• 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---