PRODUCT PLANNING DISTRIBUTION AND MANAGEMENT IN MANUFACTURING ORGANIZATION (A CASE STUDY OF THE NIGERIA BOTTLING COMPANY’S PLC, ENUGU)
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PRODUCT PLANNING
DISTRIBUTION AND MANAGEMENT IN MANUFACTURING ORGANIZATION
(A CASE STUDY OF THE
NIGERIA BOTTLING COMPANY’S PLC, ENUGU)
ABSTRACT
Product planning distribution and
management in an organiztion are very vital in the production and distribution
of very manufacturing organization. Before ever a manufacturing company should
come out with a good quality product, it must undergo many processes, from
planning for either short range or long, fore casting doing market research and
consumer survey, protesting the product and introducing the product to the
market through different channels of distribution. The aim of this study is to
describe how the Nigeria bottling company plc, Enugu is really involved in the
process of product planning, distribution and management. This is done by
gathering information from certain problems usually associated with product
planning, and proposing remedial measures after revealing areas of problem. The
question in the questionnaire were based on the research question s
developed for this purpose while analysis were made using the chi-square (x2)
test and percentage from here a discussion of the findings, recommendation and
conclusion were made by the researcher. It is hoped that this will aid
managers in planning, distribution and managing the their products by taking
effective and efficient decisions in these important decision areas. For
examples the company should recruit highly staff and give them adequate
training.
TABLE OF CONTENT
CHAPTER ONE
INTRODUCTION
1.1
Background of the
Study
1.2
Statement of the
problem
1.3
Objective of the
study
1.4
Research
Questions
1.5
Scope of the
Study
1.6
Limitation and
Study
1.7
Significance of the Study
1.8
Definition of
Term
CHAPTER
TWO
LITERATURE REVIEW
2.1
Meaning of
Product
2.2
Product Classification
2.3
Product Planning and Product
Development
2.4
Design Areas in Product
Planning
2.5
The Function of Product
Planning
2.6
New
Product
2.7
Planning for New
Product
2.8
The expanding duties of the Product
Manager
2.9
Production Attributes
2.10
Product Positioning
2.11
Physical
Distribution
2.12
Physical Distribution Objective
2.13
Distribution
Channels
2.14
Selection Channels of
Distribution
CHAPTER THREE
RESEARCH DESIGN AND
METHODOLOGY
1.1
Research Design
1.2
Area of
Study
1.3
Population of the
Study
1.4
Sample and Sampling Procedure
s
1.5
Instrument for Data
Collection
1.6
Validity of the
Instrument
1.7
Reliability of the
Instrument
1.8
Methods of Data
Collection
1.9
Method of Data
Analysis
CHAPTER FOUR
DATA PRESENTATION AND
ANALYSIS
4.1
Presentation and Analysis of
Data
4.2
Data Analysis
4.3
Summary of
Results
CHAPTER FIVE
DISCUSSION
RECOMMENDATION AND CONCLUSION
5.1
Discussion of Results
5.2
Implication of the Research Findings
5.3
Recommendations
5.4
Suggestion for further Research
Bibliography
Appendix
INTRODUCTION
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
A product has been defined by the
American marketing association as any thing that can be offered to a market for
attention, acquisition or consumption including physical objects, services,
personalities, organization and desires.
A product as defined by stanchion in
fundamentals of marketing. A product is a set of tangible and intangible
attributes that leads to customer satisfaction. Product planning embraces all
the activities that enable a company to determine what product it will market.
Management deals with all those who
have supervisory responsibility ranging from the chief executive down to the
first line supervisor, in this case, management is regarded to as box, that is
those who direct the work of others and their own through their own offers and
efforts of others thus, product planning and management, comprises all the activities
that enables a customers wants and need respectively.
This involves the process of
effectively planning and regulating the operations of that part of enterprises
which is responsible for the actual transformation of materials into finished
products. This includes all the activities required. In storage and
distribution of the company’s goods.
This addresses the questions of.
a.
Which type of channels a seller should select for his product.
b.
Which particular middlemen include in each channel type and.
c.
How to management distribution system for effective performance. The company or
firm should know the degree of channel control desired, by controlling the
channel, the producer attempts to ensure that this product will receive the necessary
sales push as well as any other essential elements needed to present the
product properly and satisfy and customers.
The company of firm should make
necessary effort to control the quality of the product.
Product
quality- the
quality level to be built into the product is a conscious decision to be made
by the manufacture. A higher quality product normally is more costly to product
than a lower quality one and so commands a higher price on the market. The
quality level decision therefore should be related to the price range that will
be attractive to the mainstreams of potential buyers, quality is multifaceted.
