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PROJECT TOPIC: THE ROLE OF PHYSICAL DISTRIBUTION IN MARKETING OF BEER PRODUCT IN IMO STATE (A CASE STUDY OF CONSOLIDATED BREWERIES PLC AWOMAMMA)

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CHAPTER ONE

1.0  INTRODUCTION

Production in deemed not complete until the product reach the consumer in the right quantity at the right place and at the right time in good condition. Owning to the proliferation of the companies in Nigeria, it becomes very essential to have an efficient distribution system so that goods produce get to the consumers.

1.1  BACKGROUND OF THE STUDY

Basically the aim of any company is to minimize cost and maximize profit, in other to achieve this a firm will have to identify the high cost of generating center and hence try to reduce them. Distribution  activities penetrate cost, the aim of physical distribution management in firms is to bring to absolute minimum of the total cost of distribution and at the same time achieve high customers services.

The word “distribution” is reference to the retailing or selling functions means a vast firm which is composed o many thousands outlet ranging in size from  the small comers shop to large supermarkets, departmental stores and “cash and carry” warehouse, all of which attempts to supply our customers society.

So physical distribution   is concerned with the movement of raw materials and finished product from the  manufacture to the supplier and customers (i.e. retailers). It is the link between manufacturing and productive on one hand. The simplest distribution one can offer that physical distribution is an integrated set of activities that deals with the management of products within firm and through marketing channels.

Consolidated breweries Awomamma in a Nigerian brewery own by Heineken since 2004 the area one of the running production sites in the country located at Owerri Imo state, the concentration on the low price and of the market.

1.2  STATEMENT OF PROBLEM

Though this research work centers on the role of physical distribution in marketing performance of beer in Imo state, it will not fail to touch on the problem their firm. This problems range from lack of adequate supervision, lack of storage facilities, rising in cost of finished goods to the final consumers to the boarding of “coke” by the channel members.

The channel members are not effectively controlled as a means of which prices of product differ from place to place and urban to rural areas. Another area is in boarding of “coke” and its apparent scarcity, lack of mechanism equipment for easy loading and off loading cannot be left out. The scope of modern communication in small to make impact in business transaction, sometimes the post office delay transaction, the telephone services is confined in the urban area and with few customers contact, very difficult warehousing area few and far apart as a result of reasonable distance between depots and the customers price of production tends to be higher in remove area of Owerri.


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