THE IMPACT OF NEW PRODUCT DEVELOMENT ON THE GROWTH OF A FIRM (A CASE STUDY OF NIGERIA BREWERIES PLC ABA, ABIA

STATE)

BY AMADI GODWIN.C. FPN/S01 /2007/2008/HMKT 545

A RESSEARCH PROJECT PRESENTED TO THE DEPARTIMENT OF MARKETING SCHOOL OF BUSINESS AND STUDIES, FEDERAL POLYTECHNIC NASSARAWA, P. M. B. 001, NASARAWA, NASSARAWA STAE.

IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF HIGHER NATIONAL DIPLOMA (HND) IN MARKETING

AUGUST, 2009

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APPROVAL PAGE

This project report has been read and approved as satisfying the requirement for the award of Higher National Diploma (HND) in the department of marketing, federal polytechnic Nasarawa, Nasarawa State. By:

MALLAM MUHAMMAD YERO PROJECT SUPERVISOR

DATE

MR J.T SOLOMON HEAD OF DEPARTMENT

DATE

M.O. ODE EXTERNAL EXAMINER

DATE

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CERTIFICATION PAGE

This is to certify that this research was the original work done by Amadi Godwin .C. In award of higher National Diploma (H.N.D) in making.

MR J.T. SOLOMON HEAD OF DEPARTMENT

DATE

MALLAM MUHAMMED YERO PROJECT SUPERVISOR

DATE

MR J.T. SOLOMON PROJECT COORDINATOR

DATE

MR M.O. ODE EXTERNAL EXAMINER

DATE

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DEDICATION

This research work is dedicated to my Father which is in heaven. The soon coming king.

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ACKNOWLEDGEMENT First of all, I thank the almighty God for all his mercies, kindness, protections, and salvation unto my soul. I will be eternally grateful to my parents Mr. & Mrs. G.U. Ekwonye who gave me sound education to HND level. Thank you so much for your love. I am indebted to my dear sister Oluchi A. Amadi who devoted her time, useful advice, and money to the success of my H.N.D program. Many thanks to my beloved brothers and sisters in Amadi’s family, Mr. Solomon, Mr. Wisdom (Alias Wise), Mr. Prince – Chima (Alias Notinde-happen), Anty Stella, Aunty Peace, Anty Blessing & Precious. You are indeed Papa’s Children. May God bless you all for your wonderful encouragement and support. Phill, Madam Mimi, My queen & princess, pastor Bassy, evang. Rufus, Mr. eke, all St Peter youths/ members, all scripture union members (SU), all EFAC member and all NIFES members: It is difficult to put into words what you are to me, I tried to but could not. May Jesus richly bless you people Amen. My appreciation also goes to my Project supervisor, Mal. Muhammued Yero and other departmental lecturers, Mal. Suleiman Yero, Mal. Ibrahim Abubakar, Mr. Rowland Ezenwugo, Mr. J.T. Solomon, Mr. Kuffery Iyang, Mrs. Monica Rowland, Mr. Iliya Bawa and non departmental staff as well, also the Federal Polytechnic Library Staff.

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ABSTRACT The success of an organization lies on their ability to develop new products, innovate, and effectively establish the new product development. The objective of this study basically focuses on the impact of a new product development on the growth of a firm (A case study of Nigeria Breweries Plc Aba, Abia State). In the subsequent chapters, we will look into the meaning of new product development, factors militating against it, and its influences / impacts on the growth of a firm.

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LIST OF TABLE TABLE ONE: TABLE TWO: TABLE THREE: TABLE FOUR: TABLE FIVE: TABLE SIX: TABLE SEVEN: TABLE EIGHT: TABLE NINE: TABLE TEN: TABLE ELEVEN: TABLE TWELVE: TABLE THIRTEEN: TABLE FOURTEEN: TABLE FIFTEEN: Qualification of the company staff The experience of the workers. The Company do not carry out research always The interval of the research The amount budgeted for research. Inadequate research is a problem to the company Government inspects the company’s products. Government policies affect the company’s new product development. The Company acquire loan from banks and other external means The rate of interest on loan Acquiring loan from other means at 30% is a problem to the Nigeria Breweries plc Does inadequate training hinder the growth of your company? Does training improve new product development. Does new development increase the sales volume of the volume of the firm? Does new product development increase its market shares

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TABLE OF CONTENTS

Title Page……………………………………………………………….i Approval Page………………………………………………………....ii Certification…………………………………………………………….iii Dedication……………………………………………………………...iv Acknowledgment……………………………………………………….v Abstract…………………………………………………………………vi List of Tables…………………………………………………………...vii Table of Content……………………………………………………….viii

CHAPTER ONE: INTRODUCTION/BACKGROUND OF STUDY 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Introduction………………………………………………………1 Background of Study……………………………………………1 Statement of the Problem………………………………………5 Purpose and Objective of the Study…………………………..6 Research Questions……………………………………………7 Significance of the Study………………………………………7 Scope and Limitation of the Study…………………………….8 Research Hypothesis…………………………………………..9 Definition of Terms……………………………………………..10

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CHAPTER TWO: LITERATURE REVIEW
2.0

Literature review…………………………………………………13 New product development……………………………………...13 Type of new product development………………………….....14 Product planning and product development…………………..15 Why new products are developed……………………………...17 Why new products fail or succeed……………………………...17 Organizational arrangement of handling new product development………………………………………..19

2.1 2.2 2.3 2.4 2.5 2.6

2.7 2.8 2.9

From planning to commercialization……………………..……...22 The product development process………………………………26 The concept of product life cycle………………………………...28

2.10 The concept of innovation………………………………………...31 2.11 What brings about diffusion and adoption influences………….34 Reference…………………………………………………………..39

CHAPTER THREE: RESEARCH METHODOLOGY
3.0

Research Methodology…………………………………………..40 Sampling Unit / Frame……………………………………………40 Sampling Method…………………………………………………41 Determination of Sample Size…………………………………..41 Method of Date Collection………………………………………42
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3.1 3.2 3.3 3.4

3.5

Method of Questionnaire Development and Collection……...42

CHAPER FOUR: DATA PRESENTATION & ANALYSIS 4.0 4.1 4.2 4.3 4.4 Data Presentation and Analysis………………………………..43 Respondents Characteristics and Classifications…………….43 Data Analysis and Interpretation………………………………..43 Test of Hypothesis………………………………………………..52 Discussions of Findings………………………………………….60

CHAPTER FIVE: SUMMARY, CONCLUSION & RECOMMENDATION 5.1 5.2 5.3 Summary…………………………………………………………..62 Conclusion…………………………………………………………63 Recommendation…………………………………………………63 Reference………………………………………………………….65 Appendix…………………………………………………………...66

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CHAPTER ONE 1.0 INTRODUCTION / BACKGROUND OF THE STUDY As human beings have always sought for growth and development all through their lives span also an organizational product. A good, service, idea that is perceived by same potential customers as new are a new product. It may be through innovation, imitation or renovation. In this piece of work, the researcher will concentrate on the impact of new product development on the growth of a firm. The researcher will also look at how new product development determines both the levels of economic growth and standard of living of citizens.

