A Study of the Product Distribution System in the Brewery Industry

A Study of the Product Distribution System in the Brewery Industry

Abstract of A Study of the Product Distribution System in the Brewery Industry

This project which is a modest attempt to study the distribution system in the brewery industry taking consolidated breweries plc Awomama, brewery of “33” export large beer as a case study has been painstaking and systematically surveyed and analyzed by the researcher. As mentioned in the statement of purpose under chapter one, the main subjection of this study is to identify distribution problem and prospect in the beer market and the bight of both make some useful suggestions in that connection the researcher commenced this work by taking a quick and curso9ry look at the brief history and background information of the company chosen as the case study. Therefore the researcher highlighted the problems involved in the distribution operation of the company as well as other related marketing activities that have to do with distribution.

Chapter One of A Study of the Product Distribution System in the Brewery Industry

INTRODUCTION

Looking at the topic “A study of the product distribution system in the brewery industry”. A case study of consolidated breweries plc. Breweries of the famous “33” Export large Beer. Shows that it is topical both in time and place.

To be candid the image of our breweries is not what one should the proud of when compared to what is seen in the advanced countries.

The distribution system has been the most chaotic and to a large extent responsible or the increasing prices of beer. Marketing of products has two divergent but related processes the first of those processes deal with the search for and stimulation of the buyers while the second deals with the physical distribution of goods. Experience has shown that due to increased competition for market entrepreneurs and their marketing  execution have assigned most of their time not only in search and stimulation of goods with this function in mind. They are focusing their attention on developing a mix of products, prices, promotion and channels that would keep demand high, they have viewed physical distribution activity of making goods available to the buyers  supportive and subsidiary. An effective customers services physical distribution, a public limited liability company like the consolidated breweries plc is a weak position or state when it receives order for beer but no means of deliver them.

A BEER HOSTORY AND BACKGROUND IFORMATION OF  CONSOLIDATED BREWERIES PLC WITHY PARTICULAR REFERNCE TO “33” EXPORT LAGER

The research choose the above heading in order to differential between the two division the constitute the vast consolidated breweries plc.

Namely:

Beer division (“33” export lager beer).

the soft drink division (Hi- malt)

The reason for the differentiation is to create the beer division, while the research does not intend to neglect the importance of soft drink industry and its distribution system for fear  of inflating the research paper, I feel that the out come of my criticisms on the distribution system in the beer section will also be beneficial to the soft drink division. The consolidated breweries plc is a public limited liability company formed since 1983 under levities groups of companies management.

The Brewery is located at Km 24 Owerri/ Onitsha feral High way. The first chairman of the company was Chief J.O Udorji (CFR). The retired from the board with effect from December 31 1996 after piloting the affaires to this company for twelve (12) eventful years including 4 years after it’s merger with continent breweries ltd.

In those 12 years, the company had witnessed tremendous growths.

For instance, turnover has risen from less than N 26  million in the first year of operation to N1. 66 billion in December 1996, while profit before tax rose from less than N 4 million to N 90.39 million. The current chairman of the company’s prof (Mrs) Oyin Odutola OlUrin. The company’s raw materiel procurement is 60% locally and 40% foreign and has a normal production capacity of ill, 520 creates prepay.

There is a marketing department with a well defined organizational structure. The consolidated breweries plc has different sections which effect their sales.

They include empties cash product allocation and customers legislation sections.

Qualified sales representatives of the the company’s are posted on the basis. These sales representatives are in charge of various depots on their areas of operation. The company has many distributors all over the country. The fo0rm the core of the company’s distribution network which aimed at ensuring a steady supply of “3” export larger beer to customers their depots are located at owerri, Aba Onitsha, Port- Harcourt etc. they have fleet vehicle ranging from steer 3 tons vehicles, Mercedes 911 trucks and long trailers. The beer division of consolidate breweries plc force of over 400 employees.

MISSION STATEMENT OF THE COMPANY.

The main objective of the company is to industrialize the rural areas consequently offer employment to the teaming rural population. It is the wish of the company to develop the economy of the state and the nation in general. The company also wishes to render efficient services to it’s customers and what is more,. Make profits.

STATEMENT OF THE PROBLEMS

The need for efficient beer distribution within the system and the growing need for proper logistic have become very necessary. The consolidated breweries plc is operating in a competitive marketing environment with other breweries in the same industry and as such is confronted with a lot of internal and external problems on economic social, political factors. These problems which the encountered is found under he broad aspect of distribution method and distribution logistics

They includes:

the problem of inadequate transportation and storage facilities for effective distribution.

The problem of total neglect of marketing research as it absence militates against the standard markets, consumers and tier needs.

The problems of cushioning the staff competition in the beer markets due to proliferation and consequent over floating of the produce by other breweries plants in the country.

The problem of making their beer available in every part of the country rather than concentrating in those areas where the market had been established.

The problem of relegating the marketing concept to the background and adopting the sales concept which is unorthodox (marketing concept aim at customers satisfaction which sales concept is for profit maximization).

The problem of organized marketing department which can boast of adequate and right caliber of human resources with suitable experiment and transparent honestly.

The problems of the machine breakdown die to lack of spare parts of machines and adversely affected the company.

The problem of increasing cost of raw materials in the run affects the production cost and services like distribution.

It is note worthy to mention here that the research does not intend to claim that these are the only problems existing in the company. But since the aim of this project is not for a mere identification of the problems but to find the possibilities of getting consolidated breweries plc play the role in the high of those problems as their origin and that of those yet to be identified will be traced in the data analysis with their solution offered in the section dealing with recommendations.