SIGNIFICANCE OF PRICE IN introduction OF NEW PRODUCT
SIGNIFICANCE OF PRICE IN INTRODUCTION OF NEW PRODUCT
The topic “Significance of Price in the Introduction of a New Product” was chosen to investigate the role of pricing in the launch of a new product. The primary goal of this study is to explore the impact of price on a new product. The major technique of data collecting used in this study was a questionnaire, followed by a secondary method.
The relevant literature was reviewed, and the data gathered was analysed using basic percentages. This was also utilised in hypothesis testing. According to the report, no firm can achieve its aims and objectives without price.
It is so recommended that a pricing division be established inside the marketing department to determine prices and aid the marketing department in selecting appropriate product prices. The research suggests that following these recommendations can benefit both businesses and the nation as a whole.
1.1 Background of the Study
Price has been a crucial issue while developing a product. Every corporation that manufactures a product has one thing in mind: the pricing. It is not easy for a company to fix a price for their products because the company or manufacturer will want to determine all the costs used in producing the product.
In doing this, the company or manufacturer will also want to put the consumers in mind because if the price is too high, it will affect the sales of the product and if it is too low, it will all At this time, the maker or producer will attempt to achieve equilibrium.
On this note, the researcher chose to do research to determine the function of price in the market, its importance, and potential solutions for fixing price in a product.
Many people consider pricing to be one of the most important aspects of the capitalism system of free enterprise, particularly when bringing a new product to the market.
Furthermore, pricing and price rivalry are issues confronting marketing executives today. Price is excessively cost-oriented, and it is not updated frequently enough to capitalise on mark changes (Aluyor 2010).
1.2 statement of Research Problem
Many people have criticised specific price policies, and some have questioned how certain pricing aims can truly fit into the entire organisation.
The challenge is to study why certain pricing practices fail to help companies achieve their marketing objectives; thus, the topic is divided into the following essential questions.
I. What is the pricing method in the manufacturing enterprise?
ii. Should a corporation set prices separate from other marketing mix variables?
iii. To what extent should a corporation consider the strength of demand for the product as well as the psychology of the client when determining a cost-effective pricing strategy?
iv. Should prices be set for a new product without full consideration of its supply?
v. Should the manufacture of a new product and its pricing be set without first conducting a thorough inquiry into consumer interest?
1.3 PURPOSE OF THE STUDY
When conducting research on these products, a variety of factors should be examined. One must look seriously at the country's recent political situation. The country is transitioning to a new political system, led by a civilian president;
this may facilitate the opening of neighbouring borders, increasing the rate of imported commodities into the country. These will contribute to a significant reduction in the process of product circulation in the country, hence raising demand.
The goal of this research is to assess the significance of a set price for a new product in order to increase demand for the product.
The study aims to realise the following objectives:
i. To see how consumers react to price increases for a product.
ii. Identify the issues with new product pricing decisions and give relevant solutions to help avoid the practical challenge of determining a price.
iii. Determine whether a product's relatively cheap price influences the purchasing decisions of its consumers.
iv. Finally, the study will look into how price compares to other types of marketing mix.
The following research questions will guide the focus of this investigation.
1. Are Nigerian Bottling Company's promotional actions influencing higher product demand?
2. Is advertising the most effective way to reach customers?
3. Do the locations of Nigerian Bottling Company's depots effect consumer demand for its products?
4. Does price influence a product's sales volume?
5. Is it difficult to make a pricing decision?
6. Is new product pricing typically a challenging activity with numerous issues?
7. Do pricing decisions have an impact on product success?
8. Is new product pricing the cause of product failure?
1.5 Statements of the Hypotheses
1. Ho: Prices don't affect sales volume.
Hello: Prices influence sales volume.
2. Ho: Pricing decisions are not burdensome.
Hello: price decisions are complicated.
Ho: New product price is usually not problematic.
Hi: New product pricing is typically a complex activity with numerous challenges.
3. Ho: Pricing decisions have little impact on product success.
Hello: Pricing decisions have an impact on product success.
Ho: New product pricing is rarely responsible for product failure.
Hello: New product pricing is often the cause of product failure.
1.6 SCOPE OF THE STUDY
This is limited to pricing as a marketing mix variable in the growth of a new product, using Amstel Malta, a Nigeria Breweries product, as a case study. This is done in order to detect the issue with the pricing of a new product and give beneficial ideas.
1.7 Significance of the Study
When the research is done successfully, it will be extremely beneficial to many people. Among those who gain from having the best price determined on a new product in order to flourish in the market.
In addition, to benefit from the best price placed on a new product, input from interviewers and questionnaires with Nigeria Breweries customers and employees will be explored and determined.
Consumers will profit from the research since their recommendations and critiques will be considered.
1.8 Limitations of the Study
Several difficulties were discovered during the course of this research activity, which served as impediments to the project's successful conclusion. The group took efforts to minimise these restrictions.
The first barrier was financial; the job was completed using funds that the organisation could pool. If the much-anticipated funds had been available, more in-depth research could have been conducted.
Second, time was a significant restriction because the study was completed concurrently with other curricular activities such as regular lectures, assignments, tests, quizzes, and sectional exams, among others.
Finally, the attitude of Amstel Malta Nigeria Breweries Plc's customers and employees towards filling the questionnaire posed another issue, as the majority of them felt apathetic, and some of the questionnaires obtained were not correctly answered.
Thanks to Almighty God, the researcher was able to effectively complete the research task despite the numerous challenges encountered.