1.1

BACKGROUND OF THE STUDY New product development is one of the avenues of enlarging the size of the product port folio of any organization, increasing its sales volume and enlarging its financial strength. Many

organizations seems not to have recorded much success as a result of depressed economic situation. It is imperative to recognize the fact that necessity give birth to invention or innovation, and for an organization to avoid being forced out of the market, it has to innovate.

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New product development is important in a competitive market like that of Nigeria. It determines both the levels of economic growth and standard of living of the citizens. Most products in the markets today have undergone changes over times.

According to Mr. Roland’s Lecture note, new product has been seen as the life blood of any organization. This is because seizing new opportunities as they emerge is a way to increasing profits. This means that a firm with a successful new products gives it the chance of creaming off large profit before effective competition develops. Every company must develop new product because new products shapes the company’s future. Replacement product must be created to maintain or build sales. Customers want new products and firms will do their best to supply them. Companies that fail to develop new products are putting themselves at great risk.

Developing and managing products is critical to organization’s survival and growth. Although several organizational approaches to product management are possibly the share common activity functions, and decisions necessary to guide a product through its

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life cycle. Product managers coordinate efforts and become the strategic centre for the product in all markets. Marketing managers focuses on products for specific market. A venture team is sometimes used to develop new products. Members of the venture team come from different functional area within an organization and have authority to execute plans. Product planning requires the coordination of such functional areas such research and development, production and

engineering, research and finance, accounting and marketing. Each of these areas of departments has functional authority over some aspects of the product.

To maximize the effectiveness of a product mix, an organization usually has to alter its mix through such methods as new product or the development of existing product deletion of a product, or the development of a new product. Product modification refers to changing one or more of a products characteristics. This approach to altering a product mix can be effective when the product is modifiable, when customers can perceive the change, and when the modification is desired by consumer. Products can be changed through the quality, functional or style modifications.

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New product development involves generating idea, screening to determine which idea to develop, expounding an idea through business analysis, test marketing and commercialization. The decision to enter the commercialization phase means that the product has gotten to its full scale of production and that a complete marketing strategy has been developed. The adoption process by which the buyers go through in accepting a product include; awareness, interest, evaluation, trial and adoption.

The process of a company in new product requires the establishment of effective organization for managing the new product development process. The development of new product helps in improving the satisfaction of the consumers.

Therefore, this research is investigated on the impact of new product development on the growth of firm using Nigeria Breweries Plc Aba, Abia State as a case study. This industry produces both alcoholic and non-alcoholic drinks; the alcoholic drinks are: Star Larger Beer produced in1949, Gulder Larger produced in 1970, Heineken re-launched in 1998, Legend Extra Stout produced in 1992, Gulder Max Larger Beer produced in 2006. Their non-alcoholic drinks are: Maltina Bottle drink
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produced in 1976, Amstel malta produced in 1994, Maltina sip – it produced in 2005, Fayrouz produce in 2006. There has been also a acute problems militating against the standard of new produce development in the Nigeria Breweries Plc Aba and other related firms.

Consequently, the standard of new product development is limited to the following problems; lack of research or the on made is inadequate, lack of capital, government policies, lack of training among personnel’s.

Therefore, proper production management should be maintained to improve or encourage new product development on the growth of Nigeria Breweries Plc.

1.2

STATEMENT OF PROBLEM New product development has contributed much to the growth and survival of Nigeria Breweries Plc and has also suffered many problems. Therefore, this research work is designed to critically evaluate the problems of a new product development which are as follows;

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1. Lack of research or the inability of the management to find out what the consumers need. 2. failure to find out the government rules and regulations
3. Lack of training programme; Failure to train marketing personnel

for new product and new markets. 4. Lack of Capital: The company cannot raise fund needed for new product development when there is new ideas.

1.3

PURPOSE AND OBJECTIVE OF THE STUDY The purpose of the research is to study the impact of new product development on the growth of Nigeria Breweries Plc Aba. The research study was designed to enable the researcher and the firm;

1. To determine the importance of research findings on the growth of

Nigeria Breweries Plc. 2. To determine the relationship between government policies and new product development.
3. To examine how inadequate training programmed affects new

product development.
4. Examine the criteria in granting loans For external finding of new

product development.

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5. To recommend ways Nigeria Breweries Plc could improve the new

product development.

1.4

RESEARCH QUESTION Based on the statement of the problem, the objective and statement of the project, the following research questions were advanced;

1. Does inadequate research affect new product development? 2. What is the relationship between the government policies and new product development? 3. What is the relationship between inadequate training programme and new product development?.
4. What is the relationship between finance and the expansion of new

product development ?

1.5

SIGNIFICANCE OF THE STUDY This research is counted on the impact of new product development on the growth of a firm Nigeria Breweries Plc Aba. This research work will go a long way in helping the following;

1. The Researcher: - It will enable the researcher to ascertain the

problems involved in the cost of developing a new product.

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2. The Firm: - This research work will help the Nigeria Breweries Plc

to identify the problems involved in the development of a new product and also suggests the everlasting solution to them. It will also help the firm to increase its sales volume, profit and market share.
3. The Society: - This project work has gone deep to assist the

economy by increasing Job opportunities for the young graduates. It will also help to develop marketing in the economy environment both domestic and international.

1.6

SCOPE AND LIMITATION OF THE STUDY In the cause of this study, the researcher uses senior, middle, and Junior staff of Nigeria Breweries’ products, from four (4) selected L.G.A. in Abia State, which include Aba North, Aba south, Osisioma Ngwa, Isialangwa South.

However, in trying to make this research work a successful one by enquiring relative information, the researcher encountered the following constraints;
1. Time: - The time allowed for this research work is not enough for

intensive study of the project.

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2. Finance: - Shortage of fund also limited the researcher to only

four (4) local government areas as well as restricting him into printing and administering questions to the selected few among the senior, middle and junior classes of the company’s staff.

1.7

RESEARCH HYPOTHESIS Hypothesis is a tentative statement about the universe which may or may not be true. For the purpose of this research work, the following hypothesis is considered;

HYPOTHESIS ONE: HO: Inadequate research does not affect new product

development. HI: Inadequate research affects new product development.

HYPOTHESIS TWO: HO: There is no relationship between government policies and product development HI: There is no relationship between government policies and new product development.

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HYPOTHESIS THREE: HO: There is no relationship between new product development and inadequate training. HI: There is relationship between new product development and inadequate training.

HYPOTHESIS FOUR: HO: Finance procurement is not a problem to new product development. HI: Finance procurement is a problem to new product

development.

1.8

DEFINITION OF TERMS To avoid misinterpretation of any aspect of this work, it becomes necessary to the researcher to define some of the essential terms used in this work. These terms therefore should be understood as follows: Product: This is one of the elements of marketing mix that represents the basic offering being made to consumers. It is also everything (both favourable and unfavourable) that one receives as an exchange; it is a complexity of tangible and intangible

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attributed, including functional, social, and psychological utilities or benefits. A product may be a good, services, or an idea. Marketing Mix: This consists of four (4) major variables in marketing, which serves as pillars that makes marketing to stand well; they are product, place, price, and promotion. It is also called the 4P’s and marketing elements Marketing Strategy: This is the process of determining a target market and choosing the marketing mix variables needed to maximize satisfaction of those consumers. It is also the set of objectives which an organization allocates to its functions in order to support the overall corporate strategy, together with the broad methods chosen to achieve these objectives. Innovation: This is the process of producing something new inform of product or service that someone or any company has never produced it before. It is also refers to any good, service or idea that is preserved by someone as new. Research: This is an organized way of finding valid or useful information about a particular domain or phenomenon in an environment with a set of objectives. It can also be described as a thorough investigation or in-depth search for the causes of any problem within intention of preferring solutions.

