1.

1 Back ground of the study

Physical distribution involves planning, implementing and controlling the physical flow of goods
services and related information from points of origin to points of consumption to meet customer
requirements at a profit in short, it involves getting the right product to the right customer in the
right place at the right time. (Kotler and Armstrong, 2008: 352)

The use of distribution in conveying products to the consumer are on behalf of manufacturers in
dealing with their customers. These distribution are also known as the middlemen or wholesales
who act as a link between the manufacturers and consumers. One of the problems facing most
firms is the physical distribution of product.

Physical distribution is the set of activities concerned with efficient movement of finished goods
from the end of the production operation to the consumer. Physical distribution takes place
within numerous wholesaling and retailing distribution channels, and includes such important
decision areas as customer service, inventory control, materials handling, protective packaging,
order processing, transportation, warehouse site selection, and warehousing. Physical distribution
is part of a larger process called "distribution," which includes wholesale and retail marketing, as
well the physical movement of product. (www.enotes.com)
1.2 Back ground of the study

1.3 Statement of the problem

Distribution is one of the marketing mix elements that require special consideration. Additionally
the extent to which any companies distribute its product and service determine the success failure
of the company. This implies that without effective distribution it is not only difficult but also
impossible to exist in market with its competitiveness and staying for long period of time
effectiveness.

Because of the competitive nature of every industry, many companies who are unable to cope
with the competition have collapsed and failed.

Distribution is an important aspect of marketing. Many industries lose their share as a result of
poor distribution management most consumers blame them for high priel because the distribution
add cost to the product, buy, clean that there would be no effectiveness and efficiency in
distribution of product without the introduction of distributions.

According to Pillia and Baugathi (2005: 24) distribution (place) is the delivery of product at the
right time and place. The distribution mix is also a combination of decision related to marketing
channel, order processing, storage facility, inventory control, location, transportation,
warehousing.

Physical distribution activity as the most persuasive of all human activities that involve
movement and storage of goods for the purpose of achieving the desired objective of making the
right type of product available at the right time and place Khanna (2002: 16).

1.4 Basic Research Questions

1.5 Objective of the Research

The general objective of the study is to assess the physical distribution practice of

1.5.2 Specific Objective

 To classify the current physical distribution practices of

1.6 Significance of the study

1.7 Scope of the study

This study focused on an assessment of physical distribution practice in case of

To make the study more manageable, to get current information, to make it reliable, and to
update the researches that conducted by this title the study will be limited to geographically to
cover only Addis Ababa not wider geographical area it will not be conceder out of Addis Ababa
distribution system.

1.8 Limitation of the study

During the preparation of this study, the student researcher face some constraints by various
restrictions among the limitations, some major once includes lack of finance and adequate time;
some customers are reluctant to fill the questionnaire and also the staffs of the organization hide
confidential information that could assist this study.

1.9 Research Design and Methodology

1.9.1 Research Design

The study will be conducted descriptive research method since it is believed that this method was
being finding that can meet the objectives of the study.
1.9.2 Data Collection

The study was used both primary and secondary data. Primary data were collected using
questioner and interview. Primary data were collected through distribution of questionnaire to
the whole seller and retailer and interview as conducted to collect information from company
marketing manager. While the secondary data was collected from relevant books, records,
journals and operational manual for the appropriate and successful completion of the study.

1.9.3 Population, Sample Size and Sample Techniques

1.9.4 Data analysis Method

Both quantitative and qualitative data analysis method were used. The quantitative method of
analysis technique is used to summarize the finding collected through questioner by percentages
compute and different tables. Qualitative technique is used to analyze interview data.

1.10 Organization of the study

The study is organized in five chapters. The first chapter includes background of the study,
Background of The Organization under Investigation, statement of the problems, research
questions, Objectives of the study, significance of the study, scope of the study, limitation of the
study, definition of terms and organization of the study. In the second chapter literature review is
viewed. The third chapter deals with research design and methodology. The forth chapter deals
with Analysis of Qualitative &Quantitative data. The last chapter deals with summary,
conclusion &recommendation.