Effects Of Physical Distribution Management On The Marketing Performance Of Nigeria Breweries Plc

ABSTRACT

The study focuses on efforts of physical distribution management on marketing performance of Nigeria breweries plc. In the course of the study, three objectives formulated were to: examine the effects of transportation cost on product availability; ascertain the effect of channel of distribution on product price and examine the effect of distribution channel on sale volume. Primary data (questionnaire) was used to generate data for the study. In this regard, 120 copies of a well-structured questionnaire were given out and 90 were properly filled and returned. Ordinary Least Squares (OLS) was used to test the three hypothesis formed. After the analysis it was concluded that market share was significant at 1% and positively affects profitability. Based on this, the recommendations made were: Brewers should work out appropriate budgets to enhance effective transportation, so as to maintain product availability since transportation cost is a major factor in this regard; breweries should endeavour to adopt best distribution channels (strategies) that form each market segment so as to promote sales in the various segments; breweries should adopt channel strategies that would promote efficiency without adding to price unnecessarily.

TABLE OF CONTENTS

Tittle Page ﾿ i

Declaration                                                                                                                  ii

Certification                                                                                                                iii

Dedication                                                                                                                   iv                                                                                                                 

Acknowledgement                                                                                             v

Table of content                                                                                                           vi

List of Tables          ﾿ vii

List of Figures ﾿ ix

Abstract ﾿ x

CHAPTER ONE

INTRODUCTION

1.1 ﾿ Background to the Study ﾿ 1

1.2 ﾿ Statement of Problem ﾿ 3

1.3 ﾿ Objectives of the Study ﾿ 4

1.4 ﾿ Research Questions ﾿ 4

1.5 ﾿ Significance of The Study ﾿ 5

1.6 ﾿ Scope of The Study ﾿ 5

1.7 ﾿ 1.8 ﾿ Limitations of The Study ﾿ 6

1.8 ﾿ Definition of Terms ﾿ 6

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 ﾿ Conceptual Framework ﾿ 8

2.1.1 ﾿ Evolution of Physical Distribution ﾿ 8

2.1.2 ﾿ Concept of Physical Distribution Management ﾿ 9

2.1.3 ﾿ Channel Decisions In Relation To Marketing Strategy ﾿ 11

2.1.4 ﾿ The Importance of Middlemen ﾿ 12

2.1.5 ﾿ Key decisions in channel management ﾿ 14

2.1.6 ﾿ Types of distribution system ﾿ 16

2.1.7 ﾿ Marketing to Middlemen ﾿ 20

2.1.8 ﾿ Power and Conflict in Distribution Channels ﾿ 20

2.1.9 ﾿ The Total Distribution Concept ﾿ 22

2.1.10 ﾿ The Components Of The Total Costs Attached To Physical Distribution ﾿ 23

2.1.11 ﾿ Importance of Physical Distribution ﾿ 24

2.1.12 ﾿ A System Approach ﾿ 26

2.1.13 ﾿ Protective Packaging and Materials Handling ﾿ 30

2.1.14 Components of Logistics System ﾿ 31

2.1.15 ﾿ Interrelationship between Transportation and Logistics ﾿ 33

2.1.16 Transport Costs and Goods Characters in Logistics ﾿ 33

2.1.17 ﾿ The Effects of Transportation on Logistics Activities ﾿ 34

2.1.18 ﾿ The Role of Transportation in Service Quality  ﾿ 35

2.2 ﾿ Theoretical Framework ﾿ 35

2.2.1 ﾿ The Push and Pull Product Distribution Model ﾿ 35

2.2.2 ﾿ The Theory of Distribution ﾿ 38

2.2.3 ﾿ Structure –Conduct-Performance Theory ﾿ 39

2.3 ﾿ Empirical Framework ﾿ 39

2.4 ﾿ Brief History of Nigeria Brewery Enugu ﾿ 42

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 ﾿ Research Design ﾿ 43

3.2 ﾿ Study Area ﾿ 44

3.3 ﾿ Population Of The Study ﾿ 44

3.4 ﾿ Sample Size and Sampling Technique ﾿ 45

3.5 ﾿ Sources Of Data ﾿ 46

3.6 ﾿ Data Collection Instrument ﾿ 46

3.7 ﾿ Model Specification ﾿ 47

3.8 ﾿ Validity ﾿ 47

3.9 ﾿ Reliability ﾿ 48

CHAPTER FOUR

DATA ANALYSIS PRESENTATION AND DISCUSSION

4.1 ﾿ Socio Economic Characteristics of Respondents ﾿ 49

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 ﾿ Summary ﾿ 63

5.2 ﾿ Conclusions ﾿ 63

5.3 ﾿ Recommendation ﾿ 65

References ﾿ 66

Questionnaire ﾿ 68