PROJECT FILE

ON
THE IMPACT OF NEW PRODUCT DEVELOMENT
ON THE GROWTH

ABSTRACT
The success of an organization lies on their ability to develop new products, innovate,
and effectively establish the new product development. The objective of this study
basically focuses on the impact of a new product development on the growth of a firm. In
the subsequent chapters, we will look into the meaning of new product development,
factors militating against it, and its influences / impacts on the growth of a firm.

TABLE OF CONTENTS

Title Page.i
Approval Page....ii
Certification.iii
Dedication...iv
Acknowledgment.v
Abstractvi
List of Tables...vii
Table of Content.viii

CHAPTER ONE: INTRODUCTION/BACKGROUND OF STUDY

1.0

Introduction1

1.1

Background of Study1

1.2

Statement of the Problem5

1.3

Purpose and Objective of the Study..6

1.4

Research Questions7

1.5

Significance of the Study7

1.6

Scope and Limitation of the Study.8

1.7

Research Hypothesis..9

1.8

Definition of Terms..10

CHAPTER TWO: LITERATURE REVIEW

2.0

Literature review13

2.1

New product development...13

2.2

Type of new product development.....14

2.3

Product planning and product development..15

2.4

Why new products are developed...17

2.5

Why new products fail or succeed...17

2.6

Organizational arrangement of handling

new product development..19

2.7

From planning to commercialization.....22

2.8

The product development process26

2.9

The concept of product life cycle...28

2.10 The

concept

of

innovation...31
2.11 What

brings

about

diffusion

and

adoption

influences.34
Reference..39

CHAPTER THREE: RESEARCH METHODOLOGY

3.0

Research Methodology..40

3.1

Sampling Unit / Frame40

3.2

Sampling Method41

3.3

Determination of Sample Size..41

3.4

Method of Date Collection42

3.5

Method of Questionnaire Development and Collection...42

CHAPER FOUR: DATA PRESENTATION & ANALYSIS

4.0

Data Presentation and Analysis..43

4.1

Respondents Characteristics and Classifications.43

4.2

Data Analysis and Interpretation..43

4.3

Test of Hypothesis..52

4.4

Discussions of Findings.60

CHAPTER FIVE: SUMMARY, CONCLUSION &

RECOMMENDATION

5.1

Summary..62

5.2

Conclusion63

5.3

Recommendation63
Reference.65
Appendix...66

Industrial Profile

Information Technology is one of the most important industries in the Indian

economy. The IT industry of India has registered huge growth in recent
years. India's IT industry grew from 150 million US Dollars in 1990-1991 to
a whopping 50 billion UD Dollars in 2012-2013. In the last ten years the
Information Technology industry in India has grown at an average annual
rate of 30%.
The liberalization of the Indian economy in the early nineties has played a
major role in the growth of the IT industry of India. Deregulation policies
adopted by the Government of India have led to substantial domestic
investment and inflow of foreign capital to this industry. In 1970, high
import duties had forced IBM to leave India. However, after the early
nineties, many multinational IT companies, including IBM, have set up their
operations in India. During the ten year period 1992-2002, the Indian
software industry grew at double the rate as the US software industry

Some of the major reasons for the significant growth of the IT

industry of India are: Abundant availability of skilled manpower.
Reduced telecommunication and internet costs.
Reduced import duties on software and hardware products.
Cost advantages.

 Encouraging government policies.

Some of the major companies in the IT industry of India are:

Tata Consultancy Services (TCS)

Infosys

Wipro

IBM

HP

HCL

Cognizant Technology Solutions (CTS)

Tech Mahindra

HSBC

India's IT industry caters to both domestic and export markets. Exports

contribute around 75% of the total revenue of the IT industry in India. The
IT industry can be broadly divided into four segments:

IT services
Softwares (includes both engineering and Research
and Development)
ITES-BPO
Hardware

IT Industry, Information Technology Industry

Information technology, and the hardware and software associated with the
IT industry, are an integral part of nearly every major global industry.
Information technology, and the hardware and software associated with the
IT industry, are an integral part of nearly every major global industry.
The information technology (IT) industry has become of the most robust
industries in the world. IT, more than any other industry or economic facet,
has an increased productivity, particularly in the developed world, and
therefore is a key driver of global economic growth. Economies of scale and
insatiable demand from both consumers and enterprises characterize this
rapidly growing sector.
The Information Technology Association of America (ITAA) explains
'information technology' as encompassing all possible aspects of information
systems based on computers.
Both software development and the hardware involved in the IT industry
include everything from computer systems, to the design, implementation,
study and development of IT and management systems.
Owing to its easy accessibility and the wide range of IT products available,
the demand for IT services has increased substantially over the years. The IT
sector has emerged as a major global source of both growth and employment

 Features of the IT Industry at a Glance: Economies of scale for the information technology industry are
high. The marginal cost of each unit of additional software or
hardware is insignificant compared to the value addition that
results from it.
Unlike other common industries, the IT industry is knowledgebased.
Efficient utilization of skilled labor forces in the IT sector can help an
economy achieve a rapid pace of economic growth.
The IT industry helps many other sectors in the growth process of the
economy including the services and manufacturing sectors

The role of the IT Industry

The IT industry can serve as a medium of e-governance, as it assures easy
accessibility to information. The use of information technology in the
service sector improves operational efficiency and adds to transparency. It
also serves as a medium of skill formation.

MAJOR STEPS TAKEN FOR PROMTION OF IT

INDUSTRY
Domain of the IT Industry
A wide variety of services come under the domain of the information
technology industry. Some of these services are as follows:
Systems architecture
Database design and development
Networking
Application development

 Testing
Documentation
Maintenance and hosting
Operational support
Security services

Information technology in India

The Indian Information Technology industry accounts for a 5.19% of the
country's GDP and export earnings as of 2009, while providing employment
to a significant number of its tertiary sector workforce. More than 2.5
million people are employed in the sector either directly or indirectly,
making it one of the biggest job creators in India and a mainstay of the
national economy. In 2010-11, annual revenues from IT-BPO sector is
estimated to have grown over US$76 billion compared to China with $35.76
billion and Philippines with $8.85 billion. India's outsourcing industry is
expected to increase to US$225 billion by 2020. The most prominent IT hub
is Bangalore. The other emerging destinations are Chennai, Hyderabad,
Coimbatore, Kolkata, Kochi, Pone, Mumbai, Ahmadabad , NCR .
Technically proficient immigrants from India sought jobs in the western
world from the 1950s onwards as India's education system produced more
engineers than its industry could absorb. India's growing stature in the
Information Age enabled it to form close ties with both the United States of
America and the European Union. However, the recent global financia crises
has deeply impacted the Indian IT companies as well as global companies.
As a result hiring has dropped sharply and employees are looking at
different sectors like the financial service, telecommunications, and

manufacturing industries, which have been growing phenomenally over the

last few years.
India's IT Services industry was born in Mumbai in 1967 with the
establishment of Tata Group in partnership with Burroughs. The first
software export zone SEEPZ was set up here way back in 1973, the old
avatar of the modern day IT Park. More than 80 percent of the country's
software exports happened out of SEEPZ, Mumbai in 80s.
Each year India produces roughly 500,000 engineers in the country, out of
them only 25% to 30% possessed both technical competency and English
language skills, although 12% of India's population can speak in English.
India developed a number of outsourcing companies specializing in
customer support via Internet or telephone connections. By 2009, India also
has a total of 37,160,000 telephone lines in use, a total of 506,040,000
mobile phone connections,[9] a total of 81,000,000 Internet users
comprising 7.0% of the country's population, and 7,570,000 people in the
country have access to broadband Internet making it the 12th largest
country in the world in terms of broadband Internet users. Total fixed-line
and wireless subscribers reached 543.20 million as of November, 2009

