THE IMPACT OF NEW PRODUCT DEVELOPMENT ON THE SURVIVAL AND GROWTH OF A FIRM
(A STUDY OF GUNINNESS PLC ABA, ABIA STATE
This research work was under taken to elict data in the impact of new product development on the survival and growth of a firm using Guinness plc Aba, Abia state as a case study. The research work is aimed at providing insurers to the problems facing the company like inadequate management of the company in the area of developing new product, the strength in spreading out their product to be available every where and inadequate distribution strategy used in the distribution of their products. It also enabled the researcher to find out the impact of new product development of the firm to the environment, to know the position of Guinness plc among its competitors. The researcher also find out that the management of the company especially in the new product development sector is not adequate and the company do not have the strength and enough capabilities in spreading the customer satisfaction. Further more, it finds out the impressive area in which the management, staff and consumers have made to make the company to grow and survive among its competitors through product innovation and /or new product development.
1.1 BACKGROUND OF STUDY
New product development is one of the avenues of enlarging the size of the products portfolio of any organization. A new product one that is new to the company, but not necessary new to the market where the general product may already exist. The introduction of truly innovative products is of race occurrences in Nigeria.
The reasons are that most of our manufacturers are following the strategy of import substitution.
New product is one which is either newly introduced to the market or a modified product. The newness of a product is seen from customers ot consumers point of view. Little wonder then Baker (1980:20) indicated that a new product could be considering anything which is perceived as such by the consumer, or with which the firm has no previous experience. New product therefore could be seen in the following light –existing product introduced to a new or new product introduced by either new or existing market belt new or existing market. The modification envisaged could be in package colour, features, sizes, etc. It could be pointed out that when a product has attained its decline stage, it is incumbent upon the management of that organization to see to the fact that a new product is developed to replace the one being phased out.
In this research study, six major strategic roles that companies set for the new product.
To maintain position as a product innovator
Defend a market share position.
To establish a way in a future market
To prompt a market segment
To capitalize on distribution strength
Generally, companies require complex organization arrangement for new product development of the familiar ones Booz, Alcen and Hamuton (1980) identified six categories and their news to the company and the market.
New products line, new product allows a company to enter an established market for the first time.
Improved in revision to existing products existing new product that are targeted to new market, the new segment. Cost reduction, a new product that provides similar performance of lower cost.
The impact of new product development on the survival and growth of the firm has made Guinness over the years to have brought innovation and deployed various marketing strategies, all in a bid to out place each other.
1.1 BACKGROUND OF THE FIRM
Guinness Nigeria plc is a Nigeria brewery founded in 1962. Gunner’s mid-strength, a low alcohol stout being test marketed in limerick.
Guinness Aba brewery was the former site of defunct public brewery which was abandoned for:
In movement 28, 2005, the Guinness breweries plc plants at Aba and Benin which were built by double decked have the advantage of strength and beauty Guinness result for the year ended 30th June 2009, show that the board of directors recommended a dividend of N 7.50 perannual may 26 2010 on the other hand, the strength of Guinness Nigeria plc lies in its foreign extra stock were the company is said to control. The main product is Guinness draught, a 4.1% dry stout is one of the most successful bear brand worldwide.
Insight of the Guinness family, the grandson of the original Arthur Guinness, bir beryamin Guinness, was lord major of Dublin and was created a baronet son Arthur, baron ardilaun (1840-1915), sold cont role of the brewery to sir Binyamin’s third son Eduard (1847-1927), who become 1st earl of Iveagh. Iveagh launched the company on the London stock exchange in 1886. up until then only other partners outsides of the Guinness of the Guinness family were members of the [purser family who helped run the brewery throughout most of the nineteenth century he, his son and great grandson, the 2nd and 3rd earks chaired the Guinness company until the 3rd earls death in 1992 . there are to longer any members of the Guinness family on the board.
1.2 STATEMENT OF THE PROBLEM
The research work is aims to organize or to provide answer to the problem facing the company and the problem is:
Inadequate management of the company in the area of developing new product.
Inadequate strength in spreading out their product to be available everywhere
The consumers are not much aware of the product availability.
Inadequate modernize machines available to the firm
Inadequate distribution strategy used in the distribution of the products
1.3 OBJECTIVES OF THE STUDY
The research study was designed to enable the researcher to determine it aim through the following
find out the impact of new product development of the firm to the environment.
Know the position of Guinness plc among its competitors
Find out why the company embraks on new product development
Find out the target customers for its product lines
Determine the extent of effectiveness of new product to its market.
1.4 RESEARCH QUESTIONS
This study was undertaken to carryout the following problems and possible answers to the following questions
How many area has Guinness product covered in your research?
