The whole write up reveals critically the importance of distribution network and customer service in wholesale and retail organization. A case study of Fan Milk Nigeria Plc, Ibadan. It provides the advantages to be derived from operating a sound distribution network scheme in industry. Further, an extensive review of related literature was undertaken while various method of data collection were used to obtain the necessary information that is the require for the purpose at hand. Finally, recommendation are forwarded which are researcher feel will help Fan Milk Nigeria Plc and other manufacturing companies in general to improve the qualities of their products.
LIST OF TABLES
- Age distribution respondent
- Sex respondents
- Marital status of the respondent
- Education qualification
- Classes of people working
- Year of experience
- What are your intention of using middlemen
- What role does middlemen play in your organization?
- What do you think can motivate you in handling the product of the company?
- What are the method adopted by this company to gather information
on how customer react on their product?
- What are the improvements of technology in the distribution of the
- Do you take title of the good handle?
- If yes or No what category of middlemen does you belong?
TABLE OF CONTENT
List of tables v
Table of contents vi – vii
1.0 Introduction 1
1.1 Background of the study 1
1.2 Statement of the problem 1
1.3 Objective of the study 2
1.4 Research question 2
1.5 Research hypothesis 2
1.6 Significance of the study 3
1.7 Scope of the study 3
1.8 Limitation of the study 3 – 4
1.9 Definition of terms 4
1.10 Historical background of the case study 4 – 5
2.0 Literature review 6
2.1 Distribution channel and the structure
2.2 Participants in distribution channel
2.3 Function of members of chain of distribution
2.4 Method of transportation, distribution network
2.5 Cost of distribution
Procedures study, population and sampling
3.0 Study sample
3.1 Sample size
3.2 Sources of data collection
3.3 Questionnaire design analysis
3.4 Method of data
4.0 Data presentation analysis and discussion
4.1 Interpretation of hypothesis 28
5.0 Summary of finding 29
5.1 Conclusion drawn from finding 29
5.2 Recommendation based on conclusion 29 – 30
Appendix I 32
Appendix II 33 – 34
Organizational chart 36
Prior to industrial revolution of 19th century the system of distribution cannot be clearly distinguish because of system that was practice then known as “trade by barter” however the advent of industrial revolution in 19th century up to date has been able to transform some small scale business organization.
Due to the complexity of the business organization there is need for sophisticated distribution network in order to move good and service to where it will be needed. Thus for any organization to achieve its set objectives the management of such firm need to identify some intermediaries that will channel the distribution network.
Some intermediaries such as wholesalers and retailer buy in bulks some acquire the little of the goods and service some other middlemen such as stock broker and stand as a representative customer and more negotiate or behalf of the goods and service.
The agents are also called middlemen. The entire objective can only realize through the role the marketing play in modern economy.
Role of marketing: – The role of marketing play in organization cannot be left out in this introduction similarly the firm sales force and advertising decision depend upon how training and motivation that the dealer is in need of.
Additionally, in order for the role of marketing to complete and for the organization to attain the set goals, the company must embark on long term commitment.
- BACKGROUND OF THE STUDY
Fan milk was incorporated in November 1961 by Dr. Daniel and its diary plant went into production on the 3rd of June 1963. Its corporate headquarters in Ibadan Eleyele Industrial Estate and another factory in Kano industrial estate with distribution centre nation wide Fan Milk Plc is the producer of the best diary food in the number for all products.
Fan milk production is well organized in all part of the country. The firm organizes its distribution process by making sure that their production is seen even in the street. The fan milk include diet flavoured drink, fanchoco flavoured drinks, fan ice flavoured, fan lolly drink yogo and so on and sofoto
1.2 STATEMENT OF THE PROBLEM
There has always be contention among the distribution network for wholesales and retails organization in the traditional schools of thought. This has lead to finding out the following question. They are as follows: –
- Whether the distribution network will improve the activities of wholesales and retail distribution prices.
- Whether the distribution available is adequately or inadequately for wholesales and retail organization
- What other distribution techniques is highly recognized in distribution process.
1.3 OBJECTIVE OF THE STUDY
The major objectives of this project are: –
- To examine the organization policy and goods is relation to distribution network, management and customers service in wholesales and retail organization.
- To examine how the company has been to implement and carry out the problems that is facing distribution channel and providing a relatively lasting solution to the obstacles
- To emphasize to what extent the workers of the company are aware of the management and organization distribution.
- To find out how many competitors distribution network has affected the activities of the company distribution strategy in the market.
1.4 RESEARCH QUESTIONS
It is important that some hypothesis has been tested for the purpose of this study in order to determine the effectiveness of distribution network to wholesales and retail organization.
In this regard, the following questions shall be tested, they are: –
- Does distribution network improve the supply of goods and service by the wholesales and retail organization?
