The Development And Marketing Of A New Product As A Company Life Wire

Project and Seminar Material for Marketing

The Development And Marketing Of A New Product As A Company Life Wire


Abstract


This research is intended to apprise the development and marketing of a new product as company life wire by Nigerian Breweries Plc, Aba.The questionnaire and interview methods were used to collect data for presentation and analysis. The simple percentage justified the entire findings and the statistical techniques of chi-square explicitly show that market research is pivotal tool for new product development and management decision. The entire findings of the study shows that in an attempt to evaluate the use of marketing assessment on new product, the entire area of the study needs a proficient market research development, more budgetary allocation is needed to propel marketing research to boost new product. And the finding of this study is that company organizational structures of market reveal lack of marketing research department of its own and budgetary allocation to marketing research is inadequate. The recommendation clearly stated that companies should take note of the type of research approach to use at the stage which is concerned with comparing the concepts with or against existing market of the competitor. Companies believe that NPD is their life blood; it can be the better way to survive firmly and be more competitive. In addition, the strategy of how to manage NPD process effectively and efficiently is becoming a powerful way of achieving a competitive edge.


Chapter One


Introduction

1.1 Background Of The Study

Product and development is a systematic process for originating, evaluating and developing new product ideas and adopting these showing promises that they can be profitably sold in the market place. This management procedure must be employed to generate, collect and screen ideas for new product, and then develop, test and commercialized the new items.

Every new product is supposed to go through the evolutionary cycle ending in the commercialization of the product. The evolutionary cycle ending ideas exploration, idea screaming, concept development testing marketing strategy development, business analysis, product development, marketing testing and commercialization

Developing and marketing new product as a company life wire is both a risky and profitable venture. It is risky in the sense that if the product fails the company would lose a lot of money, which has been expand in the process of developing the new product. On the other hand, if the new product succeeds, the company would reap a lot of benefit through increased profitability.

New product development is a strategy usually adopted by the Nigerian breweries plc. The company has the policy of enhancing it’s product quality and adding new product to its of drinks.

Considering the critical nature of the beer breweries companies, the Nigerian breweries plc management must know how best to develop and dispose its new product not only at a profit to the business but also to sustain and maintain consumer brand loyalty of the product.

New products are often promoted and consumers are stimulated and persuaded to try the product. Having tried the new purchased and repurchased the product, if successfully test market, it is the marketed. This study tried to examine the development and marketing of new product as a company life wire. Case studies of Nigerian breweries plc, Aba, built by the company testify to its abiding interest in the acts. The building and maintenance of craft, centers are part of the company’s contribution to the promotion and preservation of Nigerian acts and culture.

Conclusion

Nigerian breweries Plc is a model of success in the private sector. The company’s high profile, profitability and successful operations can be traced to good product quality; efficient management of operations and strategic penetration into the market environment. Others are proper understanding of consumer attitudes and habits and high social responsibility profile at national and zonal levels.

1.1.1 Profile Of Nigerian Breweries Plc
Scope Of The Operations

Nigerian breweries plc, the pioneer and largest brewing company in Nigeria, was incorporated in 1946 and recovered a land mark when the first bottle of STAR LARGER BEER rolled off the bottling lines in its Lagos brewery in June 1949 . This was followed by Aba Brewery which was commissioned in 1957, Kaduna brewery in 1963 and Ibadan Brewery in `1982.. In Enugu. the company acquired its fifth Brewery in September 1993. Thus from it’s humble beginning in 1946, the company now has five breweries from which high quality products are distributed to all nooks and corners of this great country.

Company Equity

With about 50000 shareholders, the authorized share capital of Nigerian breweries was increased from 288m to N457m in 1994 by the creation and distribution of one of new share for every one share held by shareholders.

Sixty-seven percent (67%) of the share is held by Nigerian amongst who are company employees of various categories. The company’s turnover increased from 7.166 in 1994 to 10.76 in 1995, while a sum of 4.06 was paid to the federal and state governments in various forms of taxes as against 2.46 in the previous year. In 1995, the company paid a dividend of 0.85 kobo per share.

This level of dividend is better appreciated if it is recalled that the scrip issue of one for one made the previous year impacted vary heavily on the equity base of the company by increasing it from 457.5 million ordinary share to 915 million ordinary share. The import of these developments has been a corresponding growth in the prosperity of company’s shareholders whose funds have appreciated into values for in excess of their original investments.

Brand Portfolio

Nigerian breweries plc has a portfolio of five high quality brand: star lager beer (1949) guilder lager beer (1970),Maltina (1976)< legend extra stout (1992) and Amstel Malta (1994). Together, position in the total brewed products market in franchise compliment other company values and as the house of quality.

