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Abstract
The study examines new product development and Performance of consumer goods. The survey research design was adopted for the study. In the course of carrying out the study, the primary and secondary data sourcing methods were adopted. The primary and secondary data was adopted for the study. The population of the study is unknown. The sample size is sample size of 120 respondents from Innotex Global Ventures Trans-Amadi, Port Harcourt. The statistical test used in the testing of the hypotheses was Pearson Product Moment Correlation Coefficient. The data collected were processed electronically using Statistical Packages for Social Sciences (SPSS Version 22). Our findings revealed that new product development dimensions such as product design, product innovativeness, product quality, etc. affects the performance. Based on these, it is recommended that Innotex Global Ventures should always analyze their environment through research in order to identify new market opportunities to develop appropriate products to meet the changing needs and wants of customers. Innotex Global Ventures should ensure that the quality of their products meets the expectation of their customers in the local and international markets since their product quality is a strong and significant factor in the firms’ marketing strategy and performance.
Table of Contents
Cover Page i
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Abstract i
Table of Contents ii
List of Tables iv
List of Figures v
CHAPTER 1 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 4
1.4 Research Questions 5
1.5 Research Hypotheses 5
1.6 Significance of the Study 5
1.7 Scope of the Study 6
1.8 Limitations of the Study 6
1.9 Definition of Terms 6
CHAPTER 2 8
REVIEW OF RELATED LITERATURES 8
2.0 Introduction 8
2.1 Conceptual Framework 9
2.1.1 New Product Development 9
2.1.2 Dimensions of Product Development 13
2.1.3 Sales Performance 16
2.1.4 Measures of Sales Performance 18
2.1.5 New Products Development and Sales performance of Organization 20
2.2 Theoretical Framework 22
2.3 Review of Related Empirical Studies 24
2.4 Summary of Review of Related Literatures 25
CHAPTER 3 26
RESEARCH METHODOLOGY 26
3.1 Research Design: 26
3.2 Population of the Study 26
3.3 Sampling Techniques Used 26
3.4 Sample Size 26
3.5 Sources of Data 27
3.5.1 Primary Source (s) of Data 27
3.5.2 Secondary Sources of Data 27
3.6 Research Instrument for Data Collection 27
3.7 Validity and Reliability of Instrument 28
3.8 Techniques for Data Analysis/Test of Hypotheses 28
CHAPTER 4 29
DATA PRESENTATION AND ANALYSIS 29
4.1 Questionnaire Distribution and Retrieval 29
4.2 Data Analysis and Presentation 29
4.3 Descriptive Statistical Analysis 31
4.4 Hypotheses Testing 34
4.5 Discussion of Findings: 35
CHAPTER 5 37
SUMMARY, CONCLUSION AND RECOMMENDATIONS 37
5.1 Introduction 37
5.2 Summary 37
5.2 Conclusion 38
5.3 Recommendations 38
Bibliography 40
Appendix I 45
Appendix II 46
Questionnaire 46
List of Tables
Table 4.1: Questionnaire Administration and Retrieval 29
Table 4.2: Age of Respondents 29
Table 4.3: Sex of Respondents 30
Table 4.4: Academic Qualification 30
Table 4.5: Product Innovativeness and Performance of Consumer Goods 31
Table 4.6: New Product Quality and Performance of Consumer goods 32
Table 4.7: Product Design and Performance of Consumer Goods 33
List of Figures
Fig. 1: A Conceptual Framework Showing the Relationship between Relationship Marketing and Sales Performance………………………………………………………………………………9
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
From the marketing standpoint, the socio-economic justification for the existence of any business organization is the satisfaction of customers’ needs and wants. The organizational survival over-time depends on its ability to create loyal customers because its products match the needs of the buyers. Thus, the organization meets its basic responsibility to the society through its product offerings. For a firm to compete effectively in the dynamic and competitive business environment and achieve set goals in terms of profitability, high sales volume, and large market share, it must continuously develop products and product lines to satisfy the constantly changing desires and needs of customers (Grundiche, 2004).These Organizational adjustments in response to new customer preferences even make it necessary to modify existing products, introduce new ones or eliminate products that are unsuccessful. Product development is a broad field of endeavour dealing with design, creation and marketing of new product (Yanelle, 2005).
It encompasses product planning as well the technical activities of product research, engineering design, etc to take advantage of potential opportunities facing a company’s product idea in a market. Product development is very critical to organizational performance because the product is the cornerstone of the firm’s marketing mix: every other element rests on the product. Product is not used to mean only tangible ‘things’, but includes services (the intangibles) as well as things that can be touched and seen and tasted. This explains why Kotler (1994:434) sees it as a bundle of physical, service, and symbolic particulars expected to yield satisfaction or benefits to the buyer.
Since the purpose of product development is to provide satisfaction for customers and to face competitive threat, every marketing organization such as the breweries is in a highly dynamic situation. This is because customers’ needs are constantly changing. Their incomes, lifestyles, level of education, sophistication and technology are dynamic and not static. Therefore, their marketing policies have been dynamic, not static, and the products offered to the market have come constantly under review and frequent changes. Market analysis has shown that many breweries in Nigeria have introduced many innovations in their product development strategy (Etuk, 2003:88). Products are packaged in big and small bottles, cans with many lines and depth.
Product management assists organisations to plan, ensure repeatable sales and market-driven products and services to suit the needs and wants of the customers (Johnson, 2009). Past studies have indicated that many large companies have a high product failure rate of new product development at more than 65 per cent (Adams, 2010). One of the reasons for the failure is the introduction of a nun attractive new product in the market (Euchner, 2008).New product development is a difficult process but it has been identified as an important precursor to performance (Bendoly, Bharadwaj & Bharadwaj, 2012). As highlighted by Im and Rai (2008), organisations have come to realize the importance of new product development for a company to survive in this competitive environment.
