THE EFFECTIVENESS OF PHYSICAL DISTRIBUTION IN NIGERIAN BOTTLING COMPANY

(A CASE STUDY OF COCA-COLA, ENUGU)

ABSTRACT

This research work is mainly on the effectiveness of physical distribution in Nigeria Bottling Company (NBC) (A case study of Coca-cola). The essential objectives of this study is to determine the physical distribution activities of Nigeria Bottling Company products in Enugu metropolis and try to find out if these activities are well performed as expected. To analyze the present level of physical distribution system with the sole aim of assessing its level of efficiency, and to determine the nature of market coverage that physical distribution of Nigeria Bottling Company product is concentrated on. Also, to know if their products reaches the consumers at the right time and in the right quantity. Primary and secondary data were collected in the course of this study. The primary data needed for this study were collected from employee’s, dealers and consumers of coca-cola products, while secondary data used came from authoritative local and foreign textbook’s, newspapers and journals and relevant past related projects. The research methodologies employed for data collection were questionnaire and observation to provide rudiments on how physical distribution activities are implemented. The data collected were treated and analyzed using tables, frequencies and percentages as well as top-man formula and Z-test statistical technique were used in calculating the sample size and testing of the hypothesis respectively of this study. From the analysis of the data obtained through the questionnaire’s distributed and collected revealed a lot of findings among which are:

·        That coca-cola product has a very wide demand within Enugu metropolis.

·        That customers are not satisfied with the present level of physical distribution service they receive.

·        That coca-cola products are not distributed to every point where they are needed at the right time and in the right quantity, and

·        That the employees of Nigeria Bottling Company receive complaints from customers

Finally, the researcher made some recommendations based on the findings and the various facts highlighted. The following were recommended among which are

·        That Nigeria Bottling Company should maintain high quality products for continual greater market share.

·        That Nigeria Bottling Company in view of the fact that the initial problem of the company is finding capable distribution outlets, the company should engage more on intensive and efficient physical distribution system so that the numerous customers are adequately reached.

·        That Nigerian Bottling Company should provide more storage facilities to customers in order to increase sales.

·        The sales truck of Nigeria Bottling Company should be serviced more often to avoid unnecessary breakdown in order to enable it render uninterrupted delivery services.  This will help minimize the rate of complaints from customers.

To conclude based on the findings and recommendations highlighted; Nigerian Bottling Company and other companies should have good potential for growth and increased profitability, if only they can endeavor to improve more on their physical distribution system in order to further satisfy the actual and potential customers of their products. They should also make sure that the salesmen are being effective and efficient in their respective physical distribution activities.

TABLE OF CONTENTS

Title page         -       -       -       -       -       -       -       -       -       i

Approval page -       -       -       -       -       -       -       -       ii

Dedication       -       -       -       -       -       -       -       -       iii

Acknowledgement    -       -       -       -       -       -       -       iv

Abstract   -       -       -       -       -       -       -       -       -       v

Table of contents     -       -       -       -       -       -       -       vi

List of tables    -       -       -       -       -       -       -       -       x

CHAPTER ONE

Introduction   -       -       -       -       -       -       -       -       1

1.1      Background of the study  -       -       -       -       -       1

1.2      Statement of the problem(s)     -       -       -       -       3

1.3      Objectives of the study     -       -       -       -       -       6

1.4      Research Questions/Hypothesis      -       -       -       7

1.5      Significance of the study  -       -       -       -       -       9

1.6      Scope/ Delimitation of the study     -       -       -       10

1.7      Definition of Terms  -       -       -       -       -       -       11

1.8      Limitations of the study   --     -       -       -       -       13

CHAPTER TWO

Review of Related Literature         -       -       -       -       -       16

2.1      Meaning of Physical Distribution     -       -       -       16

2.2      Nature of Physical Distribution        -       -       -       19

2.3      Overview of Physical Distribution    -       -       -       20

2.4      Activities Involved in Physical Distribution      -       21

2.5      Physical Distribution  in Enugu metropolis     -       26

2.6      Importance of Physical Distribution         -       -       -       28

2.7      Concept of Physical Distribution     -       -       -       30

CHAPTER THREE

Research Methodology   -       -       -       -       -       -       33

3.1      Sources of Data       -       -       -       -       -       -       33

3.2      Population of Study         -       -       -       -       -       -       36

3.3      Sample Size Determination and Technique     -       36

3.4      Research Instruments Used     -       -       -       -       41

3.5      Reliability or validity of Research Instruments-       43

3.6      Questionnaire Administration and Response Rate  47

3.7      Method of Data Treatment and Analysis -       -       51

CHAPTER FOUR

Presentation, Analysis and Interpretation of Data -    53   

4.1      Presentation and Analysis of Data   -       -       -       53   

4.2      Test of Hypothesis   -       -       -       -       -       -       87   

CHAPTER FIVE

Discussion of Findings, Recommendations and Conclusion

5.1      Summary of Findings      -       -       -       -       -       96

5.2      Recommendations   -       -       -       -       -       -       98   

5.3      Conclusion      -       -       -       -       -       -       -       100 

Bibliography    -       -       -       -       -       -       -       103

Appendices      -       -       -       -       -       -       -       105

LIST OF TABLES

Table 4.1.1:      Response of employee’s on whether company have a physical distribution department   55

Table 4.1.2:      Response of employee’s on whether company embark on physical distribution activities 55

Table 4.1.3:      Response of employee’s on company’s effectiveness of physical distribution

activities -       -       -       -       -       -       56

Table 4.1.4:      Response of employee’s on initial problem encountered by the company which restricted physical distribution.     -       -       -       57

Table 4.1.5:      Response of Employee’s on company’s capability to overcome these problems encountered.   -       -       -       -       -       58

Table 4.1.6:      Response of Employee’s on whether company’s warehousing facilities meet the needs of customers.    -       -       -       -      -        60

Table 4.1.7:      Response of Employee’s on enough distribution outlets  -       -       -       -       61

Table 4.1.8:      Response of Employee’s on whether company provides storage facilities   -       -       -       62

Table 4.1.9:      Response of Employee’s on whether company have enough sales truck for delivery of its products to