ABSTRACT
This research, on causes of product failure in Nigerian market: A study of Gulder max is a very crucial study for the Nigerian Breweries Plc. To solve the research problem both primary and secondary data were collected. The research instruments used in collecting the data were questionnaires and oral interviews. The respondents consist of the personnel, distributors and consumers of the company’s product. In organizing and presenting the data collected tables, frequencies and percentages were used. The various research questions were answered. Data analysis gives some of the following findings. Most respondents tried and repurchased the product for more than three times and were able to evaluate it in terms of colour , taste and quality. Most respondents rated the colour to be repulsive unappealing, noisome etc. The respondents rating of the brand name Gulder max was that , it was a good name and captivating. Based on the findings the researcher recommends that the colour of the product should be toned down to be appetizing and attractive to consumers, if the product is to be re-introduced to the market. Consumer panel is to be used by the management if the product will be re-introduced. The company should carry out enough market research before introducing any product into the market. The conclusion of the study that Gulder max as a product failed in Umuahia due to its poor colour, taste and quality.
TABLE OF CONTENTS
TITLE PAGE - - - - - - - - - i
APPROVED PAGE - - - - - - - - ii
DECLARATION - - --- - - - - - - iii
CERTIFICATION - - -
DEDICATION
ACKNOWLEDGEMENT
TABLE OF CONTENT
LIST OF TABLES
ABSTRACT
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background Of The Study
1.2 Statement of the Problem
1.3 Objectives Of The Study
1.4 Research Questions
1.5 Significance of the Study
1.6 Scope of the Study
1.7 Limitation Of The Study
1.8 Definition of Terms.
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 What Is a Product?
2.1.2 What is a New Product.
2.2 Development Of Satisfactory Product Through Adequate Planning.
2.3 Reason for New Product Development
2.4 Product Development Strategies
2.4. 1 Proactive Product Development Strategy .
2.4.2 Reactive Product Development Strategy
2.5 Requirement For Successful New product
2. 6 The New Development Process
2. 6 . 1 Idea Generation
2 . 6 .2 Idea Screening
2. 6. 3 Business Analysis
2. 6. 4 Product Development
2. 6. 5 Test Marketing
2. 6. 6 Mass Production or Commercialization
2.7 Branding , Packaging And Labeling New Products
2. 7. 1 Branding Strategy
2. 7. 2 Packaging and Labeling
2. 8 Reason Why New Product Fail In the Market
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Research Design
3. 2 Area of the study
3 . 3 Population of Study
3 . 4 Determination of Sample Size
3.4.1 Sample Size For Consumers
1.5 Sampling Procedure
3.6 Selection and Constructions of Research Instrument
3 .7 Method of Data Analysis
CHAPTER FOUR
4.1 PRESENTATION AND ANALYSIS OF DATA
4.2 ANSWER TO THE RESEARCH QUESTION
CHAPTER FIVE
5.1 DISCUSSION OF FINDINGS CONCLUSIONS RECOMMENDATION
5.1.1 MAJOR RESEARCH FINDINGS
5.2.1 MINOR FINDINGS
5.2 CONCLUSION
5.3 RECOMMENDATION
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background Of The Study
In Nigeria and world wide ,the estimate as to the proportion of products which do succeed ranges from 2 to 20 percent. According to Ogwo, etal [1998] show that sometimes in the mid-sixties, an overseas fish canning firm was marketing her product in Nigeria. The paper wrapping of the fish can bore six pieces of fish were in each can. Sales could not pick up and research and inquires revealed that the consumer felt cheated. The product was withdrawn. Again in the mid-seventies a Nigerian food processing company wanting to exploit a prevalent situation of meat scarcity developed a form of synthetic meat that was supposed to taste and look like real meat ,for good stew and meat power the advertisement crowed. The product was both navel and timely, but it did not and could not replace the real thing in the minds and mouths of consumers. The product was therefore with drawn.
Furthermore, many organizations have sustained great losses due to mistakes in the product planning in addition to management processes. The Nigeria Breweries Plc has experience such a failure.
