Product Innovation As An Effective Tool In A Competitive Market (A Case Study Of Paterson And Zochonis Industries Plc Aba)

Project and Seminar Material for Marketing

Product Innovation As An Effective Tool In A Competitive Market (A Case Study Of Paterson And Zochonis Industries Plc Aba)

Abstract

This research work reviews extensively, the meaning of product Innovation as an Effective tool in the competitive market by using Paterson Zochonis as a case study, the objective is carrying out, to analyse if product Innovation enhance organization Image than old products, also to find out the consumer Improved quality to existing product the methodology simply mans the different ways methods and system a researcher used to administer an collect data collection, the data collection methods depend principally upon the aim and objective pf the research. This research of data collected from different source. The major finding in the product innovation is used to attain. In market leadership they could be seen at question sic table four where 68% of the respondent dais that product innovation are used to attain market leadership, in this case, I recommend that both the production and marketing manager of every firm should as a matter of necessity be creative Innovation and productive.

Table of Contents

Preliminary Page(s)

  • Title page
  • Certification page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of content

Chapter one:

Introduction

  • 1.1 Background of the study
  • 1.11. Profile of the company
  • 1.2 Statement of the problem
  • 1.3 Objective of the study
  • 1.4 Research question
  • 1.5 Research hypothesis
  • 1.6 Significance of the study
  • 1.7 Scope and Limitation of the study
  • 1.8 Definition of terms

Chapter Two:

Review of Related Literature

  • 2.0 Introduction
  • 2.1 The scholar’s Perspective
  • 2.2 The manufacture’s Perspective
  • 2.3 The consumers’ Perspective

Chapter Three:

Research Methodology

  • 3.0 Introduction
  • 3.1 Research Design
  • 3.2 Area of the Study
  • 3.3 Population of the study
  • 3.4 Sample and sampling techniques
  • 3.5 Method of Data Collection
  • 3.6 Method of Data Analysis.

Chapter Four:

Presentation and Analysis of Data

  • 4.1 Presentation and Analysis of Data
  • 4.2 Test of Hypothesis
  • 4.3 Discussion of finding

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Restatement of the problem
  • 5.2 Summary of findings
  • 5.3 Conclusion drawn from the findings
  • 5.4 Recommendation
  • 5.5 Suggestion for further studies
  • Reference
  • Appendix I
  • Appendix II

Chapter One

1.0 Introduction

1.1 Background of the Study

Many years back, the seller oriented Market prevailed over the consumer’s did out weight the main products during this period the production concept of the marketing Philosophy was prevailing giving little or no attention to the consumer.

The general difference was that the product would surely find a needy marketing no particular attention was paid to the product, packaging labeling, branding, modification and other features, qualities etc.

As time went on more and more products entered the market. This coming together of many products brought about competition among the available products consumer sovereignty began to over take its bearing based on good packaging, brand image, quality and convenience.

In the era of marketing concept, manufacturers, and producers determine first the need and went of the consumers and try their best to inculcate this into the company polices and programmes.

As a result of the dynamic business environment today, first apply difference strategy to ensure continued operation. Many new product are constantly being introduce into the market innovation are seriously on their job modifying and deleting old and unprofitable products.

Against this background, I want to look at product innovation as an effective tool in a competitive market.

Product innovation is the creation and development of new ideas into a new or an existing product. This embraces all the activities that will enable a company to determine what product to offer the market to satisfy consumers and out with competitors.

There is no gain saying the fact that the success or failure of any business is a function of the ability of its product to stand firm in the face to adverse competition from other products. Price reduction, intensive promotion and advertisement, product innovation and effective distribution channel are all strategies used by management to capture a sizable share of the market, but product innovation is the most effective and most result oriented.

As the population of the nation increases, so also does firm and business venture in order to be in alignment with the population. As a matter of fact, only those business units that ensure paramount consumer satisfactions and sovereignty in production shall withstand that struggle for goodwill.

If product innovation is not pursued, the company might be thrown out of the market Top management should always take cognize of what Williams J. Stanton said a company cannot successfully sell a poor product over the long run”

Often, it is easy to create a demand for initial sales. But a company need a good product to get repeat sales, and repeat sales are needed to stay in business.

1.1.1 Profile of the Company.

Paterson Zochonis was incorporated on the 4th December, 1948. Under the name of P.B. Nicholas who has for some years prior to the date established a factory, for that purpose. PZ and Company Limited of Manchester subscribed 75.5% of the company’s issued shared capital and sine directly or through subsidiary companies tetaimed the controlling interest PZ itself incorporated in England in 1884, because a public Company quoted on the London and Northern stock exchange in 1953. its principal activity then was generally in merchants in West Africa.

In 1954, Mr. P.B. Nicholas sold out his interest in the company to P.Z two years later, the company changed its name to Akimbo Industries Limited in1960, adopted the name associated Industries Limited. During the year, the company, achieved its first Indigenous and Nigerian equity participation and by the end of 1972, it had sold 40% of its share capital to indigenous Nigerians.