Research And Development

Nigerian breweries Plc has kept pace with key international development, that ensuring that it’s systems, processes and operational procedures are always in conformity with proven best practices in most parts of the world. It is in line with the policy that the company established a 4 million research and development center (currently valued at 40 million) to enhance it’s research activities. Commissioned in June 1987 the research and development center conducts research and development center conducts research on all aspects of the brewing operation.


1.2 Statement Of Problems

The current economic recession and Austenty measures have virtually paralyzed almost all business activities in Nigeria and breweries businesses are no exception. The emergence of main beer breweries and the resultant proliferation of many types of beer have given rise to competition.

For an organization like Nigerian breweries plc, Aba to survive and achieve sustained growth in a competitive marketing environment. It has to strive to achieve the satisfaction of the needs of the target market.

The study or this research diagnosis problem that arise as a result of rapid changes in consumer’s tastes, technology, competition on marketing environment

Ancillary Industries

As a major brewing concern, the company encourages the establishment of ancillary businesses. Many of these organizations and individuals depend largely on the company for their means of livelihood. These include manufacturers of bottles, crown corks, labels, cartons, plastic creates and such service as hotels/clubs and direct customers.

Social Responsibility

Nigerian breweries plc is a socially responsible corporate citizen with an enviable record of rendering corporate philanthropy in the areas of education, sports, health and the arts, among others. The companies recently establish an education trust fund of N50 million to take more active part in the funding of educational and research facilities in higher institutions, all in an effort to provide and encourage academic excellence in Nigeria.

This in addition to its annual university book price award, to 18 institutions of higher learning in the country as well as the secondary/university scholarship programme for children of its employees

Nigerian breweries plc, is the foremost sponsor of sports by variety in the country with sponsorship covering table tennis, lawn tennis, cycling, , golf, badminton, dart, boat race and ayo. The aim of develop Nigerian sportsmen and women to participate in national and international sports, in the health sector, the company is committing funds to the building of the skill cell center in Nigeria. The Oyo state craft village in Ibadan and the craft center in Benin.


1.3 Objectives Of The Study

The study aims at determining how an organization can redesign or change its product to enable them cope with changing taste of the consumer.

This could be achieved by taken the following research objectives into consideration.

  1. To highlight and emphasize the importance of marketing research on new product development.
  2. To examine the effect / extent of marketing research contribution to new product development.
  3. To examine circumstances under which marketing research is more likely to be used in the stage of new product development.
  4. To identify the factors that influence marketing research on new product development
  5. Also recommend as the need arises in order to create customers satisfaction.

1.4 Research question

  1. What is the importance of marketing research on new product development?
  2. What is the effect / extent of marketing research contribution to new product development?
  3. Which marketing research is more likely to be used in the stage of new product development?
  4. What are the factors that influence marketing research on new product development?

1.6 Significance Of The Study

This research project is significant in many ways.

  1. To government it will help to know the areas on when to developed and market new product to the public, also when to assist organizations or individual with financial assistance to embarked on new product development.
  2. To Nigerian society, it will help by explicitly laying bare the many ways in which development and marketing of a new product can be done effectively. It will also increase the knowledge of society on the issue.
  3. To Nigeria breweries plc, Aba management this work will be beneficial in the area of decision making, on planning and developing of new product, withstand competition in the market, maintain market leadership, satisfactions of customers profitably.
  4. To researcher, it will increase my knowledge on the development and marketing of a new product. It will help for award of my higher national diploma result (HND). It will equally enable me to make my contribution to the development and marketing of a new product by making my suggestions.

Furthermore, this research project is significant to the entire academic world and therefore serves as basis for future researchers.

Why Nigerian Breweries develop new products as a company life wire
  1. Profit and customer satisfaction (the basic reason)
  2. The products life cycle
  3. The price success
  4. Defensive reason- market share
  5. The pressure of competition

1.7 Scope Of The Study

The research work is directed to the study of new product development and marketing as a company life wire of Nigeria breweries plc, Aba. Emphasis will be on key work of the development and marketing of new product. All that entailed in planning new product, stop and processes that are involved in developing the new product are to be analyzed.

The company of the study Nigeria breweries plc, Aba which is a manufacturing company, A study on how to develop and market new product is carried out mainly in the production and marketing department and others such as technical, engineering and purchase that are involved in development and marketing of new products.

Since the research work is with particular reference to Nigeria breweries plc, Aba to assess how they actually carry out development and marketing of new product. Also the research work is designed so as to enumerate ways of planning and development of new product.


