ABSTRACT
It is common knowledge to see a lot of organisational resources committed into product ideas that have not undergone proper research, especially market based research. As a result, it is either that the product fails out rightly or gains marginal success. No wonder we have so many of such product wasting in the market places begging for demand. When a product idea carries a weight of benefits to give to the market even the market will be anxious waiting for it to be launched. Besides proper research into developing a quality product, there is also the need for a wide range of management activities of the product from its conception to maturity or until it is being disposed such management activities include providing appropriate strategies for pricing, promotion, distribution as well as on-going support to customers who have purchased the new product pertinent to the above the study aimed at assessing new product development and management in Nigeria. However the following objectives were formulated: To determine the relationship between marketing research and new product development; To determine how new product development influences customer satisfaction and retention; To determine the impact of technology, skilled manpower on new product development; To identify critical factors, both marketing and otherwise for new product success or failure and To identify the impact of new product development on growth of an organisation. The study had a population of 44. The descriptive survey design was adopted for the study while chi-square was used to test the hypotheses. The findings showed that there is relationship between marketing research and new product development. Also new product development influence customer satisfaction and retention. Furthermore technology, skill manpower have impact on new product development and finally there is relationship between new product development and growth. The study recommended that firms should periodically evaluate their product so that they will be able to be ahead of their competitors and make profit.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
New product development process allows firms to deal with progressively intensive competition when facing challenges from rapidly changing market condition. Companies try to gain sustainable competitive advantages with continues innovation. These effort are critical for the companies because introducing a new product to the market is expensive and challenging due to acquiring new knowledge and technologies and implementing new processes.
New Product development is a business and engineering term, which describes the complete process of bringing a new product to the market. In other words, Product development is the process of designing, creating, and marketing an idea or product. The product can either be one that is new to the marketplace or one that is new to your particular company, or an existing product that has been improved. In many instances, a product will be labeled new and improved when substantial changes have been made.
According to Kotler(2006:633), a product is anything that can be offered to a market to satisfy a want or need. However, product is much more than just a physical object. It is the complete bundle of benefits or satisfactions that buyers perceive, they will obtain if they purchase the product. It is the sum of all the physical, psychological, symbolic, and service attributes.
In the words of Stanton, (2001:121), a Product is a set of tangible and intangible attributes which the buyer may accept as offering wants-satisfaction. For instance, in the Nigerian Soft drink industry we have products such as Malta Guinness from Guinness Nigeria Plc, Maltina drink from Nigerian Breweries Plc, Mirinda from 7 UP Nig. Plc; in the detergent sector, there are Elephant Blue Detergent from PZ industries Plc, and Omo, Key Soap, Loyco, Blue Band, Lipton Yellow Label Tea, Knorr (Acquired in Dec. 2005 from Cabury), Pears Baby Care, Lux, Vaseline, Close Up, etc from Nigeria Brewers Plc. Also in the financial sector, there is Master Card from UBA Plc, Child Trust and Maxi-yield from Sterling Bank Plc, to mention but a few.
A product is similar to goods in accounting. Goods are physical objects that are available in the marketplace. This differentiates them from a service which is a non-material product. The term goods is used primarily by those that wish to abstract from the details of a given product. As such it is useful in accounting and economic models. The term product is used primarily by those that examine the details and richness of a specific market offering. As such it useful to marketers, managers, and quality control specialists.
A “man” can also be an “experience”, which like .a service is intangible. However an experience is unique to the receiving individual based upon their history Example: amusement parks offer rides (product), acceptance of credit card ‘(service), and audience participation at the dolphin how (experience). My value the dolphin show is different from yours, and the extent to which I value it trade for it (money).
Joe (2008:53) states that such “items as legal and medical services, hair cut, vehicle repairs and classroom teaching also constitute product, even if they are not physical in nature. It is perhaps in consideration of this double nature of product and also in view of the fact that purchasing implies selling that Kotler (2003:342) defines a product as “anything that can be offered to the market for attention, acquisition, use or consumption that might satisfy a want or need”. He added that product “includes physical objects, services, persons, places organization and ideas”, noting that persons and organizations can attract buyers’ attention and that a person’s records or ideas for instance can be purchased, while an organization can be promoted.
