THE IMPLICATION OF DISTRIBUTION OF CONSUMERS GOODS FOR CONSUMERS SATISFACTION.
A CASE STUDY OF GUINNESS NIGERIA
TABLE OF CONTENTS
CHAPTER ONE
Introduction
Statement of the Problem
Purpose of Study
Research Questions
Significance of the Study
Scope and Limitation
Definition of Terms
CHAPTER TWO
2.0. Literature Review
2.1. Introduction
2.2. Channel of Distribution
2.3. Types of Channel
2.4. The Functions of the Distribution System
2.5. Basic Distribution Strategies
2.6. The Effective Distribution Channel
2.7. Ranking of Elements of Physical Distribution
2.8. Major Consideration for Channel Selection
2.9. Nature of Guinness Nigeria Plc
2.10. Background/Distribution System of Guinness Drinks Nigeria Plc.
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
3.2. Population of Study       
3.3. Sample Size
3.4. Sources of Data
3.5. Sample and Sampling Method
3.6. Data Collection Method/Measurement
3.7. Method of Data Collection
3.8. Analytical Procedures
3.9. Coding
CHAPTER FOUR
4.0. Data Analysis and Interpretation
4.1. Introduction
4.2. Presentation
4.3. Analysis of the Data Collected from Respondents
4.4. The Questionnaire
4.4.1.Description of the General Characteristics Respondents in the Study
4.4.2. Analysis of Demographic Data
4.4.3. Analysis of other Data (Section B of the Questionnaire)
4.4.4. How is Guinness Nigeria Plc Products Spread in the Market  Segments
4.4.5. What are Distribution Strategies of Guinness Nigeria PLC
4.4.6. Are the Distribution Strategies of Guinness Nigeria Plc Effective
4.4.7. How adequately are the Current Distributions Strategies of Dunlop Nigeria Plc. Reach its Customers?’
4.4.8. How is Dunlop Nigeria Plc Distribution Goals related to its overall Marketing Objective?
4.4.9. What are the strengths in the channels of Guanines Nigeria Plc
4.4.10. What are the Weakness in the channel of Guinness Nigeria Plc.
4.4.11.Other ways that the distribution Strategy of Guinness Nigeria has contributed to Customers loyalty satisfaction (Question B)
4.4.12. Other Distribution Strategy of Guinness Nigeria Plc (Question 17)
4.4.13. Other Distribution Goals of Dunlop Nigeria Plc (Question 2.4)
4.4.14. Other Strength in the Channel of Distribution of Guinness Nigeria  Plc (Question 31)
4.4.15. Other ways in which Guinness Nigeria Plc can overcome its Distribution Channels Weakness
CHAPTER FIVE
5.0. Summary of Findings, Conclusions and Recommendations.
5.1. Introduction
5.2. Summary of Major Findings
5.3. Implication
5.4. Conclusion
5.5. Recommendations
       Bibliography
       Appendix
CHAPTER ONE
INTRODUCTION
Marketing is a process whose principle is to promote and facilitate exchange through marketing individuals and groups obtain what they need and want by exchanging produce and services with other parties such a process can occur only when there are at least two parties each of which has something to offer. In addition exchange cannot occur unless the parties are able to communicate about how to deliver what they offer.
Marketing is not a conceive process, all parties must be free to accept or reject what others are offering. So defined, marketing is distinguished from other modes of obtaining desired goods such as through self production, bargain theft, or force (Achumsbaelal, 1994). Marketing is not confined to any particular type of economy because goods must be exchanged and therefore marked in all economies and societies except perhaps in the must primitive.
Furthermore, marketing is not a function that is limited to profit oriented business. Even such institutions as hospitals, schools and museums engage in some forms of marketing. It is a specialized discipline as well as a philosophy of doing business. As a specialized discipline it deals with the performance of those activities, which are directly involved in or facilitate the exchange function (Kotler 1980). No production of productive sector can exists unless a market exists for even if productive activities are started, the absence of sufficient market would force the cessation of such activities (Iyanda 1988).
Marketing as a philosophy is practiced in all aspects of economic life. It is vital to improving living standards, it brings about social changes and in enhancing the development of management and entrepreneurial talent in any nation (Raoend Iyenda 1983) at the top organization level, marketing makes a vital contribution to the advancement and satisfaction of human needs. It provides the means, by which organization identifies unfulfilled human needs, convert them into business opportunities and create satisfaction for others and profit for themselves. The capacity of organizations to survive and prosper depends on their ability to continually create value for target markets in the world of ever changing human needs and wants.

The task of distribution is to make goods physically available to buyers. Thus bridge the gaps of space and time between production and usage or consumption. The advent of structural advancement programme has seen the emergence of rearrangement in the distribution system in the country (Emoekpere, 1989). It must be mentioned that the role of marketing and distribution in any economy can only be effectively played when there are adequate marketing infrastructures (Osuagwu et al 1998) Transportation networks such as road rail, sea and sire services must be effective in bridging gap between production and consumption.
Communication media that are adequate in terms of spread and variety print and electronic media must be available.
