This research is intended to apprise the
development and marketing of a new product as company life wire by
Nigerian Breweries Plc, Aba. This project has been divided into five
chapters .chapter one deals with the background of the study, statement of
Problems, objective of the study, significance, and Research question. Chapter
two is also about the literature review, what is product, what is new product
development process, why new product fail in the market place and why new
product is successful. Chapter three deals with the research design
methodology, research design, and area of study, population, sample techniques
and sources of data. Chapter four deals with how the data was presented and
analysis, analysis of findings and test of synthesis through the use of
questionnaire. Finally, chapter five deals on the summary, of findings, the
conclusion and the recommendation made to the Nigerian Breweries Plc, Aba.
Chapter one: Introduction
1.1.1 Profile of
and Limitation of the
Chapter two: Review of Literature
if a new
Life cycle management
do so many new product
are marketing strategies for new product.
firms develop new
3.1 The design of the
3.2 The area of
3.3 The population of the
3.4 Sample and sampling techniques
3.5 Method of data
3.6 Data Analysis
3.7 Rule for the testing of
Chapter four: presentation and analysis of
Chapter five: Restatement, summary,
conclusion and Recommendation.
suggestion on the
1.1 BACKGROUND OF THE STUDY
Product and development is a systematic process for originating,
evaluating and developing new product ideas and adopting these showing promises
that they can be profitably sold in the market place. This management procedure
must be employed to generate, collect and screen ideas for new product, and
then develop, test and commercialized the new items.
Every new product is
supposed to go through the evolutionary cycle ending in the commercialization
of the product. The evolutionary cycle ending ideas exploration, idea
screaming, concept development testing marketing strategy development, business
analysis, product development, marketing testing and commercialization
Developing and marketing new product as a company life wire is
both a risky and profitable venture. It is risky in the sense that if the
product fails the company would lose a lot of money, which has been expand in
the process of developing the new product. On the other hand, if the new
product succeeds, the company would reap a lot of benefit through increased
New product development
is a strategy usually adopted by the Nigerian breweries plc. The company has
the policy of enhancing it’s product quality and adding new product to its of
the critical nature of the beer breweries companies, the Nigerian breweries plc
management must know how best to develop and dispose its new product not only
at a profit to the business but also to sustain and maintain consumer brand
loyalty of the product.
New products are often promoted and consumers are stimulated and
persuaded to try the product. Having tried the new purchased and repurchased
the product, if successfully test market, it is the marketed. This study tried
to examine the development and marketing of new product as a company life wire.
Case studies of Nigerian breweries plc, Aba, built by the company testify to
its abiding interest in the acts. The building and maintenance of craft,
centers are part of the company’s contribution to the promotion and preservation
of Nigerian acts and culture.
Nigerian breweries Plc
is a model of success in the private sector. The company’s high profile,
profitability and successful operations can be traced to good product quality;
efficient management of operations and strategic penetration into the market
environment. Others are proper understanding of consumer attitudes and habits
and high social responsibility profile at national and zonal levels.
OF NIGERIANN BREWERIES PLC
SCOPE OF THE OPERTIONS
Nigerian breweries plc, the pioneer and largest brewing company in
Nigeria, was incorporated in 1946 and recovered a land mark when the first
bottle of STAR LARGER BEER rolled off the bottling lines in its Lagos brewery
in June 1949 . This was followed by Aba Brewery which was commissioned in 1957,
Kaduna brewery in 1963 and Ibadan Brewery in `1982.. In Enugu. the company
acquired its fifth Brewery in September 1993. Thus from it’s humble
beginning in 1946, the company now has five breweries from which high quality
products are distributed to all nooks and corners of this great country.
With about 50000 shareholders, the authorized share capital of
Nigerian breweries was increased from 288m to N457m in 1994 by the
creation and distribution of one of new share for every one share held by
Sixty-seven percent (67%) of the share is held by Nigerian amongst
who are company employees of various categories. The company’s turnover
increased from 7.166 in 1994 to 10.76 in 1995, while a sum of 4.06 was paid to
the federal and state governments in various forms of taxes as against 2.46 in
the previous year. In 1995, the company paid a dividend of 0.85 kobo per share.
This level of dividend
is better appreciated if it is recalled that the scrip issue of one for one
made the previous year impacted vary heavily on the equity base of the company
by increasing it from 457.5 million ordinary share to 915 million ordinary
share. The import of these developments has been a corresponding growth in the
prosperity of company’s shareholders whose funds have appreciated into values
for in excess of their original investments.
Nigerian breweries plc has a portfolio of five high quality brand:
star lager beer (1949) guilder lager beer (1970),Maltina (1976)< legend
extra stout (1992) and Amstel Malta (1994). Together, position in the total
brewed products market in franchise compliment other company values and as the
house of quality.
RESEARCH AND DEVELOPMENT
Nigerian breweries Plc has kept pace with key international development,
that ensuring that it’s systems, processes and operational procedures are
always in conformity with proven best practices in most parts of the
world. It is in line with the policy that the company established a 4
million research and development center (currently valued at 40 million) to
enhance it’s research activities. Commissioned in June 1987 the research and
development center conducts research and development center conducts research
on all aspects of the brewing operation.
1.2 STATEMENT OF PROBLEMS
The current economic
recession and Austenty measures have virtually paralyzed almost all business
activities in Nigeria and breweries businesses are no exception. The emergence
of main beer breweries and the resultant proliferation of many types of beer
have given rise to competition.
