The Impact of Product On Sales Volumes of Aluminum Products: T.K.M Centre For Higher Education, Kollam 1

The Impact of Product on Sales Volumes of Aluminum Products
CHAPTER 1
INTRODUCTION
Technological oriented companies have begun to recognize
that a blend of development and marketing in their overall
strategy is vitally important to the achievement of the
corporate goal of the firm. The corporate goal of a company
could be multifarious but the most common one that cut
across many firms in a competitive market is SURVIVAL,
which is achieved partly through profits. To achieve this
goal, the blend of product development and marketing
concept philosophy must be harmonized with the company’s
global strategy. Product development on the other hand
involves the introduction of a new good or service that is
new or substantially improved. This might include
improvements in functional characteristics, technical
abilities, ease of use, or any other dimension.
Product development can be separated into three basic

categories :( 1) line extensions, (2) me-too products, and (3)
new-to-the-world products. Line extensions are products still
familiar to the business organization but new to the market.
Me-too products are considered new to the business
organization but familiar to the market; that is, imitations of
competitors’ products. New-to-the-world products are
considered new to both the business organization and the
market [2]. At the declining stage, it will be necessary to
innovate product, in order to make it withstand the strong
competition from competing products and to suit the
T.K.M Centre for Higher Education ,Kollam 1

changing desires of the customers that consumes the

product. As it is widely recognized, needs changes over time
and companies must reflect these changes in their products
if they are to achieve the economic objective of maximizing
profit and satisfaction.
Throughout modern history, product development receives

increasing support and
attention. The underlying reason is that markets are highly

dynamic. What was a profitable product yesterday may not
be profitable tomorrow. Furthermore, successful new
products command substantially higher profit margin than
mature or declining products. Successful new products are
profitable –at least for a while before competitors roll out
their own me-too products to the market and eventually
compete on price basis. Most companies face the inevitable
choice of product development on gradually fading products
for the market. However, it should be noted that product
development is not only carried out at the declining stage of
a product, it can also be done to a totally novel product at
the introductory stage.
Marketing of new product goes through a period of growth,

reach a peak, and eventually decline. In addition, profit
tends to reach a peak and usually begin to decline earlier
than sales volume. Optimum sales volume is often reached
only after competitors have entered the field, price rivalry
has become intense and profit margin have been shortened.

To sustain profit, new products/ services may be needed

long before sales of established
product/ services have begun to fall.
The salient causes of product/ services lifecycles include:
o Instability of consumer demand
o Instability of competitive position.
Profit calculation relating to innovated products must be

based on forecasting. Consider the formula below:
R= (D. (p-c). L -(d.(p-c).L) – (d.(p-c).L2… dx(p-c)L)n
Where R= Total long term net profit
D= Average total units of sales per year
P= average sales per unit
C= Average cost per unit
L= Expected life of the product/ services in years.
The above formula means that the planned products may

either increase or reduce the profitability/benefits of every
other product. If profit optimization is assured to be a firm’s
major goal, new product and services should be chosen to
maximize resource utilization.
As earlier mentioned, the opportunity to market a new

product or undergo product development is increased if
management understands the adoption and diffusion
processes. The adoption process is the decision making

capacity of an individual through which a new product, the

development is accepted. It is the acceptance and continued
use of a product or brand. The diffusion of the new product is
the process by which the development is spread through a
social system over time. The rate of diffusion is measured by
the number of consumers who have adopted an
development at various periods from the time it
was innovated.
Adoption process involves the following stages:
• Awareness: This is when the consumer becomes aware

of the development but lack
• Interest: Here, the consumer’s interest is stimulated to

seek for information
about the development. e.g, price, benefit, warranty,
availability etc.
• Evaluation: Here, the consumer decides whether to try

the development does by considering the product
cost features and benefits.
• Trials: At this stage, potential consumer tries the new

product to improve his /her estimate if its value.
• Adoption: The consumer decides to make full and

regular use of the innovated product.
Innovated products have consistently proved overtime

•
that higher sales volume is a dividend attached to
such development.
CHAPTERISATION

The report is divided into six chapters. The first chapter

provides project background – objectives, methodology and
limitations of the project. The second chapter gives brief
history of aluminium..The third chapter focuses on company
profile institutional mechanisms. It identifies design features
that led to successful collaboration. The fourth chapter deals
with data analysis and interpretation. The fifth chapter
assesses the findings of the project. The last chapter gives
Recommendations and conclusions.
1.1 OBJECTIVES OF STUDY
 To analyze the turn over of sales volume
 To understand buying behavior of customers.
 To study about non availability of products affects

profitability.
 To analyze how the activities of competitors bring about
product development.
1.2 SCOPE OF STUDY
The scope of this research is strictly within the framework of

the stated objectives. It is an effort to study the impact
which product development has on the on Sales Volumes of
Aluminum kitchenware. The respondents are therefore the
company personnel and it must also be emphasized that this
is not a general survey; attention will be focused on the
Aluminum kitchenware products
1.3 SIGNIFICANCE OF STUDY

