ABSTRACT

The analysis of marketing distribution strategies of some Nigerian companies with case study of Nestle Nigeria plc is the subject matter of this study.
Some related literature were revived like, distribution strategies, service need of the target market, how to determine the target market, how to determine the appropriate channel distribution objectives determine alternative strategies and determine the appropriate channel structure.
Nestle Nigeria plc has the staff population of 500 which include the marketing department, accountancy department etc, but marketing department is used as the sample consumer which has the population of 100. The consumer population of nestle is 5000 which was determined by Yaroyamen and had the sample size of 270. Therefore 370 questionnaires were distributed and 345 were returned. 
Data were presented and interpreted using percentage table and chi-square were used in testing the hypothesis. Base on the finding it was seen that Nestle Nigeria Plc observed defects in the current distribution will enable Nestle Nigeria Plc achieve distribution strategies will enable Nestle Nigeria Plc achieve better customer serves. 

TABLE OF CONTENTS

Abstract

CHAPTER ONE

1.0    Introduction

1.1   Background of Study

1.2   Statement of Problems

1.3   Research Objectives

1.4   Research Question

1.5   Research Hypothesis   

1.6   Scope of Study

1.7   Significance of study

1.8   Limitation of study

1.9   Definition of terms

CHAPTER TWO

2.0   Literature Review

CHAPTER THREE

3.0   Research methodology

3.1   Research Design

3.2   Population of study

3.3   Sampling Design and Procedure

3.4   Data Collection Instrument

3.5   Administration of Data Collection Instrument

3.6   Methods of data analysis

CHAPTER FOUR

4.0   Data Presentation and Analysis

4.1   Data Presentation  

4.2   Test of Hypothesis 

CHAPTER FIVE

5.0   Summary, Conclusion and Recommendation

5.1   Summary

5.2   Conclusion

5.3    Recommendation

References

Questionnaire

CHAPTER ONE 

1.1   BACKGROUND OF THE
STUDY

Distribution is the process of planning,
implementing and controlling the physical flow of materials, final goods and
related information from point of origin to point of consumption to meet
customer requirements at a profit (Phillip Kotler and Amstrong 2001). It is the
marketing function responsible for movement of products to the final users. It
could be said that production is not complete until the goods reach the final
users and for this to be accomplished, manufactured goods have to pass through
distribution channels. The key point of this research work as concerns any
business set up or organization especially one in a stiff Competitive economy
like the case under consideration in this research work in respect of Nestle PLC
needs to examine how it can effectively develop its distribution strategies.

Distribution strategies on its own, is a
broad conception of how resources are to be deployed to build a channel (or
channels) linking the producer to the consumer to insuring that the product and
associated services are made available to the target segment of the market. It
concerned with efficient channel arrangements that may be used to make goods
and services available to customers/users by deciding on which intermediaries
and marketing channel structures to be selected to move products in the most
competitive and efficient manner to satisfy customer’s needs and wants.
However, it is very important to position the channel of distribution of food
products in strategic places where users can get them and at the right time
probably by using more effective, efficient and strategic physical distribution
pattern including well positioning of field salesmen, institutional
distribution system of products etc.

The level of the economy has put
distribution into a less important position and scarcity or short supply of
products. Most management today are interested on profit maximization without
due attention to the effect of distribution on the company and economy as a
whole. This calls for the need for this research work to research intensively
on the analysis of marketing distribution strategy of some Nigerian companies
(A Case study of Nestle PLC).

Nestle PLC.
has made considerable progress in the area of products development to meet
international standard and effective marketing of their products to meet
customers taste satisfactorily at reasonable profit. The company is using the
distribution channel below:

Factory→
Depot→
Mega Distributors →
Sub Distributors →
Final Consumers

The distribution channel is a set of firms
or individual that takes title in transferring title to a particular goods as
it moves from point of production to the point of consumption. The distribution
channel of the company need to cover areas/markets not yet served and under
served by current efforts (current level of distribution) with the aim of
improving market potentials and market share. Infact, marketing channel
decisions are among the most important decisions that management faces. A
company’s channels decisions are linked with every other marketing decision.
The company’s pricing depends on whether it uses mass merchandisers or high
quality specialty stores. The firm’s sales force and advertising decisions
depend on how much persuasion, training, motivation and support the dealers
need. Companies often pay too little attention to their distribution channels,
however, sometimes with damaging results. In contrast, many companies have used
imaginative distribution systems to gain a competitive advantage. Therefore,
management must design its channels carefully with an eye on tomorrow’s likely
selling environment as well as today’s.

