Marketing Research project Topic Chapter 1-5 Product Development In The Cable Industry: Problems And Prospect.
This research work is aimed at identifying some of the variables affecting new product development in the cable industry using Cutix cable PlC. Nnewi as a case study. A look at this problem has show that customer’s wants and needs should be put into. Consideration before deciding on the new product to be produced, and the firm should make some that they have enough raw materials to meet the quantity ordered by her customers to avoid the problem of stock-out in the company.
This research is made up of five chapters, chapter one is centered on the introduction of the study, the purpose and the variables affecting product development. Chapter two deals with the works of some intelligent scholars who had done some research on new product development and some of the likely problems one can encounter when developing a new product. Chapter three dealt with the research methodology, the design of the study, questionnaires and method of data collection.
Chapter four looked into the findings and analysis while chapter five gave insight on the summary of difficulties involved before a firm finally come out with a new product in the market and the recommendations given to the cable industry to achieve the production of new products, without difficulties. It also contains the limitation of the study and suggestions for further study.
The product or watchword for marketing has to be associated to “innovation or die.
This innovational attributes can become a philosophy compelling or almost parallel to that of the marketing concept (Stanton W.S 1981).
- Offering new improved products for present markets.
- A strategy of selling a new product to existing markets.
- A state of creating new products that moves the product from concept to test phase and also involves the development of marketing mix (promotion, distributions and prices)
- A product market growth strategy in which a company develops new products to sell to its existing markets.
- Consist to of the companies seeking products for its current markets.
Development is often referred to as the technical side of business only. This interpretation or emphasis is not too concise as development itself is more than the application of scientific planning to ensure the progress of the enterprises as a whole
A clearer idea of the development functions is concerned with word “ improvement.” A firm that has decided to go into the manufacturing of a product that is in someway an improvement on those there competitors. If the firm wishes to have any success hey must exercise the development function right from the start.
The established business must pay a needed attention to give he product a better position in the market, otherwise it would be outrunned or out stripped by vibrant competitors. Improvement in design performance, materials and processes by a progressive firm may have direct impact on their product. Again, the demand for a certain circle may be of uncertain demand especially where fashion is involved and hence product development is paramount and of vital importance.
New product may be introduced to checkmate or replace again (obsolete) or unsuccessful ones. The need to smoothout seasonal sales fluctuation, exploring new opportunities and using or maximinising excess plant capacity. A new product can be a minor modification to the existing product features or in the packages of the product. The
Product development can as well meaning item which is “totally” new in concept. The term “new” product depends on the view of the firm or company concerned. what may not be looked at as a new product by the leader in the industry may be referred to as “new” by some other companies within that particular industry.
The need for product development can also be seen when we realize that
30 to 40 percent of a firms current value .
sales and products do same from products that were not in the firms product portfolio twice years ago. New results to either utilizes excess plant capacity or as a need to have enough products to have care of the seasonality in sales.
- Background Of The Study
Developing a product to satisfy the desire of the customers is always an up-hill task and most times a night more to most to most manufactures. Some manufactures are confronted with problems because of there incapacitations to handle product development.
Cutix plc is a company located at Nnew-Anambra state. Whose responsibility is to produce durable cables? The company is an employer of many workers. Cutix plc isa well know manufacturing outfit with credible excellent perfance in its corporate and social responsibilities. They are experts in electric cables and wires. The firm enjoys a commandable return on investment despite this, the firm still need to strengthen their market show byway of givens priority to further product development.
According to W.K Meniru, development is often understood and referred as the technical side of business and it also involves the application of Scientic planning to ensure the programs of the enterprises as a whole. In developing the product, a firm will also mercase its market share and the sales volume of the firm will also increase.
Some products of cutix cable came to a decline stage and this is as result of poor product development. Improvement in design performance, materials process by a progressive company may have direct impact on the sales of the competing enterprises and this may render the product absolute.
