1.1 Introduction
New product can be said to be the life-blood of companies operating in a free market economy. Indeed developing a new product; a company should ensure that a good product development strategy is taken. The introduction of a new product into the market makes it possible for the company to remain in a competitive market environment. In today’s market, no company can favorably win the entire market share without proper and effective development of its products. Product introduction into the market is an important factor of corporate growth strategy and companies that are money – motivated cannot afford to disengage this research of developing new product. New product development has become indispensable and inevitable in an organization; hence its impact cannot be over-emphasized.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.
1.2 Background of Study
The new product development has influence the issue of sales which the researcher will like to assembly the sales of PAN 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 strategies 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.
New product implies original products improvements, products (services) modification and new method of granting loans, Financing, customers’ advice interest rate, mode of payment etc. that the bank developed through its own research and development. Importantly, the recent distress syndrome in compared with the global technological and, economic changes has made the Nigerian banking environment very competitive and dynamic. The development has led to selective purchase or patronage of product and services by customers, especially those that are still skeptical about the longevity of the banks and viability of their 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 PAN 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.
Therefore, in Lagos State manufacturing sector where the research was carried out, the activities that was conducted is to analyze the new products development on marketing strategy on organizational productivity.
1.3 Statement of Problems
Investigation revealed that 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. Talking about new product failure in automobile industries, Peugeot 505 Evolution (Nigerian Innovation/Made) was face out 9 years ago.
1.4 Aim and Objectives of Study
The aim of the study is to analyze the new products development on marketing strategy on organizational productivity in Lagos State manufacturing sector. In achieving this aim, the following specific objectives were laid out as follows:
- To identify the problems encountered in new product development and its introduction into the market.
- To examine the effect of new product development on Lagos State manufacturing sector growth.
- To identify the promotional tools employed in marketing the new product in Lagos State manufacturing sector.
- To examine the impact of new product development on sales volume in Lagos State manufacturing sector
- To find out the purpose of new product development programme of Lagos State manufacturing sector.
- To recommend feasible solutions to the problems stated; in the statement of the problem.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What are the problems encountered in new product development and its introduction into the market?
- What is the effect of new product development on Lagos State manufacturing sector growth?
- What are the promotional tools employed in marketing the new product in Lagos State manufacturing sector?
- What is the purpose of new product development programme of Lagos State manufacturing sector?
- What is the impact of new product development on sales volume in Lagos State manufacturing sector?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: The cost of raw materials is not a set back to new product introduction.
- H1: The cost of raw materials is a set back to new product introduction.
Hypothesis Two
- H0: New product development is not relevant to Lagos State manufacturing sector.
- H1: New product development is relevant to Lagos State manufacturing sector.
1.7 Significance of Study
This research work/study would be of great importance to private investors; intending entrepreneurs; advertisement agencies; students and all other a sundry to product development in the following ways:
- Analyzing the levels of competition in terms of sales; sale patronage between new products introduced into the market and old or existing ones in the market.
- It enhances the evaluation of the impact of advertising on the success and acceptability of a new product in the market.
- It is also significant to investors and entrepreneurs as to when and what to invest into; and invest as well as make suggestions of best product mix.
- It serves as a means of exposing the researcher to the practical aspect of the subject matter also for use as a source of the secondary data for further research work/study.
1.8 Scope of Study
The scope of the research is focused on the analysis of new products development on marketing strategy on organizational productivity in Lagos State manufacturing sector.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this establishment to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
1.10 Definition of Terms
The following terminologies that appear in this study are defined below:
Marketing: The total system of business activities designed to plan, price, promote and distribute want satisfying goods and services to present and potential consumers.
New Product: A good service or idea that is perceived by some potential customer as new.
New Product Development: The development of original products, product improvement, product modification and new brands through the firm’s own research and development efforts.
Product: Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It includes physical objects, services, person, place, organization, and ideas.
