AN ASSESSMENT OF THE PHYSICAL DISTRIBUTION OF SOFT DRINK (A CASE STUDY OF NIGERIAN BOTTLING COMPANY ONITSHA L.G.A

ANAMBRA STATE)

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Distribution of soft drinks in Nigeria simply suplies the system through which the soft drinks are brought to the prospect final consumers within the Nigeria economy. Soft drinks are produced by the soft drinks industries within and outside the country and carefully distributed to the final consumers in order to complete the production processes. In the physical distributed to the final consumers in order to complete the production process. In the physical distribution of these soft drinks, basically, two various classified channels can be pinpoint or drawn, normal 3 – ways distribution channels (ie Manufacturers, Wholesales, Retailers - Consumers) and 2 – ways distribution channel (i.e. Manufacturers, Wholesales/Retailers – Consumer).

In the former, manufacturers of soft drinks carry their products in bulks of different brands to the deport owners (ie the wholesalers) and they in turn carry to the were shops or restaurants owners (ie the retailers) and these people sell directly to the final consumers in smaller quantities. While, in one latter, the manufacturers of the soft drinks, big hotels and restaurants where the final consumers buy or to the depots, where the final consumers can equally buy for big occasions.

There are many different soft drinks industries all over the world. Some concentrate on one brand of drink, while some operate on assorted brands in order to meet their customer/consumer targeted objectives.

Though, there are (3) principally recognized companies in the soft drinks production and distributions – (a) coca-cola company (b) Pepsi company and (c) Cadbury Schweppes. 

Cadbury Schweppes recently emerged in 1995, when the acquires the Dr. Peper and 7up brands and began to competes with coca-cola and Pepsi.

Coca-cola Handling, Bottling Company produces, sells and distributes a broad range of beverage to meet the constantly changing tastes and needs of its consumers across 26 countries worldwide. Its products include;

a)          Carbonated soft drinks – coca, fanta and sprite

b)          Sugar – Free carbonated soft drinks – sprite zero, coca-cola light etc.

c)           Juices, nectars and juices drinks – Cappy, 5-live, Amita, Friuce etc.

d)          Ready – to – drink teas and coffees – Nestea and Nescafe. And any other numerous involve to mentioned.    

        These soft drinks productions involves mixing a number of ingredients including, water, sugar/ sweeteners, colouring agents, and carbon dioxide. Soft drinks are sold at formtains and some are equally sold as packaged in industry that 75% of all soft drinks sold in the U.S were in 4c packaged formed. There are certain substitute products of beverages in the market today worldwide such as; cold coffees, caffeinated and flavored water, carbonated flavored milk, fruit and vegetable juice blends, caffeinated orange juice etc.  These soft drinks industries most seek official approval by the government regulative organs (National Agency for Food, Drug and Administrative Control, NAFDAC in Nigeria, Food and Drug Administration U.S.) before any of this products can be duly produced for consumption. Their inputs, raw materials must be tested and approved before their procession.  

        People’s preference and tastes for soft drinks continuously evolving and coca-cola company equally strives to offer an increasingly wide choice of beverages that meet those changing needs. growing categories to becomes a more diverse alcohol – free beverage company is a strategic priority for coca-cola company and in 2004, it produced and distributed more than 360 different beverage flavours and products, excluding packaging variation. In 2004, it distributed over 8,000 million liters of non-alcoholic brands, an increase of 40% over the previves year. (Annual Report, 2004) carbonated soft drinks still accounted for the largest proportion (77%) of sales volume in 2004.

        However, water, juice and other non-carbonated beverages represented 23% of distribution up from 10% in 2001 and 19% in 2003.

        In the physical distribution of coca-cola soft drink. In Onitsha, it has been adequately progressives. Many are have been receiving normal and constant supplied Odoakpu, Nkpor, Fegge, Awada, Omagbas etc.

