1.0 Introduction
1.1 Background of the Study
Product innovation should be a responsibility of top management. Moreover the extent of the top executive activities involvement in new products is a vital determination of a company's success with new products. To be effectively managed these programmes must be effectively organized. Products innovation is one of the important aspect in marketing. Some evidence suggests that effective product innovations are difficult value to customers timely capable of being exploited commercially through existing capability sand core competence that helps firms develop competitive advantages. Other observers see new products development and its launching into the market place as difficult costly or a dangerous business.
The question that need to be answered are what is innovation?, why so many industries embark on innovation?
Joseph Schumpeter's classic work on management of the innovation process type on innovation and limitation.
He defines innovation as the act of erecting or developing a new products or process idea while they saw innovation as the price of creating commercial products from innovation.
Finally, he defined initiation as adoption of the innovation by similar firms.
However, initiation usually leads to product or process standardization long man dictionary of contemporary English sees innovation as a new idea method or innovation. But according to the universal English dictionary innovation means something newly introduces, it changed new tangles practice while development is a state or process developing growth evolution gradual process or expansion.
The technology revolution and grater competence is domestic and international markets have increased the competitive importance of innovation. Recent research has shown that firms invest more in innovation and also achieve the highest return in investment. In fact positive or receptive investors, attitude toward introducing new products increase the price of the firms stock in the market place as well as the stock exchange, market.
In view of the economic advantage of the product, innovation and the need to stay ahead of the curve innovation must take risk and be aggressive.
Production ahead and innovation, in the price of their competitors in order to maintain a sustainable success in the future. Therefore application of product is a subject which is more recognized.
The fact, that many of the high quality product needed by consumers are not readily available has left consumers into importing some of them. These problems can only be solved if companies recognized the need fro products innovation and develop their innovation ability with government firing economic investment enabling environment where and when necessary. Further more, all products have life cycle which dictate that at some point their usefulness will decline although there is substantial variation in life cycle by types out class of products. Its product cannot live forever, as aging and marketing attrition will work against it innovation. Stanton likened products to people. They are born; they grow, means time and die. in the height of this therefore the need for the application of products innovation by business firm should not be over emphasized.
Demand is increasingly dynamic and its products life cycle are getting short and the true scale of most product is being compresses by acerbated research and technology, rapidly charging markets, mass distribution. If business firms are to survive in the wake of all the social, economy, political and cultural changes that are affecting their business adversely, they must have a capability fro product innovation. A product that effectively most consumers need reduce problem associated with decision on distribution, pricing, advertising and personal selling in most ideal while a poorly developed products on the other hand creates many problems for the other decision areas in the company.
Organization, are always competing among themselves for survival 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 those hope could be achieved through the application of the product innovation.
Innovation both in theory and practice is not a new phenomena in Nigeria, during the olden days people used to drink from animal horn and carons of calabash, bur the local men in Yoruba land started with cups and utensil through brass catering.
This practice was known only to small groups or professional and its often protected and trade secretes by religions sanctions. Today the innovation ideas and practice have spread to other parts of the country and even beyond. Talking the innovation in the industry and economy may write up and statement lend credence to the fact that the idea of innovation need e.g. Adam Smith expanded the relationship between the innovation in machine building industry and the scientist Marx assigned to technical innovations “the driving force in economic development and competition”. According to max” the bourgeoisie cannot exist without constantly revolutionizing the means of production.
Finally, innovation can be highly productive but often risking road to success in most industries to day, any company that is not aggressive alert to innovation possibility in taking a competition risk which it ought at least to be intelligently aware.
1.2 Statement of Problem
Due to rapid change interested technology, and competition, thus becomes risky fro a company to depend on its existing products. This is because consumers taste and references are in most because uncertain and change from time to time.
They are many difficulties involved in products that act as hindrance to their addition to the products line.
One of such factors is the uncertainty in pricing. The question therefore is should firms adopt a skimming pricing strategy or a penetration pricing strategy when introducing a new products into the market? It is also advised that at the early stages in the life span of new products, cost could result. This arises from the fact that management must have employed a good percentage of its resources to product. In addition the supply of raw material and spare parts could become inadequate and or scarce too.
