1.1 Introduction
Physical distribution is a very important aspect of distribution activity as it created place and time utility and set the stage for possession and title utility. All gained towards customer’s satisfaction. Based on this therefore, there is need for a careful handling of the physical distribution functions for a successful operation of sachet water industries. Production and sale of sachet water in Nigeria, is presently a lucrative business, therefore many people are involved in the production and marketing of the product. Water is one of the most important as well as one of the most abundant compounds on earth, and is vital to the survival of any organism (Tortora et al., 2002). Water quality can change during its transportation or where it is stored (Hoekab, 2010). There may be differences in water quality, availability, and education-related practices in schools by demographic characteristics (Cradock et al., 2019).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.
1.2 Background of Study
Sachet water production in Nigeria started in the 90s and today the advancement in scientific technology has made sachet water production one of the fastest growing industries in the country. There has been an increasing trend in the production, marketing and consumption of locally produced sachet water (Muhammad and Dansabo, 2018) popularly known as pure water in Nigeria both in the urban and rural areas of Nigeria and so many parts of the continent. Continuous increase in the sale and indiscriminate consumption of packaged drinking waters in Nigeria is of public health significance (Oyedeji et al., 2010).
Production is uncompleted until the good get to the final consumer whom they are meant. A typical firm will deliver or discover that the consumer for its products are scattered abroad. The firm decision to distribute its products directly through own sales outlets or indirectly through marketing intermediaries such as wholesale and retailers alone is not enough to get the goods to the consumers. The firm has to ensure that the product is actually available or make available to the distribution at lets.
Adequate core has to be taken of the products minimize losses or damages, and commensurate customer service have to be given in order to achieve customer satisfaction and increase patronage. In order management of the flow of products from manufacturer to consumer with aim to achieve consumer satisfaction and goal of the firm, physical distribution must be properly channeled to this respect. The increase emphasis given to the concept of the 1950,s is a practical example of its immense contribution to the successful achievement of marketing goals. Physical distribution is just how companies store; handle more goods so that they will be available to consumers at the right time and place.
Consumers’ attraction and satisfaction are highly influence by the seller physical distribution capabilities. As such the issue of physical distribution is important in business endeavour. An executive physical distribution which results to a reduction in cost of physical distribution will lead to a reduction in production cost or product price, which will invariably head to the attraction of many price conscious consumers.
In Nigeria and as well as most other nations, industries are localized or concentrated in few industrial cities or layout while the consumers or their products are scattered abroad. Efficient transportation and location of sales outlets will enable industries to make their products available to consumer living very far. Efficient transportation and physical can give a company advantage in being close to these consumers.
Physical distribution in the sachet industries should be intensive they should stock their products in as outlet are possible. The goals must have place utility. Physical distribution should be intensive because consumers are not efficient distribution of the product is very important to gain marketing goals and to compete efficiently and effectively too.
Therefore, in Enugu Metropolis where the research was carried out, the activities that was conducted is to know the effectiveness of physical distribution of Charis sachet water.
1.2.1 Historical Background of the Company
Charis sachet water industry one of the leading name in sachet water industry in Enugu Metropolis. The company is located in heart of the commercial city of Enugu J.E Collince company was establishes over a decades with improved capacity physical distribution of their products. The company has so many distribution outlets and target geographical areas. The J.E. Collince the makers of Charis sachet water was among the largest sale sachet water in the industry in Enugu.
The profitability and success of the company can be clearly traced as they are heavily patronized in the competitive business. The company is located in heart of Enugu metropolis (River Asata layout). The company has brand name Charis water which the production site is in No. 3 Mildland Avenue, Asata River layout Enugu.
1.3 Statement of Problems
Investigation revealed that sachet water salesmen retributively raise the cost of each buy of sachet water sold to intermediary, market thus reducing their margin sometimes the degree of the who sales margin after the final customers. In some cases, the customers do not get enough of the products at the right time and in right quality.
In the case of chairs sachet water industry they don’t have enough for their product. Nevertheless for them to compete effectively and efficiently in the other satchel water Company’s thy need to have enough outlets for their products.
In most cases the salesman direct some products already allocated to the company’s more so, the distribution of Charis sachet products have a direct relationship with sales turnover it enjoys. A negative response to any of these points will indicate that there is deviation from what should normally obtain.
1.4 Aim and Objectives of Study
The aim of the study is to determine the effectiveness of physical distribution of Charis sachet water in Enugu Metropolis using E.J Colliance Company as a case study. In achieving this aim, the following specific objectives were laid out as follows:
- To analyze the present physical distribution system with the aims to accessing its level of efficiency is another point;
- To determine the extent to which the distribution of Charis dates with the sale being made; and
- To study the physical distribution activities of Charis sachet water in Enugu and try to find out if these activities are well performed as expected.
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:
- Are customers satisfied with the present level of physical distribution service of Charis?
- Does Charis have enough distribution outlets to satisfy the customers?
- Does the distribution strategy questionnaire regular and fulfill the issue of time lines is it effective in terms of cost and distribution objectives?
- Is it from the produce to the customers or with the use of intermediaries?
- What is the distribution objective of Charis?
- What presentation of market is Charis serving?
- What is the type of Channel structure used by Charis?
- What is the size of demand for Charis waters?
1.6 Research 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: Charis water does not have wide demand in Enugu metropolis
- H1: Charis water has very wide demand in Enugu metropolis
Hypothesis Two
- H0: Charis water are not distributed to every point where they are needed at the right time and quantity
- H1: Charis water are distributed to every point where they are needed at the right time and quantity
Hypothesis Three
- H0: Customers are not satisfied with the present level present level of physical distribution service they receive
- H1: Customers are satisfied with the present level of physical distribution service they receive
1.7 Significance of Study
The findings of this study will help the management and distribution of this company in improving their business activities. Customers will also benefit from this efficient physical distribution in that Charis product which will be made more ready available to them at all time.
Non-durable products such as Charis sachet water have to be supplied as at when needed. Any short fall in performance will reduce the level of customer service. Thus it become important to study the physical distribution system and benefit from this effective they are and uncover and defects inherent within the system and then recommend measures to reduce or eliminate these defects.
This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.
1.8 Scope of Study
The scope of the research is focused on the effectiveness of physical distribution of Charis sachet water in Enugu Metropolis using E.J Colliance Company as a case study.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
1.10 Definition of Terms
Transportation: Is the movement of goods from the point pf production to the point of sale.
Storing: Is the marketing function of holding goods. It provides time utility.
Inventory: Is the amount of goods being stored.
Physical Distribution: The transportation and sorting of the goods.
Warehousing: Is a place for load and unloading of products both in the central stores and the depot of Charis waters.
Communication: It is the process by which information is passed by a previously accepted symbol.