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Commercialization: This is one of the product development stages in which the product is first submitted to the market and thus commences its life styles.

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CHAPTER TWO 2.0 2.1 LITERATURE REVIEW WHAT IS A NEW PRODUCT

Perhaps the key criteria as to whether a given product is new are how the intended market perceives it. If they buyers perceives that a given item is significantly different (from competitive goods being replaced in some characteristic appearance / performance) then that product is a new product.

New product development according to John (1981 P. 233) “Is the creation and adjustment of goods and services to satisfy customer demands”. In creating and adjusting products to satisfy customer demands, management should realize that it is primary in the business of providing satisfaction. People spend their money to attain satisfaction and not the specific technical characteristics of the item being purchased. It is for this reason that marketing research into the needs and desires of intended market is so highly important to product development.

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2.2

TYPES OF PRODUCT DEVELOPMENT

Product development is not limited to the creation of new products. In fact, there are three basic types of product development activities; 1. Development of new products 2. Improvement of existing products 3. Determination of new uses for existing products. According to Kotler (1988 P. 428) if the product concept passes the business test, it moves to R & D and or engineering to be developed into a physical product. Up till now, it has existing only as a word description, a drawing or a very crude mock-up. This step calls for a large jump in investment which dwarfs the idea evaluation costs incurred in the earlier stages. This stage will answer whether the product idea can be translated into a technically and commercially feasible product. If not the company’s accumulated investment will be lost except for any useful information gained in the process.

The R&D department will develop one or more physical version of the product concept. It hopes to find a prototype that satisfies the following criteria.

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1. The consumers see it as an embodying the key attributes described in the product concept statement. 2. The prototype performs safely under normal use and conditions. 3. The prototype can be produced for the budgeted manufacturing costs. Developing a successful prototype can take days, weeks, months, or even years before it could be effective. So also in designing a new commercial average for example, will take several years of development word. Even developing a new test formula can take time also.

2.3

PRODUCT PLANNING AND PRODUCT DEVELOPMENT

According to Stanton (1978 P. 167) product planning embraces all activities that enable a company to determine what product it will market. Adeyemi M.A. (2004 P. 316) see product planning as the process that involves screening new product ideas, testing their feasibility in the market, and planning a programme to market them.

Product development, a more limited encompasses the technical activities of products research engineering and design more

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specially the combined slope of product planning and product development includes marketing decisions in the following areas 1. Which product should the firm make and which should it buy? 2. Should the company market more or fewer product? 3. What brand, package and label should be used for each product? 4. What new use is there for new product? 5. How should the product be styled and materials should it be produced? 6. In what quantities should each item be produced? 7. How should the product the product be priced?

Once a company has carefully segmented the market, chosen its target customers, identified their needs and determined its market positioning, it will now be easy for her to develop a new product. However, market plays a key role in the new product process by identifying and evaluating new product ideas and working with R&D and others in every stages of development.

Every company must develop new products because new product shapes the company’s future. A company can add new products through acquisition routes which can take three firms; buying a

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license, buying from other companies, or Franchise from other company.

2.4

WHY NEW PRODUCTS ARE DEVELOPED

Pride (1984) said that new products are developed and introduced into the market for the following reasons: 1. To meet the customer’s needs and wants which are dynamic in nature. 2. Companies develops new product in order to explore the opportunity that is available to them. 3. New products are developed so as to tight competitors in the market. 4. New products are been developed to ensure continuity of any business ventures through making utilization of the idle and excess capacity thereby making better profit. 5. New product development increases the total sales volume of the firm. 6. It also increases its market share.

2.5

WHY NEW PRODUCTS FAIL OR SUCCEED

Kotler (2003 P. 351) why do some products fail, while others seem to succeed? In one of his survey, the respondent executives gave
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the following reasons listed in order of frequency of mention for the failure of new products (the 125 firms surveyed were considered to be successful product innovators). 1. Inadequate market analysis over estimating potentials sales of the new product, inability to determine buying motives and habits, and misjudgments as to what products the market wanted in regards to research. 2. Lack of training programme; failure to train marketing personnel for new products and new markets. 3. Government policy; government constraints new products have to satisfy consumer safety and environmental concerns. 4. Lack of capital; inadequate supply of money to some companies with ideas but cannot raise fund to research launch and even produce. 5. Shorter product life cycle; when a new product is successful, rivals is quick to copy it. For example, Sony used to enjoy a three year lead on its new products before others starts copying but now Matsus hita will copy the product within six months, leaving hardly enough time for Sony, to recoup its investment. 6. Fragmented markets companies have to aim their new products at smaller market segment and this can mean lower sales and profits for each product.
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7. Poor timing of introduction: The usual mistake here is to introduce a product too late to the market, although in most cases the problem is premature market entry.

2.5

ORGANIZATIONAL ARRANGEMENT OF HANDLING NEW

PRODUCT DEVELOPMENT Robert (1978 P.29) observes that depending on the organization of an organization most companies have product branch manager who co-ordinates the new product ideas before going to the product manager. In some companies, the following are the responsibilities of new product:: 1. Product Manager: - An average organization may have full section of the department known as the product development in the company President Executive Vice President V.P of Marketing Sales manager V.P of Finance Production manager V.P of manufacturing Marketing research manager V.P of personnel Sales promotion V.P of Research & development Advertising Manager

TRADITIONAL ORGANIZATION AND THE PRODUCT MANAGER
SOURCE: Robert, D. Histrictt, Marketing a new product (The Macmillan Press 2nd Edition, (1978)

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2. New Product Department: - This takes in change of developing

new ideas and coordinating research both within and outside the company for the product. Multidivisional firms may choose the new product development organization. Some department have also been labeled new product development department. This

organizational structures, separates new product development planning and management tasks from the existing divisions in the organization to centralize the new product decision-making process and eliminates redundancy of these tasks across divisions. This consists of part of the product developments like sourcing for minor ideas within the company. This is normally carried out where there one different managers in the production development department.

President

Executive Vice President

Research & development Finance

Legal Engineering

President Production

New product Marketing

RELATIONSHIP OF NEW PRODUCT DEPARTMENT AND OTHER DEPARTMENT
SOURCE: Robert, D. Histrictt, Marketing a new product (The Macmillan Press 2nd Edition, (1978)

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3. New Product Committee: This is responsible for one department

and not for all angle of the organization. This stands as a department taking the responsibility of new product development.
4. The Venture Team: According to Robert (1978 P. 40), this type of

organization is not a new approach to new product development. It seems to be better suited to the design and development of new product that do not necessarily fit into the ongoing business of the firm. A study of 98 venture managers for industrial and consumer products at large corporations characteristics; 1. The venture team is organizationally separated from the remainder of the organization.
2. Members are as revived from various functional areas such as

engineering, production, marketing, and finance 3. Existing lines of authority in the permanent organization are not necessarily valid in the venture team.
4. The venture team manager usually reports to chief executive and

is given authority to major decisions. 5. The team is free of deadline and remains together until the task is completed.
6. Freedom from time pressure fosters creativity and innovation.

