ABSTRACT
This
research examined The Effect Of Product Planning And Development In The Growth
Of Organisation with special reference to Smithkline Glaxo Nigeria Plc. The research adopted survey research design.
Data were gathered through primary source with the aid of a well-structured
questionnaire. Simple random sampling technique was adopted in the selection of
sample, this was used to eliminate biasness in the selection process of the
respondents.
Data garnered were presented on table using
percentage and the formulated hypotheses were analysed with the used of
Chi-square statistical method. The result of the analysis shows that appropriate product planning and development have helped
in the achievement of corporate objective, The increase in the market share of
an organization’s product was Due to an effective product planning and
development, Proper product planning and development has helped to Prevent a heavy
unbearable loss to the firm, appropriate product planning and development has
helped positively in the achievement of profitable sales operation in an
organization.
Based
on the conclusion of the analysis recommendations were proffered to the staff
and management of Smithkline Glaxo Nigeria Plc.
TABLE OF CONTENT
PAGES
Title page 1
Abstract 2
Table of content 3
CHAPTER
ONE:
1.1
Introduction 5
1.2
Statement of the problem 6
1.3
Research question 7
1.4
Aim and Objectives of the study 7
1.5
Significance of the Study 8
1.6
Research Hypotheses 8
1.7
The Scope and Limitation of the Study 10
1.8
Definition of Terms 10
1.9
Historical Background of Smithkine Glaxo
Nigeria Plc 13
CHAPTER
TWO: REVIEW OF RELATED LITERATURE
2.1
Introduction 16
2.2
What is Marketing? 16
2.3
The Marketing Concept 17
2.4
What is a Product? 20
2.5
Classification of a Product 23
2.6
The Meaning of New Product 24
2.7
New Product Dilemma 25
2.8
New Product Development Concerpt 25
CHAPTER
THREE: RESEARCH METHODOLOGY
3.0
Research Procedure/Source of Data 37
3.1
Research Design 37
3.2
Methods of Data Collection 38
3.3
Population Size 38
3.4
Description of Research Instrument 38
3.5
Questionnaire
Distribution and Collection Instructions 39
3.6
Data Analyst
Method and Coding Procedure 39
3.7
Question Design 40
3.8
Reliability of the Data 41
CHAPTER
FOUR: ANALYSIS, INTERPRETATION AND PRESENTATION OF DATA
4.0 Data Presentation and Analysis 42
4.1
Presentation of Data 42
4.2
Data Analysis and Interpretation 43
4.3
Test of Hypothesis 50
CHAPTER
FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1
Summary 63
5.2
Recommendation 64
5.3
Conclusions 64
Bibliography 67
Questionnaire 69
CHAPTER ONE
1.1 INTRODUCTION
Thus, it is a common
saying “failure to plan is planning to fail”. There is nothing on earth that
does not need appropriate planning. If such thing determined goal must be
achieved. Appropriate planning is one of the most important aspects of a
product life cycle. As it is proper for
somebody who intends to build a house, to draw a plan of the house whether such
building will be a two bedroom flat or bungalow or a multirooms type. He has to decide within himself and also make
a rough sketch of the total cost of every thing for such a house. As such, it
is quite very important for an organization intending to develop a product to
make a necessary and adequate planning for such product.
Considering the
multi-dimensional nature of consumers demand, it is therefore an essential for
an organization to carry out all necessary pre-product development before
introducing a new product to the market and determine the appropriate time to
supply the product so as to regulate the product in the market.
Examining the intense
competition in must industries today. Companies without new product ideas and
new product development strategies are exposed to great risk of new product or
existing product decline by way its product lifecycle and the outright closure.
The success of new products is always constraints
by the following factors:
1.
Shortage of
important new products ideas in certain area.
2.
Capital of a
new products development
3.
Time span
completion
4.
Social and
Governmental constraints
5.
Cost
implication of a new products development
The scope of appropriate product planning and development
includes making decision in the following area: -
A Which
product should the company produce?
B. Should
the company market more or fewer product?
C. What
brand, package and label should be used for each product?
D. How
should the product be style, design and in what sizes, colors and materials
should it be produced?