In accordance with the Federal Government Directives “Indigenous Act Is sold 20% of its share to Nigerian in 1976, thus bringing the equity share participation to 60% in favour of Nigerians.

Following the merger of PZ and Company (Nig) Limited and associated Industries Limited in1976, the Company changed its name to PZ Industries Limited between 1976-1970, manufacturing operation in Aba factory were disrupted as a result of the civil war and in consequences, the company open a ranted premesis in Lagos State. However, PZ Industries Limited become a Public Company in 1972 and was Listed on the Nigerian Stock exchange. The name was finally changed to Paterson Zochonis Industries Plc. In 1976 “PZ Industries Plc”.

Furthermore in 1996 PZ Industries Plc merged with Thermocol Nigerian Ltd to answer PZ Industries Nig. Plc and in July 2007, the company Merged with Cussons International England to become the present P.Z Cussons Plc.

The company has the following range of product-SOAP, Imperial Leather SOAP, Robert, premier, Baby Cussons soap, Carex, Duck Green Bar soap etc. all are produced in Aba.

Detergents Elephant Detergent, Tempo, Jet ,Morning fresh etc. cosmetics: Venn-Dee Mib, venus Relaxer, Jet hair Cream and florurish gel.

Pharmaceuticals. Maladin, Drastin plus, Rob Ointment, Robert paracetamoil, Alagbin etc.

Hair Thermacool: Air conditioner, Refrigerators and Television, Generation s et.

PZ Product are widely distributed. In the country through their extensive distribution network with buffer stock held at strategic centuries.

The company have a staff strength of about 6000 throughout the country. PZ had progressed from being merchant company to against industrial concern. Having production factory in Aba, Illupeju, Ikorodu and Isolo with more than ten warehouses , depot scattered accords the country.

The country has the staff strength of about 500 employees excluding temporary staff of about 200 at Aba factory Present.

1.2 Statement of the Problem

Product Innovation in a firm is associated with diverse problems that occur during or after innovation.

The problems are:

  1. Lack of marketing research leads to wrong production of it product.
  2. Wrong application packaging reduces sales of the product
  3. Inability of the firm to know when to delete a product during product life cycle causes decrease in sales volume.
  4. Improper Presentation of product to the market causes Poor sales.

1.3 Objective of the Study

Based on the first part of the study the objective are as follows:

  1. To examine if new product development can be a strategy to survive competition.
  2. To determine the impact of product consumer patronage of a firms product.
  3. To find out whether there is a significant relationship between the sales revenue of a firm’s product invention and after its innovation.
  4. To offer solution to the problem of innovation product
  5. To determine the various ways in which a product could be innovated.
  6. To analyze if new product development is a good strategy to sustain brand name than the existing product.
  7. To analyze if product innovation enhances organizational image than old product.
  8. To find out if the consumer prefer improved quality to existing product (old)

1.4 Research Question.

  1. Are sales revenue of Paterson and Zochonis product before innovation?
  2. Do consumer pre new product development than already existing products?.
  3. Can the application of product increase the company’s profit?
  4. Does product innovation indicate buying responses from consumers more than the production.
  5. What is the best Period in the product life cycle to introduce a new product
  6. Is product Innovation an effective tool/strategy to outweigh competitions.
  7. Do companies use product Innovation as a strategy to sustain organizational revenue?

1.5 Research Hypothesis

Based on the statement of problem and research question as stated above. Null and alternative hypothesis were formulated.

  1. H1: lack of marketing research does not cause poor sales.
    H1: lack of marketing research cause Poor sales.
  2. H2: Improper presentation of product to the market does not cause poor sales.
    H2: Improper presentation of product to the market caused poor sales.
  3. H3: Wrong application of packaging does not reduce sales of the product
    H3: Wrong application of packaging reduces sales of the product.

1.6 Significance of the Study

This research study is significant in the following areas.

  1. It helps the company to know the effects of the new product.
  2. This research work will serve as a reference for further researchers to the institution and will; also help them to improve on the already researched work on the topic.
  3. It is a pre-requisite for the fulfillment of the guard of the Higher National Diploma HND)
  4. It will help the general Public and government to know that the growth industrial are those that are oriented to new product development (product Innovation).

1.7 Scope and Limitation of the Study

This research study covers the product innovation and it is particularly in Paterson and Zochonis in Aba.

Limitations
  1. Time Constraint: Centeris Peribus, this is a work that demand a full year in the minimum to achieve a coherent and valid result. But as a result of other pressing academic engagement, the time allocation to this work is quite inadequate.
  2. Financial constraints: For a researcher to appear convincing, valid and reliable in its entire ramification money is needed. Construction of questionnaires, preparation of interview schedules, telephone calls and paying for information, all requires money again; the economic situation in the country has not been very friendly with researchers.
  3. By case study, Perterson and Zochonis as a case study has not been comparative. The company’s polices and programmes are placed in such a way that vital information are withheld by the staff. The researcher is sometimes seem as an intruder and as such given little or no attention.
  4. Respondents Indifference: Most of my questionnaires came back to me unanswered, some wrongly answered while some were incompletely answered. Some of my respondents seemed to maintain strict confidentiality while others were totally indifferent.

