PRODUCT PLANNING AND DISTRIBUTION (A CASE STUDY OF NIGERIA BOTILING COMPANY (NBC) PLC ENUGU)

ABSTRACT

This project work was on product planning and distribution. A case study of Nigeria Bottling company (NBC) PLC Enugu.

The main objectives were.

-          To understand the idea of product planning, product distribution and its circle.

-          To know system of planning and distribution.

-          To apprehend the effect of product distribution and planning as it relates to management objectives.

Based on the objective of the study three hypothesis were formulated.

  The population of study were drawn from the consumers and retailers of product in Enugu metropolis.

            Topmam formular was used to determined the sample size.

Questionnaires were used to elicit data respondents.

Simple tables and (%) were used to analyzed data collected.

Based on the analysis the following findings were made.

-          product planning enhance NBC marketing performance.

-          Product planning enhances brand image of NBC products.

-          Effective product planning by NBC increase consumer patronage.

The researcher, therefore made the following recommendation.

-          The company should know how to enhance their marketing performance.

-          The company should recruit highly skilled staff and adequate training so as to faces the challenges of other company in planning and developing the company products.

-          The management should find out the seasons which demand for the company product are at its peak level.

-          The company should add some distinct quality in their soft drink production so as to differentiate the taste of their product from that of competitors.

TABLE OF CONTENTS         

CHAPTER ONE

1.0              Introduction/Background of the Study

1.1  Statement of the Problem

1.2              Objectives of the Study

1.3              Hypothesis Formulation

1.4              Scope of the Study

1.5              Significance of the Study

1.6              Definition of the Terms

CHAPTER TWO

2.0              Meaning of Product

2.1   Product Classification

2.2              Product Planning and Development

2.3              Decision Areas in Product Planning

2.4              The function of product planning

2.5              New Product

2.6              Planning for New Products

2.7              The Expanding Duties of the Product Manager.

 2.8 Product Attributes

2.9   Product Positioning

2.10 Physical Distribution

2.11 Physical Distribution Objective

2.12 Distribution Channels

2.13 Selecting Channels of Distribution

CHAPTER THREE

3.0              Research Methodology

3.1   Source of Data

3.2              Research Design and Methodology

3.3              Population of Study

3.4              Sample Size and Determination

3.5              Sample Technique

3.6              Instruments For Data Collection

3.7              Validation of Instrument

3.8              Limitations

CHAPTER FOUR

4.0              Presentation and Analysis of Data

4.1   Hypothesis Testing

CHAPTER FIVE

5.1              Discussion of Result

5.2              Discussion of Finding

5.3              Recommendation

5.4              Conclusion 

CHAPTER ONE

1.1              INTRODUCTION/BACKGROUND OF THE STUDY

Product planning is the originating evaluation and development of new ideas that can be profitable sold in the market place (Markins 1979).

A product is anything that can be offered to a market for attention acquisition, use or consumption that might satisfy a want or need include physical objects, services, persons, organization and ideas (Kotler 1989).

A product can also define as a set of tangible and intangible attribution that leads to customer satisfaction (Stanton 1981) in fundamentals of marketing.

In the light of the above therefore, product planning embraces all the activities that enable a company to determine what product it will market. Management deals with “all those who have supervisory responsibility ranging from the chief executive down to the first line supervisor. In this case, management is regarded as a box that is those who direct the work of others and their own work through their own effort and efforts of others.”

Thus, product planning and management comprises all the activities that enable a firm to determine what it will market or produce so as to satisfy customers wants and needs respectively.  This involves the “process of effectively planning and regulating the operation of that part of on enterprise which is responsible for the actual transformation of materials into finished product.” This includes all the activities required in storage and distribution of the company’s goods. This addresses the question of which of the channels a seller should select for his product.

Which particular middleman to include in each channel type. How to manage the distribution system for affective performance.

