THE ROLE OF PRODUCT DEVELOPMENT AND MANAGEMENT IN A MANUFACTURING COMPANY (A CASE STUDY OF NIGERIA BOTTLING COMPANY PLC, BENIN CITY)
ABSTRACT
Product development is a creative and interdisciplinary activity that transforms a market opportunity and technological innovation into successful products. It is a set of activity-based processes in a product-oriented enterprise, and is essential to the economic success of such organization. Determining important processes in the product development and determining their relationships with organizational capability are crucial to the sustainable success in product development. Studying their relationships would give us insights into the product development dynamics. The objectives of this research are to examine the extent to which innovation in packing can be used to increase demand and usage for existing brand of soft-drink, to find the extent to which product life-cycle chart is used to predict how many specific brand of soft-drinks we have in the market place, to find out the relevance and advantages involved in product positioning in the development of a new and existing product, to find out the extent a firm can command significant patronage through product differentiation in the midst of competing brands in the bottling companies, to find out the relevance of product development and management in Nigeria Bottling Company Plc and to find out efforts made by management of Nigeria Bottling Company to reduce the problem of environmental pollution. To fulfill the objectives and to achieve the goal of this research, a step-based approach was adopted: first, identify important processes in product development, second, identify an organization’s capability using important product development processes identified through literature review and survey. Third, study various factors that influence the determination of importance of product development and the capability of product development were studied. Forth, test two hypotheses based on the statistics. The work in this thesis illustrates how various factors such as company size, industry sectors, and professional experience may influence the dynamics of product development process.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Product plays a central role in the activities of all organisations it is the medium through which an organisation achieves the actual objectives of maximizing consumers and organisational satisfaction. Modern marketing practice commences by monitoring the nature of the consumer needs and then deploy one. Resources in a manner consistent with maximizing the return on assets employed. However, the medium through which the firm attempts to maximize its objectives is the product. In an attempt to keep peace with the growing competitive market environment, business are constrained to adopt different intensive growth strategies among which include product development, and modification have assumed innovation bearing in the face of prevailing market competitive. More so, the need for companies to overcome the impending dangers posed by present economic recession calls for product development that will lead to attaining a reasonable return on investment.
Finally, this study has borne out of the desire to examine the relevance of product development and management in a manufacturing company, taking a case study of the Nigeria Bottling Company Plc, Benin City.
1.2 STATEMENT OF PROBLEM
There is little doubt that awaits the innovative firm whose intent is searching widely for new product ideals and evaluating those on a systematic basic but success will not follow from installation and carrying procedures along. Much responsibilities devolve on management not only to create a prosperous climate for thinking about the desirability of proceeding when static formular can not provide clear answer.
The problem therefore has on the following pertinent question.
How can packing be used as an insurance against a decline of interest in the existing brand of soft drink?
In using multi-brand strategy, is it possible to predict consumers acceptance of the newly created brand on the basis of their loyalty to the old brand.
Can the expectation from packing as a silent salesman be realized.
Can product differentiation be used successfully in a long term without leading the predictable reaction the competitors can either emulate or improve upon this more preferred offering.
Can product life-cycle chart really be dependable to predict the behaviour of a brand of soft-drink in the market place.
Are there opportunities for marketers to augment their product as a competitive strategy positioning play a role in the development of a new product.
Does product positioning play a role in the development of a new product.
Does the management of Nigeria Bottling Company make adequate provision to control environmental pollution caused by broken bottles crushed crates, corks, and bent cans that letter out streets.
1.3 OBJECTIVES OF THE STUDY
The study is designed to achieved the following objective.
To examine the extent to which innovation in packing can be used to increase demand and usage for existing brand of soft-drink.
To find the extent to which product life-cycle chart is used to predict how many specific brand of soft-drinks we have in the market place.
To find out the relevance and advantages involved in product positioning in the development of a new and existing product.
To find out the extent a firm can command significant patronage through product differentiation in the midst of competing brands in the bottling companies.
To find out the relevance of product development and management in Nigeria Bottling Company Plc.
To find out efforts made by management of Nigeria Bottling Company to reduce the problem of environmental pollution.
