Abstract

This study was therefore designed to evaluate the planning and management
of new food product development in the Nigerian food industry.

Data were collected from 10 food companies in southwestern Nigeria using a

questionnaire and interview schedule. The results of the analysis showed that
these companies invested between zero and 2.5% of their annual turnover in
research and development (R&D), with four of them investing less than 0.5%.
Four of the companies use all seven phases (idea generation, screening of
ideas, concept development and testing, development of marketing strategy,
business analysis, product development and test marketing) of the new
product development process. Nine of the companies developed new
products through a multidisciplinary team of professionals, and the head of the
R&D department in most cases had direct access to top management. Most of
the innovations were incremental in nature.

The implication of these findings is that food companies need to adequately

fund R&D. They also need to be more active in all phases of the product
development process in view of the inter-relatedness and interdependence in
the activities involved. Adequate technical and production capability support
should also be provided so as to remain innovative.

Introduction
Rapid technological development, fast-changing consumer needs and tastes,
shortened product life cycles and intense market competition, among several
other factors, have made the adoption of corporate growth strategies more
pertinent.

The four components indicate the directions in which the organization moves
with respect to its current product-market scope. While market penetration
involves growth through increasing market share by serving existing
customers with existing products, market development entails seeking new
customers for existing products.
It is noteworthy, however, that these four strategies are not to be taken as
mutually exclusive in adoption but rather are complementary, particularly for
an organization that offers a wide product range. It is not unusual to find at
least two of the four being used concurrently.

In the continued quest for appropriate growth strategies, the function of new
product development has become formalized in most organizations as means
of maintaining competitive advantage. Its practice is virtually established as
the most viable tool for long-term corporate growth (Adamec, 1981).

The multifarious nature of this function has facilitated a large number of

contributions to the development of its theory and practice. The diversity of
views on what constitutes a new product and the many surveys on its
management have also broadened managers' understanding of what its
development entails and how it can be managed.

This paper reviews the concepts and management of new product

development, and also examines how these management techniques are
being applied in the Nigerian food industry for new product development.
Specifically, the pertinent questions for the study are:
1.
How active is the food industry in Nigeria in new product development?
2.
What are the nature and dimensions of such product innovations?
3.
How best are these activities being managed within the Nigerian
context?
4.
What organizational structure favours product innovation?
5.
To what extent does innovation contribute towards the commercial
prosperity of firms in the industry?
Section snippets
Concept of new product
The term ‘product’ ordinarily refers to anything that can be offered to someone
to satisfy a need or want. In its broader sense, however, it represents a set of
attributes assembled in an identifiable form, which provides a number of
benefits satisfying consumers' need. This definition takes care of both
products and services within a broadened marketing framework where
emphasis is on “customer satisfaction engineering” (Kotler and Levy, 1969).
Offers for the satisfaction of consumer needs are

Research methodology
This case study covered food companies in the southwestern part of Nigeria.
The focus on this geographical area is due to the fact that it has the single
largest concentration of food companies in Nigeria. The companies covered
by the study number about 50, which formally belong to the Food Beverages
and Tobacco sectoral group of the Manufacturers' Association of Nigeria
(MAN), as well as other small and medium food industries. However, a pre-
sampling survey revealed that about 20% of these

Investment in R&D
Of the 10 food companies sampled for the study, eight indicated that there
existed a formal organizational arrangement in the form of a functional R&D
department that attracted organizational resource commitment. The existence
of such an arrangement in most of the food companies is considered very
important for successful new product development efforts, a view shared by
reports from similar studies (Booz, Allen and Hamilton, Inc., 1982; Cooper,
1980a). Two had no functional R&D department

Conclusion and recommendations

 Following from the findings of this study, conclusions have been drawn as
follows.
1.
Most of the food companies are not active enough in research as this
reflects in low funding and inadequate staffing, resulting in poor new
product performance.
2.
The product is the core or the central strategy in new product
development and firms can seek differential advantage through it.
However, it is important that a very strong synergy exists between the
product and the firm's technical and product capabilities 

M.O. Ilori obtained the degrees of BSc in Chemistry and MSc in Food

Science and Technology in 1979 and 1983 respectively from the University of
Ife (now Obafemi Awolowo University), Ile-Ife, Nigeria. His PhD in Food
Technology was obtained from the University of Ibadan, Nigeria. He is a
Senior Research Fellow and Acting Director of the Technology Planning and
Development Unit, a postgraduate department which runs MSc and PhD
projects in technology management. His research interest is in the

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(1987)
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(1968)
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(1987)
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Abstract
This is the reality of the food industry, which must offer an ever greater product diversity to satisfy
functional specifications and market segments.
The purpose of this paper is to shed further light on supplier involvement in the product development
process and in the improved quality of processed food and soft drinks.

This involvement encourages cost reductions and shorter lead-times in the process of new product
development projects by providing supplier access to food technologies and their applications.

The theoretical approach of this study comprises two models: the new products development
process, and supply chain management.

A theoretical review serves as the basis for an analysis of supplier integration into the supply of
materials and components for the industrial customer. This study was conducted at two companies
operating in the nonalcoholic beverages segment (powdered refreshments). The choice fell on this
segment due to its strong demand for product growth and to the diversity of new products resulting
from their convenience (comfort). This survey focused on an analysis of the relationship between
ingredients suppliers and beverage manufacturers in the new products development process.

Keywords