THE IMPACT OF NEW PRODUCT DEVELOPMENT IN AN ORGANIZATION
1.1 BACKGROUND OF THE STUDY
The subject (new product development) has influence the issue of sales which the researcher will like to assembly the sales of PAN product and services in Nigeria.
The company staff embark on advertising and research agencies, competitors, through conferences, exhibitions, and trade fairs, company’s marketing department and R and D department of the company or through any of the processes to prototype development and test marketing or commercialization in new product development that is ever done or actualized in the assembly nation (Nigeria) rather, but in France, therefore the sales here must be influenced by the cost of raw material source shipped for imported and along with the cost of production in the assembly. This is why sales or marketing strategy apply is more focus on industrial market and government (local state and federal). Majorities and less industrial market (buyer). All that involve are due to the technicalities and uniqueness of the product.
There may be no use attempting to add a new product to the existing range, if such a firm has no clear-cut objectives of what the new product is supposed to achieve. It is not however, within the scope of this research piece to make a comprehensive list of the various objectives of new products development as this varied widely from one firm to another.
By and large, the purpose of new product development of an unexplored market potentials which a company has identified the firm having armed itself life PAN with such objective may then proceed to other steps in new product development.
Companies that fail to develop new products are putting themselves at great risk. Risk of poor sales volume, space out of market into a small cubicle of not completely put out by competitors of the same product development strategies, initiatives and innovation conscious that is what that research is aiming to influence on sales volume. The existing products are vulnerable to changing customer needs and tastes, new technologies shortened product life circles and increased domestic and foreign competition once a company has carefully segmented the market, chosen its target customers, identified needs, and determined its market positioning.
It is better able to develop new products because new products development shapes the company’s future. Replacement products must be created to maintain or build sales of the organization.
Any enterprise that is profit oriented, can be actualize this through prompt sales volume realize, and that depend on the quality, core products, physical tangible, augmented products and the application of promotional mix/tools of the newly developed product.
It is also clear that customers want new products, and competitors will do their best to supply them.
In automobile company in general (especially PAN with it uniqueness and distinctive qualitative product) such cannot be less expected.
Automobile company Peugeot in developing a program to reach its intended market, must start with the product (new product) at hand for offering or service designed to satisfy the wants of the market segment. Therefore the executives must plan, develop and manage both individual (industrial users) product and industrial product assortment. This is not easy task as is shown by the large number of product failure in our economy.
1.2 STATEMENT OF THE PROBLEM
A new product can be conceived and developed over night, it takes time and effort to bring the new product idea into fruition. It also consumes a lot of money to bring a new idea generated into commercialized offer. A new product is expected to be profitable and successful but opposite is the case sometimes to different companies. Products sometimes decline and die natural deaths due to inexplicable circumstance.
The reaction of the company leads to new or modified products, such products are born out of either innovation or invention that is problem in process. Talking about new product failure in automobile industries, Peugeot 505 Evolution (Nigerian Innovation/Made) was face out 9 years ago.
1.3 OBJECTIVES OF THE STUDY
a) To examine the impact of new product development on sales volume in Peugeot Automobile Nigeria Limited (PAN), Kaduna.
b) Find out whether the product development policy of PAN is formulated to achieve high sales volume.
c) To find out the purpose of new product development programme of PAN Nigeria Plc, Kaduna.
d) To identify the constraints militating against PAN in new product development.
1.4 SIGNIFICANCE OF THE STUDY
The study will be beneficial to PAN Nigeria Plc Kaduna as well as other corporate organization in the formulation of their product policies and strategies.
The study will contribute to knowledge by adding to existing knowledge on new product development. The study will equally be a good reference material to students who may wish to undertake to similar research.
1.5 RESEARCH QUESTIONS
a) What are the impacts of new product development on sales volume in Peugeot Automobile Nigeria Limited Kaduna?
b) What kind of product policy does Pan embark in her product development?
c) What is the purpose of new product development programme of PAN Nigeria Plc, Kaduna?
d) What are the constraints militating against PAN in their product development?
1.6 SCOPE OF THE STUDY
The study will cover an empirical investigation into the impact of new product development on sales volume of Peugeot Automobile Nigeria Plc, Kaduna. To this end, the study shall identify the product policies of PAN as well as the purpose of new product development programme of PAN Nigeria Plc and the constraint militating against PAN in their product development data and information shall be collected from 2008 to date.
1.7 LIMITATIONS OF THE STUDY
Every research activity has its constraints. This particular one is however not an exception. Certain factors limit the process of writing this research work, which include:
1) Inadequate Research Materials: The research materials on this subject matter were few. The much relied library is filled up with out-dated books, which are of little relevance to current research. Moreover, the cost of new and up-dated materials are exorbitant which make them not readily affordable.
2) Lack of Cooperation of Subjects: Sourcing for information from source of respondents was not an easy task, particularly with regards to some information that are regarded as classified or highly confidential to the company. The degree of cooperation of staff of PAN was minimal.
3) Low Return of Questionnaire: In the process of gathering data, it was discovered that not all questionnaire issued out were returned. Some of them were also wrongly filled which means a great deal of relevant information was held back, and which could have enhanced the quality of this study.
4) Inaccessibility of Subjects: Another constraint encountered during the research is the inaccessibility to the inventory management manager who was not always on sit to provide desired data.\THE IMPACT OF NEW PRODUCT DEVELOPMENT IN AN ORGANIZATION