To Management

New venture division

Central research & development

Television division
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Application division

Solid state division

Venture team A Venture team B

Production

Marketing

Engineering

Finance

SOLID LINES PERMANENT ORGANIZATION DOWTED LINE VENTURE TEAM MINUTES
SOURCE: Robert, D. Histrictt, Marketing a new product (The Macmillan Press 2nd Edition, (1978)

2.7

FROM PLANNING TO COMMERCIALIZATION Robert (1978 P. 43) says that new product planning and development organization often has difficulties in maintaining a balance of emphasis between existing products in various stages of development. Why does the preoccupation of operating personnel with products already on the market cause difficulty in generating interest in new product plans? Personnel in the planning development stage do not always participate in the product commercialization. Once commercialization is reached, the planning personnel continues to plan and develop new products. The problems of transferring knowledge from planning to operation is frequently encountered but may be resolved by allowing development personnel o move into operations. This problem is not as great in the product manager of organization because the product once it achieves commercialization. With the
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committee, new product department, and possibly the venture team, this transfer of knowledge may be a more serious problem since those groups are not likely to participate in the market introduction. This responsibility would be given to the marketing department. The problem of knowledge transfer, role conflict, insufficient authority and so on may be minimized or eliminated completely if the firm and its employees maintains a positive attitude towards new product planning and development. A positive attitude will help to ensure the success of any of the four organizational structures.

THE

RESEARCH

AND

DEVELOPMENT

/

MARKETING

INTERFACE According to Robert (1978 P. 44), Those individuals responsible for new product planning and development must interest with research and development in order to ensure the technical feasibility of any new product idea, as well as to determine the actual specification required for consumer satisfaction. This interaction often breaks down for two reasons;

1. Lack of good communication during relevant stages in the product

evolution process.
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2. Value conflict between the research and development group and marketing personnel. The First problem occur because research and development has difficult responsibility of explaining the new technology used in the new product development to the marketing staff. New designs, materials, and procedure that must be clearly communicated to those in the new product development organization are constantly being developed. It is also imperative that research and development groups be kept informed of the long-rage goals of the firm in the marketing of new products so that effort is congruent with these objectives.

Value conflict primarily because the researched development has little appreciation for problems in branding, packaging, distribution, pricing and promotion, and it must be instilled with awareness and understanding of how the problems faced by marketing

organization affects the success of nay new product introduction. Flexibility in managing role of research and development seems to be the key to a successful cooperation. Communication and understanding of the problems faced by each member will help to minimize the conflict of interest. Frequent meetings and careful scheduling will also aid in this inter face.
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IDEA GENERATION New product development according to Anozie (2005) call for generation of a large and interesting pool of possible product ideas with a view to finding better ones. The greater the number of ideas generated, the better the ones are lovely to be found. Anozie (2005) further stated some sources of new product ideas as follows:
1. Customers: - According to Anozie, the market concept demands

that the search for a new product ideas should start with the identification of customer’s needs and wants. Ways of identifying customer’s needs and wants are; Direct customer surveys, Projective tests, focused group discussions, suggestion systems and letters received from customers, and perpetual and

preferential mapping of the current product space to discern new opportunities.
2. Scientists: - Use of research labs for basic research e.g.

production of TV and transistors, new forms of packaging was as a result of research into solid state physics some companies exploit the basic technology to search for minor modifications of existing products.

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3. Competitors:

- Competitors must watch the new product

development by companies. Marketing intelligence can come from distributors, suppliers, and salesmen of the new product.
4. Company Salesmen and Dealers: - They are good sources of

product ideas because they have first experienced the customer’s unsatisfied needs and complaints. They are often the first to learn of the competitive developments.
5. Top Management: They can help by defining those product

market areas of greatest interest in which the new product is needed.

2.8

THE PRODUCT DEVELOPMENT PROCESS

Given some of the major issues historically confronted by firms in developing new products and given the continued proliferation of new consumer and industrial products in the lake 1970’s, 80’s and 90’s respectfully. It is therefore necessary that a firm develop new products for commercialization.

According to Kotler (2004 P. 349) companies that fails to develop new products are putting themselves at great risk. Their existing products are vulnerable to changing customer needs and tastes,

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new technologies, shortened product life cycles, and increased domestic and foreign competition.

Kotler (2004 P. 356) typically listed the product development process as follows;
1. Idea Generation: The process of generating new ideas may

consist of brain storming, reverse brainstorming, attribute costing or problem inventory analysis.
2. Screening: Techniques for evaluating new ideas may consist of

checklist or open discussion where ideas are either eliminated or considered further.
3. Business Analysis: The use of focus groups and concept as to

the exact nature of the idea before its prototype is made. This analysis should also provide further evaluation of idea in order to eliminate any of those not considered favourably at this point.
4. Development: Prototype development of the idea must be

evaluated in terms of production problems, safety requirement costs, and other modifications necessary before entering any test market.
5. Testing: The setting up of test markets can provide valuable data

on the nature of the market and needed marketing strategy

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changes or product modification necessary to ensure a successful launch.
6. Commercialization: The new product is launched into the market

at full-scale production with a significant commitment of the firm’s resources and reputation.

2.9

THE CONCEPT OF PRODUCT LIFE CYCLE

A.K Arowomole & M.A. Adeyemi (2005) see product life cycle as a marketing theory in which products or brands follow a sequence f stages including: introduction, growth, maturity and sales declines. According to Cunblitt and Still (1971), product life cycle begins where the new product development process ends. Among many writers observed that products are like living organisms during which they pass through certain stages, which begins when the product idea is conceived through the time it is introduced into the market.

The product life cycle is a attempt to recognize distinct stages in the sales history of the product. The plc concept is mostly used as a framework for developing effective marketing strategies in different stages of the product life cycle. The stages of this cycle cannot necessary be predicted in terms of exact time nor can it be
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claimed that a specified product life cycle must follow all of the stages with no alternative. The stages of the product life cycle are as follows according Kotler (2004) ;
1. The Introductory Stage: This is a period of slow growth as the

product is introduced in the market. And because it takes time to roll out a new product and fill dealer pipelines, sales growth tends to be slow at this stage. Profits are also nonexistence or negative at this stage. Promotional expenditures are at their highest ratio to sales because of the need to i. Inform potential consumers, ii. Induce product trial, and iii. Secure distribution in retail outlets. Prices tend to be high because costs are high.
2. The Growth Stage: This is a period of rapid market acceptance

and substantial profit improvement. Early adopters like the product, and additional consumers starts buying it. New competitors enter, attracted by the opportunities. They introduce new product features and expand distribution. Prices remains where they are or fall slightly, depending on how fast demand increases. The product attain sales momentum through favourable word of firm. Firms have to watch for a change from an accelerating to a decelerating rate of growth in order to prepare new strategies. So also market

