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The fundamental goal of this study, which examines the distribution tactics of ice cream companies, is to uncover the problems that the companies have when selling their products. The Chi-Square distribution technique was employed as a statistical tool to analyse field data.

During the course of this inquiry, the researcher discovered that the high product prices were due to a poor distribution network. As a result, the corporation should create efficient distribution channels in order to lower product .

Chapter one

1.0 Introduction

This project investigates the distribution tactics of ice cream manufacturers with reference to fan milk. Nig Plc, Owerri.Distribution, in its broadest sense, refers to the management of the flow of products and materials from their origins to their point of use.

The distribution system has been a key aspect on which organisations rely to increase their wealth; it is stated to be concerned with the channelling of commodities and materials from the point of production to the point of consumption.

On this basis, it becomes necessary or crucial for businesses or organisations to develop plans for how their goods or products should be delivered, as well as regulate distribution costs, in order to accomplish a positive organisational purpose and objectives.

Also, there should be a predefined decision by the firms on the choice or manner of its distribution operation, i.e., a specific system of distribution must be established.

1.1 Historical Background of the Study

Fan Milk Nig Plc Owerri was established in Nigeria in 1963 as a subsidiary of Holland Fan Milk Ltd. Holland Fan Milk (Nig) Plc is an indigenous-owned firm, which means Nigeria owns a part and has voting rights.With the indigenization edict of 1972,

Nigerians today hold over 51% of the business's overall management positions, accounting for a minor fraction of -based expatriate managers in the organisation.The company has its headquarters in Ibadan and an office in Lagos.

The company has two plants, one in Ibadan, which was created in 1963, and another in Kano, which was established in 1982. It also has depots throughout the states of the Federation. The depot in Imo State is located on Rotibi Street in Owerri. It functions through divisions, which can be classified into

Manufacturing division
Technical Division
Trading Division
Service division
Currently, the depot has several distributors (agents) throughout the state who employ buses, motorcycles, and bicycles for distribution.

1.2 Statement of the Problems

The state's inadequate transportation system and frequent power outages impede the distribution of ice cream products, which are more effectively sold when frozen.

A lack of storage facilities is another issue. This happens when there is a low demand for the product, which takes a long time to distribute, and if there aren't enough facilities to store the ice creams, it might lead to damage.

Lack of staff training and retraining are major issues affecting the ice cream delivery network throughout the state.


Specifically, the project effort aims to achieve the following:

To assess the overall distribution methods of Fan Milk Nig Plc.

To discover flaws in the current distribution network.

To identify the common challenges that fan milk faces when distributing its products.

To determine how successful management of its distribution network affects sales volume.

To issue a regulation governing the intensity of distribution of its product in various sections of the state.

Finally, I offer the appropriate distribution that Fan Milk should employ to achieve expanded market

1.4 Significance of the Study

This study will be significant for the following groups.

Participants include shareholders, management, investors, students, and more researchers.

The study convinced shareholders to keep their shares and assured them of dividend payments by demonstrating numerous methods of distributing the company's products, consequently increasing profitability.

The study assisted management in making decisions that would help them reach their organisational goals and objectives.The effort has contributed to the investors' understanding of the company's activities and operations, allowing them to participate in the company.

To the student, the task was undertaken as part of a partial requirement for the department of marketing for further researchers, and this study must be employed for the frontiers of knowledge.

To identify solutions to the challenges outlined above, research questions are developed so that the researcher may recommend a sound distribution system or network to the company. They are

Does the company have a reliable ice cream distribution network in Owerri?

Is the company having any problems distributing their product?

What are the flaws in its existing distribution network or strategies?

How important is a good distribution system in terms of increasing sales volume?

Does your organisation contribute to the creation of a good transportation system in order to improve its distribution system?


To provide a trustworthy result at the end of this research study, the hypotheses that will be evaluated to show the validity of the research study are listed below:

Ho: Effective distribution network management has no substantial impact on corporate sales volume.Hello: Effective management of the distribution network has a significant position impact on sales volume.

Ho: The high price of ice cream was due to a bad distribution network.Ho: The high ice cream pricing was not due to a bad distribution network.

The purpose of the study is to evaluate ice cream companies' distribution techniques. The study carefully studied the distribution network and was confined to Fan Milk Nig Plc in the Owerri metropolis.1.8 Definition of Terms

Distribution is simply the process of extending or providing something to a large number of people in various locations.

Strategy refers to the process of creating or carrying out a plan with the goal of achieving a specific outcome.

A company is a business organisation that generates revenue via the production or sale of goods or services.

Depot: This is just a location where a huge volume of items or equipment are stored.

Data is a raw fact that must be processed in order to yield information.

Distributor: a person or company that provides items to shops or stores.

Retailing can be defined as business activities that involve the sale of goods and services to end users for personal, home, or non-commercial purposes.

Retailer: can be defined as a marketing intermediary who facilitates the transfer of product titles to the final consumer.

Marketing is a social process in which services are anticipated, expanded, and satisfied through the conception, promotion, exchange, and physical distribution of goods and services.

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