STUDY OF THE PRODUCT DISTRIBUTION SYSTEM IN THE BREWERY INDUSTRY
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STUDY OF THE PRODUCT DISTRIBUTION SYSTEM IN THE BREWERY INDUSTRY
ABSTRACT
This project, a modest attempt to examine the distribution system in the brewery business using consolidated breweries plc Awomama, brewery of “33” export large beer as a case study, was painstakingly and systematically surveyed and analysed by the researcher.
As stated in the statement of purpose in Chapter One, the primary goal of this study is to identify distribution problems and prospects in the beer market, as well as to make some useful suggestions in that regard.
To that end, the researcher began this work by taking a quick and cursory look at the brief history and background information of the company chosen as the case study.
As a result, the researcher focused on the issues associated in the company’s distribution operation, as well as other distribution-related marketing efforts.
Chapter one
1.0 Introduction
Consider the topic “A study of the product distribution system in the brewery industry”. A case study of Consolidated Breweries Plc. Breweries of the famous “33” export huge beer. It demonstrates that it is relevant in both time and place.
To be honest, the image of our breweries is not something to be proud of when compared to what is seen in developed countries.
The distribution system has been the most unstable, and it is largely responsible for the rising price of beer. The marketing of items consists of two distinct but linked activities. The one deals with the search for and stimulation of purchasers, while the second deals with the physical distribution of commodities.
Experience has demonstrated that, as market competition has increased, entrepreneurs and their marketing execution have dedicated the majority of their time not only to the search and stimulation of goods, but also to this function.
They are concentrating their efforts on building a mix of products, prices, promotions, and channels that will keep demand strong; they see physical distribution as a supportive and subsidiary activity for making things available to purchasers.
A public limited liability firm, such as Consolidated Breweries Plc, is in a weak position or state when it gets beer orders but lacks the capacity to deliver them.
A BEER HOSTORY AND BACKGROUND IFORMATION OF CONSOLIDATED BREWERIES PLC WITH SPECIAL REFERENCE TO “33” EXPORT LAGER
The research chose the above term to differentiate between the two divisions that make up the big consolidated breweries corporation.
Namely:
Beer division (“33” means export lager beer).
The soft drink section (Hi-Malt)
The reason for the differentiation is to create the beer division. While the research does not intend to ignore the importance of the soft drink industry and its distribution system for fear of inflating the research paper,
I believe that the outcome of my criticisms of the beer distribution system will also benefit the soft drink division. The Consolidated Breweries Plc is a public limited liability business founded in 1983 by the Levities Group of Companies.
The brewery is located at Km 24 on the Owerri/Onitsha feral Highway. The company’s first chairman was Chief J.O. Udorji (CFR). The withdrew from the board on December 31, 1996, after overseeing the affairs of this company for twelve (12) eventful years, including four years following its merger with continent breweries ltd.
During those 12 years, the organisation experienced significant growth.
For example, turnover increased from less than N26 million in the first year of operation to N1.66 billion in December 1996, while profit before tax increased from less than N4 million to N90.39 million.
Professor (Mrs) Oyin Odutola OlUrin is the current chairman of the company. The company’s raw material procurement is 60% domestic and 40% foreign, with a normal production capacity of ill,520 prepay.
There is a marketing department with a clearly defined organisational structure. The consolidated breweries corporation includes various areas that influence its sales.
They include empty cash product allocation and customer legislation portions.
The organisation posts qualified sales agents on a regular basis. These sales reps are in charge of multiple depots in their respective areas of operation. The company has several distributors throughout the country.
The form the core of the company’s distribution network, which aims to ensure a consistent supply of “3” export bigger beer to clients. Their depots are located in Owerri, Aba, Onitsha, Port Harcourt, and other locations.
They have a collection of vehicles that range from three-ton steer vehicles to Mercedes 911 trucks and lengthy trailers. The beer division of consolidate breweries plc employs over 400 people.
The Company’s Mission Statement.
The company’s primary goal is to industrialise rural areas, hence providing jobs to the growing rural population. The company’s goal is to help the state’s and the nation’s economies grow. In addition, the organisation strives to provide its consumers with effective services. Make a profit.
STATEMENT OF PROBLEMS
The necessity for efficient beer distribution within the system, as well as an increasing need for proper logistics, has become critical. The consolidated breweries plc operates in a competitive marketing environment with other breweries in the same industry,
and as a result, it faces numerous internal and external difficulties relating to economic, social, and political aspects. These issues that were faced fall under the wide category of distribution methods and distribution logistics.
They include:
Inadequate transportation and storage facilities hinder effective distribution.
The issue of complete neglect of marketing research since its absence undermines standard markets, consumers, and tier necessities.
The challenges of cushioning staff rivalry in the beer markets as a result of proliferation and subsequent overfloating of produce by other breweries in the country.
