AN ANALYSIS OF IMPACT OF WAREHOUSING ON THE EFFICIENT DISTRIBUTION OF SOFT DRINKS

1.0 Introduction

1.1 Background of the Study

Marketing is not complete until the product produced get to the final consumer.

Great wonder say that increasing numbers of people are questioning whether distribution has a useful role in marketing of products. Since consumers can as well go to the shop or to the manufacturers to buy the product without distributing them to where they are living hence, using direct channel.

Currently, modern marketing concept holds the consumers supreme, hence effort desires, preference and creating avenues to satisfy them profitably.

People use to think that marketing commerce only after production of goods and services when the physical movements of such products are being performed as well as promotion, advertising, personal selling etc.

As soon as a firm acquire some inventories, the need to have some storage facilities in the form of warehouses or stores will arise in addition to have distribution centers from where such inventories would be replaced.

Technological advancement has equally shortened the gap between the time of manufacturing physical products or inventories and the time of consumption in terms of efficient transportation and effective communication systems.

But these recent positive trends not withstanding the need for warehousing globalization of the world economy and the increasing competitive posture has consistently made the continued warehousing management an inevitable venture.

A warehouse performs the functions of receiving the goods, sorting, storing, displaying, selling and even the shipment of these goods to the customers profitability.

Warehousing deals with the accumulation of product from time to time for the purpose of equalizing supplied over a certain period of time.

The analyzing of the impact of warehousing on the efficient distribution of soft drink in Imo state calls for understanding of the consumers needs and wants.

One thing is to produce a product available at every point in time so that consumer will not be searching for ways of satisfying their needs thereby left with the only option of patronizing the competitors. One of the assumptions that underlying products concept is that the major of organization is to keep improving manufacturing and distribution efficiency as well as lowering price to attract customer patronage.

Onuoha J. Kelechi (2007). Similarly warehouses are established near the markets in order to efficiently facilitate consumers satisfaction through increased customer service.

Brief History of the Nigerian Bottling Company (Nbc) Plc

Nigerian bottling company is a multinational corporation Dr. John Styth Robertson; a pharmacist first introduced coca-cola in his home town in Atlanta Georgia, United States of America in 18th May 1986. Mr. Frank, Mr. Obinson, Dr. Robertson's partner and book-keeper gave coca-cola its first name. He also designed the following script that distinguishes the trade mark. People got to know coca-cola through Dr. Robertson's advertising and marketing activities.

Basing out facts on coca-cola's information bulleting, coca-cola in Nigeria in 1953 when the NBC opened its first plant in Lagos.

Remarkably, that was the genesis of interesting story of growth and development particularly during the past fifteen years. As it stands now NBC is today Nigeria number one bottler of soft drinks, selling more than (7) million bottles per day. More still, this feature is simultaneously with opening of new plant in various parts of the federation. Fanta orange is by far the number 1 best seller in the orange segment, likewise coke in its segment in Nigeria. Other products bottled by Nigerian bottling company Fanta Soda, Sprite, Fanta Lemon, Fanta Chapman and Krest Bitter Lemon.

In addition, NBC has the largest private owned fleet of delivery trucks, pick ups and cars to more than sixty thousand (60,000) dealers in many parts of the country.

NBC is also largest manufacturer of carbon dioxide (Co2) and this is used for carbonate soft drinks.

Finally, worthy to mention is the fact that NBC employs over (60,000) sixty thousand Nigerian in all field of operation. This is the history of coca-cola NBC in Owerri Imo state.

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1.2 Statement of the Problem

For several years, Nigerian bottling company Plc of its inception operates under dynamism of marketing environment. For so many years now, NBC has been the leading company in the soft drink industry. However, the entry of other soft drinks firm has posed a threat to the operations and satisfactions of its target market. Being the case therefore, the researcher wants to study the operations of the NBC.

To that effect, it has been alleged that ineffective warehousing has been associated with the operation of this company.

The problems are as follows:

1. There is insufficient warehousing provision
2. Wrong location of warehouses associated with the company affects the sales performance.
3. Dearth of competent warehousing managers in the company.
4. Relegation of marketing research efforts disturbs the effective and efficient distribution of soft drinks however by the end of this investigation, we shall know if it is facing the problem so alleged.

