ABSTRACT
This study
investigates the impact of product modification on the market performance of
soft drinks, focusing on Seven-Up Bottling Company. The primary objective is to
analyze how altering product features influences sales, profitability, market
share, and customer loyalty.
Using a
descriptive research design, data was collected from a sample population
comprising salesmen, sales representatives, area managers, and supervisors. A
probability sampling technique was employed, resulting in a sample size of 133,
determined through Taro Yamen’s methodology.
Data analysis was
conducted using simple percentage comparison, with findings presented in
tabular form. The regression analysis revealed that 60% of the variation in
sales and profitability could be attributed to product modification, branding,
differentiation, and market segmentation. While buyer behavior exhibited a
significant but negative correlation, product branding, differentiation, and
market segmentation positively influenced sales and profitability. However,
marketing expenditure had a negative impact on profitability.
In summary, the
study concludes that product modification positively affects sales and
profitability in the soft drinks industry. Branding influences buyer behavior,
product differentiation fosters brand loyalty, and market segmentation enhances
customer satisfaction. Nevertheless, challenges such as poor product design,
intense competition, and high marketing costs persist.
Based on these
conclusions, several recommendations are proposed. First, the soft drinks
industry should prioritize product modification, branding, differentiation, and
market segmentation to stay competitive amidst a crowded market. Strategic
product differentiation can attract customer preference and streamline
marketing efforts. Additionally, market segmentation can lead to better
customer satisfaction and efficient marketing strategies.
In conclusion,
this study underscores the significance of product modification strategies in
driving growth and competitiveness in the soft drinks industry. By
understanding consumer preferences and leveraging branding, differentiation,
and segmentation tactics, companies like Seven-Up Bottling Company can enhance
market performance and sustain profitability despite industry challenges.
TABLE
OF CONTENTS
CHAPTER
ONE
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
Research Hypotheses
1.6 Significance of the Study
1.7 Scope of
the Study
1.8 Definition of Terms
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1
Concept in
Innovation/Modification
2.1.1 Diffusion and adoption process
2.1.2 Stages in Adoption Process
2.1.3 Problems
Involved In Innovation and Modification: The British Experience Richard Fothergill
2.1.4 Modification and Product Development
2.1.5
Modification and Growth Of Firms
2.1.6 Prospects
of Innovation In Seven-Up Company
2.1.7 Sources of Products Modification
2.1.8 Issues
in New Products
2.1.9 New Product
Development
2.2 Theoretical
Framework
2.3 Product
Innovation Supporting Theories
2.4 New Product Development Processes/Stages
2.5 A conceptual frame work depicting new product
development and consumer innovative behavior consumer innovative behaviour
2.6 Practical Issues
in New Product
Development
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.1 Research
Design
3.2 Area
of Study
3.3 Population
of the Study
3.4 Sampling
Plan
3.5 Sample
Size
3.3 Data
Sources
3.6 Administration
of Instrument
3.6.1 Questionnaires
3.7 Validity
and Reliability
3.8 Data
Analysis
3.9 Hypothesis
Testing
CHAPTER
FOUR
RESULTS
AND DISCUSSIONS
4.1 Introduction
4.2 Presentation
of Data
4.3 Hypothesis
Testing
4.4 The
Results and Interpretation
CHAPTER
FIVE
SUMMARY,
CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary
5.2 Conclusions
5.3 Recommendations
REFERENCES
CHAPTER ONE
INTRODUCTION
1.1
Background of the Study
The
goal of every business organization is to attract customers, sustain / retain
them and achieve its business objectives. If the above must be achieved by any
business firm, such firm must always know the strategies, approach or method to
adopt in modifying its products/services so as to continue to grow (Ubah, 2015).
Here,
the fundamental goal of every business organization is profitability and
survival. As far as business is concerned, business environment is very dynamic
and unpredictable. Hence, business managers try to adopt/adjust to the changes,
so as to remain in the business, even in case of unexpected situation(Nathan,
2003). Product modification is the future of any business and without a
continuous flow of new products; the company's system could probably die. To
modify means to make changes by introducing new ideas, strategy and methods
(Oxford Advanced Learners Dictionary 6th Edition). Therefore, modification can
be seen as a process of developing and introducing uniqueness in an existing
way of doing things, products or services. The theory and practice of
innovation is not a new concept. History records that a man like creature was seen
in Africa some million years ago, who used stone tools for most of his
activities (Ugwu, 2014).
