ABSTRACT
Product innovation has contributed immensely in the performance of many corporate organizations in Nigeria. It is based on this that the study was designed to investigate the effect of product innovation as an imperative for corporate effective and efficient performance using PZ Nig. Plc. and Unilever Nig. Plc. as study areas. The study adopted a sample size of 250 out of a population of 700; and questionnaire was used for data collection. Spearman correlation was used to test the hypothesis which states that product innovation does not enhance corporate performance. However, this hypothesis was rejected and implied hypothesis was accepted. Therefore, the research concluded that product innovation not only enhances corporate performance, but also sustains competitive advantage in corporate organization. Thus, the adoption of innovation strategies, concepts and theoretical framework should be adopted in the corporate organization.
TABLE OF CONTENTS
Title page - - - - - - - - - i
Declaration - - - - - - - - - ii
Certification - - - - - - - - iii
Dedication - - - - - - - - - iv
Acknowledgement - - - - - - - v
Table of Contents - - - - - - - - vi
List of Tables - - - - - - - - ix
List of figures - - - - - - - - xi
Abstract - - - - - - - - - xii
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study - - - - - - 1
1.2 Statement of the Problem - - - - - - 3
1.3 Objectives of the Study - - - - - - 4
1.4 Research Questions - - - - - - 4
1.5 Research Hypotheses - - - - - - 5
1.6 Scope of the Study - - - - - - - 5
1.7 Significance of the Study - - - - - - 6
1.8 Limitations of the Study - - - - - - 6
CHAPTER TWO
LITERATURE REVIEW
2.1 Innovation Defined - - - - - - 7
2.2 Sources of Innovation - - - - - - 7
2.3 Types of Innovation - - - - - - 9
2.4 Factors that helps Innovation to Flourish - - -
2.5 The Influence of Innovation on the Development of PZ and
Guinness Nigeria Plc. - - - - - 13
2.5.1 Definition of Product - - - - - - - 14
2.5.2 Classification of Products - - - - - 16
2.4.3 Product Life Cycle - - - - - - - 22
2.5 New Product Development - - - - - 25
2.5.1 New Product Development Process - - - - 25
2.6 Marketing Significance of New Product Development - 29
2.7 Reasons Why New Product Fail - - - - 30
2.8 Characteristics of Successful New products - - - 31
2.9 Product Introduction Pressure - - - - - 31
2.9.1 Stages in Adoption Process - - - - - 33
2.9.2 Adopter Categories - - - - - - 35
2.10 Factors that Influence the Rate of Adoption - - - 38
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design - - - - - - - 40
3.2 Study Area - - - - - - - - 40
3.3 Population of Study - - - - - - 41
3.4 Sampling Plan - - - - - - - 41
3.6 Data Collection Procedure - - - - - 42
3.6.1 Instrument - - - - - - - - 42
3.6.2 Sources of Data - - - - - - - - 43
3.6.3 Validity and Reliability - - - - - - 43
3.7 Data Analysis and Hypothesis Testing - - - 43
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Some Statistical Explanation - - - - - 44
4.2 Testing of Hypotheses - - - - - - 59
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of Finding - - - - - - 62
5.2 Conclusion - - - - - - - - 63
5.3 Recommendations - - - - - - - 64
References - - - - - - - - - 65
Questionnaire
LIST OF TABLES
Table 4.1: Based on allocation of the questionnaires and returns - 45
Table 4.2: Based on the sex of respondents - - - 46
Table 4.3: Based on the age of respondents - - - 46
Table 4.4: Based on the year of service of the respondents - 47
Table 4.5: Based on the present position of the respondents in the
Company - - - - - - - 48
Table 4.6: Is your company profit oriented? - - - - 48
Table 4.7: Based on respondents answer to methods of new idea open
to their company - - - - - - 49
Table 4.8: Based on respondents answer to effective marketing strategy
account for the success of the marketing innovation 49
Table 9: Based on the respondents answer to the implementation of
the company’s product policies - - - - 50
Table 4.10: Based on the motivation of employee sales force team - 50
Table 4.11: Can a defect in a product result to it’s failure? - 51
Table 4.12: What strategies does your company adopt in locating
target markets? - - - - - - 51
Table 4.13: Based on the product failure due to lack of product
meaningful uniqueness to consumers - - - 52
Table 4.14: Is Foreign Products better than locally produced one? - 52
Table 4.15: Based on the factors affecting the demand for the
company’s product - - - - - 53
Table 4.16: Based on the bases of the product planning policy - 54
Table 4. 17: Is your company a product leader or follower? - 54
Table 4.18: Is the reputation of the company responsible for the
success of a product? - - - - - 55
Table 4.19: Should promotional activities continue even when
demand exceeds capacity? - - - - 55
Table 4.20: Is the satisfaction of the consumer a social and economic
justification of a company existence - - - 56
Table 4.21: Is the same marketing channel with your competitors
desirable? - - - - - - - 56
Table 4.21: Does your company test the market before a new product
is introduced - - - - - - 57
Table 4.22: Is the company affected by government policies? - 57
Table 4.23: Is your company profit affected by the present
economic condition? - - - - - 57
Table 4.24: Are there other companies producing similar product
located within the same area with yours? - - 58
Table 4.25: If yes to Qn. 24, How does their activities affect your
operations? - - - - - - - 58
LIST OF FIGURE
Fig. 2.1: The three levels of a product - - - - 14
Fig. 2.2: Degree of tangibility - - - - - 17
Fig. 2.3: Types of users - - - - - - 19
Fig. 2.4: Product life cycle - - - - - - 23
Fig. 2.5: Adoption process - - - - - - 34
Fig. 2.6: The new product Adopter’s innovations - - 36
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Business organization operates in a dynamic and competitive environment in which nothing but change is certain, given the rapid changes in consumer taste, technology, competition and demand. The organization needs to respond positively considering their objective and target.
