THE IMPACT OF NEW PRODUCT DEVELOPMENT ON THE SURVIVAL AND GROWTH OF A FIRM (A STUDY OF GUINNESS PLC ABA, ABIA STATE
ABSTRACT
This research work was under taken to elict data in the impact of new product development on the survival and growth of a firm using Guinness plc Aba, Abia state as a case study. The research work is aimed at providing insurers to the problems facing the company like inadequate management of the company in the area of developing new product, the strength in spreading out their product to be available every where and inadequate distribution strategy used in the distribution of their products. It also enabled the researcher to find out the impact of new product development of the firm to the environment, to know the position of Guinness plc among its competitors. The researcher also find out that the management of the company especially in the new product development sector is not adequate and the company do not have the strength and enough capabilities in spreading the customer satisfaction. Further more, it finds out the impressive area in which the management, staff and consumers have made to make the company to grow and survive among its competitors through product innovation and /or new product development.
CHAPTER ONE
1.1 BACKGROUND OF STUDY
New product development is one of the avenues of enlarging the size of the products portfolio of any organization. A new product one that is new to the company, but not necessary new to the market where the general product may already exist. The introduction of truly innovative products is of race occurrences in Nigeria.
The reasons are that most of our manufacturers are following the strategy of import substitution.
New product is one which is either newly introduced to the market or a modified product. The newness of a product is seen from customers ot consumers point of view. Little wonder then Baker (1980:20) indicated that a new product could be considering anything which is perceived as such by the consumer, or with which the firm has no previous experience. New product therefore could be seen in the following light –existing product introduced to a new or new product introduced by either new or existing market belt new or existing market. The modification envisaged could be in package colour, features, sizes, etc. It could be pointed out that when a product has attained its decline stage, it is incumbent upon the management of that organization to see to the fact that a new product is developed to replace the one being phased out.
In this research study, six major strategic roles that companies set for the new product.
- To maintain position as a product innovator
- Defend a market share position.
- To establish a way in a future market
- To prompt a market segment
- To capitalize on distribution strength
- Exploit technology in a new way
Generally, companies require complex organization arrangement for new product development of the familiar ones Booz, Alcen and Hamuton (1980) identified six categories and their news to the company and the market.
New products line, new product allows a company to enter an established market for the first time.
Improved in revision to existing products existing new product that are targeted to new market, the new segment. Cost reduction, a new product that provides similar performance of lower cost.
The impact of new product development on the survival and growth of the firm has made Guinness over the years to have brought innovation and deployed various marketing strategies, all in a bid to out place each other.
1.1 BACKGROUND OF THE FIRM
Guinness Nigeria plc is a Nigeria brewery founded in 1962. Gunner’s mid-strength, a low alcohol stout being test marketed in limerick.
Guinness Aba brewery was the former site of defunct public brewery which was abandoned for:
In movement 28, 2005, the Guinness breweries plc plants at Aba and Benin which were built by double decked have the advantage of strength and beauty Guinness result for the year ended 30th June 2009, show that the board of directors recommended a dividend of N 7.50 perannual may 26 2010 on the other hand, the strength of Guinness Nigeria plc lies in its foreign extra stock were the company is said to control. The main product is Guinness draught, a 4.1% dry stout is one of the most successful bear brand worldwide.
Insight of the Guinness family, the grandson of the original Arthur Guinness, bir beryamin Guinness, was lord major of Dublin and was created a baronet son Arthur, baron ardilaun (1840-1915), sold cont role of the brewery to sir Binyamin’s third son Eduard (1847-1927), who become 1st earl of Iveagh. Iveagh launched the company on the London stock exchange in 1886. up until then only other partners outsides of the Guinness of the Guinness family were members of the [purser family who helped run the brewery throughout most of the nineteenth century he, his son and great grandson, the 2nd and 3rd earks chaired the Guinness company until the 3rd earls death in 1992 . there are to longer any members of the Guinness family on the board.
1.2 STATEMENT OF THE PROBLEM
The research work is aims to organize or to provide answer to the problem facing the company and the problem is:
- Inadequate management of the company in the area of developing new product.
- Inadequate strength in spreading out their product to be available everywhere
- The consumers are not much aware of the product availability.
- Inadequate modernize machines available to the firm
- Inadequate distribution strategy used in the distribution of the products
1.3 OBJECTIVES OF THE STUDY
The research study was designed to enable the researcher to determine it aim through the following
- find out the impact of new product development of the firm to the environment.
- Know the position of Guinness plc among its competitors
- Find out why the company embraks on new product development
- Find out the target customers for its product lines
- Determine the extent of effectiveness of new product to its market.
1.4 RESEARCH QUESTIONS
This study was undertaken to carryout the following problems and possible answers to the following questions
- How many area has Guinness product covered in your research?
- How many distributors do you have
- How often do people facilitate Guinness product
- What brands of Guinness document per moist
- What are the distribution rates of guineas product is Guinness product a viable option ot increase market share of breweries industry
- Is price of the product favorable to affect revenue
- What is the level of awareness of Guinness product
1.5 STATEMENT OF HYPOTHESIS
There are two types of hypothesis _null or negative hypothesis (HO) and alternative or positive hypothesis (hi) is the negative or no difference version of a hypothesis because it assumes that there is no different while alternative or position hypothesis is the proposition that may be accepted if the statistical null hypothesis is reject by the sample evidence.
HO: The impact of new product development does not innovate the company’s growth among its competitors.
Hi: The impact of new product development innovate the company’s growth among its competitors
Hi: The impact of new product development innovate the company growth among its competitors
Ho: New product development existence of the firm does not depend on the uniqueness of the firms product
Ho: New product development existences of the firm depend on the uniqueness of the firms product.
1.6 SIGNIFICANCE OF THE STUDY
The purpose of this research study is to know the impact of new product development to the growth of Guinness plc and the effect on the consumer and how the management embarks on it. The result of the study will enable me (the researcher) to understand the important of development new product and the extent to which new product affects the sales of Guinness plc Aba.
To my follow students and other researchers who may wish to conduct research on the attribute of product, particularly innovation it will useful materials as a result of this study will enable them understand the functions benefits, different forms of innovation and its effects on the firms sales volume.
To the society, the consumers will also benefit from this study as they come to a better understanding that now product development are innovated to suit their taste and are better presented.
THE IMPACT OF NEW PRODUCT DEVELOPMENT ON THE SURVIVAL AND GROWTH OF A FIRM (A STUDY OF GUINNESS PLC ABA, ABIA STATE