In general, the goals of manufacturers is the choice of channels that ensures desired market exposure for their products, prompt delivery to their customers, low distribution cost, high sales turnover and maximum profit. However, the nature of the product, the environment which the firm must operate, and the specific marketing objectives of the firm, all interact to determine the channel structure the firm will choose. Although, in times past, the “seller” market situation has characterized the selling of manufactured goods in Nigeria thus has given way the face competition today resulting in low sales turnout, reduced market share, increased operating costs and dwelling and dwindling profit. In a situation like this, an efficient customer service may be the only means of ensuring customer’s loyalty. It is therefore necessary that channels to eases the degree of effectiveness in terms of attainment of the marketing objectives.
Another reason calling for evaluation of the distribution channels are the need to maintain channel goodwill and control once the channel has been selected. Conflicts to ensure from time to time, which may be due to the decision, goals end communication. Thus by evaluating the channel management will be to asses the extent of the conflicts and work towards resolving them. Increased efficiency and enhanced effectiveness of the distribution system will always improve customer services. This may be possible by minimizing stock outs, solidifying relation with customers, improving market coverage, better utilization of market personnel to create demands as well as engaging in cost reduction activities such as balancing inventory level to match customer’s requirements (Kotler, 1996).
Presently, Guinness, Nigeria Plc market seems concentrated in Lagos and there is no need to effectively penetrate other areas outside Lagos, it is also becoming increasingly necessary to evaluate the current channel structure, and discover other strategies that will best fulfill customer’s requirement whilst fulfilling company’s goals of effective reach and profitability. This research is an attempt to answer these seemingly differing objectives.
STATEMENT OF THE PROBLEM
With the interest rate fixed, there is an acute shortage of loanable funds to facilitate real sector investment. Producers are confronted with higher unit production cost, low capacity utilization, diminishing disposal income, high inventory and debtor’s level and in some cases outright factory closures. All these account for local production being more expensive instead of being more competitive when compared with imported Guinness drinks.
The significant high inflation rate reduces consumer’s purchasing power. Dealers are caution regarded building up of stock due to the seemingly unending socio-economic instability. Producers found it almost impossible to increase selling price to recoup the upsurge in production costs and are increasing for acing chargers. Manufacturing concern recorded a significant build up of finished goods, while those who succeeded in selling did so with increased debts level at lower margins.
Than the aims of the company regarded efficient / effective distribution can be achieved and balanced between marketing the products readily available with the minimization of total costs increased on inventory transportation and storage.
Thus other problems to be examined are:
The examination of how the organization segmented its market
Investigate low distribution strategies of the organization had contributed to the consumers satisfaction and create loyalty
The identification of the distribution strategies of the organization
Determination of whether the distribution strategy of the organization is effective in meeting distribution objective of the organization
Examination of the adequacy of the current distribution from strategies in the organization.
Ascertain the distributive goal of the organization
 The assessment of the distribution channels with a view to identifying the weakness and strength in order to reposition the channels strategy for effective distribution network.
PURPOSE OF STUDY
The main purpose of undertaking this study is to access the effectiveness of the current distribution channels structure of Guinness Nigeria Plc.
The purpose of this study is as follows:
Examine low Guinness Nigeria Plc products spread in the market segments
To investigate how distribution strategies of Guinness Nigeria Plc contributes to consumer satisfaction/loyalty
To identify the distribution strategies of Guinness Nigeria Plc
To determine whether the distribution strategies of Guinness Nigeria are reaching its customers.
To determine how adequate the current distribution strategies of Guinness Nigeria are reaching its customers
To determine Guinness Plc’s distribution goal
To determine how Guinness Nigeria Plc’s distribution goal relates to its overall marketing objectives.
To carryout assessment of the distribution channels of Guinness Nigeria Plc with a view to identifying the strength and weaknesses in the channels.
To proffer solutions that will help Guinness Nigeria Plc over come its channel weaknesses.
 RESEARCH QUESTIONS
The following research questions will be answered by this research.
How is Guinness Nigeria Plc’s product spread in the market segment?
How the distribution strategy of Guinness Nigeria Plc does contribute to consumer satisfaction/loyalty?
What are the distribution strategies of Guinness Nigeria Plc.
Are the distribution strategies of Guinness Nigeria Plc effective?
How adequately are the current distribution strategies of Guinness Nigeria Plc reaching its customers?
What are Guinness Nigeria’s plc distribution goals?
How are Guinness Nigeria Plc distribution goals related to its overall marketing objective?
What are the strength and weaknesses in the channels of Guinness Plc.
How can Guinness Nigeria Plc overcome its channels weakness?
HISTORICAL DEVELOPMENT OF MARKETING
The marketing discipline had its origin in the early 20th century as an offspring of economics. Economics Science had neglected the role of middlemen and the role of function other than price in the determination of demand levels and characteristics.