The Nigerian Breweries Plc, incorporated in 1946, is the pioneer and largest brewing company in Nigeria. It first bottle of beer, star larger, rolled off the bottling lines of its Lagos Brewery in June 1949, other breweries were subsequently commissioned by the company, including Aba Brewery in 1957, Kaduna Brewery in 1963,and Ibadan Brewery in 1982. In September 1993, the company acquired its fifth brewery in Abia state and in October 2003, its sixth Brewery sited at Umuahia in Abia. Umuahia Brewery is one of the largest brewery in Nigeria and one of the most modern worldwide. Operations at Umuahia Brewery were discontinued in 2004, leaving the company with five operational Breweries.
The company has a portfolio of high quality brand including star larger Beer [launched in 1949]; Gulder Ultimate lager Beer [1970]; Maltina [1976], which now has three varieties namely Maltina classic, Maltina strawberry and Maltina with pineapple; Maltina sip-it [2005], which was packaged in Tetrapaks; Legend Extra Stout [1992] and Amste l Malta [1994]. The company also relaunched Heineken Lager Beer into the Nigerian market in June 1998. In 2006 Gulder-Max lager Beer was launched in Nigerian market .Gulder –Max is an alcoholic beer drink. It is a brand extension of Gulder ultimate lager Beer.Though it has different feature from Gulder ultimate, it has 2.3% alcoholic content higher than Gulder ultimate lager Beer. Gulder ultimate has 5.2% alcoholic content while Gulder-Max has 7.5% alcoholic content, Nigerian Breweries,2011.
In this era of tight competition from domestic and global firms, the firms which do not come out with new products are putting themselves at great risk, because their existing products are prone to changing customer needs ,shortened product life cycles, new technologies and increased competition.
Despite years of research and huge capital being pumped into understanding the customer/consumers, making a launch successful is still a difficult task. The new product largely depends on the product quality and the marketing tactics of the firm, there are many occasions where the product failed miserably even after using the best technology and quality, the reason is that the product is not worth for the customers consumption. The prime factor for the product success is customer value. Value is what the customer thinks is value [Bojie,2004.].
Every product passes through a life cycle, hence the need for concerted effort ,strategic planning to address every stage of the life cycle of the product for maximum optimization. After a product launch, the sales usually pass through an introduction period then through a period of strong growth ,thereafter maturity and eventually decline. In the same vein, the profits go from negative to positive, peak in the growth or mature sales stages and then decline .A Company that faces decline in sales or profits has so many options to adopt. Among which are diversification, development of new products and improvement of existing ones. With present modern condition of competition in the Nigerian market , it is risky for a company to rely heavily on its existing product[s].Consumers want and expect a stream of new and improved products. competitors will do their best to meet these desire, hence it is a matter of necessity for a company to include it in its programmed the search for new products. There are three basic ways open for companies in introducing new products into the market. [Kolter, Armstrong, Saunders and Wong,1999].thus;
a. Through acquisition by buying a whole company.
b. Through internal research and development effort.
c. Through purchase of a new license to product someone else’s product.
So many companies in Nigeria face problems of product development which is characterized by dangers and uncertainties. The danger many be in wasting financial and human resources without achieving success in the production of the product. But they must develop new products but the odds weigh heavily against success with regard to commercialization of the products. These problems informed this research; ‘Causes of product failure in Nigerian market ;
A study of Gulder –Max produced by Nigerian Breweries Plc, Umuahia branch [Depot].
1.2 Statement of the Problem.
In a turbulent business environment like Nigeria, some producers have not realized that sales gain could come from wrestling market share away from competitors through intelligent marketing system or competitive marketing strategies. Research has shown that a good number of companies have designed ,produced and introduced their products into the market because they just had all it took to produce [Sunder and Bodei 1993]. They failed to understand that they must do effective marketing job given the conditions in the market place, such as changes in consumers buying patterns, product quality, price, promotion strategies and product distribution before new product introduction.
