IMPROVING DISTRIBUTION EFFECTIVENESS IN MARKETING OPERATIONS
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IMPROVING DISTRIBUTION EFFECTIVENESS IN MARKETING OPERATIONS
ABSTRACT
This study investigates how to improve distribution effectiveness in marketing operations using the Coca-Cola firm in Lagos. The study’s aims include determining the effect of government policy on the distribution effectiveness of Coca Cola,
the effect of channel members on the distribution effectiveness of Coca Cola, and the effect of a poor road network on the distribution efficiency of Coca Cola.
The second chapter covered literature that provided a detailed understanding of the notion of distribution, forms of distribution, distribution routes, transportation, the soft drinks sector,
and an overview of the Coca-Cola firm. This study employed a survey research methodology, with a sample size of 40 respondents drawn from the public.
Data was collected using questionnaires delivered using purposive sampling, and the acquired data was analysed using the simple percentage approach. The study’s findings indicate that government rules, channel members, and a poor road network all have an impact on the distribution effectiveness of marketing operations.
Finally, the researcher suggested that the company establish warehouses throughout the country for easy distribution, that channel members be incentivized to do more through gifts or discounts,
and that the government construct and repair bad roads, as well as formulate policies that allow companies to distribute their products more easily.
Chapter One: Introduction.
Background of the study.
The American Marketing Association describes marketing as an organisational role and set of processes for producing, conveying, and delivering value to customers, as well as maintaining customer relationships in ways that benefit the company and its stakeholders.
Thus, marketing begins with recognising consumer wants, followed by planning the creation of goods and services to maximise his satisfaction. In other words, products and services are designed around the demands of the customers rather than the availability of materials and equipment.
Not only that, but all activities (production, research and development, quality control, distribution, and sales, among others) are geared towards customer satisfaction. According to marketing mix theory, place (distribution) influences where and how a product will be sold (Kotler, 2001).
According to Griffith and Ryan (1996), distribution channels evolved as a result of the use of national resources within a trading area. The necessity to relocate resources to more in-demand places necessitated the creation of distribution networks.
A channel of distribution is a group of entities that undertake all of the activities required to convey a product and its title from manufacturing to consumption.
Distribution is the process of planning, implementing, and controlling the physical flow of materials, finished goods, and related information from point of origin to point of consumption in order to meet customer demands while remaining profitable (Phillip Kotler & Amstrong 2001). It is the marketing function in charge of moving products to their eventual users.
It may be argued that manufacturing is not complete until the goods reach the end customers, and for this to happen, manufactured commodities must move via distribution channels.
To be effective, any organisation must have an effective distribution management process that transports finished items from the maker to the final consumer.
This is because without distribution, even the best product will not be supplied, and the marketing mix will fail. Distribution also includes the planning and implementation of the physical flow of resources and finished commodities from the site of production to the place of use in order to suit customer wants while profiting the marketer (Gong, Law, Chang, & Xin, 2009).
The relationship between entrepreneurship and distribution is that any production without an effective distribution system is pointless because the generated goods have no utility until the final customer obtains some amount of satisfaction from using them.
According to researchers, distribution channels play the following roles: promotion (Jantan, Ndubisi & Ong, 2003); matching (Kearney, 2000a); negotiation (Ndubisi, Jantan & Ong, 2003); finance (Jantan, Ndubisi & Ong, 2003); and risk-taking (Ndubisi, Jantan & Ong, 2003; Kearney, 2000a).
The economy’s level has reduced the importance of distribution, resulting in product scarcity or low supply. Most management today is focused on maximising profits without considering the impact of distribution on the company and the economy as a whole. This highlights the importance of conducting extensive study on the effectiveness of Coca-Cola’s distribution tactics.
Coca-Cola has made significant progress in the areas of product development to meet worldwide standards and effective marketing to satisfy customers’ tastes while maintaining a sustainable profit.
The company’s distribution channel must encompass areas/markets that have not yet been reached and are underserved by present efforts (current level of distribution), with the goal of increasing market potential and market share. In reality, marketing channel selection is one of the most critical decisions that management must make.
Channel decisions are inextricably tied to other marketing considerations. Companies frequently neglect their distribution routes, which can have negative consequences.
As a result, management must carefully construct its channels, taking into account both today’s and tomorrow’s expected selling environment. Whatever the country’s economic situation, the importance of distribution cannot be overstated.
Transportation is critical to the successful operation of any physical distribution system. As a result, the choice and type of transportation become critical, as the goal is to make products available to consumers at the appropriate moment.
The poor road network has limited distribution efficacy, while railway transport, which would have supplied an alternate method of transport, has been out of commission for some time, contributing to high transport costs.
As a result, the purpose of this research will be to “assess the effectiveness of Coca-Cola’s distribution strategies and recommend ways to improve them.”
1.2 Statement of Problem
This study looked into the distribution performance of the Coca-Cola company’s marketing efforts in Lagos, which served as a case study. The impact of government policies, channel members, and a weak road network on the distribution efficacy of the Coca-Cola Company was explored.
Coca-Cola faces a tough and dynamic business environment, but the company is doing a lot to maintain its industry leadership. In addition, the company’s sales operations rely on both direct and indirect distribution channels.
It has become vital for the company to continuously informing and reminding its clients about how its services differ from the competition in the market. As a result, managing distribution strategies (both direct and indirect) for carbonated soft drink companies is a difficult challenge in today’s world.
The problem is exacerbated by the fact that distribution spending is often Coca-Cola’s greatest non-production expense. According to the East Africa Business Journal (2012), distribution makes up nearly 17% of non-operating expenses. Distribution spending differs greatly by industry and client base in terms of geographical distribution.
1.3 Research Questions.
This study sought to solve the following research questions:
Does government policy affect the company’s distribution effectiveness?
How do channel members impact the company’s distribution effectiveness?
Does a poor road network impair the company’s distribution effectiveness?
1.4 Objectives of the Study
The primary goal of the study was to evaluate and improve distribution effectiveness in Coca-Cola’s marketing activities. Thus, the precise goals of this research were:
To determine the impact of government policies on the company’s distribution effectiveness.
To assess the impact of channel members on the company’s distribution efficacy.
To determine the impact of a poor road network on the company’s distribution efficiency.
1.5 Significance of the Study
This study determined the distribution network established by the Coca-Cola Company. It provided suggestions for strengthening distribution channels in order to increase distribution network efficiency, create awareness, and foster consumer loyalty.
The study will benefit Coca-Cola management and stakeholders by shedding insight on the company’s distribution chain. This could help them improve their distribution channel management and operations.
Researchers and scholars can utilise this data to improve their understanding of distribution channel networks. The study serves as a foundation and source of data for future related research.
It also helped to expand the body of knowledge in marketing. The study could also serve as a solid foundation for future research into industrialists’ distribution channel activities.
1.6 Scope of the Study
This study aimed to improve the distribution efficacy of the Coca-Cola business in Lagos state. This study’s scope was limited to a survey of the opinions of the following target group:
Management and employees of the Coca-Cola Company in Lagos State.
1.7 Study Limitations
During the course of this investigation, the researcher experienced certain difficulties that influenced the ultimate outcome of the work. These issues included a lack of secondary data, insufficient funding,
inability to access the required offices for the collection of necessary materials, inability to access some relevant but encrypted sites online due to the high cost of online registration, poor response from respondents, insufficient time, and other unexpected distortions that arose during the course of the study.
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