THE RELEVANCE OF NEW PRODUCT DEVELOPMENT ON ATTAINING MARKETING OBJECTIVE OF TABLE WATER PRODUCERS. ( A CASE STUDY OF SELECTED TABLE WATER PRODUCERS)

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ABSTRACT

This study was conducted to determine the relevant of new product development in attaining marketing objective of table water manufacturers in Anambra State . However, to achieve the goal of the study, the closed ended r4esearch was used to study (twenty one) table water manufacturers, where questionnaire were administered to 18 respondents in order to obtain first hand information after a critical analysis of the data collected and the test of the hypothesis using the chi-square statistical tool. The following were established, that there is significant relationship between new product development and marketing objective of bottled water manufactuturers. Marketing testing enhances the relationship between new product development and marketing performance of bottled water manufacturer.

        The table water manufacturers should not rely on external agency, they should employ  qualified and expert who are capable of elicity the required information to work in the development unit so that misleading information will not be send to the management for decision making.

        They should carry out persuasive advertising in order to change their customer behaviour towards their product.

        Since the new product development needs expertise, they should establish functional marketing intelligent system so as to reduce the burden f frequent new product development on enevironmental and market study.


TABLE OF CONTENT

TITLE PAGE

APPROVAL PAGE

DEDICATION

ACKNOWLEDGEMENT

ABSTRACT

TABLE OF CONTENT

 

CHAPTER ONE

1.0.      Introduction

1.1.      BACKGROUND OF THE STUDY

1.2.      STATEMENT OF THE PROBLEM

1.3.      OBJECTIVE OF THE STUDY

1.4.      RESEARCH QUESTIONS

1.5.      STATEMENT OF HYPOTHESIS

1.6.      SIGNIFICANCE OF THE STUDY

1.7.      SCOPE OF THE STUDY

1.8.      LIMITATION OF THE STUDY

1.9.      DEFINITION OF TERMS

 

CHAPTER TWO

1.0.      LITERATURE REVIEW

1.1.      INTRODUCTION

(OTHER FUNCTION OF THE TOPIC)

REFERENCES

 

CHAPTER THREE

3.0.      RESEARCH METHODOLOGY

3.1.      INTRODUCTION

3.2.      RESEARCH DESIGN

3.3.      SOURCES OF DATA COLLECTION

3.4.      POPULATION AND SAMPLE SIZE

3.5.      SAMPLING TECHNIQUE

3.6.      VALIDITY AND RELIABILITY OF MEASURING INSTRUMENT

3.7.      METHOD OF DATA ANALYSIS

 

CHAPTER FOUR

 

4.0.      PRESENTATION OF DATA AND ANALYSIS OF DATA

4.1.      INTRODUCTION

4.2.      PRESENTATION OF DATA

4.3.      ANALYSIS OF DATA

4.4.      TEST OF HYPOTHESIS

4.5.      INTERPRETATION

 

CHAPTER FIVE

5.0.      SUMMARY, CONCLUSION AND RECOMMENDATION

5.1.      INTRODUCTION

5.2.      SUMMARY OF FINDINGS

5.3.      CONCLUSION

5.4.      RECOMMENDATIONS

REFERENCES

APPENDIX






CHAPTER ONE

 

1.0.    INTRODUCTION

New product development is not only an essential ingredient in effective marketing but also indispensable is very persuasive. Although in practice it is mostly applied in production of new and better methods in an enterprise operations (process technology) aimed at improving efficiency and effectiveness.

The society we found ourselves is in a state of flux and therefore the only thing that is stable is change. The needs nad wants of the inhabitants of the society are changing by the day. Sequel to this the firm must innovate or perish. Therefore the products developed should be able to meet the dynamic need of the target market, for market to be secured.

Hence adequate marketing research has to be effectively conducted before coming up with a product otherwise  its sale will hit the rock.

Product development is absolutely pivotal to future marketing success. The major goal of product development is modify products so as to better satisfy needs at reduced costs and also make the management of an organization to obtain a competitive advantage and customer loyalty.

