Complete Material Cost #3,000
Order for Complete Material now
ABSTRACT
The purpose of this study is to examine technology and new product development in Nigeria manufacturing industry (a case study of some selected companies in Rivers State). To achieve the objectives of the study, the researcher took extensive review on related literature, and utilized the Bourley and Yaro-Yemen’s sampling technique to determine the sample size. Out of which a sample size of 100 respondents from the population of 135 respondents in selected companies in Rivers State. Out of the 100 copies of questionnaire distribution 90 were retrieved. Simple percentage and frequency distribution tables were used to analyze the data. The research was guided by three (2) hypotheses were formulated and tested, using the Chi-square statistical tool. It was found that a properly developed technology in new product improves customer’s satisfaction as well as high customer retention. Base on the findings, it was recommended that companies in Rivers State should adopt the concept of technology in new product development which implies that the dominant firm, market leader, market follower or competitor refuses to be content with the status quo; that it wants to continue to outperform itself and the industry by being the source of new product ideas and customers services which are only achieved by exercising initiative, setting the pace and capitalizing on competitors’ weaknesses in order to achieve a strategic positioning in the market and thus mobilizing its resources to full capacity, which will finally result to growth and development both to the organizations and the national economy.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Globalization has increased the competition in the marketplace. Consumers are given a wide choice of products and services, with lower prices and better quality. Adding to that, the demand for new, better and cheaper products and services makes it hazardous, difficult and expensive to stay ahead of the race. To stay ahead of increasing competition, innovators are now working on the development of an ecosystem of new products. New Product Development (NPD) process has always been a vital part of an organization’s business practices. NPD is a main driving force of a firm’s competitiveness. Driven by the globalization of markets, technological advances and ever-changing customer needs, product innovation is now the number one plank in many companies‟ tactical platforms (Cooper, 2000)
Productions of goods and services in the world today have been greatly influenced by the systematic application of physical forces through different types of technology. Technology in most organization provided the required forces through various forms by which goods and services were produced. This to Dauda (2009) may be in forms of machine equipment information and communication made up of knowledge, tools, method and system directed to work in specific manner. Technology is made up of the hardware, the software and the brain ware. The hardware is the physical structure and logical of equipment, the software is knowledge and method used for production or output from the hardware and the brain ware is the reason for using the technology in a particular way. All these depend on a particular way. Khalil (2000) sees technology to be the result of man’s learned and acquired knowledge or his technical skills regarding how to do things well.
The state of technology determines the quality and quantity of goods and services produced. Organizational and national conditional performance and development are determined by the state and types of technologies. Technology also influences living conditions of individual and groups in organizations and nations and the relationship between them. Technology is prone to change, and the state of technology have direct link to the relationship between the employer and employee. Technology, labour and capital are interconnected. Some technology use a lot of labour and some use more of other equipment or capital. Investors and manage based their selection or the quantity of both to their price and prefer or choose the one with lesser price to maximize their profit.
New Product Development process allows firms to deal with progressively intensive competition when facing challenges from rapidly changing market condition. Companies try to gain sustainable competitive advantages with continues innovation. These effort are critical for the companies because introducing a new product to the market is expensive and challenging due to acquiring new knowledge and technologies and implementing new processes.
New Product Development is a business and engineering term, which describes the complete process of bringing a new product to the market. In other words, New Product Development is the process of designing, creating, and marketing an idea or product. The product can either be one that is new to the marketplace or one that is new to your particular company, or an existing product that has been improved. In many instances, a product will be labeled new and improved when substantial changes have been made.
According to Kotler (2006:633), a product is anything that can be offered to a market to satisfy a want or need. However, product is much more than just a physical object. It is the complete bundle of benefits or satisfactions that buyers perceive, they will obtain if they purchase the product. It is the sum of all the physical, psychological, symbolic, and service attributes.
In the words of Stanton, (2001:121), a Product is a set of tangible and intangible attributes which the buyer may accept as offering wants-satisfaction. For instance, in the Nigerian Soft drink industry we have products such as Malta Guinness from Guinness Nigeria Plc, Maltina drink from Nigerian Breweries Plc, Mirinda from 7 UP Nig. Plc; in the detergent sector, there are Elephant Blue Detergent from PZ industries Plc, and Omo, Key Soap, Loyco, Blue Band, Lipton Yellow Label Tea, Knorr (Acquired in Dec. 2005 from Cabury), Pears Baby Care, Lux, Vaseline, Close Up, etc from Unilever Nigeria Plc.
1.2 STATEMENT OF THE PROBLEM
Since the advent of the industrial revolution, business environment has become sensitive and highly competitive. In order to survive and achieve their goals and objectives, it behooves business organizations to systematically adapt to changing needs of the consumers and create products that meet their yearnings and desires. Successful New Product Development is necessary for the survival of marketing organizations. It is however a challenging and risky business, often because of the following reasons.
