THE EFFECTIVENESS OF PHYSICAL DISTRIBUTION OF CHARIS SATCHET WATER IN ENUGU METROPOLIS (A CASE STUDY OF EJ COLLINCE COMPANY)
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THE EFFECTIVENESS OF PHYSICAL
DISTRIBUTION OF CHARIS SATCHET WATER IN ENUGU METROPOLIS (A CASE STUDY OF EJ
COLLINCE COMPANY)
ABSTRACT
This research work is mainly on
effectiveness of physical distribution of Chris sachet Water in Enugu
metropolis. The data needed for this study was collected from employees,
consumers of Charis sachet water.
The objective is to find out if their
products have very wide demand within Enugu metropolis. To determine the rate
of satisfaction of consumers with the present level of physical distribution
and to know if their product reaches the consumers at the worked for. The
research methodology employed were questionnaires and observation of how
physical distribution are implemented.
In addition, various statistical
models like Top man formular and Z test techniques were used in calculating the
sample size and testing of the hypothesis respectively.
From the analysis of the data
obtained it was discovered that Charis sachet water have very wide demand
within Enugu Metropolis that dealers are not satisfied with the present level
of physical distribution service they receiving, products are not distributed
to very point where they are needed at the right time and quantity and that
they receive complaints from customer with this it was recommended that Charis
sachet water should increase their product quantity for greater market share,
improve physical distribution by providing enough product at the right time and
right quantity and customer oriented.
Based on the findings, and the
various facts highlighted, the following where recommended.
1. Product high quality should be
maintained for continual greater market share.
2. In view of the fact that the
initial problem of the company is finding capable distribution outlets, the
company should engages more on intensive physical distribution system so that
the numerous customers are adequately reached.
3. The company should also try as
much as possible to stop renting if this is implemented the warehousing (depot)
facilities must be satisfactory
4. The company should provide
more storage facilities to customers and Kiosks to every customer in order to
increase sales.
5. The sales truck should
serviced more often to avoid break down to enable it render adequate
interrupted delivery service and this will minimize complaints from customers.
TABLE OF
CONTENTS
Title page
Approval
page
Dedication
Acknowledgement
Abstract
Table of
contents
CHAPTER
ONE: INTRODUCTION
1.1 Background of the study
1.2 Historical background of the
company
1.3 Statement of the study
1.4 Objective of the study
1.5 Significance of the study
1.6 Limitation of the study
1.7 Research questions
1.8 Setting of hypothesis
1.9 Definition of terms
CHAPTER
TWO: REVIEW OF THE RELATED
LITERATURE
2.1 Meaning of physical distribution
2.2 Nature of physical distribution
2.3 Overview of physical distribution
2.4 The growth and development of
sachet water
2.5 Concept of physical distribution
2.6 Activities involved in physical
distribution
2.7 Physical distribution in Enugu
2.8 Importance of physical distribution
CHAPTER
THREE
3.1 Scope of the study
3.2 Source of data
3.2.1 The primary data
3.2.2 The secondary data
3.3 Questionnaire design
3.4 Determination of sample
3.4.1 To obtain probability of
success and failure
3.5 Questionnaire completion time
3.6 Questionnaire allocation and sample
size
3.7 Reliability test
3.8 Method of analysis
CHAPTER
FOUR: PRESENTATION, INTERPRETATION,
ANALYSIS OF DATA AND TESTING OF HYPOTHESIS
4.1 Distribution and collection of
questionnaire for
Employees.
CHAPTER
FIVE: SUMMARY OF FINDINGS,
CONCLUSION AND RECOMMENDATION.
Summary of findings
Conclusion
Recommendation
Bibliography
Reference
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.
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