The output of this thesis project will be of great value to

companies that are involved with technological products, not
only consumer electronics. Firms will be able to apply market
performance knowledge of development products in
designing their development funnel and not inhibit their
innovative capacity by using fixed rules and standard to all
products. The analysis from market trend can help to decide
on the type of development strategy to embark upon, how to
effectively use product development as a distinct strategy. In
addition, this project will also highlight ways through which
this important aspect of product development can be
improved upon.
The output of this research will also be to the following

categories of people:
1) The organization takes as case study: The result and

recommendations from this
research work will help product managers to see product

development as part of their task
by bringing them out of the shell of just rolling out products

without monitoring its life cycle.
2) To the industry of which the case study belongs: This will

also assist in fashioning the business model to maximize
profit and consumer satisfaction, re-tailoring their product to
meet the changing tastes of the consumers.

1.4 STATEMENT OF PROBLEM
The statement of problem in this research work includes:
a. Investigating how lack of development will likely affect

Fathima Rolling Mills consumer product and their consumer
satisfaction.
b. Finding out whether lack of development by the firm will

likely affect their profit and consumer satisfaction.
c. Determining how the activities of competitors bring about

product development.
d. Evaluating the impact of product obsolescence on product

development in Indian aluminum product
e. Finding out whether inadequate research about the needs

of consumers before introducing the product brings about
the failure of the product.
f. Evaluating the extent to which product developments have

impact on consumer’s buying decision.
g. Identifying the likely impact of consumers’ taste in

bringing about product development.
1.5 LIMITATIONS
1. The time allowed for the study was not sufficient to

cover the market area
2. A small sample was selected and was restricted to

Kollam. It might not be true representation of whole
market.

Some did not respond properly to the questionnaire.
1.6 METHODLOGY
SOURCES OF DATA
The sources of data for research work will come from the two
main source of statistical data collection method, which are
often used by marketing researcher. These are primary and
secondary sources of data.
PRIMARY DATA: These are sourced by the researcher

newly and primarily from the respondents to solve the
project at hand. This is normally carried out with the use of
questionnaire. Questionnaire will be used to obtain the
primary data from the employees of Fatima Rolling Mills.
SECONDARY DATA: They are collected by the researcher

by consulting existing information within or outside the
organization for solving the project at hand other than the
current investigation. The use of questionnaire is the only
specific approach used in collecting data in this study.
SAMPLE SIZE AND SAMPLING TECHNIQUE

The sample is a representative fraction of the larger
population. For the purpose of this research work, a sample
size of 10 subjects will be used due to constraint on logistics
and the sample shall be made up of individuals from the
population of study in the appropriate proportions.
However, the stratified random sampling technique will be

used to select the sample of the staff of Fathima Rolling Mills
with the staff strength being the classification criterion. Each

stratum will be selected based on their importance in the

population. Simple random sampling technique will also be
used to select the appropriate individuals to which the
questionnaire shall be administered to in each stratum.
DATA COLLECTION INSTRUMENT
The data collection instrument to be used in this study shall

be questionnaire, which will be administered to the
respondents. The choice of questionnaire is that it
guarantees a higher level of anonymity of the individual,
which most respondents will prefer. It also enhances the use
of standardized questions.
METHOD OF DATA COLLECTION

Data collection consists of presenting stimuli to a respondent
and recording his/her response. The stimuli may be verbal
questions, clearly identified tasks in the laboratory, complex
activities in the market place or modifications of the
situations. Thus, the aim of data procedures is to get
worthwhile data for the problem as defined. For the study,
both primary and secondary data will be used. Primary data
are drawn from their original source for the purpose of the
study at hand, while, secondary data are taken from
journals, textbooks, officials compilations, newspapers,
periodicals, etc. as the case may be.
DATA PRESENTATION
The completed questionnaire will be collected serialized
coded and analysis sequentially done according to the
research question. Simple percentage means, standard

deviation and hypothesis testing shall be used to analyse the

data.
PERIOD OF STUDY
The period of this study is one month.
CHAPTER-2
BRIEF HISTORY OF COMPANY

