ABSTRACT.
This research set out to study the management of channel system in Petroleum products marketing industry in Enugu state of Nigeria and specifically inquired into the major causes, of incessant petroleum products scarcity always witnessed in the state. The study also looked into various benefits that accrue form using the channel system as a meaning of marketing petroleum products. Franchising as a strategy for managing petroleum products channel was also treated. The researcher used open close ended questions to click responses form the dealers and the companies on various issues of the subject. Also, in order to active the object of this study, the researchers reviewed related literature on Petroleum products marketing, marketing channels, channel of distribution in Petroleum product marketing and also carried out a study on some of the shareholders in the Petroleum marketing industry.
However, it was found that the incessant Petroleum scarcity always witnessed in the state is as a result of vandalization of oil pipelines along Port Harcourt – Aba road, it was also found that two channels exit for the marketing companies and independent marketers, and three channels of the petroleum packaged produced, those that are the above mentioned channels and motor oil marketing comprise otherwise known as the big eight.
From the findings, it was commended that government should set up a monitoring team to monitor our oil pipeline. And also a public alignment campaign should be flagged –off immediately, using a slogan like this “DON’T TOUCH THE PIPELINE, IT IS THE HEN THAT LAYS GOLDEN EGGS”.
TABLE OF CONTENTS
CHAPTER ONE
1.0 Introduction
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the study
1.4 Formulation of Hypotheses
1.5 Significance of the study
1.6 Scope of the study
1.7 Limitation of the study
1.8 Definition of terms
CHAPTER TWO
2.0 Literature |Review
2.1 Petroleum Product Marketing: An Overview
2.2 Definitions of channels system
2.3 Management of channels
2.4 Conflict in channels management
2.5 Co-operation by channels participants
2.6 Channels of distribution in petroleum product marketing.
2.7 Factors affecting petroleum products channel selection
2.8 Managing marketing channels of Petroleum products
CHAPTER THREE
3.0 Design of the study
3.1 Source of data
3.2 Population of the study
3.3 Sampling Technique
3.4 Research Instruments used
3.5 Method of Data Treatment and analysis
3.6 Method of distributing questionnaire.
CHAPTER FOUR
4.0 Presentation, Analysis and Interpretation of Data
4.1 Presentation of Data
4.2 Testing of Hypothesis.
CHAPTER FIVE
5.0 Summary of findings, Recommendation and Conclusion
5.1 Summary of Findings
5.2 Recommendations
5.3 Conclusion.
5.4 Bibliography.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
This study evils the channel relationship existing between the Petroleum products marketing companies and the Petroleum products marketing Dealers.
This study would provide a general appraisal of the channel system in petroleum product marketing industry in Enugu State.
This topic was chosen because the researcher fact that Petroleum marketing has become very important in recent years especially in post civil war Nigeria of 1970’s when the era of oil boom set in. The oil boom made many people wealthy and this led to unprecedented increase in the transport sector, with many people owing many cars. The demand for Petroleum products therefore increased tremendously, leading to may Nigeria owing petrol filling stations and the established major oil marketing Companies increasing the number of their retail outlets.
The increase in number and sophistication of ventricle in Nigeria also meant that more demand in efficiency by the retail outlet management was needed. There is therefore need to know if the dealers and Companies had fared well in this regard. As there was a dearth of research in this line, the research was therefore an exploratory one. The distribution channel in the petroleum marketing industry depend to a large extent on inter-dependent agencies charge with the task of moving the petroleum product tot he consumers and performing function of adding activities of time, place and possession.
This study is essentially a study in franchiser/franchise relationship. The franchising system was introduced in the Nigerian economy by the automobile and petroleum industry early in nineteen century. Producing firms contracted with independent business men who agreed to sell their brand exclusively.
However, from the franchisee’s point of view, the franchise package represent a compromise between complete autonomy and reduction in this risk of failure. The individual gives up certain element of operational independence in return for special forms of security, assistance and information from the franchise.
It is this from of relationship that exist among the major oil marketers, independent marketers and dealers in Nigerian and Enugu State in particular.
1.2 STATEMENT OF THE PROBLEM
This research topic “Managing the channel system in petroleum products marketing in Enugu state” is a pertinent one because of the incessant and constant storage of petroleum products in Nigerian and Enugu state in particular. Rarely does any Month pass without one witnessing petroleum products scarcity in Enugu State.
This research therefore, to examine the source (s) of such scarcity; is form the Nigeria National Petroleum Corporation (NNPC) depot at Emene, whether it is from the petroleum products major marketers or from the retail outlets.
Also the research considers the relationship that exists among the major petroleum markets, independent marketers and Company dealer in the state.
Meanwhile, Considering the economic and social implication of such scarcity, this research is considered very imperative.
1.3 OBJECTIVE OF THE STUDY
The objectives of this research cannot be over estimated, these include:
The study was embarked to find out how petroleum products channels are managed in Enugu State, considering the people responsible for the management and means adopted to managed the channels.
The researcher embarked on the study to find how effective the petroleum products channels are and at the same time considering what can be done to make them more effective.
One of the Cardinal objectives of this work was to find out how channel members are motivated by the channel captains.
Also, considered in the work is the cause and sources of incessant petroleum scarcity always witness ion the state.
Summarily, one f the objectives of this study was to find out efforts made by the petroleum products marketers towards the availability of the product at the right place, time quality and quantity.
1.4 SIGNIFICANCE OF THE STUDY
This study “Managing the channel system in petroleum products marketing in Enugu State” is of immense important, as the researcher have the following people in mind:- marketers, both major and independent marketers, customers, nations economy and the researcher themselves.
The knowledge of reactions of petroleum dealers would be of immense benefit to there major marketers in managing their channel members.
This study is immense important to independent marketers as the study cut across petroleum products marketing legal environments. (i.e legal enactment guiding petroleum product marketing in Nigeria)
Some of the suggestions made in this work would help government in checking the activities of vandals in the country.
This study would help consumers appreciate the efforts made by the petroleum marketer towards their satisfaction.
This work would always be source of information to readers both in marketing and other management course, because the researchers gave an indepth into how channel systems are managed in Enugu state.
If the suggestions recorded in this work are carefully adhered to, it would in no small measure help our economy forward.
However, in the course of writing this work, the researcher have grasp a lot of knowledge for which this work speakers for itself.
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