1.8 Definition of Terms

Product:

Anything capable of satisfying a consumer want or need.

Product Innovation:

The creation of new ideas into a new or an existing product.

Branding:

The use of a name, sign, symbol, Logo, marks, design or a combination of these to identify a product and distinguish it from those of competitors.

Packaging:

The creation of an outer-cover for the product for protection, attract buyer or the enhancement of aesthetic appeal.

Marketing:

This is a human activity directed at satisfying the wants.

Market:

This consists of people with needs to satisfy money to spend and the willingness to spend it.

Labeling:

A communication instrument designed to communicate with actual and potential customers of a firms product. For information and promotion.

Planned Product Obsolescence:

The act of deliberately phasing out or replacing a product with a new one.

Product Planning:

This embraces all the activities that enables a firm to determine what product it will make

Product Development:

This encompasses the technical activities of product research, engineering and design.

Strategy:

This is a blue print or master plan for caring our marketing Operation towards achieving predetermined marketing Objectives.

Diffusion of Innovation:

The process by which the innovation is communicated with social system over.

Product Differentiation:

Is a process by which a firm provide unique /distinct products or services to its customers.

Product Limitation:

Copying the initiative of other to innovate.

Chapter Five

Summary, Conclusion and Recommendation

5.1 Restatements

Product Innovation In marketing is associated with change problems that occur during or after Innovation.
A firm may have problem of determining the right colour of label to use, the brand name to use an Innovation firm. Is also confronted with problem of choosing the best packaging design for its products.

In product delection or planned products or do we allow them to phase out naturally, the effects of the delection on other products and the effects on the company’s over all profitability, the problems of when to delect during the product life cycle also arise.

The management of PZ Cussons tries to resolve the problem of determining the effects of product innovation on the over all sales volume.

5.2 Summary of Finding

This study is focused on “product” innovation as an effective tool in a competitive market. From the information gathered and analyzed the research was able to x-ray the following:

  1. The country is no doubt engulfed in a season of life adulteration of products and standards. Sustained product Innovation is a pre-requisite for the survival of both the product (SI and the firm).
  2. The product innovation in all its facts, is a very big set comprising of diverse sub-set labeling-branding packaging positioning, Planning and development differentiation, delection etc.
  3. One of the limiting constraints to a successful Innovation Programmes is poor funding. If funded properly, this strategy will pay back very heavily.
  4. Product through catch aesthetic appeal, enhances the bargaining power or any product. This may have a negative impact because at times, a poor core product may be penetrating the market through the instrumentality of a deceptive attractive label, colour, design, package etc.
  5. Innovation is a viable instrument to maximize profit. For the hypothesis tested in the previous chapter, it was discovered that product innovation is used to attain market leadership and that consumes perception are affected by company’s packaging strategies. A case study of PZ and as such, it is cost intensive its implementation.

5.3 Conclusion Drawn from Findings

Despite the factor that product innovation as an effective tool in a competitive markets, the benefits cannot be overemphasized because it is an instrument for growth. Without constant product Innovation there will be no growth the company will remain state they will be bound to have stunted growth. Thus is obvious because from the hypothesis tested in the preceding chapter, about 68% in the respondents said product Innovation is used to attain market leadership.

Across Section of people interviewed ironically opined that they know good product from its package and design. It may be wrong technically but plays a vital role insetting a product.

Manufacturing firms should take into account to know the life cycle of the product and know when the product will be replaced.

However, they should recognize the activities of their competitors in their marketing programmes.

5.4 Recommendations

The following itemized recommendation are given to help the management of PZ and Cussons in particular and the Nigerian Industrial system in general.

  1. One of the serious factors hindering the popularity of product Innovation in the country has been the deceptive nature of this strategy product Innovation should not only and with catch design package colour etc, bit should also permeate to the core product . A consumer that falls prey to a deceptive package once, may be loss perpetually to competitors.
  2. The government should take its right full place. In finding Innovation programmes to ease the bundles of cost-yearly allocation polices and programmes. Government, owned firms and outfits should benefits from the budget and serve as pacentter for the private establishment. In the market also government should allow product innovation which is the creation and development of new ideas into a new or an existing product.
  3. According to Sizlagy (1981) executive who attempt to manage without theory and without creative knowledge must trust the existence of the firm to Luck, Intuition and experience” I recommend that both the production and marketing manager of every firm should as a matter of necessity be creative, innovative and productive.
  4. There is no crime in copying what is right. Government should excise a “Laisses Faire” approach in monitoring the economy. Firm should be allowed to copy good Innovation programmes of the advance of the world.
  5. Product should undergo changes from time to time no matter how tangible the change appear to be this will elongate the product life cycle and even ensure product sustenance in the market.

5.5 Suggestion for Further Studies

Having successfully carried out this project, I suggest that further studies should be made on these topics.

  1. Funding or Innovation in Nigeria
  2. Strategies in increase innovation adoption
  3. Product Innovation a strategy to build up small industries.

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