The difficulty of making their beer available throughout the country rather than concentrating in locations where a market had already been established.
The issue of relegating the marketing concept to the background in favour of the unconventional sales concept (marketing focuses on customer delight, whereas sales focuses on profit maximisation).
The difficulty of a well-organized marketing department that can boast adequate and appropriate human resources, as well as appropriate experimentation and transparency.
The machine breakdowns were caused by a lack of spare parts for the machines, which had a negative impact on the company.
The rising cost of raw materials has a long-term impact on production costs and services such as distribution.
It is important to emphasise here that the research does not seek to assert that these are the sole issues in the company. However, because the goal of this project is to find ways to consolidate breweries plc, the origins of those problems, as well as those yet to be identified, will be traced in the data analysis, with solutions offered in the recommendations section.
GOALS OF THE STUDY.
Marketing is increasing popularity in Nigeria, and the good realisation of this world requires us to pave the path for its introduction and widespread application.
This is evident from the fact that the competitive market is gradually replacing the seller’s market.
This is due to the nation’s increased productive capacity in specific product categories such as beer.
To implement this marketing approach, an effective distribution infrastructure will be required. This necessitates paying attention to decisions related to it.
The goal of this study is to determine how these decisions are influenced by product demand, cost, and competition.
To identify the issues and potential for distribution management at consolidated breweries plc.
To evaluate the consolidated breweries plc’s distribution networks in terms of lager beer sales in order to establish whether they are in line with modern marketing concepts.
To emphasise the prospects for restructuring the current distribution structure and operations to ensure consumer sovereignty and a sustainable return on investment.
To emphasise the anticipated issues encountered in the distribution of “33” (double three) export beer.
RESEARCH QUESTIONS:
Do your salespeople and channel members have the right to supervision and motivation?
Does your company have adequate distribution facilities?
Does Consolidated Breweries Plc engage in indirect sales to ultimate consumers?
Looking at the amount of depots that consolidated breweries maintain, are they adequate, or do you advocate for more depots?
Do you believe there is a need for distribution or merchants in your community?
SIGNIFICANCE OF THE STUDY.
This study would not only assist the researcher complete his academic curriculum, but it would also provide him with real-world experience and training in the field of research for issue resolution.
Furthermore, it would allow them to improve their distribution strategy.
SCOPE OF THE STUDY:
The paper, which aims to analyse the distribution system of consolidated breweries plc, is a company-specific analysis.
As a result, the researcher is limited to this industry, but he is well-versed in the numerous distributors and consumers spread across its geographical area of sale in the north and south.
Because of the limited time, current economic situation, and financial resources available for the study, the writer relied on information from distribution from those who were incidentally present in the brewery at the time the researcher went there to collect data relevant to this research, rather than travelling to the far north and south.
Was it truly possible for the researcher to obtain all of the data? In most circumstances.
The data figures necessary were deemed “classified matters,” and my request for the company’s 1998 annual report was denied. To a significant extent, official redtops hampered the elicitation of critical information. For example, the question of the marketing department providing me with a list of distributors was met with this fate.
My conversation with the managing director’s special assistant was occasionally interrupted by phone calls from the brewery.
Due to the problems experienced, the researcher must rely exclusively on the results of the interview with the managering director’s personal assistant.
On the part of the customers, three towns (Owerri, Aba, and Port-Harcourt) in the separate states of Imo, Abia, and Rivers were mostly employed as a basis for determining. However, it is considered that these towns represent the entirety of such communities in Nigeria while also serving to generalise the goal of the research.
1.7 Limitations of the Study
The key restriction of the research is the brewery’s product system and the willingness of all personnel to accept and answer the research questionnaire, as the majority of them did.
The time constants involved in preparing for the final test encompass a wide range of topics.
Writing materials were a source of limitation for the study, as were books, which were rare and very expensive, and a lack of funds posed a significant challenge to the study.
1.8 Definition of Terms.
Product can be described as everything that has value and is capable of meeting an individual’s needs and desires. It is anything presented to the market for attention, consumption, or purchase.
Product is a broad umbrella under which commodities are accommodated. It can also be referred to as the embodiment of goods and services, and it is not limited to real or tangible products such as commodities.
Distribution system: The flow of title to goods and services as they move along, the channel of distribution from point of product to point of consumption in an attempt to increase these goods and services marketing middle mar assist on exchanging titles and possessions,
should range from wholesalers, retailers, distributors, dealers, and so on. These are used because they give financial support for the breweries. Company.
iii. Brewery industry: or industry itself, these may be defined as a number of benefits that arise as a result of physical distribution. In the realm of marketing, some of them might be seen as the product movement storage creation of marketing cost information availability, alternative, and promotion. All of these industrial production inputs will create career possibilities and stability for Nigeria Brewery Plc.
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