ASSESSMENT OF NEW PRODUCT DEVELOPMENT AND MANAGEMENT IN NIGERIA: A STUDY OF UNLIEVER NIGERIA PLC
ABSTRACT
It is common knowledge to see a lot of organisational resources committed into product ideas that have not undergone proper research, especially market based research. As a result, it is either that the product fails out rightly or gains marginal success. No wonder we have so many of such product wasting in the market places begging for demand. When a product idea carries a weight of benefits to give to the market even the market will be anxious waiting for it to be launched. Besides proper research into developing a quality product, there is also the need for a wide range of management activities of the product from its conception to maturity or until it is being disposed such management activities include providing appropriate strategies for pricing, promotion, distribution as well as on-going support to customers who have purchased the new product pertinent to the above the study aimed at assessing new product development and management in Nigeria. However the following objectives were formulated: To determine the relationship between marketing research and new product development; To determine how new product development influences customer satisfaction and retention; To determine the impact of technology, skilled manpower on new product development; To identify critical factors, both marketing and otherwise for new product success or failure and To identify the impact of new product development on profitability of an organisation. The study had a population of
44. The descriptive survey design was adopted for the study while chi-square was used to test the hypotheses. The findings showed that there is relationship between marketing research and new product development. Also new product development influence customer satisfaction and retention. Furthermore technology, skill manpower have impact on new product development and finally there is relationship between new product development and profitability. The study recommended that firms should periodically evaluate their product so that they will be able to be ahead of their competitors and make profit.
TABLE OF CONTENTS
Title page – – – – – i
Certification – – – – – iii
Dedication – – – – – iii
Acknowledgements – – – – – iv
Abstract – – – – – v
Table of Contents – – – – – vi
List of Tables – – – – – vii
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study – – – – – 1
1.2 Historical Background of Unilever Nigeria Plc – – – 3
1.3 Statement of the Problem – – – – – 5
1.4 Objectives of the Study – – – – – 6
1.5 Research Questions – – – – – 7
1.6 Hypotheses of the Study – – – – – 7
1.7 Significance of the Study – – – – – 8
1.8 Scope of the Study – – – – – 9
1.9 Limitations of the Study – – – – – 9
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Introduction – – – – – 10
2.2 What Is “New” About New Product? – – – – 10
2.3 What Is A New Product Development? – – – – 11
2.4 What Is Product And/Or Service Management? – – – 12
2.5 Sources of New Product – – – – – 13
2.5.1 A new product can also come into being through three major processes 14
2.6 Product Classification – – – – – 16
2.7 Market Research and New Product Development – – – 18
2.8 The Scope of Market Research – – – – – 20
2.9 Research Institutes and Products Development – – – 23
2.10 New Product Planning – – – – – 23
2.11 Stages in New Product Development Process – – – 24
2.2.1 Introduction Stage – – – – – 31
2.12.2 Growth Stage – – – – – 32
2.12.3 Maturity Stage – – – – – 33
2.12.4 Saturation Stage – – – – – 33
2.12.5 Decline Stage – – – – – 33
2..12.6 Decline and Possible Abandonment – – – – – 34
2.13 Product Introduction Stage – Strategies – – – – 36
2.13.1 High Profile Strategy – – – – – 36
2.13.2 Selective Penetration Strategy – – – – – 37
2.13. 3 Preemptive Penetration Strategy – – – – – 37
2.13.4 Low Profile Strategy – – – – – 37
2.13.5 Growth Stage – Strategies – – – – – 38
2.13.6 Maturity Stage – Strategies – – – – – 38
2.13.7 Declining Stage – Strategies – – – – – 39
2.14 Consumer Adoption Process – – – – – 40
2.15 Management and Funding Of New Product Development – – 41
2.16 Sources of Finance – – – – – 50
2.17 Product Mix Strategies – – – – – 53
2.17.1 Product Packaging – – – – – 55
2.17.2 Product Branding – – – – – 55
2.17.3 Product Labelling – – – – – 56
2.17.4 Products Colouring – – – – – 56
2.18 Why New Products Fail – – – – – 57
2.19 Costs of Failure of New Products – – – – – 60
2.20 Corrective Measures against New Product Failure – – – 62
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction – – – – – 63