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expansion strategies would help strengthen the firm’s competitive position.
3. Maturity Stage: This is a period of a slow down in sales growth

because the product has achieved acceptance by most potential buyers. Profits stabilize or decline because of increased competition. Most products poses formidable challenges to marketing management. The maturity stage is divided into three phases; growth, stable, and decaying maturity. In the first phase, the sales growth rate start to decline. There are no new distribution channel to fill. In the second phase, sales flatten on a per capital basis because of the market saturation. Most potential consumers have tried the product, and future sales are governed by population growth on a replacement demand. In the third phase, decaying maturity, the absolute level of sales starts to decline, and customers begin switching to other products.
4. Decline Stage: This is the period when sales decline for a number

of reasons, including technological advances, shifts in consumer tastes, and increased domestic and foreign competition. All lead to over capacity, increased price cutting and profit erosion. The marketing strategy relevant to this period is to identify the truly declining products, develop for each strategy of continuation through marketing mix, concentration that is concentrating its
30

resources only in the strongest markets and channels or milking strategy – that is sharply reduces its marketing expenses to increase its current profits. Finally, the company may phase out the product in a way that minimizes the hardship to company profits, employees and customers.

2.10 CONCEPT OF INNOVATION According to M.A. Adeyemi & A.K Arowomole (2004 P. 183) “Innovation is the process of producing something new inform of product or services that someone or any company has never produced it. It also refers to any good, service or idea that is preserved by someone as new. Development of new products, services or ways of working. Pride (1974) defines, innovation as the creation of something new and different. In other words, there should be a recognition of opportunity and the creation of product to satisfy the newly found opportunity. This implies that there will be an attempt at planned change, the planning of new products to permit the constant introduction of profit making opportunity through planned marketing efforts. More so, this definition embraces original products, major modification of existing products duplication of competitors products, and product-line acquisition of all which involves addition of something new into the production.
31

Continuous innovation is the only way to a very product obsolence, yet successful new product developments is hard to achieve. Reasons are; 1. Shortage of important new product ideas. Shortage of fundamentally new technologies needed for major innovation to avoid economic stagnation.
2. Fragmented

market; Competition leads to fragmented

markets. New products are directed to capture a large share of a small segment instead of the main market. 3. Growing social and government constraints: New safety, ecological compatibility and other government requirements which have affected / slowed down the rate of innovation decision in may industries.
4. Costliness of new product development process. A company

has to develop a great number of new product ideas in other to have or find out a successful one. 5. High rate of product and services fall short of expectation especially among the consumer product manufacturers. 6. Shortage life spans of successful products: The rate of cult throat competition among rivals shortens drastically the life spans of even commercially successful products.

32

IMPORTANCE OF PRODUCT INNOVATION Anozie (2005) listed the following importance of product

innovation:
1. The advancement of technology and the proliferation of new goods

and

services

are

visible

in

every

industry

or

company,

consequently most of today’s products are bound to be replaced sooner or later. Hence, the profitability and every survival of most companies or industries depend essentially upon a continuing flow of successful new product. Therefore, is the only response to the dynamic society and technology which is subjects to continuous change. 2. Companies are increasing dependently upon new products for the maintenance expansion of sales.
3. Few products, if any, perfectly satisfy the needs and frequency

change. The major objective of product innovation is to modify product or renovate products to satisfy the need of consumers at a reduced cost. The successful execution of this policy generates customer’s loyalty. As the need arises companies should quickly replace their current declining product before competitors do it for them.

33

2.11 WHAT

BRINGS

ABOUT

DIFFUSION

AND

ADOPTION

INFLUENCES According to Mr. Awa (2005 P. 124) “No two products holds equal potential for consumer’s acceptance”. While some products (such as Baby Pampers, Gala meat, Barbing Chipper, and shoes) is to achieve consumers endorsement almost over-night, others (such as Golden guinea, Begedoff Larger beer, 33 export larger and many more) crumbled in the liquor shelf for one requiring different information sources at each successive stage in the process. Purchase time is very important in diffusion theory because the average time a consumer takes to adopt an innovation is a predicator of the overall length of time that will be required for the new product to achieve widespread adoption.

CATEGORIES OF ADOPTERS Rogers (1983) articulates that or defines a person’s innovativeness on “the degree to which an individual is relatively earlier in adopting new ideas than the other members of his social class or system”. In each product area, there are pioneers and early adopter. Roggers proposed an adoption categorization scheme based on time by dividing adopters into five(5) categories of innovations.
34

2½ Innovations
34% Early Majority 34% Late Majority

13½ Early Adopters

16% Laggards

THE SEQUENCE AND PROPORTION OF ADOPTER CATEGORIES AMONG THE POPULATION THAT EVENTUALLY ADOPTS SOURCE: Redrawn from Everrett M. Rogers, Diffusion of Innovations (New York: The free press, 1983)
1. Innovations: These are first consumers to adopt new products.

They enjoy trying new products and tends to be venture some trash and daring. They account for 2½ % and are technology enthusiasts. In return for low prices, they are happy to conduct alpha and beta testing and report on early weaknesses.
2. Early Adopters: They are guided by respect. They are opinion

leaders n their communities and adopts new ideas early but carefully. They represents 13½ % after the innovators and are also visionaries who search for new technologies that might give them a dramatic competitive advantage. They are less price-sensitive and willing to adopt the product if given personalized solutions and good service support.
3. Early Majority: They are deliberate, they adopt new ideas before

the average person. They account for 34% and are pragmatists
35

who adopts the new technology hen its benefits are proven and a lot of adoption has already taken place. They make up the main stream market.
4. Late Majority: They are skeptical, they adopt and innovation only

after a majority have tried it. They account for 34% and are conservative who are risk averse technologies shy, and pricesensitive.
5. Laggards: They are traditionally bound; they are suspicious of

change, mix with other tradition bound people, and adopts the innovation only when it takes on a measure of tradition itself. They accounts for 16% who resists the innovation until the finds out that the status quo is no longer defensible.

STAGES OF ADOPTION PROCESS According to Roggers, the innovation diffusion process is the spread of a new idea from its sources of invention or creation to its ultimate users or adopters. The consumer – adoption process therefore focuses on the mental process through which an individual passes form first leaving about an innovation to final adoption.

36

Adopters of new products have been observed to move through five stages:

AWARENESS INTEREST EVALUATION TRIAL

ADOPTION STEPS IN THE ADOPTION PROCESS SOURCE: KOTLER (2004) Awareness: - At this stage, the consumer becomes aware of the innovation but lacks information about it.

Interest: - When a consumer develops interest in the product or product categories, he searches for information about how far the innovation can help him solve his consumption related problems with ease.

Evaluation: - The consumer considers whether to try the innovation by assessing the available information in the light of the problems at
37

hand and thereby noting whether further information could be sought to further reduce ht risk involved in the decision. Most consumers evaluation are cognitively or mentally related and may involve the use of models, especially where two or more brands are to be considered.

Trial: - The consumer tries the innovation to improve his or her estimates of its value. Risk is always very high at the trial stage, but it is often reduced by free samples, warranties and guarantees, instruction books and many others.