- Is distribution network limited to intermediaries only?
- What are the strategy used by the intermediaries to improve the supply of goods and service?
1.5 RESEARCH HYPOTHESIS
For the purpose of this research some state of hypothesis are formulated, they are: –
- Null hypothesis by Ho
- Alternative hypothesis represented by Hi
- Hi: There is relationship between distributor network and customer service in wholesales and retail network and customer service in wholesale and retail organization.
- Ho: Distribution channel should not be delimited
Hi: Distribution channel should be delimited.
Hi: Distribution channel improve wholesale and retail organization
Hi: Distribution channel does not improve wholesale and retail organization
1.6 SIGNIFICANCE OF THE STUDY
This study will not doubts go in long way to assist a potential business manager of Fan Milk Plc in order to boost the distribution process of the organization and also help ahead and in term of decision making.
The study will also serve as aid of Fan Milk Plc in the process of enhancing the performance of management in the area of product and marketing concept.
Also the study will enable the management or marketing department of many company like that of Fan Milk to expanding their distribution performance in small area.
1.7 SCOPE OF THE STUDY
The study will resolve round the state objectives and will be limited in scope to the distribution network of Fan Milk Plc. The study will also examine critical process of distribution strategy by wholesales and retail organization.
However, the scope of this project work may be restricted to Fan Milk Plc in order to guarantee convenience.
1.8 LIMITATION OF THE STUDY
Negative attitude of respondents is seen to be one of the greatest problems where respondents may not collect the questionnaire and these of some that would still be. The questionnaire would not bother returning them enough, above some respondents would not disclose some fact about the issue being discussed and this hamper the study for the issues at hand.
Some executive would be highly relevant to part away with useful information of the company activities about the distribution procedure.
This kind of attitude creates many problems for the researchers because he/she has not been able to gain access into such relevant information.
The greatest force able limitation are these cost. This is because the expense to be made in preparing, printing and administering of questionnaire to gather information would be a huge amount of money.
Other limiting factor is time as the period of the coincide with the school academic work having to combine, traveling, collecting information writing etc with academic work especially as the final exam lurk around the corner.
1.9 DEFINITION OF TERMS
Intensive distribution: Producers of convenience goods are common raw materials typically seek intensive distribution network that is stocking their product in as many outlet as possible, these must have place utility.
Exclusive distribution: This is where a limited number of dealers are granted the exclusive right to contribute the company’s product in their respective territories it often goes with exclusive dealing where the manufacture require these dealers out to carry competing live. Exclusive distribution is found to have extent in distribution of new automobiles, some major appliance and some women’s appeal brands.
Selective Distribution Network: Between intensive and exclusive distribution the use of more than one and less than all the intermediaries who are willing to carry a particular product. The company is that use this kind of network does not have to dissipate effort over man y bullets including many original ones. It can therefore develop good working relating with the selected middlemen and expect that is better than average selling effort.
Brokers: An agent who does not have a direct physical control to the goods in which he deals but represent other buyers or sellers.
Marketing Segment: This is referred to as different individual market.
Marketing Mix: This can be seen as mixing together of the marketing variable (product, price, promotion and place). In the right proportion that will enable the marketing programme to be carried out in a successful manner at any time.
Marketing Modification: These are strategies of altering product characteristics such as quantity, performances of appearance in order to suit consumer.
Marketing Segmentation: This is the process of grouping the real and potential consumer for a commodity or services that posses common characteristics so that the market can formular a marketing programme (strategy) that will reach existence.
Jobber: This agents buys security from his principal and sell in his own name.
Market: Market is refers to an organization of all persons and institution concerned in the exchange of any commodity and who are always kept in concept.
1.9 HISTORICAL BACKGROUND OF THE STUDY
Fan Milk Nigeria plc was founded in 1960 by a Danish Merchant and an Industrialist Erik Emborg with a recombination plant at Ibadan a distribution centre in Lagos with less than 30 employees.
In the 1970s Fan Milk introduces yoghurt milk, Ice, lollies, ice cream and new tetra packaging technology. The new products became very popular in the market and generated the financial strength to set up further depots and in 1981, a second recombination plant in ranco came up.
At the outset, the foreign partner owned 96% of Fan milk plc, when the government introduce the Nigeria enterprises promotion Decree in the late 1970s. Fan milk plc increase its capital and invited more Nigerians to invest which created a 60% Nigerian participation in the company.
During 1980s and 1990s import restriction economic difficulties, devaluations and shortages of fuel weakened Fan Milk plc. In 1998 the foreign partner and the industrialization fund for developing countries (Denmark) agreed to an infusion of capital which let the company restructure finances refurbish cold rooms, increase the number of depots and introduce a product (Tomico) a fruit drink which became an instant success in the market.