ASSESSMENT OF PHYSICAL DISTRIBUTION SYSTEM USED BY BEVERAGE FIRMS IN OWERRI IN THE MANAGEMENT OF THEIR CUSTOMER SERVICES (A SURVEY OF TWO BEVERAGE FIRMS IN OWERRI URBAN)
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The focus of this research work is to find out the effect of distribution strategies and factors in the achievement of customer service level of beverage firm company, thus work further highlight on the assessment and impact of physical distrtibution in the creation of satisfied customers and the general profitability of the company. This project is composed of five chapter, chapter one is the introduction of the subject master, General description of the study, statement of problem, purpose of the study, relevant research question and hypothesis, definition of terms , significance as the study and limitation of study.
Chapter three is the research methodology. If will involve the research design, questionnaire design sampling and selection of respondent, other methods used and data analysis method.
Chapter four deals with the analysis of data and testing of hypothesis, data presentation, decision rule and discussion of major findings.
Chapter five deals on the summary, recommendation, and conclusion.
Table Of Content
Table of contents
1.1 General overview of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Significance of the study
1.5 Research question
1.7 Scope of the study
1.8 Limitation of the study
1.9 Definition of terms
2.0 Literature Review
2.1 Sales force Management
2.1.1 Recruiting and Selecting of sales
2.1.2 Source of Recruitment
2.1.3 Qualities of a good sales man
2.1.4 Induction of salesman
2.2 Sales territory
2.2.1 Importance of sales territory
2.2.2 Planning the sales territory
2.3 Setting the sales territory
2.4 Salesman performance and evaluation
2.5 Sales Force Compensation Plan
2.5.1 Features of Good Compensation Plan
2.5.2 Methods of Compensation
2.6 Motivating the Salesman
2.7 Distribution Channel
2.7.1 Major Channels of Distribution
2.7.2 Factors that affect choice of Distribution
3.1 Research design
3.2 Questionnaire design
3.3 Population and sample selected
3.4 Source of data
3.5 Data collection techniques
3.6 Method of data analysis
4.0 Data Presentation and analysis of findings
4.1 Data presentation
4.2 Analysis of data
4.3 Testing of Hypothesis
4.4 Discussions on Major Findings of the study
5.0 Summary, Conclusion and recommendation
1.1 GENERAL OVERVIEW THE STUDY
Exchange, the most economically and socially acceptable, way of satisfying needs is the essence of all business and personal selling is a strategic means of achieving that. in other words, the life of the organization lies on the efforts of the sales they identify the prospects, persuade then to effect physical exchanges and advice them and the organization to ensure an enduring and satisfying relationship. Ezirim, (2002 page 305 of the opinion that no company can per firm by itself all the activities involved in production and distribution of its product and services to its final markets. Most managers in the present day business have confessed that the most difficult problem of man is managing people at work.
In the area of sales, where assignments may take the workers private hours, some times at a distance far from the head. The Job of management get presents an added taskto the manager. A way to get out of the jungle involves effective training and recruitment, valuable motivation, etc. These activities form the nucleus of sales management is necessary because selling, as we know is a strategic marketing function that assists heavily in the realization of the corporate objectives.
By definition, Okeke (1994) page 105 says that sales management is the organization efforts necessary in planning sales objective specifying selling efforts needed in realizing the appropriate sales force controlling their operations towards ensuring full realization of sales objectives.
It is obvious that soft drinks have acquire a household and societal recognition such that it is often used in occasions and one can hardly avoid an intake of it each day. Another fascinating aspect which attracted the researchers involved in recent times amongst the soft drink producers and their enduring physical distribution pattern of varied strategies to promote propagate an perpetuate the demand for their product.
The researcher will concentrate his research effort on beverage firm company because from observation, beverage firms company seen to be one of best that is making a great impact on publish awareness and its competitive proves very forceful.
Beverage firm company is a foreign company from New York, U.S.A. it was brought to Nigeria under a franchise agreement by one Lebanese shipping magnate Mohammed El-khald. The agreement was signed in 1959 and stated beverage firm operations on 1st October 1960 at Ijora in Lagos as the corporate head offices.
