(A CASE STUDY OF THOMPSON AND GRACE PHARMACEUTICAL LIMITED, PORT HARCOURT, RIVERS STATE)
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ABSTRACT
The study examines effective product planning and development strategies for achieving increased market share. The objective of the study is to find out strategies which companies used for planning and developing product to achieve a competitive edge, to find out the extent to which these strategies are effective, to know if the new product is acceptable to the consumers, to find out how distributors evaluates the product and to recommend what the company would do to further enhance the marketing and maintain a competitive edge. The descriptive survey was adopted. The sample size was made of 75 respondents from Thompson and Grace Pharmaceutical limited, and questionnaire was used for collection. The simple percentage was used to analyze the research question and the chi-square to test used to test hypothesis. Findings revealed that the strategies used to introduce product into the market has been successful. And the strategies enhance consumer’s intention to buy new product. Based on the finding of the summary, conclusion and recommendation were made that company should train its production and quality control departments on how to maintain the existing quality of the product, so that it will attract patronage both from the existing consumers and new ones, the company should from time to time study the reports of its sales force as it relates to what is happening in the field, the company should carry periodic research to ensure that the performance or result of the new product did not deviate from the standard or targeted performance, and the company should provide sufficient follow up effort by training the marketing personnel for the product and the new market.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Launching new products to the market quickly is a prerequisite for acquiring a competitive advantage. Today, even some product development managers face intense pressure to bring world-class products to market in record time. Many factors contribute to this pressure, including acceleration in the rate of technological development, improved mass communication, more intense competition due to the maturing of markets and globalization, fragmentation of the marketplace due to changing demographics, shorter product life cycles, and the escalating cost of R&D (Ali et al., 1995). This accelerated rate of product obsolescence increases the need to develop new products quickly enough to ensure timely introduction during the product life cycle (Coredero, 1991). To be successful, perhaps even to survive, a company must master product strategy and skillfully navigate through proper development, and application and management of a product strategy that separates enduring success from failure (Mcgrath, 2000) Conventional new product strategies often do not provide a sufficiently flexible perspective for analyzing the determinants of success in a highly competitive environment (Calantone and di Benedetto, 1990).
It is the customer that determines what a business is, for it is the customer and he alone, who through being willing to pay for goods or for services. Convert economic resources into wealth, things into good.
Any business must find out what its market is, who the customer is, where he is, what he considers value, what his unsatisfied wants, how does he buy and how can he be reached, it is the duty of the company to provide what the customers need.
The main function of a company is marketing and innovation. Marketing is distinguishing the unique function of the business. A business is set apart from all other human organization by the fact that it markets a product or service.
Any organization that fulfils itself through
- Marketing a product or service is a business and any organization in which marketing is either absent or incidental is not a business any should never be run as if it were one.
The duty of marketing starts at the beginning rather than the end of the business because through its studied and researches will establish. What the customer wants in a given period or season, what price he is willing to pay in a given product, have authority in product planning, innovation which is the last function of a business is the provision better and more economic goods and services.
It is not enough for the business to provide just any economic goods and services, it must provide a more better one.
Innovation goes right through all phases of business it may be innovation in design, in product planning to achieve a better market share, in marketing techniques, in price or in service to the customer.
1.2 STATEMENT OF THE PROBLEMS
To be successful, perhaps even to survive, a company must master product planning and development strategies and skillfully navigate through proper development, and application and management of a product strategy that separates enduring success from failure. Conventional new product strategies often do not provide a sufficiently flexible perspective for analyzing the determinants of success in a highly competitive environment.
Although previous research has investigated the concept and contents of new product performance and product planning and development strategies, there is still no consensus on decisions related to how a launch strategy is selected and formulated. Moreover, while other success differentiators have been researched extensively, studies that derive the details of product planning and development strategy, and the formulation and selection of strategies are few in number. It is on that note that the researcher found it necessary to examine effective product planning and development as strategies for achieving increased market share.
1.3 OBJECTIVES OF THE STUDY
The main objective of the study is to examine effective product planning and development as strategies for achieving increased market share. The specific objective are as follows:
- To find out strategies which companies used for planning and developing product to achieve a competitive edge.
- To find out the extent to which these strategies are effective.
- To ascertain if the new product is acceptable to the consumers.
- To find out how distributors evaluates the product
- To recommend what the company would do to further enhance the marketing and maintain a competitive edge.
1.4 RESEARCH QUESTIONS
- Do companies use strategies in planning and developing products to achieve a competitive edge?
- Are these strategies effective as to give the company competitive edge?
iii. Are the new products acceptable to the consumers through these new strategies?
- Are new products been evaluated by the distributors?
1.5 HYPOTHESES
Based on the objective of the study the hypotheses are stated as follows:
HO: There is no significant impact of product planning and development strategies for achieving market share.
HI: There is a significant impact of product planning and development strategies for achieving market share.
1.6 SIGNIFICANCE OF THE STUDY
The significance of the study cannot be over emphasize., The study enables manufacturing companies see the need for planning and development strategies in the day to day manufacturing activities. The study will also reveal the need for improvement in the use of various marketing strategies so as to satisfy the demanding, desires of their customers and compete with their counter parts in the manufacturing sector.
The recommendations made by the researcher will enable the company to implement further strategies aimed at changing the situation. Also the finding of the study will equally benefit the consumers by ascertaining whether the new product has been accepted or not. The acceptance of a new product depends solely on its quality and performance and product quality entails. Considering the level of quality control consumers desires the quality of new materials required to produce such product, the level of consumers frame of experience and desire and source or availability of competitive or rival product for the consumer.
Where the study establishes that the new product is found wanting in any dimension.
This will ensure that the consumers are given the satisfaction they want or looking for in the product.
Another are where the study will services as a good purpose is in the area of distribution.
This will also be beneficial to students that will carry out further research work and also to Government for policy making implementation.
1.7 SCOPE OF THE STUDY
This study was carried out in Rivers State and centered on evaluating the effectiveness of the strategies used by Thompson and Grace Pharmaceutical limited in planning and developing Sebamed Anti-Aging cream, Sebamed Gentle facial scrub and Sebamed Liquid face and Body Wash. The study also evaluated the extent of acceptance of this new product by the consumers.
1:8 LIMITATION OF THE STUDY
The study is limited to the following limitations:
The level of frankness in response to questions by the respondents is quite doubtful.
Fear: Afraid of the corporation from those I am going to interview for my reach data.
Time: The time allocated to the research work was not sufficient to give room for further intensive work on the field of study.
Organization Policy: Policies of the organization limited the level of information received. The personnel of the firms were not willing to give information, stating that it was against the organization’s policy.
1.9 DEFINITION OF TERMS
Strategy: A plan of action or policy designed to achieve a major or overall aim.
Product: An article or substance that is manufactured or refined for sale.
Market: A regular gathering of people for the purchase and sale of provisions, livestock, and other commodities.
Distributor: An agent who supplies goods to stores and other businesses that sell to consumers.
Introduction: The action of introducing something.
Marketing: The action or business of promoting and selling products or services, including market research and advertising.
Market Share: The portion of a market controlled by a particular company or product.
Planning: The process of making plans for something.
Development: An event constituting a new stage in a changing situation.
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