This term paper is about physical distribution or logistics is concerned with
the efficient movement of raw materials from suppliers, that is finished goods
from the end of the production line to the customers, in order words channel of
Physical distribution system is design by the producers to set customer service
standard. A distribution channel is typically a condition of independent
business entities that co-operates for mutual benefits.
The research of these work is generally aimed to identify problems that mighty
be peculiar to various areas of physical distribution and how best to tackle
these problems and make a success in business operation as well as making
sufficient and effective contribution to the country’s economy and industrial
TABLE OF CONTENTS
General background to the subject matter
Problems associated with the subject matter
Problem(s) that the study will be concerned with
The Importance of Studying the area
Definition of important
Chapter reference (using APA method)
The origin of the subject
Schools of thought within the subject
The school of thought relevant to the problem of study
Different methods of studying the problem
Data presentation (Highlighting of the study)
Physical distribution or logistics is concerned with the efficient movement of
raw materials from suppliers that is finished goods from the end of the
production line to the customers. In order words channel of distribution.
A number of associated activities must be performed, these are grouped under
four main categories, warehousing and communication.
The starting point in the design of physical distribution system by the
producers is to set consumer service standard. This has a number of dimensions
and the most important of all is time it takes to get the merechandise to the
customers it happens that what lead to cost reduction in another area e.g.
inventory. An appropriate strategy in logistics design, therefore is to arrange
all the required activities so as to minimize total cost of providing a desired
level of customer service.
However, since the major test of physical distribution is to make goods
physical available to ultimate consumers. It helps to bridge the gap of space
and time between production and consumption. Distribution can be viewed as a
strategic managerial tool since it is one component of the forms. Marketing mix
and all the decision of channels distribution selection and so on are made to
be consistent with the other aspects of the marketing programme for production.
For instance a high quality, high priced product may be selectively distributed
through a limited number of outlets.
It is vital to understand that for physical distribution to be efficient and
effective that distribution channels are established to ensure its success.
GENERAL BACKGROUND TO THE SUBJECT MATTER
A distribution channels is typically a condition of independent business
entities that cooperate for mutual benefits. They include wholesalers, agents,
retailers distribution who contributes in so many ways within the channel to
assist the manufactures in ensuring that the goods gets to their consumers as
and when due. They also assist them in disseminating important information to
their customers and got feed back to the firm, gives financial assistance, help
in the packaging and breaking of bulk goods for supply to consumers.
The neglect, stick of responsibilities, non-challent attitude to customers,
self centredness in addition to the inadequacies of marketing system of
developing economics are most gearing in a society like Nigeria and this
results in distribution bottlenecks. Due to insufficient storage facilities and
inappropriate storage methods, spoilage and waste of products tend to be
warehouses are for and for between material handing equipment is very
unsophisticated, with the exception of, perhaps of which is available in
the warehouses at the seaports. Specialized storage structures like large
storage tanks for petroleum products or silos for grains are either to few or
Modern communication networks are often too small to scope to make any real
impact on business transaction sometimes the postal system works well at other
times it may be grossly insufficient, the telephone service tends to be
confirmed to the urban centers, the lines are too far and the quality of
service offered is poor.
The above inadequacies merely indicate that marketing system of a developed,
reflecting the general development in the physical distribution sector has to
be unliked to or more in pari-passu with developments in the allied sector of
The most important point or rather a lamentation is that development planners
can offer engineer rapid increase of commodity suppliers in the economy, such
as massive importation or by a big push in agricultural production and
distribution of essential commodities and locally produced goods without
planning for any prior investment in the logistics system headen for effective
distribution of the stock. The result is confusion.
The research work is generally aimed to identify these problems and some others
that might be peculiar to their various areas of physical – distribution and
how best to tackle these problems and make a success in their business operations
as well as making sufficient and effective-contribution to the country’s
economy and industrial development.
The marketing and distribution of soft drinks started in Nigeria with
Coca-cola, Mirnda and others being more popular than few others. The ownership
of the manufacturing firms we foreigners, but they were able to make their
product available to other parts of the country even though the plant was
situated in Lagos the consumption were reasonably not high as it is today due
to the level of our economy and spendable income of the majority of our people
then. However all the end of civil war, pepsi, coke, gave to only coca-cola
assorted brands such as sprite, fanta lemon, tonic and others also the east
central state established the unity soft drinks at Onitsha the A.G. Leventis
also built a branch at 9th Mile
Corner Enugu producing coca-cola, fanta lemon, and others. They were followed
by others. For the purpose of their study coke, soft drink is manufactured and
bottled by Nigeria bottling company Plc at 9th mile
corner Ngwo-Enugu known as Enugu plant.
The Nigeria bottling company manufacturers of coca-cola drinks had brands such
as coke, fanta, sprite, lemon and host of others. The coca-cola products and
its brands are distributed through so many outlets. The major channel of
distributing the products in Enugu State are diagrammatically show below.
Distributors wholesale Route Orders
It could be observed that there are at times when the production is halted with
the reason that the raw materials is not available and therefore no production.
The cause of this may not be far from poor forecasting and unrealisitic
economic order quantity. Unfair base stock and insufficient safety stock to
take care of their set customer services.
There is always much delays in the depots and factory plants allocating goods
to the distributors and yet there are supposed to be distribution centers
privately owned or public to enhance and facilitate the easy flow and
distribution of coca-cola drinks to meet u with the set delivery time.