Aluminum Discovery and Extraction – A Brief History
The term aluminum comes from the alum compound,

(KAl(SO4)2?12H2O), which contains it. In 18th century it was
realized that alum contained a peculiar base, different from
all others, but only in the 19th century scientists were able
to isolate it.
Berzelius and Davy tried to use electrolysis processes to

isolate the metal contained in alumina. In particular Davy
heated a mixture of alumina and potash and then submitted
the mix to a electrical current, but with no success.
In 1825 was Oersted to try to isolate the metal believed to

be contained into the alumina. He first prepared anhydrous
aluminum chloride (AlCl3) by passing a current of chlorine
over a mixture of charcoal and alumina heated to redness.
Then, the aluminum chloride produced was mixed and
heated with potassium amalgam producing potassium
chloride and aluminum amalgam. Distillation of this
amalgam without contact with the atmosphere left a lump of
metal which color, said Oersted, resembles tin in color and
sheen.
Wöhler repeated the Oersted experiment, but was unable to

duplicate the results. Recent repetitions of the experiment,
based on Oersted notes, have shown that using a very dilute
potassium amalgam (1.5% K) it is possible to extract the
aluminum.
Oersted encouraged Wöhler to continue in his attempts. So,

Wöhler first produced the anhydrous aluminum chloride.
Then, he put in a platinum crucible a mixture of AlCl3 and
potassium (K), instead of using potassium amalgam as
Oersted. The crucible was closed and some heat applied just
to start the reaction. Soon, the crucible became very hot,
being the reaction:
3K + AlCl3 -> Al + 3KCl

exothermic. The produced aluminum was contaminated with

platinum, so he repeated the experiment with porcelain and
other materials crucibles, always being able to produce
aluminum in the form of a gray powder. The aluminum
produced was contaminated by potassium, platinum or
aluminum chloride, however he first described the most
important properties of aluminum and then, in 1845, was
able to produce a coherent mass of aluminum.
In 1855 French scientist Henri Sainte-Claire Deville, ignoring

Wöhler 1845 experiment, duplicated it. Observing the
aluminum chloride reduction, he understood the importance
of the discovery and immediately started to study how to
produce large quantities of this metal to be commercialized.
Two ways were possible. The first one was the chemical
production of the aluminum, using the chloride as salt and
the potassium as the agent to reduce it, the second choice
was an electrolytic method to reduce the chloride, with a
carbon anode and a platinum cathode. Both methods were
difficult to implement on a large scale. In the chemical
method, the potassium was very expensive and dangerous
to manipulate, while there were not available sources of
electricity at low cost, the only one existing being primary
batteries. Hence, H. St.Claire Devile choose the chemical
method to produce aluminum, using as reduction agent the
most common in nature sodium (Na) rather than potassium.
The Deville’s work was greatly helped by the funds gave him
by Napoleon III. Thanks to the work of other chemists of that
time, Deville was able to produce for himself large quantities
of sodium. At the same time in this period two other
processes had to be converted into industrial processes, the
first one being the production and refining of alumina and
the second one the conversion of alumina into aluminum
chloride. Anyway, in 1859 the available quantity of
aluminum increased (2 tons/year produced in Salindres
plant). Through the years going from 1855 to 1890 the
aluminum price declined from the equivalent 1200 €/kg to
13 €/kg. During that years, different chemical and
electrochemical methods were developed for the aluminum

extraction. Chemical methods were more or less variations

around the basic St. Claire Deville process. We can mention:
Castner, Netto, Grabau, Webster, Frismuth, etc…The
electrochemical processes could be splitted into two main
categories: electrothermic and electrolytic. For the
electrothermic processes we can mention Cowles, Héroult,
Brin, Bessemer, Stefanite, Moissan, while for the electrolytic
processes we have Héroult, Adolphe Minet, Hall, Hampes,
Kleiner, Gooch, Waldo.
From all these processes, emerged the work of the American

Charles Martin Hall and French Paul Louis Toussaint Héroult,
whom independently and at the same time invented the
process that is still used to reduce alumina to aluminum.
In 1880 at the Oberlin College near Cleveland, Ohio, two

