PRODUCT INNOVATION AS AN EFFECTIVE TOOL IN A COMPETITIVE MARKET

CHAPTER ONE

1.0       INTRODUCTION

1.1    BACKGROUND OF THE STUDY

Many years back, the seller oriented Market prevailed over the consumer’s did out weight the main products during  this period the production concept of the marketing Philosophy was prevailing giving  little or no attention to the consumer.

        The general difference was that the product would surely find a needy marketing no particular attention was paid to the product, packaging labeling, branding, modification and other features, qualities etc.

        As time went on more and more products entered the market. This coming together of many products brought about competition among the available products consumer sovereignty began to  over take its bearing based on good packaging, brand image, quality and convenience. 

In the era of marketing concept, manufacturers, and producers determine first  the need and went of the consumers and try their best to inculcate this into the company polices and programmes.

        As a result of the dynamic business environment today, first apply difference strategy to ensure continued operation. Many new product are constantly being introduce into the market innovation are seriously on their job modifying and deleting old and unprofitable products.

        Against this background, I want to look at product innovation as an effective tool in a competitive market.

        Product innovation is the creation and development of new ideas into a new or an existing product. This embraces all the activities that will enable a company to determine what product to offer the market to satisfy consumers and out with competitors. 

        There is no gain saying the fact that the success or failure of any business is a function of the ability of its product to stand firm in the face to adverse competition from other products. Price reduction, intensive promotion and advertisement, product innovation and effective distribution channel are all strategies used by management to capture a sizable share of the market, but product innovation is the most effective and most result oriented.

        As the population of the nation increases, so also does firm and business venture in order to be in alignment with the population.  As a matter of fact, only those business units that ensure paramount consumer satisfactions and sovereignty in production shall withstand that struggle for goodwill.

        If product innovation is not pursued, the company might be thrown out of the market Top management should always take cognize of what Williams J.  Stanton said a company cannot successfully  sell a poor product  over the long  run”

        Often, it is easy to create a demand for initial sales. But a company need a good product to get repeat sales, and repeat sales are needed to stay in business.

1.1.1 PROFILE OF THE COMPANY.

        Paterson Zochonis was incorporated on the 4^th December, 1948. Under the name of P.B.  Nicholas who has for some years prior to the date established a factory, for that purpose. PZ and Company Limited of Manchester subscribed 75.5% of the company’s issued shared capital and  sine directly or through subsidiary companies tetaimed the controlling  interest PZ itself  incorporated in England in 1884, because a public  Company quoted on the London and Northern stock exchange in  1953. its principal activity then was  generally in merchants in West  Africa.

        In 1954, Mr. P.B. Nicholas sold out his interest in the company to P.Z two years later, the company  changed its name to Akimbo  Industries Limited  in1960, adopted the name associated Industries Limited. During the year, the company, achieved its first Indigenous  and Nigerian equity participation and by the end of 1972, it had sold  40% of its share capital to indigenous Nigerians.

In accordance with the Federal Government Directives “Indigenous  Act Is  sold 20%  of its  share to Nigerian in 1976, thus bringing the equity  share participation to 60% in favour of Nigerians.

        Following the merger of PZ and Company (Nig) Limited and associated Industries  Limited in1976, the Company changed  its name  to PZ  Industries Limited between  1976-1970, manufacturing  operation in Aba factory were disrupted  as a result of the civil war and in consequences, the company open a ranted premesis in Lagos State. However, PZ Industries  Limited  become a  Public Company in 1972 and was Listed on the Nigerian Stock exchange. The name was  finally changed  to Paterson Zochonis Industries Plc. In 1976 “PZ Industries Plc”.

        Furthermore in 1996 PZ Industries  Plc merged with Thermocol Nigerian Ltd  to answer  PZ  Industries Nig. Plc and in July 2007, the company Merged with Cussons International England to become the present P.Z Cussons  Plc.

        The  company has the following range  of product-SOAP, Imperial Leather SOAP, Robert, premier, Baby Cussons soap, Carex, Duck Green Bar soap  etc. all are  produced  in Aba.

        Detergents Elephant Detergent,  Tempo, Jet ,Morning fresh  etc. cosmetics: Venn-Dee Mib, venus  Relaxer, Jet hair  Cream and florurish  gel.

Pharmaceuticals. Maladin,  Drastin plus, Rob  Ointment, Robert paracetamoil, Alagbin etc.

        Hair Thermacool: Air conditioner, Refrigerators and Television, Generation s et.

PZ Product  are widely distributed. In the country   through their extensive distribution network  with  buffer stock held  at strategic centuries.

        The company have a staff strength of about 6000 throughout the country. PZ had progressed from being merchant company  to against industrial concern. Having production  factory in Aba, Illupeju, Ikorodu  and Isolo with more than ten warehouses  , depot scattered accords the country.

        The country has the staff  strength of about 500 employees excluding temporary  staff of about 200 at Aba  factory Present.

1.2        STATEMENT OF THE PROBLEM

        Product Innovation in a firm is associated with diverse problems  that occur during or after innovation.

The problems are:

1. Lack of marketing research leads to wrong production of it product.
2. Wrong application packaging reduces sales of the product
3. Inability of the firm to know when to delete a product during product life cycle causes decrease in sales volume.
4. Improper Presentation of product to the market causes Poor sales.

1.3    OBJECTIVE OF THE STUDY

        Based on the first part of the study the objective are as follows:

1. To examine if new product development can be a strategy to survive competition.
2. To determine the impact of product consumer patronage of a firms  product.
3. To find out whether there is a significant relationship between the sales revenue of a firm’s product invention and after its innovation.
4. To offer solution to the problem of innovation product
5. To determine the various ways in which a product could be innovated.
6. To  analyze  if new product development is a good  strategy to sustain brand name than the existing product.
7. To analyze if product innovation enhances organizational image than old product.
8. To find out if the consumer prefer improved quality to existing product  (old)

1.4    RESEARCH QUESTION.

1. Are sales revenue of Paterson and Zochonis  product before innovation?
2. Do consumer pre new product development than already existing products?.
3. Can  the application of product increase the company’s profit?
4. Does product innovation indicate buying responses  from consumers more than the production.
5. What is the best Period in the product life cycle  to introduce  a new product
6. Is product Innovation an effective tool/strategy to outweigh competitions.
7. Do companies use product Innovation as a strategy to sustain organizational revenue?

1.5    RESEARCH HYPOTHESIS

Based on the statement of problem  and research question as stated above. Null and alternative hypothesis were formulated.

H₁:    lack of marketing research does not cause poor sales.

H₁:    lack of marketing research cause Poor sales.

H₂:    Improper presentation of product to the market does not cause poor sales.

H₂:    Improper presentation of product to the  market caused poor sales.

H₃:    Wrong application of packaging does not reduce sales of the product

H₃:    Wrong application of packaging reduces sales of the product.

1.6    SIGNIFICANCE OF THE STUDY

This research study is significant in the following areas.

1. It helps the company to know the effects of the new product.
2. This research work will serve as a reference for further researchers to the institution and will; also help them to improve on the already researched work on the topic.
3. It is a pre-requisite  for the fulfillment of the guard of the Higher National Diploma  HND)
4. It will help the general Public and government to know that the growth industrial are those that are oriented to new product development (product Innovation).

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