Abstract

The research on the impact of transportation system in the distribution process of Brewery companies in the Guinness du Cameroon is a modest attempt to study transport and distribution system in the brewery industry taking consolidated breweries industry in Cameroon, Case study Guinness Du Cameroon.

As mentioned in the statement of purpose under chapter one, the main subjection of this study is to identify distribution problem and prospect in the beer market and the bight of both make some useful suggestions in that connection the researcher commenced this work by taking a quick and cursory look at the brief history and background information of the company chosen as the case study. Therefore the researcher highlighted the problems involved in the distribution operation of the company as well as other related marketing activities that have to do with distribution.

Road transport is a predominant means of distribution in Cameroon and accounts for high goods distribution in the country, making it a vital transportation service that links the country to others in the entire Central African sub-region.  Road transport is by far the dominant carrier of freight and passengers in Cameroon land transport system.  It transport over 95% of freight traffic and reaches most communities, including the rural poor and is classified under three categories of trunk, urban and feeder roads. Every business establishment involves production.

The production making aspect of the business involves the use of inputs made up of materials, labor, energy and other resources and the generation of outputs of finished goods/products. These production sites are linked by road transport to supply points; managers and organizations require proper tools for decision making so they can be effective in increasing accuracy and quality of decision. In this study, the impact of transportation process in Cameroon Brewery Limited (CBL) was considered.

Both primary and secondary data from CBL was obtained and modeled as an impact in the transport and distribution sector in Cameroon. From the data analysis it was observed that during the festive season, the company could produce more and supply most of the products within the same region where they are being produced to ensure minimum cost and increase profits.

CHAPTER ONE

GENERAL INTRODUCTION

1.1 Introduction

Looking at the topic “the impact of transportation system in the distribution process of Brewery Companies in CEMAC”, A case study of Guinness Du Cameroon. The distribution system has been the most chaotic and to a large extent responsible or the increasing prices of beer.

Marketing of products has two divergent but related processes the first of those processes deal with the search for and stimulation of the buyers while the second deals with the physical distribution of goods. Experience has shown that due to increased competition for market entrepreneurs and their marketing execution have assigned most of their time not only in search and stimulation of goods with this function in mind.

They are focusing their attention on developing a mix of products, prices, promotion and channels that would keep demand high, they have viewed transport and distribution activity of making goods available to the buyers supportive and subsidiary. An effective customer’s services physical distribution, a public limited liability company like the consolidated Guinness brewery is in a powerful position or state when it receives order for beer but no means of deliver them.

1.2 Background of the study

The research choose the above heading in order to differential between the two division the constitute the vast consolidated breweries in the Guinness.

Namely:

• Beer division (Guinness Smooth lager beer).
• The soft drink division ( Malta Guinness)

The reason for the differentiation is to create the beer division, while the research does not intend to neglect the importance of soft drink industry and its distribution system for fear of inflating the research paper; I feel that the impact on the distribution system in the beer section will also be beneficial to the soft drink division. The consolidated breweries Cameroon is a public limited liability company formed since 1983 under levities groups of company’s management.

The Brewery is located in Douala. In 10 years, the company had witnessed tremendous rapid growths. For instance, turnover has risen from less than 20 million in the first year of operation to 60 million in December 1996, while profit before tax rose from less than 4 million to 8.39 million.

The company’s raw material procurement is 60% locally and 40% foreign and has a normal production capacity of about 420 creates pay day. There is a marketing department with a well-defined organizational structure. The consolidated breweries in Cameroon have different sections which affect their sales.

They include empties cash product allocation and customer’s legislation sections. Qualified sales representatives of the companies are posted on the basis. These sales representatives are in charge of various depots on their areas of operation. The company has many distributors all over the country. The form the core of the company’s distribution network which aimed at ensuring a steady supply of drinks and larger beer to customers, their depots are located in Buea, Limbe, Muyuka, Kumba.

They have fleet vehicle ranging from steer 3 tons vehicles, Mercedes 911 trucks and long trailers. The beer division of consolidate breweries industry force of over 380 employees.

The main objective of the company is to industrialize the rural areas consequently offer employment to the teaming rural population. It is the wish of the company to develop the economy of the state and the nation in general. The company also wishes to render efficient services to its customers and what is more, make profits.

1.3 Problems Statement

The need for efficient beer distribution within the system and the growing need for proper logistic have become very necessary. The consolidated breweries industry is operating in a competitive marketing environment with other breweries in the same industry and as such is confronted with a lot of internal and external problems on economic, social and political factors. These problems which the encountered is found under the broad aspect of distribution method and distribution logistics, they include:

1.The problem of inadequate transportation and storage facilities for effective distribution.

2.The problem of total neglect of marketing research as it absence militates against the standard markets, consumers and tier needs.

3.The problems of cushioning the staff competition in the beer markets due to proliferation and consequent over floating of the produce by other breweries plants in the country.

4.The problem of making their beer available in every part of the country rather than concentrating in those areas where the market had been established.

5.The problem of relegating the marketing concept to the background and adopting the sales concept which is unorthodox (marketing concept aim at customers satisfaction which sales concept is for profit maximization).

6.The problem of organized marketing department which can boast of adequate and right caliber of human resources with suitable experiment and transparent honestly.

7.The problems of the machine breakdown die to lack of spare parts of machines and adversely affected the company.

8.The problem of increasing cost of raw materials in the run affects the production cost and services like distribution.

It is noteworthy to mention here that the research does not intend to claim that these are the only problems existing in the company. But since the aim of this project is not for a mere identification of the problems but to find the possibilities of getting the impact of transport and distribution system of Guinness breweries.

1.4 Research Questions

1.4.1 Main Question

Does the impact of transport and distribution system of Guinness breweries engage indirect sales to final consumers?

1.4.2 Specific Question

1. Looking at the number of depots consolidated for the distribution process of Guinness breweries, are there sufficient or are you advocating for more depots?
2. Do you think there is a need for distribution or sellers in your locality?

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