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An Analysis of Impact of Warehousing in the Efficient Distribution of Toilet Soap (A case study of Orange Drug).


1.0 Introduction

1.1 Background of the Study

         Marketing is not complete until the product produced get to the final consumer. Great wonder said that increasing numbers of people are questioning whether distribution has a useful role in marketing of products. Since consumer can as well go to shop or the manufacture to buy the products without distributing them to where they are living hence, using directs channel currently, modern marketing concept holds the consumer supreme and creating avenues to satisfy them profitably. People used to think that marketing commerce only after production of goods and services. When the physical movement of such products are being performed as well as promotion, advertising, personal selling etc. As soon as a firm acquire some inventories, the need to have some storage facilities in the form of warehouse will arise in addition to have distribution centres from where such inventories would be replaced a warehouse performs  the functions of receiving the goods, sorting, storing displaying, selling and even the shipment of these goods to the customers profitability. Warehousing deals with the accumulation of product from time to time for the purpose of equalizing supplied over a certain period of time. The analysing of the impact of warehousing on the efficient distribution to toilet soap calls for understanding of the consumers needs and wants. One way to produce a product available at every point on time so that consumer will not be searching for ways to satisfying their needs thereby left with the only option of patronizing the competitors. One of the assumptions that underlying production concept is that the major of organization is to keep improving manufacturing and distribution efficiency as well as lowering price to attract customer patronage. Similarly warehouses are established near the markets in order to efficiently facilitate consumers satisfaction through increase customers services.


         After working in his family owned chemist shop Eastern industrial chemist for 13 years, Sir Tony Ezenna went on to establish his own pharmaceutical company. Orange Drugs Limited (ODI) leveraging leadership and managerial skill he acquired from his experience with Eastern industrial chemist. ODI was registers and incorporated on the 20th of July, 1988 with number RC 115913. Its first office was in Ikenegbu Owerri Imo state in 1989 which later moved to Lagos state so as to corporate office was located and internationally ODL’S first corporate office was located at 4B Okupe estate, mende, Maryland, Lagos and in 2001, the company moved to its present Head office at 66/68 Town planning way, Ilupeju, Lagos with branches in different parts of the country.

         Orange Drugs is a limited liability company with authorized fully part share capital of N5 million naira. It is owned in the marketing and distributed of well tested drugs. Manufactured in Indonesia, Italy, India, Germany and the United states of America with the Nigeria consumer in mind. Subsequently, orange Drugs limited joined the beauty care industries through the importation of soaps, creams and other beauty product. By 2006, the company commence the local production of different brands of soaps in Lagos and this was aimed at boosting the Nigeria manufacturing sector and also creating jobs for the populace in order to meet up with the challenges on the global economy, Orange Drug Limited later diversified its line of business by the establishment of Orange Kalbe LTD and Orange West African Limited leading to the formation of Orange Group.

1.2 Statement of the Problem

         For several years, Orange Drugs of its inception operates under dynamism of marketing environment. For so many years now Orange drugs has been the leading company in the Toilet soap industry. However, the entry of other Toilet soap firm has posed a threat to the operations of the Orange Drugs.

         To that effect, it has been alleged that ineffective ware- housing has been associated with the operation of the company.

The problems are as follows:

  1. There is sufficient warehousing provision
  2. Wrong location of warehouses associated with the company affects the sales performance.
  3. Death of competent warehousing managers in the company.
  4. Relegation of marketing research efforts disturbs the effective and efficient distribution of soft drinks however by the end of this investigation, we shall know if it is facing the problem so alleged.

1.3 Purpose of the Study

         With response to the alleged problems facing the Orange Drugs. The researcher embarks to find out the impact of warehousing on the efficient distribution of toilet soap of Orange Drugs.

         Therefore, the specific objectives are stated here as follows

  1. i.             To find out the relationship between warehousing and effective distribution of toilet soap.
  2. ii.           To find out if warehousing has significant impact on the sales performance of the orange Drugs Toilet Soap.
  3. iii.        To discover the cost implications of warehousing on the profit level of Orange Drugs.
  4. iv.         To ascertain which among the channel warehousing facilities.
  5. v.            Finally, to recommend a more effective and efficient way of distributing toilet soap of the orange Drugs.

1.4 Significance of the Study

         This research work on analysis impact of warehousing on the different distribution of toilet soap of Orange Drugs is significance to the company. This because Orange Drugs Company occupies a sizeable portion of entire Toilet soap industry of the economy.

         Moreover, the study with help the company in having a competitive edge over all the other toilet soap firms as the level of competitive performance of other brands are seen in the market. Besides, the research is useful in such a way that it will be of immense benefits to students who may be interested in this area of the study.

         Finally, marketing practitioners equally enjoy some activities in the work since the questionnaires and interview will be made to the field staff work. Therefore, wealth of experience are obtained on the data, gathered analysis and presented.

1.5 Research Question

         For proper investigation of the study the following questions are put forward.

  1. i.             Is there significant of toilet soap of Orange Drugs?
  2. ii.           Does warehousing have any significant impact on the sales performance of the orange Drugs?
  3. iii.        What is the cost implication of warehousing on the profit level of Orange Drugs?
  4. iv.         Which among the channel members is responsible for the provision of warehousing facilities in your company?

1.7 Scope of the Study

         This research work essentially deals with the analysis of impact of warehousing and efficient distribution of toilet soap of Orange Drugs; the researcher focuses only on the Orange Drugs. This means that the researcher did not recognise any other toilet soaps firms.

1.8 Definitions of the Terms

         For easy understanding of terms adopted by the researchers, the following terminologies are hereby defined as follows:

Marketing: this is a social and managerial process by which individuals and group obtained what they need and wants through creating and exchanging value with others.

Market Research: this is concerned with investigation into an entire marketing programme including products, design, pricing distribution, promotion.

Market:  the Actual and potential customers who wants or need a product and who are willing and able to exchange something for it.

Distribution: This deals with the planning implementing and controlling the physical flow of raw materials, final goods, service and related information from point of origin to point of consumption to meet customer requirement at a profit.

Warehousing: This involves receiving, transfer, selection, shipping and storage of goods to the appropriate location in the warehouse.

Warehouse: this is a placed were finished goods are stored until they are sold.

Product: A good service or idea for which customers will exchange money or something else value.

Marketing Channel: A system designed to more goods and services from producers to customers which consist of people and organization supported by various facilities equipment and information resource.

Marketing Intermediaries: People or organizations that assist in the flow of product in a marketing channel.

Retail: Intermediaries that sell to final customers. They purchase goods from wholesalers and in some cases directly from the producers.

Wholesalers: Intermediaries that performs a variety of marketing functions more goods and services through the channels to retailers and organizational customers.

Transportation: the provision and adequate management of the right quality and quantity of vehicles for the evacuation of finished goods from the factory, on plant warehouses to firms various market.