This research work is mainly on effectiveness of physical distribution of Charis sachet Water in Enugu metropolis. The data needed for this study was collected from employees, dealers and 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. 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 are receiving, products are not distributed to every point where they are needed at the right time and quantity and that they are receive complaints from customers 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 followings were recommended. Product high quality should be maintained for continual greater market share. In view of the fact that the initial problem of the company is finding capable distribution outlets, the company should engage more on intensive physical distribution system so that the numerous customers are adequately reached. The company should be also try as much as possible to stop renting, if this is implemented the warehousing (depot) facilities must be satisfactory. The company should provide more storage facilities to customers and Kiosks be to every customer in order to increase sales. The sales truck should serviced more often to avoid break down to enable it render adequate uninterrupted delivery service and this will minimize complaints from customers.
TABLE OF CONTENTS
Title Page ii
Approval Page iii
Table of Contents viii
CHAPTER ONE: INTRODUCTION
- Background of the study 1
- Statement of the study 4
- Objective of the study 6
- Significance of the study 7
- Limitation of the study 8
- Statement of Hypothesis 9
- Scope of the study 10
- Definition of Terms 12
CHAPTER TWO: REVIEW OF THE RELATED LITERATURE
- Meaning of Physical Distribution 12
- Nature of Physical Distribution 15
- Overview of Physical Distribution 16
- The Growth and Development of Sachet Water 17
- Concept of Physical Distribution 18
- Activities involved in Physical Distribution 27
- Physical Distribution in Enugu 33
- Importance of Physical Distribution 36
- Source of Data 38
- Questionnaire Design 40
- Determination of Sample 41
- Questionnaire Completion Time 41
- Questionnaire Allocation and Sample Size 45
- Method of Analysis 53
CHAPTER FOUR: PRESENTATION, INTERPRETATION, ANALYSIS OF DATA AND TESTING OF HYPOTHESIS
- Distribution and Collection of Questionnaire for
4.2 Test Technique 81
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION.
- Summary of Findings 89
- Conclusion 89
- Recommendations 89
- BACKGROUND OF THE STUDY
Production is uncompleted until the good get to the final consumer whom they are meant. A firm will discover that the consumers 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 wholesalers and retailers alone is not enough to get the goods to the consumers. The firm has to ensure that the products are actually available or make available to the distribution outlets.
In order for the 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 prospect. The increase emphasis given to the concept of the 1950 is a practical example of its immense contribution to the successful achievement of marketing goals.
Physical distribution is simply said to be how companies store, handle more goods so that they will be available to consumers at the right time and place.
Consumer’s attraction and satisfaction are highly influenced by the seller’s physical distribution capabilities. As such the issue of physical distribution is very important in business endeavour. An executive physical distribution which results to a reduction in cost of physical distribution will lead to a reduction in production cost or product price, which will invariably lead to the attraction of many price conscious consumers.
Efficient transportation and location of sales outlets will enable industries to make their products available to consumers living very far. Efficient transportation and physical distribution can give a company advantage in being close to these consumers.
Physical distribution in the sachet industries should be intensive they should stock their products in as outlets are possible. The goals must have place utility.
Physical distribution should be intensive because efficient distribution of the product is very important to gain marketing goals and to compete efficiently and effectively too.
Historical Background of the Company
Charis sachet water industry which is one of the leading
name in sachet water industry in Enugu Metropolis. The company is located in the heart of the commercial city of Enugu. E.J. Collince company was establishes over a decade with improved capacity physical distribution of their products.
The company has so many distribution outlets and target geographical areas. The E.J. Collince, the maker of Charis sachet water was among the company that make the largest sales of 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 the heart of Enugu metropolis (River Asata layout). The company has a brand name called “Charis water” which the production site is located at No.3 Mildland Avenue, Asata River layout Enugu.
- STATEMENT OF PROBLEMS
Physical distribution is a very important aspect of distribution activities as it creates place and time utility and set the stage for possession and title utility. All towards customer’s 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 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 times the salesmen are not efficient in carrying out their physical distribution activities.
Also, the salesmen arbitrarily raise the cost of each bag 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 quantity.
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 salesmen direct some products already allocated to the company’s customers. 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 be obtained normally or normally obtain. The desire to find out if any of such problems exist, their cause effect and what may be done to resolve such problems are the reasons for undertaking this research work.
- OBJECTIVE OF THE STUDY
In agreement with the macro objective to determine the effectiveness of physical distribution of Charis product in Enugu metropolis, this research has the following objective.
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.
To determine the nature of the market; if it diffused (that is if the customers are spread out over Enugu metropolis), concentrated or dusted (that is if the customers are gathered at a point in Enugu metropolis).
To also determine the extent to which the distribution of Charis sachet water is distributed with the sale being made.
- SIGNIFICANCE OF THE STUDY
It is essential to study the effectiveness of physical distribution because a company cannot make sales without distribution.
The old buying in marketing was that when you produce the product the whole world will find a way of locating and acquiring that product but now in the modern time, it does 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 which are uncover and defects inherent within the system and then recommend measures to reduce or eliminate these defects.
It is expected that findings of this study will help the management and distribution department of this company in improving their business activities. Customers will also benefit from this efficient physical distribution of Charis product which will be made more readily available to them at all time.
- LIMITATION OF THE STUDY
There is the problem of lack of time. The work is very elaborate yet i have very limited time to accomplish it and with other tight schedules. However, because of the importance of the subject matter, I am able to carryout a justifiable work from where dependable generalizations could be made again. There is the 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.
- STATEMENT OF HYPOTHESIS
This work is based on the following hypothesis:
- H0: Charis water has very wide demand in Enugu
Hi: Charis water dose not have wide demand in Enugu
- 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
- 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
1.8 SCOPE OF THE STUDY
The research work is being conducted in Enugu metropolis which was divided into four (4) groups A, B, C, and D to find out the present physical distribution system of Charis sachet water and to find out how effective such system is to enhance the marketing of such products.
For further classification, the groups are made up of the following.
GROUP A = Ogui New layout, Obiagu, Asata.
GROUP B = Mary – Land, Trans-Ekulu, Independence layout and GRA.
GROUP C = Emene, Abakpa –Nike and New Haven
GROUP D= Uwani, Awkunanaw/Garriki, Achara Layout/ Agbani Road, Coal Camp
- DEFINITION OF TERMS
- Transportation: Is the movement of goods from the point of 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. It can also be said to be a means of traveling or sending information.
- Contact: The searching out and communication with prospective buyers.
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