Physical Distribution
Physical Distribution
Physical Distribution
INTRODUCTION
1.1
major elements of the total cost and any inefficiency at this level is likely to
make the product uncompetitive as the cost of distribution will finally
reflect in the unit price of the product.
1.2
1.3
1.4
1.5
raw materials to obtain and the indecencies involved in moving both raw
materials and finished goods from one place to another. Capitalizing in the
scarcity of goods due mainly middlemen have restore to hoarding such
items, even in areas where they are available, instead of distributing them as
required with intention of marking more perfects. The effort therefore is to
suggest ways of arresting the problems with the country is facing due to
inefficient and insufficient physical distribution system.
1.6
1.7
STATEMENT OF HYPOTHESIS
Ho: That effective distribution does not enhance significantly an
organizations marketing of goods and service.
H1: That effective distribution enhance significantly an organizations
marketing of goods and service.
1.8
DEFINITION OF TERM
Certain terms used in the study need to be defined to avoid difficulties and
enhanced better understanding. Such terms includes:
DISTRIBUTION: Is an important element of providing satisfaction in the
market place. Distribution involves the physical movement of product to
ultimate consumer.
PHYSICAL DISTRIBUTION: Physical distribution involves planning
implementing and controlling the physical flow of materials and furnished
goods from point of origin or production to point of use to meet the needs
of consumer at a profit.
CHANNEL OF DISTRIBUTION: This refers to the medium/channel use in
the transfer of goods from producer to consumer. The channel refers to the
system of marketing. It involves all the intermediaries thus perform the
function, the serve to put the product into the hand of consumers.
CUSTOMER: the customer represent the peoples that buy goods from the
producer whether for industrial use or for final consumption while.
CONSUMER: is the final user of the product.
NEEDS: this refers to the necessary things consumers can not do without
e.g. toothpaste, cloth etc.
WANTS: Are as a result of positive charges incomes thus consumer will no
necessarily buy what he need but what in want.
END NOTES
Amarchand, Detail: (1979):
CHAPTER TWO
LITERATURE REVIEW
2.0
INTRODUCTION
This chapter will review comments, statement and opinions made mainly by
previous person or groups of persons as contain in books, newspaper and
magazines and journals having direct bearing on the topic of this thesis.
2.1
WHAT IS MARKETING
The institute of marketing, define marketing as the creative management of
resources which promote trade and employment of assessing consumer
needs and initiating research and development to meet them. Considering
the word marketing from the logical aspect of life, we can depict clearly
that, marketing principles and activities have helped greatly in the
development and advancement of world economy. The course try to
practically establish an harmonious relationship between two important
component of the world which is people (human beings) and its
environment. Marketers operate in a complex environment which require
proper understanding and analysis for effective control, planning and
implementation that will commensurate with the consumers needs and
want. Hence providing profitable satisfaction which serves as the
paramount aim of marketing.
9
DEFINITIONS
According to Kotler and Armstrong (2015): Marketing is a social and
managerial process by which individuals and organization obtain what they
need and want through creating and exchanging value with others.
10
WHAT IS DISTRIBUTION
Distribution refers to a set of interdependent organization that help make a
product or services available for use or consumption by the consumer or
business user. Distribution which is also known as marketing channel assist
in companys value delivery network. A companys channel decision
directly affect every other marketing decisions.
Companies often pay too little attention to their distribution channels,
sometimes with damaging results, in contrast, many companies have used
imaginative distribution systems to gain a competitive advantages.
Distribution is important to marketers as it helps in concluding the process
of production, which is achieved by getting the right set of products to the
right place at the right time. It importance is reflected in the fact that
11
2.3
management
process,
which
encompasses
planning,
transportation,
warehousing,
communication,
inventory
15
16
2.4
a.
AVAILABILITY
The most basic objective of physical distribution is to ensure that
suppliers met customers demand in order to maintain and establish
good customer relationship that has a long run effect. To achieve this,
most companies employ the services of marketing intermediaries i.e.
middlemen to perform the task of effective movement of goods and
services from the producer to the end users.
b.
CHANNEL MANAGEMENT
During distribution process, managers must implement and manage
the chosen channel. This call for selecting, managing and motivating
individual channel members and evaluating their performance
overtime. They are linked together through the exchange process in
order to cerate time and pace utilities to meet its goal. Channel
17
18
2.5
it help in bridging the major time, place and possession gaps that
separate goods and services from those who would use them.
ii.
iii.
iv.
v.
vi.