Formative years (till 1991)

The Indian Government acquired the EVS EM computers from the Soviet
Union, which were used in large companies and research laboratories. In
1968 Tata Consultancy Servicesestablished in SEEPZ, Mumbai by the
Tata Groupwere the country's largest software producers during the 1960s.
As an outcome of the various policies of Jawaharlal Nehru (office: 15
August 1947 27 May 1964) the economically beleaguered country was
able to build a large scientific workforce, third in numbers only to that of the
United States of America and the Soviet Union. On 18 August 1951 the
minister of education Maulana Abul Kalam Azad, inaugurated the Indian
Institute of Technology at Kharagpur in West Bengal. Possibly modeled after
the Massachusetts Institute of Technology these institutions were conceived
by a 22 member committee of scholars and entrepreneurs under the
chairmanship of N. R. Sarkar.
Relaxed immigration laws in the United States of America (1965) attracted a
number of skilled Indian professionals aiming for research. By 1960 as
many as 10,000 Indians were estimated to have settled in the US. By the

1980s a number of engineers from India were seeking employment in other

countries. In response, the Indian companies realigned wages to retain their
experienced staff. In the Encyclopedia of India, Kamdar (2012) reports on
the role of Indian immigrants (1980 - early 1990s) in promoting technologydriven growth:
The United States technological lead was driven in no small part by the
brain power of brilliant immigrants, many of whom came from India. The
inestimable contributions of thousands of highly trained Indian migrants in
every area of American scientific and technological achievement culminated
with the information technology revolution most associated with Californias
Silicon Valley in the 1980s and 1990s.

The National Informatics Centre was established in March 1975. The

inception of The Computer Maintenance Company (CMC) followed in
October 1976. Between 1977-1980 the country's Information Technology
companies Tata Infotech, Patni Computer Systems and Wipro had become
visible. The 'microchip revolution' of the 1980s had convinced both Indira
Gandhi and her successor Rajiv Gandhi that electronics and
telecommunications were vital to India's growth and development. MTNL
underwent technological improvements. Between 1986-1987, the Indian
government embarked upon the creation of three wide-area computer
networking schemes: INDONET (intended to serve the IBM mainframes in
India), NICNET (the network for India's National Informatics Centre), and
the academic research oriented Education and Research Network (ERNET).
19912001
Regulated VSAT links became visible in 1985. Desai (2012) describes the
steps taken to relax regulations on linking in 1991:
In 1991 the Department of Electronics broke this impasse, creating a
corporation called Software Technology Parks of India (STPI) that, being
owned by the government, could provide VSAT communications without
breaching its monopoly. STPI set up software technology parks in different
cities, each of which provided satellite links to be used by firms; the local
link was a wireless radio link. In 1993 the government began to allow

individual companies their own dedicated links, which allowed work done in
India to be transmitted abroad directly. Indian firms soon convinced their
American customers that a satellite link was as reliable as a team of
programmers working in the clients office.
Videsh Sanchar Nigam Limited (VSNL) introduced Gateway Electronic
Mail Service in 1991, the 64 kbit/s leased line service in 1992, and
commercial Internet access on a visible scale in 1992. Election results were
displayed via National Informatics Centre's NICNET.
The Indian economy underwent economic reforms in 1991, leading to a new
era of globalization and international economic integration. Economic
growth of over 6% annually was seen between 1993-2002. The economic
reforms were driven in part by significant the internet usage in the country.
The new administration under Atal Bihari Vajpayeewhich placed the
development of Information Technology among its top five priorities
formed the Indian National Task Force on Information Technology and
Software Development.
Wolcott & Goodman (2003) report on the role of the Indian National Task
Force on Information Technology an
d Software Development:
Within 90 days of its establishment, the Task Force produced an extensive
background report on the state of technology in India and an IT Action Plan
with 108 recommendations. The Task Force could act quickly because it
built upon the experience and frustrations of state governments, central
government agencies, universities, and the software industry. Much of what
it proposed was also consistent with the thinking and recommendations of
international bodies like the World Trade Organization (WTO),
International Telecommunications Union (ITU), and World Bank. In
addition, the Task Force incorporated the experiences of Singapore and other
nations, which implemented similar programs. It was less a task of invention
than of sparking action on a consensus that had already evolved within the
networking community and government.
The New Telecommunications Policy, 1999 (NTP 1999) helped further

liberalize India's telecommunications sector. The Information Technology

Act 2000 created legal procedures for electronic transactions and ecommerce.
Throughout the 1990s, another wave of Indian professionals entered the
United States. The number of Indian Americans reached 1.7 million by
2000. This immigration consisted largely of highly educated technologically
proficient workers. Within the United States, Indians fared well in science,
engineering, and management. Graduates from the Indian Institutes of
Technology (IIT) became known for their technical skills. Thus GOI
planned to establish new Institutes specially for Information Technology to
enhance this field. In 1998 India got the first IT institute name Indian
Institute of Information Technology at Gwalior. The success of
Information Technology in India not only had economic repercussions but
also had far-reaching political consequences. India's reputation both as a
source and a destination for skilled workforce helped it improve its relations
with a number of world economies. The relationship between economy and
technologyvalued in the western worldfacilitated the growth of an
entrepreneurial class of immigrant Indians, which further helped aid in
promoting technology-driven growth.

2001present

Infosys Media Centre in Electronic City, Bangalore.

Millenium Tower in Kolkata, Salt Lake Sector-5, a major IT hub

in the city.

Tidel Parkone of the largest software parks

in Asiawas set up on the July 4, 2000 in
Chennai, to aid the growth of Information
Technology in Tamil Nadu.

