THE DEVELOPMENT AND MARKETING OF A NEW PRODUCT AS A COMPANY LIFE WIRE
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Development is very important in order to add value to the taste of the consumers. Products and development serve as a backbone of a company, they are systematic processes for originating, evaluating and bringing about new product ideas and adopting these showing promises that are profitably sold in the market. This method of management must be used to generate ideas for new product and then develop, test and commercialized the new items.
For a new product to be developed, the product must pass through the evolutionary cycle ending in the commercialization of the product. Some of the cycles are exploration, screening of ideas, testing of marketing strategy, business analysis (such as SWAT and feasibility study), development of the product and commercialization. It is very risky and profitable venture to develop and market new product as a company life wire. This implies that if the product fails, the company might experience low income after investing heavily in the process of developing the new product and vice-versa.
Shell Nigeria uses the strategy of new product development. The company has the policy of enhancing its products quality. The culture of the company is to know how best to develop and rebrand its new product not to accrue more profit only but also to sustain and maintain satisfaction of the loyal customers of the product. The appearance of new product persuades the consumers to have a rethink to try the new product. After the trial of the new products, the consumer would repurchase the product and this is an indication that it successfully tested market.
1.2 Statement of the Problems
Shell has been controversial in communities in the Niger delta, who point to its poor environmental record and that most of the economic benefit from oil exploitation has not benefited local communities. The company has been responsible for some of the most significant oil spills in Niger delta and both Nigerian and European courts have held them responsible for environmental destruction. In view of this, Nigerians have been lamenting because of the scarcity or hike in price of its product such as petrol and cooking gas across the nation and the issue of black market sales make people struggle to get what they want at any time because of long queue across all fuel stations and shell has failed to proffer solution to this problem and it could not create alternative products to meet the satisfaction of the consumers. However in order to fill the gap, the following research questions must be answered.
1.3 Research questions
1. What are the socio-economic characteristics of respondents
2. What are the impacts of marketing research on the development of new product?
3. Which marketing strategy is best to employ in the development of new product?
4. What are the factors influencing marketing research on the development of new product?
5. What are the constraints to marketing research on the development of new product?
1.4 Objectives of the Study
The main aim of the study is to determine the development and marketing of a new product by shell Nigeria.
The specific objectives are to:
1. describe the socio-economic characteristics of the respondents
2. emphasize the impact of marketing research on the development of new product;
3. examine the best marketing research best to employ in the development of new product;
4. identify the factors influencing marketing research on the development of new product.
5. identify constraints to marketing research on the development of new product.
1.5 Research Hypotheses
H1: There is no significant relationship between factors influencing marketing research on the development of new product and socio-economic characteristics of the respondents.
H2: There is no significant correlation between marketing research employed and the constraints to marketing research on the development of new product.
1.6 Significance of the Study
This research will help the government to identify the areas that needed to be developed and market new product and also sensitized organizations or individual who is capable to embark on development of new product. This study will also assist shell Nigeria in the area of decision making and to be strong enough to tackle any future competition that may arise and also will provide information for researchers in order to increase their knowledge on the development and marketing of new product.
1.7 Scope of the Study
This study focused on the development and marketing of new product as a company life wire of shell Nigeria. The emphasis will be directed on the main or major work of the development and marketing of new product and will also involve the analysis of all the processes involve in developing new product. However, since the study is with particular reference to shell Nigeria to determine how they carry out the development and marketing of new products.
1.8 Limitations of study
The limitation to this study will be time frame. All the research work must be completed within a stipulated time of one week which will not be enough. Language barrier will also be a barrier to the research work.
1.9 Definition of Terms
Product: anything being produce by a company or firm that can be offered to a market to satisfy a want or need
Product development: process of converting ideals and concept about product into physical form.
Marketing: an organizational function and a set of processes for creating, communicating and delivering value to customers.
Test marketing: 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