THE IMPACTS OF NEW PRODUCT DEVELOPMENT ON CORPORATE growth AS A STRATEGY
One could say that new products are the lifeblood of businesses operating in a free market economy. Indeed, when producing a new product, a corporation must employ an effective product development plan. The introduction of a new product to the market enables the company to maintain its competitive position in the market.
Without proper and effective product creation, no company can successfully capture the entirety of the market in today's economy. This is the case because the needs of society (consumers) evolve with time. As a result, it is necessary to modify the manufacturing system and procedures to accommodate societal shifts in demand, technology, taste, and preference.
The introduction of a new product to the market is an essential element of a company's growth plan, and profit-driven businesses cannot afford to abandon this endeavor. The necessity and inevitability of new product creation inside an organization cannot be overstated; hence, its significance cannot be overemphasized. Today, in the Nigerian market's complex environment with its highly complex company operations, it is believed that all organizations are embracing the latest production processes.
Philip kotler and Armstrong (1980) argued that a successful creation of a new product will result in effective sales of the company's product and, consequently, an improvement in the company's profit margin.
Therefore, for a company to thrive in a competitive business climate, it must publicize (advertise) its newly-introduced items to the public or its consumers, as the majority of companies operating in the country already provide goods with near replacements.
At light of this context, the researcher's curiosity has led him to select this issue (The effect of new product development as a strategy for corporate growth in Uni-Lever Nigeria limited) as his area of study.
1.1 CONTEXT OF THE STUDY
In order to attain a long-term goal of market dominance, it is necessary to evaluate whether a company desires to develop a new product in order to remain prominent in a competitive market environment.
By releasing a new product to the market, a business can increase its corporate growth. In other words, marketing-based programme creation will improve the financial and conceptual feasibility of a strategy. The introduction of a new product to the market necessitates expenditures, which represent an investment for the future of the business.
As with any investment, there are dangers associated with investing in new products because it might be detrimental to the health and stability of the firm. When analyzing the motives for new product development in an organization, the reasons for new product failure, the various stages of new product development, and the Product life cycle and its implications, it is important to analyze the Product life cycle and its implications. Managing a new product (management and strategy development), marketing channel policy, promotional policy, product design and development, market strategy, the roles of new product development in the enhancement of an enterprise's growth, and the difficulty of marketing a new product.
Product innovation remains the most effective method for designing and innovating new product development for the success of a business.
1.2 DESCRIPTION OF THE PROBLEM
To fulfill the ever-evolving needs of consumers, the majority of businesses have recognized that there is a significant need for improvement in their product formulation, which can only be addressed through the creation of new products. Due to the firm's failure to engage in new product development efficiently and effectively, business organizations have not been successful and have been unable to fulfill their aims and objectives.
Thus, the researcher aims to employ the following study questions to investigate the enigma surrounding the stated problem; examining the effect of new product creation as a strategy for company growth:
I What roles does new product development play in a company's growth strategy?
ii) What are the financial implications and effects of a company investing new product development costs?
What influence does differentiation have on the development of new products?
iv) What effects do the products of rivals have on the development of new products?
v) A raw material is a significant factor in the development of a new product; what type, source, and mobilization for raw materials purchase in form (quality), quantity are accessible to the manufacturer?
As a result of these issues, the researcher is concerned with proposing effective solutions and tactics a company should employ when doing new product development.
I Could the high cost of raw materials hinder the introduction of innovative products?
ii) Is new product development pertinent to the organization?
1.4 OBJECTIVES OF THE STUDY
This research attempts to accomplish the following goals and objectives:
I To identify the challenges encountered during new product development and market introduction.
ii) To investigate the impact of new product development on the growth of businesses.
iii) To determine the promotional tools used in the new product's marketing.
iv) To offer workable solutions to the difficulties outlined in the problem description.
This research will also be useful to students and other academics who want to write on comparable subjects in the future.
1.5 STATEMENT OF HYPOTHESIS
In order to avoid bias in the conduct of this research, the use of hypotheses has become crucial for guiding the process effectively.
Two hypotheses have been identified for testing in this investigation.
Ho: The high price of raw materials hinders the introduction of innovative products. Hi: The price of raw materials does not hinder the introduction of new products.
The development of new products is irrelevant to the company.
Hi: The development of new products is important to the company.
1.6 Importance of the Research
This research would be of enormous value to private investors, aspiring entrepreneurs, advertising agencies, students, and everyone else involved in product development in the following ways:
I Analyzing the levels of rivalry in terms of sales; sales patronage between new products introduced to the market and old or current products.
ii) It improves the evaluation of the effect of advertising on the success and market acceptance of a new product.
iii) It is also important for investors and business owners to know when and what to invest in, as well as give ideas for the optimal product mix.
iv) It acts as a means of exposing the researcher to the practical element of the topic, as well as a source of secondary data for future research/study.
1.7 RADIUS OF STUDY
For the sake of this research/study, I wish to concentrate my focus to Uni-lever Nigeria limited.
The purpose of the study is to examine the effects and successes of new product development as a growth strategy for the company on the market to date.
The purpose of doing new product development, the issues faced during new product development, and perhaps the time required to introduce new products from 1999 to 2014, which opened the way for product introduction effectiveness based on quality improvement through time.
1.8 LIMITATION OF THE STUDY
The researcher had hoped that his investigation would be fruitful, however this was not the case due to uncontrollable forces working against this research. Among the reasons that restrict the study's scope are:
I Time constraints have always been a restraint on every project activity. This research is being conducted concurrently with academic work and the institution's intensive study programs, so interfering with the research and reducing the available time.
ii) Financial constraint: As a result of the economic collapse in our country, which reduced the flow of money in circulation, the researcher was unable to make contact with companies and other information sources to collect data for this study.
1.9 OPERATIONAL DEFINITION OF TERMS
I Marketing: A business activity that creates and meets the needs and desires of consumers for a profit.
ii) Product: This is a concrete and intangible attribute that includes a company's financial, social, and psychological benefits and utilities.
iii) Strategy: This is a method for attaining organizational goals with the help of employees and other resources.
iv) Development: According to S.A. Enikansola (2003), development is the transformation of a product from one style, brand, or package to a superior and contemporary one in order to best meet the needs of the consumer.
v) Distribution channel: According to C.G. Datong et al. (2003), the distribution channel is the group of businesses and individuals involved in the transmission of commodities from the producer to the consumer.
vi) Growth: According to Philips Kotler (2005), this phase of the product's life cycle is marked by quick sales, acceptability, and large profit growth.
vii) Competition: Osuola E.C. (1992) describes it as the firm's effort to win the thoughts and interests of consumers through the provision of high-quality items that satisfy their target market to the greatest extent possible.
THE IMPACTS OF NEW PRODUCT DEVELOPMENT ON CORPORATE GROWTH AS A STRATEGY