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ABSTRACT
The study was determined to examine channel management and marketing performance of soft drink firms in Port Harcourt. The study used the descriptive and survey method of data collection to empirically examine the relationship between channel management and marketing performance of soft drink firms in Port Harcourt. The population of the study is made of soft drink firms Port Harcourt Metropolis, Rivers State, which was unknown. The sample size for this study is 100. A self-designed questionnaire was used to collect data from the respondents. The simple percentage was used to analyze the response. Findings amongst others reveal that there is a significant relationship between channel management and marketing performance of soft drink firms in Port Harcourt. Based on the findings of the study summary, conclusion and recommendations were made that Effort should be made to ensuring continuity of supply and that the distribution channels have easy access to the company’s products as at when needed, in the same vein, improvement of policy on Product availability is very crucial as this will help to enhance the market share of coca cola and pabod breweries, promote product intensity and acceptability in the market, government representatives should join the masses in their quest for good road network in Nigeria for social and economic development of Nigerian business. This will help to boost demand in Aba metropolis and Management should device means of negotiating properly with government or its agents for smooth and efficient marketing. Moreover, this will help the company sales force to avoid molestation by the government task force which may dent the corporate image of the firm and generate de-marketing if care is not taken.
CHAPTER ONE 1
INTRODUCTION 1
1.1 BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF THE PROBLEM 2
1.3 OBJECTIVES OF THE STUDY 3
1.4 RESEARCH QUESTIONS 4
1.5 STATEMENT OF HYPOTHESIS 4
1.6 SIGNIFICANCE OF THE STUDY 4
1.7 SCOPE OF THE STUDY 5
1.7 LIMITATIONS OF THE STUDY 5
1.9 DEFINITION OF TERMS 6
CHAPTER TWO 7
REVIEW OF RELATED LITERATURE 7
CHAPTER THREE 26
RESEARCH METHODOLOGY 26
3.0 INTRODUCTION 26
3.1 RESEARCH DESIGN 26
3.3 POPULATION OF THE STUDY 26
3.4 SAMPLE SIZE AND SAMPLING TECHNIQUES 26
3.5 DATA COLLECTION TECHNIQUES 26
3.6 RESEARCH INSTRUMENT 27
3.7 DATA ANALYSIS TECHNIQUE(S) INCLUDING TEST STATISTICS 27
CHAPTER FOUR 29
DATA PRESENTATION AND ANALYSIS 29
4.1 QUESTIONNAIRES ADMINISTRATION AND RETRIEVAL 29
4.2 DATA ANALYSIS 30
4.3 TESTING OF HYPOTHESIS 33
4.4 DISCUSSION OF FINDINGS 36
CHAPTER FIVE 38
SUMMARY, CONCLUSION AND RECOMMENDATION 38
5.0 INTRODUCTION 38
5.2 SUMMARY 38
5.3 CONCLUSSION 38
5.4 RECOMMENDATION 39
REFERENCES 43
CHAPTER ONE
INTRODUCTION
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 (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 process by which a producer or supplier directs marketing activity by involving and motivating parties comprising its channel of distribution. The term Channel Management is widely used in sales marketing parlance. It is defined as a process where the company develops various marketing techniques as well as sales strategies to reach the widest possible customer base. The channels are nothing but ways or outlets to market and sell products. As the name implies, it is the whole process of delivering a product/service from the manufacturer to the end customer. It is also known as marketing channel.
Channel management is a term that refers to the way that a business or supplier of products uses various marketing techniques and sales strategies to reach the widest possible customer base. The channels are all of the various outlets by which the product is marketed and sold to customers. When done properly, channel management motivates those channels to sell the product and ultimately develops a better relationship between customer and product. This is achieved by identifying the goals for each distinctive channel and then implementing various marketing strategies to make sure that those goals are attained, all while staying consistent to the overall brand of the business.
The key point of this research work as concerns any business set up or organization especially one in a stiff Competitive economy.
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 lubricating 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.
1.2 STATEMENT OF THE PROBLEM
This research work is interested in the assessment of channel management and maketing performance of soft drink firms in Port harcourt. During the process of manufacturing and cost consideration, management decides on how to make the company’s product available to the final consumers as at the right time, right quality and at an affordable price which is a challenge to the management and the essence of this work.
Poor road network adversely affect the effectiveness and efficiency of products distribution in the country. This results in high rate of vehicle breakdown and causes the products to get to the final consumers at the wrong time.
High cost of transportation/delivery equally affects the distribution strategy of the firm. This factor increases both the production and market cost of goods and services to the detriment of the final consumers.
Government policy goes a long way in affecting the distribution strategy of the firm. It is obvious that government contract or appoint adhoc/standing taskforce who mobilizes revenue for the government or its representatives in-line with the established Law, bye law, edict or act. Thereby, causes impediments to smooth flow of business by demanding for annual official registration, stickers, emblems, daily tickets, infrastructure levy doing the course of business in an area.
Environmental factors like whether / seasons are uncontrollable variables that affect the distribution strategy of a firm. During this period, distribution is hampered resulting in low turnover and profit reduced astronomically.
This indirectly affects distribution processes because the products in question cannot be assessable to consumers during the course of production. Meanwhile, production is said to be incomplete until the products get to the final consumers. It is on this backdrop that the study is determined to examine channel management and marketing performance of soft drink firms in Port Harcourt, Rivers State.
1.3 OBJECTIVES OF THE STUDY
The main objective of the study is to examine channel management and marketing performance of soft drink firms in Port Harcourt, Rivers State. The specific objectives of the study are as follows:
- To examine the relationship between direct channel and marketing performance of soft drink firms in Port Harcourt.
- To examine the relationship between merchants and marketing performance of soft drink firms in Port Harcourt.
- To examine the relationship between short channels and marketing performance of soft drink firms in Port Harcourt.
- To examine the relationship between long channel and marketing performance of soft drink firms in Port Harcourt.
1.4 RESEARCH QUESTIONS
- To what extent does direct channel influence marketing performance of soft drink firms in Port Harcourt.
- Does merchants relate with marketing performance of soft drink firms in Port Harcourt.
iii. What is the extent to which short channels influence the marketing performance of soft drink firms in Port Harcourt.
- does long channel associate marketing performance of soft drink firms in Port Harcourt.
1.5 STATEMENT OF HYPOTHESIS
HO: There is no significant relationship between channel management and marketing performance of soft drink firms in Port Harcourt.
HI: There is no significant relationship between channel management and marketing performance of soft drink firms in Port Harcourt.
1.6 SIGNIFICANCE OF THE STUDY
This research work is very crucial for the management of soft drink firms 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 soft drink firms.
1.7 SCOPE OF THE STUDY
The study is delimited under the following heading: content scope, geographical scope and unit of analysis.
- Content Scope: The content scope of this study involves an investigation to ascertain the relationship between channel management and marketing performance of soft drink firms in Port Harcourt. The dependent variable is marketing performance, measured by Profitability, Market share and sales volume. While independent variable is channel management measure by direct channel, marchant, short channel and long channel.
- Geographical Scope: This study is delimited in Port Harcourt Metropolis with special reference to some selected soft drink firms which include Coca cola and Pabod Breweries.
- Unit of Analysis: The unit of analysis in this research involves both senior and Junior staffs of the selected firms at the time of carrying out the study. The scope of this study is to ascertain the relationship between channel management and marketing performance of soft drink firms in Port Harcourt.
1.7 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.
1.9 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.
Channel management: It is a term that refers to the way that a business or supplier of products uses various marketing techniques and sales strategies to reach the widest possible customer base.