Cyber Towers at Hitech City in Hyderbad

Patni Knowledge Park, Airoli, Navi Mumbai

Cognizant's Delivery Center in Pune

India is now one of the biggest IT capitals in the modern world.
The economic effect of the technologically inclined services sector in India
accounting for 40% of the country's GDP and 30% of export earnings as
of 2012, while employing only 25% of its workforceis summarized by
Sharma (2012):
The share of IT (mainly software) in total exports increased
from 1 percent
In1990 to 18 percent in 2001. IT-enabled services such as BackOffice
operations, remote maintenance, accounting, public call centers, medical
transcription, insurance claims, and other bulk processing are rapidly
expanding. Indian companies such as HCL, TCS, Wipro, and Infosys may
yet become household names around the world.
Today, Bangalore is known as the Silicon Valley of India and contributes
33% of Indian IT Exports. India's second and third largest software
companies are head-quartered in Bangalore, as are many of the global SEICMM Level 5 Companies.
And Mumbai too has its share of IT companies that are India's first and
largest, like TCS and well established like Reliance , Patni, LnT Infotech, iFlex, WNS, Shine, Naukri, Jobspert etc. are head-quartered in Mumbai. And
these IT and dot com companies are ruling the roost of Mumbai's relatively
high octane industry of Information Technology.
Such is the growth in investment and outsourcing; it was revealed that Cap
Gemini will soon have more staff in India than it does in its home market of
France with 21,000 personnel+ in India.[14]
On 25 June 2002 India and the European Union agreed to bilateral

cooperation in the field of science and technology. A joint EU-India group of

scholars was formed on 23 November 2001 to further promote joint research
and development. India holds observer status at CERN while a joint IndiaEU Software Education and Development Center is due at Bangalore.

India's IT industry (USD bn)

Particulars

FY
2010

FY
2011

FY
2012

FY
2013

FY
2014

IT Services

10.4

13.5

17.8

23.5

31.0

- Exports

7.3

10.0

13.13

18.0

23.1

- Domestic

3.1

3.5

4.5

5.5

7.9

ITES-BPO

3.4

5.2

7.2

9.5

12.5

- Exports

3.1

4.6

6.3

8.4

10.9

- Domestic

0.3

0.6

0.9

1.1

1.6

Engineering services, R&D and Software

2.9
products

3.9

5.3

6.5

8.6

- Exports

2.5

3.1

4.0

4.9

6.4

- Domestic

0.4

0.7

1.3

1.6

2.4

Hardware

5.0

5.9

7.0

8.5

12.0

- Exports

0.5

0.5

0.6

0.5

0.5

- Domestic

4.4

5.1

6.5

8.0

11.5

Total IT industry (including hardware)

21.6

28.4

37.4

48.0

64.

Health issues among Young labor force

Employees in IT / ITES services undergo high stress in their work
environment which raises serious concerns about work in this industry.[16]
The corporate HR practices are another concern where one survey found
TCS employees average age is 29 years and the recruitment practices which
contribute to the inexperienced work force in the industry. Corporate critics
shortage of human resources but the analyst says 20 year old industry cannot
have 6 year experienced labor force.[18] There have been raising concerns on

violating employment laws by corporates and there are harassment reported

from companies like Wipro.
Top 11 ITS Hubs in India
Rankin
g

City

Description

Bangalore

Popularly known as the capital of the Silicon Valley of

India is currently leading in Information Technology
Industries in India.

Chennai

It is the second largest exporter of Software. It has the

largest operations for Indias top software company TCS

Hyderabad

Hyderabad which has good infrastructure and good

government support is also a good technology base in
India. The Government of AP Has built a separate
township for IT Industry called the HITEC City.

Pune

Coimbatore

NCR

Mumbai

Pune, a major industrial point in India.

It is the Manchester of South India. Among major metromarkets Coimbatore (up 31% precent) MAY 11(Bangalore
showed the slowest rate of annual growth at 4 percent
driven by reduced demand in the BPO/ITES sector), It
Become an Upcoming Major IT hub of India.

The National Capital Region of India comprising Delhi,

Gurgaon, Faridabad, Noida, Greater Noida and Ghaziabad
are having ambitious projects and are trying to do every
possible thing for this purpose.
Popularly known as the commercial, entertainment,
financial capital of India, This is one city that has seen
tremendous growth in IT and BPO industry, it recorded
63% growth in 2014.[21] TCS, Patni, LnT Infotech, I-Flex
WNS and other companies are headquartered here.

Kolkata

Kolkata is a major IT hub in eastern India. All major IT

companies are present here. The city has tremendous
potential for growth in this sector with upcoming areas
like Rajarhat.

Trivandrum

Famously known as "Gateway of South India.

Trivandrum, the capital of kerala is a green metropolis and
tier I city. GOK provides a good platform for IT
development in the city with India's largest IT park
Technopark and dedicated Technocity SEZs.

10

Jaipur

This rapidly growing industrial hub houses a lot of

IT/ITES and BPO giants. Genpact, Connexions IT
services, Deutsche Bank and EXL BPO, Infosyss, Tech
Mahindra, and Wipro are here. There are plans to build the
largest IT SEZ in India by Mahindra under the Mahindra
World City.

11

Fast growing center of IT/IT-enabled services, BPO &

Bhubaneswar KPO.

India IT Industry
The Indian information technology (IT) industry has played a major role in
placing India on the international map. Over the last few years the IT and
BPO sector in India has become one of the major contributors to the
country's growth. The IT/ BPO industry in India has contributed directly and
indirectly to the economy by providing employment, generating revenues
and creating value.
The Indian IT industry is mainly governed by IT software and services such
as System Integration, Software experiments, Custom Application
Development and Maintenance (CADM), network services and IT Solutions.
According to the findings of National Association of Software and Service
Companies (Nasscom) the revenues of the Indian IT-BPO industry will

aggregate up to US$ 88.1 billion for the FY2011. The IT software and
services sector alone will account for revenues upto US$ 76.1 billion for the
same
year.
The export revenues earned by the sector will reach US$ 59 billion in
FY2011 making the sector a holder of 26 per cent of market share of the
total Indian export industry. The number of people employed with the sector
will also increase to 2 million employees. Within the realm of exports the IT
Services division grew at a rate 22.7 per cent in FY2010. It was the fastest
growing sector accounting to aggregate export revenues of US$ 33.5 billion.

Top IT Companies
As per the latest reports published by Dataquest, The top 20 IT companies in
India which comprise both hardware and software accounted for
accumulated revenues of $2 billion in 2009-10.