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1.3 Objective of the Study

With response to the alleged problem facing the Nigerian bottling company Plc. The researcher embarks to find out the impact of warehousing on the efficient distribution of soft drink of NBC.

Therefore, the specific objectives are stated here as follows:

1. To find out the relationship between warehousing and effective distribution of NBC soft drinks.
2. To find out that if warehousing has significant impact on the sales performance of the NBC soft drinks.
3. To know the cost implications of warehousing on the profit level of NBC
4. To ascertain which among the channel warehousing facilities.
5. Finally, to recommend a more effective and efficient way of distributing soft drink of the NBC.

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1.4 Research Questions

For proper investigation of the study the following questions are put forward

• What is the significant relationship between warehousing and effective distribution of soft drink of NBC?
• Does warehousing have any significant impact on the sales performance of the NBC?
• What is the cost implication of warehousing on the profit level of NBC?
• Which among the channel members is responsible for the provision of warehousing facilities in your company?
• What would you recommend for a more effective and efficient means of distribution of soft drinks after thorough examination of the prevailing situations?

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1.5 Statement of Hypothesis

• Ho: There is no significant relationship between warehousing and effective distribution of NBC products.
• Hi: There is no significant impact of warehousing on the sales performance of the NBC products.
• Ho: Warehousing does not increase the unit cost of soft drinks of the NBC.
• Hi: Warehousing does not play a significant role in the achievement of the company's market share.

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1.6 Significance of the Study

This research work on analysis impact of warehousing on the efficient distribution of soft drink of Nigerian bottling company (NBC) is significant to the company.

This is because Nigeria bottling company occupies a sizeable portion of entire soft drink industry of the Nigeria economy.

Moreover, the study will help the company in having a competitive edge over all other soft drink firms as the level of competitive performance of other brands are seen in the market. Besides, the research is useful in such a way that it will be of immense benefits to students who may be interested in this area of study.

Finally, marketing practitioners equally enjoy some utilities in the work since the questionnaire and interview will be made to the field staff work. Therefore, wealth of experience are obtained in the data, gathered, analyzed and presented.

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1.7 Scope of the Study

This research work essentially deals with the analysis of impact of warehousing and efficient distribution of soft drinks of Nigerian bottling company (NBC) in Owerri metropolis, the researcher focuses only on the Nigerian bottling company in Owerri. This means that the researcher did not recognize any other soft drink firms Owerri metropolis.

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1.8 Limitation of the Study

With respect to the limitation of the study, there was problem of inadequate resources which would have been helpful to expand the study. Other problems that limits the study are identified:

1. The attitude of the respondents in the area.
2. There was also problem of gathering relevant information on the real motive behind the study
3. The researcher also finds it difficult to obtain meaningful information's from the customers of Nigerian bottling company (NBC), for instance some customers were not co-operating where as others were not at home when the researcher visited.

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1.9 Definition of Terms

For easy understanding of terms adopted by the researcher, the following terminologies are hereby defined as follows:

Marketing:

This is a social and managerial process by which individuals and groups obtained what they need and want through creating and exchanging value with others.

Market Research:

This is concerned with investigation into an entire marketing programmes including product design, pricing distribution, promotion etc.

Market:

The actual and potential customers who wants or need a product and who are willing and able to exchange something for it.

Distribution:

This deals with the planning implementing and controlling the physical flow of raw materials, final goods, service and related information from points of origin to point of consumption to meet customer requirement at a profit.

Warehousing:

This involves receiving, transfer, selection, shipping and storage of goods to the appropriate location in the warehouse.

Warehouse:

This is a place where finished goods are stored until they are sold.

Product:

A goods service or idea for which customers will exchange money or something else value.

Marketing Channel:

A system designed to more goods and services from producers to consumers which consists of people and organizations supported by various facilities equipments and information resources

Marketing Intermediaries:

People or organizations that assist in the flow of product in a marketing channel.

Retails:

Intermediaries that sell to final customers. They purchase goods from wholesalers and in some case directly from the producers.

Wholesalers:

Intermediaries that perform a variety of marketing functions more goods and services through the channel to retailers and organizational customers.

Transportation:

The provision and adequate management of the right quality and quantity of vehicles for the evacuation of finished goods from the factory, on plant warehouse to firms various market.