The Impact Of New Product Development In Telecommunication Industry

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The Impact Of New Product Development In Telecommunication Industry


The study examined the impact of new product development on sales volume in Telecommunication industry. The objective of the study is to examine how new product development on sales volume are being carried out by MTN Nigeria Plc, Kaduna. The survey research method would be adopted in this research. The finding further reveal that the techniques used in new product development on sales volume in MTN Nigeria PLC are basically the total assurance and consumer feedback. In conclusion, the new product development is very important to the existence of business organization because its survival depends on increase in sales volume. As such it was recommended that new product development on MTN Nigeria Limited should strengthen its marketing activities by monitoring competitive activities on a regular basis in order to identify areas of their weakness.

Chapter One


1.1 Background of the Study

The subject (new product development) has influence the issue of sales which the researcher will like to assembly the sales of MTN product and services in Nigeria.

The company staff embark on advertising and research agencies, competitors, through conferences, exhibitions, and trade fairs, company’s marketing department and R and D department of the company or through any of the processes to prototype development and test marketing or commercialization in new product development that is ever done or actualized in the assembly nation (Nigeria) rather, but in France, therefore the sales here must be influenced by the cost of raw material source shipped for imported and along with the cost of production in the assembly. This is why sales or marketing strategy apply is more focus on industrial market and government (local state and federal). Majorities and less industrial market (buyer). All that involve are due to the technicalities and uniqueness of the product.

There may be no use attempting to add a new product to the existing range, if such a firm has no clear-cut objectives of what the new product is supposed to achieve. It is not however, within the scope of this research piece to make a comprehensive list of the various objectives of new products development as this varied widely from one firm to another.

By and large, the purpose of new product development of an unexplored market potentials which a company has identified the firm having armed itself life MTN PLC with such objective may then proceed to other steps in new product development.

Companies that fail to develop new products are putting themselves at great risk. Risk of poor sales volume, space out of market into a small cubicle of not completely put out by competitors of the same product development strategies, initiatives and innovation conscious that is what that research is aiming to influence on sales volume. The existing products are vulnerable to changing customer needs and tastes, new technologies shortened product life circles and increased domestic and foreign competition once a company has carefully segmented the market, chosen its target customers, identified needs, and determined its market positioning.

It is better able to develop new products because new products development shapes the company’s future. Replacement products must be created to maintain or build sales of the organization.

Any enterprise that is profit oriented, can be actualize this through prompt sales volume realize, and that depend on the quality, core products, physical tangible, augmented products and the application of promotional mix/tools of the newly developed product.

It is also clear that customers want new products, and competitors will do their best to supply them.
In telecommunication company in general (especially MTN with it uniqueness and distinctive qualitative product) such cannot be less expected.

Telecommunication company in developing a program to reach its intended market, must start with the product (new product) at hand for offering or service designed to satisfy the wants of the market segment. Therefore the executives must plan, develop and manage both individual (industrial users) product and industrial product assortment. This is not easy task as is shown by the large number of product failure in our economy.

1.2 Statement of the Problem

A new product can be conceived and developed over night, it takes time and effort to bring the new product idea into fruition. It also consumes a lot of money to bring a new idea generated into commercialized offer. A new product is expected to be profitable and successful but opposite is the case sometimes to different companies. Products sometimes decline and die natural deaths due to inexplicable circumstance.

The reaction of the company leads to new or modified products, such products are born out of either innovation or invention that is problem in process.

1.3 Objectives of the Study

  1. To examine the impact of new product development on sales volume in MTN Nigeria PLC, Kaduna.
  2. Find out whether the product development policy of MTN PLC is formulated to achieve high sales volume.
  3. To find out the purpose of new product development programme of MTN Nigeria Plc, Kaduna.
  4. To identify the constraints militating against MTN in new product development.

1.4 Significance of the Study

The study will be beneficial to MTN Nigeria Plc Kaduna as well as other corporate organization in the formulation of their product policies and strategies.

The study will contribute to knowledge by adding to existing knowledge on new product development. The study will equally be a good reference material to students who may wish to undertake to similar research.

1.5 Research Questions

  1. What are the impacts of new product development on sales volume in MTN Nigeria PLCKaduna?
  2. What kind of product policy does Pan embark in her product development?
  3. What is the purpose of new product development programme of MTN Nigeria Plc, Kaduna?
  4. What are the constraints militating against MTN in their product development?

1.6 Scope of the Study

The study will cover an empirical investigation into the impact of new product development on sales volume of MTN Nigeria PLC, Kaduna. To this end, the study shall identify the product policies of MTN as well as the purpose of new product development programme of MTN Nigeria Plc and the constraint militating against MTN in their product development data and information shall be collected from 2008 to date.