people met. One was Frank Fanning Jewett, professor of
chemistry and mineralogy at the Oberlin College. Jewett had
the possibility to study at the University of Göttingen in
Germany between 1873 and 1875. During his stay in
Germany he met Wöhler, who had isolated aluminum in
1827. The other was a young student from Oberlin, Charles
Martin Hall, self-educated person in chemistry and so
passionate to conduct experiments at his home. Hall, at the
age of 16, already knew the problems involved in the
aluminum production and, under the Jewett guidance and
encouragement, worked on aluminum chemistry both at
home and Oberlin College laboratory. Hall first tried chemical
reduction methods to produce aluminum, but with no results.
Then, together with Jewett, they decided to follow the
electrolytic way to produce aluminum. In a first attempt, Hall
tried to decompose aluminum fluoride (AlF3) dissolved in
water, but the only results was the production of hydrogen
at the anode and aluminum hydroxide at the cathode. The
important thing in this work was the selection of the fluoride,
never tried before. The next step was the use of fused salts
as solvents. After different experiment, he choose the
cryolite as the solvent, being him and Jewett aware of its use
in the Deville works. He was able to melt cryolite and
showed that it was a good solvent for alumina. The first

electrolysis attempt was made using a clay crucible, but the

result was the production of silicon from the crucible
material. Then, recognizing this, the clay crucible was lined
with graphite, it was added some aluminum fluoride to the
cryolite in order to lower the melting point and the
experiment was repeated. After several hours of electrolysis,
he cooled the melt and broke it open, finding small silvery
globules that Jewett confirmed to be aluminum. It was
February, 23rd 1886.
After some troubles, in 1888 a group of investors, organized

by Captain Alfred Hunt, provided Hall with enough fund to
establish the Pittsburgh Reduction Company, the Alcoa
predecessor.
One or two months later the Hall discovery, French Paul

Louis Toussaint Héroult made the same discovery
independently. He learned of the St.Claire Deville discoveries
at the age of 15 reading the Deville’s famous treatise. He
tried to produce aluminum electrolyzing various aluminum
compound, with no success. Then, he tried to electrolyze
cryolite. During the process, he find the iron cathode was
melted. Because the temperatures were not so high to
justify a melting of the iron, he realized that some alloy had
been formed. Few days later, in an attempt to lower melt
temperature he added some sodium aluminum chloride and
noticed that the carbon anode was consumed. What
happened was that the sodium aluminum chloride entered in
contact with the moisture, being converted into hydrated
alumina. So, basically Héroult discovered the same process
to produce aluminum revealed by Hall just a couple of
months before.
Aluminum is the most abundant metallic element in the

Earth’s crust (about 8%) and is the third most common
element after oxygen and silicon. Unlike copper or gold,
aluminum cannot be found in nature in the pure state
because of its high affinity with oxygen, being so always
combined with another element like in alum

(KAl(SO4)2∙12H2O) and in aluminum oxide (Al2O3). So, up to

1820, the aluminum was unknown as a metal.
In the 19th century the production process was so expensive

and available quantities so small that aluminum was a
precious metal ($1200/kg in 1852). Indeed, Napoleon III
emperor of France had a baby rattle and some other small
objects made of it, and a story tells that during a banquet
the most honoured guests were given aluminum utensils,
while the other guests were given gold utensils.
Presently, aluminum is the second largest used metal in the

world, mainly due to its light weight, high strength and
recyclables.
Aluminum is heavily used in the transportation industry

because of its durability, strength and lightweight. Aluminum
weight is one third of steel or cast iron. Taking into account
increased thickness of the aluminum parts compared to
steel, 1 kg of aluminum replaces 2 kg of steel, leading to
lighter cars, trucks, etc… with reduced fuel consumption and
CO2 generation.
Without aluminum the commercial aircraft industry would

not have existed. The new A380 employs 66% of aluminum
in the airframe, while a Boeing 747 contains 75 tons of
aluminum.
The use of aluminum for the building of ships is increasing

year by year. Today, single and multiple hull boats are made
entirely of aluminum alloy. This kind of marine applications
involve the largest usage of aluminum per produced object
(400 ton) compared to a large, all aluminum car (1 ton).
The usage of aluminum is increasing in the military field too,

where it is used as a substitute for the steel.

In building and construction aluminum find a wide variety of

applications, and its use is steadily increasing. It can be used
to manufacture structural elements, as in bridges (for
example, the Corbin Bridge in Pennsylvania has been
retrofitted with an extruded aluminum deck, which is lighter
than the previous deck made of steel and timber, allowing
the bridge to sustain 22 tons load compared to the previous
7 tons). Curtain wall made of extruded aluminum and glass
are very attractive for the design of new buildings or retrofit
of old ones. Windows made of extruded aluminum are
attractive, energy-efficient (with thermal broken
technology), and reliable. Domes for gymnasiums, schools,
theme parks, storage facilities, multi-purpose arenas,
industrial roof systems, and churches are made with
aluminum because of its strength and low weight. Aluminum
is one of the best material also in the roof construction,
because of its strength against corrosion and, hence,
weathering and influence of pollutants in the atmosphere.
Low maintenance aluminum facades are used to cover old
houses facades made with thin or wide wooden clapboard.
Aluminum find also wide use in the packaging industry,