Adoption: - The consumer decides to make full and regular use of the innovation base on the satisfactory performance of the product at the trial stage or favourable evaluation of the product innovation.

FACTORS INFLUENCING THE ADOPTION PROCESS Marketers recognize the following characteristics of the adoption process; the effects of personnal influence; differing rates of adoption; and differences in organization’s readiness to try new products.

38

REFERENCE

Awa Okorie .H. (2005), “ Marketing Basic Concepts and Decision” Igwurunta, Port-Harcourt, River State A.K. Arowomole & M.A. Adeyemi (2004), “Compendium of Marketing Terminologies” Anozie E.E. (2003), “Product-mix and Brand Strategy” Owerri, Imo State. Philip Kotler (2003), “Marketing Management Eleventh Edition” Prentice Hall Indian Branch. Pride, M. & Ferrell O.C. (1982), “Fundamentals of Marketing Honghton CO. Boston Robert, D. Hisrictt (1978) “Marketing a new product” London 2nd Edition Udell, J.G. (1981), “Marketing in an age of change” An introduction. John Willey & sons. Inc. Canada

39

CHAPTER THREE 3.0 RESEARCH METHODOLOGY In this chapter, the research has to discuss the methodology used to carryout the research work. The main intention was on the following research unit, sampling method, and sample size, method of collection of data, method of questionnaire distributed, and data analysis.

3.1

SAMPLING UNIT/FRAME The population of this research work consist the staff of Nigeria

Breweries PLC Aba, using four (4) selected local government areas in Abia State. 70 staff both senior, middle, and junior classes were used from each local government making the entire population 280. Among the local government are:1. Aba – North 2. Osisioma - Ngwa 3. Aba - South 4. Nsialangwa – South Total 70 70 70 70 280 staff

40

3.2

SAMPLE METHOD To draw the sample from the sampling unit, the researcher

adopted probability sampling method. This method gives all the member of the sample unit equal chance to being selected. In this way, every, member is qualified and whether or not he she is selected is a matter of chance. Therefore, sampling method.

3.3

DETERMINATION OF SAMPLE SIZE The sample size of this work was using the staff of Nigeria

Breweries PLC, under Aba-North local government area by adopting Yaro Yamea’s formula; N = N 1+ n (e) 2

Where N = sample size E = level of significant, and N = population size. TAKING A SAMPLE ERROR OF 5% WHERE n = 70 N= 70 I + 70 (0.05)2 N= 70 1+0.175 = 70

1 + 70 (0.0025) = 70 1.175 = 60

N = 60, therefore sample size = 60

41

3.4

METHOD OF DATA COLLECTION The obtained fine the respondents through the use of

questionnaire and interview. Such respondents were the staff of Nigeria Breweries PLC Aba. SECONDARY DATA:- The research also made use of literature that are related to the topic such as textbooks, journal, magazines and many others.

3.5

METHOD

OF

QUESTIONNAIRES

DISTRIBUTION

AND

COLLECTION The questionnaires were distributed personally Aba North local government area. Sixty (60) questionnaires were structured and administered to the senior, middle and junior classes of staff and the 60 questionnaires were retread. TABLE 3.6 Respondent Senior Staff Middle Staff Junior staff Total Number Distributed 25 20 15 60 Number Retread 25 20 15 60 % 42 33 25 100

42

CHAPTER FOUR 4.0 DATA PRESENTATION AND ANALYSIS The purpose of this chapter is to present and analysis the collected data using them to proffer solution to the research questions as well as test the hypothesis stated in chapter one of this work.

4.1

RESPONDENTS CHARACTERISTICS AND CLASSIFICATION In analyzing the data collected, the researcher tread to the

examine the reliability of the data collected from the respondents. This was based on the questionnaire distributed and returned. Therefore, the purposes of this analysis, the questionnaire were used. However, sixty (60) questionnaires were distributed and returned during the data collection.

4.2

DATA ANALYSIS AND INTERPRETATION

TEST OF RESEARCH QUESTION Question 1: Qualification: What is the qualification of your work?

43

TABLE 4.21: RESPONSES RESPONSES FSLC JSS SSCE NCE OND HND and ABOVE TOTAL NO. OF RESPONDENT 5 4 10 5 30 6 60 PERCENTAGE 8.30 6.70 17.00 8030 50.00 10.00 100

INTERPRETATION: The analysis shows that 5 respondent or 8.3% are FSLC workers, 4 or 6.7% respondent and SS workers, 10 or 17% respondents are SSCE, 5 or 8.3% respondents are NCE, 30 or 50% respondents are HND and above workers in the company.

QUESTION 2: EXPERIENCE: What is the experience of the company’s worker’s?

44

TABLE 4.22 RESPONSES. RESPONSES 1 -2 2-3 3 and Above Total NO. RESPONDENTS 15 15 30 60 PERCENTAGE 25 25 50 100

INTERPRETATION: - From the table 4.2 above shows that 15 or 25% respondents were 1 – 2 years experience, 15 or 25% respondents were 2 – 3 years of experience while 30 or 50% were 3and above years of experience in the company.

QUESTION 3: Does your company carry out research always? TABLE 4.23 RESPONSES Responses Yes No Total No. of Respondents 20 40 60 Percentage 33.33% 66.66% 100

INTERPRETATION: - From the above table, 20 or 33% respondents said Yes while 100 or 67% said No. Therefore, the company does not carry out research always.

QUESTION 4:- If yes, how many years interval do they carry out their research?

45

TABLE 4.24 RESPONDENTS Responses 2 years 3 years 5 years Total No of Respondents 10 20 30 60 Percentage 17 33 50 100

INTERPRETATION: - Table 4.4 above shows that 10 or 17% of the respondents said 2 years, 20 or 33% said 3 years while 30 or 50% said 5 years. Therefore, it was greed that the company carries out research in every 5 year intervals.

QUESTION 5: How much does your company dget for research?

TABLE 4.25 RESPONSES Responses Below N20, 000 Above N20, 000 Total No. of Respondents 40 20 60 Percentage 67% 33% 100

Interpretation: from the above table we see that 100 or 67% respondents said that the company budget below N20, 000 for research while 20 or 33% respondents said that the company budget above N20, 000.

46

QUESTION 6: Is inadequate research a problem to new product development on the growth of your company? TABLE 4.26 RESPONSES Responses Yes No Total No of respondents 43 17 60 Percentage 72% 28% 100

INTERPRETATION: - From the table above 43 or 72% of the respondents said Yes, while 17 or 28% of the respondents said No.