Top IT Companies in India

Below is a list of the top IT Companies in India in 2013 showing their
revenue and growth rate.
Company

Revenue

Growth Rate

Hewlett-Packard India

Rs 14,992 crore

16 percent

HCL Infosystems Ltd

Rs 11,836 crore

-4 percent

Ingram Micro India

Rs 8,824 crore

-6 percent

Redington

Rs 7,024 crore

7 percent

IBM India

Rs 5,888 crore

2 percent

Dell India

Rs 5,275 crore

24 percent

Wipro

Rs 5,268 crore

9 percent

Intel India

4,690 crore

Not available

Microsoft India

Rs 3,575 crore

14 percent

SAP India:

Rs 3,204 crore

46 percent

Acer India

Rs 2,749 crore

38 percent

Oracle India

Rs 2,700 crore

11 percent

APC-MGE

Rs 2,620 crore

-1 percent

Emerson Network Power India

Rs 2,500 crore

NA

Lenovo India

Rs 2,396 crore

-3 percent

Cisco Systems India

Rs 2,324 crore

0 percent

Tulip Telecom

Rs 1,965 crore

22 percent

LG India

Rs 1,798 crore

39 percent

Samsung India

Rs 1,664 crore

29 percent

IT Outsourcing in India
As per NASSCOM, the IT exports in business process outsourcing (BPO)

services attained revenues of $17.2 billion for the FY 20010- 11 going up by

almost 34.5 as compared to last year. It accounted for more than 77% of the
entire software and services income. Over the years India has been the most
favorable outsourcing hub for firms on a lookout to offshore their IT
operations. The factors behind India being a preferred destination are its
reasonably priced labor, favorable business ambiance and availability of
expert
workforce.
Considering its escalating growth, Patni Computer Systems the (IT) services
and solution giants in India have sealed a five-year contract with UK-based
IT solutions provider 2e2 worth US$ 32.09 million. According to the
agreement Patni will offer a host of support services to 2e2's clients and end
users.
A 5 year agreement between HCL Technologies and News Corp for
administering its information centers and IT services in UK. As per the
industry analysts, the pact is estimated to be in the range of US$ 200-US$
250
million.
US$ 50 million agreement between HCL Technologies and Meggitt, UKbased security apparatus manufacturer, for offering engineering facilities.
Global giant Walmart has short listed there Indian IT dealers namely
Cognizant Technology Solutions, UST Global and Infosys Technologies for
a contract worth US$ 600 million.
India's domestic IT Market
India's domestic IT Market over the years has become one of the major
driving forces of the industry. The domestic IT infrastructure is developing
contexts
of
technology
and
intensity
of
penetration.
Despite resistance by Barack Obama against outsourcing the Indian IT/BPO
industry still show an impressive rate of growth. According to a study

conducted by Gartner, the IT/ BPO sector in India will grow at almost 19
percent till the next two years. By the end of the FY 2012, the domestic
sector is estimated to expand to US$ 1.7 billion against the existing US$ 1
billion.
Government initiative in India's domestic IT Market
The Indian government has established a National Taskforce on IT
with an aim of formatting a durable National IT Policy for India
Endorsement of the IT Act, which offers an authorized structure to
assist electronic trade and electronic operations.
Major investments in India's domestic IT Market
According to Andhra Pradesh Government the state's SEZs and Software
Technology Parks of India (STPI) will witness an investment of US$ 3.27
billion
in
the
next
few
years.
EMC Corporation's total Indian assets are expected to reach US$ 2 billion by
2014.

Future of Indian IT Industry

The Indian IT sector persists to be one of the flourishing sectors of Indian
financial system indicating a speedy expansion in the coming years. As per
NASSCOM, the Indian IT exports are anticipated to attain US$ 175 billion
by 2020 out of which the domestic sector will account for US$ 50 billion in
earnings.

In total the export and domestic IT sector are expected to attain profits
amounting to US$ 225 billion along with new prospects from BRIC nations
and Japan for its outsourcing operations.

Profile of NetMax Technologies

NetMax technologies is an organization which was established in 2001 in
the field of network training, support & embedded system design solution.
Its mission is To provide world class solution in advance.
Netmax Technologies is a leader in network support, embedded systems, and
software & web development services. Netmax Technologies group of
companies is divided into two: Netmax Technologies (Core) & Netmax Web
solutions. It is a private company and its site is www.netmaxtech.com. Its
headquarter is in sco 198-200 3rd floor sec 34a Chandigarh.
An ISO 9001:2014 Certified Organization providing service in field of Education,
Software Development, Web site Development, Hosting Services since
almost a decade now and that proves our quality service because quality is
the only thing that can with stand the test of time. Its products are
CCNA,CCNP,MCITP,LINUX,PHP,.NET,JAJA,8051,PIC,AVR,PLC,ARM,a
nd REBOTICS.
Net max Web solutions, is an ISO 9001:2014 Certified Web Development
and Software development unit of NetMax Technologies established in 2001
in Chandigarh. We have been serving a wide variety of clients, ranging from
Corporate, Software Development, Educational Institutions, to other
Business houses.
An ISO 9001:2014 Certified Organization providing service in field of
Education, Software Development, Web site Development, Hosting Services
since almost a decade now and that proves our quality service because
quality is the only thing that can with stand the test of time.

Type:Privately Held
Company Size:11-50 employees
Website:http://netmaxtech.com
Industry:Professional Training & Coaching
Founded:2001
Branch office: Hyderabad
198-200 2nd floor
Jayabheri towers, Madhapur

Hyderabad(India)
Headquarters:Sco 198-200 3rd floor
Sec 34a Chandigarh,

Chandigarh 160022(India)

We since then have been the prime institution in the field of Training and
Education in Chandigarh and North India Region. With over 1000 students
under going training every year in field of IT and Electronics we have
proven our worth. Only Quality can withstand the test of time in todays
highly demanding market and we expanding since our establishment from
one office to five offices in four different cities since almost a decade ago
prove our worth. With professionals hired to provide training to the student,
we aim to give the real industry environment to the student so that they be
ready for it.

NetMax
Technologies
provides
industrial
training
to
BTech/MCA/BCA/Diploma students to make them proficient in following
fields
Advance Networking
JAVA development
PHP Programming and Web
Development
Redhat (RHCE)
Ubuntu Administration
Microsoft
System
Administration( MCSE 2003 ,
MCITP 2014 )
PLC and SCADA Automation
Technologies

.NET
development
Embedded systems
Robotics
NetMax Technologies (Core) takes care of IT support, embedded
systems R& D & Implementation services, whereas NetMax web solutions
is a web & software development company that takes care of Software
development & web service solutions.
It offers a vast portfolio of IT solutions to customers spread across Punjab,
Haryana & Himachal Pradesh. NetMax Technologies is a pioneer in the field
of IT education in north India.
NetMax Technologies set up education centre in Chandigarh (Punjab) and
followed them with centers in Patiala, Jalandhar, Ludhiana & Bhatinda in
the years that followed. In 2011, NetMax Technologies introduced corporate
training programs which as an initiative were highly appreciated by the
industry and corporate alike
We are looking for someone who is smart, innovative, web savvy, hard
working and has strong experience in SEO and internet marketing. The
successful candidate will be passionate about great client service and will
show it in their actions, their attitude, and their execution. NetMax
Technologies offers a vast portfolio of IT solutions to customers spread
across Punjab, Haryana & Himachal Pradesh. NetMax Technologies was set
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1.0

INTRODUCTION / BACKGROUND OF THE STUDY

As human beings have always sought for growth and development all through
their lives span also an organizational product. A good, service, idea that is
perceived by same potential customers as new are a new product. It may be
through innovation, imitation or renovation. In this piece of work, the researcher
will concentrate on the impact of new product development on the growth of a
firm. The researcher will also look at how new product development determines
both the levels of economic growth and standard of living of citizens.