being produced in both rigid and foil forms. Rigid aluminum
containers are used for beverage and food packaging.
Aluminum cans account for all of the beverage can market,
but only a small percentage of the food can market. Cans
are 79 percent of aluminum packaging by weight. Foil
packaging is used as a wrapping foil, as semi-rigid packages
such as pie plates and frozen food trays, and as flexible
packaging such as cigarette foil and candy wrappers
Aluminum properties
The following table contains the main aluminum properties:

Physical Properties
Phase Solid
Density at room temperature 2.70 gr/cm3
Liquid density at melting 2.375 gr/cm3
point
Melting point 933.47 K (660.32 °C)
Boiling point 2792 K (2519 °C)
Heat of fusion 10.71 kJ/mol
Heat of vaporization 294.0 kJ/mol
Specific heat capacity (25°C) 24200 J/(mol∙K)
Electrical resistivity (20°C) 26.50 nΩ∙m
Thermal conductivity (300 K) 237 W/(m∙K)
Thermal expansion (25°C) 23.1 µm/(m∙K)
Young Modulus 70 GPa
Process basics
The aluminum is produced extracting it from the aluminum

oxide (Al2O3), called also alumina, through an electrolysis
process driven by electrical current. The process uses as
electrolyte a molten salts called Cryolite (Na3AlF6) capable of
dissolve the alumina. Carbon anodes are immersed into the
electrolyte (usually referred as the "bath") carrying electrical
current which then flows into the molten cryolite containing
dissolved alumina. As a result, the chemical bond between
aluminum and oxygen in the alumina is broken, the
aluminum is deposited in the bottom of the cell, where a
molten aluminum deposit is found, while the oxygen reacts
with the carbon of the anodes producing carbon dioxide

(CO2) bubbles. The alumina reduction process is described

by the following reaction:
Once passed through the bath, the electrical current flows

into the molten aluminum deposit and is then collected by
the bottom of the pot, usually called "cathode".
The following is a schematic picture of an aluminum

electrolysis cell:
CHAPTER-3
COMPANY PROFILE
Fatima Aluminum Rolling Mills

Fathima Rolling mills is the largest aluminum profile

production enterprise in kollam Region located in Mundakkal
and possesses 20 extrusion production lines with maximum
extrusion tonnage of 360T, with annual yield of various
aluminum products of 5,000T.
Our company mainly specializes in the production and

processing of aluminium kitchenware including Aluminum
trays, Aluminum cookware, Aluminum cooker, Aluminum
Kettle
We have total an area of 3200 square meters, with a

building area of 180,00 square meters. Our company
possesses a whole set of imported automation high quality
equipment, two large-scale hot top casting lines, one
homogeneous production line, and 20 extrusion production
lines.
The motive of this study stems from the fact that many
companies have failed torecognize that the blend of product
development and marketing is vital to the achievement of
the corporate goal.
Product, which is one of the major factors of marketing mix

of achieving customers’ satisfaction as well as corporate
goal, must be well addressed. In view of this, the study is
designed to show the impact of product development on
success of consumer goods using Aluminum sauce pan,
product under the Consumer goods of. Fatima Aluminium

Rolling Mills Aluminum is the second largest used metal in

the world, mainly due to its light weight, high strength and
recyclables. Aluminum designs have become a perfect
choice for homes in the India that have modern living style
concepts. It gives a particular effect on the appearance of
any building. This material has various properties which
enhances its usage and productivity, when used in a variety
of domains, like in the home, in transport, in industry and
commerce.
Powder coating technology is applied as an effective

measure to strengthen the durability of the goods along
with lasting finish. It is usually used to create a fleshy
finish that is better than conventional paint. Many
sophisticated powder coating vessels are being marketed
by Shank Aluminium to smooth your living with facilities
like:
• Rubber Boot to avoid scratch on bath room and kitchen.

