Statistical Analysis On The Price Of Roofing Sheet In Nigeria
Background of the study
Every commodity produced or service rendered in an economy can be conceived of in terms of a price and quantity relation. Consequently, every commodity or service carries a price tag. These prices vary overtime in response to the influences of demand and supply and government policies among other things. The measurement of price level changes is desirable to determine its magnitude, and to provide current data for the computation of measures of the growth of the economy such as rates of growth in per capital GDP, Consumer Price Index, Cost of Basic Needs and inflation rate. Nigeria has for many years been over dependent on conventional and imported building materials which are rather costly and beyond the affordability of the common man. The building industry in Nigeria is encapsulated with shortage of affordable building and construction materials. People have difficulties building houses of their own because the costs of building materials are astronomically high. A look inward reveal that Nigeria has a good number of agro-allied wastes, industrial wastes and mineral deposits such as rice husk, saw dust, coconut fiber, palm kernel fibre, marble dust, caiciumcabonate to mention but a few. Rice husk is produced in many parts of Nigeria such as Abakaliki, Afikpo, Ogoja, Ikepe, Lafiaji, Badeji, Pategi, Sokoto, BirninKebbi, Abeoukuta, Benin and Delta regions. Rice husk dumps are mountainously available in alarming proportion in Abakaliki and other communities.In today’s business and marketing environment, a lot of problems are inherent, and distribution bottlenecks receive increasing emphasis. The task of matching the technical excellence of mass production with parallel progress in mass distribution becomes crucial, as any confronting management customers cannot enjoy the benefits of mass production without an efficient distribution system. The economic success of any product is not guaranteed simply because a producer made good products for which there is a need. According to David J. Schwartz (1991) “unless the good product can be moved to the consumer at a price that makes it reasonably competitive with other products it will not find a market”. This notable assertion goes ahead to explain why the marketing implication of the activities of the roof sheet industry in this country has become important of late. Roofing sheet companies in Nigeria have over the years identified unsatisfied need in the area of provision of roofing sheets to cover ‘houses tops’. There is need therefore to position these roofing sheets materials in strategic places where consumers can reach them at the right time and price .Building construction takes a central place in the geographical study of both rural and urban areas, therefore its physical existence is essential. Everyone requires shelter, roofing over ones head and these calls for the erection of a house which is a permanent place of abode where one spend greater part of ones time. Shelter provides one of the basic physiological needs of man; its importance is reflected in the social, political and cultural lives of people who live under it. This makes the building industry very significant in the development of the economy infrastructurally. Roofing sheets such as x flat sheets, corrugated sheets, roofing tiles/ceiling boards and decorative ceilings form an integral part of the requirements that enhance infrastructure development in Nigeria. East Chase Limited Enugu, is of the distinct roofing sheet companies in Nigeria that have identified the basic needs of construction firms and have over the years tried their best to meet the demands of their teeming customers. The company produce various quantities and quality of roofing sheets, sold to customers at various locations in the country. It has however, bee observed that physical distribution which the nerve centre of marketing has been an area of setback in the marketing of these aluminum roofing sheet products. East Chase Limited 9th Mile have been selected for this study because of their efficient physical distribution. Roofing sheets produced by the companies include: a. Flat sheets b. Corrugated sheets c. Roofing tiles/ceiling boards d. Decorative ceilings e. Flower vases. Efficient distribution of roofing sheets and their accessories calls for an efficient transportation/delivery system as a lot of care has to be taken for these fragile roofing sheets not to be damaged before reaching their various markets centre. This therefore calls for the accomplishment of business activities concerned with transportation, storage, warehousing and inventory handling processes. These activities need to be performed in order to achieve optimum system cost, consistent with customer’s satisfaction. Transportation is therefore the pivot for the successful operation of any physical distribution system. The choice and type of transportation therefore becomes of paramount importance since the objective is to make products available as and when needed by consumers
STATEMENT OF THE PROBLEM
One of the problems in the total production process and cost is how to make the products of a company available to the customers at the price they can afford to pay, the quantity they want, when the where they are needed. Goods must be in right quality well displayed and they must be maintained in good condition by ensuring proper stock rotation and replacement of unsold stock. Another problem affecting physical distribution of roofing sheets is high cost of transportation associated with the distribution. Being a constraint, transportation increases the marketing and product cost of roofing sheets to the detriment of the final consumer. The poor network of roads in Nigeria also constitutes an impediment to physical distribution in roofing sheets in Nigeria. This has resulted in increased cost of maintenance of trucks used in transporting roofing sheets from source of production to the customers. It is against this backdrop that the researcher intends to investigate the effect of price hike on roofing sheet in Nigeria.
OBJECTIVE OF THE STUDY
The objective of this study are;
To investigate the impact of Efficient Warehousing on the Physical Distribution of roofing sheet products in Nigeria.
To determine the impact of poor road network on the physical of roofing sheet products in Nigeria.
To ascertain the relationship between transportation cost and efficient physical distribution of roofing sheet products in Nigeria
To aid the completion of this study, the following research hypotheses were formulated by the researcher;
H0:Efficient warehousing does not promotes physical distribution of roofing sheets in Nigeria
H1: Efficient warehousing does promote physical distribution of roofing sheet in Nigeria
H02:Poor road network in Nigeria has a positive impact on physical distribution of roofing sheets.
H2:Poor road network in Nigeria has a negative impact on physical distribution of roofing sheets.
SIGNIFICANCE OF THE STUDY
The relevance of this study in the marketing and distribution of roofing sheet is overwhelming. It is a truism that “marketing comprises those activities which ensure that the customer is provided with the right product at the right place, time and price”. It is in this context that it is necessary to target customers always when production is been carried out – this is consumer orientation. It is necessary therefore to analyse critically the effectiveness and efficiency of physical distribution systems. One of the major objectives of any organization is “to make profit and at the same time satisfy consumer needs and wants in a suitable and acceptable proportion” for proper attainment of this goal “management has therefore become more concerned about cost of physical distribution which amounts to a substantial percentage of sales for manufacturing companies”. A lot of savings can be gained in the physical distribution area which has been described as the last frontier for cost economics and economies of scale in the Dark Continent. This calls for caution on the part of the companies and the researcher. But some of these field sales practices will be closely examined.
SCOPE AND LIMITATION OF THE STUDY
The scope of this study covers an analysis on the price of roofing sheet in Nigeria. But in the cause of the study, there werer some factors which militate against the scope of the study;
a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study.
b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
c) FINANCE: The finance available for the research work does not allow for wider coverage as resources are very limited as the researcher has other academic bills to cover
1.7 DEFINITION OF TERMS
Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.
All the activities involved in selling goods and services to those buying for resell or business use.
Retailing: All the activities involved in selling goods or services directly to final consumers for their personal or non business use.
This describes the movement of physical products from raw materials to final consumers.
This is the passage of ownership from one marketing institution to another. Inventory:
This is the stock of manufactured goods that will be used to fill all customer’s orders.
Marketing Intermediaries: Firms that aid the company in promoting, selling, and distributing its goods to final buyers
1.8 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows. Chapter one is concern with the introduction, which consist of the (background of the study), statement of the problem, objectives of the study, research questions, research hypotheses, significance of the study, scope of the study etc. Chapter two being the review of the related literature presents the theoretical framework, conceptual framework and other areas concerning the subject matter. Chapter three is a research methodology covers deals on the research design and methods adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study.