A STUDY OF THE PRODUCT DISTRIBUTION SYSTEM

A STUDY OF THE PRODUCT DISTRIBUTION SYSTEM IN THE BREWERY INDUSTRY (A CASE STUDY OF CONSOLIDATED BREWERIES PLC)

ABSTRACT

This project which is a modest attempt to study the distribution system in the brewery industry taking consolidated breweries plc Awomama, brewery of “33” export large beer as a case study has been painstaking and systematically surveyed and analyzed by the researcher. As mentioned in the statement of purpose under chapter one, the main subjection of this study is to identify distribution problem and prospect in the beer market and the bight of both make some useful suggestions in that connection the researcher commenced this work by taking a quick and cursory look at the brief history and background information of the company chosen as the case study. Therefore the researcher highlighted the problems involved in the distribution operation of the company as well as other related marketing activities that have to do with distribution.

TABLE OF CONENTS

Title page——————————————————–i

Approval page ————————————————–ii

Dedication——————————————————-iii

Acknowledgement———————————————-iv

Abstract———————————————————-v

Table of contents———————————————-vi-vii

CHAPTER ONE

An overview————————————————-1-2
- A brief history and background information of consolidated breweries plc————————————————-2-5
- Statement of the problems———————————5-7
- Objectives of the study————————————–7-8
- Research question——————————————-8-9
- Significance of the study———————————–9
- Scope of the study——————————————9-11
- Limitation of the study————————————-11-12
- Definition of terms——————————————12-13

CHAPTER TWO

Literature review——————————————-14
- Distribution channel define——————————–14-16
- Channel structure——————————————-16-18
- Distribution channel activities—————————–18-20
- Component of the subsystem—————————–20-36

CHAPTER THREE

Research methodology————————————-37
- Questionnaires———————————————–37-40
- Personnel interview—————————————–41
- Observations————————————————-41-42
- Desk research————————————————42
- Sample of plane.———————————————42-43
- Method of data analysis.————————————43-44

CHAPTER FOUR

Presentation and analysis of data————————-45-50

CHAPTER FIVE

Summary, recommendations and conclusion———–51
- Summary of findings—————————————51
- Other findings———————————————-52-53
- Recommendations—————————————–53-55
- Conclusion————————————————–55

CHAPTER ONE

1.0 INTRODUCTION

Looking at the topic “A study of the product distribution system in the brewery industry”. A case study of consolidated breweries plc. Breweries of the famous “33” Export large Beer. Shows that it is topical both in time and place.

To be candid the image of our breweries is not what one should the proud of when compared to what is seen in the advanced countries.

The distribution system has been the most chaotic and to a large extent responsible or the increasing prices of beer. Marketing of products has two divergent but related processes the first of those processes deal with the search for and stimulation of the buyers while the second deals with the physical distribution of goods. Experience has shown that due to increased competition for market entrepreneurs and their marketing execution have assigned most of their time not only in search and stimulation of goods with this function in mind. They are focusing their attention on developing a mix of products, prices, promotion and channels that would keep demand high, they have viewed physical distribution activity of making goods available to the buyers supportive and subsidiary. An effective customers services physical distribution, a public limited liability company like the consolidated breweries plc is a weak position or state when it receives order for beer but no means of deliver them.

A BEER HOSTORY AND BACKGROUND IFORMATION OF CONSOLIDATED BREWERIES PLC WITHY PARTICULAR REFERNCE TO “33” EXPORT LAGER

The research choose the above heading in order to differential between the two division the constitute the vast consolidated breweries plc.

Namely:

Beer division (“33” export lager beer).
the soft drink division (Hi- malt)

The reason for the differentiation is to create the beer division, while the research does not intend to neglect the importance of soft drink industry and its distribution system for fear of inflating the research paper, I feel that the out come of my criticisms on the distribution system in the beer section will also be beneficial to the soft drink division. The consolidated breweries plc is a public limited liability company formed since 1983 under levities groups of companies management.

The Brewery is located at Km 24 Owerri/ Onitsha feral High way. The first chairman of the company was Chief J.O Udorji (CFR). The retired from the board with effect from December 31 1996 after piloting the affaires to this company for twelve (12) eventful years including 4 years after it’s merger with continent breweries ltd.

In those 12 years, the company had witnessed tremendous growths.

For instance, turnover has risen from less than N 26 million in the first year of operation to N1. 66 billion in December 1996, while profit before tax rose from less than N 4 million to N 90.39 million. The current chairman of the company’s prof (Mrs) Oyin Odutola OlUrin. The company’s raw materiel procurement is 60% locally and 40% foreign and has a normal production capacity of ill, 520 creates prepay.

There is a marketing department with a well defined organizational structure. The consolidated breweries plc has different sections which effect their sales.

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