THE EFFECT OF PHYSICAL DISTRIBUTION ON THE SALES VOLUME OF BEVERAGE IN ENUGU METROPOLIS (A CASE STUDY OF SEVEN-UP BOTTLING COMPANY)
CHAPTER ONE
INTRODUCTION
In any economic system there are always the basic element of production and consumption. In such a business environment physically distributed problem has received an increasing emphasis.
The table of matching the technical excellence of mass production with parallel progress in mass distribution becomes crucial. Consumers and customers cannot enjoy the benefits of mass production without efficient distribution system.
Getting the productions to customers as viewed by management is the concern of other. The distribution activity of the firm is as such a part marketing mix as pricing, promotions and product decision. Indeed some market the impact of the distribution effort upon sales can exceed that of other mix element. The distribution channels provides the link between highly specialized and geographical dispersed produces of goods and the demand of millions of purchasing units seen as the means whereby the products reaches the successful development of the firms distributive effort is the adoption of total systems approach, whereby an integration view is taken of the various activities involved in the distribution effort.
The physical distribution channels structures represent a network of specialized institution that exist for the purpose of physically delivery products assortment to purchase the physical distribution channels consists of institutional arrangement between specialized intermediaries engaged in the fiction for whom in the manufacturer producing. Physical distribution activities have recently received increasing attention from business management including small business other. This is due to the fact that these functions often represent almost half of the marketing cost product. In fact researcher’s indicate that physical distribution cost nationally amend to approximately to percent of the country’s total gross national product (GNP)
These finding have led to many small business to expand this cost cutting effort beyond their historical focus on production to encompass physical distribution activities.
BRIEF HISTORY OF THE COMPANY
Seven-up bottling company is one of the largest manufacturing companies in Nigeria. They produce and distribute the favorite brand of soft drink, Pepsi, Miranda, Seven-up and Mountain Dew.
Their brands are popular and widely consumed across the length bread of Nigeria. Seven-up bottling company has well Coordinated distributed networks over 200 distribution centers. Located across Seven-up bottling company was incorporated in November 1951 as subsidiary of centers group. Their production began in 1953 at a bottling factory in Ebute Metta in Lagos State.
Since production started the company has the largest bottle of non-alcoholic beverage in the country in terms of sales volume with about 1.8 million bottles sold per year, making it the second largest market in Africa.
Physical distribution is a component of distribution which one of the four element of marketing mix without physical distribution the production of an organization cannot get the consumer. This shows the important of physical distribution in the saves of a products.
A lot of money has been spent on physical distribution by some organization, but the effect of physical distribution by some organization, but the effect of physical distribution on sales is still questionable thus, the aim of this study is to ascertain the effect of physical distribution on the sales volume or beverages.
The objective of this study is to fulfill the following
The end product or otherwise the finding of this research work will be useful to different categories of people and organized normally students of marketing and related fields, other researches corporate organizations (especially business institutions) Seven-up bottling company government and the society at large.
In this study the researcher focus his study on the part of the company business portfolio where physical distribution is actually practiced. Hence the researcher narrows the study to cover zones/territories at Ninth Mile, Abakpa, Enugu Ngwo (All within Enugu State). In order to see how the product get to the ultimate consumer and the sales representatives of Seven-up bottling company Enugu State.
INVENTORY MANAGEMENT: Inventory management is one of the major centers of physical distribution. It involves aimed at ensuring maximum customer’s service at minimum cost. It also involve the maintenance and storage of optional cycle and safety stock level in order to ensure a minimum stock out situation.
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