Physical Distribution and Customer Satisfaction in Nigerian Bottling Company Plc, Enugu State

Physical Distribution and Customer Satisfaction in Nigerian Bottling Company Plc, Enugu State.

ABSTRACT

The study investigated physical distribution and customer satisfaction in Nigerian Bottling Company (NBC) Plc in Enugu State. Companies  in  the  Fast  Moving Consumer Goods (fmcgs) sector, especially those in soft drink industry are facing increasingly fierce competition.

As it becomes more difficult for the companies to compete on pure product level, creative ones are intensifying their physical distribution service activities to gain a competitive edge. Previous studies commonly focused on the activities of physical distribution service (PDS) without  effectively  integrating  them into the marketing mix.

This study offers an integrative framework for presenting PDS activities as a means of achieving higher levels of customer service (PD service) and ultimately customer satisfaction using conceptual customer service/satisfaction model. The main objective of the study is to evaluate the relationship between performance of physical distribution activities and PD service and ultimately evaluate the relationship between PD service and customer satisfaction.

Understanding the relationships  among the physical distribution variables and the relative importance of each of these variables to overall customer satisfaction will enhance marketer’s  ability to  develop  strategies that are more effective and improve performance goals. The study adopted the survey research design.

Two hundred (200) persons comprising of commercial  staff,  distributors and major retailers randomly selected from a sampling frame of  four  hundred (400) participated in the study. The instrument used for data collection was structured questionnaire in a 5-point Likert scale. Cronbach alpha  was  used  to determine the reliability of the two sets of questionnaire for the staff and customers  of  the company which gave values of 0.76 and 0.82 for staff and customers respectively.

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INTRODUCTION

The growth of competition, the raising of customers’ expectations and the similarity of basic products that are offered make physical distribution so important in  determining  the final demand for a product. As it becomes more difficult for companies in  fast moving consumer goods (FMCG) sector, especially in soft  drink industry,  to  compete on pure product level, creative ones are looking elsewhere for a competitive edge.

An effective physical distribution system can give a company a significant competitive advantage (Schewe and Hiam 1998: 366). The physical distribution (or logistics) system is responsible for actual movement of products in such a way as to accomplish the goal of providing time and place utility.

Physical distribution according to Armstrong and Kotler (2009: 343) involves planning, implementing and controlling of the physical flow of materials, final goods and related information from points of origin to points of consumption to meet customer requirements at a profit.

Logistics management is the planning, implementation and control of the processes involved in the flow and storage of materials from the point of origin (as raw materials) through the various value added stages to the point of consumption (as finished goods) [The Council of Supply Chain Management Professionals (CSCMP) (2011:2)]

Logistics and physical distribution are used interchangeably. In short, they involve  getting the right product in the right quantity to the right customer in the right place at  the right time in the right condition and at the right cost. These seven (7) rights of customer service are indispensable in any physical distribution system.

This calls for a system approach to physical distribution management (PDM)  –  managing  upstream, and downstream value-added flows of materials, final goods and related information among suppliers, the company, resellers, and final consumers.

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BIBLIOGRAPHY

Alasiri, W. A. and Cole, A. A. (2001), Service Marketing: Principles  and  Practice, Lagos: Ade-Ola Printing press Ltd.
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Anyanwu,  Aham  and  Nwokah,  Gladson  N.  (2008),  Contemporary  Book  on Services Marketing, Owerri: Avan Global Publications.
Armstrong, G. and Kotler, P. (2009), Marketing: An Introduction, 9th Ed. New Jersey, Pearson Education Inc.

StudentsandScholarship Team.