        Though, poor roads had been a hindrance to a certain degree in the efficient distributions of these soft drinks in Onisha metropolitans.                   

1.2     STATEMENT OF THE PROBLEMS

This project work is mainly designed to access the physical distribution of soft drinks in the Nigerian economy special focus on “coca-cola company, Onitsha South Local Government Area of Anambra State.

From numerous conducted research and it’s empirical view, many factors actually hindered the effective and efficient physical distribution of soft drinks. The below spelt out problems or factors will be dealt with by the research on the cause of this research project.

v    Poor roads

v    High transportation fares

v    High regulative standards by government agencies

v    Inadequate storing depot or warehouse.

v    Constant involving consumers’ preference and tastes.

v    Inadequate provision of infrastructural amenities.

v    Short and failure in electricity supplies.

1.3     PURPOSE OF THE STUDY

The basic objectives of this research project are enumerated below:

Ø    To access the physical distribution of soft drinks in Nigeria and even worldwide.

Ø    To identify main contributions of the effective and efficient physical distribution of soft drink.

Ø    To carefully examine the attitude, feelings and reaction of consumers towards the physical distribution of soft drink.

Ø    To examine the actual channels of physical distribution of soft drinks.

Ø    To identify the barriers to effective and efficient physical distributed of soft drinks.

Ø    To examine the factors that affect consumers preference and demand for soft drinks.

1.4     SIGNIFICANCE OF THE STUDY

This research work will be highly beneficial and appropriated in many ways or areas of educational and human development. So the importance are as follows: -

-              This research work can be a reference tent to students of marketing and related courses in tertiary institution of leaving.

-              It would be beneficial t traders, soft drink consumers and merchants who have one intensions of consuming soft drinks and industries, especially coca-cola, Onitsha.

-              It would gives broad knowledge to the researcher on the physical distribution of soft dinks, especially, coca-cola, Onitsha.

-              It would enable the coca-cola management personnel’s to identify the factors that influence consumers preference and choice.

-              It would assists the researcher to proffer operational solution to the barriers and problems of the distribution of coca-cola products and its likes.

-              It would assist all educators in different areas of academic programmes in one way or the other.

1.5     RESEARCH QUESTIONS

The fundamental tasks before the researcher will be among other things, findings possible solutions to the below outlined questions, which are:

i.            Does the physical distribution of soft drink in Nigeria have any contribution to the country’s economy?

ii.          What are the consumers attitudes and feeling towards the physical distribution of soft drinks in the country?

iii.        What are the barriers or problems facing the physical distribution of soft drinks?

iv.         Do some factors affects the consumers preference and tastes for soft drink?

1.6     SCOPE OF THE STUDY

The scope of this study covers coca-cola in Onitsha south local government area Onitsha, Anambra state with out any reference to other companies.

This is because the researchers want to know the Impacts of the Physical Distribution in the Marketing of soft Drinks in Onitsha South Local Government Area, Anambra State. Again, the study was carried within the premises because the results of the research study carried by the plant are only known to them since affairs like this are held secret by each company for survival in the market and to compete among fellow competitors.

1.7     DEFINITION OF TERMS

DISTRIBUTION:      This is the way of carrying the soft drinks from the place of production to the final consumers.

SOFT DRINKS:        These are non-alcoholic drinks produced by multinational soft drinks industries within and outside Nigeria eg, coca-cola, Pep Cadbury, etc.

MIDDLEMEN:         The persons or trader in between the manufacturers and the consumers.

WHOLESALER:       The trader tat huge different beverage in bulk.

FINAL CONSUMER:        The person that complete the production process. The person that end the production processes.

NAFDAC:                 National Agency for Food, Drugs and administrative control.

INPUT:                     The raw-material use in production of the soft drink

MERCHANTS:         These are people the deals in the buying and selling drink.

PRFERENCE:          The process of making choice by the consumers on their tasts.

FDA:                        Food and Drug Administration