If a company has a good product, well branded and priced, required
and proper promotion done but could not get to the users as and when required,
the company has succeeded in achieving nothing.
Therefore, the objective of this study is to ascertain whether the company has
sufficient number of functional distributors, dependable source of raw
materials and good distribution network.
Chapter one contained a general discussion on distribution. It went
further to find out if the company have dependable source of raw materials and
from the objectives of the study four hypothesis were formulated.
Literature review tried to examine both the empirical and non-empirical works
available on the subject of the study.
Chapter three dealt with the design of the study. The methods of
relevant data collection, distribution and treatment of data were also
The data collected from the survey were analyzed and interpreted in chapter
Finally, the summary of findings, conclusion and recommendations were contained
in chapter five. It is the belief of the researcher that if Nigerian
Brewery and other brewery industries would put the recommendation given in the
study to use that there would be a drastic charge in the services offered and
continuous increase of profitability on the side of the company.
TABLE OF CONTENT
1.1 Background of the study
Statement of the problem
Formulation of hypothesis
Significance of the study
Scope and limitation of the study
Definition of terms
REVIEW OF THE RELATED LITTERATURE
METHODOLOGY FOR THE STUDY
3.1 Development of research materials
Population for the study
Treatment of data
PRESENTATION ANALYSIS AND INTERPRETATION OF DATA
Analysis of data
Testing of hypothesis
5.1 Summary of findings
OF THE STUDY
Production is the creation of goods and services, the goods and
services can be produced in factories, industries, firms or companies.
Production is not complete until the products / services get to end user or
consumer. This can be obtained through the distribution process and that
complete the production cycle. The distribution activity is equally
referred to as physical distribution management (PDM), Marketing logistics and
material management. Physical distribution system includes; transportation,
material handling, order processing, inventory control, warehousing and packing
into a complete distribution strategy.
Mccarthy, described the place
component of marketing mix (distribution) as “the situation and use of
marketing specialist middlemen, transportation and storage agencies to provide
target customers with place and possession utilities. Distribution
channel is regarded as a bridge that spans various gaps between producers and
Kolter on his own stated that
physical distribution is defined as the planning, implementing and controlling
the physical flows of materials and final goods from point of origin to point
of use to meet customers needs at a profit. It is concerned with the
efficient movement of raw materials, from the suppliers to the factory site
where they are processed into finished product and passed to the final
The procedure of getting the
right quantity of the right product to the right place at the right time and at
the least cost is no simple job because companies like the brewery
industries with their great diversity of customers spread over vast
geographical areas must integrate the systems components to avoid
dissonance. (dissatisfaction). As stated earlier, there exist a gap
in the firm of place and time between manufacturer and the ultimate consumer or
user for whom the manufacturer is producing, and this gap can only be bridged
Many problems are confronting
the distribution system of brewery industries, these problems ranges from lack
of channel members, to physical distribution problems such as lack of adequate
transportations, poor inventory management, inadequate warehousing facilities
and lack of sophiolicated method of communication. The problem in
distribution network starts with selection of mode of distribution, selection
of inexperienced personnel’s with little or no business acumen as
distributions. The continuous increase in the cost of transportation due
to decoration of our roads, high cost of vehicles and spare parts and currently
increase in cost of petroleum products poses a serious problem in the effective
coverage of territories in the distribution of bear both in rural and urban
areas in the country.
In the area of inventory,
modern management is rarely practiced; this is partly caused by insufficient
storage facilities and inappropriate storage methods which invariably results
to high rate of spoilage, breakage and waste of products. Besides, warehouses
are very few and far, sophisticated material handling equipments like fork
lift, cranes, conveyor machines etc are lacking in some of these companies.
So in the light of these
marginal of problems and the fact that there are so many brands of bear in the
market from which the consumer has to choose with little or no difference among
them in terms of quality and other characteristics. It then follows that
there is a need for the individual brewing firms to manage the physical
distribution system and engage in proper manipulation of other marketing mix
variables in order to keep afloat in the present day competitive beer market in
In this study, the researcher
shall consider the physical distribution management from the point of view of
NIGERIAN BREWERIES PLC, NINTH MILE, ENUGU, ENUGU STATE.