It is a common knowledge in Nigeria to see a lot of organizational resources committed into product ideas that have not undergone proper research, especially market-based research. As a result, it is either that the product fails out rightly or gains marginal success. No wonder we have so many of such products wasting in the market places begging for demand. When a product idea carries a weight of benefits to give to the market, even the market will be anxiously waiting for it to be launched.
Besides proper research into developing a quality product, there is also the need for a wide range of management activities of the product from its conception to maturity or until it is being disposed. Such management activities include providing appropriate strategies for pricing, promotion distribution as well as on-going support to customers who have purchase the new product.
New Product Development requires enormous funding, even from the stage of idea generation and up to the time such product is withdrawn from the market. It is expected that the management, having determined the source of financing the New Product Development project, prepares in advance an estimated cash flow statement on the project based on estimated sales revenue and the total cost involved. They (management) should also prepare a contingency budget to take care of all exigencies so that the variances and discrepancies would be brought to light.
New Product Development imposes a greater task on the manufacturers/producers to strive in satisfying their customers and retain their loyalty if their goals and objectives are to be achieved, this calls for a good leadership. And given that the project (new New Product Development) requires enormous funding, management should adopt both short and long term marketing programs to ensure that a new product survives its cycle profitably.
New product, for the purposes of this work, will include original products, improved products, modified products and new brands that the firm develops through its own Research and development efforts. The development of a new product should be a continuous process and should be given serious management supports for the survival of business organizations.
1.3 OBJECTIVES OF THE STUDY
The objective of this study is to examine technology and New Product Development in Nigeria manufacturing industry (a case study of some selected companies in Rivers State). The specific purpose are;
- To determine the relationship between technology and New Product Development
- To determine how technology influence New Product Development
- To determine the impact of technology, skilled manpower on New Product Development.
- To identify critical success factors of New Product Development in technology based.
- To identify the impact of New Product Development on profitability of an organization.
1.4 RESEARCH QUESTIONS
- Does technology has impact on New Product Development.
- In what ways can technology influence New Product Development?
- How do technology, skilled manpower, management support and adequate capital impact New Product Development?
- What are the critical success factors of New Product Development in technology based?
- To what extent can New Product Development and management determine the growth, survival and profitability of an organization?
1.5 SIGNIFICANCE OF THE STUDY
Certain factors or conditions are necessary for rapid economic and industrial development in any society. One of such factors is Research! If Nigerian companies could invest in research for New Product Development in Nigeria, high quality products would likely be developed which would apart from satisfying the wants of the consumers, also help to employ our local resources, such as machinery, raw materials and labour thus steering towards economic and industrial growth and development.
This Research Study would try to unfold reasons why new products fail or succeed in the market place and this will help the marketers to know why consumers accept or reject new products or why they prefer old/existing products. The study would also try to discover what influences the consumers have and how they arrive at a purchase decision for new products. Besides, it would help organizations that intend to introduce new products into a developing economy like Nigeria to know how to analyze the consumer and competitor factors. This research study will be relevant to academic institutions, Libraries and various organizations as it intends to look into the problems of growing social and governmental constraints associated with New Product Development and management with a view to proffering solutions. More importantly, this research work will be of great significance to the Nigerian economy and society at large. Any economic environment with high level of healthy business competition usually breeds high quality products, its continuity, availability and sustenance of which lead to economic boom.
1.6 HYPOTHESES OF THE STUDY
Ho 1: There is no relationship between technology and New Product Development.
Ho2: The technology and New Product Development does not influence customer satisfaction and retention.
1.7 SCOPE OF THE STUDY
The scope of this research work is limited to selected companies in Rivers State, with the main area of concentration being Unilever Nigeria Plc, PZ Nigeria Plc, Guinness Nigeria Plc, and Nigeria Breweries Plc.
1.8 LIMITATIONS OF THE STUDY
The researcher encountered some problems in the course of carrying out this study. These are:
FINANCIAL CONTRAINTS: The researcher has not enough money with which to carry out the study. Being sponsored by civil servants, it was difficult for them to provide the researcher with sufficient funds and this affected the research work.
TIME CONSTRAINT: The time given for the submission of the research work coupled with academic work was too short.
LACK OF RELEVANT MATERIALS: There was scarcity of materials on the area of study.
1.9 DEFINITION OF TERMS
TECHNOLOGY: According to Dauda (2009) technology may be in forms of machine equipment information and communication made up of knowledge, tools, method and system directed to work in specific manner.
PRODUCT: According to Kotler(2006:633), a product is anything that can be offered to a market to satisfy a want or need. However, product is much more than just a physical object
NEW PRODUCT DEVELOPMENT: New Product Development is a business and engineering term, which describes the complete process of bringing a new product to the market
PRODUCT MANAGEMENT: Product (or service) management includes a wide range of management activities, ranging from the time that there’s a new idea for a product to eventually providing ongoing support to customers who have purchased the new product.