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Analysis Of The Problems Of Petroleum Products Distribution In Nigeria
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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Production
is not complete until the goods get to consumers for whom they are
meant. A typical firm will discover that the consumers of its product
are scattered abroad. The firms decisions to distribute its products
directly through own sales outlets or indirectly through marketing
intermediaries ie (Wholesalers or retailers) alone in not enough to the
goods to consumers the firms has to ensure that the products are
actually available at or made available to the distribution outlets.
Adequate
care has to be taken of the products to minimize losses or damages and
commensurate customer services have to be given in order to ensure
customer satisfaction and increased patronage. In other words, there is
the need for proper management of the flow of products from
manufacturers to consumers in order to achieve consumer satisfaction and
the commercial goods of the firm. The attainment of these goals falls
into the realm of physical distribution aspect of marketing. The
increase snphssis given to the concept of physical distribution in
commercial firms and industries since its inception in 1950s is a
confirmation of the its immense contribution to the successful
achievement of marketing goals physical distribution is the term used to
describe all the activities, that have to do with planning and
implementing the making or production of goods from the manufactures or
sellers to buyers. These activities include the processing of sales
order, materials handling inventory management demand forecasting,
storage of materials, transportation and customer services among others.
The distribution and marketing of petroleum products.
This
started in Nigeria by the year 1907 with the establishment of a link in
sumo lower, kerosene, by seconyvacum oil company (now mobile) but today,
it has grown to include other multi-national companies. Referred to as
the big seven, they includes African petroleum, Total, Agip, National
Oil and marketing company, Texaco marketing and distribution of
petroleum was in the hand of the private section. Inadequately of the
private sector increase of the mid 705 prompting government intervention
which led to the construction of extensive pipeline network and strong
depots.
The Nigerian National Petroleum Corporation (NNPC) was set up to prospect.
1.2 STATEMENT OF PROBLEM
Distribution
is a very important instrument in every marketing organization,
industry and retail outlet effectively planned and implemented
distribution policies are basically a prerequisite for proper
integration of the activities that will eventually used to the
activities eventual achievement of the organizational goal, but more
often than not, problems tend to exist where policies, are not defined
or where they are not existing.
In most cases, prices of the products
of petroleum being distributed are highly rated or such products become
very scared as a result of the involvement of distribution channels.
Many times, this had led the consideration of whether channel members
are necessary in distribution and whether effective monitoring of the
distribution channel will prevent not only high price and scarcity of
the product in question. It will prevent the marketing activities
More
so, in a situation where economic and technological advancement have
become a thing to reckon with, the competition in the market place,
there is need to improve distribution effectiveness through the
wholesalers, retailers and other types of intermediaries.
Availability
of product at right time and place, which is t effort of middlemen as
at ready mentions. But the dynamic nature of the environment and other
bureaucratic bottlenecked can makes this success in distribution not to
be realistic. This posses a problem in the distribution of petroleum
products. Due tot eh unrealistic incorporation of marketing activities
in making the petroleum products available in the market place or rather
improve for more effective and efficient distribute.
This study
there tried to highlight and to evaluate the problem of physical
distribution if the distribution of petrol in Enugu State.
1.3 OBJECTIVES OF THE STUDY
This
study “problems of petroleum products distribution in Nigeria†is
basically aimed at finding the cause of incessant shortage of petrol in
Enugu. To find out whether the storage facilitates, provided at the
depot and by the oil marketing companies are not enough to ensure steady
supply.
The study also aims at reviewing the distributive network of
the oil marketing companies. Since a production process is said to be
incomplete until goods and services are made available to the ultimate
consumer.
The study also intends to assess the ability of the oil
marketing companies to meet up with emergencies and unpleasant situation
like strike action erratic increases in demand etc.
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ABSRACT - [ Total Page(s): 1 ]This research project is a very crucial study for the Nigeria government owned companies. The study was motivated by the necessity to solve this problems of perceived necessity to solve this problems of perceived ineffective management in government owned companies in Nigeria. To solve the research problems, both primary and secondary data were collected the instruments used in collecting the data were Questionnaires and oral interviews. The respondent comprised the personnel, distributors and c ... Continue reading---