Another area of difficulty in the application of a products innovation is high marketing cost. At the introductory stage of any products, consumers may not be aware of its existing and where it could be obtained.
Aggressive advertising, personal selling and publicity would therefore be needed to accomplish these objectives.
The cost of performing them properly. The competitiveness of the new products at a certain stage in a life span of a products, the market could be characterized by been competitive, if the products lack critical that compare favourable with those of competing products and if the management lacks desired competitive ability to push it, certainly it will gradually die out.
Another problem worthy of consideration in this study has to do with transferability of knowledge. If new products like computer may require technology or say new sales techniques that would require extensive force and middlemen to market the product. It is also advice that money of the management lack the know how and general skills needed to a successful new products development and its subsequent launching into the market due to the ear of failure, risk and uncertainties make them skeptical as regards the implication of products innovation.
1.3 Purpose of the Study
Having identifies the problems of the study has to solve the general objectives or purposes of this work and they are:
- To find out whether there is a signify cant relationship between the sales revenue of a firm products innovation and after innovation.
- To determine the dim pact of product innovation on consumers patronage of a firms products.
- To determine the various wages in which a firms products could be innovated.
- To determine the causes of failure in innovated products.
- To offer solution to the problems of innovative products.
1.4 Research Question
The problem and the objective of the study high lighted above allow the researcher into the following questions:
- Product innovation does it have any effects on the sales revenue?
- Products innovation, does it include or sustain buying response from consumes more than price reduction and promotion?
- Products innovation, does it increase firms profit?
1.5 Statement of Hypothesis
- Ho: product innovation has no effects on the sales revenue figure of the company.
- Hi: Products inn ovation has some effects on the sales revenue figure of the company.
- Ho: Product innovations do not induce/ sustain buying response from consumer more than price reduction and promotion.
- Hi: Products innovation induces sustain buying response from consumers more than price reduction and promotion.
- Ho: Product innovation do not increase firm profit
- Hi: products innovation increase firm profit.
1.6 Significance of the Study
This research work or study will be very useful to the company to understand, find out how the products planning and development is been run.
It will also help them to discover the problem and prospects encountered in products planning and development and to find solution to the problem in order to achieve the firm objectives and goals. It also helps manufacturing firm to improve on their product planning and development. It will also be of great value to the government in the sense that it will help them in gaining advice to the manufacturing firms on the social responsibility of their products to the countries economy.
The society will also benefit or gain from this research project by having access to the products at the right time.
Quality price, this will generate the derived consumers satisfaction and patronage. This research work will be useful to the researcher as it is one of the requirement for the award of Higher National Diploma and the improvement of his or her academic knowledge in the areas of study.
1.7 Scope and Limitation of the Study
The research work which is aimed at investigating the importance of product innovation as an effective strategy tool in a competitive market.
The major problems encountered was the inability to receives adequate cooperation from the staff of the company more especially from the personnel department.
They made things difficult for the research to get the data required to make necessary findings. Further more, the bureaucrat nature of work, existing in the company acted as a constraint during study.
The researcher was also told to get a covering note from the head of department first before going to the department. They actually prevented the researcher from getting all the information needed, also finance acted as a hindrance during the period of this study. The cost of transportation for numbers of days this research work as carried out become a problem to the researcher.
Time factors also contributed to problem there was unwillingness on thee par of the organizational management to release most of the required information for the study. Despite all these constraint, the researcher work was completed.
1.8 Definition of Terms
Products:
Product is anything that can be offered for sales or acquisition through exchange process that bring or lead to satisfaction or bundle of satisfaction that bring about exchange value between the products and the consumer.
Innovation:
It is the process of improving in changing major or establishing new product or new pattern of usage on consumer behaviour.
Product Proliferation:
It is a process of spreading different types of product both in size and authorize in evry part of the market; but the same quality different size.
Product Development:
It is the process of finding the proposal product to requirement and opportunity of the market place, initiating action, toward the identification and production of product/services which will best satisfy the needs of the consumer.
Lunching:
This is the process of introducing new products fully into the market however its after the testing
Product Life Cycle:
The product life cycle is the sales history of a products, it's the stage and product passes before it dies, upstarts from the introduction stage maturity stage and decline stage.
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