STRATEGIES FOR INTRODUCING A NEW PRODUCT IN THE MARKET (A CASE STUDY OF ENCRISTO PHARMACEUTICALS LIMITED IN ENUGU)
The research work was on a study of how is introduce a new product in the market. The main objective was to determine whether the strategies used to introduce crustless cough expectorant in Enugu was effective or not. Both primary and secondary data were collected to solve the research problem. The population study comprised the consumer and personnel of Encristo pharmaceutical company limited Enugu. The research instrument used for data collection is questionnaires. Tables, frequencies and percentages were used in presenting and analysing the data collected. Based on data analysis, the researcher comes up with the following findings. The product was test marketed for a period of five months before it was officially launched on September 8,1997.During the time of introduction both radio, poster, sticker etc were used. Most consumer’s interviewed confirmed the quality company’s personnel believes that the strategies used in introducing the product is effective.
In conclusion, the researcher believes that the product is accepted and is moving well in the market.
TABLE OF CONTENTS
Table of content
1.1 background of the study
1.2 statement of the problem
1.3 objective of the study
1.4 research questions
1.5 signification of the study
1.6 definition of terms
2.0 literature review
3.0 research design and methodology
3.1 research design
3.2 population and sample size
3.3 sampling technique
3.4 method of data analysis
4.0 presentation and analysis of data
4.2 analysis of data
5.0 summary, conclusion and recommendation
5.1 summary of findings
BACKGROUND OF THE STUDY
The objectives of any organization is to create customers and satisfying them at a profit that is, producing goods and service that will satisfy the needs, wants and services of the customer and making a profit which will enable the company to survive. The purpose of any business must lie in the society since a business enterprise is an organ of the society.
It is the customer that determines what a business is, for it is the customer and he alone, who through being willing to ping for goods or for services. Convert economic resources into wealth, things into good. Any business must find out what its market is, who the customer is, where he is, what he consider valve, what he consider valve, what his unsatisfied wants, how does he buy and how can he be reached, it is the duty of the company is provide what the customer needs.
The main function of a company is marketing and innovation. Marketing is distinguishing the unique function of the business. A business is set apart from all other human organization by the fact that it market a product or services.
Any organization that fulfils itself through Marketing a product or service is a business and any absent or incidental is not a business any should never be run as if it were one.
Marketing activities start at the beginning rather than the end of the business because through its studied and researchers will establish. What the customer wants in a given period or season, what price he is willing to pay in a given product have authority in product planning innovation which is the last function of a business is the provision better and more economic goods and services.
It is not enough for the business to provide just and economic goods and services, it must provide a better an more economic ones.
Innovation goes right through all phases of business of may innovation in design, in product, in marketing techniques, in prices or in service to the customer.
Therefore, to develop and market new products the correct approach must be used is ensure that new product does not fail in the market.
There are two important stages in the development of any product and introduction or commercialization of the new product into the market. Many product have failed to make the expected impact on the consumers because the companies involved did not use the right strategies such as pricing, promotion and high product quality.
They forget that buyers and subjected a wide range of complexities and gavels reaction that are hard to predict. Their attitudes, dispositions, perceptions and motivations must be considered along with income and other demographic considerations.
It is the belief of this researcher that the satisfaction of the customer’s needs, wants and desires should be first in the uppermost mind of the producers and not profit maximisation. Through they should achieve sufficient profit to cover the risks of their economic activities so that losses can be curtailed. A company like Encrusts pharmaceutical company limited should avoid making mistake that many spell danger for its newly developed product by making use of the correct approach in both marketing. Commercialisation and introduction of the product into the market.
The Encrusto pharmaceutical company limited being one of the indigenous pharmaceutical companies in Nigeria incensed today is produce (OTC) over the counter dings has been pushing vigorously its policy of developing and adding new and better products to its existing products line. On September 8, 2011.
The company introduced a new product known as “CRUSTOLYN COUGH EXPECTORANT” into the Enugu market. At the early stage, this product did not make the expected impact and the company did not give up. The product has been in the market for the performance of the new product, one would like to know the extent of its acceptance by the consumers.