It relates to, or depends on. Such factors as the quality of raw materials used
the production process itself, quality controls during production
packaging or dressing of the product, price of the product, the environment in
which the product is displayed for buys, the durability of the product is used
and the buyers, expectation and appreciation in general, product quality tends
to be high to the extent that any of the above factors is good or high as the
case may be. The quality produced has been in line with demand at a
particular point in time, so as to fight against out of stock and over
stock. The company has to be watchful at any point in time so as to know
what type of product to be produced, when to produce. How to produce, whom to
produce for the (target market) and cloy such a product is required.
According to Charles
A. Scheve and Reuben M Smith. The basic goal of product management is to ensure
that a product matches the wants and needs of consumers in its market. Then
many markets make the mistake of thinking that consumers feel and act as they
do and share their wants” invalid assumptions on the part of marketers. Results
to marketing failures previously, about one hundred years ago, there were few
producers. The sellers’ oriented type of market was prevailing consumers out
weighted the number of producers and little or no regards was paid to consumers
welfares.
Production concept of
marketing philosophy was prevalent. What ever was produced had to be consumed.
This goes to mean that the total produce concept is the entire set of benefits
the products provides to the consumers. No attention was paid to product
packaging, branding product quality and other important physical attributes of
a product.
As time went on, more
and more producers come into the market. This gave rise to conception among the
available producers consumption was based on good packaging brand image, product
quality convenient. This is known as product concept in marketing
philosophy. It is this situation that forced manufactures to spend time
in product packaging, labeling, branding etc.
Now due to
advancement in both technology and communication as will as production
equipment introduced into the circulation makes the market more complicated.
This is the era that brought about marketing concept. Here manufactures and
producers first of all is out to find really the needs and wants of consumers,
then the most admirable type colour, package design, branding and labeling that
all best suit the desire of the potential and actual consumers of the product.
Product planners must
try to match the firms resources lie when it is capable of producing with the
men, money, machines and materials and with the needs of consumers satisfaction
and highest company profits can be achieved with the limited resources
available,
Because of the sophisticated nature of
today’s Business, many tactics are being applied by different
companies to fight back competitions and to stand firmly in the market. Many
new products are constantly being introduced into the market. Innovators
are seriously doing their job; old and profitable products are modernized while
some are deleted out of the market. Companies use specific and admirable
packaging design, good branding and beautiful types of labeling to distinguish
their products from many in circulation. Similar products in the market.
Historical Background
of Nigeria Bottling Company
Nigeria Bottling Company limited is one
of few multination organization that had is beginnings in Nigeria from a small
family owned operation at Inception we have growth to become the predominant
bottler of alcohol free beverages in Nigeria, respective for the manufacture
and sale of over 33 different coca-cola brands.
The Nigeria Bottling Company Limited (NBC) was in corporate in November 1951, a
subsidiary of the A.G. Leventis group with the franchis to bottle and sell
coca-cola products in Nigeria. Production began in 1953 at a bottling
facility in Ebute metta, Lagos over the years. Production capacity has
grown and its presently has 13 bottling facilities and over 80 distribution
warehouse located across the country.
Since, production started, NBC limited has remained the largest bottler
remained the larges bottler of non-alcoholic beverage in the country in terms
of sales volume, with about 1.8 billion bottler sold per year, making it the
second larges market in Africa.
Today, we are part of the coca-cola Hellenic bottling company (Coca-cola
Helleric) one of the coca-cola company’s larges anchor bottles worldwide.
Coca-cola Hellenic operates in 28 countries services more than 560million
consumers and with 2.1 billion unit cases sales in 2009.
Our company is driven by over, 6000 employees, a culture of passion for
excellence, sophisticated technology and the best distribution network in the
country with 13high performing bottling plants, over 80 depots and over 200,000
sales outlets nationwide, we supply some of the most ubiquitous and best known
brands including:
Coca- cola
Fanta
Sprite
Schweppes
Eva water
Five alive
1.2
STATEMENT OF PROBLEM
In most business operations today the
task of planning and managing a product is not an easy one.
Emphasis is laid on the problems
associated with product planning distribution and management in an organization
in NBC PLC Enugu.
The company is having problems in
procuring raw materials. The reason is that.
a.
The Federal Government banned the importation of the base material-what?
b. Local
supplier does not always have enough to give
t he company.
c.
The local inputs have to be refined to bring them to the standard record by the
company.
d.
