PROBLEM OF DISTRIBUTION CHANNEL IN MARKETING CONSUMER GOOD IN FOOD SPECIALTIES (NIGERIA) LIMITED

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ABSTRACT
The issue of distribution channels in marketing consumer goods has become a problem in Nigeria. The aim and objective of this project therefore, is to find out the loopholes that is associated with distribution of consumers good so that an amicable solution can be proffer to it. In the course of carrying out this study, I intend to use both primary and secondary data as well as the distribution of questionnaires in order to make my finding a successful one.

CHAPTER ONE

1.1 INTRODUCTION
Food Specialties (Nigeria) limited is one of the nation’s leading food processing marketing and distribution companies. It’s head office is situated at 10/21 industrial avenue, Ilupeju, Lagos. While her modern factory is at Agbara Industrial estate in Ogun state. The company’s modern distribution center is at Otta, also in Ogun State.
The company has branch office is following town in Nigeria etc. the Area Sale Manager who head these branches help to ensure that food specialties goods are distributed into every corner of the country.
The company state operation in Nigeria over 50 years ago with importation of Nestle product into the country the product gained rapid popularity and acceptance by consumer in Nigeria because of their, high quality. Among these high quality products are Maggi cubes, Nescafe, milo, Gactogen, Nan, Nido and Cerelac.
The company was by them known as Nestle Products Limited which was a subsidiary of Nestle South Africa, Switzerland. The company Food Specialties(Nigeria) Limited was formally incorporated in Nigeria in 1969 as a private company. It was about this time that Food Specialties (Nigeria) Limited started to give serious consideration to setting up a manufacturing unit in Nigeria in order to develop the volume of trade it’s products were enjoying as well as to exploit new business pastures.
In 1971 the company established a factory at Illupeju industrial Estate in Lagos which started in the same year to press and wrap it’s popular Maggi cube locally. Facilities for the production of packaging materials were added to the plant at the same time.
In 1975 Food specialties (Nigeria) Limited started to broaden it’s equity base by offering for sales to Nigerian citizen and organization 40% of it’s share capital in compliance with the Enterprise Promotion Decree of 1972.
The company formally became a public company in 1978 when it’s authorized share capital was increased from N5m to N7.5m.
At the same time in compliance with the Enterprise promotion Decress of 1977. The company sold further 20% of it’s share to increase the proportion of share of Nigerian holding to 60% with the continuing growth in demand for food specialties products the company took the far-sighed decision in 1979 to expand it’s industrial base by acquiring 16 hectare of land for the construction of a food processing plant at Agbara Industrial Estate on the Badagary Express way.
The factory which was build at a cost of N30m was commissioned in February 1952. Food specialties (Nigeria) Limited also decided to build a modern distribution center at the cost of N5m at Otta. As a result of backward integration, Food Specialties (Nigeria) Limited established in 1954 a subsidiary company, Agro Development (Nigeria) Limited in Benin, Kaduna. For the production of local raw material like maize, soya bean and sorghum. Food Specialties (Nigeria) Limited produce the following range of products at Agbara: Milo, Nescao, Maggi cube, Maggi Super, Golden Morn, Cerelac maize, Nutrient and Choco milo. She also import Nido, Nescafe, Nan and Hactogen into the country for distribution.

PROBLEM OF DISTRIBUTION CHANNEL IN MARKETING CONSUMER GOOD IN FOOD SPECIALTIES (NIGERIA) LIMITED