This research work is mainly on effectiveness of physical
distribution of Chris sachet Water in Enugu metropolis. The data needed
for this study was collected from employees, consumers of Charis sachet
The objective is to find out if their products have very
wide demand within Enugu metropolis. To determine the rate of
satisfaction of consumers with the present level of physical
distribution and to know if their product reaches the consumers at the
worked for. The research methodology employed were questionnaires and
observation of how physical distribution are implemented.
In addition, various statistical models like Top man
formular and Z test techniques were used in calculating the sample size
and testing of the hypothesis respectively.
From the analysis of the data obtained it was discovered
that Charis sachet water have very wide demand within Enugu Metropolis
that dealers are not satisfied with the present level of physical
distribution service they receiving, products are not distributed to
very point where they are needed at the right time and quantity and that
they receive complaints from customer with this it was recommended that
Charis sachet water should increase their product quantity for greater
market share, improve physical distribution by providing enough product
at the right time and right quantity and customer oriented.
Based on the findings, and the various facts highlighted, the following where recommended.
1. Product high quality should be maintained for continual greater market share.
2. In view of the fact that the initial problem of
the company is finding capable distribution outlets, the company should
engages more on intensive physical distribution system so that the
numerous customers are adequately reached.
3. The company should also try as much as possible to
stop renting if this is implemented the warehousing (depot) facilities
must be satisfactory
4. The company should provide more storage facilities
to customers and Kiosks to every customer in order to increase sales.
5. The sales truck should serviced more often to
avoid break down to enable it render adequate interrupted delivery
service and this will minimize complaints from customers.
TABLE OF CONTENTS
Table of contents
CHAPTER ONE: INTRODUCTION
1.1 Background of the study
1.2 Historical background of the company
1.3 Statement of the study
1.4 Objective of the study
1.5 Significance of the study
1.6 Limitation of the study
1.7 Research questions
1.8 Setting of hypothesis
1.9 Definition of terms
CHAPTER TWO: REVIEW OF THE RELATED LITERATURE
2.1 Meaning of physical distribution
2.2 Nature of physical distribution
2.3 Overview of physical distribution
2.4 The growth and development of sachet water
2.5 Concept of physical distribution
2.6 Activities involved in physical distribution
2.7 Physical distribution in Enugu
2.8 Importance of physical distribution
3.1 Scope of the study
3.2 Source of data
3.2.1 The primary data
3.2.2 The secondary data
3.3 Questionnaire design
3.4 Determination of sample
3.4.1 To obtain probability of success and failure
3.5 Questionnaire completion time
3.6 Questionnaire allocation and sample size
3.7 Reliability test
3.8 Method of analysis
CHAPTER FOUR: PRESENTATION, INTERPRETATION, ANALYSIS OF DATA AND TESTING OF HYPOTHESIS
4.1 Distribution and collection of questionnaire for
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION.
Summary of findings
1.1 BACKGROUND OF THE STUDY
Production is uncompleted until the good get to the final consumer
whom they are meant. A typical firm will deliver or discover that the
consumer for its products are scattered abroad.
The firm decision to distribute its products directly through own
sales outlets or indirectly through marketing intermediaries such as
wholesale and retailers alone is not enough to get the goods to the
consumers. The firm has to ensure that the product are actually
available or make available to the distribution at lets.
Adequate core has to be taken of the products minimize losses or
damages, and commensurate customer service have to be given in order to
achieve customer satisfaction and increase patronage.
In order management of the flow of products from manufacturer to
consumer with aim to achieve consumer satisfaction and goal of the firm,
physical distribution must be properly channeled to this respect. The
increase emphasis given to the concept of the 1950,s is a practical
example of its immense contribution to the successful achievement of
marketing goals. Physical distribution is just how companies store;
handle more goods so that they will be available to consumers at the
right time and place.
Consumers attraction and satisfaction are highly influence by the
seller physical distribution capabilities. As such the issue of physical
distribution is important in business endeavour. An executive physical
distribution which result to a reduction in cost of physical
distribution will lead to a reduction in production cost or product
price, which will invariably head to the attraction of many price
In Nigeria and as well as most other nations, industries are
localized or concentrated in few industrial cities or layout wile the
consumers or their products are scattered abroad.
Efficient transportation and location of sales outlets will enable
industries to make their products available to consumer living very far.
Efficient transportation and physical can give a company advantage in
being close to these consumers.
For example, vita malt drinks produced by Associated Breweries Ltd.
In Ogun State of Nigeria compete favourably with other malt drinks in
virtually all ports of the country as a result of the efficient planning
and coordination of physical distribution activities which make goods
available at the right place and time or where right place and needed.