2.6
CHANNEL STRUCTURE
As the product move from producer to ultimate consumers, various
exchange transaction take place in the process, a number of tangible and
intangible items are passed from one channel members to the next. The
channel structure shows the kind of participants involved in the production,
distribution and ultimate use of the product, it shows the nature of the
linkages connecting the producer, the middlemen and consumers. A
producer can distribute his product through a variety of channels.
Producer
Producer
Producer
Producer
Producer
Agent
Agent
Wholesaler
Consumers
Wholesaler
Retailer
Retailer
Retailer
Retailer
Consumers
Consumers
Consumers
Consumers
B)
21
them because it help them reduce the cost of inventory. Some producer also
have their own retailer store e.g. coca-cola Nigeria plc.
C)
D)
22
23
2.8
25
TRANSPORTATION
Transportation involves the physical movement of goods from the end of
production to the market. It is a necessary and important marketing activity
because it address time and place utility to a product by moving it from
where it is made to where it is purchased and used. The choices of
transportation carriers affect the pricing of product, delivery performance ad
condition of the goods when they arrive, all of which affect customer
satisfaction. In shipping goods to its warehouses, dealers and customers, the
company can choose among four main transportation modes each with
distinct cost and service characteristics such as capability, capacity,
dependability, reliability and damage accessibility are issues that should be
taken into consideration.
RAIL ROADS
Rail rods usually carry heavy, bulky items over fairly long distance. Their
predominant charges been coal, farm and forest product. They can carry
items that wont fit in trucks or that exceed highway weight limits and their
routes are more extension than those of water carrier or air carrier.
ROAD CARRIER (TRUCKS)
26
A lot of shippers are increasingly using motor trucks, motor truck account
for the largest portion of intercity transportation, trucks are an efficient
mode of transportation, they are often faster than rail especially for short
distance but are sensitive to interrupting bad weather. Trucks are highly
flexible in their routing and time schedule.
AIR CARRIERS
Air carriers transport less goods than any of the transportation modes. They
are an important transportation mode. Air freight rates are much higher than
rail and trucks rates, but air freight is idea when speed is needed or distant
market have to be reached. Among the most frequently airfreight products
are perishables (fresh fish, cut flowers) and high value, low bulk items
(technical instrument, jewelry). Companies find that air freight also reduces
inventory levels, packaging costs and number of warehouses needed.
WATER CARRIERS
A substantial among of goods are moved by ships, largely on coastal and
inland waterways. Although the cost of water transportation is very low for
shipping bulky, low value, non-perishable products such as sand, coal,
grain, oil and metallic ores. Water transportation is the slowest mode and
may be affected by the weather.
INVENTORY
27
b)
c)
d)
Marshaling shipment
e)
29
REFERENCES
A.B AKPAN (2003): Introduction to marketing 1st edition, published by
Isola Ola and sons, Zaria.
A.B Akpan (2005): Marketing strategy concepts and application, 2nd edition.
Published by; Isola Ola and Sons, Zaria.
A.K Arowomole, C.A Ademola (2000): Theory and practice of modern
marketing. Published by; Sodipe Nig. Ltd. Mushin, Lagos State.
Ayuba Bello (2003): Marketing principles and management: Shukrah
Kaduna 2nd edition.
J.U Anyaele (2002): Comprehensive economics for senior secondary
schools, glance series, A. Johnson publishers Ltd.
Osuagwu (2002): Marketing principles and Management 2nd
edition.
M.O Sanusi (2003): Fundamentals of modern marketing publishing:
Hamby trends Nig. Ltd. Offa, Kwara State.
N.G Nwokoye (2003): Modern marketing for Nigeria principle and
practice. 2nd edition, Africana best publisher Ltd.
P. Kotler and G. Armstrong (2015): Principles and Marketing 13th
edition, Pearson prentice hall.
30
31
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.0
INTRODUCTION
This chapter deals mainly with the various data collection, procedures and
statistics to the research. Other area looked into the sources of data,
population of the study, sample size, research instruments, questionnaire
design and collection.
3.1
was
through
interview,
observation
and
administering
32
3.2
RESEARCH INSTRUMENTS
The researcher had used various instrument in his attempts to gather
relevant data to the scope of the study and the limitation posed by the
process of data collection questionnaire tends to serve as the more creative
instrument in this research. The researcher, however, did not undermine the
significant application of interviewing and survey which he put into use
effectively.
