EFFECTIVE STRATEGIES FOR NEW PRODUCT INTERODUCTION (A CASE STUDY OF TOP TEA MADE BY WONDER FOOD NIGERIA LIMITED IN ENUGU METROPOLIS)
This study was motivated by the necessity to establish the marketing strategies for new product development of top-tea in Enugu Metropolis. A crucial study of wonder foods Nig, ltd Enugu.
However, the need for effective integration of elements of marketing strategies cannot be ignored if effective marketing of top-tea is to be achieved. This is the area at which this study is aimed at indicating in the minds of marketers. This elements being product price, place and promotion have to be well mixed for good result.
To solve the research problem both primary and secondary data were collected. The research instruments used in collecting the data were questionnaires and oral interview. The respondents comprised the relevant staff/management, distributors and customers of the company’s products.
The sample size for distributors and customers were determine using topman’s formular while census was used for management and relevant staff.
In organizing and presenting data collected, tables frequencies and percentages were used. The various hypothesis were tested using chi-square.
Finally, from the summary of finding the researcher found out that reduced price of product and good quality product enhances customer patronage. Therefore, firms in top-tea industry should try as much as possible to produce good quality products. However, to ensure even distribution of products, firms should adopt effective distribution strategy. Also, the promotion strategy, which was observed to be helpful in promoting to- tea products, should be properly adopted for good result.
Also the bring out consumer satisfaction and continuous increase in profit of firms. Thereby, making the problem of the company a thing of the pass.
TABLE OF CONTENTS
Table of contents
1.1 Back to the study
1.2 Statement of research problem
1.3 Objective of the study
1.4 Research hypothesis
1.5 Significant of the study
1.6 Scope of the study
1.7 Definition of terms
CHAPTER TWO: LITERATURE REVIEW
2.1 meaning of marketing strategies
2.2 What is marketing strategies
2.3 Product strategies
2.4 Pricing strategies
2.5 Distribution strategies
2.6 Promotion strategies
2.7 New product development strategies
2.8 Ways companies avoid new product failure
3.0 Research methodology/design
3.1 Source of data
3.2 Research instrument and method used
3.3 Population of study
3.4 Sampling technique
3.5 Determination of sample size
3.6 Method of data analysis
3.7 Questionnaire administration /distribution
3.8 Limitation of the study
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
4.1 Presentation and interpretation of data
4.2 Test of hypothesis
5.0 Summary of findings, recommendations and conclusion
5.1 Summary of findings
1.1 BACKGROND OF THE STUDY
Wonder food Nigeria limited started its business operations in Enugu state in 1995 with much concentration on Enugu metropolis. It is on this premise that the effective strategies for new product introduction in the market is been studied.
Since the company started its business in 1995, it has recorded significant contributions to market and economic development not only in Enugu metropolis.
The firm stormed the market with its popular cowbell milk brand in 1995, the new product came in different pack sizes of powdered milk, it is aimed at segmenting the market, there by taking care of consumers in various income levels. Shortly after the product stormed the market, it called for itself a niche of market share in the milk industry. Cowbell performance and its market break – through became a miracle to both home and foreign competitors. Despite interviewing factors among the competitors, the product is still a household name not only in Enugu but also in Diaspora.
Wonder foods Nigeria Limited has recorded success by the acceptability of the cowbell brand. The firm went back to the drawing board with its cream of intellectuals to introduce yet another surprise top tea foods. The product is the latest and it has already become a wonder worker among other competitors. It is 100% tea and contains at least ten blends. The product comes in 2.115g size tag-less and infuses faster. It has attractive packaging of red and yellow colours. Top tea promises some health benefit like fast relief from fatigue, increase in consumer’s speed and clearness of thoughts. Although, the main competitors are lip ton and prime tea, other rivals includes highland, finnebru are making a serious in-red into the tea market. Top tea is at the introductory stage of its life cycle and the research would like to know and evaluate the strategies the form used in introducing the product.
A firm like wonder foods Nigeria limited must not relent in its effort in for effective strategies for new product introduction in the market, based on the performance of their first product (cowbell milk) which performed creditably by having its sales increased than several other brand in the market. Cowbell is also competing favourable with market leaders (peak milk), within its nine years of introduction in Enugu metropolis.
The wonder food Nigeria limited which is fighting to lead the milk market not only in Enugu metropolis but in Nigeria as a whole, vigorously pursuing its policy of developing and adding new product to its product.
In 1995, cowbell stormed the market in Enugu metropolis and within three years it became a house hold name /brand, a still surprise to other competitors and market watchers.
Further, to consolidate its bid to become the leader, the company introduced top tea as a complement in 1998 to give the consumers a unique satisfaction from cowbell milk and top tea.
The company is still nursing a plan of introducing sugar after sailing, top tea through the hurdles of the marketing environment through introduction and market penetration.
Top tea as at the time of this study has been in the market for eight years. Therefore in evaluating its performance, one would like to know the extent of its acceptance by customer/consumers and what strategies were used by the company to introduce the product in the market, and how effective these strategies have been.
Wonder foods Nigeria limited would like to equip itself with these data and information in order to ensure that its product strategies are effective and successful.
1.2 STATEMENT OF RESEARCH PROBLEM
Wonder foods Nigeria limited has dramatically rose to challenge or compete favourably with market leaders in the mild industry / business and undauntedly geared its efforts leading the market within the shortest possible time.
Consequently, it has the policy of developing and introducing new products to expand its product lines. In pursuance of this policy, wonder foods Nigeria limited developed a new product which it called top tea. Top tea product was introduced in Enugu metropolis in march 16, 1998 and ever since then has been competing favourably till date.
It has been noted that possible cases of product failure lies in the strategies employed in its introduction. Poor and ineffective introduction strategies result in total collapse of the product, thus wasting all the time and financial resources used in its conception and development.
This research is an excellent opportunity to probe into some of the factors that constitute poor and ineffective product introduction.
1.3 OBJECTIVES OF THE STUDY
The major objective of the study is to establish the impact of introduction of new product in the market. (a case study of top tea of wonder food Nigeria limited). Specifically, the study is aimed at ascertaining.
I. The strategies which wonder foods Nigeria limited used in introducing top tea in Enugu metropolis.
II. To determine the effectiveness of these strategies.
III. To ascertain if this new product is acceptable to consumers.