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ABSTRACT
The analysis of marketing distribution staregies of some Nigerian
companies with case study of nestle Nigeria plc is the subject matter of
this study.
Some related literature were revived like, distribution
staregies, service need of the target market, how to determine the
target market, how to determine the appropriate channel distribution
objectives determine alternative strategies and determine the
appropriate channel structure.
Nestle Nigeria plc has the staff
population of 500 which include the marketing department, accountancy
department etc, but marketing department is used as the sample consumer
which has the population of 100. The consumer population of nestle is
5000 which was determined by Yaroyamen and had the sample size of 270.
Therefore 370 questionnaires were distributed and 345 were returned.
Data
were presented and interpreted using percentage table and chi-square
were used in testing the hypothesis. Base on the finding it was seen
that Nestle Nigeria Plc observed defects in the current distribution
will enable Nestle Nigeria Plc achieve distribution strategies will
enable Nestle Nigeria Plc achieve better customer serves.
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
There
is this notion that production is incomplete until the products get to
the final consumer. Hence, no matter what firms do on other three
marketing strategies (the three p’s) nothing happens until the goods and
services are distributed.
Distribution is one of the major areas of
marketing mix that concerned with the movement of goods and services
from point of production to the point of consumption.
There are several definitions of distribution by different authors or marketing experts. Thus:
According
to Onuoha J. K. (2004:92) distribution is defined as the flow of title
to goods and services as they move along the channel of distribution
from point of production to the point of consumption. It ensures that
produced goods and services are made available to the consumers in their
most economic manner.
Kotler and Anstrong (2004:419) defined
distribution as the planning, implementing and controlling of the
physical flow of raw materials, final goods and services and related
information from point of origin to point of consumption to meet
customers requirements at a profit.
Goods and services are delivered to the right customers, at the right place, at the right time and at the right price.
Distribution
aims at gathering goods and services to reach the consumers through
intermediaries. It involves not only physical movement and handling of
products, but the transfer of ownership as well.
By the use of intermediaries or channel of distribution, the goods produced will get to the consumers.
The
term channel of distribution is seen as all the institution or
individuals that assist in exchanging goods and services as they move
from one point to the other.
Apart from physical transfer of goods, it entails the transfer of title to products from one point to another.
The
channel of distribution is sequentially arranged in such a way that it
achieves set objectives. Such as producer – consumer – producer –
retailer, consumer etc for consumer goods, while industrial is producer –
industrial user, producer – industrial distributor – industrial user.
This research work deals with the analysis of marketing distribution strategies of some Nigerian companies.
Nestle
food company is a company that was established in Chine in 1990 where
they produce powered milk and infant formula. They manufacture their
products in more than 60 countries of the world.
The manufacturing
system of Nestle safeguards, sustains multifarious source, plant and
planning parameters for the same item generated at various locations.
The manufacturing system preserves to generate a complete picture of
manufacturing operation. This involves monitoring products and element
from raw materials through the finished goods stage.
Nestle food company is located in Lagos where out some of activities or functions.
Nestle
has diversified from the traditional food related products, such as
fairly products, break fast related products, such as fairly products,
breakfast cereals or chocolate and ice cream and nutritional solution as
well as beverages and bottle water.
Nestle, one of the oldest of all
multinationals companies has grown from a two products company focusing
on infant nutrition to one of the largest food companies worldwide.
Nestle
company in other to carryout their activities and operations
effectively and efficiently for the purpose of achieving its objective,
they make use of different distribution strategies in order to ensure
that produced goods and services are made available to its consumers.
The
analysis of distribution strategies it existence in nestle company in
1990 when the company was established and stated its operation. This is
because when the product were produced, the make use of different
distribution strategies such as selective exclusive, and intensive
distribution strategies.
This strategist helps the company to distribute the products to their customers worldwide.
Nestle
food company produces mainly convenience goods such as beverages etc.
since it is producing convince it employ the use of intensive
distribution strategies thereby using all available out let in
distributing their product world wide.
In some conditions nestle food
company go into the production of shopping product and used selective
distribution strategist in distributing its shopping product thereby
making use of one or more outlet but less than unavailable that are
willing to carry their products.
Nestle food company make use of
exclusive distribution strategies occasionally and only when the produce
spatiality product thereby using one or fill number of intermediaries
in the distribution of its product in a defined vicinity the company all
so make use of certain sales promotion such as consumer promotion trade
promotion and sales force promotion which is very essential in the
company sales effort to current and potential customers both in rural
and Urban areas.
This sale promotion is used to generate quick
response to the service provided by the marketers in distributing some
of the companies product services like buy ten cartons of peak milk and
get a free DVD player or buy five plates of ice cream is an example of
alluring sales promotion massage. Although sales promotion is a form of
short term incentive design to generate immediate product purchasing
from the customers, it is expected to push sales above it present
position.
In the selection of distribution channel nestle considers
some certain factors such as market characteristics product
characteristics company characteristics, environmental characteristics,
middle men.
