Problem Of Distribution Channel In Marketing Consumer Good In Food Specialties (Nigeria) Limited
Abstract of Problem Of Distribution Channel In Marketing Consumer Good In Food Specialties (Nigeria) Limited
The issue of distribution channels in marketing consumer goods has become a problem in Nigeria. The aim and objective of this project therefore, is to find out the loopholes that is associated with distribution of consumers good so that an amicable solution can be proffer to it. In the course of carrying out this study, I intend to use both primary and secondary data as well as the distribution of questionnaires in order to make my finding a successful one.
Chapter one of Problem Of Distribution Channel In Marketing Consumer Good In Food Specialties (Nigeria) Limited
1.1 INTRODUCTION
Food Specialties (Nigeria) limited is one of the nation’s leading food processing marketing and distribution companies. It’s head office is situated at 10/21 industrial avenue, Ilupeju, Lagos. While her modern factory is at Agbara Industrial estate in Ogun state. The company’s modern distribution center is at Otta, also in Ogun State.
The company has branch office is following town in Nigeria etc. the Area Sale Manager who head these branches help to ensure that food specialties goods are distributed into every corner of the country.
The company state operation in Nigeria over 50 years ago with importation of Nestle product into the country the product gained rapid popularity and acceptance by consumer in Nigeria because of their, high quality. Among these high quality products are Maggi cubes, Nescafe, milo, Gactogen, Nan, Nido and Cerelac.
The company was by them known as Nestle Products Limited which was a subsidiary of Nestle South Africa, Switzerland. The company Food Specialties(Nigeria) Limited was formally incorporated in Nigeria in 1969 as a private company. It was about this time that Food Specialties (Nigeria) Limited started to give serious consideration to setting up a manufacturing unit in Nigeria in order to develop the volume of trade it’s products were enjoying as well as to exploit new business pastures.
In 1971 the company established a factory at Illupeju industrial Estate in Lagos which started in the same year to press and wrap it’s popular Maggi cube locally. Facilities for the production of packaging materials were added to the plant at the same time.
In 1975 Food specialties (Nigeria) Limited started to broaden it’s equity base by offering for sales to Nigerian citizen and organization 40% of it’s share capital in compliance with the Enterprise Promotion Decree of 1972.
The company formally became a public company in 1978 when it’s authorized share capital was increased from N5m to N7.5m.
At the same time in compliance with the Enterprise promotion Decress of 1977. The company sold further 20% of it’s share to increase the proportion of share of Nigerian holding to 60% with the continuing growth in demand for food specialties products the company took the far-sighed decision in 1979 to expand it’s industrial base by acquiring 16 hectare of land for the construction of a food processing plant at Agbara Industrial Estate on the Badagary Express way.
The factory which was build at a cost of N30m was commissioned in February 1952. Food specialties (Nigeria) Limited also decided to build a modern distribution center at the cost of N5m at Otta. As a result of backward integration, Food Specialties (Nigeria) Limited established in 1954 a subsidiary company, Agro Development (Nigeria) Limited in Benin, Kaduna. For the production of local raw material like maize, soya bean and sorghum. Food Specialties (Nigeria) Limited produce the following range of products at Agbara: Milo, Nescao, Maggi cube, Maggi Super, Golden Morn, Cerelac maize, Nutrient and Choco milo. She also import Nido, Nescafe, Nan and Hactogen into the country for distribution.
According to the Managing Director Mr. Rolf Frei, the company made N23.42 million profit before tax in 1986 which represented 7.23% increase over the previous years record of N21.83m.
1.2 PURPOSE OF THE STUDY
i. To examine the company policy and objective of physical distribution with the view of finding the extent to which the objective have been achieved.
ii. To examine the adequate of the company physical distributions strategies or method for the realization of the objective.
iii. To make recommendation based on the finding to the company for a competitive advantages.
iv. To find out if there are other better methods the company could use other than the present method of distribution.
v. To see the opportunities of otherwise that face the company in her present centralized method of storage of processed good etc.
1.3 RELEVANT OF THE STUDY
Distribution channel are very important organs of product circulation. A company like food specialties (Nigeria) Limited cannot distribute her products nationwide without using distribution channels.
This study will be of great help not only to food specialties (Nigeria) Limited but also other organization that are involved in distributive business in Nigeria as it will make recommendation on how cost of the products could be lowered by using better channel of distribution.
1.4 HYPOTHESES
i. Ho: To test if the service rendered by the company to the customers are adequate.
Hi: To test if the service rendered by the company to the customer are not adequate.
ii. Ho: To test if the company has no transportation problem.
Hi: To test if the company ahs transportation problem etc.
1.5 PROBLEMS ANALYSIS AND HYPOTHESES
It is the wish of this study to analyses such problem that face food specialties in the process of satisfying consumer needs at a profit in Nigeria.
Does the company have problem in the distribution of her good in Nigeria?
What method of transportation does the company use?
Does the company use several warehouse in the country or does it’s have any problem with centrally managed distribution channel?
What service does the warehouse provide? Are they adequate? Etc.
1.6 METHODOLOGY
This study will use both primary and secondary data in the analysis. It is the wish to the study to make use of questionnaire through self-administered techniques.
1.7 SCOPE OF THE STUDY
This study is aimed at the study of the problem of distribution Channel in Marketing Consumer Good in Food Specialties (Nigeria) Limited.
The study is a marketing audit type of study which aim at evaluating the company’s operation with regard to its product distribution, customer services, selling etc.
1.8 RESEARCH LIMITATION
This study is aimed at analyzing the problem that face food specialties in the distribution of her products.
Attempt will be made to limit ourselves to the use of food specialties staff in some state and the company’s distributor’s, sub-distributor’s and direct customer and its environment in the study.
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