THE IMPACT OF NEW PRODUCT DEVELOPMENT ON THE SURVIVAL AND GROWTH OF A FIRM (A STUDY OF GUINNESS PLC ABA, ABIA STATE
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.
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.