the economy advances, there is a resultant widening of the gap between
producers and consumers, the increase, in output of goods and services
necessitates. The development of channel of distribution they
provide time, place and convenience utility for the goals and services
In the view
of Adirika, Ebue and Nnolim (2001) distribution is demand creation and
satisfaction and both directly and indirectly brings down the total cost of
marketing organization. Apart from producing the goods and services
required by buyers, pricing and promoting them (ie. Informing buyers about
them) marketers have to make these goods and services available to the buyer;
that is, place them at his or her convenience, in order to make them seen or
perceived, admired, accepted and purchased by them.
effective and efficient distribution flow will not only make goods available,
but will also do so at the cheapest possible price to the consumer, at the
lowest possible cost to the consumer, at the lowest possible cost to the
producer or suppliers. Accordingly the distributional strategy and channel
employed greatly influences the economic value of goods, both to the
distributor and to the consumer especially when and if it’s selection is
has the option of selling either directly to the ultimate consumer of it’s
products, or through the use of intermediaries in realizing the same objectives
considering present marketing environment factors such as the location of the
market, the undulating economic conditions within the Nigerian economy as a
whole, together with consumer requirements by way of varieties, quantities and
time of product requirements, most manufacturers prefer reaching their
customers through the use of marketing intermediaries.
to the use of marketing inter-machineries in reaching ultimate, consumption
targets, there are two important end related decision areas having marketing
implications and of relevance to the producer or supplier. The
first is a decision on whether or not the use intermediaries for
distribution. The second which options to be adopt, follows only if
the decision to the first problem called for the use of intermediaries.
the types and nature of the distribution channel options to be adopted, the
action is usually given to such important factors as the cost of the channel to
the user, the efficiency of the channel, the type and nature of the
product. The type of target market to be saved, the size, location,
and purchasing pattern of potential and present customers, availability of
alternative marketing intermediaries. The type of channel options
adopted by competitors and the manufacturers available resources.
bread industry, and considering the nature of the product, choice of
distribution channel becomes a very important marketing decision.
Also in this industry the different marketing utilities of distribution
economy. Market coverage, channel control and adoptation to
changing environments, interplay and influence the choice decision.
Accordingly, the distribution channel and strategy option adopted by any
producer should contribute to the achievement of the overall marketing
objective, and therefore meet the company’s objective and the consumers
retirement in the sale.
It is a
fact that the bread industry has assumed importance in the Enugu State
today. In this state, bread is one of the staple food items
consumed by most people. The demand for brad and it’s frequency of
consumption is high. This high rate of bread consumption in this
state is accounted for by a number of factors.
State, it is usually hot because it is not far from the northern part of the
country there by making people to sweat which brings about hunger which makes
most of the inhabitants of the state to go for solid and strong foods that will
give them strength for instance cold nunards are frequently taken during the
hot period irrespective of the time of the day. And cold drink have
a complementary, demand for bread, which goes to explain the wide acceptability
of the product in the state.
character of the peoples occupation which among the rural
population. Is mainly farming and white colar jobs also contributes
to the high demand for bread. These occupation require long home in
the field as well as food that is light to carry and can be easily and quickly
consumed. In these circumstances, bread comes in very hendy. Among
the light food is ideal for breakfast often reasons for the high demand for
bread can still be mentioned among unmarried people, bread provides substitute
meal where cooking is regarded as very difficult duty. Also, at ceremonies like
birthday, sandwich prepared from bread has become a popular entertainment dint
of the people. As bread has assumed prominence as a food item, so
also has it’s industry’s importance.
because of distributions in making this important stable food (bread) available
that the research examines distribution channel options/strategies for bread
industries in Enugu State.
