THE IMPACT OF PRODUCT INNOVATION ON THE GROWTH OF A FIRM
The research work at
the impact of product innovation on the growth of a firm; this means, the yield
that comes from innarating products. This impact ranges from high
profitability, high scales volume increase, increase in sales volume, increase
in market share and high competitive advantage. This work is divided into five
chapters, which reveals the overview of the study, he Nigeria Breweries plc
background, statement of the problem, objectives of the study. It also states
the research questions, significance and scope of the study, limitation of the
study and also definition of terms. Chapter two contains the literature review
like various definitions of innovation, concepts of innovation, why companies
innovate, innovation strategies and other point relevant to this study. Chapter
three contains the research methodology and design, introduction, research
design, sources/methods of data collection, population and sample size, sample
technique, validity and reliability of measuring instrument and method of data
analysis. Chapter four contains presentation and analysis of data,
introduction, and presentation of data and interpretation of results. Chapter
five has the recommend solution like improvement in marketing research and
development. The recommended solutions include proper delivery schedule to make
product available at the right time, right place, right quantity and right
quality, summary of findings, conclusion, references and appendix.
TITLE PAGE- – – – – –
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APPROVAL PAGE- – – –
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DEDICATION- – – – – –
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ACKNOWLEDGEMENT- – –
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ABSTRACT- – – – – – –
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TABLE OF CONTENTS- –
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1.1 BACKGROUND OF THE
1.2 STATEMENT OF THE
1.3 OBJECTIVE OF THE
1.5 SIGNIFICANCE OF
1.6 SCOPE OF THE
1.7 LIMITATION OF THE
1.8 DEFINITION OF
2.0 LITERATURE REVIEW
2.2 WHAT IS
2.3 PRODUCT ORIENTED
2.4 A MARKET ORIENTED
2.5 WHAT IS PRODUCT
2.6 WHY PRODUCT
PRODUCER’S/REASONS FOR NEW PRODUCT INNOVATION
2.8 INNOVATION IN
NIGERIAN BREWERIES PLC
2.9 PERFORMANCE AND
DEVELOPMENT IN NIGERIA BREWERIES PLC
STRATEGY ADOPTED BY NIGERIA BREWERIES
2.11 CONCEPT OF
2.12 DIFFUSION OF
2.15 REASONS FOR THE
FAILURE OF NEW PRODUCT
MEASURES AND STRATEGIES
3.0 RESEARCH DESIGN
3.2 RESEARCH DESIGN
OF DATA COLLECTION
3.4 POPULATION AND
3.5 SAPLE TECHNIQUE
3.6 VALIDITY AND
RELIABLITY OF MEASURING INSTRUMENT
3.7 METHOD OF DATA
4.0 PRESENTATION AND
ANALYSIS OF DATA
4.2 REPRESENTION OF
4.3 ANALYSIS OF DATA
4.4 INTERPRETATION OF
CONCLUSION AND RECOMMENDATIONS
5.2 SUMMARY OF
This study explores
relationship between innovative activities, profitability and firms growth in
Nigeria Breweries Plc Awo – Ommama Owerri innovation is the future of any
business and without a contains flows of new products. This is so because, the
business environment is fast changing and becoming highly competitive so a
consumers’ changes in taste and needs.
In this study, the
researcher addressed a central issue in innovative studies namely:
Does it pay off to become involved in activity? What forms do the benefits of
innovation take? Does innovation entrance short run profitability, or does it
contributed to a growth, or both or neither.
One important point
about innovation is that it is not without cost, it requires the creation of
tangible and intangible assets which increases production cost. S second basic
argument about innovation and firm performance is that the innovation and firm
performance is hat the innovation of new or technically superior product
creates temporary monopolies, which improves the business performance of firms.
temporary imperfect competition can clearly be exploited in at least two ways.
On the other, firms can raise prices on the imperfect competition can clearly
be exploited in at least two ways. On the other, firms can raise prices on the
imperfect competition advantage which imperfect returns on sales.
Alternatively, firms can hold prices down, leading to more or less sharp
improvement in the price-quality ration on the product resulting In increasing
sales and profitability (however measured) may improve via innovation, but
innovation will improve the growth of the firm.
breweries plc also Ommama Owerri does have higher rate of growth of sales
(which means also, that the absolute amount of profit grows faster than in non
innovating firms) and impact of innovation on growth.