Today, beverage firms has bottling plants at oregivne, Ikeji, Kano Illorin, Kaduna and lastly aba which was established in 1988 and started bottling operations in march 1989 depots located in deferent places of the world. Management according to Okafor A.I (1996) need to take their sales people for granted beliving they will always perform at top levelall times .it then becomes very important for sales managers to realize the importance of an adequate compensation plan, and other motivational tools towards producing top flight sales representative. Management therefore needs to be very careful in the handling of its sales force right from the recruitment a selection of its sales force to their retirement or leaving the organization.
Ezirim, (2002) page 179 is of the opinion that although the channel of distribution as a for moving goods and services from point of production to the ultimate user is an old one several new theories have been developed. Among which are: channel of distribution as a legal transfer of little, as a communication network and as a reason for the study.
However, the basic activities involved in a physical distribution system are transport , storage, physical handling, inventory control and management and finally location theory.
1.2 STATEMENT OF THE PROBLEM
This project is an assessment of physical system used by beverage firms in Owerri with a survey of two beverage firms in Owerri. The major problem is to determine the assessmently the role of beverage firms in the management of other customer services.
In the real sense, does the survey of two beverage firms in Owerri actually embraces and recognizes the importance of an assessment of physical distribution management in its company activities. This question is been asked to know whether the beverage firms engages itself in one of the types of physical distribution system used by beverage firms in the management.
Finally, the researcher therefore went to find out what we are the physical distribution management in beverage firm company Owerri in relation to deal management design.
The principal aim here is not only to identify problems but also to provide solution or alternative so that the beverage firms will accomplish its objectives.
a.. To determine the extent of relationship between the physical distribution management Owerri urban plant and the head office
b. To review the remuneration pattern for sales and its subsequent effect of performance.
c. To know if there are adequate sales force to cover the sales territories
d. To find out the best channels for even distribution of the organization productions at to reach the ultimate consumers at a reduced rate.
The findings of the study will be of significance to any concern. Royers was right to have said that “When all theorists and planners have had their moment and the production, finance and labour problems have been solved. Then someone, somewhere was to go out and knock on someone’s door and sell”
However, it would be of great use to seven up bottling company Owerri plant since it would enhance the varies strategies used to increase the rate of turnover, thereby motivating the management and sales force into action.
Students in marketing department would find this work useful since it exposed some vital information on some courses offered in the department.
Finally, the study will serve as a frame of reference for students and researchers of related field who might conduct similar inquires into this topic.
i. How effective is the physical distribution system of beverage firms company Owerri
ii. How adequate is the number of the sales force in covering the sales territories,
iii. What effect has the numeration of sales men in relation to their performance
iv. What is the extent of relationship between the physical distribution management Owerri plant and the head office.
The following hypothesis formed the basis for the study
1. Ho: physical Distribution system of beverage firms company Owerri is not a determinant for adequate sales
H1: physical distribution system of beverage firm company Owerri is a determinant for adequate sales.
2. Ho: Remuneration of salesmen has no effect on their performance.
H1: Remuneration of salesmen has an effect on their performance.
3. Ho: The relationship between Owerri depot and the head office has no effect on the management of customer service level in the beverage industry physical distribution system.
The study was scope to the physical distribution management in beverage firm company. It focused on physical distribution management of customer service level in the beverage industry beverage firm company Owerri, and also looked at their sales force and sales territories effectiveness. No attempt was made to look into the activities of beverage firms plants located at different locations live oreyun, Ikeja, Ibadan, Kano Illorin, Kaduna and the corporate head office at Ijora Lagos.
1.8 LIMITATIONS OF THE STUDY
In fact, there can not be any successful research of this magnitude without encountering such difficulties. This project work alike is not en-surrounded by some limitation on which indicated that it was not hitch free.
The following were some of the glaring problems encountered.
– The degree of time consumed of the expenses of lectures and other important assignment
– Difficulties in securing some of the vital document containing some valid information relating to the subject matter of the research.
