CHAPTER ONE

1.1       BACKGROUND OF THE STUDY

In today’s business and marketing environment, a lot of problems are inherent, and distribution bottlenecks receive increasing emphasis. The task of matching the technical excellence of mass production with parallel progress in mass distribution becomes crucial, as any confronting management customers cannot enjoy the benefits of mass production without an efficient distribution system.

The economic success of any product is not guaranteed simply because a producer made good products for which there is a need. According to David J. Schwartz (1991) “unless the good product can be moved to the consumer at a price that makes it reasonably competitive with other products it will not find a market”. This notable assertion goes ahead to explain why the marketing implication of the activities of the roof sheet industry in this country has become important of late. Roofing sheet companies in Nigeria have over the years identified unsatisfied need in the area of provision of roofing sheets to cover ‘houses tops’. There is need therefore to position these roofing sheets materials in strategic places where consumers can reach them at the right time and price

.Building construction takes a central place in the geographical study of both rural and urban areas, therefore its physical existence is essential. Everyone requires shelter, roofing over ones head and these calls for the erection of a house which is a permanent place of abode where one spend greater part of ones time. Shelter provides one of the basic physiological needs of man; its importance is reflected in the social, political and cultural lives of people who live under it. This makes the building industry very significant in the development of the economy infrastructurally. Roofing sheets such as

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flat sheets, corrugated sheets, roofing tiles/ceiling boards and decorative ceilings form an integral part of the requirements that enhance infrastructure development in Nigeria. East Chase Limited Enugu, is of the distinct roofing sheet companies in Nigeria that have identified the basic needs of construction firms and have over the years tried their best to meet the demands of their teeming customers. The company produce various quantities and quality of roofing sheets, sold to customers at various locations in the country.

It has however, bee observed that physical distribution which the nerve centre of marketing has been an area of setback in the marketing of these aluminum roofing sheet products.

East Chase Limited 9th Mile have been selected for this study because of their efficient physical distribution. Roofing sheets produced by the companies include:

a.                  Flat sheets

b.                  Corrugated sheets

c.                   Roofing tiles/ceiling boards

d.                  Decorative ceilings

e.                   Flower vases.

Efficient distribution of roofing sheets and their accessories calls for an efficient transportation/delivery system as a lot of care has to be taken for these fragile roofing sheets not to be damaged before reaching their various markets centre. This therefore calls for the accomplishment of business activities concerned with transportation, storage, warehousing and inventory handling processes. These activities need to be performed in order to achieve optimum system cost, consistent with customer’s satisfaction. Transportation is therefore the pivot for the successful operation of any physical

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distribution system. The choice and type of transportation therefore becomes of paramount importance since the objective is to make products available as and when needed by consumers.

1.2       STATEMENT OF PROBLEM

One of the problems in the total production process and cost is how to make the products of a company available to the customers at the price they can afford to pay, the quantity they want, when the where they are needed. Goods must be in right quality well displayed and they must be maintained in good condition by ensuring proper stock rotation and replacement of unsold stock.

Another problem affecting physical distribution of roofing sheets is high cost of transportation associated with the distribution. Being a constraint, transportation increases the marketing and product cost of roofing sheets to the detriment of the final consumer.

The poor network of roads in Nigeria also constitutes an impediment to physical distribution in roofing sheets in Nigeria. This has resulted in increased cost of maintenance of trucks used in transporting roofing sheets from source of production to the customers.

1.3       OBJECTIVES OF THE STUDY

The objectives of the study are:

1.                  To investigate the impact of Efficient Warehousing on the Physical Distribution of roofing sheet products in Nigeria.

2.                  To determine the impact of poor road network on the physical of roofing sheet products in Nigeria.

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3.                  To ascertain the relationship between transportation cost and efficient physical distribution of roofing sheet products in Nigeria.

1.4      RESEARCH QUESTION OF THE STUDY

1.               Can efficient warehousing promotes physical distribution of roofing sheet products in Nigeria?.

2.                  Do poor road network in Nigeria affect physical distribution of roofing sheet products in Nigeria?

3.                  Do transportation cost has a negative impact on physical distribution of roofing sheet products?

1.5         FORMULATION OF HYPOTHESIS

1.                  Efficient warehousing promotes physical distribution of roofing sheets in East chase limited.

2.                  Poor road network in Nigeria has a positive impact on physical distribution of roofing sheets.

3.                  Transportation cost has a negative impact on the physical distribution of roofing sheets in Nigeria.

1.6         SIGNIFICANCE OF THE STUDY

The relevance of this study in the marketing and distribution of roofing sheet is overwhelming. It is a truism that “marketing comprises those activities which ensure that the customer is provided with the right product at the right place, time and price”. It is in this context that it is necessary to target customers always when production is been carried out – this is consumer orientation. It is necessary therefore to analyse critically the

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effectiveness and efficiency of physical distribution systems of East Chase Limited

Enugu for objective of the study.

One of the major objectives of any organization is “to make profit and at the same time satisfy consumer needs and wants in a suitable and acceptable proportion” for proper attainment of this goal “management has therefore become more concerned about cost of physical distribution which amounts to a substantial percentage of sales for manufacturing companies”.

A lot of savings can be gained in the physical distribution area which has been described as the last frontier for cost economics and economies of scale in the Dark Continent. This calls for caution on the part of the companies and the researcher. But some of these field sales practices will be closely examined. With all sincerity, this work after completion will be of immense help to future marketing managers, and policy managers in their evaluation of physical distribution processes, the field sales practices of many companies are kept top secrets as they do not want competitors to capitalize on them to their own disadvantage.

1.7         LIMITATIONS OF THE STUDY

The intention of the researcher was to cover an extensive area of study in some areas of the parts of the country comprising of Enugu, Nsukka, Oji-Rver, 9th mile corner and Awgu. From the pilot survey conducted by the researcher it was evident that constraints will be faced in the course of the study. Some of the factors which are likely to pose limitations to this study include:

a.                  Time constraints,

b.                  Financial constraints,

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c.                   Bureaucracy and secrecy,

d.