The study was on improving distribution effectiveness operations using coca-cola as a case study. The total population of the study was 200 staff of coca-cola company in Lagos. The shows that Distribution can also refer as the movement of products and services from the point where there are useful through channel members. Distribution activities are carried out through a channel of distribution which is made up of organizations, individuals or group of individual involved in the distribution process. A channel of distribution is a set of interdependent organizations involved in the process of making a product or service available for use or consumption.
CHAPTER ONE
INTRODUCTION
- Background of the study
The recent phenomenon in the marketing environment in Nigeria has resulted in a drastic turnaround from a production oriented market to a buyer oriented market. It has demonstrated the importance of recognizing a remarkable change in buyer behavior, and the need of every production company to reappraise its marketing system and adapt to the new environment and even exploit it. A key strategy in this marketing system is distribution is a strategies marketing tool representing one of the four arms of the marketing mix, often referred to as “4Ps”.
These 4P’s are:
PRICE: This measures the ability of the buyer to purchase the products.
PRODUCT: (quality and quantity): this includes all the attributes to make the product attractive for exchange purpose.
PROMOTION: Promotion involves creating awareness about the product, educating the potential and actual consumers about the product, and at purchasing the product or even reducing dissonance.
PLACE: (Distribution) the core of the matter being distribution is very important because the efforts developing the product, creating awareness and the product, creating awareness and putting or displaying the product at the best price will be defeated if it is not made available at the place that exchange can take place. The marketing mix thus comprises the decision element in company’s marketing programme, the total packages that determine the degree of marketing concept. The “4P’s” summarises clearly the major ways the firms can influence sales. We are concerned with the place variable. This therefore, pinpoints the importance of distribution in achieving available products. This availability of product bridges the gap of space and time between the production and consumption. Before a production could achieve the desired satisfaction, it must get to the consumers the way they want it, thus breaking all the barriers or gap between the production areas to the consumers. Schare and Smith 1980 (page 386) saw the desired satisfaction, it must get to the need for effective distribution when they remarked that the most innovation product at an attractive price is worth absolutely nothing if it is not available to the buyers when they want it. Product availability then is one requirement of an exchange. Therefore, marketing managers all around the world appreciates the role the distribution play in providing place, utility or satisfaction to the product is available, the value is therefore enhanced. So distribution can be seen to increase the time of utility of a product by putting down the distance between the parties to the exchange. Nigeria Bottling Company Plc (NBC) practices the traditional distribution system that is their products are distributed through various types of middlemen like wholesalers, retailers to customers, direct from the company or through the salesmen. According to Martin Rom. J. (1997 page 316) “The channel of distribution therefore in its most meaningful and simple firm is the course of title boy commodity”. These routes include the manufacturers and ultimate consumers as well as anyone in between.
Nigeria Bottling Company Plc, Coca-cola is the world’s leading soft drink sold across the globe. A total of 600 million servicing are consumed everyday in all parts of the globe from Canada in the North to Argentina and New Zealand in the South, from Alaskato China Maxico to Nigeria. In 1983, when Nigerian Bottling Company first set up its first plan in Lagos (Apapa), it was to be the beginning of an exciting story of growing and development particularly during the past 45 years. Nigerian Bottling Company Plc is today Nigeria number one bottle of soft drinking. Selling more than 7,2264, 138 bottle per day representing 302,073 crates of 24 bottles daily throughout the Federation. Coca-Cola was first made on 18th May, 1886 in Atlanta Georgia,U.S.A. Which is the home town and now the world Headquarters by Dr. John Stythpembenton, a pharmacist. The name Coca-cola was named or given by Frankin Robinson, Pembetons Partner and book keeper.
HOW IS COCA-COLA MADE
The first thing is to select the bottles and dispose those with effects. Quality is the key word which determines the success of whole operations only the best ingredients are used for and filling making the soft drink, and sophisticated washing and filling equipment has been installed in all plants. The manufacturing process is based on a careful measures combination of sugar, water concentrate with standard maintained throughout the world. Pure refined sugar added in pure drinkable and treated water is produced as solution called “Simp Syrup”. The syrup is passed through a filter to ensure purity where it was mixed with undiluted concentrated carbondioxide (Co2), at this step product is measured into the bottles mechanically.
- STATEMENT OF THE PROBLEM
Consumers can be attracted by the quality of a product or promotion for the product and vice of the product, their final decision as to the fitness of the offer is to as large extent influence by the availability of the product at the time and place wanted or needed. In a time like this where economic and technological advancement have become a thing to reckon with the competition in the market place, there is a need to improve distribution effectiveness through the efforts of wholesales, agents, retailers and other types of intermediaries. Distribution success, which is the availability of products at the right place and time, can be achieved through the efforts of the middlemen mentioned above. But the dynamic nature of the environment and other bureaucratic bottle necks can make this success in distribution not to be realized. In view of these problems, there is need to incorporate marketing activities in making the products available is the market place or rather improve for more effective and efficient distribution.
- OBJECTIVE OF THE STUDY
The objectives of the study are;
- To ascertain the extent at which coca-cola Company Plc is involved in distribution effectiveness in their marketing operations.
- To suggest ways of improving selling skills efficiency of their salesmen and the dealers in coca-cola
- To find ways of improving the communication gap existing between dealers and the company staff and management
- To know the requirement analysis with the budget breakdown to all adapts and areas of coverage by salesmen.
1.4 RESEARCH HYPOTHESES
For the successful completion of the study, the following research hypotheses were formulated by the researcher;
H0: there is no extent at which coca-cola Company Plc is involved in distribution effectiveness in their marketing operations
H1: there is extent at which Coca-Cola Plc is involved in distribution effectiveness in their marketing operations
H02: there are no ways of improving selling skills efficiency of their salesmen and the dealers in coca-cola
H2: there are ways of improving selling skills efficiency of their salesmen and the dealers in coca-cola
- SIGNIFICANCE OF THE STUDY
First, this study will be beneficial to NBC Plc in that it will suggest ways of improving distribution effectiveness for better customer satisfaction. Secondly, the study reveals other militating factors that may hinder effective operations of the company’s distribution channels and ways to guide against it. Finally, the research hopes to improve the relationship existing between NBC and its dealers. The study will serve as a reference to other researcher that will embark on this topic
- SCOPE AND LIMITATION OF THE STUDY
The scope of the study covers improving distribution effectiveness operation a case study of coca-cola. The researcher encounters some constrain which limited the scope of the study;
- a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
- b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
- c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.
1.7 DEFINITION OF TERMS
IMPROVING: make or become better.
DISTRIBUTION: Distribution is one of the four elements of the marketing mix. Distribution is the process of making a product or service available for the consumer or business user who needs it. This can be done directly by the producer or service provider, or using indirect channels with distributors or intermediaries
EFFECTIVENESS: Effectiveness is the capability of producing a desired result or the ability to produce desired output. When something is deemed effective, it means it has an intended or expected outcome, or produces a deep, vivid impression
OPERATION: a procedure performed on a living body usually with instruments for the repair of damage or the restoration of health and especially one that involves incision, excision, or suturing.
1.8 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows
Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study.