- What new
users are there for each product?
- How
should the product be priced?
1.2 STATEMENT
OF THE PROBLEM
The purpose of this research is on the effect of
product planning and development in the growth of an organization. The research
is to:
1. Determine the importance of appropriate product
planning in the market and the product constraint for failure to plan product
before introduced into the market.
2. Establish the stages a product has to pass through
before such product is developed and introduced into the competitive market for
consumer’s patronage.
3. Find out the approaches SmithKline Glaxo Nigeria
Plc uses for its product planning functions and to ascertain the associates
cost and strategies such approaches.
4. Reveal the reasons some products were unable to
thrive in the market and thus to Achieve the pre-determined goal of the product
manufacture i.e. profit
5. Determine the range of products manufactured by
SmithKline Glaxo Nigeria PLC and to know the level of market acceptance of
their products.
1.3 AIM
AND OBJECTIVES OF THE STUDY
1. The aim of this project is to examine the reasons
why some company’s products do not last longer in the market, while in the
midst of other similar products, which exist in a stiff competitive market.
2. To examine the various marketing strategies
currently been used by the various pharmaceutical companies for the new
products.
3. To analyze the extent of effectiveness of these
strategies in terms of consumers satisfaction and patronage.
4. To evolve and effective marketing strategy for the
new product that will ensure increase patronage.
5. To analyze problems encountered by marketers.
1.4 RESEARCH QUESTION
a)
What is the degree
of difficulties the company is likely to face in an attempt to ensure a
continuous innovation as a means of preventing products absence from market and
the invention of new products line?
b)
Is the
company able to determine the income of the Nigeria consumer so as to increase
the rate and the market acceptance of new products?
c)
To what
extent can the company generate sufficient data necessary for the effective
appropriate product planning and development process in order to enhance its
feasibility and profitability?
1.5 RESEARCH HYPOTHESES
Hypothesis can be defined as a tentative statement
about the relationship that exists between two or more variables and such
statement are conjectured that must be validated.
There are two types of hypothesis, which are null
hypothesis and alternative hypothesis.
The null hypothesis, which is null hypothesis, is
denoted by (Ho) while the alternative hypothesis is denoted by (Hi).The
alternative hypothesis is accepted while the null hypothesis indicates rejected.
The
research hypothesis is thus:
1. Ho: Appropriate
product planning and development have
not helped in the achievement of
corporate objective
Hi: Appropriate
product planning and development have
helped in the achievement of corporate objective
2. Ho: The increase in the market share of an organization’s product was not due to an effective product
and planning and development.
H: The increase in the market share of an organization’s product was Due to an effective product
planning and development
3.
Ho: Proper product planning and
development has not helped to prevent a heavy unbearable loss to
the firm.
Hi: Proper product planning and
development has helped to Prevent a heavy unbearable loss to
the firm.
4.
Ho: Appropriate product planning
and development has not helped positively in the achievement
of profitable sales operations in an
organization.
Hi Appropriate product planning
and development has helped positively in the achievement of
profitable sales
operation in an organization.
1.6 SIGNIFICANCE OF THE STUDY
1. The study is to determine the degree of the
difficulties the company is likely to face in an attempt to ensure a continuous
innovation as a means of preventing products absence and the invention of a new
product line.
2. The study is meant to provide effective and
appropriate product planning and development process in order to enhance its
feasibility and profitability.
3. The study is to find out whether the company is
able to determine the income of the consumer so as to increase the rate and the
market acceptance of new products.
1.7
THE SCOPE
AND LIMITATION OF THE STUDY
This study is subject to the following limitations
(a) The study was limited to sample of
pharmaceutical companies only in Lagos.
These basically were pharmaceutical companies that developed new products with
headquarters in Lagos.
b. There is
inadequate finance to embark in gathering primary date for this research work.
So it is restricted on some few pharmaceutical companies.
(c) The time available
for completion of this study was very short in carrying out and receiving
information in writing of this project.
1.8
DEFINITION
OF TERMS
( I ) ORGANIZATION: - Organization can be defined as an entity comprising
of human and non human resources with a distinct purpose the form of goal or
set of goals.
