ABSTRACT
This research project examines the factors that militate against introduction of a new product in the market on Enugu metropolises and possible solutions. Taking cognizance on the ever changing or dynamic market environment, the need for proactive marketing in forms and of innovative actions becomes paramount in order for these firms to survive and grow. The main objectives among other things were; To find out factors militating against the introduction of starlite into the beer market, to determine whether product quality, high price, poor timing and ineffective organizational arrangement were among factors that adversely affected the introduction of star lite. An in-depth literature review was carried out on related materials such as textbooks, journals; magazine and newspapers. Data were also sourced from respondents. Topman's formula has used to determine the sample size for consumers. Also Burley's formula was used for distributors while census survey was used for management/relevant staff. The research instruments used in sourcing data were questionnaire and oral interview. These data were also used in testing the three hypotheses formulated. The researcher discovered that a substantial part of the total market was satisfied with the taste and little sugar content of the product. The researcher also found out that poor timing and ineffective organizational arrangement militated against the initial successful introduction of starlite.
TABLE OF CONTENTS
Title page - - - - - - - - - - i
Dedication - - - - - - - - - - ii
Acknowledgment - - - - - - - - - iii
Table of contents
- - - - - - - - - iv
List of tables - - - - - - - - - - vi
Abstract - - - - - - - - - - - viii
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study - - - - - - - 1
1.2
Statement of the Problem - - - - - - 3
1.3 Objective of the Study - - - - - - - 3
1.4
Research Question - - - - - - - 4
1.5 Statement of Hypothesis - - - - - - - 4
1.6
Significance of the Study - - - - - - - 5
1.
7 Scope of the Study - - - - - - - 5
1.8
Limitations of the study - - - - - - - - 5
1.9
Definition of Terms - - - - - - - - 6
CHAPTER TWO
REVIEW OF RELAT-ED
LITERATURE
2.1 Introduction - - - - - - - - - 8
2.1.1 What Governors New Product Success - - - - - 9
2.1.2
Ways Companies Organize For New Product
Development - - 11
2.1.3
The New Product Development Process. - - - - - 12
2.2 Factors Militating Against the Successful
Introduction of A New
Product In the Market. - - - - - - - - 17
2.3 New Product Introduction and the Beer
Industry - - - - 19
2.4 Brief History of Nigerian Breweries - - - - - - 21
2.5 Brief History of Star Lite. - - - - - - - 22
2.6 Brand Extension - - - - - - - - - 23
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design - - - - - - - - - 27
3.2 Sources of Data - - - - - - - - - 27
3.3 Population of the Study - - - - - - - - 27
3.4 Sampling Techniques - - - - - - - - 29
3.5 Selection and Construction of Research
Instrument - - - 31
3.6 Administration of Research Instrument
(Questionnaire) - - - 31
3.7 Method Of Data Analysis. - - - - - - - 31
CHAPTER FOUR
4.0 DATA
PRESENTATION AND ANALYSIS
4.2 For Staff - - - - - - - - - - 38
4.3 Questionnaire Analysis for Distributors - - - - - 45
4.4 Testing Hypothesis - - - - - - - 47
CHAPTER FIVE
SUMMARY OF FINDING RECOMMENDATIONS AND
CONCLUSION
5.1 Summary of Findings - - - - - - - - 50
5.2 Recommendation - - - - - - - 50
5.3 Conclusion - - - - - - - - - 51
BIBLIOGRAPHY - - - - - - - - - 52
LIST OF TABLES
Table 4.1.1
Table 4.12 Response
on Whether Responded Are Aware of Starlite
Table
4.1.3 Respondent Rate on How
Respondents Came to Know About Starlite
Table4.1.4 Response Rate on Whether
Respondents Like The Product
Table
4:1:5 Response Rate on Why
Respondents Like the Product.
Table
4:1:6 Response Rate on Why
Respondents Dislike the Product.
Table
4.1.7 Response Rate on Whether
Respondent Were Satisfied With the Quality of the Product.
Table
4.1.8 Response Rate Whether
the Quality of the Product Affected
Respondents
Patronage during The First Time of Consumption.
Table
4.1.9 Response Rate on
Respondents View When Comparing Starlite with Other Competing Brands.
Table
4.1.1
Table
4.12 Response on Whether
Responded Are Aware of Starlite .
Table
4.1.3 Respondent Rate on How
Respondents Came To Know About
Starlite.
Table4.1.4 Response Rate on Whether
Respondents Like The Product.
Table
4.1.5 Response Rate on Why
Respondents Like the Product.
Table
4:1:6 Response Rate on Why
Respondents Dislike the Product.