Transporting the raw materials is a problem since the company does not have
enough f town trucks.
e. The raw
materials are usually bulky.
The company is also
having problems in product planning and development.
The reason being that the company
exists in an economy strangled by hyperinflation and insecurity. Consumers are
now being very careful on what to spend for or consumer.
Another problem that the company
encounters is that of increased competitions from companies like 7 up bottling
PLC. The company’s competitors are having a high quality of product often not
much different from the NBC. Even where NBC gain in terms of quality and
diversification, other gain by more liquid content, as 7 up against sprite and
cheaper prices.
In the area of distribution and product
management, the company has insufficient number of trucks and experiences
bottle breakages and pilferages.
1.3
OBJECTIVE OF THE STUDY
This study is purely on product
planning, distribution and management. It aims at describing how NBC PLC is
really involved in these tasks. To do this the study is armed with information
gathered from extensive literature review as a base.
The main and primary objectives of this
study:
1.
Is to define certain problems usually associated with product
planning distribution and management in NBC PLC which require a proposal of
remedial measure after reveal areas of the problems, they will study.
2.
Investigate on the areas of the company’s procurement of raw
materials use. How the company plans for its products. How this product is
developed.
3.
To know how management and workers take decision, what
channel of distribution is used, and how are the products managed from
production to consumption.
It is also important
to mention that this research work is very vital in partial fulfillment of the
award of ordinary national diploma (OND) in the polytechnic IMT Enugu state.
1.4
RESEARCH QUESTIONS
For the purpose of this study the
following research question have been proposed by the researcher.
1.
Do you have problems in procuring raw materials used by your company?
2. Do you plan
for your product before production?
3.
Do you encounter certain problems in planning and managing your products?
4.
Do you normally meet up with demand during peak period?
5.
How does distribution cope with the distribution system of your company?
6.
Do your products meet a real need of consumers or do they complain of poor
quality.
1.5
SCOPE OFD THE STUDY
This
study covers the Nigerian Bottling company PLC Enugu the producer of
i.
Coca-cola
ii.
Sprite
iii. Fanta
(Quinine and Orange)
iv. Krest
v. Tonic water
vi. Chapman
vii. Club soda
The researcher basing my write up-on
coca-cola which is the first product of the company when it started production
in 1963.
For NBC PLC, Enugu this study is
structured to consider product planning distribution and management in an
organization only.
1.7
SIGNIFICANCE OF THE STUDY
This write up is likely to be
beneficial to three parties particularly. The student (Writer). The subject
matter (Nigerian Bottling Company PLC Enugu) and the Institute of management
and technology (IMT) and probably the country in general. It is
beneficial to the write in the sense that it gives him opportunity to review
personally almost all that it exposed the writer to a very wide area f business
most especially during the cross of research and widened his knowledge. Also
with the opportunity provided by the research study, the writer having obtained
facts from research carried out will be privileged to express higher opinion
based on personal judgment on the subject matter (Nigeria Bottling Company PLC
Enugu) when the suggestions and recommendations provided by this study are
implemented this is it fault will reality the weaknesses identified during the
course of study. Also the exposure and awareness which this project will create
about (Nigerian Bottling Company PLC Enugu) could help in attracting different
categories of individuals and groups to come and invest in (Nigeria n Bottling
Company PLC Enugu as required by the Authority.
Finally, since it is generally believed
that examination alone does provides the true test of one’s ability or
knowledge the polytechnic could use this project work to measure the performance
and seriousness of the student or writer.
1.8
DEFINITION OF TERM
Because of the misconception of product
and the mis-positioning of products there is need to explain some productions
know how which few has been explained above.
Organization
of Branding: Organizing of the product
branding
is a variable product attribute. Branding considered as one aspect of product
policy. It seemed also to be a phase of promotional policy since it is a
communication. Brand policy issue center ground the question of whether to
brand in the first place and their whether to use individual product brand of a
family or blanket brand. The same brand far all the product in the line in
there exist a problems of whether to sell price brands.
Product
Positioning: Management ability to position a
product
appropriately in the market is a major determinant of company profit. According
to William Stanton. A product position in the image that product prefects
is relations to competitive products by the company in question William
Stanton goes on saying that the more to product positioning is an attempt by
business.
Physical
Distribution: This is the part of marketing that
addresses
how product are moved and stored. A physical distribution channel include
intermediates often not considered to be part marketing channel, such as
transportation companies public were house and insurance companies that
participates and the movement and a towage of products. These agent who do not
take thrift to actually own the goods they handle are referred functions is to
facilities the movement of goods.
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