CHAPTER
ONE
INTRODUCTION
In this present business world, the survival
of any firm in a competitive environment depends on the plan of the management.
Therefore, the ideas of a new product development must not be neglected, it is
very vital to properly look into the product development by the top management
whether in a manufacturing or service firm.
The change in consumer needs and tastes,
rapid technological changes, shortened product life cycles and changes in
Business environment facilitates the need for product development to meet
consumer expectations.
Product development can be examined with
regards to market development which covers the search for new uses or new market
remove. At times, the companies that make the industry as its target find new
markets in the consumer field.
Diversification is another form of new
product development. It may be a departure from existing product, or a new
product with new technology and new market. It becomes imperative to develop
new product if the firms long term survival is to be assured and to take over
from rationalized products. It is also needed when major technological changes
have taken place or when forecast or when a company wishes to expand its
activities into other places which includes the search for assessment, planning
and lunching of new product or services ideas.
The survival of any business depends
majorly on how quick it can adapt to changes in the environment and the challenges
exhibited by the company in the market area.
However, top management, marketing
manager and all those directly concerned with the company’s product needs to
take necessary steps towards this development. Any new development in the
market area must be monitored by the management through adequate marketing
intelligence.
The techniques implemented in setting
the firms goods and services will vary depending on the tope of consumers and
the sort of market involved. The consumer may be distributors, retailers or an
individual. The market may be fairly competitive with large number of buyer and
sellers. In such a situation, they have to be specially concerned with price,
quality source and their product style in order to keep old customers and
attract new ones.
To win the lion share of the market, the
company decision, this can be achieved by providing best product or services
that satisfies customers.
In a situation whereby products and
price are the same with those of the competitors, the firm must create
differences in packages, services or corporate image. It is therefore necessary
for any manufacturing company to embark on proper product, planning and
development that enable its new product last longer in the market.
Another important aspect to lay emphasis
upon is advertisement. This is a means of getting information across to the
target customer; hence the introduction of new product in a competitive market
environment cannot be attained without advertisement.
1.2 STATEMENT OF THE
PROBLEM
New product development is a decision
which the management of an organization needs to plan very well before It is
executed. In this regard, certain questions arise and this constitutes the
problems of this study namely:
i.
Would
the new brand of product developed by favourably with other products?
ii.
Can
the new product enhance profit management of the firm?
iii.
What
strategies could be used to penetrate the market with the new product?
iv.
Will
the new product developed be accepted by the market?
v.
It
is imperative that external environment affect marketing mix, if so what would
be the nature and magnitude of influence on the new product proposed to be
developed?
vi.
Does
the firm posses qualified and strategic and adequate persononnel to handle the
strategy of new product developed and implementation.
1.3 AIMS AND OBJECTIVE
OF THE STUDY
The key objective of this research work
is to determine how to establish and effective organization for handling the
new product of company. New product development is not an easy task that can
just be carried out by any firm. To know how to set up a capable organization
for handling new product is one of the objectives of this research work.
This research work also aimed at finding
out the best tools and concepts in each stage of new product development. To
set out alternative approaches that will enhance an organization a differential
advantages over competitors in order to attain a high rate of return. Also, to
know the maximum rate of output and the level of demand as this will enable the
management to project into the future demand level.
Another objective is to identify the
product that can best satisfy customer preference and tastes.
Finally, to proper solution and
recommendation, for the problems encountered in a competitive environment.
1.4 SIGNIFICANCE OF THE
STUDY
In any research work, it is normally
believed that research and the company derives certain benefits from the
research work. Therefore, in this very research work; some significance will
arise and will be of benefits to both researchers and the company chosen as a
case study.
The significance that may arise
includes.
a.
The
researcher will have a knowledge about the prospect of new product development,
whether a competitive or non-competitive environment.
b. It will enable the company to maintain
and even increase her market share position and establish a foothold in the
future market.
c.
It
will also help the company to know what constitute the needs and wants of it
consumers.
d. More importantly, the research work will
assist the company to identify the strategy that fit marketing of a new product
in a competitive environment.
e.
The
Society: This research work will be useful to the society and enable them to
understand reasons why many companies embark on new product development.
Since, the society is mainly concerned
on their well being.
Therefore, this research work will
definitely help to improve the standard of living of the society by given back
to them little out of what they have pay to the organization.
1.1
SCOPE OF THE STUDY
The scope of this research work shall be
limited to the general administration of Lube Blending Company and development
of new save wash (Liquid Detergent)). The various stages of the products life
cycle falls within the segment of this research.
1.5.1 INDUSTRIAL SCOPE: Majority of firms in Nigeria were
represented by their products in a competitive market. Therefore, the area
covered by manufacturing industry is very index. This is the reason why the
researcher chosen Lubcon Nigeria Limited. Ilorin.
1.5.2 GEOGAPHICAL
SCOPE: Owing to
difficulty in covering the whole Nigeria which will take time and very cost,
this is the basic reason why the researcher limit the research to Lubcon Nigeria
Limited Ilorin, and the customer of Lubcon in Ilorin Metropolist.
1.5.3 CNCEPTUAL SCOPE: The area covered by competitive market
is very wide, this is the reason why the researcher limits its scope of study
to product development, reason for new product development, advantages,
disadvantages of new product development and competitive instruments used by
business organization.
1.5.4 TIME SCOPE: This research will cover the period of
Five (5) Year, all the information that the researcher revealed in this project
work will be from 2009 till date.
1.6 LIMITATION OF THE
STUDY
It is not new to have some short comings
in any research work. This means that, in any research study, the research
usually encounters some short comings.
However, the likely short coming that
may arise in this research work will be given below;
These are the constraints faced or
encountered by the researcher in process of gathering information for this
project work.
a.
TIME CONSTRAINTS: It is also one of the problems
encountered during this research work. Time allocated to this project work is
not enough since it combined with the lectures and some activities. But defined
with the researcher was able to schedule his program by gathering information
for this project work during the week and writing report in weekend to ensure
useful information are extracted from the raw fact collected. The management of
the company chosen as case study may give the researcher a day that he come and
gathers information. The day given by the management may collide with the
researcher time-table; hence time constraint will really affected the
researcher.
b. FINANCIAL
CONSTRAINT: Gathering of
information requires moving from one place to another, printing of necessary information
and making some necessary information and making some necessary calls. All
these require money however the researcher was able to get enough information
for this project work through the help of the parents, uncle and friends that
finance this project work.
c.
Negative
response by the responded: The staff may feel relevant to answer all the
questions persuasion occurred before the answered all the questions prepared by
the researchers, until certain persuasion occurred before the answered all the
questions the company may not even wish to apply all the information they may
think that the researcher will reveal the secret to the competitors, regardless
of the assurance given by the researcher.
Lastly, secrecy in releasing information by the
respondents and the company was also part of the problem encountered by the
researcher, some useful information is considered secret and meant for management
alone but the researcher was able to gather needed information by assuring them
that all information given will be used for purpose of the project work and
will be treated confidentially.