3.3
QUESTIONNAIRE DESIGN
The researcher designed a questionnaire in designing the questionnaire used
in this study, the researcher applied the use of closed form of questionnaire
for the purpose of simplicity and conciseness the researcher restricted the
questionnaire in this study to areas of question when
-
3.4
SAMPLE SIZE
Sample size involves taking part of the population for study in order to
drew conclusion in the entire population. This sampling techniques used for
the purpose of this project is random sampling, where every staff has an
equal chance of being chosen.
3.5
34
END NOTE
John A. Eze, V.A Onodugo (2002)Business Policy and strategic
management 1st Edition. (new York prentice Hall)
Philip
Kotler
(1998):
Marketing
management
analysis
35
planning
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.0
INTRODUCTION
In order to uphold some of the hypothesis already done in chapter one (1).
This chapter is devoted for the presentation and analysis of this project
work is based on the data collected from the field through primary source of
data collection, which involve the use of questionnaire. In conducting the
study, questionnaire were distributed to the sample population.
4.1
INTERPRETATION OF DATA
36
Percentage
22.2%
33.3%
28.9%
15.6%
100%
RESEARCH QUESTION
Sex of respondent
Table (2)
Options
No. of respondents
Male
25
Female
20
Total
45
Source: Survey data 2015
Percentage
55.6%
44.4%
100%
RESEARCH QUESTION
Marital status
Table 3
Option
Single
Married
No. of respondents
19
26
Total
Source: Survey data 2015
45
Percentage
42.22%
57.78%
100%
The table above shows that 42.22% (10) of the respondent are Single
57.78% (26) of the respondent are Maried.
RESEARCH QUESTION
Highest educational qualification.
37
Table 4
Option
No. of respondents
WASC/ SSCE
2
ND
8
HND
10
BSE
15
MBA
7
Others
3
Total
45
Source: Survey data 2015
Percentage
5%
18%
22%
32%
12%
7%
100%
RESEARCH QUESTION
Years of job experience.
Table 5
Options
No. of respondents
Below 10
15
10-20
15
20 above
15
Total
45
Source: Survey data 2015
Percentage
33.3%
33.34
33.4
100%
The table above shows that 33.34% (15) of the respondent said mode of
said below 10 years, and 33.34% (15) of the respondent said mode of said
10-20years, while 33.33% (15) have worked for 20 years and above.
38
RESEARCH QUESTION
Cadre in the company.
Table 6
Options
Top Management
Middle management
Lower management
No. of respondents
8
12
25
Total
Source: Survey data 2015
45
Percentage
17.8%
26.7%
55.5%
100%
The table above shows that 17.8% (8) of the respondent said Top
Management, 26.7% (12) said middle management, 55.5% (25) Said lower
management.
39
RESEARCH QUESTION
Despondences responses on The distribution method the firm should use
more
Table 7
Options
Distribution through depots
|Distribution through
No. of respondents
36
9
resellers
Total
Source: Survey data 2015
45
Percentage
80%
20%
100%
The table above shows clearly that 80% (36) of the respondents said
Distribution through depots, while 20% (9) of the respondent said
Distribution through resellers.
RESEARCH QUESTION
40
Table 8
Options
No. of respondents
Positively
36
Negatively
9
Total
45
Source: Survey data 2015
Percentage
80%
20%
100%
The table above show clearly that 80% (36) of the respondents said
positively, while 20% (9) of the respondent said negatively
RESEARCH QUESTION
The present sales in greater than the past sales?
Table 9
Options
No. of respondents
Yes
36
No
9
Total
45
Source: Survey data 2015
41
Percentage
80%
20%
100%
The table above show clearly that 80% (36) of the respondents said their sale
increase compare to the past sales, while 20% (9) of the respondent said
their sale not increase in the recent year.
RESEARCH QUESTION
Responses to the relationship between intermediaries and company sales
forces?
Table 10
Options
No. of respondents
Very good
18
Good
15
Cordial
12
Fair
Total
45
Source: Survey data 2015
Percentage
40%
33.3%
26.7%
100%
The above table shows that 40% (18) of the respondents said they are
having very good relationship with the company sale force, 33.3% (15) said
the relationship is good, while 26.7% (12) said the relationship that they an
having cordial relationship with the company sales forces.
