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Impact Of New Product Development In A Co-operate Profitability
[A CASE STUDY OF 7UP BOTTLING COMPANY, IJORA, LAGOS]
CHAPTER ONE -- [Total Page(s) 3]
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CHAPTER ONE
INTRODUCTION
1.1 GENERAL BACKGROUND OF THE STUDY
The cause if the failure of many companies today is because they do not recognize that tomorrow may not be like today. They fail to replace their old existing products with new ones in lines with the taste and fashion of the consumers. Like human being products also pass through different stages in their life cycle. We have the introductory, growth, maturity and the decline stage.
It is the declining stage that brings about the
Need. For new product development. Therefore, it is the function of product department to ensure that the life of the companys product is prolonged in the market.
As a topic, impact of new product development on co-operate profitability is one of the tools at the disposal of a product to increases the profit of organization, and comprises of features. Such as branding and packaging.
Since every business organization existence depends on the success of its product. Therefore the positive effect of new product development cannot be over emphasized. This is because new product development helps the company to meet the need of the consumer at a profit. Innovation of new ideas also aids remarketing strategies to a great extent.
Product development strategies may however be either proactive (lending) or reactive (following). The success of new production development will depend on having an effective sources of new ideas and innovations which can be incorporated as a unique selling purpose.
This unique selling proposition must be relevant to the characteristics of market segment on which product is targeted and most effectively differentiate the product from that of others so as to give it purchasing approach.
1.2 OBJECTIVES OF THE STUDY
The objective of the study is to focus attention on the new product development in a co-operate profitability using 7up Bottling Company of Nigeria Plc, Ijora, as the case study to know from the company’s experience whether the development of new product work out solely to achieve the company’s aim and objectives.
Therefore at the end of this work, we should be able to arrive at the following conclusion. Understanding what new production development comprise i.e. meaning of new product development.
Sources of new production development idea. Strategies new production development
Process of new production development
Effect of new product development in a co-operate profitability.
Advantages of new product development
Obstacles and suggested solution of new product development.
1.3 SIGNIFICANCE OF THE STUDY
The importance of this research is to find out relative benefits consumers and company (7up) will benefit from newly introduced product such as 50cl popularly called “OROBOâ€.
Also this study will broaden our knowledge about the need for new product development in a co-operate profitability.
1.4 RESEARCH QUESTION
i) Does obsolescence of any product bring negative effect on the company?
ii) What are the effects of the new product development on sales?
iii) What method should be adopted in pursuit of internal new product development operation?
1.4 RESEARCH HYPOTHESIS
The following are the hypothesis to tested in the course of this research work. Null hypothesis (Ho) and alternative hypothesis (Hi).
Ho: Null hypothesis there is no significant difference in new product development and high sales turnover. This means the product will be effective in the market.
Hi: Alternative hypothesis. There is a significant difference between the new product development and high sales turn over which means that the product will not be effective in the market.
CHAPTER ONE -- [Total Page(s) 3]
Page 1 of 3
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