Expert believe that substantial savings can be gain in the physical
distribution area which has been describe as “the last frontier for cost
economics” (Journal of marketing April 1962:15)
Physical distribution in the sachet industries should be intensive
they should stock their products in as outlet are possible. The goals
must have place utility. Cigarette for example, since over one million
outlets to maximized brand exposure and convenience.
Physical distribution should be intensive because consumers are not
efficient distribution of the product is very important to gain
marketing goals and to compete efficiently and effectively too.
1.2 HISTORICAL BACKGROUND OF THE COMPANY
Charis sachet water industry one of the leading name in sachet water
industry in Enugu Metropolis. The company is located in heart of the
commercial city of Enugu J.E Collince company was establishes over a
decades with improved capacity physical distribution of their products.
The company has so many distribution outlets and target geographical
areas. The J.E. Collince the makers of Charis sachet water was among the
largest sale sachet water in the industry in Enugu.
The profitability and success of the company can be clearly traced as they are heavily patronized in the competitive business.
The company is located in heart of Enugu metropolis (River Asata
layout). The company have a brand name Charis water which the production
site is in No. 3 Mildland Avenue, Asata River layout Enugu.
1.3 STATEMENT OF PROBLEMS
Physical distribution is a very important aspect of distribution
activity as it creates place and time utility and set the stage for
possession and title utility. All gained towards customers satisfaction.
Based on this therefore, there is need for a careful handling of the
physical distribution functions for a successful operation of sachet
However, for Nigeria sachet water industries physical
distribution system to beat lest near perfection. It must rate highly in
its care activities such as transportation, warehousing, inventory
management, and others.
Processing also have the ability to organize these price of
activities properly and implement them efficiently and effectively, at
time the salesman are not efficient in carrying out their physical
More so, the salesmen arbitrarily raise the cost of each
buy of sachet water sold to intermediary, market thus reducing their
margin some times the degree of the wholesalers margin affect the final
customers. In some cases, the customers do not get enough of the
products at the right time and in the right quality.
In the case of Charis sachet water industry they don’t have
enough outlets for their product. Nevertheless, for them to compete
effectively and efficiently with other sachet water company’s they need
to have enough outlets for their products.
In most cases, the salesman direct some products already
allocated to the company’s customers. More so, the distribution of
Charis sachet products have a direct relationship with sales turnover it
A negative response to any of these points will indicate
that there is deviation from what should normally obtain. The desire to
find out if any of such problem exist, their cause effect and what may
be done to resolve such problems are the reasons for undertaking this
1.4 OBJECTIVE OF THE STUDY
In consonance with the macro objective to determine the effectiveness
of physical distribution of Charis product in Enugu metropolis, this
research has some objective which includes;
To study the physical distribution activities of Charis sachet water
in Enugu and try to find out if these activities are well performed as
Analyzing the present physical distribution system with the aims to accessing its level of efficiency is another point.
To determine the nature of the market; if it diffused, concentrated or dusted.
To also determines the extent to which the distribution of Charis dates with the sale being made.
1.5 SIGNIFICANCE OF THE STUDY
It is important to study the effectiveness of physical distribution because without distribution companies cannot make sales.
The old buying in marketing was, that when you produce the product
the whole world will bit a part to your door. In the modern time, it
dose not apply because the place utilizing must be incorporated. This
means that in addition to producing the best product, the customers must
be communicated and they may want it delivered at a given time, place
and form and such it the function of physical distribution.
Non- durable products such as Charis sachet water have to be supplied
as at when needed. Any short fall in performance will reduce the level
of customer service.
Thus it become important to study the physical distribution system
and benefit from this effective they are and uncover and defects
inherent within the system and then recommend measures to reduce or
eliminate these defects.
Furthermore, it is expected that findings of this study will help the
management and distribution of this company in improving their business
activities. Customers will also benefit from this efficient physical
distribution in that Charis product which will be made more ready
available to them at all time.
1.6 LIMITATION OF THE STUDY
There is the problem of lack of time. The work is very elaborate yet
we have very limited time to accomplish it and with other tight
schedules. However, because of the importance of the subject matter, we
are able to carry out a justifiable work from where dependable
generalizations could be made again, there was there problem of
financial constrain of the nations economic crunch.
The high cost of transportation to this company under study was also
hindrance in the sense that most time the researcher had to repeat his
visit twice or thrice a week before getting the information required.
Also the consideration.
1.7 RESEARCH QUESTIONS
The research question for this work will be base on the following.
What is the size of demand for Charis waters? Are customers satisfied
with the present level of physical distribution service of Charis?
Does Charis has enough distribution outlet to satisfy the customers.
What is the distribution objective of Charis? What presentation of
market is Charis serving? What is the type of Channel structure used by
Charis? Is it from the produceto the customers or with the use of
intermediaries? Does the distribution strategy questionnaire regular and
fulfill the issue of time lines is it effective in terms of cost and