SELLING AND DISTRIBUTION STRATEGIES OF A PRODUCT

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SELLING AND DISTRIBUTION STRATEGIES OF A PRODUCT

(A case study of Dangote Flour Mill Abuja)

ABSTRACT

The objective of this project work is to highlight the implication of selling and distribution strategies to a product. This study is significant because, it will help in solving the statement problem of selling and distribution strategies of a product. A view of relevant literature done by other writes on this subjected will be carried out by the researcher. Its objectives in selling and distribution strategies of a product are to have positive satisfaction from consumers and to gain the highest market share in a competitive marketing environment. The study aimed at identifying the strategies of selling and distribution of a product in competitive product with the view to avoid new product failure.

CHAPTER ONE

INTRODUCTION

1.0   INTRODUCTION

A firm’s selling and distribution on strategy is a major concern for any company that depends on a product for its profit. That product must somehow get from the source of production, such as factory to the place where the consumer can buy it. The process by which this happens is called distribution.

A distribution network is established by answering the question of who, what, when, where and how in terms of getting products to their end point. Business operator must discern who is responsible for sending and receiving the product and who will transport it.

They must also decide what product are transported to which outlet and whether there are different distribution strategies for different product lines.

Someone must schedule when items will be sent from work to market, department. In this case it is very vital to involve constant philosophy for selling and distribution of products as a means to achieve the objectives of the organization. This is because many business of the organizations believed that the key to making profit is to have a special skill of penetrating the prospectors mind to know further what goes on therefore a company to be of a serious relevance in the marketing arena.

In this case Dangote Flour Mills needs to embrace this selling and distribution strategy as to enjoy the benefit of adoption.

1.1   HISTORICAL BACKGROUND OF THE CASE STUDY

Dangote group of company was founded by Alhaji Alico Dangote in May, 1981 as a trading business with a sum of 500,000 loan reporting from his maternal ground father Alhaji Dantata.

The loan which was expected to be paid back in three years was paid within three months, since then there has been no stopping to become the biggest player in flour production in the industry. Yet flour production is just a function of investment of Dangote Group. The group has other subsidiary company such as a cement production factory, sugar refinery factory etc.

What is known today as Dangote Flour Mill Company is the one on the key thrusts of the economic reform policy of the present administration is backward integration which could also be referred to as “thick-home philosophy” it is against this bedrock group that the giant strides made by Dangote Group in the area of manufacturing particularly would appreciate in the area of manufacturing and the production of flour. Dangote group having proved to be one of the fastest grouping conglomeration in Nigeria, has carved a niche for itself a law to remain a prominent corporation player in stimulating national growth through the application of liaisons of the present administrations economic perform policies.

Propelled by its corporate visions of being a trading provider of man’s essential needs of food and clothing, Dangote Group are into flour production, salt processing, sugar refinery, cement bagging among others.

In the area of flour milling, Dangote group has established three mills located at Lagos, Kano and Abuja. They have a cumulative annual production capacity of one million metric ton, meanwhile, the increasing demand of the Kano mill and the establishment of a new mill in Ilorin with completion of these products, the total production capacity of the mills will come up to 1.4 million metric tons.

1.2   STATEMENTS OF THE PROBLEMS

It is a fact that no firm can serve customers with all their needs and wants, this being the case, firm is faced with the problems of

1. Considering the problem facing the area of selling and distribution strategies of product with the view of its impacts on the company’s products.
2. To gather opinion from group of people, the company’s operation on how bets company’s operations with a view of offering useful suggestion on how best company can effectively market it’s products to the general public.
3. To widen the knowledge of the researcher by blending the critical aspect of the study obtained in the company and how selling and distribution is being carried out. When it confirms with the modern day selling and distribution strategy of products.

1.3   OBJECTIVES OF THE STUDY

The general objective of this project work is to identify the relevance of selling and distribution strategy, which is a pre-requisite to the award of National Diploma in Marketing.

1.4   SCOPE OF THE STUDY

This research work is carried out to find out how effective selling and distribution strategies of a product is used in the overall strategic planning of an organization and how it has improved status of the company but due to financial constraints, the researcher limit herself to Dangote Flour Mill as the case study of this research work.

1.5   STATEMENT OF HYPOTHESIS

The hypothesis serves as a guide towards the aim and objectives of this work. The research has this basic factor which will put to test. The fact shall be donated by

H_o:   Selling and distribution strategy have no impact in the organization.

H_i:    Selling and distribution strategy have impact in the organization.

1.6   SIGNIFICANCE OF THE STUDY

This topic seems to be of relevance to marketers, organizations, students and individuals. The research work would benefit prospective readers and future researcher as who may wish to use this as reference point in understanding selling and distribution strategies of a product.

The research work also is of benefit to organizations because understanding selling and distribution strategy of a product contributes to the entire planning process.

1.7   LIMITATION OF THE STUDY

In carrying out this research it was not easy in terms of finance. Cost of project material, cost of transportation and the necessary information one requires. These research materials were not easy to come by.

1.8   DEFINITION OF THE KEY TERMS

1. Selling: According to Philip Kotler (2002) sees selling in different ways, first it that they constitute industry, the selling send goods and services, communication to the market for exchange of money.
2. Distribution: According to M.C. Carthy E.J (2005) says distribution consist of a very attempt involve in the transfer of goods and services from the producer or manufacturer to the final consumer.
3. Whole sellers: According to Hanza G. (2003) sees wholesaler as a firm or person that sell in small quantity to the retailer or final consumers.
4. Strategies and channel of distribution: According to M.C. Carthy (1995) sees strategic and channel of distribution as the distribution channel in which the goods get to the final consumer, distributors to the consumers.
5. Production: According to Philip Kotler (2005) production is the creation of and satisfaction of wants that can be paid for.
6. Price culture: According to Peterson (2005) sees price culture as the process of fixing the appropriate price of goods and services which consumer can afford. Thus serving as a means of protection of the consumer right.
7. Service: According to Philip Kotler (2004) sees service as identifiable activities that are the main object of a satisfaction to consumers.
8. Consumer market: According to Amechi (2004) sees consumer market as a type of market where the buyers procure goods and services for immediate consumptions without any thought of processing them for further production.

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