1.0 Introduction
1.1 Background of the Study
Production innovation is one of the important concept in marketing some evidence suggest that effective product innovation results to a sustainable competitive advantage. This is true when innovations are difficult for competitors to initiate to provide significant value to consumers timely capable of being exploited to competencies that help firms in the world develop competitive. Other observes see new product development and its launching into the market place as difficult costly tasks or a dangerous business to attempt.
The questions that need to be answered are what innovation? Why do firms embank on innovation? Joseph Shcumpeter's classic work in management of the innovation process suggests that firm engage in three types of innovation activities they are invention, innovation and initiation. He defined invention as the act of creating or developing a new product or process idea while he saw innovation as the process of creating commercials product from invention.
However, initiation usually leads to product or process standardization. The technical revolution and greater competition in domestic and international markets have increased the competitive importance of innovation. Recent research is shown that firms invest more than in innovation and so achieve the highest returns of investment infact, objective or receptive inventors' article towards introduction of new products increase the price of the rims stock in the market place as at the stock exchange market.
In view of the economic advantage of product innovation and need to stay ahead of the curve, innovator must take risk and be aggressive, productive ahead and innovative in the face of their competitors in order to maintain a sustainable success in future,
Therefore, product innovation as a subject, which is more recognized vital to the future of companies the fact that money of the high quality products needed by consumers are not readily available has lead consumers into importing some of them. This problems can only be sold, if companies recognize the importance of product innovation and development enabling environment and when necessary.
Further, all products have life cycles, which dictate that at some point their usefulness will decline. Although there is substantial variation in life cycles by tyoe and loss of products a product are like living organisms and have certain length of life according to Cardiff and still (1971) once a product is introduced into the market, they grow, nature, decline or die hues, products cone and go as living organisms.
Demand is increasingly dynamic and product life cycle is getting shorter than the time scale of most technology rapidly changing markets, mass media, mass distribution. if business firms are to survive in the wake of all these social economic political and cultural changes that are affecting their business adversely, they must have capability for product innovation. A product at are effectively meets consumers needs, reduces problems associated with decision on distribution rising and personal selling is most ideal while a poorly developed product. On the other hand relates many problems. For other decisions areas in the company organization are always competing among themselves for survival, market growth, market share, product line and product mix.
All these are necessary strategies for survival. Which are the overall objective of any corporate entity. All these hope could be achieve through the innovation of product. Talking about innovation in the industry and economy, many write ups and statements land credence to the idea ‘of innovation in machine building industries and scientists mark assigned to technical innovation “ the driving force in economic development and competition according to mark “the bourgeon is “cannot exist without constantly revolutionizing the means of production”
Finally, innovation can be highly productive, but lifer a risky road company that is not aggressively, alert to innovation possible to taking a competitive risk which is output at least to be intelligently aware.
1.2 Statement of Problems
Given the rapid changes in testes, technology, and competition, it becomes risky for a company to rely on its existing products. This is because consumers taste and preference a re in most cases uncertain and change from time to time. Every company in the world today therefore, needs to innovate their product in order to survive in the ever-changing business environment.
There are many difficulties involved in product innovation and marketing of new product that act as hindrances to their addition to the product line, one of such factors is the uncertainly in pricing. The question therefore is should firms adopt a skimming pricing strategy or a penetration pricing strategy when introducing a new product into the market?
Another problem of product innovation is higher marketing cost. At the introductory stage of new product, consumers may not be aware of its existence and where it could be obtained Expensive promotional tools would be needed to accomplish this objectives.
The competitives is world of market. Also proses huage challenge to a new product, at a certain stahe in the spean of a product, the market could be characterized by keen competition, if the product lacks critical altituse that can compare favonably with hose of competing products and if management lacks desired competitive ability to push it, certainly it would gradually die out or perish. It also found out that many to management lacks know how and general skill needed for a successful new product development. The fear of failure, risk and uncertainty make flam skeptical as reqrads to product innovations.
1.3 Objective If The Study
The objective of this study is to appraise the relevance f product innovation as a strategic tool in a competitive market and specifically the objection of the study are:
- To find out the level of product innovation undertake by the firm
- To determine the impact of product innovation on consumer patronage of the firm
- product
- To determine the various ways in which the firm undertaken in product innovation
- To determine the causes of failure of innovated product.
- To offer solution to the problem of innovative products.
1.4 Research Question
The following research questions guides this study:
- What level of product innovation is undertake by the firm
- What is the impact of product innovation on consumer patronage of the firms product.
- What are the various ways in which the firm undertaken product innovation.
- What are the cause of pan lure of innovation
- What can be offered as solution of the problem of innovative products.
1.5 Significance of Study
Cetain reasons are usually advanced in support why organizations need to develop new products of reasonable intervals as a result of competitive reaction in the market. The introduction of new technology of often in the certain industries alsohelps in the shortening of the useful life of certain product . due to the facts mentioned, it becomes very important that firms should always be ready to devlop new product replace in existing ones before they are withdrawn from various markets.
The need for new product development can also be seen when we realize that 30 to 40 percent of a firms current value sales and products do come fromproducts that were not in the firms prouduct portion five years age Bus and Houston (1985) new product development can also beas a result to either to utilize exless plant capacity; or as a need to derive enough prouducts to take care of the seasonality in soled.
1.6 The Scope of the Study
The researcher undertook a study Nigeria plc Aba. This study concentrated on the innovation on already existing product. The researcher made use of data obtained from the staff and mangers from the staff and managers from marketing production finance and administrative department, also include in the study were consumers of the firms product in Aba.
1.7 Limitation of Study
Apparently, there is no academic ride that tells the clarity, the future behavour of the target public towards an innovation since, the public or the consumers are the target or the subject for the product innovation, in adequate analysis of the Further cause over or under production, to meet to up with the demand created in the market other limitation could be for the following reasons unforeseen hidden product deficiency during production, which only came up during usage by users.
Another one could be unforeseen changes in consumers taste and preference immediately the product was introduced. When project cost is higher than actual. This may result it higher selling prices, and which discouraged sales volumes. If competitors find it very lays to introduce their own brand of product almost alongside the new landing of the product at the wrong time.
1.8 Definition of Term
Product:
Is anything of value, capable of satisfying a consumer want or need. The most important measuring of a product is what it manes to the consumer
Product Innovation:
This is any change or any additional model to already existing product of a firm or a company.
Product Life Cycle:
This is stages in the sale and profit history of a product, after which it has been introduction into the market. A product after it introduction, can grow, mature, decline or die like living organism.
Product Line:
Is a group of products that closely related either because they satisfy a class of need used together sold to the some customer group marketed through the same outlet or fall within the price range.
Launching of Product:
This is an act of introducing a new product into market.
New Product:
Is a product newly introduced to the market or a modified product.
Strategy:
The word strategy in this project rely mostly on marketing strategy, strategy is a method or factice use/way of achieving the goals of an organization.
Marketing Strategy:
This is a way of achieving the marketing objective of a company or an organization.
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