RESEARCH QUESTION
42
Percentage
35.6%
48.8%
15.6%
100%
The table above shows that 35.6% (16) of the respondents, said coca-cola
product is very good compare to competitors, 48.8% (27) said their product
is good compare to competitors while 15.6% (7) said coca-cola product in
fair compare to other competitors.
RESEARCH QUESTION
Respondents responses on How the Price of the product farced in the
market
Table (12)
Options
Quite competitive
No. of respondents
12
43
Percentage
26.&
Just competitive
At per with others
Undecided
Total
Source: Survey data 2015
27
4
2
45
60%
8.9%
4.4%
100%
The above table shows that 26.7% (12) of the respondents said Quite
competitive, 60% (27) said Just competitive 8.4% (4) said they at per with
others, while 4.4 (2) an undecided.
RESEARCH QUESTION
Respondents Responses on how the company should improve on its
distribution.
Table (13)
Options
No. of respondents
44
Percentage
7
18
15.6%
40%
9
11
45
20%
24.4%
100%
The table above shows that15.6% (7) of the respondent said the Open more
sale deports 40% (18) said Increase numbers of major distributors, 20% (9)
said Increase the first size, while 24.4% (11) said undecided.
RESEARCH QUESTION
Respondents responses on the way effective distribution enhance
marketing of goods and services
Table (14)
Options
No. of respondents
Quiet significantly
36
Significantly
9
Total
45
Source: Survey data 2015
Percentage
80%
20%
100%
The table above shows clearly that 80% (36) of the respondents said Quiet
significantly, while 20% (9) of the respondent said significantly.
45
RESEARCH QUESTION
Effective distribution does not enhance significantly an organizations marketing of
goods and service
Table 15
Opinion
Top
Middle
management management
Yes
13
7
No
7
5
Total
20
12
Source: Survey data 2015
4.2
Lower
Total
management
10
3
13
30
15
45
TEST OF HYPOTHESIS
With proper understanding and careful analysis of the previous researcher
test of hypothesis and facts put together by the researcher to make the study
more clear. The question are laid into hypothesis, as can be seen in chapter
one (1).
In testing hypothesis, the researcher assumed 5% (0.05) level of
significance and chi-square distribution used as test statistics.
HYPOTHESIS
46
Top
Middle
management management
Yes
13
7
No
7
5
Total
20
12
Source: Survey data 2015
Lower
Total
management
10
3
13
30
15
45
X2 = (O e)2
e
Where:
X2 = chi-square
= summation sign
O = observed frequency
e = expected frequency
Expected frequency = row total x column total
Grand total
For Yes row
X2 = 30 x 20
47
45
13.33
3.67
X2 = 15 x 20
45
6.67
X2 = 15 x 13
45
4.33
X2 = 30 x 13
45
For No row
X2
15 x 13
45
CONTINGENCY TABLE
Opinion
Yes
No
Top management
13(13.33)
7(6.67)
Source: Survey data 2015
Middle
Lower
management
7(8)
5(4)
management
10(8.67)
3(4.33)
= 0.081
X2 = (7 8)2
48
= 0.125
(10 8.67)2
8.67
(5 4)2
4
= 0.204
= 0.25
(3 4.33)2
4.33
= 0.408
X2 = 2.39
Degree of freedom:
(r 1) (C 1)
r = No. of rows
C = No. of columns
D.F = (3 1) (2 1)
D.F = (2) (1)
D.F = 2
DECISION RULE
Since the calculated value of X2 is 2.39 which is greater than critical value
of 5.99, we reject the null hypothesis (Ho) at 95% confidence and accept
49
the alternative hypothesis (Hi) and then conclude that; physical distribution
increase an organization market share.
4.3
RESEARCH FINDINGS
Having analyzed the data and tested the hypothesis the following findings
were made.
a.
b.
c.
d.
There is clear indication that the relationship between the sales force
and middlemen is very cordial.
e.
It has also indicate in the analysis that coca-cola plc, uses marketing
intermediaries in distributing their product.
f.
Customers are satisfied with the price of the coca-cola plc product.
50
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.0
SUMMARY
Business organization comes in different nature. Whatever the native, form
or size their most important task is satisfying the wants and needs of
customers. The entity must at all times try to identify the wants, needs and
interest of the target market and their determining ways and means of
satisfying them to yield benefit to both the customer and the organization.