Product innovation (new product) means the original product, product improvement of product modification and/or new brands that the firm develops through its own research and development efforts.
Product development is the phase in which the organization finds out if it is technically feasible to produce the product and if it can be produced at cost low enough to make the final price reasonable Ikechukwu (2012). To test its acceptability, the idea of concept is converted into a prototype or working model. The prototype should reveal tangible and intangible attributes associated with the product features and intangible aspect must be linked to the wants in the market place.
Whether or not product is new depends on how the intended market perceived it. if buyers consider it to be significantly different from competitive products in some relevant characteristics (such as appearance or performance), then it is indeed a new product. The modification envisaged could be in package, colour, features, size etc. It could pointed out that when a product attained it’s decline stage, it is incumbent upon the management of that organization to see to the fact that a new product is developed to replace one being phased out.
However, throughout the stages of product innovations and marketing diversed strategies are adopted to affect not only profitable customer satisfaction but long term competitive growth (Thomson and Strictland, 2006).
From the foregoing marketing of innovations involves strategic thinking so as to ensure that suitable value and supply chain management are designed. This is to enhance delivering superior value to a target market. Anyanwu (2003) contributed that efficient customer service delivery can be integrated with profitable innovations in marketing through:
a) Quality product;
b) At relatively cheap price and;
c) With efficient customer service.
Be it as it may, marketing of innovations and the adopted of marketing strategies with super combination of marketing mix variables to achieve profitable customer satisfaction and competitive advantage as well as long term growth in the present day global market is a difficult task to undertake by marketers. This is because there are numerous problems that constrain the realization of the above marketing objectives. This research is poised to investigate into the problems to be examine below.
1.2 Statement of the Problem
In the market place it is a known fact, the consumer tastes and preferences are not static but dynamic, most firms fail to understand this. A key factor to customer retention is customer satisfaction.
Satisfaction of the consumer comes through continuous product innovation, but most products stay too long in the market and become obsolete thus making their sales volume and market share to be reduced by competitive products.
Therefore, the aim of this research work is to provide answers to the problem facing the company and problem is:
- Inadequate management of the company in the area of developing new product.
- 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 major objective of the study is to examine the impact of product innovation in the marketing performance of consumer goods, using PZ and Unilever as good examples. The study also seeks to achieve the following specific objectives:
1. study the effect of marketing strategy in enhancing the success of innovations in the competitive market;
2. evaluate the negative effects of product defects in the failure of new product;
3. ascertain the effect of sales force motivation on employee performance relative to the rate of adoption of innovation in the competitive market;
4. make recommendations based on findings.
1.4 Research Questions
The following questions were designed to guide the study:
i) Does product innovations enhance the market performance of consumer goods in competitive market?
ii) Does product innovation and strategy lead to the success of a product/
iii) Can product defect lead to product failure in the consumer’s market?
iv) Does sales force motivation lead to employee performance and the related rate of product adoption in the competitive market?
1.5 Research Hypotheses
The following hypotheses were stated.
H01: Product innovation and strategy is not significant in the success of the product in the competitive market.
H02: Product defect is not significant in the failure of a new product in the competitive market.
H03: There is no relationship between sales force motivation, employee performance and rate of product adoption in the competitive market.
1.6 Scope of the Study
For the in-depth of this research topic two (2) companies (PZ Nig. Plc and Unilever Nig. Plc.) were use as the study areas these companies have introduced new products several times since they were introduced into the Nigerian 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 researcher of the study would have use three to five manufacturing firms as the study area and the consumer response to the product innovation would have be consumer in and outside aba. This is because Aba is not the only town having performance test of the product.
1.7 Significance of the Study
The purpose of this research study is to know the effect of product innovation and development to the growth of PZ Plc and UNILEVER Nigeria Plc, and the effect on the consumer and how the management embarks on it.
The result will enable me (the researcher) to know the importance of product development and the extent to which new product affects the sales of PZ and unilever
Nigeria Plc, Aba.
1.8 Limitations of the Study
Most studies suffer from limitation of resources such as time and money. Therefore, the research work has to be completed within a given time frame. Limitation in financial resources also limit the geographical courage of the study, this has led to the limitation in the number of companies selected in this study to be two (PZ Nigeria Plc. and Unilever Nigeria Plc.). It has also informed the restriction of the geographical area to be covered to Aba, Abia State only.
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