An Appraisal Of Sales And Distribution Management
(Case Study Of EIF Oil Plc)
1
TABLE OF CONTENTS
TITLE PAGE
II
APPROVAL PAGE
III
DEDICATION
IV
ACKNOWLEDGEMENT
V
ABSTRACT
VII
TABLE OF CONTENTS
IX
CHAPTER ONE: INTRODUCTION
BACKGROUND OF THE STUDY
1
STATEMENT OF THE PROBLEM
7
OBJECTIVE OF THE STUDY
HYPOTHESIS
8
SIGNIFICANCE OF THE STUDY
9
SCOPE/LIMITATIONS OF THE STUDY
10
DEFINITIONS OF TERMS
11
CHAPTER TWO
REVIEW OF RELATED LITERATURE
12
REVIEW OF DIRECTLY RELATED LITERATURE 13
2
REVIEW OF INDIRECTLY RELATED LITERATURE21
MARKETING
25
MANAGEMENT
31
SALES MANAGEMENT
33
CHAPTER THREE
RESEARCH METHODOLOGY
35
CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
QUESTIONNAIRE ADMINISTRATION
44
CHAPTER FIVE
SUMMARY OF FINDINGS
75
RECOMMENDATIONS
76
CONCLUSIONS
79
BIBLIOGRAPHY
80
APPENDIX I
83
APPENDIX II
88
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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
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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
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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
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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
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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.
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TERRITORIAL SALES FORCE ORGANISATION OF ELF PLC
SALES DEVELOPMENT MANAGER
Western Region
Eastern Region
Western Region
Sales Manager
Sales Manager
Porthercourt as
Regional Head
Office.
Lagos as
Regional Head
Office.
Network sales
Assistant Eastern
Location
Network sales
Assistant
Western Location
Northern Region
Sales Manager
Kaduna as
Regional Head
Office.
Network sales
Assistant
Location
Other sales persons.
Source ELF OIL PLC in House Organ.
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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.
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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.
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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
Hi:
company’s product.
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
Hi:
goods and services.
Proper utility of ownership, time and distribution lies
effect on the
4.
Ho:
goods and services.
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
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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
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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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