1.0 Introduction
1.1 Background Of The Study
A product may be the best in the world, but it will be of little use to the consumer of it is not where they wants it. This is concerned with the place where the consumer can acquire it and time utility function when the need arises.
Distribution is the flow of goods from producer to the ultimate user through channels that are made up of middlemen.
Distribution of goods and services has been an important aspect of marketing in our lives. Though, in the past, the usefulness was not immediately recognized.
Distribution is more than a series of channels between production and consumption. It provides a force, a pump in addition to the part along which goods flow.
Distribution in the 90’s is the most important link for getting goods and services from the producer to the ultimate consumer. Even with a soaring inflationary period, which may break all records in the short history of Nigeria, distribution still is vital to the continued existence of business.
In the olden days when barter was prominent, producers conducted the locater transaction (exchanging goods for goods) and other thing rather than for currently themselves, not utilizing middlemen.
When demand increase, producers found out that they did not have enough time, energy and the expertise needed for effective selling. Furthermore, producers increased levels of output enquired that they direct more attention to the production process. At this point, retailers (a type of middlemen) came into existence.
Producers and middlemen found barter of goods most accept other goods as payment and the “other” goods may not fit the seller needs.
As the economy continued to advance, retailers began to specialize, some for instance offer goods and other, clothing, in addition, wholesaler (another type of middlemen) emerge to meet the retailers need to draw from a large number of producer. This was how middlemen came into the scene as links between producers and consumers. As time went on, there was the need to have agents, distributors, brokers etc., springing from the march roof of wholesalers to be recognized as independent, entering the channel of distribution.
The Nigeria Brewery Limited mentions glory as one of the oldest breweries in the country. It was formed in 1946 with the commissioning of its Lagos branch. Nigerian and some foreigners own it. Before the indigenisation policy precisely, there are 40% Nigeria equity participation. After the indigenization policy precisely in 1978 it raise to 60% equity participation. This represents about 35,143,843 shares out of the total issued and fully paid shares of 58,560,000 at 50k each.
Nigerian Breweries Limited has a total labour force of about 9,700 but that of 9th Mile Corner, Udi branch, has about 500 labour forces. One of the major features of Nigeria Breweries Limited, 9th Mile Corner, Udi Branch is that it is the smallest of all the plants NBL while it is the biggest in comparison with the competitors in the State.
1.2 Statement Of The Problem
The first step in channel selection is market definition that might by what and where are they? The answer can be elusome. It is also essential.
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