How many distributors doyou have
What are the distribution rates of guineas product is Guinness product a viable option ot increase marketshare of breweries industry
Is price of the product favorable to affect revenue
What is the level of awareness of Guinness product
1.5 STATEMENT OF HYPOTHESIS
There are two types of hypothesis _null or negative hypothesis (HO) and alternative or positive hypothesis (hi) is the negative or no difference version of a hypothesis because it assumes that there is no different while alternative or position hypothesis is the proposition that may be accepted if the statistical null hypothesis is reject by the sample evidence.
HO: The impact of new product development does not innovate the company’s growth among its competitors.
Hi: The impact of new product development innovate the company’s growth among its competitors
Hi: The impact of new product development innovate the company growth among its competitors
Ho: New product development existence of the firm does not depend on the uniqueness of the firms product
Ho: New product development existences of the firm depend on the uniqueness of the firms product.
1.6 SIGNIFICANCE OF THE STUDY
The purpose of this research study is to know the impact of new product development to the growth of Guinness plc and the effect on the consumer and how the management embarks on it. The result of the study will enable me (the researcher) to understand the important of development new product and the extent to which new product affects the sales of Guinness plc Aba.
To my follow students and other researchers who may wish to conduct research on the attribute of product, particularly innovation it will useful materials as a result of this study will enable them understand the functions benefits, different forms of innovation and its effects on the firms sales volume.
To the society, the consumers will also benefit from this study as they come to a better understanding that now product development are innovated to suit their taste and are better presented.
1.7 SCOPE OF THE STUDY
For an in-depth of this research topic a brewery firms was used as a case study. Guinness products were used for the study. Infact, the company has introduced new product five times since it was introduced into the Nigeria market consumers in Aba Abia state of Nigeria were used to study consumer’s response to the new product development and the questionnaires was administered to the regional office of the company in Aba.
The research of the study would have used three to four manufacturing firms as a case study and the consumer response to the product innovation would have been consumer in and outside Aba.
This is because, Aba is not the only town having performance test of the product.
1.8 LIMITATION OF THE STUDY
The limitation of the study is the element of shortcoming that one often encounters when trying to get necessary information and materials for successful and completion of any research project.
The time given for the submission of the research report is very short in other words; it will not accommodate vast research of making references to their manufacturing firms as a case study.
This is because such vast research wills consumer a lot of time.
Secondary, the study was limited by inadequate resources. This indeed the extension of consumer response to the new products to the product outside Aba, abia state and the staff and management questionnaire administered to the staff and manages in the Aba regional office of the company would have gone beyond that if there was enoup finance to visit other regional office of the company.
The greatest limitation of this study is the unworthiness of the company relation manager to information necessary for the study. This is because they consider such information strategic which must not be revealed to the public for fear that must not be revealed to the public for fear that it may get into”wrong hand” who will use them against the company. Even at the regional office, firstly, I was seen as an agent from the competitor to spy the performance of the company.
Thought in the long run, I was assisted but the management was still afraid of being seen as sabotaging the company and so unable to supply information in their custody this constituted a very serious problem to the researcher, but it does invalidate the conclusion reached in this study.
1.9 DEFINITION OF TERMS
The following terms used in the chapter has been explained for better understanding of the study the terms are:
PRODUCT: Products are goods and services, tangible or intangible things that are product for the purpose of man satisfaction through exchange products are things produced during a natural chemical or industrial process.
DEVELOPMENT: This is the gradual growth of some thing so that it becomes more advance stronger etc.
NEW PRODUCT: This is the process of producing or creating something new or more advanced.
GROWTH: This means an increase in size amount or degree of something it also means an increase in the economic activities.
It means also means an increase in the economic activities.
It means also the process of growing physically, mentally or emotionally
FIRM: A firm is a business venture or company made for the establishment or storage of goods and services for the utilization of human consumption.
CUSTOMER: A person or an organization that buys something or patronizes the services of a shop/store, or business. It is also a person who buys goods or services and uses it for his/her satisfaction.
INNOVATION: This is the production of something new or introduction of new things idea or ways of doing something
COMPETITORS: These are firms that produce similar products. They are the in the same line of business
TERMS AND CONDITIONS
Using our service is LEGAL and IS NOT prohibited by any university/college policies
You are allowed to use the original model papers you will receive in the following ways:
1. As a source for additional understanding of the subject
2. As a source for ideas for your own research (if properly referenced)
3. For PROPER paraphrasing ( see your university definition of plagiarism and acceptable paraphrase)
4. Direct citing ( if referenced properly)
Thank you so much for your respect to the authors copyright.
For more project materials
Log on to www.grossarchive.com