For an organization
like Nigerian breweries plc, Aba to survive and achieve sustained growth in a
competitive marketing environment. It has to strive to achieve the satisfaction
of the needs of the target market.
The study or this
research diagnosis problem that arise as a result of rapid changes in
consumer’s tastes, technology, competition on marketing environment
As a major brewing
concern, the company encourages the establishment of ancillary businesses. Many
of these organizations and individuals depend largely on the company for their
means of livelihood. These include manufacturers of bottles, crown corks,
labels, cartons, plastic creates and such service as hotels/clubs and direct
Nigerian breweries plc
is a socially responsible corporate citizen with an enviable record of
rendering corporate philanthropy in the areas of education, sports, health and
the arts, among others. The companies recently establish an education trust
fund of N50 million to take more active part in the funding of educational and
research facilities in higher institutions, all in an effort to provide and
encourage academic excellence in Nigeria.
This in addition to its
annual university book price award, to 18 institutions of higher learning in
the country as well as the secondary/university scholarship programme for
children of its employees
Nigerian breweries plc,
is the foremost sponsor of sports by variety in the country with sponsorship
covering table tennis, lawn tennis, cycling, , golf, badminton, dart, boat race
and ayo. The aim of develop Nigerian sportsmen and women to participate in
national and international sports, in the health sector, the company is
committing funds to the building of the skill cell center in Nigeria. The Oyo
state craft village in Ibadan and the craft center in Benin.
1.3 OBJECTIVES OF THE STUDY
The study aims at
determining how an organization can redesign or change its product to enable
them cope with changing taste of the consumer.
This could be achieved
by taken the following research objectives into consideration.
1. To find out new product development justifies organizational
2. New product development help to stabilize or revitalize a
3. New product development helps an organization to achieve
4. New product development helps an organization to achieve
1.4 RESEARCH QUESTION
The fundamental research questions, which this study will attempt
to find appropriate defensive and reliable answers to include the following:
1. Why do so many new product fail?
2. What type of marketing strategy does your company employ?
3. What is the most effective way of selling the company’s new
4. Despite the wide sales of your product, why do you embark on
new product development?
5. Which people are your target audiences?
6. When embarking on new product development does it cover your
7. Does your product cover some regional area or is it nation wide?
1.5 RESEARCH HYPOTHESIS
HO: development and marketing of new product has not increase
HA: development and marketing of new product has increase product
HO: marketing strategy employ in Nigerian breweries plc Aba, has
not been significant influence on new product
HA: marketing strategy employ in Nigerian breweries
plc Aba, has some significance influence on new
HO: making new product available to all distributors
outlets has not been effective.
HA: making new product available to all distributors outlets has
HO: embarking on new product development has not
been effective to maintain market leadership
HA: embarking on new product development has been
effective to maintain market leadership.
1.6 SIGNIFICANCE OF THE STUDY
This research project is significant in many ways.
To government it will
help to know the areas on when to developed and market new product to the
public, also when to assist organizations or individual with financial
assistance to embarked on new product development.
To Nigerian society, it
will help by explicitly laying bare the many ways in which development and
marketing of a new product can be done effectively. It will also increase the
knowledge of society on the issue.
To Nigeria breweries
plc, Aba management this work will be beneficial in the area of decision
making, on planning and developing of new product, withstand competition in the
market, maintain market leadership, satisfactions of customers profitably.
To researcher, it will
increase my knowledge on the development and marketing of a new product. It
will help for award of my higher national diploma result (HND). It will equally
enable me to make my contribution to the development and marketing of a new
product by making my suggestions.
Further more, this
research project is significant to the entire academic world and therefore
serves as basis for future researchers.
WHY NIGERIAN BREWERIES DEVELOP NEW PRODUCTS AS A COMPANY LIFE WIRE
1. Profit and customer satisfaction (the basic reason)
2. The products life cycle
3. The price success
4. Defensive reason- market share
5. The pressure of competition
1.7 SCOPE OF THE STUDY
The research work is directed to the study of new product
development and marketing as a company life wire of Nigeria breweries plc, Aba.
Emphasis will be on key work of the development and marketing of new product.
All that entailed in planning new product, stop and processes that are involved
in developing the new product are to be analyzed.
The company of the
study Nigeria breweries plc, Aba which is a manufacturing company, A study on
how to develop and market new product is carried out mainly in the production
and marketing department and others such as technical, engineering and purchase
that are involved in development and marketing of new products.
Since the research work
is with particular reference to Nigeria breweries plc, Aba to assess how they
actually carry out development and marketing of new product. Also the research
work is designed so as to enumerate ways of planning and development of new
1.8 DEFINITION OF TERMS
1.PRODUCT: is anything that can offered to a
market to satisfy a want or need
2.PRODUCT DEVELOPMENT: is the final conversion of
ideas and concepts about product into physical form. New product is either
developed or there is improvement on former product.
3.PRODUCT PROLIFERATION: this is one of the
specific strategies the market challenger can use to attack the leader by
launching a larger product variety thus giving buyers more choice.
4. ADOPTION: a decision by individual to become a regular user of
5. MARKETING ENVIRONMENT: The actors and forces that surround both
the buyer and the marketing mix, it consist of political, legal, societal
consumer movement etc
6. MARKETING: Is an organizational function and a set of processes
for creating, communicating and delivering value to customers and for managing
customer relationship in way that benefit the organization and it stake holders.
7.TEST MARKETING:A Limited introduction of a product in areas
chosen to represent the intended market to determine probable buyers reaction
to various part of a market mix.
TERMS AND CONDITIONS APPLY
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