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| Chapters: 1-5
| Pages: 78
REACHING THE CONSUMER THROUGH EFFECTIVE DISTRIBUTION
Distribution is the process of planning, implementing and controlling the physical flow of materials, final goods and related information from point of origin to point of consumption to meet customer requirements at a profit (Phillip Kotler and Amstrong 2001). It is the marketing function responsible for movement of products to the final users. It could be said that production is not complete until the goods reach the final users and for this to be accomplished, manufactured goods have to pass through distribution channels. The key point of this research work as concerns any business set up or organization especially one in a stiff Competitive economy like the case under consideration in this research work in respect of A-Z Petroleum Products Ltd needs to examine how it can effectively develop its distribution strategies. Distribution strategies on its own, is a broad conception of how resources are to be deployed to build a channel (or channels) linking the producer to the consumer to insuring that the product and associated services are made available to the target segment of the market. It concerned with efficient channel arrangements that may be used to make goods and services available to customers/users by deciding on which intermediaries and marketing channel structures to be selected to move products in the most competitive and efficient manner to satisfy customer’s needs and wants. However, it is very important to position the channel of distribution of lubricating products in strategic places where users can get them and at the right time probably by using more effective, efficient and strategic physical distribution pattern including well positioning of field salesmen, institutional distribution system of products etc. The level of the economy has put distribution into a less important position and scarcity or short supply of products. Most management today are interested on profit maximization without due attention to the effect of distribution on the company and economy as a whole. This call for the need for this research work to research intensively on the assessment of the effectiveness of the distribution strategies of A-Z Petroleum Products Ltd. A-Z Petroleum Products Ltd. has made considerable progress in the area of products development to meet international standard and effective marketing of lubricating oil to meet customers taste satisfactorily at reasonable profit. The company is using the distribution channel below:
Factory→ Depot→ Mega Distributors → Sub Distributors → Final Consumers
Distribution is the process of planning, implementing and controlling the physical flow of materials, final goods and related information from point of origin to point of consumption to meet customer requirements at a profit (Phillip Kotler and Amstrong 2001). It is the marketing function responsible for movement of products to the final users. It could be said that production is not complete until the goods reach the final users and for this to be accomplished, manufactured goods have to pass through distribution channels. The key point of this research work as concerns any business set up or organization especially one in a stiff Competitive economy like the case under consideration in this research work in respect of A-Z Petroleum Products Ltd needs to examine how it can effectively develop its distribution strategies. Distribution strategies on its own, is a broad conception of how resources are to be deployed to build a channel (or channels) linking the producer to the consumer to insuring that the product and associated services are made available to the target segment of the market. It concerned with efficient channel arrangements that may be used to make goods and services available to customers/users by deciding on which intermediaries and marketing channel structures to be selected to move products in the most competitive and efficient manner to satisfy customer’s needs and wants. However, it is very important to position the channel of distribution of lubricating products in strategic places where users can get them and at the right time probably by using more effective, efficient and strategic physical distribution pattern including well positioning of field salesmen, institutional distribution system of products etc. The level of the economy has put distribution into a less important position and scarcity or short supply of products. Most management today are interested on profit maximization without due attention to the effect of distribution on the company and economy as a whole. This call for the need for this research work to research intensively on the assessment of the effectiveness of the distribution strategies of A-Z Petroleum Products Ltd. A-Z Petroleum Products Ltd. has made considerable progress in the area of products development to meet international standard and effective marketing of lubricating oil to meet customers taste satisfactorily at reasonable profit. The company is using the distribution channel below:
Factory→ Depot→ Mega Distributors → Sub Distributors → Final Consumers
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