• One year warranty to all powder coating products.
• Attractive color options that inspire your sense of
imagination.
• Apt pattern for sanatoriums and multitude requests.
• Long lasting Aluminium with 100% quality.
Profound drawing equipments are used to manufacture

high quality pressing aluminium vessels. The light
weight excellence of our products gained sound
demands due to its durability, easiness and flexibility.
The company always cares to produce products in an
economy rate that helps the customers to fix their
purchase budgets in its optimum. The state of art
design is an outstanding feature of the Pressing
Aluminium Vessels. Continuous researches are being

conducted by the company on quality control to

increase the quality of the products.
Hi powered engineering drawings are used to perform all

the process of vessels fabrications. The company
provides the most sophisticated cutting and burning band
saws, cutting torches to reduce the time and to get
accuracy with final finish. All the following procedures like
Machining, Welding, Final assembling is being done by
sophisticated technology with well qualified technicians.
We are undertaking the fabrication works of the rage
form 10 liters to 2000 liters with 100% purity.
PRODUCT FEATURES
Features:
1) Quality guaranteed and Good price
2) Widely used in construction, decoration and
industry
3) Quick Prototype in 7 to 10 business days
4) Various in size, style (aluminum profile, tubes,
pipes, rods, flat bars, angles, square bars,
rectangle tubes, "T" profiles, and "U" channel),
color depend on your requirements
5) We can use mechanical polishing, electro-
colored, sand blasting, anodized, powder coating,

mill finish, wooden transfer to do you any color

you need
QUALITY CONTROL
Quality Control
Fatima Rolling Mills – Fathima Aluminium
Rolling Mills. is committed to quality and the
achievement of excellence throughout all company
activities. With the objective of providing our
customers the best possible products and service
Our product seeks to constantly improve
manufacturing processes, testing and
measurement techniques, and the overall
performance of our quality management system.
Quality Policy
The Quality Policy is established and structured to
provide ISO9001:2000 compliant quality
management. Our quality management system is
designed to provide satisfaction for our customers
with defect-free products that conform to their
requirements and are delivered on time. We
communicates our commitment to quality within
the organization through the provision of
resources, leadership, and quality objectives.
By monitoring and reviewing the quality

management system we will ensure its continual
improvement and effectiveness.
Quality Objectives
Provide satisfaction for customers by continually
meeting their requirements.

Provide defect-free products delivered on time to

our customers.
Provide resources to individuals within the
organization who perform processes affecting
quality, to enhance customer satisfaction.
Assess opportunities for improvement of the
quality management system, and its continuing
suitability and effectiveness.
Certificate & Award we have won
CHAPTER -4
DATA ANALYSIS AND INTERPRETATIONS

INTRODUCTION
The objective of this chapter is to describe and interpret the

result of the survey and use them to answer the research
questions.
PRESENTATION
The data collected from the respondents through the

questionnaires were analysed using the percentage, the
“student” “t” distribution to test and analyse the data
relating to the hypothesis while other data in the
questionnaire were analysed with the percentage method.
For easy analysis, the information obtained from the

respondents was quantified with numerical scores and
converted to percentages as indicated below. The analysis of
section A which was directed to the staff of Fathima Rolling
Mills marketing/sales, production, research/development and
accounts departments and section B was directed to the
consumer of the product.
Question 1 was asked to find out whether PCE engages in

product Development. The outcome of the finding is as
follows:
1: Does the company engages in product Development ?

10
9
8
7
6
5 Yes
4 No
3
2
1
0
No of
Answers
It was used to find our how the company engages in product
Development, that is, what type of product – Development
does the company engages in. The result of the findings is as
shown below:
Answer Number of Percentage

Answers
Total Development 0 0
Incremental 0 0
Development
Combination of the 5 50
two
Situation 5 50
determines the
type to use
The above table shows that 50% of the respondents are of

the belief that the
company adopted a combination of both total and partial
Development while 50% of the respondents are of the belief

that the prevailing circumstance determines what type of

Development to use.
Why does the company engage in product Development?

Answers
To improve 0 0
products
performance
To fight 0 0
competitors
To attract more 0 0
customers
To increase 3 30
company’s profit
All of the above 7 70
Table III above shows that 30% of the respondents believed

that the only reason
why the company engages in product Development is to
increase company’s profit while 70% of the respondents are
of the view that the company engages in product
Development because of the above reasons.

4: When does the company engages in product

Development?
Answers
At the introductory 0 0
stage
At the growth 0 0
stage
At the maturity 1 10
stage
At the declining 1 10
stage
Could be any of 8 80
the above stages
depending on the
prevailing
circumstances
The result in table IV above shows that 80% of the

respondents, agreed that the
prevailing circumstances determines when product
Development could be carried out on a product, while only
10% of the respondents belief that product Development is
done at the declining stage, and another 10% of the
respondents belief that product Development is done at the
maturity stage .

The result in table V shows that all the respondents agreed

that product Development has helped the company in
achieving its corporate goals.



