EFFECTIVENESS OF PHYSICAL DISTRIBUTION OF CHARIS SATCHET WATER
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
EFFECTIVENESS OF PHYSICAL DISTRIBUTION OF CHARIS SATCHET WATER
ABSTRACT
This study focuses primarily on the effectiveness of physical distribution of Chris sachet water in the Enugu metropolis. Employees that use Charis sachet water provided the data for this study.
The goal is to determine whether their items have a large demand inside the Enugu metropolitan. To measure consumer satisfaction with the current degree of physical distribution,
as well as whether their product reaches the consumers at the desired time. The research methodology used was surveys and observation of how physical distribution is carried out.
In addition, other statistical models such as the Top Man Formula and Z test procedures were employed to calculate the sample size and test the hypothesis, respectively.
From the analysis of the data obtained, it was discovered that Charis sachet water have very wide demand within Enugu Metropolis, that dealers are not satisfied with the current level of physical distribution service they receive,
that products are not distributed to the very point where they are needed at the right time and quantity, and that they receive complaints from customers. With this, it was recommended that Charis sachet water should increase their product quantity for better
Based on the findings and the numerous data presented, the following were advised.
1. Product quality should be maintained in order to gain a larger market share over time.
2. Given that the company’s primary difficulty is locating capable distribution outlets, the corporation should invest more in an intensive physical distribution system to ensure that all of its consumers are adequately served.
3. The corporation should endeavour as much as possible to stop renting, and if this is accomplished, the warehouse (depot) facilities must be satisfactory.
4. To enhance sales, the organisation should give more storage facilities for clients as well as Kiosks for each customer.
5. The sales vehicle should be serviced more frequently to avoid breakdowns and to ensure adequate interrupted delivery service, which will reduce client complaints.
Chapter one
INTRODUCTION
1.1 Background of the Study
Production is incomplete until the goods reach the intended consumer. A normal company will deliver or learn that its product’s customers are spread out around the globe.
The firm’s decision to distribute its products directly through its own sales outlets or indirectly through marketing middlemen such as wholesalers and retailers is insufficient to get the goods to customers. The company must ensure that the product is truly available or make it available for distribution at all times.
To achieve customer pleasure and enhance patronage, enough care must be taken of the products to minimise losses or damages, as well as commensurate customer service.
Physical distribution must be correctly channelled to regulate the flow of items from maker to customer in order to accomplish consumer pleasure and the firm’s goals.
The increased focus placed on the notion in the 1950s is a practical demonstration of its enormous contribution to the effective achievement of marketing objectives. Physical distribution is simply how businesses store and handle more things so that they are available to customers at the appropriate time and location.
Consumer appeal and satisfaction are heavily influenced by the seller’s physical distribution capabilities. As such, physical distribution is a significant consideration in business.
An executive physical distribution that results in a reduction in physical distribution costs will inevitably lead to a reduction in production costs or product prices, attracting many price-conscious consumers.
In Nigeria, as in most other countries, industries are localised or concentrated in a few industrial cities or layouts, while customers or their products are dispersed worldwide.
Efficient transportation and location of sales outlets will allow industries to make their products available to consumers living far away. Efficient transportation and physical location might provide a company with an advantage in terms of proximity to these customers.
For example, vita malt drinks produced by Associated Breweries Ltd. in Ogun State, Nigeria, compete favourably with other malt drinks in virtually all ports of the country due to efficient planning and coordination of physical distribution activities that make goods available at the right place and time, or where they are needed.
Experts believe that significant savings can be gained in the physical distribution domain, which has been described as “the last frontier for cost economics” (Journal of Marketing, April 1962:15).
Physical distribution in the sachet industry should be extensive; they should stock their products in as many outlets as feasible. The objectives must be useful in their intended context. Cigarettes, for example, have over one million shops, maximising brand exposure and ease.
Physical distribution should be intensive since customers are inefficient. Product distribution is critical to achieving marketing goals as well as competing economically and effectively.
1.2 Historical Background of the Company
Charis sachet water company is one of the top names in the Enugu Metropolitan area. The company is located in the centre of Enugu’s commercial hub. J.E Collince Company was established over a decade ago with better capacity for physical distribution of their products.