Cutix cable PLC Nnewi was incorporator with the chater to make and produce durable and high quality wires and cables using maximum local resources. The employed 100% indigenous manpower, uses local inputs in machinery and adopts rapid integrated programmes for its work-force.
The reason for choosing cutix PLC as a case study is that out of 100 different types and sizes of cable manufactured in Nigerian cable industry, by cutix PLC only forty (40) were successful in the market. Therefore, this study is aimed at identifying problems and prospects that leads to these massive product failure and to profer solutions.
1.2 STATEMENT OF THE PROBLEM
Product development is usually a complex situation that requires tactfulness. It is an inbill task for most firms, this is because companies developing products are not even sure of its acceptance or success in the market. Companies or firms that do not consideration seems to be taking some avoidable risks.
Such companies may finally see their products falling victim of changing consumer taste and need and at the same time face domestic and foreign competitions. Some of the problem associated to product development tends to have contributed to the inability of cutix 15 adequately handle the process and the problem could be traceable to poor marketing research, poor marketing efforts, inadequate marketing analysis and fragmented marketing of new products at a smaller market segment rate than the mass market.
Physical factors as product quality and packaging is part of the problem. For cutix PLC Nnewi their may dilemma is the identification of which factor among these constitute bottle-neck in their product development. This is one of the challenges of this study.
1.3 PURPOSE OF THE STUDY
- To identify the processes involved before cutix PLC could come out with a new product development (idea generation, and ands with commercialization).
- To identify the problems militating the various stages of product development with respect to Cutix PLC Nnewi.
- To axertain how government policies can influence cutix cables in developing a new product.
- To find out how cutix can develop a product that would command market a leader.
- To sort out alternative measures, of which if implemented by the marketing department of cutix would lead to innovation of a viable product at the lowest minimum cost.
1.4 SIGNIFICANCE OF THE STUDY
Due to the economic condition of the country change in consumer needs and preferences, technological changes and increase in competitions. In the cable industry in Nigeria with particular attention to cutix PLC, this research becomes paramount and ultmost importance in order to carry out a thoroughly study on the problems and prospects that cable manufacturers encounter in developing a new product. On completion of this work, it recommendations will be made available to cable manufacturer in Nigeria.
This in turn would enable the manufacturers to respossition their products in a more attractive way, have a good market share and indeed maintain its position as a product innovation. This result would also enable cutix cable PLC in the following ways:-
- To achieve sales growth and profit maximizations.
- Attract positive consumer reactions to its products.
iii. To replace the aging in successful products.
- To smooth out seasonal sales fluctuations.
- To explore new opportunities and using excess plant capacity.
1.5 RESEARCH QUESTIONS
- Does poor market analysis affect the development in the cable industry?
- Does poor timing of products introduction affect product development in the Nigerian cable industry?
- Poor feasibility studies does it affect the development of products?
- Does the product satisfying the need of her target market audience?
- Null Hypothesis (Ho) Lack of raw materials does
not affect new product development in cutix cable PLC.
- Alternative Hypothesis (H1) Lack of raw material affects new products development in cutix cable PLC.
- Null Hypothesis (Ho) The products of cutix cable Plc does not satisfy the need of her target market audience.
- Alternative Hypothesis (H1) The products of cutix PLC satisfies the need of her target market audience.
1.7 SCOPE OF THE STUDY
The economic and social justification for the existence of business in the ability of the business to meet to the needs of her customers profitably. A firm or company can meet this basic responsibility to the society through constant product development. This research is therefore designed to identify those problems and prospects an organization (cable manufacturers) encounter when developing a product in a developing economy like Nigeria, where there is high cost of capital acquisition, frequent changes in consumer behaviours, high cost of electricity, and high cost of labour and manpower.
Cutix cable PLC Nnewi was chosen by the researcher as the base for this study on problems and prospects of product development in the cable industry due to the fact that it was discovered that out of hundred (100) products developed by cutix PLC, only forty (40) were able to reach commercialization stage successfully.