Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
1.0 INTRODUCTION
In Nigeria, filing stations are the most visible link in the petroleum product
distribution chain. There are also a prime point of contact with customers who has
earned their trust and loyalty because of efficient service delivery in station services.
Jekwu’s filling station is one of the stations that pursue a growth strategy based on
quality service and convenience with their marketing team expanding network through
targeted growth to capitalized on strong breads and standardized facility which sells
fuel and engine lubricants for motors vehicles.
A filling station that sells only electric energy is known as charging station while a
filing station can also be known as fuelling station.
Distribution according to Ezumah and Nto (2011) is concerned with the performance
of marketing activities that would enable a firm’s product to get the customers for
whom such are made. It is directly related to the functions, activities of individuals or
groups that make for the smooth movement of goods and services from production
point to consumer’s door step. The world’s first purpose build gas station.
Jekwu’s filling stations is one of the oil and gas companies in Afikpo North Local
Government gas of Ebonyi State, Jekwu’s oil company is located at No 26 Eke
Market road; Macgregor (Egbeberi Road). It was established in the 15th day of June
2004. Its registration number is said to be confidential and not disclosed to the
researcher.
It is owned and managed by twin brothers, Chikodi Ajah and Emeka Ajah. It has the
following management personnel.
Director
1
Manager
Auditor and
Sales personnel
From the past records, Jekwu’s filling station have no strong brands of oil and gas
deals and no standard facilities that enhance quality service deliver. A filling station
supposed to have a dense and board diversified designed for customers who would
want to have access to a wide range of services. The level of electricity consumption
in the filing station is very poor because Jekwu’s filling station has no installed real
time tracking devices to monitor power house, even the issue of customer to attend to.
Again there are poor performance of the employees of Jekwu’s filling station
which can be traced from poor inter-personnel relationship between buyers and
employees at Jekwu’s filling station. Thus, in view of the above problems, there is
need to analyse the operations and selling activities of Jekwu’s filling station, Afikpo
Ebonyi State.
The broad objectives of their research is to examine the role filling station plays in the
petroleum product distribution chain with respect to Jekwu’s filling station, Afikpo
Ebonyi State. Specifically, the objectives of the study include;
2
1.5 RESEARCH QUESTIONS
The scope of this work focuses on the role of filling stations in distribution of
petroleum products with reference to Jekwu’s oil company Afikpo, Ebonyi State.
However, in view of carrying out this research, there was various constraints
encountered such as;
Time allocation to the work is very small. The researcher tried to meet up with
the time.
Insufficient money was another constraints that limited the work.
Time: due to the relatively short time allowed for this research work and based
on the tight academic programme in the course of study, the researcher work
find it difficult to realize the research objectives. In other words, time
allocation factor create a barriers to researcher due to duration of time mapped
out for this research, the researcher could not source for more materials that
will supply more information.
Money: is also a constraints encountered in this research work. The researcher
being a student undergone in valuable money in adequacies and every
researcher and every research need highly money. In another way, money is
3
the life wire of any researcher work and it being limited militated against the
realization of the research objective.
Through the findings made in the course of the study, it will become pertinent to give
considerable attention to the effective and efficient means of satisfying customer’s
wants at Jekwu’s filling station by improving on their mode of operation.
This work will assist future researchers to develop national decision making with
regard to develop station in Nigeria. It is worth noticing that the study would prove
useful to them who are interested in the opening and management of filling station
services.
This study seeks to assist the relevant developed authorities in carrying out the
necessary actions on already existing filling station service that have violated
standards and the poorly sited ones and also ease and implement a good filling station
service standard to those yet to be constructed. It will thus serve as guide for
individuals, in the urban planning, downstream petroleum industry and other related
areas for further research and decision making.
4
Paraffin oil: this is a strong smelling liquid which is used as a fuel in heaters,
lamps and engines (Collins Dictionary).
Pipelines: this is a line of pipe with pumps, valve and control devices for
conveying liquids, gases or finely divided solids. (Miriam welster).
Distribution: this is a process of ensuring availability at the reach of your
consumer (Business Dictionary).
Crude oil: organic (fossil), deposit/concentration found many kilometres deep
in the soil. (Collins Dictionary)
Independent marketers: these are sole proprietor encouraged by the federal
government under the independent marketing scheme to take part in the
distribution of petroleum in Nigeria. (Business Dictionary).