CHAPTER-5
FINDINGS,RECOMMENDATIONS AND CONCLUSIONS
5.1 FINDINGS
The findings from this research work are as follows:
1) That lack of product can affect the organization’s profit

and consumer satisfaction;
2) That product obsolescence is responsible for product

Development;
3) That product Development has impact on consumer’s

buying decision;
4) That changes in consumers’ taste brings about product

Development.
5) That product Development can lead to increase in sales

volume of a firm’s product.
5.2 SUGGESTIONS
Having undertaken a thorough study of the impact of
product development on consumer’s goods, it is deemed
necessary to give some useful suggestion and
recommendation, which would help in improving the quality
of consumer goods, hence, improving the standard of living
of the consumer.

Fathima Rolling Mills and other aluminum manufacturing

companies that produce consumer goods will find these
recommendations very useful. The recommendations are as
follows:
• Companies should engage in extensive research, to find

out the actual needs of the consumers going into
production. This will go a long way in preventing the
production of products which are not actually needed
because of its failure to satisfy the needs and wants of
the consumers;
• In addition, companies should carry our research on the

changing taste of the consumers periodically so as to
adjust the already existing product, to meet the
dynamic taste of consumers because failure to do so
will make the product obsolete;
• Since product development helps in reducing cost,

companies should engage in it regular interval so as to
cut down through value analysis strategy which is
segment of product development;
• Companies should ensure that Research and

Development Department as well as other sources
where new product ideas could be easily explored are
not neglected. Such report includes that from sales
persons who are always in touch with the consumers.
The salesperson also knows most of the competing

products and in addition they know the position of their

company’s product in terms of competition in the
market;
• A monitoring team should be set up to monitor the

activities of competing
products. By so doing, the company will know the

developments made on competing products thereby
adjusting its own product.
• Finally, in carrying out product development, producers

should ensure that the “new” product is an
improvement on the old one. Consumers should not just
be deceived that a product quality has improved while
in the actual sense, there is no alteration on the
product. If the consumers should find out that, they
have been deceived, the product might not enjoy any
repeat purchase, and this might affect the firm’s image
and brand.

5.3 CONCLUSIONS
In this research, the impact of product Development on
consumer’s goods was examined. The background has
revealed that most product die prematurely due to lack of
proper planning before the product is launched. In some
cases, the product is not properly defined, that is, the needs
of consumers are not properly met through the product
hence, they don’t enjoy repeat purchase. It appears that
philosophy of marketing concept is yet to be taken seriously,
most companies reckon with this concept in practice. In the
practical sense, the needs and wants of the consumers are
satisfied through the company’s product(s). For a product to
meet these objectives of satisfactions, it must undergo
product Development at regular intervals because of the
dynamic nature of consumer’s needs and wants that
changes over time.
The idea behind product development does not end in the

satisfaction of changing taste of the consumers, it also helps
in reducing the cost of producing the goods, and thus, selling

it to the consumer at reduced prices. This aspect of product

development helps company to have an edge over
competing products in terms of cost. It is true that most
consumers are skeptical about “new’ products because of
their limited purchasing power and the dubious attitude of
some producer who market poorly produced products,
however, a product that is properly produced will enjoy
consumers’ patronage. One point must be noted and that is
a good product may fail if the producer fails to create
awareness for the product. It is therefore imperative for
producers to make adequate promotion for new products.
Finally, it is worthy to note that product development is not
limited to once in a product’s lifetime. A product can be
innovated as many times as possible. This aspect of product
development is mostly done on consumers’ goods. This is so
because the cost in carrying out product development on
consumers good is not that high as the amount that will be
spent in carrying out development on industrial goods.
RECOMMENDATIONS
• Companies should engage in extensive research, to find

out the actual needs of the consumers going into
production.
• This will go a long way in preventing the production of

products which are not actually needed because of its
failure to satisfy the needs and wants of the consumers;

• Companies should carry our research on the changing

taste of the consumers periodically so as to adjust the
already existing product, to meet the dynamic taste of
consumers because failure to do so will make the
product obsolete;
• Since product development helps in reducing cost,

companies should engage in it regular interval so as to
cut down through value analysis strategy which is
segment of product development;
• Companies should ensure that Research and

Development Department as well as other sources
where new product ideas could be easily explored are
not neglected. Such report includes that from sales
persons who are always in touch with the consumers.
• The salesperson also knows most of the competing

products and in addition they know the position of their
company’s product in terms of competition in the
market;
• A monitoring team should be set up to monitor the

activities of competing products. By so doing, the
company will know the developments made on
competing products thereby adjusting its own product.
• Finally, in carrying out product development, producers

should ensure that the “new” product is an
improvement on the old one. Consumers should not just

be deceived that a product quality has improved while

in the actual sense, there is no alteration on the
product.
• If the consumers should find out that, they have been

deceived, the product might not enjoy any repeat
purchase, and this might affect the firm’s image and
brand.
Questionnaire

