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ABSTRACT
This study is a research into an Appraisal of Sales and Distribution
management in act on PLC the Eastern regional headquarters which based
in Enugu was used as a limit it is encouraged by the desire to
explicating understand the sales and distribution management in ELF Oil
they sought to find out whether the sales and distribution systems are
effective and efficiency. In attempting to suggest possible solutions to
the problem. The survey method (using questionnaire approach) serves as
a means of generating primary data to compliment the secondary
materials available through review of related literature. The Z test
method I used in testing the hypothesis.
The study found out from it
tests of hypothesis that the inefficiency in the distribution system has
an effect on the sales level. The study recommends that there should be
a total restructure of the organization structure increase in the
distributions outlets etc.
The researcher also found from the
population of study that the location of EIF Oil PLC is in Enugu
Metropolis and through the sample size and pilot survey the researcher
also finds in the dealers of EIF Oil PLC with the top men’s formular.
Through
the analysis of questionnaire for collection of data it was learnt that
from the network sales assistant that the company as at 1994 retrenched
most of the casual at a time and recruited worker with minimum
qualification.
Finally the company should increase their personal
motivation drive to spur workers to greater heights, which will in turn
be beneficial to the company.
CHAPTER ONE
BACKGROUND TO THE STUDY
Estimating the worth of
sales and distribution management is not a time wasting venture. In
recent times based on the fact that we are living in a dynamic
environment therefore organizations. Firms and companies that must and
want to remain in business must embrace this never ending dynamic change
and this is by delegating persons to personal to their eyes, nose, ear
and mouth as regards their environment. These personnel must see, sniff,
hear and say all that is relevant for the organizations progress or
growth the responsibilities of these personnel is to ensure that
customers or prospects are contacted and convinced to accept the values
offered in exchange for a value desired by the organization. These
personnel that are delegated with these duties are traditionally known
as salespersons and they make up the sales force of the organization
Sales
management is therefore the organizational efforts necessary in
planning sales objectives, specifying selling efforts needed in
realizing the objectives, selecting training, motivating compensating,
spurring appropriate sales force and controlling their operations
towards ensuring the full realization of sales objectives. The
recruiting selecting training motivating, supervising and control
justifies the popular marketing slogan that says ales men are not just
born but made which is a major task of management.
Appraising
distribution in an oil industry it is important to firstly understand
what distribution is all about in an organization in the market context
distribution is seen and regarded as one vital element of the marketing
mix.
According to Philip Kotler (1991:pg 68) is defined as “the set
of marketing tools that a firm uses to pursue its objectives in the
target market” and this consists of the products, the price, the
promotional activities and place (which is distribution in other words).
Distribution
on it’s own is the planning implementing and controlling the physical
flow of materials and final goods from point of origin of use to meet
customer needs at a profit according to Lee and Dobler 1977 page 23.
Distribution has come to be known as the other half of marketing. The
advocates of this view marketing as comprising two parts conventional
marketing (marketing research product development pricing and promotion
and distribution it plays a very important role in the marketing
context, in that there would be no trade without the creation of
distribution channels therefore distribution provides times, place and
ownership utilities by buying the goods and services at the right time
and place and where they are needed by those who need them.
ELF Oil
PLC is one amongst the many Oil and gas industries in Nigeria that
account for 80% of National Total Exporting Earnings and about 70% of
total government revenue. The activities in the Oil Gas Industries is
divided two the upstream segment and the downstream segment.
EIF Oil
International is the parent to EIF Oil Nigeria PLC and is under the
upstream segment, which covers all activities to the exploration,
discovery and extraction of oil and gas and their treatment EIF Oil PLC
is an operator of the NNPC/EIF Joint Venture. EIF Oil Nigeria PLC is
under the down stream segment their comprises all activities following
delivery processing plants and marketing of finished products and other
related ancillary services.
According to the National Association of
Petroleum Industry (NAPI) “Petroleum Product Marketing would seem sealed
except by establishing independent marketing outfits or aspiring to
establish dealership with the marketers”. Indeed as these opportunities
remain viable. ELF OIL international established oil Nigeria which has
ELF Oil Marketing as a subsidiary established. In 1993, with skeletal
station in the Western states of the country.