This project work was written is chapters. There are five chapters in all,
chapter one dwelled on the background and nature of physical distribution
and market share, it also include statement of the problem, the objectives of
the study, others areas discussed in this chapter includes; scope and
limitation of the study, significance of the study and statement of
hypothesis.
Chapter two deals with literature review, which review comments,
statement and opinions made by previous person or groups as contain in
books, journals, article etc.
Chapter three highlighted the research methodology viz-a-viz population
and sample size, method of data collection, method of data analysis.
51
Chapter four deals with data presentation and analysis, finally in chapter
five, the entire research work are summarized, findings of the research are
stated and recommendation are made.
5.1
CONCLUSION
Throughout this study, physical distribution and market share has been seen
as a major component in increasing and lifting organization to the next level
in the market place. The aim of physical distribution is gathering the right
goods to the right place at the right time for the least cost. Goods have to be
moved from place of origin to the place of use or consumption. The
appropriate channel of distribution used either for consumer or industrial
goods are carefully chosen so that goods reach their destination on time and
free of damage and we have seen this example with coca-cola plc, which is
our case study.
Based on the literature review, data presentation and analysis and the
researcher personal observation, the following are the conclusion of the
study.
Physical distribution has a temporary effect in sales volume in coca-cola plc
or soft drink industry.
Physical distribution increase sales volume.
52
5.2
RECOMMENDATIONS
As in the case with small or developing countries today, their major
problems is insufficient and inefficient planning, organizing and
management of physical distribution activities. Based on the finding of the
research, the following recommendation are made.
The management of the coca-cola plc should invest resources in physical
distribution activities as the case will increase the sales volume of the
company thereby meeting the company objective of increasing market
share.
The company (coca-cola plc) should engage in social responsibilities or
provide some infrastructural facilities, this will give the consumer of the
product a sense of belonging thereby patronizing the coca-cola product
more.
53
54
BIBLIOGRAPHY
A.B Akpan (2003): Introduction to marketing 1st edition, published by
Isola Ola and sons, Zaria.
A.B Akpan (2003): Marketing strategy concepts and application 2nd
edition, published by Isola Ola and sons, Zaria.
A.K Arowole, E.A Ademola (2000): Theory and practice of modern
marketing 1st edition, Sodipe publisher Nig. Ltd. Lagos.
Ayuba Bello (2003): Marketing principles and management, 2nd
edition, Shukrah Kaduna.
E.O Oni, L.O Adedeji (2006): Research methodology in the social and
management science 1st edition, Adlek printer Iree, Osun State
J.U Anyaele (2002): Comprehensive economics for senior secondary
schools, Glance series. A Johnson publishers Ltd.
Luis Osuagwu (2002): Marketing principles and management, 2nd
edition.
M.O Sanusi (2003): Fundamentals of modern marketing 1st edition,
Hamby trends publisher Nig. Ltd. Offa, Kwara State.
N.G Nwokoye (2003): Modern marketing for Nigeria principles and
practice, 2nd edition, African best publisher Ltd.
55
56
APPENDIX A
Department of Marketing,
Federal Polytechnic,
P.M.B 001, Nasarawa
Nasarawa State
July 10, 2015
Dear Sir/Madam
This questionnaire is designed to find out the essence of physical distribution in
extension of market share (a case study of coca-cola plc Kaduna). It is purely an
academic exercise in partial fulfillment for the award of national diploma in
marketing from the federal polytechnic Nasarawa. The data will be used for the
purpose of research towards the advancement of knowledge.
Yours faithfully
MUSA ABDULRAHMAN
57
APPENDIX B
Please tick ( ) as responses to questions except where title comment might be
necessary.
1. Age of respondent (in years)
a. 20 29
b. 30 39
c. 40 49
d. 50 and above
a. Male
b. Female
a. single
b. married
2. Sex of respondents
3. marital status
f.
a. WASC/SSSC
b. ND
c. HND
d. BSC
e. MBA
Other
]
58
b. 10-20 years
c. 20years above
a. Top management
b. Middle management
c. Lower management
7. which distribution method do you think the firm should use more?
a. distribution through deport
b. Negatively
59
b. No
10.
a. Very good
b. Good
c. Cordial
d. Fair
11.
a. Very good
b. Good
c. Fair
d. Poor
12.
a. Quite competitive [
b. Just competitive
13.
60
d. Undecided
14.
a. Quite significantly
b. insignificantly
61