DISTRIBUTION CHANNEL / STRATEGIES FOR BREAD IN ENUGU STATE (A CASE STUDY OF 7UP BOTTLING CO. PLC ENUGU PLANT)
BACKGROUND OF THE STUDY
As the economy advances, there is a restaurant widening of the gap between producers and consumers, the increase in output of goods and services necessitates. The development of channel of distribution they provide time, place and convenience utility for the goals and services provided.
In the view of Adirika, Ebue and Nnolin (2001) distribution is demand creation and satisfaction and both directly and indirectly brings down the total cost of marketing organization. Apart from producing the goods and services required by buyers, pricing and promoting them (i.e. informing buyers about them) marketers have to make these goods and services available to the buyer, that is, place them at his or her convenience, in order to make them seen or perceived, admired, accepted and purchased by them.
Thus, effective and efficient distribution flow will not only make goods available, but will also do so at the cheapest possible price to the consumer, at the lowest possible cost to the consumer, at the lowest possible cost to the producer or supplied. Accordingly the distributional strategy and channel employed greatly influences the economic value of goals, both to the distributor and to the consumer especially when and it it’s selection is carefully considered.
A manufacturer has the option of selling either directly to the ultimate consumer of it’s products, or through the use of intermediaries in realizing the same objectives considering present marketing environmental factors such as the location of the market, the undulating economic conditions within the Nigerian economy as a whole, together with consumer requirements by way of varieties, quantities and time of product requirements, most manufactures prefer reaching their customers through the use of marketing intermediaries.
With regard to the use of marketing intermediaries in reaching ultimate, consumption targets, there are two important end related decision areas having marketing implications and of relevance to the producer or supplier. The first is a decision on whether or not the use intermediaries for distribution. The second which option to be adopt, follows only if the decision to the first problem called for the use of intermediaries.
In deciding the types and nature of the distribution channel options to be adopted, the action is usually given to such important factors as the cost of the channel to the user, the efficiency of the channel, the type and nature of the product. The type of target market to be saved, the size, location, and purchasing pattern of potential and present customers, availability of alternative marketing intermediaries. The type of channel options adopted by competitors and the manufactures available resources.
In the bread industry, and considering the nature of the product, channel of distribution channel becomes a very important marketing decision. Also in this industry, the different marketing utilities of distribution economy, market coverage, channel control and adaptation to changing environments, interplay and influence the choice decision. According, the distribution channel and strategy option adopted by any producer should contribute to the achievement of the overall marketing objective, and therefore meet the company’s objective and the consumer’s requirement in the sale.
It is a fact that the bread industry has assumed importance in the Enugu State today. In this state, bread is one of the staple food items consumer by most people. The demand for bread and its frequency of consumption is high. This high rate of bread consumption in this state is accounted for by a number of factors.
In Enough State, it is usually hot because it is not far from the northern part of the country there by making people to sweat which bring about hunger which makes most of the inhabitants of the state to go for solid and strong foods that will give them strength for instance cold minerals are frequently taken during the hot period irrespective of the time of the day. And cold drinks have a complementary demand for bread, which goes to explain the wide acceptability of the product in the state. The character of the people occupation which among the rural population is mainly farming and white color jobs also contributes to the high demand for bread. These occupation require long hours in the field as well as food that is light to carry and can be easily and quickly consumed. In these circumstances, bread comes in very hurdy. Among the light food is ideal for breakfast other reasons for the holf demand for bread can still be mentioned among unmarried people, bread is regarded as very difficult duty also at ceremonies like birthday, sandwich, prepared from bread has become a popular entertainment diet of the people. As bread has assumed prominence as a food item, so also has it’s industries importance. It is because of distributions in making this important stable food (bread) available that the research examines distributions channel options/strategies for bread industries in Enugu state.
TABLE OF CONTENT
TABLE OF CONTENT
BACKGROUND OF THE STUDY
STATEMENT OF PROBLEM
OBJECTIVES OF THE STUDY
SCOPE OF THE STUDY
SIGNIFICANCE OF STUDY
POPULATION OF STUDY
SAMPLE SIZE DETERMINATION
METHOD OF DATA ANALYSIS
PRESENTATION AND ANALYSIS OF DATA
ALLOCATION AND RETURNS OF QUESTIONNAAIRE
4.3 TESTING OF HYPOTHESIS
FINDINGS, CONCLUSION AND RECOMMENDATION
SUMMARY OF FINDINGS