In addition to that, past studies have posited that new product development is a complex or higher-order capability that involves multiple organisational functions and competencies that are used to enhance organizational performance (Mishra & Shah, 2009). There are many new products that are available in the market. Nonetheless, not every new product in the market is successful. Surveys have shown that there are high failure rates in new products which range from 33 per cent to over 60 per cent and this has not improved in the last decades (Adams, 2010).Furthermore, almost 90 per cent of the new products introduced in the market did not achieve their company’s business objectives (Yahaya & Bakar, 2007).
On another note, having a good relationship with customers is a crucial criterion in improving the business performance of an organisation. Maintaining good customer relationships helps enhance customer satisfaction and this in turn results in better company performance (Lo, 2012). Past studies posited that in every country, customers have ended at least one relationship per year and nearly two-thirds of the customers who have ended a relationship with a company turn to their competitors (Genesys, 2009). Hence, it is timely to investigate the relationship between new product development and its sales performance in the Innotex Global services.
1.2 Statement of the Problem
A close observation of the marketing firms in Nigeria shows that the post mergers acquisition era in the sector has witnessed phenomenal growth as typified by the performance of consumer goods marketing firms is possible by product development (Ojo, 2000). However, other breweries have not been able to operate optimally. This, therefore, suggests that organizational sales performance, which refers to how well an organization is doing in relation to intended purpose and competition, might depend to a large extent on product development. But this has not yet been ascertained, as the situation in the Nigerian appears not to have stimulated interest among researchers and academics in the Nigerian intelligentsia. This might have been informed in part by the apathy, levity and jaundiced perception with which many scholars treat the beer industry in Nigeria. Undeniably, the industry has made meaningful contributions to our gross domestic product (GDP), employment generation, sport sponsorship and promotion of Nigerian music and artistes (Mousend and Thompson, 2002).
In the light of the achievement of few breweries and the dismal performance of others which are still struggling to find their feet and rhythm in the Nigerian business environment turbo-charged by competition, volatility and unpredictability, it is necessary to direct empirical search light on this Industry, which can provide information on product development and organization sales performance in the sector, thereby enriching existing literature. In Nigeria, apart from the perceived high performance recorded consumer goods marketing firms have not been able to operate profitably, example, Innotex Global services, which has been reactivated recently.
This tends to imply that the successful breweries might have used effective product development strategy to achieve corporate goals and objectives. It equally implies that product failure in other breweries might have been informed by ineffective product development. However, these beliefs, hunches and conjectures have not been clearly substantiated by a concerted empirical effort, thus creating a yawning gap in existing literature which needs to be bridged. It is as a result of this background that this study is designed to evaluate the impact of New Product Development and Sales Performance of consumer goods. Our focus is directed Innotex Global services Port Harcourt.
1.3 Objectives of the Study
The main objective of the research work is to determine the impact of new product development on the performance of consumer goods. However, the specific objectives are:
1. To examine the relationship between new product quality and performance of consumer goods
2. To examine the relationship between product innovativeness and performance of consumer goods.
3. To examine the relationship between product design and performance of consumer goods.
1.4 Research Questions
The following questions will guide the researcher in the course of his investigation.
1. To what extent does new product quality relate with performance of consumer goods?
2. To what extent does product innovativeness relate with performance of consumer goods?
3. To what extent does product design relate with customer loyalty relate with performance of consumer goods?
1.5 Research Hypotheses
Based on the research questions, the following hypotheses are formulated.
H01: There is no significant relationship between product quality and performance of consumer goods.
H02: There is no significant relationship between product innovativeness and performance of consumer goods.
H03: There is no significant relationship between product design and customer loyalty and performance of consumer goods.
1.6 Significance of the Study
This research work is significant in many ways. Academically, the findings in this research will contribute to the existing body of knowledge as a referral material and will help illuminate on the role of product development and how it influences sales performance of organization. Scholars and future researchers will find this work beneficial because it is bound to contribute information, and enlighten them on the usefulness of product development.
To professional and/or marketing promoters, this research work will stimulate competitions among them and enhance market standardization of goods or products.
1.7 Scope of the Study
The scope of this study is on new product development and sales performance of consumer goods. The content scope of this study includes product development (which include product design, product quality, product innovativeness, etc) and sales performance (which include firm image, brand strength, customer loyalty and satisfaction, etc). This study was carried out in Innotex Global Ventures, Trans Amadi, Port Harcourt.
1.8 Limitations of the Study
In carrying out this research, the researcher encountered the following constraints, which are
Time: The time given to the researcher is not sufficient enough to carry out a thorough research. The researcher had limited time to complete the research. Combining lectures hours with the research work is indeed time demanding.
Finance: Fund is very necessary and paramount for a successful research, but the researcher did not have all the necessary funds to move from one place to another to source for data and research materials.
Attitude of Respondents: The researcher faced difficulties in collecting information from the respondents. Some refused to give out the right information while some bluntly refused to respond to any question asked.
1.9 Definition of Terms
Products: Anything tangible or intangible that can be offered to the market for attention, acquisition and consumption.
Product Quality: The standard of a product when comparing with other products
Product Design: The general arrangement of the different parts of a product.
Product Innovativeness: Product newness, product advantage, product-company fit and innovation-market fit.
Firm Image: An intuitively appealing concept where a favourable image can boost sales through increased customer satisfaction and loyalty.
Brand: A product’s position in the mind of the customers.
Customer Satisfaction: This indicates how well the product-use experience compares to the customer’s value expectation.
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