ASSESSMENT OF PHYSICAL DISTRIBUTION SYSTEM USED BY BEVERAGE FIRMS

1.0 Introduction

1.1 Background of 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 p. 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 task to 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 believing they will always perform at top level all 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 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.

1.3 Aim and Objectives of Study

The aim of the study is to assess the Physical Distribution System Used by Beverage Firms. In achieving this aim, the following specific objectives were laid out as follows:

1. To determine the extent of relationship between the physical distribution management Owerri urban plant and the head office.
2. To review the remuneration pattern for sales and its subsequent effect of performance.
3. To know if there are adequate sales force to cover the sales territories.
4. To find out the best channels for even distribution of the organization productions at to reach the ultimate consumers at a reduced rate.

1.4 Significance of the Study

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.

1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• How effective is the physical distribution system of beverage firms company Owerri
• How adequate is the number of the sales force in covering the sales territories,
• What effect has the numeration of sales men in relation to their performance
• What is the extent of relationship between the physical distribution management Owerri plant and the head office.

1.6 Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: 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.

Hypothesis Two

• H0: Remuneration of salesmen has no effect on their performance.
• H1: Remuneration of salesmen has an effect on their performance.

Hypothesis Three

• H0: 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.
• H1: The relationship between Owerri depot and the head office has effect on the management of customer service level in the beverage industry physical distribution system.

1.7 Scope of the Study

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.

1. The degree of time consumed of the expenses of lectures and other important assignment.
2. Difficulties in securing some of the vital document containing some valid information relating to the subject matter of the research.
3. 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:

Sales Force:

It is called sales personnel or sales representative and serves as the company personal link to the customer (Philip Kotler, 2003).

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)

Compensation:

It is the various ways of manipulation workers salaries which is used as an incentive to motivate them

Sales Force Compensation:

This is an important tool for attracting the quality of caliber of people to do a particular job.

Advertisement:

A public notice offering or asking for goods and services through a wide range of mass media.

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 sales men's efforts and in evaluating their performance (Holson A. Marun 1978, p. 569-570).