5
CHAPTER TWO
With respect to oil and gas distribution, Manzand (2005) defined petroleum
product distribution and marketing a activities concerned with transportation of
refined fuels from the point of refinery to customers and the sales of the fuels either in
bulk or in small quantities in a filling station. In consistence with this definition,
Furchgott-Roth (2013) argued that crude oil and refined products will have to travel to
where it is produced, it will be used all over the country. This is also the case with oil
and gas in Nigeria. For example the crude oil that is produced in Niger Delta region of
Nigeria will need to move refineries in port Harcourt, Warri and London where it will
be processed into petroleum products, petroleum will in turn have to transported to all
the 22 storage depots in different region of the country. Petroleum products marketing
company (PPMC) is a government agencies charges with the responsibility of
wholesale supply, distribution and marketing of petroleum in the country.
6
Marketing concepts and strategy, Hughes (1978) define marketing as these
activities that relate an organization successfully with its environment. The main
activities are the identification of unfulfilled needs pricing the distribution of goods to
the market place and services to meet needs.
Rose Berge (1994) said petroleum products are used in various ways for
examples the duck purpose kerosene (DPK) used for jet planes as well as domestic
cooking and lighting, also the automobile industries. The above shows that the
satisfaction are derived from using these petroleum product ethanoate efficiency
envisaged from the respective uses they are put into.
7
2.2 TYPES OF PETROLEUM DISTRIBUTION
Chris Obi and Philip (2011) stated that there types of petrol marketers or distributors
namely;
The challenges of low refining output of the refineries in Nigeria, petroleum refineries
are large factories that convert a new material, crude oil in to commercially valued
product cleared on what the advantage are as that will help make proper decision. This
include;
8
i. Dependent marketer build business off of a major marketer under the
umbrella of a major marketer established brands like MRS, MOBIL O, and
O, TOTAL and so on.
ii. They will be riding on the back the major marketer and inherit their
customer’s based on your location.
iii. They would not assign agents and representative to be at the depot on assign
agents and representative to be at the depot on your company’s behalf.
iv. They wouldn’t have to pay to your petroleum your major marketers.
This also include the disadvantage of dependent marketer will miss out
from the opportunity of building his own brand and pushing his name
forward.
The operation will 100% be dependent on the major marketer’s term
and policies and conditions.
They will also miss out from gaining higher profiting margin per litre
and subsidy thing will elide him.
i. They run their business under their own chosen name and build their brand
and logistics.
ii. Independent marketer list product directly from NNPC depots at lower price
s and earn certain amount at every litre of petrol products you list.
iii. Independent marketer is the free of another company’s policies standard, he
deals directly from authorities.
iv. They do their own business under their own policies and terms.
9
i. Minimum quality of petrol product one can buy from NNPC depot is one
tanker of 30,000 litres that cost within 3 million and own tanker for
transporting products.
ii. They have to do some forms of advertising.
iii. Payment for petroleum products require bank draft issued in the name of
NNPC.
iv. Independent marketers pay 50,000 for insurance and association fees to
independent petroleum marketing association of Nigeria (IPMAN).
v. Movement of petroleum to your filling station involve the some risks.
10
the process of refining, storage, distribution and marketing petroleum
products cannot be over emphasised.
According to Adenikinju and Falobi (2006), pms and other petroleum
products are distributed through pipeline from nation’s refineries/import
receiving jetties the storage depots located in different locations covers an
estimated distance of 5.00km (Adenikinju and Falobi; 2006; Onuorah 2012).
Eke and Enibe (2007) identified locations of these deposts as Aba, Enugu,
Makurdi of Yola, Benin, Ore, Mosimi, statelite town in Lagos, Ibadan,
Illorin, Suleja, Minna, Jos, Gombe, Maiduguri, Kano and Gusau. Two type
of pipeline are common in the distribution of oil and oil product in Nigeria.
They are dedicated pipeline for crude oil distribution and multi-product
pipeline for refined products.
iii. The problems affecting pipeline vandalism and rupture in Nigeria.
iv. The problems affecting premium motor spirit, (PMS) known as petrol.
v. Transportation of petroleum products by roads is most common around the
world (Bersani, Minciardi & Sacile 2010; Tordo, 2013). This is especially
when there is inadequate pipeline network in a country or state (Millican,
11
2013). For example, insufficient pipeline infrastructure in North Dakota, it
has made such as rail or road inevitable in the state (Millican). In Nigeria
inadequate pipeline infrastructure and frequent vandalism of the emphasis
from distribution through pipeline to distribution through road otherwise
known as bridging (Adenikinju and Falobi, 2006; Apoghomeh and &
Badejo; 2006, Akpoghomeh & Odih 2000, Ehukwe & Ngwoke, 2013). For
example Akpoghomeh and Badejo affirmed that the rising spate of oil
pipeline sabotage has led to the reliance on bridging accounting for
between 78 and 82 percent of domestic consumption in terms of volume in
contrast to less than 4% used in the U.S. (Reese, 2007). Ehikwe and
Ngwoke lamented that the incessant vandalism of pipelines in the South-
east has crippled the two depots in Aba and Enugu, forcing the market to
rely on petrol tankers to move petroleum product from far and wide.
