The primary purpose of this study which is on appraisal of distribution strategies of Ice Cream firms is to identify the problem encountered by the firms in distributing its products. Chi-Square distributing technique was used as statistical tool in analyzing the data collected from the field. In the course of carrying out this research, the researcher found out that the high price of the products was as a result of poor distribution network. Therefore, the company should provide effective means of distribution so, as to reduce the prices of their products.
This project tends to explore the distribution strategies of ice cream firms with reference to fan milk Nig Plc Owerri.Distribution in its broader interpretation means the management of the movement of goods and material from there original sources to utilization point. Distribution system has been an important factor which organizations depends on as a means of increasing their wealth, it is said to be so concerns it self with channeling of goods and materials from production point to utilization point.On this premise, it becomes necessary or important for firms or organizations to map out strategies on how their goods or products should be distributed as well as controlling the distribution cost in other to achieve a favourable organizational goal and objectives.Also, there should be a predetermined decision by the firms on the choice or mode of its distribution operation, i.e a particular system of distribution have to be adopted
.1.1 HISTORICAL BACKGROUND OF THE STUDYFan milk Nig Plc Owerri was incorporated in Nigeria in 1963 as a subsidiary of the Holland fan milk Ltd. The Holland fan milk (Nig) Plc is an indigenous owned company, i.e, Nigeria’s share and voting right.With the indigenization decree of 1972, Nigerians now controls over 51% of the company’s total management position, living a small a proportion to foreign base expatriate managers in the company.The company has its headquarter at Ibadan and office in Lagos. The company has two factories, one at Ibadan which was founded in 1963 and the other in Kano in the year 1982. also, it has its depots all over the states of the federation. In Imo States it depot is located at Rotibi Street, Owerri. It operates through division which can be categorized into
Presently, the depot has many distributors (agents) throughout the state which makes use of buses motocycle and bicycle as a means of distribution.
1.2 STATEMENT OF THE PROBLEMS
1.3 PURPOSE AND OBJECTIVE OF THE STUDYSpecifically, the project work is aimed at achieving the following:
1.4 SIGNIFICANCE OF THE STUDYThis study will be significant to the following groups
To the shareholder, the study has made them to retain their shares and also gave them assurance on payment of dividend as it shows various means of distributing the company’s products thereby improving profitability.To the management, the study helped them towards their decision making in other to achieve their organizational goal and objective.To the investors the work has entered their knowledge about the company’s activities and operation so as to them invest in the company.To the student, the work was embarked upon as part of partial requirement for the department of marketing for further researcher, this study shall be used for frontiers of knowledge
To find solution to the problems conceived above, research question are articulated to enable the researcher to suggest a sound distribution system or network to the company. These are
To product a reliable result at the end of this research study, the hypothetical statements, which will be tested to show the validity of the research study are here under stated:Ho: effective management of the distribution network does not have any significant impact on the company’s sales volume.Hi: effective management of the distribution network has significance position impact on sales volumeHi: the high price of ice cream was as a result of poor distribution network.Ho: the high price of ice cream was not as a result of poor distribution network.
The nature of the study is to appraise the distribution strategies of ice cream firms, the study extensively examined the distribution network and limited to fan milk Nig Plc in Owerri metropolis.
1.8 DEFINITION OF TERMS