PROBLEM AND PROSPECTS OF DISTRIBUTION OF BREAD IN ENUGU METROPOLIS ( A CASE STUDY OF ADA-UGO BREAD)

ABSTRACT

            The modern managers need problem identification and useful information in these complex conditions of business in order to stay in the market and also be make viable decisions. These information are mostly collected from efficient and effective research project and decisions are based on these.

            Again this project research is aimed at such important information that will help the management of Ada-Ugo bread to know their distribution effectiveness.

            The researcher used secondary and primary data. The secondary data is the library sources, while the primary data are interview and observations.

            Therefore, from the study, it was found that the major problem of the organizations distribution is poor transportation and also their communication facilities are poor and distributors are not supervised.

            My recommendations include government repair of road networks to ease transportation system. Again, the company should arrange for training for itself and public relation manage would improve the promotion on their product.

TABLE OF CONTENT

CHAPTER ONE

1.1         Background of the study               

1.2         Statement of problem                                 

1.3         Objectives of study                                     

1.4         Significance of the study              

1.5         Scope and limitation of the Study

1.6         Definition of terms                                      

CHAPTER TWO

2.1         An overview of distribution in Nigeria     

2.2         Determining channel selection of bread            

2.3         Physical distribution                       

2.4         Available bread distribution channels    

2.5         Problems of distribution                 

2.6         Distribution cost                                          

CHAPTER THREE

3.1         Sources of Data                                                      

3.2         Method of investigation                                         

3.3         Method of data presentation and analysis

3.4         Analysis presentation and interpretation of data

3.5         Summary of findings                                  

3.6         Recommendations                         

3.7         Conclusion                                                              

Bibliography                                    

 

CHAPTER ONE

1.1         BACKGROUND OF THE STUDY

The process by which goods move from the producer or area of abundance to the consumer or region of need or scarcity is known as distribution.

The identification and production of consumers needs and wants is not complete without the practice of marketing concept, if the product did not reach the consumer at the time, place quality and at the right price.

Therefore, for an effective and efficient marketing operation, the goals must be made available at the most convenient lace for the consumer to easily obtain the goods or product thirst in distribution.

Most of the channels and patterns of distribution is determined by producers. A firm’s financial capability determines either for the firm to carryout a direct channel of distribution where such firm sells its products to the consumer or on the other hand, the firm is not solidly funded or a matter of marketing effectiveness can move its product consumers through distribution specialists known as middlemen. The middlemen comprise agents wholesalers, brokers, retailers depending on the number of length of distribution channel open as on the nature of the product.

Industrial goods and durable consumable goods can be a longer process of distribution from the manufacture to an agent and to the wholesalers, who sell in small quantities to the retailers that re-sell to the ultimate consumers.

On the otherside, non-durable goods can take zero channel or one channel distribution. Our subjects happens to fall in this category of good because of its nature.

Bread is produced by mixing grinded cereal (flour), granulated sugar, yeast, butter, water and carbon iv oxide and heated in oven to dry the moisture which rises due to the presence of carbon iv oxide. This combination makes in contact with water or if it backs air. For this chemical nature of the product it takes a short channel of distribution in most cases on channel, from the product to the retailers who sell in units to the consumers.

In Enugu metropolis, there are not less than twenty (20) bakery firms or industry. Notably among them are Ada-Ugo company Nigeria Ltd. (makers of Ada-Ugo Bread) located at N0. 35 Amobia street, Uwani, Trans-Ekulu pax International Bakery, producers of Amechi Bread, Enugu Macus Bakery Enterprises, Makers of MACUS Bread. Emene Metro Bakery, No. 10 Obinagu Road Ogui New Layout behind NNPC Depot, Emene, Metro Bakery N0. 10 Obinagu Road, Ogui New Layout and croissant technical Nigeria Ltd. Markets of Den’s cook food N0. 2 Agbani Road, Enugu.

Therefore, of all the bakers, Ada-Ugo bread was chosen as my case of study owing to its large market share and sophisticated organizational structure.

THE ORGANIZATIONAL CHART

MANAGEMENT DIRECTOR

PRODUCTION                                                         SALES

MANAGER                                                    MANAGER

PRODUCTION                                                         SALES

SUPERVISOR                                                         SUPERVISOR

WORKERS                                                   SALESMAN

 

 

1.2       STATEMENT OF PROBLEM

            In a production of any goods, if there is a problem inherent, invariably it will affect the efficiency and effectiveness of distribution and even in consuming the product.

            Definitely the production of bread is not an example. If faces some problems right from the assembling of the materials and heating them in the oven to the harshness of weather of Ada-Ugo’s bread performed effectively. If not what are the possible causes of the problems.

            Knowing fully well that some customers to the firm do not adequately purchase the product (Ada-Ugo Bread) as when due, the research will try to reveal the problems causing the poor distribution network.

            Hence the problems has been identified if what militates against the distribution of Ada-Ugo Bread is internal or external variable, did the company make any effort to discover these problems, at what extent did the management efforts yield in solving the problems?

            On the other hand, are the competitors to Ada-Ugo’s group aware of these problems. What has been the other lost to the company? The customer if aware of these problems,  what has been the change in their buying behaviour?

            What percentage of the customers have switched over to other product when they cannot see the product in the market. This study will make effort to answer some of these question.

1.3       OBJECTIVES OF STUDY

            Distribution that plays a very vital role in marketing activities in its effectiveness and efficiency also enhance satisfactional utility of the customers.

            Moreover, the distribution functions vary from firm to another depending on the type of product, available market and awareness of the customers. To this effect, this research work is therefore for product focus.

(a)          Finding out what motivate consumers in buying Ada-Ugo Bread.

(b)          Determining the effectiveness of the present distribution system adopted by the firm.

(c)          Identifying distribution problems confronting distribution in general and Ada-Ugo in particular and

(d)          Preferring solutions to solve distribution problems militating against Ada-Ugo bread.

1.4         SIGNIFICANCE OF THE STUDY

(a)          The bread industries

(b)          Nigerian economy

1.5       SCOPE/LIMITATION OF THE STUDY

            In every human endeavour, we expect some battlement along the line, the same thing is applicable to this study. To reduce complexity problems involved in this nature of research, the study is focused on a particular firm, instead of taking on all the firm and their distributive systems in the entire nations wider environment.

            So, this study is strictly limited to Ada-Ugo bread and its distribution system in Enugu metropolis. The firm was chosen for the its large market share and position on minds of consumers.

1.6       DEFINITION OF TERMS

 

NNPC            –         Nigeria National Petroleum Corporation

LTD                 -           Limited

MD                  -           Managing Director

MO                  -           Marketing Operation

DOGI  -           Durable consumable goods

BAKERY       - This is a place where bread is baked for sale

METROPOLIS          - Capital region of a city or country

LMS                -           Large Market Share

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