– the lukewarm attitudes of some officers who were suppose to attend and give reasonable response. some of those interviewed failed to give adequate information believing that it will reveal this lapses and loopholes.
1.9 DEFINITION OF TERMS
The terms used in the study, which have unique meaning that could be subjected to different interpretation by different readers of the project report are defined as follows:
1. SALES FORCE: It is called sales personnel or sales representative and serves as the company personal link to the customer (Philip Kotler, 2003).
2. SALES TERRITORY: The specific portion of a firms total physical market that is assigned to a certain sales person. (Kirk Patrick et al, 19u71,p4)
3. COMPENSATION: It is the various ways of manipulation workers salaries which is used as an incentive to motivate them
4. SALES FORCE COMPENSATION: This is an important tool for attracting the quality of caliber of people to do a particular job.
5. SALES FORCE QUOTA: Motivational targets expressed in quality or monetary value that are assigned to field units such as region; districts or sales mans territories that assist management in producing incentives for salesmen in controlling salesmen’s efforts and in evaluating their performance. (holson A. Marun 1978, pg569-570)
6. ADVERTISEMENT: A public notice offering or asking for goods and services through a wide range of mass media.
This chapter can be described as the most intellectual demanding part of the whole research work. This is because evaluative reference to the problem statement, its solutions and objectives are stated here. In the light of this, the researcher has therefore, exercised reasonable care in summarizing, making conclusion and drawing recommendations.
All the points in this work, a full recollection of the purpose of this study must be made. This will enable us evaluate the chosen approach and techniques which were given under a methodology in chapter three, will then be able to say how much success has been achieved in providing solutions to the problem under study, an assessment of physical distribution system used by beverage firms in Owerri in the management of their customer service.
The chapter one highlight the introduction of the subject matter, it brought out the general overview of the study, statement of problems significance of the study, research questions, statement of hypothesis, scope of the study, limitation of the study and the operational definition of term. The purpose of the study was to help in finding out how the beverage firms industry carryout the marketing strategies in their firms and how they will split duties to the various department for them to meet the need of customers.
The chapter two deals with the literature review of well known authors. It clearly reveals the views of these authors on the subject matter.
The chapter three deals with the research methodology and procedure employed in the work. This include the research design questionnaire design, population/ sample selection, service of data, data collection techniques and the method of data analysis.
The chapter four of this work presented the findings and analysis of data that was earlier collected. In other words, it concern itself presentation and analysis of data, testing hypothesis and discussion of major findings.
The fifth was specifically divested to the summary, conclusion and recommendation on the entire work done on the subject matter.
Based on the analysis, presentation and findings of the study and the conclusion draw the researcher therefore, makes the following conclusions:
– Management in addition to intensive distribution should adopt backward and forward integration strategies in other to gain a winder market coverage
– Since a majority of the respondents are of the opinion that adopting all distribution strategies would yield maximum result, it then means that adopting individual strategies would not yield good result.
– Intensive distribution strategy could enable the company achieve a winder coverage of the market which exclusive or selective strategies cannot achieve
– Effective physical distribution system guarantees adequate sales
– Adequate remuneration of sales force motivates them into greater performance therefore aids management in effective physical distribution of company’s product.
– Since corporation among management promotes effective distribution system it then implies that all levels of management should work in other to achieve the corporate goal.5.3 RECOMMENDATION
Based on the findings of this study and the conclusion drawn, the researcher therefore, makes the following recommendations.
– The compensation policy of the company that is greatly in use of salary plus commission. I therefore recommend a more challenging compensation policy like divert attachment to new accounts opened per month with high turnover rate and large sales volumes. Other incentives schemes can be introduced which includes:
a. Special awards for above target performance
b. Bonus awards for large sales volume during the slum period like the rainy season and inflation.
c. The company recruits its salesman mainly from external source. The researcher is of the opinion that priority should by given to promising men from the company (ie internal source) and possible man from sales department of other beverage firms companies since they have the benefit of knowledge of the product industry and its operations.
– Management in additions to intensive distribution should adopt backward and forward integration strategies in other to gain a winder market coverage