Therefore, this chapter will deals with a view of earlier work on the subject matter.

 

1.1.    BACKGROUND OF THE STUDY

The Nigerian economy has recently recorded growth in some of its major sectors, among which is the bottled water manufacturing industry. In the past this sector comprise of very few companies who could not meet the market demand of portable drinking water in the country. Due to the untapped opportunity in this sector, a lot  of mushroom operators ceased advantage to market very poor quality unbranded products popularly regarded as “pure water”.

        However, with the economic reforms still taking place, a lot of government enforcement agencies such as National Agency for Food and Drug Administration Control (NAFDAC) and Standard Organization of Nigeria (SON) have intervened by clearing up the cities of inferior products (pure water).

        Although, growth in the bottled water industry is not rapid, one can appreciate the level of sanity in the sector. The improvements noticed in the product quality can be traced to its packaging, labeling, branding and its contents. With the relatively slow growth experienced in this sector competition has began to intensity and since price war is not too common, firms must resort to other strategies (New product development, promotion and distribution).

        Product are the linking point and relying totally on old or existing products will be a stupid, ides. Companies here to innovate, whether by differentiating or diversifying their product portfolio, there is the need for bottled water producers to invest heavily on research and development in order to continually meet the ever-changing demand of consumers.

        New product development is the process of creating something entirely new or adjusting and existing product to thing entirely new or adjusting and existing product to better satisfy customers needs and wants (Bassi, 2006)

        New product development is one of the avenues of enlarging the size of a firms products portfolio although, any firms seem not to have recorded much success in this area due to depressed global economy, it is imperative to recognize the fact that necessity gives birth to depressed global economy, it is imperative to recognize the fact that necessity gives birth to invention and organizations who refused to innovate will be forced out of the market.

        New products are the future any business and with out a continuous flow of them, the marketing system would probably die. Every organization should carry on with a new product it for no reason at all, “that some existing company’s product with enter the decline state some day.

        Furthermore, it is of paramount importance for top management to develop specific criteria for accepting new products ideas. Such criteria can vary with the specific role the product is expected to play.

        This study will lend from Booz – Atlen and Hamilton (1982) in Baker (1996) eight (8) strategic role that companies can use to set objectives for their new products.

They are as follows:

1.           To maintain position as a product innovation

2.           to establish a market share position

3.           to establish a foothold in a future new product

4.           to preempt a market segment

5.           to exploit technology in a new way

6.           to capitalize on distribution strengths

7.           to utilize excess or off season capacity

8.           to provide cash generations.

Kolter (2000) also quoting Booz- Allen and Hamilton 91982) identified six categories of products and their newness to the company and the market.

i.             Market of complexity

ii.            Relative merit

iii.          How compatible

iv.          Observation benefits

v.           Sampling quality

 

To crown it up today under the pressures of inflection and high cost, major factors of production the succession of a company’s product development depends on how effectively organized its structure  is in managing the new product development process; Kotler (2002) noted that new product development is retarded as a result of the following; shortage of important ideas fragmented markets, social and government constraint, costless of the development time and shorter product life cycles.

        He further added that eigth (8) steps could be identified in the development process namely;

1.           Ideal generation

2.           Ideal screening

3.           Concept development and testing

4.           Marketing strategy development

5.           business analysis

6.           Product development

7.           Test marketing

8.           Commercialization

1.2.    STATEMENT OF PROBLEM

It is uncertain whether bottled water manufactures carry out new product development. Also of a concern to the research to know the extent to which cost of developing new product affects marketing performance of bottled water manufactures. It is not yet clear to the researcher how qualified the research and development personal are.

        Also of a concern to the researcher to know the relevance of business analysis to table water firms performance. The researcher is also in doubt of the contribution of market testing to the performance of bottled water firms. It si also doubtful weather moderating factors affect the relationship between new product development and marketing performance of bottled water companies.

 

1.3.    OBJECTIVE OF THE STUDY

This study was primarily undertaken to investigate the extent of relationship between product development and marketing performance of bottled water producers in Anambra State.

Further more, the following specific objective will be determined.