1. Does the company engages in product development?
a) Yes
b) No
2. How the company engages in product development, that

is, what type of product development does the company
engages in?
a) Total development
b) Incremental development
c) Combination of the two
d) Situation determines the type to use
3. Why the company engages in product development?

a) To improve product's performance
b) To fight competitors
c) To attract more customers
d) To increase company's profit
e) All of the above
4: When does the company engages in product
development?
a) At the introductory stage
b) At the growth stage
c) At the maturity stage
d) At the declining stage
e) Could be any of the above stages depending on the
prevailing
Circumstances
5: Has product development helped the company in
achieving its corporate goals?

a) Yes
b) No
6: If yes, how?
a) Increase in sales
b) Survival of the product
c) Fight competitors
d) All of the above
7: Has product development helped in reducing production
cost?
a) Yes
b) No
8: Has product development helped the company in
maximization of its profit?
a) Yes
b) No
9: What features of product make the product moves faster
in market ?
a) It is fast and easy to use
b) It is stylish
c) It is easy to clean
10: Is your customers satisfied with your product?
a) Very satisfied
b) Satisfied
c) Neither satisfied or dissatisfied

BIBILOGRAPHY
1. Lawrence o Marketing principles and Practice

2. Nickels Williams , Marketing Principles , prentice Hall
Inc , Engle wood cliff , new jersey 1986
3. Bell Martin L. Marketing Concept and strategy ( 3rd
edition ) Houghton Mifflin Coy Boston 1987
4. Bryan A Lukas O.C. Ferrell. The effect of Market
Orientation on Product Innovation
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The Impact of Product on Sales Volumes of Aluminum Products

Product development can be separated into three basic

T.K.M Centre for Higher Education ,Kollam 1

changing desires of the customers that consumes the

Throughout modern history, product development receives

attention. The underlying reason is that markets are highly

Marketing of new product goes through a period of growth,

T.K.M Centre for Higher Education ,Kollam 2

To sustain profit, new products/ services may be needed

product/ services have begun to fall.

The salient causes of product/ services lifecycles include:

o Instability of consumer demand

o Instability of competitive position.

Profit calculation relating to innovated products must be

R= (D. (p-c). L -(d.(p-c).L) – (d.(p-c).L2… dx(p-c)L)n

Where R= Total long term net profit

D= Average total units of sales per year

P= average sales per unit

C= Average cost per unit

L= Expected life of the product/ services in years.

The above formula means that the planned products may

As earlier mentioned, the opportunity to market a new

T.K.M Centre for Higher Education ,Kollam 3

capacity of an individual through which a new product, the

Adoption process involves the following stages:

• Awareness: This is when the consumer becomes aware

• Interest: Here, the consumer’s interest is stimulated to

• Evaluation: Here, the consumer decides whether to try

• Trials: At this stage, potential consumer tries the new

• Adoption: The consumer decides to make full and

Innovated products have consistently proved overtime

T.K.M Centre for Higher Education ,Kollam 4

The report is divided into six chapters. The first chapter

1.1 OBJECTIVES OF STUDY

 To analyze the turn over of sales volume

 To understand buying behavior of customers.

 To study about non availability of products affects

 To analyze how the activities of competitors bring about

1.2 SCOPE OF STUDY

The scope of this research is strictly within the framework of

1.3 SIGNIFICANCE OF STUDY

T.K.M Centre for Higher Education ,Kollam 5

The output of this thesis project will be of great value to

The output of this research will also be to the following

1) The organization takes as case study: The result and

research work will help product managers to see product

by bringing them out of the shell of just rolling out products

2) To the industry of which the case study belongs: This will

T.K.M Centre for Higher Education ,Kollam 6

1.4 STATEMENT OF PROBLEM

The statement of problem in this research work includes:

a. Investigating how lack of development will likely affect

b. Finding out whether lack of development by the firm will

c. Determining how the activities of competitors bring about

d. Evaluating the impact of product obsolescence on product

e. Finding out whether inadequate research about the needs

f. Evaluating the extent to which product developments have

g. Identifying the likely impact of consumers’ taste in

1. The time allowed for the study was not sufficient to

2. A small sample was selected and was restricted to

T.K.M Centre for Higher Education ,Kollam 7

Some did not respond properly to the questionnaire.