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Full Project – THE IMPACT OF MARKETING LOGISTICS ON CORPORATE PROFITABILITY IN THE BREWERY INDUSTRY

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CHAPTER ONE

1.1 INTRODUCTION

Modern marketing is concerned with the performance of the activities through which the needs of consumers is a society are identified and satisfied through the exchange process. It’s main interest is how to satisfy the identified needs of the people in a society. The new orientation in marketing discipline has entailed its search for various ideas, concepts and contribution from other older disciplines that can be of any help in achieving the goal of consumer satisfaction.

One of the discipline that have made on in road into marketing to help, establish it as multi disciplinary quasi- science is marketing logistics.

Olakunori (1999:6) States that since 1950 when logistics made an entry into marketing, it gained an increasing popularity. This is as a result of its immense contributions to marketing’s achievement of its overriding goal of consumer satisfaction.

Okakunoni (1999:7) quotes Ballow (1973:6) He sees marketing logistics as planning organizing and controlling of all moveable activities that facilitate product flow from the point of raw material acquisition to the point of final consumption and of the attendant information flows, for the purpose of providing a sufficient level of customer service (and associated revenues) consistent with the cost incurred for overcoming the resistance of time and space in providing the service.

Ani (1998) believe that marketing logistics is concerned with function of physical transfer of goods. It concern basically with two activities namely.

– Movement of goods from one place to another, including storage when necessary

– Condition of customer demand with supply of goods which can be made available to meet to.

Marketing logistics ensures’ that the activities of the material management and physical distribution function are well integrated and performed effectively and efficiently, so as to save cost and optimize the satisfaction of customers.

Olakunoni (1999:11) quotes Ballow (1973:6) noted logistics activitites as essentially the same whether performed in the military marketing, urban transportation, communication or government set- ups. They commonly involve the planning, implementation and control of the desired objective of flow at the right time and in the right condition or state. Each area has relevance to others. He noted that marketing logisitics is now receiving as increasing alternation from scholars. This is as a result of the significant role it has been found to play in manufacturing and marketing. It facilitates the efficient movement, storage and control of materials and finished goods in order to provide the much needed time, place and possession utilities for thee satisfaction of consumer.

The importance attached to marketing logistics in an organization like Brewery industry makes the researcher to examine critically, the impact of marketing logistics on corporate profitability with special interest on Nigeria Brewery NBC Enugu.

1.2 STATEMENT OF THE PROBLEM

Marketing logistics is a very important aspects of marketing which provides time, place and possession utilities for the satisfaction of consumers. However the implementation of this important aspect of marketing in the brewery industry leaves much to be desired.

It has been disarered that Breweries cannot effecientively make their products available to its numerious customers within Enugu metropolis. This has impacted negatively on the patronage of consumers. One may be in chied to suggest that some other factors that negatively effect marketing logistics of the industry includes scarcity of products, more Christmas in some remote areas in Enugu.

Ineffective marketing logistics has equally led to high price of these products in areas far away from factory or depot. At times when these products are available they are not enough. All these problems have affected customers patronage.

1.3 OBJECTIVES OF THE STUDY

The objective of this study among other things includes:

ØTo determine the impact of marketing logistics on the profit of br ewery industry.

ØTo appraise the marketing logistics activities of brewery industry in order to determine their impact on products availability.

ØTo determine whether distribution system dopted by brewery lead to increased customer patronage.

ØTo identify the causes of scarcity of soft drinks in Enugu.

ØTo find out whether soft drinks are available at the right time.

ØTo find out whether soft drinks are available at right quality .

ØTo offer solution and suggestion on how to tackle and alleviate marketing logistics problems.

1.4 FORMULATION OF HYPOTHESIS

HYPOTHESIS I

Ho: marketing logistics as adopted by NB PLC encourages consumer patronage of their products.

Hi: marketing logistics as adopted by NB PLC encourages consumer patronage.

HYPOTHESIS II

Ho: marketing logistics as adopted by NB PLC lead to increased market share by thr company.

Hi: marketing logistics as adopted by NB PLC lead to increases market share by the company.

HYPOTHESIS III

Ho: marketing logistics adopted by NBPLC do not help the company to fight competition.

Hi: marketing logistics adopted by NBPLC help the company to fight competition.

HYPOTHESIS IV

Ho: marketing logistics practice of NB PLC do not impact positively on their profit.

Hi: marketing logistics practice of NB PLC impact positively on their profit.

1.5 SCOPE OF THE STUDY

This study on the impact of marketing logistics on corporate profitability in the brewery industry concentrated on Nigeria brewery operations within Enugu metropolis.

1.6 SIGNIFICANCE OF THE STUDY

From the economic part of view production is not complete until the goods and services gets to the hands of consumers. This sudy will be of benefit to brewery industries and the case organization. The study will help them to plan their marketing logistics so as to effectively serve their customers at a reduced cost.

It will serve as a source of a documents to readers and researchers who will be interested in writing on a related topic. The consumers of soft drinks will equally benefit if th

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