THE DEVELOPMENT AND MARKETING OF A NEW PRODUCT AS A COMPANY LIFE WIRE …
This research is intended to apprise the development and marketing of a new product as company life wire by Nigerian Breweries Plc, Aba. This project has been divided into five chapters .chapter one deals with the background of the study, statement of Problems, objective of the study, significance, and Research question. Chapter two is also about the literature review, what is product, what is new product development process, why new product fail in the market place and why new product is successful. Chapter three deals with the research design methodology, research design, and area of study, population, sample techniques and sources of data. Chapter four deals with how the data was presented and analysis, analysis of findings and test of synthesis through the use of questionnaire. Finally, chapter five deals on the summary, of findings, the conclusion and the recommendation made to the Nigerian Breweries Plc, Aba.
1.1 BACKGROUND OF THE STUDY
Product and development is a systematic process for originating, evaluating and developing new product ideas and adopting these showing promises that they can be profitably sold in the market place. This management procedure must be employed to generate, collect and screen ideas for new product, and then develop, test and commercialized the new items.
Every new product is supposed to go through the evolutionary cycle ending in the commercialization of the product. The evolutionary cycle ending ideas exploration, idea screaming, concept development testing marketing strategy development, business analysis, product development, marketing testing and commercialization
Developing and marketing new product as a company life wire is both a risky and profitable venture. It is risky in the sense that if the product fails the company would lose a lot of money, which has been expand in the process of developing the new product. On the other hand, if the new product succeeds, the company would reap a lot of benefit through increased profitability.
New product development is a strategy usually adopted by the Nigerian breweries plc. The company has the policy of enhancing it’s product quality and adding new product to its of drinks.
Considering the critical nature of the beer breweries companies, the Nigerian breweries plc management must know how best to develop and dispose its new product not only at a profit to the business but also to sustain and maintain consumer brand loyalty of the product.
New products are often promoted and consumers are stimulated and persuaded to try the product. Having tried the new purchased and repurchased the product, if successfully test market, it is the marketed. This study tried to examine the development and marketing of new product as a company life wire. Case studies of Nigerian breweries plc, Aba, built by the company testify to its abiding interest in the acts. The building and maintenance of craft, centers are part of the company’s contribution to the promotion and preservation of Nigerian acts and culture.
Nigerian breweries Plc is a model of success in the private sector. The company’s high profile, profitability and successful operations can be traced to good product quality; efficient management of operations and strategic penetration into the market environment. Others are proper understanding of consumer attitudes and habits and high social responsibility profile at national and zonal levels.
1.1.1 PROFILE OF NIGERIANN BREWERIES PLC
SCOPE OF THE OPERTIONS
Nigerian breweries plc, the pioneer and largest brewing company in Nigeria, was incorporated in 1946 and recovered a land mark when the first bottle of STAR LARGER BEER rolled off the bottling lines in its Lagos brewery in June 1949 . This was followed by Aba Brewery which was commissioned in 1957, Kaduna brewery in 1963 and Ibadan Brewery in `1982.. In Enugu. the company acquired its fifth Brewery in September 1993. Thus from it’s humble beginning in 1946, the company now has five breweries from which high quality products are distributed to all nooks and corners of this great country.
With about 50000 shareholders, the authorized share capital of Nigerian breweries was increased from 288m to N457m in 1994 by the creation and distribution of one of new share for every one share held by shareholders.
Sixty-seven percent (67%) of the share is held by Nigerian amongst who are company employees of various categories. The company’s turnover increased from 7.166 in 1994 to 10.76 in 1995, while a sum of 4.06 was paid to the federal and state governments in various forms of taxes as against 2.46 in the previous year. In 1995, the company paid a dividend of 0.85 kobo per share.
This level of dividend is better appreciated if it is recalled that the scrip issue of one for one made the previous year impacted vary heavily on the equity base of the company by increasing it from 457.5 million ordinary share to 915 million ordinary share. The import of these developments has been a corresponding growth in the prosperity of company’s shareholders whose funds have appreciated into values for in excess of their original investments.
Nigerian breweries plc has a portfolio of five high quality brand: star lager beer (1949) guilder lager beer (1970),Maltina (1976) < legend extra stout (1992) and Amstel Malta (1994). Together, position in the total brewed products market in franchise compliment other company values and as the house of quality. RESEARCH AND DEVELOPMENT Nigerian breweries Plc has kept pace with key international development, that ensuring that it’s systems, processes and operational procedures are always in conformity with proven best practices in most parts of the world. It is in line with the policy that the company established a 4 million research and development center (currently valued at 40 million) to enhance it’s research activities. Commissioned in June 1987 the research and development center conducts research and development center conducts research on all aspects of the brewing operation. 1.2 STATEMENT OF PROBLEMS
The current economic recession and Austenty measures have virtually paralyzed almost all business activities in Nigeria and breweries businesses are no exception. The emergence of main beer breweries and the resultant proliferation of many types of beer have given rise to competition.
For an organization like Nigerian breweries plc, Aba to survive and achieve sustained growth in a competitive marketing environment. It has to strive to achieve the satisfaction of the needs of the target market.