What strategies were used by the company in introducing the product into the market and how effective these strategies have been.
The company would like to equip itself with these data in order to ensure that it’s product strategies are effective that is why this research has been undertaken.
STATEMENT OF THE PROBLEM
Encrusto pharmaceutical company limited has been one of the oral liquid preparations. The company wants to maintain the leadership position in this area and that is why it has a policy of developing new products to extend its product lines, depth and width. In pursuing this policy, the company developed a new product when is called “CRISTOLYN COUGH EXPECTORANT”. The new product was introduced in Enugu in September 1997 and has continued to be market there till now.
In looking a new product, one would like to know how it has faired since its introduction; into the market and what strategies were used in introducing if in Enugu metropolis, what strategies are being used now to market the same product, have these strategies been effective and have consumers accepted the new product.
OBJECTIVES OF THE STUDY
The objectives of this study include:
- To determine if these strategies are effective.
- To ascertain if the new product is acceptable to the consumers
- To find out how distributors evaluates the new product.
- To recommend what the company would do to further enhance the marketing of this new product.
- Ha the strategies used in introducing crsytoyn cough expectorant in Enugu metropolis been effective?
- Is the quality and tasks of cryptonym cough expectorant acceptable to consumers?
- Are most consumers aware of the new product?
- How really are the distributors to distribute the new product?
1.5 SIGNIFICANCE OF THE STUDY
This study will be of use to Encrusts pharmaceutical company limited because of will establish whether the objective of the company in developing and introducing cristolyn cough expectorant has been realized.
In assessing the strategies used to introduces the new product, the findings of the research will establish whether they have been effective.
The recommendation made by the researcher will enable the company to implement further strategies aimed at changing the situation. Also the finding of the study will equally benefit the consumers by ascertaining whether the new product has been accepted or not. The acceptance of a new product depends solely on its quality and performance and product quality entails. Considering the level of quality control consumers desires the quality of new materials required to produce such product the level of consumers frame of experience and desire and source or availability of competitive or rival product for the consumer.
Where the study establishers that the new product is found wanting in any dimension. This will ensure that the consumers are given the satisfaction they want or looking for in the product.
Another are where the study will services as a good purpose is in the area of distribution. Distribution are more concerned about the success of a product because it will help them determine the extent of margin or profits they will make. If cristolyn expectorant succeeds I the study is to evaluate and make recommendations for effective marketing of this product, the distributors benefit of the products performance in the market enhanced.
SCOPE OF THE STUDY
This study was carried out in Enugu and centered on evaluating the effectiveness of the strategies by Encrusts pharmaceutical company limited in introducing crislotyn cough Expectorant into the market. The study also evaluated the extent of acceptance of this new product by the consumers.
1.7 LIMITATION OF THE STUDY
A lot of constraints have limited the scope of this study, some of the constraints include:
1) FINANCIAL CONSTRANTS: Inadequate financial resources is a limitation to this work because money is required in almost every aspect of this work.
2) DISTANCE: This is another factor, there should be designed time because the research have be in the particular place of research to get respondents to enable the research progress.
3) TIME CONSTRAINTS: limited time is execute this study comprehensively is one of the limitation of this study adequate time for deserting this product should be properly considered for the effective smoothing of this work.
4) INADEQUATE CO-OPERATION OF CONSUMERS:
This is another hardening along to enable appropriate research work in the aspect of questionnaires, if the consumers refuse to comply in corresponding flunky excuses like time there will be problem.
1.8 DEFINITION OF THE TERM
- Organization: An organization is a group of people bound together to provide unity of action for the achievement of predetermined objectives.
- Profit: this is the reward an entrepreneur receives from his investment.
- Services: is any act or performance that one party can offer to another party that is essentially intangible and does not result in the ownership of anything.
- business: it can be seen as an organization that attempts to eavn a profit by providing goods and services that the society needs and wants.
- Company: this is a form of business created by law in which a business identifies and siability are separate from those of its individual owners.
- Marketing: it is defined as human activities direct at satisfying human needs and wants through exchanges process.