The market for lager beer is increasingly becoming very competitive, [Adeloye 1988]. This is marked by the heavy presence of many firms both national and multi-national that have mode broad into the market. This has initiated keen competition among the various lager beer companies. it is obvious that for any company to sustain its customer appetite, survive ,grow and increase its market share and profitability the need to innovate / develop new product that could satisfy this tide becomes paramount. Nigerian Breweries Plc , one of the leading companies in the lager beer drinks industry in Nigeria, In 2006 introduced a new product known as ‘ GULDER-MAX’ to sustain it market share. But after three years of the introduction of the product in Nigerian market ,it is no more in the Nigerian beer market. Consequent ,upon this the need to causes of product failure in Nigerian market becomes paramount, hence this study. The performance of the product was unsatisfactory. Most consumers preferred the other competing product. Why did Gulder-Max failed in the market? Was the failure as a result of product’s taste or quality? Why did consumers preferred other competing brand?.
1.3 Objectives Of The Study.
The general objective of the study was to understand the causes of product failure in Nigerian market. The specific objectives of the study are;
1. To find out why Gulder-Max failed in the market.
2. To identify why other competing brands is preferred to the product.
3. To recommend what can be done to remove the negative impact the product has created for the company if it is going to be reintroduced into the market.
1.4 Research Questions.
Having stated the objectives of the study the following research questions will form the framework for carrying out the study.
1. Why was it that most consumers did not like the colour of Gulder-Max?
2. Did consumers like the taste and quality of the product?
3. Did the product’s brand name appeal to consumers?
1.5 Significance of the Study.
It has been stated that up to 2 to 20 percent of product produced in this country do succeed. This study will be of utmost importance to manufactures of product because this will help them to improve the quality and taste of product. Equally, it will help them to have an accurate estimate of their market before producing their product. The study will equally help students who are carrying out research on the related topics to get in touch with available materials for effective carrying out of their studies. This study will equally be helpful to the general public because nobody wants to spend his / her money in or on a product that will not satisfy his or her need. This study will help to proffer solutions to the failures of product in Nigeria.
1.6 Scope of the Study.
The Nigerian Breweries Plc has many brands of alcoholic drinks in their product lines. However, due to the importance of the study, the researcher has choosen to carry out the research on one of their products Gulder-Max, due to the nature of the study the researcher will limit herself to the plant in Umuahia.
1.7 Limitation Of The Study
The researcher encountered the following constraints in carrying out this study.
Unco-operative attitude of the respondents ;Most of the respondents more importantly the employees of the case organization were not easily convinced to co-operate to release value data that could help the researcher carry out the study. But the researcher was able to convince them to release the data by letting them know that the data will be used only for academic purposes.
Another constraints encountered by the researcher was financial constraint ; this financial problem was solved by the researcher through the financial help from her family and friends giving financial assistance to carry out the research.
1.8 Definition of Terms.
In the course of carrying out this work, the researcher through it wise to define certain terms which may impose problems to layman in the field. The terms are ;
PRODUCT ;Is a good, idea , method , information , object or services created as a result of a process and serves a need or satisfies a want.
According to Glasser [ 1964 ] A product is any item whether it can be consumed, seen ,experienced , worn or used to make something else which costs something to provide at a given time and place and in certain units , which is designed to fulfill certain desires and for which people are prepared to pay a price that makes it worth the producers effort to produce it.
According to Kolter [ 1980 ] A product is anything that can be offered to a market for attention , acquisition , consumption they can be physical object, services , persons , ideas places or organizations. However a product is anything that an individual consumes and derives satisfaction from the consumption of the product.
PRODUCT LINE ; According to Anyanwu [1993 ] A product line is a group of products within a product mix that are closely related either because they function in a similar manner and sold to the same consumer groups are marketed through the same types of outlets or fall within given price ranges.
BRAND; According to the American Marketing Association Committee, A brand is a name , term , sign , symbol , design or some combination used to identify the product of one firm and to differentiate them from competitive offering.
CONSUMERS; A consumer may be defined as a person who makes use of the product or service either he is the actual buyer or not.
MARKET; Market can be referred to the total number of actual and potential buyer and sellers of a product and services. Equally to the marketer, a market can be said to be people with needs to satisfy the money to spend and willingness to spend it.
PRODUCT DEVELOPMENT; The creation of products with new of different characteristics that offer new or additional benefit to the customer. Product development may involve modification of an existing product or its presentation or formulation of an entirely new product that satisfies a newly defined customer want or market niche. Product Development involves the process of anticipating the needs of the market place initiating actions towards the identification and production of products / services which will best satisfy the wants.
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