1.8 Definition Of Terms

1. Product:

Is anything that can offered to a market to satisfy a want or need

2. Product Development:

Is the final conversion of ideas and concepts about product into physical form. New product is either developed or there is improvement on former product.

3. Product Proliferation:

This is one of the specific strategies the market challenger can use to attack the leader by launching a larger product variety thus giving buyers more choice.

4. Adoption:

A decision by individual to become a regular user of the product.

5. Marketing Environment:

The actors and forces that surround both the buyer and the marketing mix, it consist of political, legal, societal consumer movement etc

6. Marketing:

Is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationship in way that benefit the organization and it stake holders.

7. Test Marketing:

A Limited introduction of a product in areas chosen to represent the intended market to determine probable buyers reaction to various part of a market mix.


Chapter Five


Summary, Conclusion And Recommendation

5.1 Introduction

This chapter is made up of summary, conclusion and recommendation. In the summary is entails what each of the previous chapters contain, while the conclusion is the outcome of the overall research work and the recommendation is what the researcher finds out on the impact of marketing research on new product development.


5.2 Summary

The research is an assessment of the development and marketing of a new product as a company life wire which is divided into five chapters.

Chapter one introduced the study, it states how marketing has been an important tool for determining the success rate of a new product generating more revenue for the entire success of the organization. It also consists of the statement of the problems, significance of study, limitation of the study, scope of the study, limitation of the study and definition of terms. The objective of the study was to examine the contribution and the importance of marketing research on new product development, and examine circumstances under which marketing research is more likely to be used in the stage of new products development and the impact of marketing research on the profitability.

The chapter two explains why the researcher has decided to go into the area of study. The literature consists of the area of product control, sales, targeting and sales forecasting, it states that although, marketing performance in the market, not much emphasized in most companies. Attempt has been made to look at some theories, research in marketing and the types of research that exist in the field of marketing such as product research, consumer marketing analysis, sales promotion, primary research, distribution research etc.

Chapter three explain the research design of study, techniques and sample size, methods of data collection, method of data analysis and research instruments used. In all, the chapters explain how the research came about, how the data was collected and how the data was analyze to help solve the problem at hand.

Chapter four dealt with the analysis of the relevant data collected for the research, the chapter also dealt with interpretation of the data.

Chapter five is just the summary of all that is contained in the first four chapters. It contains the summary, conclusion, recommendation and bibliography.


5.3 Conclusion

Despite the huge amount of money spent for the promotion activities in most companies, the products are not well recognised. This means that the planning and development stage of the company are the most important areas to consider before any other thing.

Organizations succeed more with uniqueness rather than uniformity. Uniqueness entails doing things completely different from the usual way adopted by competitors and other organizations. To have uniqueness in methods, procedures, processes and systems, organizations need to have the right caliber of people to bring about these changes to stimulate them and to live with them for the purpose of gaining a competitive edge and advantage over the competitors. To achieve these, organization must spend a lot on marketing research to achieve uniqueness and product delivery.

If sufficient research is undertaken, then the chances of failure are reduced. Indeed, the danger that many companies wish to avoid is the development of products without any consideration of the market.

Marketing research would lead to higher NPD success, and that the integration of marketing research would be the most important of the factors contributing to success in NPD organization. Companies which use marketing research intensively and understand consumer response in great depth are more likely to have higher success rates.

The more extensive use of marketing research appears to be related to more experience in doing NPD and a larger role for new products in the companies. Use of marketing research also allows companies to set quantitative goals for new products, and more carefully evaluate performance after launch.

Also most organizations can be regarded as pace setters or market leaders in their various markets, if only they take time in doing marketing research on New Product Development.


5.3 Recommendations

In order to undertake a systematic product planning and development, in marketing research, the researcher is making the following recommendations.

  1. Most company should invest in promotional activities to enable the product sell in the market and to increase the profitability of the company.
  2. Also companies should adopt the scientific method of product planning and development within the context of marketing research.
  3. Another recommendation that can be put forward is that, more money should be invested in promotional activities to enable the product sell in the market
  4. That they should also conduct gap analysis of the existing products by interviewing a representative of consumers to find out their views about the company’s existing products before thinking of producing another one.
  5. They should also take note of the types of research approach used at the stage which includes monadic approach which is concern with comparing the concept with or against existing market after of the competitors. The Holistic approach of data about the marketing mix variable such as price, promotion package and distribution. Although the companies conduct testing, it may suggestion that the company studies very well the procedure of product testing which varies from company to company and product to product. It is also expensive since it involves raw materials, machinery, and accuracy of new skill production.

Like product testing, marketing test also involve some procedure of which I will suggest companies to adopt to ensure successful marketing test, and take note of the information required during the marketing test.


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