1.7 Limitations of the Study

Every research activity has its constraints. This particular one is however not an exception. Certain factors limit the process of writing this research work, which include:

1) Inadequate Research Materials:

The research materials on this subject matter were few. The much relied library is filled up with out-dated books, which are of little relevance to current research. Moreover, the cost of new and up-dated materials are exorbitant which make them not readily affordable.

2) Lack of Cooperation of Subjects:

Sourcing for information from source of respondents was not an easy task, particularly with regards to some information that are regarded as classified or highlyconfidential to the company. The degree of cooperation of staff of MTN was minimal.

3) Low Return of Questionnaire:

In the process of gathering data, it was discovered that not all questionnaire issued out were returned. Some of them were also wrongly filled which means a great deal of relevant information was held back, and which could have enhanced the quality of this study.

4) Inaccessibility of Subjects:

Another constraint encountered during the research is the inaccessibility to the inventory management manager who was not always on sit to provide desired data.

Chapter Five

Summary, Conclusion and Recommendations

5.1 Summary

The data and information collected by the researcher thus could be seen that new product development in automobile vehicle company is highly acceptable and welcome by the large number of the company’s customers and distributors. The impact of new product development on sales volume in MTN Ltd has actually brought about immense growth in the company’s automobile industry. It has been observed that the various version and products produced by Peugeot automobile ltd are designed to suit the environment and nation as a whole, and to meet the table of market demand among other competitors. Examples Peugeot 504 pick-up is designed to convey goods from typical villages “rural to urban areas” into towns and cities of the country.

From farm or factory, contract site to markets 504 station wagon and 504 J5 is build to serve commuter purpose in our transportation company within towns ands later states. 504 ambulances is designed for special cases urgent case in the hospital convey doctor on call at night and morning coffee to various destination, while delivery van is meant for farmers and industrial uses/purposes. Among other versions are the best line, 504 new line, 504 dangel, 504 special and ordinary with their special/unique purposes.

Furthermore, Peugeot have developed convenient pleasurable cars which encompasses 306 standard, 306 best line, 306 XR, 306 SR, 406, 406 prestige, 206/307. And kit cars boxer, the partner and the expert.

Generally, the company have done better if not the best to satisfy the criticism of Nigeria with climate condition suitable motor vehicles and delivery and factory/industrial like kindness and pleasurable cars which is of course a character of Nigeria (full of pleasurable and enjoyment – live of life affluence).

Therefore, is obvious that Peugeot product is designed just for Nigeria in all area from rural to urban farms through industries to market, for the average, rich and wealthy Nigerians and what have you.

5.2 Conclusion

The new product development of the company (MTN) ltd on sales volume has been received great appreciation and commendation quite well from her customers and even sincere competitor. The manufacturer or producer of quality product of this nature hardly achieve its objectives until more new products are developed at a favourable sales (profit) and make use of the 4ps-product, promotion, price and place (distribution) strategy effectively that is why Peugeot products although only assembled in Kaduna (Nigeria) but found all our major center/town in Nigeria in terms of sales and every nooks and corners in terms of distribution “right place” where customers can buy with minimum efforts. With this Peugeot products can compete and maintain the market share today as it can classified among the market leaders or challengers.

Concisely, the stages of new product development is very vital to be observed – idea generation, idea screening, idea evaluation, prototype development and test marketing or commercialize. Each of these stages helps the competitors challenges and customers needs/end users demand.

From the vital issues and information collected by the receiver, MTN ltd is marketing oriented company. It has succeeded in having a total Nigerian market share of 70% in the right automobile sector industry. You see that I am correct to call Peugeot products company as a market leader especially in Nigeria. The after sales services product by the company to aid the customers sell fast make her unique and peculiar from other competitor that is why its difficult for Peugeot product (motor vehicle) to be push out of the market today.

5.3 Recommendations

Based on the above findings, the researcher would like to put forward the following recommendations:

  1. There is the need for constant consultation and meeting between management and its agencies to find out area to improve upon.
  2. The new product development on MTN Nigeria Limited should strengthen its marketing activities by monitoring competitive activities on a regular basis in order to identify areas of their weaknesses.
  3. To be able to implement its sales promotion policies, top management of the company should ensure a steady flow of working capital.
  4. Organized seminars – Session, where group of customers meet with the company engineers to discuss problems and need and brainstorm potential solution.
  5. Survey your customer, find out what they like and dislike in your product and competitor’s product.
  6. Treat trade show as intelligence mission, where you view that it is new in your industry under one root.

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