This
creature, which was later to be referred to as homohablis (man who could
manipulate tools) was accomplished tools maker, he fashioned the tools he
needed out of stone. In this course of time, the early man affected the way of
living by improving on these tools through the process of modification. As can
be seen, modification started many years ago. However, the attraction and
attention is more complex and pervasive in nature with improvements in
technologies, increased awareness, better education which characterized the
present business environment. They have made it imperative for firms to
innovate or perish. New products are future of any business and without a continuous
flow of them, the marketing system will die. All things being equal, all
products have a life cycle which dictates that at some point their usefulness
will decline, innovation is an essential ingredient and its absence might lead
to the decline of enterprise itself.
Ubah
(2015) defined product modification as the process of fitting proposal product
to the requirements and opportunities of the market. Therefore, product
modification could lead to more business development, customer repeat
patronage, customer satisfaction and overall business growth and development.
1.2 Statement of the Problem
Given
the rapid changes in taste technology and competition, it becomes a company to
rely on its existing products and preferences are dynamic. Consumers and the
expectation of new and improved product might lead to the decline of the
enterprise itself, innovation carries some risks, the great risks usually
involved in coming up with something new. It is characterized by danger, many
be in wasting financial and human resources without achieving success. The
uncertainty arises as to whether the modification (new product) will survive or
die in introduction (Gwanna, 2010).
More
importantly, the cost in modification is usually high and under the pulse of
inflation and depressed real profit in Nigeria, currently the cost is obviously
higher. The study further adds that these basic facts is not withstanding the
merits that could be achieved from a carefully planned and executed exercise in
modification which by far outright these problems. But the success of a company
in new product development requires among other things the establishment of effective
organization of the managing, the planning and execution of the process (Arakji
and Lang, 2007).
1.3 Objectives of the Study
The major objective of the study is to analyze the effect
of product modification on the market performance of soft drinks product. The specific objectives are to:-
1.
determine the effect of product modification sales
performance;
2.
analyze
the effect of product modification of the profitability of seven-up;
3.
ascertain the effect of product modification on increase
in market share;
4.
determine the effect of product modification on achieving
customer loyalty.
1.4 Research
Questions
What is the effect of product
modification sales performance?
What is the effect of product
modification on the
profitability of seven-up
flavor drink?
What is the effect of product modification
on on increase in market share?
What is the effect of product modification
on achieving customer loyalty?
1.5 Research Hypotheses
H01:
Product
modification has no significant effect on sales performance.
H02:
Product modification has no effect on the profitability of
seven-up.
H03: Product
modification has no significant effect on increase in market
share.
H04:
Product modification has no
significant effect on achieving customer
loyalty.
1.6 Significance of the Study
The research on product modification
is important to the researcher because it enables the researcher to know how product
modification can encourage product acceptance by consumers.
Again, it would be invaluable for
those who may wish to pursue research in degree awarding institution and
colleges.
Also, the research work is also
important to the researcher because the market share of the modified product can be
obtained in
the course of the research.
On the other hand, the firm benefits
from this research work because its modified product is expected to attract
patronage. It also
increases the firms' product line for the society at large, creates room from
them to enjoy technology advancement.
1.7 Scope of the Study
The
scope of this research work is the extent the research work gets to, therefore,
the extent to which product modification increases the products that are
modified. It goes as far as comparing the level of patronage between the
modified products and those products that are not modified. The research work
will cover all the strategic departments of the seven-up plant in Aba using
questionnaire that would be issued to some sampled people from Eziama
environment.
1.8 Definition of Terms
Profitability:
The extent to which one can make profit.
Modification: The
development and spread
of new ideas and product.
Research:
It is a way of fining consumers to finding out consumers to problem.
Consumer
Behaviour: The act of individuals directly or indirectly involved in obtaining
and using economic good and services.
Consumer:
One who buys products.
Strategy:
This is a way of getting product different from other or a plan that is
intended to achieve a particular purpose.
Innovation:
Anything, product, service or ideas which is perceived by a person as being
new.
Decline:
A situation where a product has completed its final stage and began to
depreciate in quantity or quality.
Adopt:
A process of continuous use of an item. Firm: A firm is a unit of production.
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