1.2 STATEMENT OF THE PROBLEM
According
to milk muller and war on ant, a London based activist group concerned
with problems of the third world (AKHTER 1994) says that nestle baby
formulae controversy had a publication of a pamphlet called the baby
Killer in 1974. the pamphlet claimed that third world babies where were
dying because their mothers wee feeding them with infant formula that
was been marketed by multinationals such as Nestle of Switzerland and
united kingdom cow and gate. The aftermath of the publication led to
international crises of nestle.
Since the business environment is
very complex in nature the average manufactures is becoming more
conscious and are therefore forced by competitors to be aware of the
increasing prices inadequate distribution planning of the need in
analyzing marketing distribution of an acknowledgement of its prospect
Distribution
system is another problem of nestle food company because the hiring of
trucks and maintenance distribution outlet this gives a lot of concern
to the marketer and formed is required for effectives management. In
most cases distribution personnel have little or no knowledge of
strategies to embark upon at any time and also do not monitor the
circulation of their product in the rural area. As a result this, they
concentrate more in the urban areas not minding they competitive
activities of their rivals.
Poor training of middlemen this is also a
problem to nestle company because when the middlemen are not properly
educated about the product, they can not be able to convince their
customers to buy their products.
1.3 PURPOSE AND OBJECTIVE OF THE STUDY:
The
purpose of this study is to generally analyze the distribution
strategies of nestle food company with a view to identifying defects in
the current distribution strategies and recommending the most
appropriate distribution strategies that would enabled the company
achieve its marketing objective.
The other specific objective are follows:
1) to appraise the current distribution stagiest of nestle food company
2) to identify the defect in the current distribution of nestle Nigerian plc.
3)
To established the relationship between effective distribution
strategies of nestle Nigerian plc and achievement of its marketing
objective
4) To also established how effective distribution strategies will enable nestle achieve better customer services
5) To recommend the appropriate distribution strategies that would enable nestle Nigerian plc achieve its marketing objective
1.4 RESEARCH QUESTION:
The following struck the mind of the researcher while carrying out this research
1) Is there any defect in current distribution strategies of nestle Nigeria plc
2)
Is there any relationship between effective distribution strategies of
nestle Nigeria plc an achievement of its marketing objective
3) How can the appropriate distribution strategies enable Nestle in achieving their marketing objective?
4) How can a effective distribution strategies enable nestle Nigeria plc achieve better customer service.
1.5 HYPOTHESIS:
For the purpose of this research, the following hypothesis will be stated
1. Ho: effective distribution will not enable nestle food
Company achieve better customer service
Hi: effective distribution strategies enable nestle food company achieve distribution
2. Ho: appropriate distribution strategies will enable not
Nestle Food Company in achieving marketing objective.
Hi: appropriate distribution strategies enable nestle food company in achieving marketing objective.
Ho: to identify the defects or otherwise in the current distribution staregies of nestle company.
1.6 SIGNIFICANT OF THE STUDY
These
involve the importance of the study and how the marketing distribution
strategies will improve nestle food company consumers up coming students
etc,
1) this research will help the up coming students as a reference to improve on their topics or students
2) It will improve better customer satisfaction. Through better distribution of the products.
3) it will help the company to effectively distribution their product to their customers nation wide
4) The company will benefit from this research study by achieving increase in sale volume.
5)
Through this research, the competitors will benefit by knowing
distribution strategies which nestle company uses in distribution of
their products
6) It will improve customers services
1.7 SCOPE AND LIMITATION OF THE STUDY
The
geographical area of the study is Nigeria, China, United Kingdom and
Switzerland etc. But my main focus is in Nigeria. Lagos state has
undisputed number of distribution through which these products gets o
the end uses.
The study is limited to nestle Food Company a major
food processing company in the country. The level of participating
workers in these studies the management level, senior mangers, and some
selected segment of distribution staff.
Nestle Food Company that is
located at Lagos state with seal branches makes sure that their
marketers carry out several distribution strategies to enable the nature
of their business to flourish by reaching out several individuals.
Although the scope and limitation of these study is based on the Nestle food company both in Lagos state and port Harcourt city.
It
is essential to note that time and money are the greatest constrain of
these study. Consequently to the limitation of time and funds, the
information for these studies was mainly obtained from the internet and
textbooks.
1.8 DEFINITION OF TERMS
Some of the terminology used in the chapter is been defined bellows:
ANALYZE: These is defines as examining the nature or structure of something.
ASSESS: Is to make a judgment about the nature or quantity of a product.
COMPLEX: is made up of many difficult things or parts that are connected: difficult to understands.
CONSUMER
PROMOTION: it is defined as promotion activities that are directed
towards the consumers or households in he form of premiums offer in pack
on pack and near, control money refund offer coupons.
DISTRIBUTION:
it represents the flow of title goods and service as they move along the
channel of distribution from point of production to point of
consumption.
MARKETING: is defined as the human activity directed at satisfying needs and wants of consumers through exchange process.
RESEARCH: is a careful study of a subject in other to discover new facts or information about the subject.
STRATEGY: is a plan that is intended to achieve a particular purpose.
SALES PROMOTION: it is a form of short term incentive designed to generate immediate product purchase from he consumers.
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