The Significance Of New Product Development In A Competitive Marketing Environment (A Case Study Of Lubcon Ltd)
The main purpose of this thesis is to examine the significance of new product development in a competitive environment. In view of this a very popular organization shall be used the Lubcon Ltd.
So because new product development is a key or a major factors to profit maximization in an organization existing in a newly innovated replace or imitative to the market.
So this thesis is divided into five chapters, chapter one is on introduction, background of the study, statement of the general problems, objective of the study, chapter two is on literature review, concept of competitive market, competitive instruments of business organization the concept of new product development reasons for developing new product, Advantages of new product development to business organization, Disadvantage of new product development chapter three includes research methodology, research population and samples research design, data collection instruments administration of instruments, method of data analysis brief history on Lubcon oil, reasons for developing the oil, objective of developing the oil, effects of the oil in the company, constraints to the achievement of the objectives of developing the oil, chapter five is the summary of findings, conclusion, recommendations.
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:
- Would the new brand of product developed by favourably with other products?
- Can the new product enhance profit management of the firm?
- What strategies could be used to penetrate the market with the new product?
- Will the new product developed be accepted by the market?
- 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?
- 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.
- The researcher will have a knowledge about the prospect of new product development, whether a competitive or non-competitive environment.
- It will enable the company to maintain and even increase her market share position and establish a foothold in the future market.
- It will also help the company to know what constitute the needs and wants of it consumers.
- More importantly, the research work will assist the company to identify the strategy that fit marketing of a new product in a competitive environment.
- 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.
1.6 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 Geographical 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 Conceptual 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.
Summary, Conclusion and Recommendations
5.1 Summary of Findings
From the research conducted to find out the significance of the new product development in a competitive environment as regards to LUBCON LTD, Ilorin plant. The management planned before they lunched the liquid detergent i.e. for safe wash, but the data collected from consumer. The consumers recalled that the management does not make use of television as a means of advertising. Also, they said that the management could have also make use of so as to exhibit the physical attributes of their new product.
It was deduced from the research that despite all the significant effects of advertisement on the consumer; most of the consumers were not satisfied with the colour, price and the quality of the new product of LUBCON LTD, through the oral interview conducted with consumers after collecting the questionnaire, it was revealed that the occurrence of dissatisfaction with the colour, price and quality of the new products is due to lack of proper planning. As a result of this, it will give way for LUBCON LTD Company to win the lion share of the market in the long run.
The people that got to know about the existence of the new products of LUBCON LTD. Ilorin plant, got the information from friends.
Those that got to know through television have know the percentage i.e. The company does not even make use of television as a means of creating awareness.
Meanwhile; they must include the use of television as a means of creating awareness so as to display the true attributes of the new product. By doing this, It will enable the product to easily move to the growth stage in its life cycle.
Most of consumers are not satisfied with the colour, price and quality of the product. The company should endeavour to study the target market in order to identify their needs and desires and to produce products of high quality that will distinguish if from other competitive products.
Hither to Lubcon Ltd, should improve in intensive marketing research in order to find out alternative approaches over the competitors and attain a high rate of return, besides staff must be given more incentive for effective result.
It therefore becomes imperative for the company in a competitive environment to properly company with the planning process highlighted on chapter (2) and recommendation given in this research work.
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