QUESTION 7:- Does government agents? Make more to inspect your products? TABLE 4.27 RESPONSES Responses Yes No Total No. of Respondents 48 12 60 Percentage 80% 20% 100

INTERPRETATION: - In analyzing the table above 48 or 80% of the respondents agreed that government agents inspect the company , while 12 or 20% of the respondents said No. QUESTION 8: Does the government policies effect the development of new product in your company? TABLE 4.28 RESPONSES
47

Responses Yes No Total

No of Respondents 35 25 60

Percentage 58.33% 41.67% 100

INTERPRETATION: - From the table above 35 or 58:33% of the respondents agreed that government policies effects new product development in the company, while the remaining 25 or 41.67% of the respondents disagreed. QUESTIONS 9:- Does you acquire loan from bank and other external means? TABLE 4.29 RESPONSES Responses Yes No Total No of Respondents 35 25 60 Percentage 58.33% 41.67% 100

INTERPRETATION: - In analyzing whether the company acquire loan from banks and other external means, 35 or 33% agreed that the company acquire loan from banks and other sources, while 25 or 41% disagreed. QUESTION 10: What is the rate of the interest on the loan? TABLE 4.210 RESPONSES Responses 10% 20 30% Total No of Respondents 5 25 30 60
48

Percentage 8.33% 41.67% 50% 100

INTERPRETATION: - From table 4.10 above, 5 or 8.33% agreed at 20% while 30 or 50% agreed at the rate of 30%.

QUESTION 11: In question “10” with interest rate of 30%, do you think that acquiring external fund is or problem to the company? TABLE 4.211 Responses Responses Yes No Total No of Respondents 55 5 60 Percentage 91.67% 8.33% 100

INTERPRETATION: - From the above table, 55 or 91.67% of that respondents said Yes to the question, while 5 or 8.33% said No.

QUESTION 12: Does inadequate training hinder the growth of your company? TABLE 4.212 RESPONSES Responses Yes No Total No of Respondents 45 15 60 Percentage 75% 25% 100

INTERPRETATION: - From the above table, 45 or 75% agreed that inadequate training hinder the growth of the company, while 15 or 25% disagreed.

49

QUESTION 13: Does training improve new product development? TABLE 4.213 RESPONSES Response Yes No Total No of respondent 46 14 60 Percentage 76.67% 23.33% 100

INTERPRETATION: - From the above table, 46 or 76.67% of the respondents agreed while 14 or 23.33% disagreed.

Question 14: Does new development increase the sales volume of the firm? TABLE 4.214 RESPONSES Responses Yes No Total No of Respondents 44 16 60 Percentage 73.3% 26.6% 100

INTERPRETATION: - From the above table, 44 or 73.3% of the respondent said Yes, while 16 or 26.6% of the respondents said No.

QUESTION 15: Does new product development increase its market share? TABLE 4.215 RESPONSES Responses Yes No No of Respondent 50 10
50

Percentage 83.33% 16.67%

Total

60

100

INTERPRETATION: - The table above shows that 50 or 83.33% of the respondents said Yes to the question, while 10 or 16.67% said No to the question.

4.3

TEST OF HYPOTHESIS For proper presentation and analysis of the data collection, the

four hypothesis were tested where necessary, in order to rest the hypothesis stated in chapter one. Using chi-square method: Formula = C = RT X CT GT When, RT = Row total CT = Column total GT = Grand total Therefore, formula for the chi-square x2 = (O – E)2 E Where, x2 = chi-square O = observed frequency E = Expected value The degree of freedom has to be determined by using this formula, (R-I) (C-I)

51

Where,

R = number of rows C = number of columns

Therefore, we have DF = (2 -1) (3 – 1) 2 degree of freedom 1 x 2 = 2 The critical value of significance and degree of freedom 2 under 0.05 = 5.99.

DECISION RULE The decision rule for the test statistics is to accept the alternative (Hi) hypothesis if the computed value is higher than the critical value 5.99 and if not, accept the null hypothesis (Ho) and reject alternative (Hi) hypothesis. HYPOTHESIS ONE HO: Inadequate research does not affect new product

development. Hi: Inadequate research effect new product development. QUESTIONNAIRE 4em 6 Table 4.31 actual Observation (O) Responses Yes No Total Senior Staff 17 2 19 Middle Class 18 5 23 Junior Staff 8 10 18 Total 43 17 60

Table: 4.32 expected frequency (E)
52

Responses Yes No Total E = RT X CT GT

Senior Staff 13.62 5.38 19

Middle Class 16.48 6.52

Junior Staff 12.9 5.1 18

Total 43 17 60

Thus, the formula for the chi-square x2 = (O – E) 2 E TABLE 4.33 Computation of the4 chi-square (O – E)2 O 17 2 18 5 8 10 E 13.62 5.38 16.40 6.52 12.9 5.1 O–E 3.38 -3-38 1.52 -1.52 -4.9 4.9 (O – E)2 11.42 11.42 2.31 2-31 24.01 24.01 E .085 2.12 0.14 0.35 4.71 10.03

Decision rule: hence the computed value (10.03) of the chi-square is greater than the critical value 5.99; we accept the alternative hypothesis Hi and reject the null hypothesis Ho. Therefore the research development.

HYPOTHESIS TWO Ho: There is no relationship between the government policies and new product development.

53

Hi: There is relationship between the government and new product development.

Table 4.34 Responses Response Yes No Total Senior Staff 14 1 15 Middle Class 189 4 22 Junior staff 3 20 23 Total 35 25 60

Table 4.35 Expected frequency (E) Response Yes No Total Senior Staff 8.75 6.25 15 Middle Class 12.83 9.17 22 Junior staff 13.42 9.58 32 Total 35 25 60

Table 4.36 Computation of the chi-square O 14 1 18 4 3 20 E 8.75 6.25 12.83 9.17 13.42 9.58 O–E 5.25 - 5.25 5.17 - 5.17 - 10.42 10.42 (O - E)2 27.36 27.56 26.56 26.73 108.58 108.58 (O – E)2 E 3.15 4.41 2.08 2.91 8.09 11.33 31.97 DECISION RULE

54

If x2 CD > x2, reject Ho and accept Hi therefore with the computed value 31.97 which is higher than critical value 5.99, than the researcher accepts that there is relationship between the government policies and new product development. Test of Hypothesis there Ho: there is no relationship between new product development and inadequate training Hi: There is relationship between new product development and inadequate training. Question 11 and 12

Table 4.37 Actual observation (O) Responses Yes No Total Senior Staff 19 1 20 Middle Class 20 3 23 Junior Staff 6 11 17 Total 45 15 60

Table 4.38 Expected frequency (E) Responses Yes No Total Senior Staff 15 5 20 Middle Class 17.25 5.75 23 Junior Staff 12.75 4.25 17 Total 45 15 60

55

Table 4.39 Computation of the chi-square O 19 10 20 3 6 11 E 15 5 17.25 5.75 12.75 4.25 OE 4 -4 2.75 - 2.75 - 6.75 6.75 (O – E)2 16 16 7.56 7.56 45.56 45.56 (O – E)2 E 0.84 32 0.44 1.32 3.57 10.72 20.07 DECISION RULE Therefore, the researchers accept the Hi saying that there is relationship between training and new product development.

HYPOTHESIS FOUR Ho: Finance procurement is not a problem t new product development Hi: Finance procurement of a problem to new product

development.