1.3 STATEMENT OF THE PROBLEM
Since the advent of the industrial revolution, business environment has become sensitive and highly competitive. In order to survive and achieve their goals and objectives, it behooves business organizations to systematically adapt to changing needs of the consumers and create products that meet their yearnings and desires. Successful New product development is necessary for the survival of marketing organizations. It is however a challenging and risky business, often because of the following reasons.
It is a common knowledge in Nigeria to see a lot of organizational resources committed into product ideas that have not undergone proper research, especially market-based research. As a result, it is either that the product fails out rightly or gains marginal success. No wonder we have so many of such products wasting in the market places begging for demand. When a product idea carries a weight of benefits to give to the market, even the market will be anxiously waiting for it to be launched.
Besides proper research into developing a quality product, there is also the need for a wide range of management activities of the product from its conception to maturity or until it is being disposed. Such management activities include providing appropriate strategies for pricing, promotion distribution as well as on-going support to customers who have purchase the new product.
New product development requires enormous funding, even from the stage of idea generation and up to the time such product is withdrawn from the market. It is expected that the management, having determined the source of financing the new product development project, prepares in advance an estimated cash flow statement on the project based on estimated sales revenue and the total cost involved. They (management) should also prepare a contingency budget to take care of all exigencies so that the variances and discrepancies would be brought to light.
New Product development imposes a greater task on the manufacturers/producers to strive in satisfying their customers and retain their loyalty if their goals and objectives are to be achieved, this calls for a good leadership. And given that the project (new product development) requires enormous funding, management should adopt both short and long term marketing programs to ensure that a new product survives its cycle profitably.
New product, for the purposes of this work, will include original products, improved products, modified products and new brands that the firm develops through its own Research and development efforts. The development of a new product should be a continuous process and should be given serious management supports for the survival of business organizations.
1.4 OBJECTIVES OF THE STUDY
1. To determine the relationship between marketing research and new product development
2. To determine how new product development influences customer satisfaction and retention.
3. To determine the impact of technology, skilled manpower on new product development.
4. To identify critical factors, both marketing” and otherwise; that for new product success or failure in the market place.
5 To identify the impact of new product development on growth of Nigeria Brewers Plc Aba, Abia state.
1.5 RESEARCH QUESTIONS
1. Does marketing research has impact on new product development.
2. In what ways can new product development influence customers’ satisfaction and retention?
3. How do technology, skilled manpower, management support and adequate capital impact product development?
4. What are the critical factors that determine the success or failure of a new product?
5. To what extent can new Product development and management determine the growth, survival and growth of Nigeria Brewers Plc Aba, Abia state?
1.6 HYPOTHESES OF THE STUDY
1. There is no relationship between marketing research and new product development.
2. The new product development does not influence customer satisfaction and retention.
3. The technology, manpower do not make impact on product development
4. The critical factors do not determine the success or failure of new product development.
5. There is no relationship between new product development and growth of an organization
1.7 SIGNIFICANCE OF THE STUDY
Certain factors or conditions are necessary for rapid economic and industrial development in any society. One of such factors is Research! If Nigerian companies could invest in research for new product development in Nigeria, high quality products would likely be developed which would apart from satisfying the wants of the consumers, also help to employ our local resources, such as machinery, raw materials and labour thus steering towards economic and industrial growth and development.
This Research Study would try to unfold reasons why new products fail or succeed in the market place and this will help the marketers to know why consumers accept or reject new products or why they prefer old/existing products.
The study would also try to discover what influences the consumers have and how they arrive at a purchase decision for new products. Besides, it would help organizations that intend to introduce new products into a developing economy like Nigeria to know how to analyze the consumer and competitor factors.
This research study will be relevant to academic institutions, Libraries and various organizations as it intends to look into the problems of growing social and governmental constraints associated with new product development and management with a view to proffering solutions.
More importantly, this research work will be of great significance to the Nigerian economy and society at large. Any economic environment with high level of healthy business competition usually breeds high quality products, its continuity, availability and sustenance of which lead to economic boom.
1.8 SCOPE OF THE STUDY
The scope of this research work is limited to Lagos State, with the main area of concentration being Nigeria Brewers Plc.
1.9 LIMITATIONS OF THE STUDY
1 The major limitation was the reluctance of most business organizations to release data or information which may fall into the hands of their competitors.
2 However, the validity of the research work was not impaired by these constraints as judicial use was made of the available materials, which I believe will be beneficial and give more insight and knowledge to users of this work.
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