Early marketing economists examined agricultural and industrial markets and described them in greater detail than the classical economists. This examination resulted in the development of three approaches to the analysis of marketing activity, the commodity, the institution and the function. Commodity analysis studies the ways in which a product or product group is brought to market. A product analysis of milk for example, traces the way in which milk is collected at individual’s daily firms, imported to and processed at local daily cooperation and shipped to grocers and supermarkets for consumer’s purchase. Institution analysis describes the type of business that plays a prevalent role in marketing. Such as wholesaler or retail institutions. For instance, an institution analysis of clothing, wholesaler examines the ongoing concern that wholesalers face on order to ensure both the correct supply for their customer and the appropriate inventory and shipping capabilities.
As a functional analysis examines the general tasks that marketing performs. For example, any marketing effort must ensure that the product is transported from the suppler to the customer.
In some industries, this transportation function may be handled by a truck, while in it may be done by mail, television signal, or all those institutions perform the same function.
As the study of marketing become more prevalent throughout the 20th century, large comprises particularly mass consumer manufacturers begin to recognize the importance of market research, better product design affection with consumers in the success of their brands moved into the industrial goods sector and subsequently later moved into the industrial goods sector and subsequently into the service sector. It soon became apparent that organizations and individuals market goods and service but also idea (social marketing) places (local marketing) personalities (celebrity marketing) (events marketing) and even the organizations themselves (public relations).
As marketing develop it took a variety of forms it was noted about that marketing can be viewed as a set of functions in the sense that certain activities are traditionally associated with the exchange process. A common but advertising are the only marketing activities yet in addition to promotional marketing includes a much broader set of functions including products development packing pricing, distribution and customer service. Many organization and business assign responsibility for these marketing functions to a specific group of individuals within the organization. In this respect marketing is a unique and separate entry. Those who make up the marketing department may include Brand end product mangers, marketing researchers, sales representative, advertising and promotion managers, pricing specialists and customer service personnel. As a managerial process, marketing is the way in which an organization determines its best opportunities in simply getting new customers and loosing old ones’ will not help the organization achieve its objectives.
Finally marketing is a social process that occurs in all economics regardless of their political structure and orientation. It is the process by which a society organizes end distributes its resources to meet the material needs of its citizens. However, marketing activities is more pronounced under condition of goods surpluses than good shortage.
When goods are in short supply, customers are usually so divisions of goods that the exchange process does not require significant promoted or facilitation. In contrast, when there are more goods and services than customer’s need or want, companies must work harder to convince customer to exchange with them.
SIGNIFICANCE OF THE STUDY
The successful completion of the research work is reveal clearly the important and the need for effective distribution of consumer good in order to create maximum satisfaction to the consumers because it is not enough producing these satisfying goods without getting and marketing it verily available at the door step or where they can easily get it.
Furthermore, the study will point out the aspect of distribution channels that should be improved useful and update them in order to improve or increase performance and profitability policies one consumers goods.
It helps the organization in choosing the type of physical distribution and channels member the market place, given its objectives and resources the marketing process is divided into a strategic and a tactical phase.
The strategic phase has three component segmentation, targeting and positioning (STP). The organization must distinguish among different group of customers in the most (segmentation) choose which groups it can serve effectively (targeting) and communicate the central benefit it offers to that group (positioning). The marketing process includes designing and implementing various tactics, commonly referred to as the marketing mix” or the “4ps” product, price, place (or distribution) and promotion. Evaluation, controlling and revising the marketing process to achieve the organizations objectives as follows the marketing mix.
The managerial philosophy of marketing puts central emphasis on customers satisfaction as the means for gaining and keeping legal customers.
Marketers urge their organization to carefully gauge target customers expectations and consistently meet exceed these expectation. In other to accomplish this everyone in all areas of the organization must focus on understanding and serving customers, it will not succeed if all marketing occurs only in the marketing department. Marketing, consequently, is for too important to be done solely by the marketing department. Marketing also want their organization to move from practicing transaction oriented marketing, which focuses on individual exchangers, to relationship driven  marketing, which emphasize serving the customer over the long term to employ. The research work will be useful to the society and government at large. It will be useful also to the channel its members improving their performance and individual like the retailers.
This research study will also go a long way in contribution meaningfully to the vast pool of knowledge that already exists on the physical distribution policies.
SCOPE AND LIMITATION
The scope of this study covers Guinness Nigeria Plc Benin, thus all findings shall be limited to the above organization and over therefore not applicable to other organizations.
Also the limitation of this research work includes financial constraints, time frame for adequate work and logistic in terms of accessibility of some respondents especially those on the managerial level and the release of some vital information on their organization with fear that it will leak to their competitors who will take advantage of it. All these have made the work for the research cumbersome.
DEFINITION OF TERMS
Marketing: A social and managerial process by which individuals and groups obtain what they need, what through creating offering and exchanging product of value with others.
Effectiveness: The act of producing a desired result
Profit: An excess of income over expenditure in a particular transaction or over a period of time.
Distribution: Thus involves transportation of the goods as well as the middle men who handle the goods and helps to transfer title of goods.
Customer: Person who buys or uses goods of goods.
Product: A product is a bundle of benefits offered to satisfy customer’s needs