12
CHAPTER THREE
The researcher made use of descriptive research design for the purpose of
gaining a vivid insight with the nature of the various aspect of Jekwu’s Oil Company
Limited Afikpo, Ebonyi State. The descriptive method was used to achieve some of
the focused on the role filling station. In distribution of petroleum production Nigeria
at Jekwu’s oil company limited Afikpo, Ebonyi State.
The population of the study was gathered from workers of Jekwu’s oil
company limited Afikpo, Ebonyi State. Data was collected from a total 20 workers.
Below is the distribution of the study population.
STAFFS NO OF STAFFS
Coordinator 1
Manager 1
Supervisor 1
Secretary 1
Accountant 1
Sales Personnel 6
Drivers 2
Conductor 1
Engineer 2
Cleaners 2
Security 2
13
3.3 DETERMINATION OF SAMPLE SIZE
Sample size is the acts of choosing the number of observation from the population
through a statistic means. Therefore to get a sample size of Jekwu’s Oil Company
Afikpo, Ebonyi State, the researcher used census method (all methods were used).
Hence the sample sizes 20 were used. This is because of the smallness of the sample.
Therefore the level of sample 20, customers sample using Topman’s formula. Out of
50 customers randomly sample, 20 customers may agree that they consumed Jekwu’s
petroleum product while 30 did not.
Formula
𝑍2𝑃𝑄
n=
𝑒2
20
P=
50
= 20.4
30
Q= = 0.6
50
(1.96)2∗0.4∗0.6
n= = 88
(0.05)2
14
Opinion of the workers at Jekwu’ Oil company limited as well as after experts
in the field oil company was being to find out the role in which marketing plays in
Nigeria oil companies
Data were gathered from both primary and secondary sources and they were
both helpful in the course of study.
Primary source provides the researcher with data from questionnaires and
interviews as the data were gathered at first hand basis. The researcher posed some
related questions using the questionnaire and also interview to number of respondents
for which information was gotten for this study.
The data collected in this study was analysed statistically by the use of
frequency table percentage and chi-square method was used to test hypothesis.
𝑋 100
*
𝑛 1
Where
X= number of respondents
15
Chi-square is adopted by the symbol x, which is composing as follows
(0𝑓−𝑒𝑓)2
X2 = ∑
𝑒𝑓
Where
Where
r= number
C= number of column
I= constant
Decision rule
16
APPENDIX A
QUESTIONNAIRE
Department of marketing,
Akanuibiam Federal Polytechnic,
Unwana Afikpo,
P.M.B 1007,
Ebonyi State.
10TH JUNE, 2019
Dear Respondent,
Yours faithfully
2017/HND/21727/MKT
17
APPENDIX B
Questionnaire for customers for Jekwu’s filling station, Pease kindly tick (√) in the
boxes below and comment where necessary.
3. Age Group
18-30
31-45
40 and above
5. What leads you to repeat purchase of petroleum product in Jekwu’s oil filling
station?
Accuracy of litre
Mode of attendance
Brand name
Quality and Quantity
6. What do you think that can help build brand image of Jekwu’s oil filling station?
Communication strategies
Free traits and discount
Quality
Good value and service 18
7. What problems do you encounter from Jekwu’s filling station?
Poor service
Unreliable personnel
Poor road Network
8. What are the ways Jekwu’s filling station enhance customer’s satisfaction?
Competent operation
Provision operation
Provision of infrastructure
19
Chapter four
20
CHAPTER FIVE
5.1 SUMMARY
Findings of this research work where brought to been from responses gotten from
questionnaire distributed and retrieved. These findings were not only responses
elicited from questionnaire respondents, but also comprised of interviews and personal
observations of the researcher. Foremost, among other findings is the cost of
truck/tankers the terrain of the state also hinder successful distribution of petroleum
products in Jekwu’s filling station. Storage facilities inadequacy is another underlying
finding in Jekwu’s filling station which makes them not to have storage facilities with
capacities that could service he need of customer for considerable length of time. Thus
they run-out of stocks intermittently, causing untold hardship to customers and general
public due to Jekwu’s oil limited are not conveniently to the customers reach and few
operation are not adequate to meet the increasing need of the growing populace. Since
location is not the pre-requisite to become a dealer, rights of operation are granted to
dealer irrespective of where and how the station is located.
5.2 CONCLUSION
The researcher research result among other things indicates that the existing channels
of distribution needs to effectively managed and controlled to ensured proper
distribution to the reach consumers.
5.3 RECOMMENDATIONS
Based on the findings of this research and conclusion drawn from it, the following
recommendations are made to improve the problems of distributions of petroleum
products in Nigeria.
22