Since the creation of
EIF stations network there has been a dynamic change with different
consumer needs emerging to meet these needs. ELF Oil Marketing Company
adopted petroleum net work marketing” By increasing their retail
diversification to include marketing which is sales and distribution of
special products white products and lubricants on the acquisition of the
NNPC “Oil prospecting Licence” (OPL) ELF Oil qualified to purchase
refined special products like the process oil different and the
population base oil they are also qualified to market in the domestic
markets product like premium motor spirit (P.M.S otherwise known as
petrol). Dual-purpose kerosene (DPK) Automotive Gas (AGO) other wise
known as Diesel. Low poor fuel oil (LPTO) liquefied petroleum Gas (LPG
or cooking gas) wax asphalt carbon black and polypropylene here in
Nigeria specially selected ELF Lubricant range is being marketed. It
include:
ELF Sport, 25w50 – ELF C40 TRANS ELF E.P TRANS ELF B As an
organization their markets oil and gas products nation wide. ELF Oil PLC
organized their sales job based on geographical territories within the
regions each sales manage is assigned a special region to take care of
sales activities with other sales network assistants helping him in
executing the task.
TERRITORIAL SALES FORCE ORGANISATION OF ELF PLC
OBJECTIVES OF THE STUDY
Emanating
from the problems above the objective of the study is to examine the
factors that affects and influence self on pie in the management of
their sales and distribution systems if we can understand these factors
we can then seek ways to manage them and ultimately be able to increase
the success rate.
This research specifically attempts to ascertain
the effect of the company’s channel distribution on sales volume to
ascertain the effects of uncontrollable variable such as changes in raw
materially price competition and market trend in the firm to ascertain.
If ELF Oil PLC is with oriented or not.
STATEMENT OF THE PROBLEMS
Reviewing sales and
distribution activities of companies in the oil industry. It was deduced
that there is an unequalled scarcity of ELF on PLC Lubricants in most
cities Enugu Metropolis is the worst hit of these cities without
no-single operating ELF filling station in full operation as at the time
of these research.
Since it is believed that no body wants to beck
the wrong horse the researcher therefore wants to establish if consumers
are attracted by the quality of the product, promotions, price or if
their decisions as to the fitness of the products is influenced by the
availability of the product at the time and place they are newed
therefore problem facing the sales and distribution management in ELF
Oil PLC ranges from the organization and directing quality to the
setting of sales quotas and budget of her problems eating deep in the
sales and distribution management of ELF Oil PLC are the planning and
conducting of successful sales meeting, the supervisor and maintained of
sales force the efficiency of discount both trade and quantity and the
last but not the least the channeling of products relative to
distribution systems.
HYPOTHESES
The following hypothesis were used to carryout the study.
1. H0: a drop in sales lies no connection with inefficiency in the distribution systems of the company.
Hi: A drop in sales has correction with the distribution system of the company.
2. Ho: Then channel of distribution lies no effect on the availability of company’s product.
Hi: Their channel of distribution has effect on the availability of the company’s product.
3. Ho: Proper utility of ownership, time and distribution has no effect in goods and services.
Hi: Proper utility of ownership, time and distribution lies effect on the goods and services.
4. Ho: Increasing their retail diversification has no effect on distribution of their special product.
Hi: Increasing their retail diversification has effects on distribution of their special products.
SIGNIFICANCE OF THE STUDY
This study is
significance in the marketing circles. In their to with reveal loopholes
in the areas of sales and distribution management of oil and gas
industry and help in making available positive ways in which
organization in that field of specialization can remedy the preuslem
situation so as to mert customer needs at a point.
The significant of
this study cannot be one emphasized apart from the other purposes the
primary objectives and gain is the fulfillment of the requirement for
the award of Higher National Diploma.
SCOPE/LIMITATION OF STUDY:
The research work would hence been conducted round the country but for the academic admire of my supervisor (Mr. Odo .P.).
In
consideration to him and finance the research is therefore limited to
the Eastern legion of their territorial locations there was also the
problem of respondents who could not give out required information for
fear that the researcher. Is a tax assessment officer the time left to
carry on the study was for show thereby not giving room for effective
courage.
Nevertheless, one is bound to be confronted by some difficulties in the course of investigating a study of this kind.
DEFINITIONS OF TERMS
SPECIAL PRODUCT: These are defined product by NNPC used in the production of Engine Oil it includes process Oil base Oil etc.
WHITE PRODUCT: These include fuel, gas or diesel and kerosene.
NAPI – National association of petroleum Industry.
OPL – Oil prospecting license.
ALTERNATURE HYPOTHESIS the formulation of the population parameters commadicting he null hypothesis.
LEVEL OF SIGNIFICANCE: The probability which determined critical region of a significant test.
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