ABSTRACT
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.
CHAPTER ONE
1.0 INTRODUCTION
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
- Manufacturing division
- Technical division
- Trading division
- Service division
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
- Poor transportation system which exis in the state tends to be the major hinderance in the distribution of the Ice cream product from one depot to another
- Constant power failure which leads to meltage of the ice cream also affects the distribution as they are better sold when block.
- Lack of storage facilities is another problem. This occur when there is low demand on the product which takes much time to distribute, and if the facilities i.e not enough to store the ice creams it may lead to damage.
- Lack of training and retraining of workers core equally problems affecting the distribution network of ice cream in different parts of the state.
1.3 PURPOSE AND OBJECTIVE OF THE STUDYSpecifically, the project work is aimed at achieving the following:
- To generally appraise the distribution strategies of fan milk Nig Plc.
- To identify the defects in its current distribution network.
- To identify the problems that fan milk usually encounter in distributing its products.