Table
4.1.7 Response Rate on Whether
Respondent Were Satisfied With the Quality of the Product.
Table
4.1.8 Response Rate Whether
the Quality of the Product Affected
Respondents
Patronage during The First Time Of Consumption.
Table
4.1.9 Response Rate on
Respondents View When Comparing Starlite with Other Competing Brands.
Table
4.2.0 Response Rate for Staff
on Whether Staff Has Been Employed When Starlite As Introduced .
Table
4.2.1 Response Rate to Know
The Performance Of Starlite.
Table 4.2.2 Response Rate on
Positive Factors That Affected Starlite
Performance.
Table
4.2.3 Responds Rate on
Negative Factors That Affected Starlite
Performance
in the Market
Table
4.2.4 Responds Rate to Know
the Respondent Assessment of Price On Starlite When Compared To Other Brands
Table
4.2.5 Respondent Rate to Know
Whether Price Of Starlite Commensurate With The Quality.
Table
4.2.6 Response Rate to Know
Whether Timing Adversely Affects Starlite Performance When It Was Newly
Introduced Into The Beer Market.
Table
4.2.7 Response Rate to Know To
What Extent Timing Adversely Affected Starlite When Newly Introduced
Into the Beer Market.
Table
4.2.8 Response Rate On Whether
Organization Arrangement of the Company Affected The Introduction Of Starlite
As A New Product.
Table
4.2.9 Response Rated To Know
What Has Organizational Arrange of the Company Affected the Introduction Of
Starlite As A New Product.
Table
4.2.10: Response Rate on Whether
Organizational Arrangement of the Company Affected the Product During
Introduction
Table
4.1.11 Response Rate To Know
When Product Quality Affects the Introduction Of Starlite As A New Product
Table
4.3.1 Responds To Know How
Many Years Respondent have been Distributed For Nigeria Breweries Plc.
Table
4.2.2 Response to Know Whether
Respondents Deal On Starlite.
Table
4.3.3 Response Rate to
Determine Respondents View On the Performance of The Product When Newly
Introduced In The Market.
CHAPTER ONE
INTRODUCTION
1.1
Background
of the Study
The quest of a satisfying solution to
human needs and wants is old as human existence on the face of this planet
called earth. Clouded around us are pools of human wants and needs ranging from
physiological need such as food, clothing and shelter to social needs.
The search for solutions was initially
based on self-effort due to the primitive state of man. But as our society
advanced more sophisticated means of solving or satisfying these need were
discovered. This has led to the creation/development of need satisfying product
by business entities or companies whose existence and survival hang solely on
the performance of these products whether tangible or intangible.
Products like human life pass through
phases or spans of life which Philip Kotter (1997) called product life cycles.
Introduction, growth, maturity and decline. In view of the fact that every
product passes through these stages more importantly the maturity and"
decline the need for a continuous development or innovation of new product becomes
dispensable for the continual growth, survival and profitability of the company
and organization.
New product development has become crucial
aspect of firms marketing management. These companies develop new products for
the following reasons:
·
To replace those products
that have become outdated in the eyes of the consumers/customers to satisfy the
changing needs for the consumers and more still to contain competition without
resorting to price competition.
·
Reason enumerated by
authorities for developing new product includes the need to sustain a high
level of sales for the company. This could arise from the cyclical nature of
consumer patronage of each product and threat of obsolescence that hangs over
most products and consumer increase sensitive and selection in their choice of
products. Besides most companies particularly large ones are eager to introduce
new products into the market for image making purpose. On the other hand, most
companies may find that' considerable resources which needs to be put to
fruitful and profitable uses are lying idle, thus the only rational behavior,
open to the company is to develop new products.
·
Suffice it to say that
many companies are increasingly beginning to appreciate the important if the
new product development because of its implication on the contained survival,
growth, profitability and the existence of competition. Despite this, lots of
new products introduced and lunched into the market could not sustain and
satisfy consumer's appetite.
·
Estimate as to the proportion
of new products which succeed range is from 2 to 20 percent. Various reasons
have been adduced as to why product failed in the market, the following reason
were adduced although an idea may be good, the market size may have to
overestimated perhaps the actual product was not designed as well as it should
be. It may be a "me too" product which is not better than products
that are already established in the market' place. Or maybe neatly positioned
in the market, price too high or advertised and despite poor marketing research
findings. Sometimes the costs of product development are higher than budgeted
and sometimes competitors fight back harder than expected. In other to provide
empirical endure to justify or approve the above reasons, this study will
critically investigate the factors.