1.4 RESEARCH QUESTIONS
Does product play any role in the development and management of a manufacturing company?
What are the role of a product towards the development and management of a manufacturing outfit?
How can a product and the development of a manufacturing company?
1.5 RESEARCH HYPOTHESES
The following are the hypotheses generated for this study.
Ho: Product development and management does not help organisation to have good product to get repeat sales are not needed for a business to stay.
Hi: Product development and management helps organisation to have good products to get repeat sales are needed for a business to stay.
Ho: Product development and management does not increase or boost organisation market share and profit.
Hi: Product development and management helps the organisation to protest its market share and profit in a competitive environment.
Ho: Effective product development and management does not bring about product relationship.
Hi: Effective product development and management brings about product relationship.
1.6 SIGNIFICANCE OF THE STUDY
It is expected that the study will be of significant to the following.
The research will give the Nigeria Bottling Company Plc an insight into the need exploit certain marketing opportunities. The companies will equally intensely effort at engaging in product development with respect to areas where little or no attention has been placed.
The application of this study by the organisation will enable consumers to be well informed about the product through trade mark, content, ingredient and data of manufacturing and expiring date. Above all they can protest an injustice done against the interest of consumers.
The government would appreciate the need to create product development centre or to be able to assess and evaluate product weather it matches with standard organisation of Nigeria (SON). Again an improvement on the development of product by Nigeria Bottling Company Plc might increases sale volume. The government in this case stands to gain both from excise duties and corporate taxes.
This will help those who may found this research work helpful in carrying out a related topic.
1.7 SCOPE OF THE STUDY
The study is limited to the relevant of product development and management in a manufacturing company, using Nigeria Bottling Company Plc, Benin City as a case study, the study will therefore be limited to the following areas.
What product development is all about and what product development, product classification, new product development life cycle, branding packaging labeling, what product wants to accomplish when using the product. A student would buy a bottle of coca-cola when thirty, in this ways the marketer will recognize many opportunities for augmenting its offers services in a competitive effect way. A company that concentrates on the consumer satisfaction including installation, operator training, free delivery, warranty financing arrangements after sales service has the best chance of winning customers in the long run to her product. The new competitive is not between want companies’ product in their factory output in the form of packaging, services, advertising advisory services, financing delivery, were housing and communication product differentiation, product modification product positioning and evaluation of product its strategy results are the relevance important of product development.
1.8 LIMITATION OF THE STUDY
In the course of gathering necessary data for the execution of this research work, the researcher met with a lot of constraint.
Some of the problem includes time, finance, attitude of respondents and constraints. It was difficult to get appointment from the public relations department to collect data needed for the study. Due to financial constraints faced by the researcher, data analysis was narrowed down to a particular institution of Coca-Cola Bottling Company, Benin City.
1.9 OPERATIONAL DEFINITION OF TERMS
Product: it is anything that can be offered to a market for attentions acquisition use or consumption that might satisfy a want or a need.
Strategy: it is planned sometimes in outline only for reaching certain objectives usually qualified and more often on a relative longtime basis.
Soft drink: it refers to non-alcoholic drinks most especially fruit juices such as Fanta, Malta Guinness, Amstal Malta, Coke etc.
Marketing strategy: it is a fundamental marketing activated by which the business firms intend to achieve its marketing objectives.
Services: it is an act or offer performance of one part to another that is essentially intangible and does not result in the ownership of anything.
Price: it is the value placed on what is exchanged.
Promotion: it is the communicating of information between the buyer and seller with a vie to changing attitude or behaviour.
Sales promotion: this is the activity that acts as direct inducement, offering added value or incentive for the product, reseller sale person or consumer.
New product: this is one that is new to the company but not necessarily new to the market where the generic product already exists.
Brand: it is a name, term, sign, symbol or design or combination of them which is intended to identify the product or services of one seller and differentiate them from those of the competitors.
Packaging: it is the activity involved in designing and producing the container or wrapper for a product.
Brand loyalty: it is the active support by consumers in containing consumption of a particular brand on the face of competition by other branded substitutes.