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ROLE OF PHYSICAL DISTRIBUTION IN MARKETING OF BEER PRODUCT IN IMO STATE (A CASE STUDY OF CONSOLIDATED BREWERIES PLC AWOMAMMA)

ROLE OF PHYSICAL DISTRIBUTION IN MARKETING OF BEER PRODUCT IN IMO STATE (A CASE STUDY OF CONSOLIDATED BREWERIES PLC AWOMAMMA)

ABSTRACT

The role of physical distribution in marketing of beer production is seen not complete until the product reach the consumers in the right quantity at the right place and at the right time, it becomes every essential and efficient distribution system so that goods produced get to the consumers.

This work therefore examines the physical distribution with regards  in marketing of beer product and also takes a critical view of the subject on the whole product. This work partaking  states the problem of the exercise, states  the statement of the study and the scope of the study. Moreso, the work clearly defines the basis and related terms all for an accurate understanding of the subject.]

Having considered all the precise of the information gotten from all section, and sectors of the economy, the worked reasonably and deliberately made a substantial conclusion.

Written in a clear language this work will serve as a reference to the consumes and all who have interest in distribution of beer production in marketing sector.

    CHAPTER ONE

1.0  INTRODUCTION

       Production in deemed not complete until the product reach the consumer in the right quantity at the right place and at the right time in good condition. Owning to the proliferation of the companies in Nigeria, it becomes very essential to have an efficient distribution system so that goods produce get to the consumers.

1.1  BACKGROUND OF THE STUDY

Basically the aim of any company is to minimize cost and maximize profit, in other to achieve this a firm will have to identify the high cost of generating center and hence try to reduce them. Distribution  activities penetrate cost, the aim of physical distribution management in firms is to bring to absolute minimum of the total cost of distribution and at the same time achieve high customers services.

The word “distribution” is reference to the retailing or selling functions means a vast firm which is composed o many thousands outlet ranging in size from  the small comers shop to large supermarkets, departmental stores and “cash and carry” warehouse, all of which attempts to supply our customers society.

So physical distribution is concerned with the movement of raw materials and finished product from the  manufacture to the supplier and customers (i.e. retailers). It is the link between manufacturing and productive on one hand. The simplest distribution one can offer that physical distribution is an integrated set of activities that deals with the management of products within firm and through marketing channels.

Consolidated breweries Awomamma in a Nigerian brewery own by Heineken since 2004 the area one of the running production sites in the country located at Owerri Imo state, the concentration on the low price and of the market.

1.2  STATEMENT OF PROBLEM

       Though this research work centers on the role of physical distribution in marketing performance of beer in Imo state, it will not fail to touch on the problem their firm. This problems range from lack of adequate supervision, lack of storage facilities, rising in cost of finished goods to the final consumers to the boarding of “coke” by the channel members.

The channel members are not effectively controlled as a means of which prices of product differ from place to place and urban to rural areas. Another area is in boarding of “coke” and its apparent scarcity, lack of mechanism equipment for easy loading and off loading cannot be left out. The scope of modern communication in small to make impact in business transaction, sometimes the post office delay transaction, the telephone services is confined in the urban area and with few customers contact, very difficult warehousing area few and far apart as a result of reasonable distance between depots and the customers price of production tends to be higher in remove area of Owerri.

ROLE OF PHYSICAL DISTRIBUTION IN MARKETING OF BEER PRODUCT IN IMO STATE (A CASE STUDY OF CONSOLIDATED BREWERIES PLC AWOMAMMA)

1.3  OBJECTIVE OF THE STUDY

       It is very important that every study must have objectives and this one is not an exemption. Those are the following objectives of the study.

  1. To determine exactly how too many channels members raise the cost of the moving goods to the customers.
  2. To identify the extent of which the department facilities limit the performance of the channel members.
  3. To make recommendations on improving the distribution system of the company.
  4. To satisfy the requirement in partial fulfillment of the award of National Diploma certificate in marketing.
  5. How to distribute the finished produce of the company (ie. Nigeria beer company Owerri) to final consumers. Ensuring that fanta, beer and other brands of the company’s produces here in Owerri gets to the consumers when they are in need of them and not when coke is needed fanta or beer will be given to the person due to unavailability of coke.

1.4 RESEARCH QUESTIONS

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

  1. How does the company handle their operation and documents?
  2. What are the means of distributing the products to the depots?
  3. Does the company have any means of distribution?
  4. Does the company have experienced drivers?
  5. What is the companies product capacity?
  6. How is breakages in thrist treated?
  7. Is the middlemen willing to carry adequate storage of inventory?
  8. Are storages and related materials handling facilities available and suitable?

1.5         SIGNIFICANCE OF STUDY

It is the researcher that the findings and recommendations of this project will be useful to many interested persons. The significance of the study will include the following:

  1. This study will further enlighten the company on the role of physical distribution in the organization.
  2. Purchasing students will no doubt find this study a vital academic materials, they will have a wider knowledge of the role of physical distribution in a company or firm.
  3. This study will also enlighten the government the basis of infrastructural amenities such as good road for the distribution system in the state.
  4. This will also make the manager of the company to have more knowledge of the distributive system.

1.6         SCOPE OF STUDY

The research will focus on the study on the activities the physical distribution in the marketing performance beer in Imo state. In trying to identify the roles of physical distribution in depth of study will be taken on the present distribution. Arrangement of the company loading and off loading system, stock holding and inventory control, order, processing and administration, the documents used in delivery and dispatch and including the appointment of the distributor.

1.7  LIMITATION OF THE STUDY

FINANCES: The source of the income researcher is very low as a result, she cannot afford the money for all the expense, she is going to incur.

  • In actual sense, this study should have involve the study of some of the manufacturing companies, but because of the geographical distribution of these firms. In view of these the researcher has decided after careful study of al the various types of firms to concentrate on the Nigeria beer company Owerri, Imo state.
  • Another is lack of relevant data in some area that could have helped the researcher in the study.
  • There is also the problem caused by the attitude of the Nigerian to project and also PHCN intermident power failure.
  • Also the problem of some uncompromising staff of ht company cannot be left out.

1.8         DEFINITION OF TERMS

PHYSICAL DISTRIBUTION: The physical flows of materials and final goods from point of origin to point of user or consumption to meet the needs of customers at a point.

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

RE – ORDER LEVEL: This is a stock level when it is desirable to place a new order.

DEPOT: It is a place where storage is made for product and where supplies re made to customers.

LIMITED: This is an abbreviation of limited liability company, this is usually placed after the business name.

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

ROUTINE: To fix the order of procedure of operation in the case of vehicles.

Plant: These are tools or machinery, fixtures, building grounds etc of a factory or business.

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

DISTRIBUTION POLICIES: This exist in marketing and man of them come in the form of nature of product exposure desired by companies as to who and how many distributors should be given opportunity to sell their products.

ROLE OF PHYSICAL DISTRIBUTION IN MARKETING OF BEER PRODUCT IN IMO STATE (A CASE STUDY OF CONSOLIDATED BREWERIES PLC AWOMAMMA)

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