STATEMENT OF THE PROBLEM
There is a common problems in the brewery industries, (Nigeria
brewery Plc inclusive) which hampers the effective and efficient movement of
their products from point of production to the final consumers, this is the
problem of physical distribution which if not attended to may be a bailer to a
company’s effort to satisfy its customers as well as meeting its marketing
goals and objectives.
A well modeled distribution channel is basically a prerequisite for proper
integration of the activities that will eventually lead to attainment of the
organizational goal. When the consumers are not well linked through an
organizational distribution channel, the problem of where, when and at what
price the company’s products will be available will be difficult to ascertain.
The price of products of the Nigerian breweries plc trench to be higher in
towns far from the location of the plant and it is also known that the
warehouse in the plants location are often overstocked whereas the product
experiences sporadic shortages.
The problems to be addressed
Do Nigerian Breweries Plc have warehouse outside their plants location.
Do they have sufficient number of functional distribution vans or trucks?
Do Nigerian Breweries have dependable source of raw materials.
PROFILE OF NIGERIAN BREWERIES PLC
Nigerian Breweries is a public limited liability company with
registered head officer in Lagos. The company is owned by Nigerians and
minimum representation of foreign interests.
Nigerian Breweries limited as it was then called was established in November
1946 for the main purpose of brewing. It is the first brewing firm to be
set up in the country. In 1949 the company started operations in Lagos
with single product line ‘star larger beer”. But today, it has brewing
plants in Aba, Kaduna, Ibadan and Enugu with a wider verities of product which
includes Gulder, Maltina, Legend extra stout, Amstel etc.
The Enugu plant was bought over from monarch breweries limted on September 1992
and is sited at 9th mile in
Ngwo. Recently, the company had a new site at the same venue just some
poles from the former plant. The new site went into full operation in
2003 and was built to international standard.
Today, Nigerian Breweries Plc is one of the leading name in the financial
market. The new site is where production takes place while the former
site is where the warehouse is located.
The primary needs for the study
To find out if the Nigerian Brewery Plc have warehouses outside their plant
To ascertain whether the company has sufficient number of functional
To determine if the company have dependable source of raw materials.
To proffer recommendations that are in line with the researchers objectives.
FORMULATION OF HYPOTHESIS
HO 1: The company has warehouses outside their plant location
HO2: They have
sufficient number of distribution van
HO3: The company
has dependable source of raw materials.
HO4: The physical
distribution management of the company is effective.
SIGNIFICANCE OF THE STUDY
The study of channels of distribution of Brewery industries and
its associated problems would be of benefits to brewery industries and Nigerian
brewery Plc in particular.
This research is aimed at finding the suitable situation that will guide the
members of the industries in designing effective and efficient channels of
distribution to effectively reach the target consumers. The research is
also aimed at providing Nigerian Breweries plc management with important and
identified variables that are necessary to the development of good channels.
The alarming rate of physical distribution cost in the brewery industries made
this study more significant as the researcher tends to determine the possible
way of reducing the cost and providing effective and efficient solution to the
problem of physical distribution management.
The coordination of the activities of physical distribution are
indispensable to any firm that is engaged in production of goods or services
because distribution is a course that must be managed effectively and
efficiently to control an organizational system. The significance of this
study is more apparent and appreciated when we understand the importance of
physical distribution in the brewery industries like Nigerian Breweries.
Moreover, in the brewery industries, distribution cost is the Killer cost or
the Killer disease variable cost. Since profit is the goal of every
busies, this important variable cost has to be intensively managed in order not
to eat deep into the company operation cost. Marketing managers and the
management in general must give high level of attention to physical
distribution because its cost alone can detrimental to the entire organization.
DEFINITION OF TERMS
The following terms used in this study should be taken to mean the
PHYSICAL DISTRIBUTION CHANNEL
The movement of goods from the point of production to point of
This implies to the procurement
of souring of raw material to the production unit, movement of the finished
goods to the warehouse then to the distribution intermediaries before the
EFFICIENT AND EFFECTIVE
This means being able to
achieve a company’s goals and objective as at when required at the minimum
This is the adoption of an
appropriate means of distribution that will serve efficiently and effectively
from the available distribution options.
TERMS AND CONDITIONS APPLY
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