The company should know the degree of channel control desired by controlling the channel, the producer attempts to ensure that his product did receive the necessary sales as well as any other essential elements needed to present the product properly and satisfy and customers. The company or firm should make necessary effort to control the quality of the product. 

The quality level to be built into the product is a conscious decision to be made by the manufacturer. A higher quality product normally is more costly to produce than a lower quality one, and so commands a higher price on the market. The quality level decision therefore should be related to the price range that will be attractive to the main stream of potential buyers.

Quality is multi-faceted, it relates to or depends on such factors as the quality of raw material used, the production process itself, quality contend during production, packaging or dressing of the product, price of the product, the environment in which the product is displayed for buyers. The durability of the product is use and the buyers expectation and appreciation. In general, product quality tends to be high to the extend that any of the above factor’s is good. The quality producer has be in line with demand at a particular point in time so as to fight against “out of stock” or “over stock”.  The firm has to be watchful at any point in time so as to produce, when to produce for (the target market) and why such a product is required.

The base goal of product management is to ensure that a product matches the wants and needs of consumers in its market. (D. Sehewe and M. Smith 1980 page 286).

Too many markets make the mistake of thinking that consumers feel and act as they do and share their wants, invalid assumptions on the part of marketer’s results to marketing failures previously about an hundred years ago, there was few producers, the sellers, oriented type of market was preventing consumer out weighted the number of producers and little or no regard we paid to consumers welfare.  Production concept is the entire set of benefits the product provides to the consumer. No attention was paid to product packaging prodding, product quality and other important physical attribute of a product.

As time went on, more and more producer came into the market. This gave rise to competition among the available producers. Consumption was based on good packaging, brand image, product quality, convenience etc. this is know as product concept in marketing philosophy. It is this situation that forced manufactures to spend time in product, packaging, labeling, branding etc.    

            Now, advancement in both technology and communication as well as production equipment introduced into the circulation makes the market more complicated. This is the era that brought abut marketing concept. Here manufactures and producers first of all go out to find really the needs and wants of consumer, then the most admirable type, colour, package, design, branding and labeling that will best suit the desire of the potential and actual consumers of the product. Product planners must try to match the firm’s resources i.e. (what it is capable of producing with the men, money, machines and materials it has. The needs of consumer satisfaction and highest company profits can be achieved. Because of the sophisticated nature of today’s business, many tactics are being applied by different companies to fight back competition and to stand firmly in the market. Many new products are constantly being introduced into the market, innovations are seriously do their job, old and profitable products are modernized while some are deleted out of the market. Companies use special and admirable package design good branding and beautiful types of labeling to distinguish their products form many similar products in circulation in market.

1.2              STATEMENT OF THE PROBLEM.

Research problem as an interrogative statement which ask about the pressure relationship between two or more variable that creates particular state of affairs (Ngadi 1984).

            In this study the researcher will be concerned with the following problems.  The problem of understanding the concept of product planning and distribution.

Types of product system and planning available.

            The effect of product planning and distribution on the organization as it affects management objectives.

            This work is intending to assess critically the operation of product planning and distribution.

i.                    What is product planning and distribution.

ii.                  What is mechanism are employed in fluting its objectives.

iii.                What are the functions of product planning and distribution.

iv.                What are the problem and prospects product planning and distribution.

v.                  What are the product and distribution planning tools available to NBC plc.

1.3              OBJECTIVE OF THE STUDY.

The research objective is intended to what may be regarded as management objective. It is orderly and efficient conduct of business of the enterprise where product planning and distribution comes in a part of ineffective control in business organization.

            To understand the idea of product planning, product distribution and its cycle.

-          To know system, planning and distribution.

-          To apprehend the effect of product distribution and planning as it relates to management objectives.

1.4              HYPOTHESES FORMULATION 

Ho: product planning does not enhance NBC marketing performance.

Hi : product planning enhances NBC marketing performance.

Ho: effective product planning by NBC increase consumer patronage.

Hi: effective product planning by NBC does not increase consumer patronage.