1.1

BACKGROUND OF THE STUDY

New product development is one of the avenues of enlarging the size of the
product port folio of any organization, increasing its sales volume and enlarging
its financial strength. Many organizations seems not to have recorded much
success as a result of depressed economic situation. It is imperative to recognize
the fact that necessity give birth to invention or innovation, and for an
organization to avoid being forced out of the market, it has to innovate.

New product development is important in a competitive market like that of

Nigeria. It determines both the levels of economic growth and standard of living
of the citizens. Most products in the markets today have undergone changes over
times.

According to Mr. Rolands Lecture note, new product has been seen as the life
blood of any organization. This is because seizing new opportunities as they
emerge is a way to increasing profits. This means that a firm with a successful
new products gives it the chance of creaming off large profit before effective
competition develops. Every company must develop new product because new
products shapes the companys future. Replacement product must be created to
maintain or build sales. Customers want new products and firms will do their
best to supply them. Companies that fail to develop new products are putting
themselves at great risk.

Developing and managing products is critical to organizations survival and

growth. Although several organizational approaches to product management are
possibly the share common activity functions, and decisions necessary to guide a
product through its life cycle. Product managers coordinate efforts and become
the strategic centre for the product in all markets.
Marketing managers focuses on products for specific market. A venture team is
sometimes used to develop new products. Members of the venture team come
from different functional area within an organization and have authority to
execute plans. Product planning requires the coordination of such functional
areas such research and development, production and engineering, research and
finance, accounting and marketing. Each of these areas of departments has
functional authority over some aspects of the product.

To maximize the effectiveness of a product mix, an organization usually has to

alter its mix through such methods as new product or the development of
existing product deletion of a product, or the development of a new product.
Product modification refers to changing one or more of a products
characteristics. This approach to altering a product mix can be effective when the
product is modifiable, when customers can perceive the change, and when the
modification is desired by consumer. Products can be changed through the
quality, functional or style modifications.

New product development involves generating idea, screening to determine

which idea to develop, expounding an idea through business analysis, test
marketing and commercialization. The decision to enter the commercialization
phase means that the product has gotten to its full scale of production and that a
complete marketing strategy has been developed. The adoption process by which
the buyers go through in accepting a product include; awareness, interest,
evaluation, trial and adoption.

The process of a company in new product requires the establishment of effective

organization for managing the new product development process. The
development of new product helps in improving the satisfaction of the
consumers.

Therefore, this research is investigated on the impact of new product

development on the growth of firm using Nigeria Breweries Plc Aba, Abia State
as a case study. This industry produces both alcoholic and non-alcoholic drinks;
the alcoholic drinks are: Star Larger Beer produced in1949, Gulder Larger
produced in 1970, Heineken re-launched in 1998, Legend Extra Stout produced
in 1992, Gulder Max Larger Beer produced in 2012. Their non-alcoholic drinks
are: Maltina Bottle drink produced in 1976, Amstel malta produced in 1994,
Maltina sip it produced in 2011, Fayrouz produce in 2012.
There has been also a acute problems militating against the standard of new
produce development

Consequently, the standard of new product development is limited to the

following problems; lack of research or the on made is inadequate, lack of
capital, government policies, lack of training among personnels.

Therefore, proper production management should be maintained to improve or

encourage new product development on the growth.

1.2

OBJECTIVE OF THE STUDY

The purpose of the research is to study the impact of new
product development on the growth of the comany. The
research study was designed to enable the researcher and the
firm;

1. To determine the importance of research findings on the growth

of company
2. To determine the relationship between government policies and
new product development.

3. To examine how inadequate training programmed affects new

product development.
4. Examine the criteria in granting loans For external finding of
new product development.

1.1

LITERATURE REVIEW

1.2

WHAT IS A NEW PRODUCT

Perhaps the key criteria as to whether a given product is new
are how the intended market perceives it. If they buyers
perceives that a given item is significantly different (from
competitive goods being replaced in some characteristic
appearance / performance) then that product is a new product.

New product development according to John (1981 P. 233) Is

the creation and adjustment of goods and services to satisfy
customer demands. In creating and adjusting products to
satisfy customer demands, management should realize that it is
primary in the business of providing satisfaction. People spend
their money to attain satisfaction and not the specific technical
characteristics of the item being purchased. It is for this reason
that marketing research into the needs and desires of intended
market is so highly important to product development.

1.3

TYPES OF PRODUCT DEVELOPMENT

Product development is not limited to the creation of new
products. In fact, there are three basic types of product
development activities;

1. Development of new products

2. Improvement of existing products
3. Determination of new uses for existing products.

According to Kotler (1988 P. 428) if the product concept passes

the business test, it moves to R & D and or engineering to be
developed into a physical product. Up till now, it has existing
only as a word description, a drawing or a very crude mock-up.
This step calls for a large jump in investment which dwarfs the
idea evaluation costs incurred in the earlier stages. This stage
will answer whether the product idea can be translated into a
technically and commercially feasible product. If not the
companys accumulated investment will be lost except for any
useful information gained in the process.

The R&D department will develop one or more physical version

of the product concept. It hopes to find a prototype that satisfies
the following criteria.

1. The consumers see it as an embodying the key attributes

described in the product concept statement.
2. The prototype performs safely under normal use and
conditions.

3. The prototype can be produced for the budgeted manufacturing

costs.
Developing a successful prototype can take days, weeks,
months, or even years before it could be effective. So also in
designing a new commercial average for example, will take
several years of development word. Even developing a new
test formula can take time also.

1.4

PRODUCT

PLANNING

AND

PRODUCT

DEVELOPMENT
According to Stanton (1978 P. 167) product planning embraces
all activities that enable a company to determine what product it
will market. Adeyemi M.A. (2010 P. 316) see product planning
as the process that involves screening new product ideas,
testing their feasibility in the market, and planning a programme
to market them.

Product development, a more limited encompasses the

technical activities of products research engineering and design
more specially the combined slope of product planning and

product development includes marketing decisions in the

following areas
1. Which product should the firm make and which should it buy?
2. Should the company market more or fewer product?
3. What brand, package and label should be used for each
product?
4. What new use is there for new product?
5. How should the product be styled and materials should it be
produced?
6. In what quantities should each item be produced?
7. How should the product the product be priced?

Once a company has carefully segmented the market, chosen

its target customers, identified their needs and determined its
market positioning, it will now be easy for her to develop a new
product. However, market plays a key role in the new product
process by identifying and evaluating new product ideas and
working with R&D and others in every stages of development.

Every company must develop new products because new

product shapes the companys future. A company can add new
products through acquisition routes which can take three firms;
buying a license, buying from other companies, or Franchise
from other company.