A good communication system is needed for effective co-ordination of logistics
activities and other activity centers. Inventory, transportation, and
warehousing, the information system requires that present stock level at each
storage location should be known future commitments for supply to customers and
sources of inventory replenishment be known.
The Nigeria bottling company are distributed through the following channel
members as shown in the diagram overhead. They include manufacturers
distributors, wholesalers, route carders and retailers who then sell to the
The research is aimed to investigate the activities of these distributors and
other channels members in the distribution of the Nigeria bottling company in
Enugu State. The research is going on to identify such marketing problem of
physical distribution on coke in Enugu State as it concerns the manufacturers,
distributors and retailers, since all these people are involved in the physical
distribution of coca-cola drink with a view to make useful suggestions and
recommendation based on the finding of researcher.
PROBLEMS ASSOCIATED WITH THE SUBJECT MATTER
The diagrammatic nature of the nature of the channel of distribution network
may be seen as being smooth and hitch free and the sales supervisor of the
industry will not easily accept that there is distributors problems since
Nigeria is sellers market but one witnessed that many a times the distributors
and other member of the channels wait for hours to collect their own allocation
instead of the goods being delivered to them. This is due to insufficient
lorries to evacuate these goods for deliver to their respective customers.
Sometimes the distributors wait all day long without having their allocating
made available to them either due to insufficient goods at the warehouse or
plant. The problems stated above cause delays in delivery of the products to
their required channels. It always results to price increase. Inspite of the
above transport system and delays in supply a lot of some stock that is
been stored service for this emergency period and who one witness has proved
that there is increase in the prices of the brand available.
One can observe there are times when production is halted. The reason is that
the raw material and chemical that is been ordered has not arrived, it results
to no production. Additionally, transportation companies are regularly needed
to bridge the gap between the sellers and buyers. The need for information
exchange among the three parties is obvious.
The distributor, retailers and sellers, people and field sales supervisors
suppose to have adequate flow of information to improve and facilitate
distribution of coca-cola. In view of the above, the research is aimed at
studying the marketing problem of physical distribution of coca-cola in Enugu
State with the aim of identifying problem and marketing recommendation based on
PROBLEMS THAT THE STUDY WILL BE CONCEIVED WITH
The research is aimed at identify the problems of physical distributions of
coca-cola drink in Enugu State with a view to make useful suggestions of
solving such problems based on the researchers findings.
The research will examine critically how these physical distribution problems
of coca-cola drinks and inadequate infrastructures contributes in the usual
scarcity of coca-cola drinks in Enugu State which is supposed to be its major
market area in the country. Coca-cola drink plant located in Enugu State
product in most cases is out of stock or yet to be supplied to most shops and
retail instructions in Enugu State apart from its acceptability to the
consumers due to its high quality and low priced nature.
The researcher also intends to study the standing arrangements by the Nigeria
Bottling Company Plc to meet emergencies like strike, plant breakdown, late
arrival or delivery of ordered raw material and other components.
The level of performance of the middlemen will also be studied since these
groups helps finally to make the goods available to the ultimate consumers. The
degree of the plan of the marketing concept will be amongst the channel
participant will be examined, the researcher also intends to find out the
communication system used by NBC to disseminate information to suppliers,
distribution sales people and public at large since effective information flow
is highly needed in the physical distribution network.
The material handling equipment will be examined. Observed and its operation
and location in the plant, depot, warehouse also observed and assessed.
The efficiency and effectiveness of the material handling equipment of
coca-cola in the plant, depot, distributors warehouse will be observed.
THE IMPORTANCE OF STUDYING THE AREA
The study will help the Nigeria Bottling Company Plc to know the various
problems existing in the physical distribution marketing area. This will be as
a result of the finding of this research work and possible suggestions will be
available to them in solving the problem, the activities of the distributors,
agents retailers and other members of the channels of distribution will be
examined and whether many arise as conflicts amongst them will be identified
with necessary recommendations to solve the conflicts the area where the
distributors and other channel members should improve and vigorously supervised
will be made known if more methods should be adopted the organization will be
informed adequately with reasons. The need for customer service and high
practice of business concept will be emphasized as well as the causes of
scarcity of their product due to physical distribution problems as well identified.
To establish the importance of effective communication network in the
distribution area of their business system and the organization as a whole for
promptness of other fulfillment and delivery its importance to the organization
image and to public at large.
To enlighten the very many who engages or intends to go into physical
distribution business but lacks the necessary equipment, skilled labour and
managerial ability the right steps to take for the survival and progress of the
business in our growing economy and how best to stand the challenge of the
To make the government realize where they are failing in the provision of
essential infrastructure and amenities for the effective contribution to the
much needed industrial development and progress of nation.
The research will enable our numerous businessmen and women who are involved in
distributive business to see it as a way to improve their existing business to
understand and be equipped with necessary information that will help them
succeed. To ascertain the various methods used by coke to take care of
emergency periods in demand for their products and how their salesmen are
selected, motivated and supervised.
DEFINITION OF IMPORTANT TERMS
is the efficient movement of raw materials from suppliers to the consumers.
are the people with their distributors cards. They buys directly from the
C. RESEARCH: The gathering of information
necessary for planning and facilitating.
D. PROMOTION: The development and disseminations
persuasive communication about offer.
E. CONTACT: The searching out and communication
with prospective buyers.
F. MATCHING: The shopping and fitting of the
offer to the buyers requirements, includes such activities as manufacturing,
grading assembling and packaging.
G. FINANCING: The acquisition and dispersal of
fund to cover the cost of the channel work.
TERMS AND CONDITIONS APPLY
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