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APPRAISAL OF SALES AND DISTRIBUTION MANAGEMENT IN EIF OIL PLC

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 distribution 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

INTRODUCTION

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) 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.

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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