OF THE STUDY
Nigeria Breweries plc
(NBPLC) is the country’s pioneer brewery incorporated on 16trh November 1946
and commercial production in 1949. it stated as a joint venture between the
United African Company (UAC) international, UK and Heineken of Holland. Thus,
at inception it was 100 percent foreign owned. Today, the company is 60%
Nigeria owned and 40% foreign owned. The 40% foreign ownership is split almost
equally between WA holdings ltd, ( for UNILEVA) AND Heineken Bro Uwerijen BV.
activities includes the brewering and marketing of larger bear, 33 bear, stout
, no-alcoholic malt drinks and the boiling of Schweppes ranges of soft drinks
and crush range. It operates from six breweries locations namely: Lagos, Aba,
Owerri, Kaduna, Ibadan, Enugu, but the Aba location has recently shut down, due
to the general recession dilapidated infrastructure facilities, political
instability and the attended policy inconsistency and high cost of production
in Nigeria, the company suffered declining productivity and profit between 1985
consistent, strong and innovative initiatives and marketing support for all its
branches, along with the very enterprise driven customer service strategies,
the overall performance of the company was dramatically improved by 1998. all
the branch include star, gulder, legend extra stout, stout, maltina and Amstel
and a range of soft drinks – Schweppes companies (Heineken Technical service )
Bv premiums beverages international, B.V. Amstel Bro. Uwerijen shares). It also
invested in right selection, training and motivation of its staff as well as
improving the quality of its brand and substantially lunching itself into he
new technological sphere in brewery industry.
The significant rise
in profit after tax of the company from N1.7 billion between 1997 and 2001 is a
reflection of the fact that global connectivity through partnering and
networking infects dynamic sources of industrial rejuvanation , with the
necessary re-engineering of operation through innovation, right management and
networking, the firms emerged as a success string in Nigeria.
environment is fast changing competitions emerging derby business decisions and
action becoming more risky as the market demands and needs are fluctuation
daily external force is forcing many business organization to move outward
Firms, in the
presence of these circumstances have to survive and grow or die prematurely.
Given the rapid change on taste, technology and competition, it become risky
for a company to rely on its existing product. This is so dynamic, customers
want and expect new and adversely unfavorable to Nigeria Breweries plc if it
fails to apply adequate attention to it. Nigerian Breweries Company will branch
a new product today tomorrow if they discover that rival firms having flooded
the market with similar product satisfying the same needs.
This is a result of
the reason why maltina sip-it was introduced to capture a sector of drink
market and also respond to the major activities of the major competitors just
as they suggest; sip- is for convenient carriage. What you can take at interval
without necessary gulling the liquid at a time. Maltina sip-it is a
modification of maltina drink in the bottle. It was made to satisfy customers
who needed to quench their taste anytime anywhere of which maltina sip- it was
now put in a disposal pack for easy carriage the basic aim of the business
organization is to constantly satisfy the needs and wants of its customer in
the face of all these constraints by coming up with new product, service and
idea. Hence the mission statement of Nigeria Breweries plc read to be leading
beverage in Nigeria marketing consumer satisfaction in an environmentally
1.3 OBJECTIVE OF THE STUDY
The primary purpose
of the study is to llok at the impact of product innovation on the growth of a
firm. This study specially will almost others try it:
Determine if it pays
to become involved in innovative activities
Determine the effects
of innovation on firms performance
Does it contribute to
a firms growth or both or neither:
Find out whether
product modification increase market acceptance of new products.
Determine if product
innovation increase the sales volume of new products.
there is a significant difference between the sales revenue of a product before
and after innovated upon.
1.4 RESEARCH QUESTIONS
To what extent has
Nigeria breweries Awo Owanma Owrri succeed in creating awareness for its
Does a consumer
respond positively to the purchase of your company’s new product?
innovation the brewery industry bring about increase in sales volume?
1.5 SIGNIFICANCE OF THE STUDY
justifies their economic and social existence to satisfy their respective
customers through research on all the various brands of the different firms
involved. It is a result of this fact and also due to time factor, finance and
other constrains that this study will be delimited to the impacts of product
innovation on the growth on Nigeria Breweries plc Awo- Ommama Oweri.
However, for the
purpose of this study only the growth effects of innovating where held
constant. The target audience comprises of consumers in Federal Polytechnic
Nekede, Evan Enwerem University Eating outlet, supermarket, bar and management
staff of Nigeria breweries plc and Awo-ommama Owerri.
OF THE STUDY
industries in various countries al over the world are involved in the
innovation of their various consumers product. In the same vein, quitted a
number of firms are concerned with the innovation of their various product
brands. Most of these firms are basically similar in their mode of operation.
It would be impractical an practically impossible to conduct a places gathering
information. But the fact that the researcher was faced with all these the
research work became a successful one.
OF THE STUDY
encountered some challenges in the course of conducting the research. Some of
the challenges arose from the academic workload.
and unresponsiveness of some of the respondents who are illustrates financial
commitment of transportation to various places gathering information.
In a bad stat of repair failing to pieces.
The process of making changes introducing new ideas, methods, techniques etc.
It is a human activity directed toward satisfaction of wants and needs through
A closely liked group of companies part in an n activity with another or other,
especially one of the owners of the business.
To make something look new in the market.