CHAPTER ONE

• INTRODUCTION

1.1 BACKGROUND OF STUDY 

 New product development is one of the avenues of enlarging the size of the products portfolio of any organization. A new product one that is new to the company, but not necessary new to the market where the general product may already exist. The introduction of truly innovative products is of race occurrences in Nigeria.

The reasons are that most of our manufacturers are following the strategy of import substitution.

New product is one which is either newly introduced to the market or a modified product. The newness of a product is seen from customers ot consumers point of view. Little wonder then Baker (1980:20) indicated that a new product could be considering anything which is perceived as such by the consumer, or with which the firm has no previous experience. New product therefore could be seen in the following light –existing product introduced to a new or new product introduced by either new or existing market belt new or existing market. The modification envisaged could be in package colour, features, sizes, etc. It could be pointed out that when a product has attained its decline stage, it is incumbent upon the management of that organization to see to the fact that a new product is developed to replace the one being phased out.

In this research study, six major strategic roles that companies set for the new product.

• To maintain position as a product innovator
• Defend a market share position.
• To establish a way in a future market
• To prompt a market segment
• To capitalize on distribution strength
• Exploit technology  in a new way

Generally, companies require complex organization arrangement for new product development of the familiar ones Booz, Alcen and Hamuton (1980) identified six categories and their news to the company and the market.

New products line, new product allows a company to enter an established market for the first time.

Improved in revision to existing products existing new product that are targeted to new market, the new segment. Cost reduction, a new product that provides similar performance of lower cost.

The impact of new product development on the survival and growth of the firm has made Guinness over the years to have brought innovation and deployed various marketing strategies, all in a bid to out place each other.

1.1 BACKGROUND OF THE FIRM

Guinness Nigeria plc is a Nigeria brewery founded in 1962. Gunner’s mid-strength, a low alcohol stout being test marketed in limerick.

Guinness Aba brewery was the former site of defunct public brewery which was abandoned for:

In movement 28, 2005, the Guinness breweries plc plants at Aba and Benin which were built by double decked have the advantage of strength and beauty Guinness result for the year ended 30th June 2009, show that the board of directors recommended a dividend of N 7.50 perannual may 26 2010 on the other hand, the strength of Guinness Nigeria plc lies in its foreign extra stock were the company is said to control. The main product is Guinness draught, a 4.1% dry stout is one of the most successful bear brand worldwide.

Insight of the Guinness family, the  grandson of the original Arthur Guinness, bir  beryamin Guinness, was  lord major  of Dublin and was created a baronet son Arthur, baron ardilaun (1840-1915), sold cont role of the brewery to sir Binyamin’s third son Eduard (1847-1927), who become 1st earl of Iveagh. Iveagh launched the company on the London stock exchange in 1886. up  until then only other partners outsides of the Guinness of the Guinness family were members of the [purser family who  helped run the brewery  throughout most of the nineteenth  century he, his  son and great  grandson, the 2nd and 3rd  earks chaired the Guinness company  until  the 3rd earls death in 1992  . there are to longer any members of the Guinness family on the board.

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