1.5

WHY NEW PRODUCTS ARE DEVELOPED

Pride (1984) said that new products are developed and
introduced into the market for the following reasons:

1. To meet the customers needs and wants which are dynamic in

nature.
2. Companies develops new product in order to explore the
opportunity that is available to them.
3. New products are developed so as to tight competitors in the
market.
4. New products are been developed to ensure continuity of any
business ventures through making utilization of the idle and
excess capacity thereby making better profit.
5. New product development increases the total sales volume of
the firm.

6. It also increases its market share.

2.5

WHY NEW PRODUCTS FAIL OR SUCCEED

Kotler (2003 P. 351) why do some products fail, while others
seem to succeed?

In one of his survey, the respondent

executives gave the following reasons listed in order of

frequency of mention for the failure of new products (the 125
firms surveyed were considered to be successful product
innovators).
1. Inadequate market analysis over estimating potentials sales of
the new product, inability to determine buying motives and
habits, and misjudgments as to what products the market
wanted in regards to research.
2. Lack of training programme; failure to train marketing personnel
for new products and new markets.
3. Government policy; government constraints new products have
to satisfy consumer safety and environmental concerns.
4. Lack of capital; inadequate supply of money to some
companies with ideas but cannot raise fund to research launch
and even produce.

5. Shorter product life cycle; when a new product is successful,

rivals is quick to copy it. For example, Sony used to enjoy a
three year lead on its new products before others starts copying
but now Matsus hita will copy the product within six months,
leaving hardly enough time for Sony, to recoup its investment.
6. Fragmented markets companies have to aim their new
products at smaller market segment and this can mean lower
sales and profits for each product.
7. Poor timing of introduction: The usual mistake here is to
introduce a product too late to the market, although in most
cases the problem is premature market entry.

THE RESEARCH AND DEVELOPMENT / MARKETING

INTERFACE
According to Robert (1978 P. 44), Those individuals responsible
for new product planning and development must interest with
research and development in order to ensure the technical
feasibility of any new product idea, as well as to determine the

actual specification required for consumer satisfaction. This

interaction often breaks down for two reasons;

1. Lack of good communication during relevant stages in the

product evolution process.
2. Value conflict between the research and development group
and marketing personnel.
The First problem occur because research and development
has difficult responsibility of explaining the new technology used
in the new product development to the marketing staff. New
designs, materials, and procedure that must be clearly
communicated to those in the new product development
organization are constantly being developed. It is also
imperative that research and development groups be kept
informed of the long-rage goals of the firm in the marketing of
new products so that effort is congruent with these objectives.

Value conflict primarily because the researched development

has little appreciation for problems in branding, packaging,
distribution, pricing and promotion, and it must be instilled with

awareness and understanding of how the problems faced by

marketing organization affects the success of nay new product
introduction. Flexibility in managing role of research and
development seems to be the key to a successful cooperation.
Communication and understanding of the problems faced by
each member will help to minimize the conflict of interest.
Frequent meetings and careful scheduling will also aid in this
inter face.

IDEA GENERATION
New product development according to Anozie (2011) call for
generation of a large and interesting pool of possible product
ideas with a view to finding better ones. The greater the number
of ideas generated, the better the ones are lovely to be found.
Anozie (2011) further stated some sources of new product
ideas as follows:
1. Customers: - According to Anozie, the market concept
demands that the search for a new product ideas should start
with the identification of customers needs and wants. Ways of
identifying customers needs and wants are; Direct customer

surveys,

Projective

tests,

focused

group

discussions,

suggestion systems and letters received from customers, and

perpetual and preferential mapping of the current product space
to discern new opportunities.
2. Scientists: - Use of research labs for basic research e.g.
production of TV and transistors, new forms of packaging was
as a result of research into solid state physics some companies
exploit the basic technology to search for minor modifications of
existing products.
3. Competitors: - Competitors must watch the new product
development by companies. Marketing intelligence can come
from distributors, suppliers, and salesmen of the new product.
4. Company Salesmen and Dealers: - They are good sources of
product ideas because they have first experienced the
customers unsatisfied needs and complaints. They are often
the first to learn of the competitive developments.
5. Top Management: They can help by defining those product
market areas of greatest interest in which the new product is
needed.

2.8

THE PRODUCT DEVELOPMENT PROCESS

Given some of the major issues historically confronted by firms

in

developing

new

products

and

given

the

continued

proliferation of new consumer and industrial products in the

lake 1970s, 80s and 90s respectfully. It is therefore necessary

that a firm develop new products for commercialization.

According to Kotler (2010 P. 349) companies that fails to

develop new products are putting themselves at great risk.
Their existing products are vulnerable to changing customer
needs and tastes, new technologies, shortened product life
cycles, and increased domestic and foreign competition.

Kotler (2010 P. 356) typically listed the product development

process as follows;
1. Idea Generation: The process of generating new ideas may
consist of brain storming, reverse brainstorming, attribute
costing or problem inventory analysis.
2. Screening: Techniques for evaluating new ideas may consist
of checklist or open discussion where ideas are either
eliminated or considered further.
3. Business Analysis: The use of focus groups and concept as
to the exact nature of the idea before its prototype is made.
This analysis should also provide further evaluation of idea in

order to eliminate any of those not considered favourably at this

point.
4. Development: Prototype development of the idea must be
evaluated in terms of production problems, safety requirement
costs, and other modifications necessary before entering any
test market.
5. Testing: The setting up of test markets can provide valuable
data on the nature of the market and needed marketing
strategy changes or product modification necessary to ensure a
successful launch.
6. Commercialization: The new product is launched into the
market at full-scale production with a significant commitment of
the firms resources and reputation.

2.9

THE CONCEPT OF PRODUCT LIFE CYCLE

A.K Arowomole & M.A. Adeyemi (2011) see product life cycle as
a marketing theory in which products or brands follow a
sequence f stages including: introduction, growth, maturity and
sales declines. According to Cunblitt and Still (1971), product
life cycle begins where the new product development process

ends. Among many writers observed that products are like

living organisms during which they pass through certain stages,
which begins when the product idea is conceived through the
time it is introduced into the market.

The product life cycle is a attempt to recognize distinct stages

in the sales history of the product. The plc concept is mostly
used as a framework for developing effective marketing
strategies in different stages of the product life cycle. The
stages of this cycle cannot necessary be predicted in terms of
exact time nor can it be claimed that a specified product life
cycle must follow all of the stages with no alternative. The
stages of the product life cycle are as follows according Kotler
(2010) ;
1. The Introductory Stage: This is a period of slow growth as the
product is introduced in the market. And because it takes time
to roll out a new product and fill dealer pipelines, sales growth
tends to be slow at this stage. Profits are also nonexistence or
negative at this stage. Promotional expenditures are at their
highest ratio to sales because of the need to

i.

Inform potential consumers, ii. Induce product trial, and iii.

Secure distribution in retail outlets. Prices tend to be high
because costs are high.