The company has numerous distribution outlets and target geographical areas. J.E. Collince, the manufacturer of Charis sachet water, was one of the top sellers of sachet water in Enugu.
The company’s profitability and performance can be plainly traceable because they are widely patronised in a competitive market.
The enterprise is situated in the centre of Enugu metropolis (River Asata layout). The company’s brand name is Charis Water, and its production facility is located at No. 3 Mildland Avenue, Asata River Layout, Enugu.
1.3 Statement of Problems
Physical distribution is a critical component of distribution activity because it establishes place and time utility and lays the groundwork for possession and title utility. All of this contributes to consumer happiness.
As a result, for the sachet water sectors to operate successfully, physical distribution activities must be handled with care.
However, for Nigeria’s sachet water industry, the physical distribution system must be near-perfect. It must perform well in care activities such as transportation, warehousing, inventory management, and others.
Processing also has the potential to appropriately organise these price-related activities and implement them efficiently and effectively; nevertheless, salespeople are not always efficient in carrying out physical distribution activities.
Furthermore, salesmen arbitrarily boost the cost of each purchase of sachet water sold to the intermediary market, cutting their margin to the point that the wholesaler’s margin affects the ultimate client. In some circumstances, clients do not receive sufficient quantities of products at the appropriate time and quality.
The Charis sachet water company lacks sufficient distribution channels for their product. Nonetheless, in order to compete effectively and efficiently with other sachet water companies, they must have an adequate distribution network for their products.
In most circumstances, the salesman directs products that have already been allocated to the company’s clients. Furthermore, the distribution of Charis sachet products is directly related to the company’s sales revenue.
A negative response to any of these points indicates a divergence from what should be expected. The motivation for conducting this research is to determine whether such problems exist, what causes them, and what can be done to solve them.
1.4 Objective of the Study
In accordance with the macro goal of determining the effectiveness of physical distribution of Charis products in Enugu city, this study has various objectives, which include:
To investigate the physical distribution operations of Charis sachet water in Enugu and determine whether they are conducted as intended.
Another item to consider is analysing the current physical distribution system in order to determine its efficiency.
To determine the character of the market; whether it is distributed, concentrated, or dusty.
To also determine the extent to which Charis distribution coincides with the sale.
1.5 Significance of the Study
It is critical to investigate the effectiveness of physical distribution since businesses cannot generate revenue without it.
The old marketing adage was that if you produce a product, the entire world will come to your door. It no longer applies in today’s world since the location of use must be considered.
This means that, in addition to manufacturing the greatest product, customers must be communicated with, and they may request that it be delivered at a specific time, location, and form, which is the job of physical distribution.
Non-durable items, such as Charis sachet water, must be provided just when needed. Any drop in performance will lower the quality of client service.
As a result, it is critical to examine the physical distribution system and benefit from its effectiveness, as well as to identify and recommend actions to reduce or remove system flaws.
Furthermore, the outcomes of this study are expected to assist the company’s management and distribution in strengthening their commercial operations. Customers will also benefit from the effective physical distribution of Charis products, which will make them more readily available at all times.
1.6 Limitations of the Study
There is the issue of lack of time. The task is quite complicated, but we only have a limited amount of time to complete it, as well as other tight timetables. However, because of the importance of the subject matter,
we were able to carry out a defensible study from which reliable generalisations could be drawn, although there was a financial constraint due to the nation’s economic crisis.
The high expense of transportation to this company under study was also a burden, since the researcher frequently had to return twice or three times each week to obtain the necessary information. Consideration is also important.
1.7 Research Questions
The research question for this project will be based on the following.
What is the level of demand for Charis waters? Are Charis’ clients satisfied with their current level of physical distribution service?
Does Charis have enough distribution outlets to satisfy its customers? What is Charis’ distribution objective? Charis, what market presentation are you serving? What type of channel structure does Charis use?
Is it directly from the producer to the customer, or does it go through intermediaries? Does the distribution strategy questionnaire follow a regular schedule and meet deadlines? Is it cost-effective and meets distribution objectives?
Need help with a related project topic or New topic? Send Us Your Topic