THE EFFECTIVENESS OF DISTRIBUTION STRATEGY ON ORGANISATIONAL PROFITABILITY

CHAPTER ONE

1.0   GENERAL BACKGROUND OF THE STUDY

The type of distribution policy/strategy exercised differs from one organisation to the other, depending on the type of goods and services provided or produced in such business organisation. In considering the importance of distribution strategy on organisational profitability or before an organisation settles for the type of distribution policy to be used, two things has to be considered;

i.             Knowledge of various marketing channels available is one thing

ii.           Developing a sound system is another thing

The effectiveness of an excellent marketing executive however is in his ability to select and obtain channels which will maximize sales and minimize cost.

In selecting marketing channels, one must understand that, they are not rigid, rather they are dynamic. In essence the impact of distribution strategy on the organisational profitability of Coca-cola is that it helps to strengthen and make organisation’s marketing conception in terms of place and ability possible.

However, when a wrong system of distribution is being used by an organisation, such organisation is bound to fail but it the right peg is being put into the right hole success is bound to be attained.

1.1   AIMS AND OBJECTIVES OF THE STUDY

The motive behind the study is to seek and explain what will be the impact of distribution strategy on organisational profitability of coca-cola. The essence of choosing coca cola is because of the fact that must Nigerian manufacturers are producers of such consumer goods. This study intends to seek the distribution strategy that they make use in getting the goods to the ultimate consumer or user and the impact of such strategy on the profitability of the organisation, and overall of achieving the target of any marketing form, which is consumer satisfaction, whether the impact of these stated focus are favourable, otherwise has no impact at all.

The study would also look at various distributor strategies that are open to manufacturers, from which they can make their choice depending on the market coverage, product characteristics of each and how each of the earlier mentioned strategies can be adopted for coca cola. In order to be able to cover all the aims and objectives of the study, it would require an extensive research involving some of the department or units in the Nigeria Bottling Company Plc, Agidingbi Ikeja Lagos, but due to some constraints just two departments would be able to make use of this research i.e. sales/marketing and distribution department.

The organisation was chosen due to the position it occupies as one of the leading organisations, more so a market leader in its sector (soft drink sector). Hence much reference would be made to the company.

1.2   STATEMENT OF THE PROBLEM

The problem this study is meant to examine is that of distribution strategy adopted by Nigerian Bottling Company. This in effect, affects the producer, is that they are not to exploit the market of their potential customers not reached, while even the present consumers are not given the utmost satisfaction they are supposed to enjoy from the product.

Morever, distribution problem full capacity in terms of manufacturing. This study wants to find out the exact problems and how best they can be solved, and what advantage hope to gain soon when applying the various distribution strategies in distributing coca-cola and its impact on organisational profitability of the product (coca cola).

You May Also Like

THE RELATIONSHIP BETWEEN WORKERS AND CUSTOMERS UNDER THE ORGANISATIONAL IMAGE. A CASE STUDY OF – UBA- LAGOS

Organizational image can be described as that  impressions  which the organization  conveys to its internal employees as well as the external publics comprising of its customers and the general public and the impression which the organization want its  employees, customers and the general public to have about the organization. This is the image that describes the organization and determines its desirability and likeness by its employees, customers and the general public. Organizational images exact great influence on the workers attitude towards the organization and its customers and on the organizational experiences of the employee. Good organizational image facilitate the attraction of organizational members, and how people identify with the organization. It also determines the sense of commitment of the employee, the loyalty of customers and that of the general public to the organization. Organisational image seek to determine how customer and employees align their decisions and behavior towards the cause of the organization and help to improve and sustain it. This implies the need for the workers and customers to have good quality relationship which will promote the wellbeing and aspiration of the organization. It also facilitates employees and all external public understand their position and roles in the organization. Organizational image projects a positive image of the firms products and services, its aims and objectives, to its employees, customers, or other stakeholders. It enables the firms employee understands what is desirable for the firm and represent the firm positively before its customers and the general public. Organisational image projects the firms image in the industry among fellow competitors and provides a competitive advantage for the firm. Consequently it is important for managers to create and sustain a positive image of the organization and to inculcate same in the employee which represent the firm before the customers and the external public. Therefore the firm’s corporate image starts from the management which should be incorporated into the firms’ policies and communicated to the employees, customers and the general public, rather than managing the   bad company policies. Young (1996) postulates that the management of corporate firms should take steps toward improving the image of their organization by focusing on the long-term reputation of the organization; take uniform decisions   and fair dealings according to the firms approved policies and uphold the integrity of stakeholders’ right. It is imperative to note that it could take a long period to build good organizational image and only a moment to destroy. The research therefore seeks to appraise the relationship between workers and customers under the organizational image with a case study of UBA- Lagos.
Read More