PRODUCT INNOVATION AS AN EFFECTIVE TOOL IN A COMPETITIVE MARKET
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PRODUCT INNOVATION AS AN EFFECTIVE TOOL IN A COMPETITIVE MARKET
Chapter one
1.0 Introduction
1.1 Background of the Study
Many years ago, the seller-oriented market dominated the consumer market and outweighed the major items. During this time, the production notion of the marketing philosophy was prevalent, with little or no attention paid to the customer.
The basic distinction was that the product would undoubtedly require marketing, but no special attention was made to the product, packaging, labelling, branding, modification, and other characteristics, attributes, etc.
As time passed, more and more products hit the market. This combination of various products resulted in rivalry among the available products, and consumer sovereignty began to take precedence over its bearings based on good packaging, brand image, quality, and convenience.
In the period of marketing concepts, manufacturers and producers first evaluate the needs and desires of their customers and do their best to incorporate this into company policies and programmes.
As a result of today’s dynamic business climate, the first step is to implement a differentiation strategy to assure continuing operations. Many new items are continually being introduced into the market, and innovation is actively working to change and remove old and unprofitable ones.
Against this backdrop, I’d want to consider product innovation as a useful weapon in a competitive market.
Product innovation is the process of creating and incorporating fresh ideas into a new or current product. This includes all of the operations that will allow a company to determine what product to give to the market in order to satisfy customers and outperform competition.
It goes without saying that a company’s success or failure is determined by its product’s capacity to withstand harsh competition from other products.
Management employs a variety of techniques to grab a significant portion of the market, including price reduction, aggressive promotion and advertising, product innovation, and effective distribution channels, but product innovation is the most effective and results-oriented.
As the nation’s population grows, so do firms and business ventures in order to keep pace with it. In fact, only those business units that prioritise consumer happiness and production autonomy will be able to weather the war for goodwill.
If the company does not seek product innovation, it may be forced to exit the market. Top management should always be aware of what Williams J. Stanton stated, “A company cannot successfully sell a poor product in the long run.”
Initial sales demand is often easy to generate. However, a company needs a decent product to generate repeat purchases, and repeat sales are required to stay in business.
1.1.1 COMPANY PROFILE.
Paterson Zochonis was incorporated on December 4, 1948. Under the name P.B. Nicholas, who had founded a factory for that purpose several years before the date.
PZ and Company Limited of Manchester subscribed for 75.5% of the company’s issued share capital and aimed to control it directly or through subsidiary companies. PZ was incorporated in England in 1884 and became a public company in 1953,
trading on the London and Northern stock exchange. Its primary focus at the time was on West African merchants.
Mr. P.B. Nicholas sold his part in the company to P.Z in 1954; two years later, the company changed its name to Akimbo Industries Limited; and in 1960, it adopted the name associated Industries Ltd.
During the year, the company saw its first Indigenous and Nigerian equity involvement, and by the end of 1972, it had sold 40% of its share capital to indigenous Nigerians.
In compliance with Federal Government Directives, “Indigenous Act” sold 20% of its shares to Nigerians in 1976, raising the equity share participation to 60% in favour of Nigerians.
Following the merger of PZ and Company (Nig) Limited and associated Industries Limited in 1976, the company changed its name to PZ Industries Limited.
Between 1976 and 1970, manufacturing operations in the Aba factory were disrupted as a result of the civil war, and the company established a ranted premesis in Lagos State.
However, PZ Industries Limited became a public company in 1972, and it was listed on the Nigerian Stock Exchange. The name was eventually changed to Paterson Zochonis Industries Plc. The company “PZ Industries Plc” was established in 1976.
Furthermore, in 1996, PZ Industries Plc combined with Thermocol Nigerian Ltd to form PZ Industries Nigeria Plc, and in July 2007, the firm amalgamated with Cussons International England to form the current P.Z Cussons Plc.
The company produces the following products in Aba: SOAP, Imperial Leather SOAP, Robert, Premier, Baby Cussons soap, Carex, Duck Green Bar soap and others.
Detergents Elephant Detergent, Tempo, Jet, Morning Fresh, etc. Cosmetics: Venn-Dee Mib, Venus Relaxer, Jet Hair Cream, and Florurish Gel.
Pharmaceuticals. Maladin, Drastin Plus, Rob Ointment, Robert Paracetamol, Alagbin, etc.
Hair Thermacool includes air conditioners, refrigerators, and televisions of various generations.
PZ products are widely spread. In the country, with their wide distribution network, with buffer supplies maintained at crucial centuries.
The company has over 6000 employees across the country. PZ had transitioned from a merchant enterprise to an industrial concern. With manufacturing facilities in Aba, Illupeju, Ikorodu, and Isolo, as well as over 10 warehouses and depots spread around the country.
The country has roughly 500 employees, excluding the temporary staff of about 200 at the Aba facility.
1.2 Statement of the Problem
Product innovation in a firm is associated with a variety of issues that arise during or after the innovation.
Problems are:
A lack of marketing research results in the incorrect creation of a product.
Wrong application packing affects product sales.
The firm’s inability to determine when to discontinue a product during its life cycle leads to a decline in sales volume.
Poor sales are the result of improper product presentation to the market.
1.3 Object of the Study
Based on the first section of the study, the objectives are as follows:
To determine whether new product development can be used to stay competitive.
To assess the influence of product consumer demand for a company’s goods.
To determine whether there is a substantial association between the sales revenue of a company’s product invention and following innovation.
To provide a solution to the problem of innovation product.
To identify the different ways a product can be innovated.
To determine whether new product creation is a better method for maintaining brand identity than existing products.
To determine whether product innovation improves the organization’s image more than older products.
To determine if the buyer prefers improved quality to the present product (old).
1.4 RESEARCH QUESTION.
Are Paterson and Zochonis’ product sales revenue prioritised over innovation?
Do consumers prioritise new product development over established products?
Can the application of a product boost the company’s profits?
Does product innovation predict customer purchase decisions more than production?
What is the best. Period in the product life cycle to release a new product.
Is product innovation an effective tool/strategies to outperform competitors?
Do businesses utilise product innovation as a strategy to sustain revenue?
1.5 Research Hypothesis
Based on the problem statement and research question provided above. Null and alternative hypotheses were proposed.
H1: Lack of marketing research does not result in poor sales.
H1: Lack of marketing research leads to poor sales.
H2: Improper product presentation to the market does not result in lower sales.
H2: Poor sales were caused by an improper product presentation in the marketplace.
H3: Using the wrong packaging does not impact product sales.
H3: The incorrect application of packaging decreases product sales.
1.6 Significance of the Study
This research work is important in the following areas.
It allows the company to understand the effects of the new product.
This research will be used as a reference for future researchers at the university, as well as to help them improve on previously conducted research on the subject.
This is a requirement for obtaining the Higher National Diploma (HND). It also informs the public and government on the importance of product innovation in driving industrial progress.
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