: Is the amount of goods being stored.
PHYSICAL
DISTRIBUTION: The transportation and sorting of the goods.
WAREHOUSING:-
Is a place for load and unloading of products both in the central stores and
the depot of Charis waters.
COMMUNICATION:-
It is the process by which information is passed by a previously accepted
symbol.
CONTACT:- The searching out and communication with
prospective buyers.
REFERENCES
Udell. Jon
G. and Laczmak, Gene R. (1981).
Marketing
in An age to change: An
introduction, New York: John Wiley and Son. Inc.
Kotler,
Philp (1994), Marketing management:
Analysis, Planning, Implementation and control,
Englewood Cliffs: Prentice- Hall Inc.