The study or this research diagnosis problem that arise as a result of rapid changes in consumer’s tastes, technology, competition on marketing environment
As a major brewing concern, the company encourages the establishment of ancillary businesses. Many of these organizations and individuals depend largely on the company for their means of livelihood. These include manufacturers of bottles, crown corks, labels, cartons, plastic creates and such service as hotels/clubs and direct customers.
Nigerian breweries plc is a socially responsible corporate citizen with an enviable record of rendering corporate philanthropy in the areas of education, sports, health and the arts, among others. The companies recently establish an education trust fund of N50 million to take more active part in the funding of educational and research facilities in higher institutions, all in an effort to provide and encourage academic excellence in Nigeria.
This in addition to its annual university book price award, to 18 institutions of higher learning in the country as well as the secondary/university scholarship programme for children of its employees
Nigerian breweries plc, is the foremost sponsor of sports by variety in the country with sponsorship covering table tennis, lawn tennis, cycling, , golf, badminton, dart, boat race and ayo. The aim of develop Nigerian sportsmen and women to participate in national and international sports, in the health sector, the company is committing funds to the building of the skill cell center in Nigeria. The Oyo state craft village in Ibadan and the craft center in Benin.
1.3 OBJECTIVES OF THE STUDY
The study aims at determining how an organization can redesign or change its product to enable them cope with changing taste of the consumer.
This could be achieved by taken the following research objectives into consideration.
1. To find out new product development justifies organizational existence.
2. New product development help to stabilize or revitalize a declining firm.
3. New product development helps an organization to achieve sustained growth
4. New product development helps an organization to achieve expansion.
1.4 RESEARCH QUESTION
The fundamental research questions, which this study will attempt to find appropriate defensive and reliable answers to include the following:
1. Why do so many new product fail?
2. What type of marketing strategy does your company employ?
3. What is the most effective way of selling the company’s new product?
4. Despite the wide sales of your product, why do you embark on new product development?
5. Which people are your target audiences?
6. When embarking on new product development does it cover your entire product?
7. Does your product cover some regional area or is it nation wide?
1.5 RESEARCH HYPOTHESIS
HO: development and marketing of new product has not increase product failure
HA: development and marketing of new product has increase product failure
HO: marketing strategy employ in Nigerian breweries plc Aba, has not been significant influence on new product
HA: marketing strategy employ in Nigerian breweries plc Aba, has some significance influence on new product
HO: making new product available to all distributors outlets has not been effective.
HA: making new product available to all distributors outlets has been effective
HO: embarking on new product development has not been effective to maintain market leadership
HA: embarking on new product development has been effective to maintain market leadership.
1.6 SIGNIFICANCE OF THE STUDY
This research project is significant in many ways.
To government it will help to know the areas on when to developed and market new product to the public, also when to assist organizations or individual with financial assistance to embarked on new product development.
To Nigerian society, it will help by explicitly laying bare the many ways in which development and marketing of a new product can be done effectively. It will also increase the knowledge of society on the issue.
To Nigeria breweries plc, Aba management this work will be beneficial in the area of decision making, on planning and developing of new product, withstand competition in the market, maintain market leadership, satisfactions of customers profitably.
To researcher, it will increase my knowledge on the development and marketing of a new product. It will help for award of my higher national diploma result (HND). It will equally enable me to make my contribution to the development and marketing of a new product by making my suggestions.
Further more, this research project is significant to the entire academic world and therefore serves as basis for future researchers.
WHY NIGERIAN BREWERIES DEVELOP NEW PRODUCTS AS A COMPANY LIFE WIRE
1. Profit and customer satisfaction (the basic reason)
2. The products life cycle
3. The price success
4. Defensive reason- market share
5. The pressure of competition
1.7 SCOPE OF THE STUDY
The research work is directed to the study of new product development and marketing as a company life wire of Nigeria breweries plc, Aba. Emphasis will be on key work of the development and marketing of new product. All that entailed in planning new product, stop and processes that are involved in developing the new product are to be analyzed.
The company of the study Nigeria breweries plc, Aba which is a manufacturing company, A study on how to develop and market new product is carried out mainly in the production and marketing department and others such as technical, engineering and purchase that are involved in development and marketing of new products.
Since the research work is with particular reference to Nigeria breweries plc, Aba to assess how they actually carry out development and marketing of new product. Also the research work is designed so as to enumerate ways of planning and development of new product.
1.8 DEFINITION OF TERMS
1. PRODUCT: is anything that can offered to a market to satisfy a want or need
2. PRODUCT DEVELOPMENT: is the final conversion of ideas and concepts about product into physical form. New product is either developed or there is improvement on former product.
3. PRODUCT PROLIFERATION: this is one of the specific strategies the market challenger can use to attack the leader by launching a larger product variety thus giving buyers more choice.
4. ADOPTION: a decision by individual to become a regular user of the product.
5. MARKETING ENVIRONMENT: The actors and forces that surround both the buyer and the marketing mix, it consist of political, legal, societal consumer movement etc
6. MARKETING: Is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationship in way that benefit the organization and it stake holders.
7.TEST MARKETING:A Limited introduction of a product in areas chosen to represent the intended market to determine probable buyers reaction to various part of a market mix.