CHAPTER ONE

INTRODUCTION

1.0 BACKGROUND OF THE STUDY There is this notion that production is incomplete until the products get to the final consumer. Hence, no matter what firms do on other three marketing strategies (the three p’s) nothing happens until the goods and services are distributed. Distribution is one of the major areas of marketing mix that concerned with the movement of goods and services from point of production to the point of consumption. There are several definitions of distribution by different authors or marketing experts. Thus: According to Onuoha J. K. (2004:92) distribution is defined as the flow of title to goods and services as they move along the channel of distribution from point of production to the point of consumption. It ensures that produced goods and services are made available to the consumers in their most economic manner. Kotler and Anstrong (2004:419) defined distribution as the planning, implementing and controlling of the physical flow of raw materials, final goods and services and related information from point of origin to point of consumption to meet customers requirements at a profit. Goods and services are delivered to the right customers, at the right place, at the right time and at the right price. Distribution aims at gathering goods and services to reach the consumers through intermediaries. It involves not only physical movement and handling of products, but the transfer of ownership as well. By the use of intermediaries or channel of distribution, the goods produced will get to the consumers. The term channel of distribution is seen as all the institution or individuals that assist in exchanging goods and services as they move from one point to the other. Apart from physical transfer of goods, it entails the transfer of title to products from one point to another. The channel of distribution is sequentially arranged in such a way that it achieves set objectives. Such as producer – consumer – producer – retailer, consumer etc for consumer goods, while industrial is producer – industrial user, producer – industrial distributor – industrial user. This research work deals with the analysis of marketing distribution strategies of some Nigerian companies. Nestle food company is a company that was established in Chine in 1990 where they produce powered milk and infant formula. They manufacture their products in more than 60 countries of the world. The manufacturing system of Nestle safeguards, sustains multifarious source, plant and planning parameters for the same item generated at various locations. The manufacturing system preserves to generate a complete picture of manufacturing operation. This involves monitoring products and element from raw materials through the finished goods stage. Nestle food company is located in Lagos where out some of activities or functions. Nestle has diversified from the traditional food related products, such as fairly products, break fast related products, such as fairly products, breakfast cereals or chocolate and ice cream and nutritional solution as well as beverages and bottle water. Nestle, one of the oldest of all multinationals companies has grown from a two products company focusing on infant nutrition to one of the largest food companies worldwide. Nestle company in other to carryout their activities and operations effectively and efficiently for the purpose of achieving its objective, they make use of different distribution strategies in order to ensure that produced goods and services are made available to its consumers.

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