2. The Growth Stage: This is a period of rapid market acceptance

and substantial profit improvement. Early adopters like the
product, and additional consumers starts buying it. New
competitors enter, attracted by the opportunities. They introduce
new product features and expand distribution. Prices remains
where they are or fall slightly, depending on how fast demand
increases. The product attain sales momentum through
favourable word of firm. Firms have to watch for a change from
an accelerating to a decelerating rate of growth in order to
prepare new strategies. So also market expansion strategies
would help strengthen the firms competitive position.
3. Maturity Stage: This is a period of a slow down in sales growth
because the product has achieved acceptance by most
potential buyers. Profits stabilize or decline because of
increased

competition.

Most

products

poses

formidable

challenges to marketing management. The maturity stage is

divided into three phases; growth, stable, and decaying

maturity. In the first phase, the sales growth rate start to

decline. There are no new distribution channel to fill. In the
second phase, sales flatten on a per capital basis because of
the market saturation. Most potential consumers have tried the
product, and future sales are governed by population growth on
a replacement demand. In the third phase, decaying maturity,
the absolute level of sales starts to decline, and customers
begin switching to other products.
4. Decline Stage: This is the period when sales decline for a
number of reasons, including technological advances, shifts in
consumer

tastes,

and

increased

domestic

and

foreign

competition. All lead to over capacity, increased price cutting

and profit erosion. The marketing strategy relevant to this
period is to identify the truly declining products, develop for
each

strategy

of

continuation

through

marketing

mix,

concentration that is concentrating its resources only in the

strongest markets and channels or milking strategy that is
sharply reduces its marketing expenses to increase its current
profits. Finally, the company may phase out the product in a

way that minimizes the hardship to company profits, employees

and customers.

2.10 CONCEPT OF INNOVATION

According to M.A. Adeyemi & A.K Arowomole (2010 P. 183)
Innovation is the process of producing something new inform
of product or services that someone or any company has never
produced it. It also refers to any good, service or idea that is
preserved by someone as new. Development of new products,
services or ways of working. Pride (1974) defines, innovation as
the creation of something new and different. In other words,
there should be a recognition of opportunity and the creation of
product to satisfy the newly found opportunity. This implies that
there will be an attempt at planned change, the planning of new
products to permit the constant introduction of profit making
opportunity through planned marketing efforts. More so, this
definition embraces original products, major modification of
existing products duplication of competitors products, and
product-line acquisition of all which involves addition of
something new into the production.

Continuous innovation is the only way to a very product

obsolence, yet successful new product developments is hard to
achieve. Reasons are;
1. Shortage of important new product ideas. Shortage of
fundamentally new technologies

needed

for

major

innovation to avoid economic stagnation.

2. Fragmented market; Competition leads to fragmented
markets. New products are directed to capture a large
share of a small segment instead of the main market.
3. Growing social and government constraints: New safety,
ecological

compatibility

and

other

government

requirements which have affected / slowed down the rate

of innovation decision in may industries.
4. Costliness of new product development process. A
company has to develop a great number of new product
ideas in other to have or find out a successful one.
5. High rate of product and services fall short of expectation
especially among the consumer product manufacturers.

6. Shortage life spans of successful products: The rate of

cult throat competition among rivals shortens drastically
the life spans of even commercially successful products.

IMPORTANCE OF PRODUCT INNOVATION

Anozie (2011) listed the following importance of product
innovation:
1. The advancement of technology and the proliferation of new
goods and services are visible in every industry or company,
consequently most of todays products are bound to be
replaced sooner or later. Hence, the profitability and every
survival of most companies or industries depend essentially
upon a continuing flow of successful new product. Therefore, is
the only response to the dynamic society and technology which
is subjects to continuous change.
2. Companies are increasing dependently upon new products for
the maintenance expansion of sales.
3. Few products, if any, perfectly satisfy the needs and frequency
change. The major objective of product innovation is to modify
product or renovate products to satisfy the need of consumers

at a reduced cost. The successful execution of this policy

generates customers loyalty. As the need arises companies
should quickly replace their current declining product before
competitors do it for them.

STAGES OF ADOPTION PROCESS

According to Roggers, the innovation diffusion process is the
spread of a new idea from its sources of invention or creation to
its ultimate users or adopters. The consumer adoption
process therefore focuses on the mental process through which

an individual passes form first leaving about an innovation to

final adoption.

Adopters of new products have been observed to move through

five stages:

AWARENESS
INTEREST
EVALUATION
TRIAL

ADOPTION
STEPS IN THE ADOPTION PROCESS
SOURCE: KOTLER (2004)
Awareness: - At this stage, the consumer becomes aware of the
innovation but lacks information about it.

Interest: - When a consumer develops interest in the product or

product categories, he searches for information about how far the

innovation can help him solve his consumption related problems

with ease.

Evaluation: - The consumer considers whether to try the

innovation by assessing the available information in the light of the
problems at hand and thereby noting whether further information
could be sought to further reduce ht risk involved in the decision.
Most consumers evaluation are cognitively or mentally related and
may involve the use of models, especially where two or more
brands are to be considered.

Trial: - The consumer tries the innovation to improve his or her

estimates of its value. Risk is always very high at the trial stage,
but it is often reduced by free samples, warranties and guarantees,
instruction books and many others.

Adoption: - The consumer decides to make full and regular use of

the innovation base on the satisfactory performance of the product
at the trial stage or favourable evaluation of the product innovation.

RESEARCH METHODOLOGY
In this chapter, the research has to discuss the methodology
used to carryout the research work. The main intention was on the
following research unit, sampling method, and sample size, method

of collection of data, method of questionnaire distributed, and data

analysis.

3.1

SAMPLING UNIT/FRAME
The population of this research work consist the staff of netmax

70 staff both senior, middle, and junior classes were used from each
local government making the entire population

3.2

SAMPLE METHOD
To draw the sample from the sampling unit, the researcher

adopted probability sampling method. This method gives all the

member of the sample unit equal chance to being selected. In this
way, every, member is qualified and whether or not he she is selected
is a matter of chance. Therefore, sampling method.

3.4

METHOD OF DATA COLLECTION

The obtained fine the respondents through the use of

questionnaire and interview. SECONDARY DATA:- The research also

made use of literature that are related to the topic such as textbooks,
journal, magazines and many others.

DATA PRESENTATION AND ANALYSIS

QUESTION 2: EXPERIENCE: What is the experience of the
companys workers?

TABLE 4.22 RESPONSES.

RESPONSES
1 -2
2-3
3 and Above
Total

NO. RESPONDENTS
15
15
30
60

PERCENTAGE
25
25
50
100

INTERPRETATION: - From the table 4.2 above shows that 15 or 25%

respondents were 1 2 years experience, 15 or 25% respondents
were 2 3 years of experience while 30 or 50% were 3and above
years of experience in the company.

QUESTION 3: Does your company carry out research always?