Table 4.25 actual observation (O) 8 expected frequency Responses Yes No Total Senior Staff 12 (8.17) 2 (5.83) 14 Middle Class 16 (11.080) 3 (7.92) 19 Junior Staff 7 (15.75) 20 (11.25) 27 Total 35 25 60

56

Table 4.310 Computation of chi-square O 12 2 16 3 7 20 DECISION RULE Hence, the computed value 21.23 of the chi-square is greater than the critical value (5.99). We accept the alternative hypothesis (Hi) which says that finance procurement is a problem to new product development. E 8.17 5.83 11.08 7.92 15.76 11.25 O–E 3.83 - 3.83 4.92 - 4.92 - 8.75 8.75 (O – E)2 14.67 14.67 24.21 24.21 76.56 76.56 (O – E)2 E 1.80 2.52 2.18 3.06 4.86 6.81 21.23

4.4

DISCUSSION OF THE FINDING From the analysis of findings on the impact of new product development on the growth of a firm (a case study of Nigeria Breweries Plc Aba, Abia State), the researcher discovered the following findings:-

1. The staff of Nigerian breweries PLC, Aba Complained that research and development department does not carry out adequate research. That they unable to find out what the consumers needs and wants are overestimating potential sales of

57

the new products, and enablement to determine the buying motives and habits of the forget markets. 2. Lack of training programme. There is insufficient training programme for the marketing personnel for new products and new markets which effect the new product development of the company. 3. Ineffective government policies and regulation by government agents hinder the growth of the company there includes, the inspection fees, taxes, levies, quality, dates of production and the expiring dates. 4. Lack of Capital: The respondents complained that inadequate fund is a problem to the new product development. Even when new ideas were generated the management cannot raise money needed for research, launch and even product.
5. That shorter product life cycle affects new product development in

the organization. The respondents also complained that most products have shorter life cycles.

58

CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATION 5.1 SUMMARY Nigeria Breweries Abia Plc seems not to have recorded much success as a result of depressed economic melt down. This is because, they failed to recognize the fact that necessity gives birth to invention or innovation. New product is indeed the life blood of any organization and therefore stands as one of the avenue of enlarging the size of the product portfolio of any organization, increasing its sales volume and enlarging its financial strength. Once a company has segmented the market, chosen its target customer groups and identified their needs and determined

59

its derived market positioning it is ready to develop and launch appropriate new products. Marketers should participate with other department in every stage of new product development which are: idea generation, screening analysis, development, testing and commercialization. Finally, consumer’s adoption process also help on

organization to induce sales since it is the only way by which customers learn about new products, try them, adopts or reject them. 5.2 CONCLUSION Conclusively, in reading through the chapters of this research work, chapter one is expressly on the introduction of new product development and most problems militating against them. Chapter two tends to be more mature. It reviewed other authors write up on the topic. Chapter three, the researcher stated the methods used in data collection and distribution of questionnaire, which chapter four was used to prove that all the research problems and hypothesis stated in chapter one were true and real. This can be seen through the response of the respondents from questionnaire items 6, 8, 12, 13, which were analyzed using tabular form in percentages. After that chi-square (x2) was also used to test the hypothesis which were accepted the alternative hypothesis (Hi).
60

Showing that they are all problems facing new product development which affects the growth of a firm.

5.3

RECOMMENDATION Based on the findings of this study, the researcher recommended the following suggestion to remedy the problems.

1. The company should developed their research and development department so as to carry out adequate research to enable them find what the consumers want and needs are in order to satisfy them. 2. Good training programmed should be made available for the marketing department or personnel of the Nigeria breweries plc. For new production development which will expand the skill of marketing personnel. It will also increase the quality of the company’s produce. 3. The government policies should not be ignored or over looked to avoid bund or sanction by the federal government.
4. To resolve the financial problems, government should set up a

financial institution that will be granting loans with low or little interest rate to the company. This financial assistance will help go a long way to improving the newly idea generation for the new

61

product development. This money should also be used for the purpose it is made for. 5. The problem of poor timing of introduction of the products management should know where, how, and when consumers needs a new product and before every productions or introduction should be made.

62

REFERENCE Adeyemi, M.A. & Arowomola A.K (2004), “Compendium of Marketing Terminologies Anozie, .E.E. (2003), “Product-Mix and Brand Strategy” Owerri, Imo State Awa .H. Okorie(2005),“MARKETING Basic concept and Theory / Decisions”, Igwurunta port-Harcourt. River State. Benson .P. Shepipo, (1995) “Business Marketing Strategy” Cases, Concepts and Applications, Boston skinner Printer Company United State of America. Chester Wasson (1980), “What is new about a new product” journal of Marketing. Marketing Journal (1991), “New product Development, Problem and Prospect March Value 2 Philip Kotler (2003), “Marketing management Seventh Edition” Prentice Hall Indian Branch. Philip Kotler (1988), “Marketing Management 6th Edition” analysis, planning, implementation and control Prentice-Hall Indian Branch. Pride .M. & Ferrell .O (1982), “Fundamental of Marketing Honghton Mitten Co. Boston Robert .D. Hisrictt (1978), “Marketing A New product London, The Macmillan Press 2nd Edition. Udell J.G (1981), “Marketing in an age or change” An introduction john Willey and son, LNC. Canada.

63

APPENDIX 1 Marketing Department School of Business Federal Polytechnic Nasarawa P.M.B Nasarawa State Dear Sir/Madam, I am a final year student of the above named institution and currently carrying out a research on the impact of new product development on the growth of a Town (A case study of Nigeria Breweries Aba, Abia State). I will be very grateful, if you can provide adequate answer to the questionnaires listed to enable me build up some information needed for my research work. All answer given should be treated with the most strict confidentially.

Yours Faithfully,

AMADI GODWIN .C.

64

APPENDIX II Please indicate you research on each item by inserting a tick (√) for the dichotomous questions (that is questions requiring only Yes or No answers). i. Sex: ii. Age: iii. Qualification Male 1 – 12, FSLC NCE Female 21 – 30 SSS OND and Above 31 – 40 SSCE HND and Above

iv. Years of experience with the company 1–2 v. 2–3 3 and Above

MAIN QUESTIONNAIRE

1. Does your company carry out research always? Yes No

2. If yes, how many years internal do they carry out research? 2 years 3 years 5 years

3. How much does your company budget for research? Below N20, 000 above N20, 000

4. Does your company have research and development department? Yes No

5. Does this department carry out research to new products? Yes No

65

6. Is inadequate research a problem to new product development on the growth of your company? Yes No

7. If yes, is there any relationship between research department and new product of development? Yes No

8. Does government agent make move to inspect your products? Yes No

9. Does the inspection help in the experience of the business? Yes No

10. How often is the inspection? Once a year twice a year thrice a year

11. Doe the government policies affect the growth of the company? Yes No

12. How do you accept the company new product? High Low

13. Do you acquire loan from bank and any other external means? Yes No

14. What is the rate of the interest on the loan? 10% 20% 30%

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15. In question “14” with interest rate of 30% and above, do you think that acquiring external fund is a problem to the company? Yes No

16. What is the cost of direct material in your production? 30% 40% 50%

17 How often do you have training programme per year? Once twice none

18. Does inadequate training hinder the growth of you company? Yes No

19Do you believe that training improve new product development on the growth of the company? Yes No

20. Is there any other competitor in the industry? Yes No

21. Does new product development increase the sales volume of the firm? Yes No

22. Does it increase the market share? Yes No

23. What is the duration of the company new product? One year above one year

67

24. Does your company make use of break-even analysis and chart for new product development? Yes No

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