1.2
Statement of the Problem
The market for beer industry is
increasingly becoming very competitive. This is marked by the presence of many
firms/companies both multi-national and national that has made a road in the
market. This has initiated keen competition among the various food beverage
companies. It is obvious that for any company to sustain 'its customer's
appetite, survive, grow and increase its market share and profitability the
need to innovated/develop new products that could satisfy this tide becomes
paramount.
Nigerian Breweries Company" one of
the companies in the food/beverage industry occupies a dominant position in the
market with its varieties of beer brands. In order to sustain its market shares
the company recently introduced a new product known as "STAR LITE" to
its brand of products. Since the introduction of the product is believed to
have enjoyed some, degree of customer acceptance and preference. However, the
performance still leaves much to desired, as the sales 'turnover of the product
(Starlite) rather than been on the upward trend has been on the downward trend.
Consequent upon this, the need to
investigate some of the factors that militate against successful introduction
of new products becomes inevitable. This critically evaluated the factors
militating against the successful introduction of new products in the market
with particular focus in Starlite by Nigerian breweries plc.
1.3 Objective
of the Study
The main objective of this study among
other things includes.
I.
To determine the factors
that militates against the introduction of Starlite beer industry.
II.
To determine whether the
product concept about Starlite reflects the true nature of the product and need
of the market.
III.
To determine whether the
assessment of the market potential and timing of the product lunch Starlite was
adequately carried out.
IV.
To determine whether
Starlite -product brand was test marketed before it was commercialized.
V.
To determine whether the
test marketing of Starlite gained consumer acceptance.
1.4
Research Question
I.
To
what extent did these factors militate against the introduction of starlite
beer industry?
II.
To what extent did the
product concept about starlite reflect the true nature of the product and the
need of the market?
III.
What determines the
extent of the market potential and timing of the product lunch?
IV.
Was the starlite product
brand tested before it was commercialized?
V.
Did the text marketing of
star lite gained consumer acceptance?
1.5 Statement of Hypothesis
HO1:
product quality has not adversely affected the introduction. of startlite as a
new product
HO2:
poor timing did not adversely affect the introduction of starlite as new
product into the beverage drinks market.
HO3:
ineffective organizational arrangement did not adversely 'affect the
introduction of starlite as new product.
1.6
Significance of the Study
This study is not a mere academic
exercise. It will be of great benefit of the following:
Firstly, the Nigeria breweries Plc will
benefit immensely from this study because it will
Secondly, the study will be of great
benefits to industries and the Nigerian economy. This stems from the fact that
new product development has been discovered to be the key factors that
guarantees industrial and economic growth as Druccer (1997) apparently recognized it when he said "A business
enterprise has only two basic functions, marketing and innovation.
Thirdly, the study will be of immense
benefit to customers of Starlite drink as adequate measures that will be
recommended, which will go a long way to boost the satisfaction and value
delivery ability of Nigerian breweries plc.
Above all, the study will not only be of
benefit to the researcher but also the reader, as adequate knowledge and
understanding will be gained from the information contained in the study of
Starlite.
1.7 Scope of the Study
This study will only investigate the factors
militating against Starlite beer by Nigerian breweries company pic. The study
is, limited /\0 mile corner Enugu metropolis .
1.8
Limitations of the study
It is important to know that there were
limitations imposed by the containing variables which include:
a. Finance
b. Time
A. Finance:
Finance was a major constraint that hampered the study. This was due to the
fact that the research has no source of financial support, besides his parents
and relative. To this end the research had difficulty in coping with the
financial demands of the study.
B. Time:
this is another very big or major constraining variable that limited the study.
This was due to the fact the study was carried out as the peak of lectures and
other academic activities.
Consequently, the researcher had
difficulties in meeting an appointment with respondents.
1.9
Definition of Terms
The following terms used in the study
should be taken to mean the following:
a. Product:
Product according to Umeh and Ude Umanta (2004) is anything that can be offered
to a market for acquisition. It includes any physical object (e.g cars)
service (Lecturing, entertainment)
personalities, places, organization and ideals.
b. Innovation:
According to Norbert M. innovation involves creative response to an
modification of existing one to serve a need better.
c. Industry:
Industry according to oxford dictionary (1996:.451) is the whole firms dealing in
the same kind of product.
d. Marketing potential:
according to Philip Kotter (1993) market potential is the total number of
potential customers that can be served within the industry.
e. Product life cycle:
According to Umeh and Ude Umanta (2002) product life cycle concept conforms to
sales history of successful new product (3). After the period of introduction
the product experiences rapid growth in sales during the growth stage.
f. Utility:
Utility by definition is the amount of satisfaction that is been derived from a
product or services at a particular time. Also according to Umeh and Umanta
utility is the consumer's estimate of products over all capacity to satisfy his
needs.
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