TABLE 4.23 RESPONSES
Responses
Yes
No
Total

No. of Respondents
20
40
60

Percentage
33.33%
66.66%
100

INTERPRETATION: - From the above table, 20 or 33% respondents

said Yes while 100 or 67% said No.

Therefore, the company does not carry out research always.

QUESTION 4:- If yes, how many years interval do they carry out their
research?

TABLE 4.24 RESPONDENTS

Responses
2 years
3 years
5 years
Total

No of Respondents
10
20
30
60

Percentage
17
33
50
100

INTERPRETATION: - Table 4.4 above shows that 10 or 17% of the

respondents said 2 years, 20 or 33% said 3 years while 30 or 50%
said 5 years.
Therefore, it was greed that the company carries out research in
every 5 year intervals.

QUESTION 5: How much does your company dget for research?

TABLE 4.25 RESPONSES

Responses
Below N20, 000
Above N20, 000
Total

No. of Respondents
40
20
60

Percentage
67%
33%
100

Interpretation: from the above table we see that 100 or 67%

respondents said that the company budget below N20, 000 for
research while 20 or 33% respondents said that the company budget
above N20, 000.

QUESTION 6: Is inadequate research a problem to new product

development on the growth of your company?
TABLE 4.26 RESPONSES
Responses
Yes
No
Total

No of respondents
43
17
60

Percentage
72%
28%
100

INTERPRETATION: - From the table above 43 or 72% of the

respondents said Yes, while 17 or 28% of the respondents said No.

QUESTION 7:- Does government agents? Make more to inspect your

products?
TABLE 4.27 RESPONSES

Responses
Yes
No
Total

No. of Respondents
48
12
60

Percentage
80%
20%
100

INTERPRETATION: - In analyzing the table above 48 or 80% of the

respondents agreed that government agents inspect the company ,
while 12 or 20% of the respondents said No.
QUESTION 8: Does the government policies effect the development
of new product in your company?
TABLE 4.28 RESPONSES
Responses
Yes
No
Total

No of Respondents
35
25
60

Percentage
58.33%
41.67%
100

INTERPRETATION: - From the table above 35 or 58:33% of the

respondents agreed that government policies effects new product
development in the company, while the remaining 25 or 41.67% of
the respondents disagreed.
QUESTIONS 9:- Does you acquire loan from bank and other external
means?
TABLE 4.29 RESPONSES
Responses

No of Respondents

Percentage

Yes
No
Total

35
25
60

58.33%
41.67%
100

INTERPRETATION: - In analyzing whether the company acquire loan

from banks and other external means, 35 or 33% agreed that the
company acquire loan from banks and other sources, while 25 or
41% disagreed.
QUESTION 10: What is the rate of the interest on the loan?
TABLE 4.210 RESPONSES
Responses
No of Respondents
Percentage
10%
5
8.33%
20
25
41.67%
30%
30
50%
Total
60
100
INTERPRETATION: - From table 4.10 above, 5 or 8.33% agreed at
20% while 30 or 50% agreed at the rate of 30%.

QUESTION 12: Does inadequate training hinder the growth of your

company?
TABLE 4.212 RESPONSES
Responses

No of Respondents

Percentage

Yes
No
Total

45
15
60

75%
25%
100

INTERPRETATION: - From the above table, 45 or 75% agreed that

inadequate training hinder the growth of the company, while 15 or
25% disagreed.

QUESTION 13: Does training improve new product development?

TABLE 4.213 RESPONSES
Response
Yes
No
Total

No of respondent
46
14
60

Percentage
76.67%
23.33%
100

INTERPRETATION: - From the above table, 46 or 76.67% of the

respondents agreed while 14 or 23.33% disagreed.

Question 14: Does new development increase the sales volume of

the firm?
TABLE 4.214 RESPONSES
Responses
Yes
No
Total

No of Respondents
44
16
60

Percentage
73.3%
26.6%
100

INTERPRETATION: - From the above table, 44 or 73.3% of the

respondent said Yes, while 16 or 26.6% of the respondents said No.

QUESTION 15: Does new product development increase its market

share?
TABLE 4.215 RESPONSES
Responses
Yes
No
Total

No of Respondent
50
10
60

Percentage
83.33%
16.67%
100

INTERPRETATION: - The table above shows that 50 or 83.33% of

the respondents said Yes to the question, while 10 or 16.67% said No
to the question.

FINDING
From the analysis of findings on the impact of new product
development on the growth of a firm (a case study of Nigeria
Breweries Plc Aba, Abia State), the researcher discovered the
following findings:1. The

staff

of

Netmax

Complained

that

research

and

development department does not carry out adequate research.

That they unable to find out what the needs and wants are
overestimating potential sales of the new products, and
enablement to determine the buying motives and habits of the
forget markets.
2. Lack of training programme. There is insufficient training
programme for the marketing personnel for new products and

new markets which effect the new product development of the

company.
3. Ineffective government policies and regulation by government
agents hinder the growth of the company there includes, the
inspection fees, taxes, levies, quality, dates of production and
the expiring dates.
4. Lack of Capital: The respondents complained that inadequate
fund is a problem to the new product development. Even when
new ideas were generated the management cannot raise
money needed for research, launch and even product.
5. That shorter product life cycle affects new product development
in the organization. The respondents also complained that most
products have shorter life cycles.

CONCLUSION AND RECOMMENDATION

5.1
Conclusively, in reading through the of this research work,
chapter one is expressly on the introduction of new product
development and most problems militating against them.
Chapter two tends to be more mature. It reviewed other authors
write up on the topic. Chapter three, the researcher stated the
methods

used

in

data

collection

and

distribution

of

questionnaire, which chapter four was used to prove that all the
research problems and hypothesis stated in chapter one were
true and real. This can be seen through the response of the
respondents from questionnaire items 6, 8, 12, 13, which were
analyzed using tabular form in percentages. After that chisquare (x2) was also used to test the hypothesis which were

accepted the alternative hypothesis (Hi). Showing that they are

all problems facing new product development which affects the
growth of a firm.

5.2

RECOMMENDATION
Based

on

the

recommended

findings
the

of

following

this

study,

suggestion

the
to

researcher
remedy

the

problems.
1. The

company

should

developed

their

research

and

development department so as to carry out adequate research

to enable them find what the consumers want and needs are in
order to satisfy them.
2. Good training programmed should be made available for the
marketing department or personnel of the Nigeria breweries plc.
For new production development which will expand the skill of
marketing personnel. It will also increase the quality of the
companys produce.
3. The government policies should not be ignored or over looked
to avoid bund or sanction by the federal government.

4. To resolve the financial problems, government should set up a

financial institution that will be granting loans with low or little
interest rate to the company. This financial assistance will help
go a long way to improving the newly idea generation for the
new product development. This money should also be used for
the purpose it is made for.
5. The problem of poor timing of introduction of the products
management should know where, how, and when consumers
needs a new product and before every productions or
introduction should be made.