STATEMENT OF PROBLEM
Discussion with some retailers (vendors and hawkers) of bread in the Enugu
State indicates that supplies of the product are often not delivered on
schedule. Others complain of occasional damage to the product
before arrival at their stores. Still, some are of the opinion that
prices charged them are higher than those charged customer purchasing from the
On further investigation, it was realized that delay, in deliveries could
result in damage to the product considering the perishable nature of
brand. The condition of most read in Enugu is very deplorable where
there are road at all. They are either met properly maintained or
they are completely neglected. These bad roads have consequently reduced
the efficiency of available delivery vehicles since they put them in poor
workings condition and equally increase their maintenance cost.
Among other problem inhibiting distribution effectiveness are such variables as
the area, covered by most producer/companies distribution network which in most
cases is generally large and geographically scattered. Added to
this, the number of delivery vehicles covering these points are meet large
enough to ensure distribution effectiveness. The scheduling and
routing plans of most of the producer/companies distribution processes are
anything but inadequate. In some companies, salesmen combine the
duties of selling with that of delivery and to complicate matters some
companies even surcharge them fro damages and losses.
Investigation also reveal that increase in delivery cost and overhead expenses
including fuel cost, vehicle maintenance and repairs expenses, as well salesmen
allowance, have forced up distribution cost. In some areas major
producers experiences weak or no competition for their products in respect of
quality, taste, bread preference in addition to these, salesmen have been
formed to sell over and above prices fixed by their respective companies
without any approval.
Finding a solution to the above problem becomes the central task of this
OBJECTIVE OF THE STUDY
Base on the
research problems the following hypothesis are formulated:
1) Example and analyse the present distributional
strategies and channel options available to bread industry in Enugu State with
a view to determining the reasons of their inefficiency.
2) Investigate other distributional strategy and
other channel options, that are available for use by the bread industry.
3) Formulate, on the basis of finding most
efficient distributional strategy and channel options for the brad industry in
order to reduce lists, damages and delays of supplies to consumers.
4) Examine the reasons for scarcity of bread
especially during festive period.
5) Critically look at the impact of warehousing
inventory, control customer services on the marketing of bread.
1) Are consumers satisfied with the present
distributional options/strategies employed by the bread industry in Enugu State?
2) Can consumers buy more if alternative
distribution channel options that ensure quick delivery at lowest cost and with
less damage to the product are employed?
3) To what extent are bread available in Enugu
4) Does distribution options/strategies employed in
Enugu State impact positively on customers patronage?
5) Does distribution options/strategies adopted by
bread industries in Enugu State leads to increase in profit of the
SCOPE OF THE STUDY
study concentrated on distributional option/strategy for bread in Enugu,
However in view of time money and other constraints emphases has placed on ten
selected bakeries in Enugu Metropolis. The ten bakeries are:
· Oniachi Food Nigeria Limited.
· Chuis Nwokocha Bakery
· Tea-time Bakery
· Ify Bakery
· Flora Bakery
· Uncle Johes Bakery
· Chibueze Bakery
· Super Joe Bakery
SIGNIFICANCE OF THE STUDY
study is justified by the fact that:-
1) Bread is consumed by most people within the area
of study and the selected organization are major suppliers in their respective
areas. This study will be of help to both consumer and suppliers of
2) An efficient distribution strategies/channel
option for bread would reduce the cost of damage and delayed delivery, and
consequently, the market price to the consumer. It is condemned
that efficient distribution for bread will ensure maximum satisfaction to both
the ultimate consumer on the one hand and the producer/company on the other,
without any party to the transaction being cheated in the process.
3) A reduction in the price of bread will
contribute in no small way to the achievement of the federal military
Governments objective of bringing down to price of essential commodities, and
so help to minimize the consumer’s cost of living.
4) It is also expected that since the companies
selected for study are privately owned small scale indigenous establishments
within the town, the result of the study will equally go a long way to augment
the operational performance of the small scale in particular, and the nation in
general. Above all this study will also be of beneficial to both
the research and the researcher as the study will provide an indept knowledge
and understanding in the area which could stir up further study.
TERMS AND CONDITIONS APPLY
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