The importance of distribution cannot be
over-emphasized no matter how the economic position of the country looks like.
This requires smooth transportation facilities and arrangement from the point
of origin to where they will be used for production of Nestle PLC. This calls
for a lot of logistics especially in the transportation of the necessary raw
materials and distribution of finished products to the company’s major
distributors as at when needed.

Transportation is then the pivot of the
successful operation of any physical distribution system. Choice and type of
transportation therefore becomes very important since the objective is to make
the products available to consumers as at the right time.

The poor road network has hampered the
effectiveness of distribution and railway mode of transportation which would
have provided an alternative transportation, has not been functional for
sometime now which contributes to the high transportation cost.

Therefore, this research work is to “Assess
the effectiveness of distribution strategies of Nestle PLC. 

1.2 OBJECTIVES OF STUDY

^•        
To determine the quality
of Nestle PLC from Management perspective.

^•        
To assess the effect of
high cost of transportation on the company’s distribution activities 

^•        
To determine the impact
of poor road network on the company distribution strategies.

^•        
To determine the
availability of Nestle PLC Products from customers perspective.

^•        
To assess the effect of
government policy on the company distribution strategies.

^•        
To assess the effect of
environmental factors (season) on the company’s distribution strategies.

1.3 HYPOTHESIS FORMULATION

1.4 LIMITATIONS OF THE
STUDY

Time factor is
the major constraint of this research work. This research work was made in a
comprehensive way in order to meet the aspirations of people interested in the
field for further studies though time could not permit me to go further. 

Inability to
provide and unveil top management exclusive sales policy and strategy in
respect of the subject matter under consideration. Moreover, the competition in
the market makes the respondents to be skeptic to the questions, its
implications or the actual purpose of the study not cleared to them because of
their level of education and exposure.

Financial factor
is another constraint to this intensive research work. The extra cost of
running around to different locations, academic and non-academic institutions
couple with my inability to assess some relevant but encrypted sites online due
to high cost of online registration.

1.5    SIGNIFICANCE OF THE STUDY 

^•        
This  research work is very crucial for the
management of   Nestle PLC as it will
make management to device means of cutting down cost on distribution activities
in order to make reasonable profits.

^•        
It will serve as a  knowledge base for management to employ. 

^•        
It will enable the
management to provide consumers with the 
right products at the right time, right place and at the right price
which result to a substantial percentage of sales for the company.

^•        
Finally, it will serve as
a blue print of action guide to infant companies and as

                a    compendium    of    knowledge
       for    further
   research    work    in

logistics/distribution
channel management of indigenous and multinational companies. 

1.6    DEFINITION OF TERMS

Distribution: This is the
process of planning, implementing and controlling the physical flow of
materials, final goods and related information from point of origin to points
of consumption to meet customer requirements at a profit.

Distribution Strategy:
This is the efficient channel arrangements that may be used to make goods and
services available to consumers by deciding on which intermediaries and
marketing channel structures to be selected to move products in the most
competitive and efficient manner to satisfy customer’s needs and wants.

Distribution Channel: This is a set of firms and individuals that take titles in
transferring titles to a particular goods as it moves from the point of
production to the points of consumption

Distribution Centre: This
is a large, highly automated warehouse designed to receive goods from various
plants and suppliers take orders.

Product: This is anything
of value offered to a market for attention, acquisition and consumption that
may satisfy needs.

Customer: This is the
bonifide buyer of a product that makes repeat purchase from time to time.

Consumer: Individuals who purchase for
personal or domestic consumption.