3.2 Research Design – – – – – 63
3.3 Sources of Data – – – – – 63
3.4 Data Collection Instrument – – – – – 64
3.5 Questionnaire Design and Administration – – – – 65
3.5 Sample Size\Population of the Study – – – – – 66
3.6 Sample Procedure – – – – – 67
3.8 Reliability of Instruments – – – – – 68
3.9 Data Treatment Technique – – – – – 69
References
CHAPTER FOUR
4.1 Presentation and Analysis of Data – – – – – 71
4.2 Analysis of Questionnaire – – – – – 71
4.3 Testing of Hypotheses – – – – – 89
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction – – – – – – 96
5.2 Summary of Major Findings – – – – 96
5.3 Conclusion – – – – – 97
5.4 Recommendations – – – – – 97
5.5 Suggestions for Further Studies – – – – – 99
Bibliography
Appendix
LIST OF TABLES
Table 4.1: Questionnaire Distribution – – – 71
Table 4.2.1 The Respondents Opinion on Age Bracket – – – 71
Table 4.2.2: Marital Distribution of Respondents – – – 72
Table 4.2.3: Educational Qualification – – – 72
Table 4.2.4: New product Development. – – – 73
Table 4.2.5: Companies Engage in Product Planning and Development in
Order to Increase and Expand Market Share. – – – 73
Table 4.2.6: Product Improvement is to Satisfy Consumers Changing Needs 74
Table 4.2.7: Important of Marketing and Sales Staff in New Product Development 74
Table 4.2.8: New Product are Develop to Make Replacement and Guarantee
Survival and Growth. – – – – 75
Table 4.2.9: New Product Development through Customer – – – 75
Table 4.2.10: Marketing Research a Key Role in New Product Development 76
Table 4.2.11: Product Development Contributes to the Long Run Profitability
of the Firm. – – – – – 76
Table 4.2.12: Test Marketing Reveal the Potentials of a Product before the
National Launch – – – – – 77
Table 4.2: 13 Wrong Pricing mar the Success of a Newly Developed Product 77
Table 4.2.14: New Product fail because of poor and Ineffective Planning in
Marketing, Advertising, Marketing Research, and Inadequate
Promotion. – – – – – 78
Table 4.2.15: Marketing Research before Knowing the type of Product. – 78
Table 4.2.16: Knowledge of Consumer’s Behaviour and New Products
Development – – – – – 79
Table 4.2:17 Many New Product are Involved in the Development Process 79
Table 4.2.18: Department Draws up the Specifications for New Product – 80
Table 4.2.19: Factors Consider in New Product Branding, Packaging and
Labeling Before Mass-Production – – – – 80
Table 4.2.20: Factors that Limit Your New Product Development Project – 81
Table 4.2.21: Product Development is an Expensive Venture – – 81
Table 4.2.22 Best sources of Rising Fund for New Product is by Ploughing Back 82
Table 4.2.33: Bank Credit is a Better Source for New Product Development 83
Table 4.2.24: Market Research and Optimum Fund For New Product – 83
Table 4.2.25: Decision on Funding of New Product and Top Management – 84
Table 4.2.26: Profit Status of a New Product and Maturity Stage. – – 84
Table 4.2.27: Political Instability and New Product Development – – 85
Table 4.2.28: Finance Department and New Product Development – – 85
Table 4.2.29: Finance Department in Involved in Top Management Meeting
and on New Product Project – – – – 86
Table 4.2.30: Company’s Sources of New Product ideas. – – – 86
Table 4.2.31: Appropriate Pricing for New Product – – – 87
Table 4.2.32: New Product Development Organizational Responsibility is
Vested – – – – – 87
Table 3.2.33: Management Members go Against New Product Development 88
Table 4.3.34: Condensed Outcome of Three Question for Testing Hypothesis 1 89
Table 4.3.35: Contingency Table of X2 for Hypothesis One – – 90
Table 4.3.3.36: Condensed Outcome of Two Question for Testing Hypothesis 2 91
Table 4.3.37: Contingency Table of X2 for Hypothesis Two – – 91
Table 4.3.38: Condensed Outcome of Three Questions for Testing Hypothesis 3 92
Table 4.3.39:Contingency Table for Testing Hypothesis Three – – 92
Table 4.3.40: Condensed Outcome of Three Questions for Testing Hypothesis 4 93
Table 4.3.411: Contingency Table of X2 for Hypothesis four – – 93
Table 4.3.42: Condensed Outcome of Two Question for Testing Hypothesis 5 94
Table 4.3.43: Contingency Table of X2 for Hypothesis Five – – 95
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
New product development process allows firms to deal with progressively intensive competition when facing challenges from rapidly changing market condition. Companies try to gain sustainable competitive advantages with continues innovation. These effort are critical for the companies because introducing a new product to the market is expensive and challenging due to acquiring new knowledge and technologies and implementing new processes.