Ho: product planning enhance brand image of NBC products.

Hi: product planning does not enhance brand Image for NBC product.

            To do this, the study is aimed with information gathered from extensive literature review as a base. The main objective of this study is to investigate certain problem usually associated with product planning, distribution and management in NBC plc which require a proposal of remedial measure after revealing area of the problem.

1.5              SCOPE OF THE STUDY

This study covers the Nigerian Bottling Company Plc Enugu, the product of.

1.      Coca-Cola.

2.      Sprite

3.      Fanta quinine and orange

4.      Krest Bitter lemon

5.      Tonic water.

6.      Club Suda.

The researcher based on their write-up on NBC plc, producer of Coca-Cola which is the first product planning, distribution and management.

1.6              SIGNIFICANCE OF THE STUDY 

This study has immense significance. The result of this research work will aid the shareholders to know that their company has what it takes to grow into a big firm through enhanced macro-economic policies.

As the firm grows so also the capital base expands. The shareholders enjoy good returns on the capital they invested in the firm. It also increase the profit of the company thereby making ways for higher dividends to the shareholders. Break through in technology is what keeps a firm viable strong and going.  Getting technical assistance or innovative technical maneuver is one of the importance of research study on a firm as gets the shareholders intimated on the technical ability of the firm. The study will reveal at what capacity the firm is operating that is, if it is at full capacity at which it was intended and if not why?

The research study reveal the need for diversification by the firm especially where a market is saturated and the need for product diversification remains inevitable. The out come of the study will guides the shareholder in their decision making. The research study equally helps the government to know what problems or difficulties that are impeding the firms growth and possible ways of assisting her to come out of the woods. It gives the government some clues on the modus-operand of the firm in question and firms in similar line of business and what government polities are applicable to them. So as to render some assistance so that the atmosphere could be conductive for the firm to compete favorable with its competitors. It also helps the government in determining taxes from the company.

Researchers or research institution see it as a way of contributing to the all solution seeking method of addressing the nasty economic problem prevalent in the country. All completed research work is celebrated because in it lies all the prospects problem and solutions of the organization in focus, if well implemented. The completed research itself now forms a secondary data to other users who may have to recourse to it in future studies in related studies.

1.7              DEFINITION OF TERMS  

The following words and phrases used within the text of this research are defined to reflect the Centex in which they are used to enable the reader ascribe to them their proper meanings in the report.    

-          Product:  is defined as a set of tangible and intangible attributes that leads to customer satisfaction. (Stanton, 1981).

-          Management:  as “the art and science of achieving the objectives of a business in the most efficient way.”

(Denyer, J.C 1976).

-          Market:  is defined as an arena for potential exchanges (Adirika E. O 2001).

-          Marketing: means the social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with other. (Kotler, 1989:12).

-          Planning: is a continuous process that includes situation analysis, specifying objectives and the action required for attaining them. (Boone and Kurtz 1992).

-          Distribution: a route take transferring the title to a product (manufacturing or other wise) from it producer to its last owner, an industrial user or the ultimate consumer (Adirika E.O 2001).

-          Consumer: final user of a product ((Ifezue Alex N. 1990).

-          Customer: a person who does not buy for his own use he may buy for somebody for consumption (Ifezue Alex N. 1990).

-          Brand: a name, term, sign, symbol, or design or a combination of them, intended to identify the goods or service of one seller or group of seller and differentiate them from those of competitors (Adirika E.O 2001).

-          Packaging: as the activities of designing and producing the container or wrapper for a product (Adirika E.O 2001).

-          Labeling: a piece of paper, cloth or plastic on or beside an object and describing his nature, name, owner, destination etc. (Oxford Advanced learner’s dictionary 5^th edition).

-          Selling: as the process of inducing and assisting a prospective buyer to buy or act favourable on an offering, which has problem solving advantages to the buyer and commercial significant to the seller (Edogo R.N 1997).