1.           To know whether bottled water manufactures carryout new product development.

2.           To ascertain the extent to which cost of developing  new product affects the marketing performance of bottled water manufacturers.

3.           to know how qualified the research and development personnel are

4.           To find out at the relevance of business analysis to bottle water firms performances.

5.           To know whether market testing contributes to the performance of bottled moderating factors affects the relationship between new product development and marketing performance of bottled water companies.

1.4.    RESEARCH QUESTION

1.           Does bottled water manufactures embark on new product development?

2.           does cost of ddeveloping new product affects marketing performance of bottled water producers?

3.           how qualified are research and development personnel of bottled water manufacturers?

4.           Does business analysis contribute in the performance of bottled water producers?

5.           Does market testing enhance the performance of bottle water manufactures

6.           Does marketing factors have any effect on the relationship between new development and marketing performance of bottled water producers.

1.5.    STATEMENT HYPOTHESIS

Hypothesis I

Ho: There is no significant relationship between new product development and attainment of marketing objectives of table water manufactures.

Hi: There is significant relationship between new product development and attainment of marketing objectives of table water manufactures.

Hypothesis II

Ho: There is no significant relationship between market testing and attainment of marketing objectives of tables water manufactures

Hi: There is significant relationship between market testing and attainment of marketing objectives of tables water manufactures

 

1.6.    SIGNIFICANCE OF THE STUDY

To the researcher, it is pre-requisition for the award of higher National Diploma (HND).

        It is the believe of the researcher that the findings as well as the recommendation will immensely benefit the bottled water industry, and the entire manufacturing industry in their new product strategies and campaign/efforts activities. This si not only limited to be manufacturing industry but extents to the service industry. This si due to the fact eh new products have the potentials of pressuring a firms current and future position in the competitive market.

        This will also enlighten (readers, investors, distributors, suppliers, consumers, governments etc) the Nigerian publics on the area of new product development.

        Furthermore, students and researchers with interest on similar subject can use the this piece as a stepping stone in their studies.

1.7.    SCOPE OF THE STUDY

For reasons inevitably related to operational and financial convince, this study is restricted to table water manufacturers in Anambra State


 

1.8.    LIMITATION OF THE STUDY

This research will not be complete without the researcher mentioning some of the factors which have in one way or the oher hindering the completion of this study. The most prominent bring the following:

High Cost: Dues to rising cost of transportation and other material required in the execution of the study it is not possible to frequent these companies.

Time: The researcher being a final year student has to allocate the available time between this study and other school activities.

        Again mention must be made of the attitude of the respondents to ther researcher during the field work, most respondents seemed to be suspicious of the research. The fear of dangerous exposition and industrial espionage made them skeptical and refused to, answer some questions..

        However, the research was completed as the research was able to adapt the situation.

 

1.9.    DEFINITION OF TERMS

New product development: According to Onuoha J Kelechi (2005:26) product is defined as anything  that is offered to the market, which is capable of solving or satisfying any given want.

 

New Product: According to Barket (1980:45) New product is defined as anything which is perceived as such by the consumer or with which the form has no previous experience.

Product Development: This can be seen as any change or any additional model to already existing product of a firm or company

Marketing Concept: Kotler (1999:24) defined marketing concept as a management orientation hic hold that the needs and wants of target markets and to adopt the organization and more effectively than it is competition.

Strategy: This is general programme of action and development of emphasis and resources to attain comprehensive goals.

Marketing Strategy: Onuoha J. K (2007:58) defined marketing strategy of a grand plan design for the attainment of organziaitonal marketing objective.

Consumer: Anyanwu (1993:112) define consumer as a person(s) who buy goods or uses services of company.

New product: Inyanya (1999:106) defined new product as the development and spread of new ideas and product.

Research: Anyanwu 91993:351) defined research as trying to discover things that may help us to take informed decision and by so doing solve problems in marketing.

Product Line: according to (Ama 2000) product line can be define as a group of products that are closely related either because they satisfy a class of need, are used together , sold to the some customer group, market through the type of outlet, or full within given price range e.g star, Gulder etc .

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