Alternatively, organization can also be defined as
those activities directed at organizing i.e. organization is the outgrowth of
organizing which is the process of arranging the organization resources into
the best possible relationship so as to accomplish the objectives of the
organization.
(ii) PRODUCT DEVELOPMENT: - Product development is the creation adjusted of
goods and services to satisfy consumers demand.
(iii). PLACE OR CHANNEL OF DISTRIBUTION: - This is a set of institution, which participates,
in the marketing activities undertaken in the movement of goods and services
from point of production to point of consumption.
In a nutshell, price under marketing mix may be defined as a point of
interaction between the buyer and services where production are being offered
for sale for consumption
(iv). PRICE: - Price can be defined as the monetary value or consideration that a
seller placed on a product and at the same time, what the buyer is ready to
part away with for a given product over a specific period.
From
product attributes, the following should be given adequate attention:
a) PRODUCT
DIFFERENTIATION: The
uniqueness of a product determines the profitability of that product in a
competitive marketing environment.
This usually leads to freedom in pricing and large
production profit. The demand curve for such product is in elastic in that the
price and total revenues moves in the same direction.
b)
PATENTIABILITY: This is the most essential features of product development because it
is the degree to which the product can be protected by patent laws. This is
very important because new product development can be circumvented by
developing new materials and processes through modern production and operation
technology.
c)
SIZE AND PACKAGING: Adequate attention should be place on the size
and packaging of product provides because it is also a determinant to the
success or failure of a product, packing provides the customer necessary
information about the product they purchased.
d)
QUALITY: The quality of product says a lot about the reputation of an
organization. Thus, the level of product quality is always the decision of the
top manager.
e)
COLOUR: This is one of the important attributes of a product because
consumers nowadays place more emphasis on the colour of a product.
f)
PRODUCT KNOW-HOW: This is in regards to the production facilities, well trained labour
force and even high research and development investment in producing height
quality goods and services efficiently with respect to cost.
g)
STYLE: The styles of producing a product do changes because of the aesthetics
and artistic expression in a product. Thus, it should be given adequate
attention and an ephemeral product style should not be adopted by the company.
h)
BRANDING: The product should be given a design or symbol that will
differentiate it from similar one in the market.
1.9 HISTORICAL BACKGROUND OF SMITHKINE GLAXO
NIGERIA PLC
Smith Kline Glaxo formerly SmithKline Beechem: is
a foreign company that has been in existence since one and half century age. It
is a company, which has it’s headquarter at United Kingdom (UK). SmithKline
Glaxo is a company owned by Thomas Beechem.
A research was carried out in united state of
American after twenty years. The result of the research led to the
establishment by Glaxo, it subsidiary in Washington D.C in the middle of
nineteenth century. By 1958 SmithKline was operating in both United Kingdom
and the United States of American and it developed from strength to strength in
terms of sales, Profit making and market coverage compared to what the
situation was like prior to its establishment in the United States (US). In the
late nineteenth century, Glaxo has also extended its tentacle to Germany. Belgium and Italy.
SmithKline Glaxo came to Nigeria in different ways, before its
incorporation, it engaged in the direct important of some products to Nigeria. In
doing that, it employed the services of some agents who sold its product on its
behalf. The immediate acceptance and the increase in its sales made SmithKline
to set in motion, the machinery of establishing Beechem in Nigeria.
Eventually, the registrar of companies in Nigeria
STAFF STRUCTURE OF SMITHKLINE GLAXO NIG PLC.
The staff structure of Glaxo Nigeria PLC reveals
that, it is a line staff organization. The top most head of the company is the
board of directors (BOD). The board of director is then followed by the
managing director who has a line relationship with other managing managers,
which include: the marketing directors, finance & accounts directors, and
plant manager. Personnel manager, procurement manager, research manager and
other staff. This combination of line staff organization show that each officer
on the horizontal line is directly responsible to the managing director of the
company while he is responsible to the board of directors.
Moreover, the line staff organization structure
run by Glaxo Nigeria PLC gives room for interaction between one management
officer / workers to another. It can also enhance and the use of specialist.
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