NEW PRODUCT LAUNCH, BRAND LOYALTY AND ORGANIZATIONAL PERFORMANCE IN NIGERIA

Abstract

This study was on new product launch, brand loyalty and organizational performance in Nigeria.  Three objectives were raised which included: To find out the impact of new product launch on organizational performance, To find out the impact of customer loyalty on organizational performance and to find out the impact of marketing strategy on organizational performance. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Cadbury Nigeria’s Plc. Hypothesis was tested using Chi-Square statistical tool (SPSS).

Chapter one

Introduction

1.1Background of the study

Recently the change in buyer’s needs is on the uprise, this is as a result of change in buyer’s income, lifestyles, levels of education, as well as a change in technology. The change in buyer’s needs has brought intense competition in the marketplace. Organizations strive to meet these needs better than competitors so as to strive and remain competitive. This competition compels organizations to develop new products at a faster pace. This is mostly done in response to the changing needs of the marketplace (Didia 2004). What then is new product? Because new product ranges from a new concept of existing product idea, product adaptation or improvement, to a total innovation, Didia (2004) was of the opinion that there is usually a conceptual quagmire in defining new product. For this reason, it can be said that what makes a product new is more of the perception and conception of the market, the organization or both and how they see the product as being able to satisfy the needs and wants of the consumer (Ezirim, 2006). New products can be said to be goods and services that differ significantly in their characteristics or intended uses (OECD, 2005). On the other hand, Onah (2010) describe a product to be new if it is a new cost or price, new conveniences in use, new performance as against the old ones, new availability in a new market, easy credibility or benefit, new methods of use, unfamiliar patterns of use and new construction of composition. For the purpose of this study, new products will be seen from the point of being new to the world, new product lines, and addition to existing product lines

Recent years have shown a growing interest in customer loyalty. The globalization of competition, saturation of markets, and development of information technology have enhanced customer awareness and created a situation where long-term success is no longer achieved through optimized product price and qualities. Instead, companies build their success on a longterm customer relationship. According to former studies, it can cost as much as six times more to win a new customer than it does to keep an existing one. (Rosenberg et al. 1984: 45) Depending on the particular industry, it is possible to increase profit by up to 60% after reducing potential migration by 5%. (Reichheld 1993: 65) Hence we can see that the increase and retention of loyal customers has become a key factor for long-term success of the companies. The main emphasis in marketing has shifted from winning new customers to the retention of existing ones, which is trying to win their loyalty.

Customer loyalty is one major thing that brands need to thrive in the market place. When customers are loyal to a brand, they become ambassadors by mouthing good stories about the brand. It is a basic truth that when customers are happy, they go to a large extent to promote a good image for the brand. Customer loyalty is all about relevance and meaning throughout every customer touch point. It is all about making the brand experience more intimate relationship with the customers. For companies in the industry to achieve this (brand loyalty), it must pay more attention to it product branding. Many products offered to the market have to be branded, and branding is one of the elements in the product planning activities of a firm. It has to do with the efforts a firm makes in choosing, developing, projecting and establishing its own brand(s) of products. Branding has emerged as a top management priority in the last decades due to the growing realization that brands are one of the most valuable intangible assets that firms have. Companies are realizing the power of good branding (brand name) to create instant consumer recognition of the company‘s product. In this highly competitive environment, branding (brand name) may be the sellers‘ last chance to influence buyers and also differentiate it from like products. Many definitions of branding have been offered by different authors and a lot of reasons have also been deduced by different authorities as justifications for the adoption of branding as a marketing strategy. Branding is a fixation of special and unique image or attribute to a particular product which makes it to be exceptional among other products in the eyes and minds of consumers. (Ehikwe 2005). From the above definition of branding, it means that a brand has an added value to the physical product beyond the core product.

Based on this background the researcher wants to investigate the  new product launch, brand loyalty and organizational performance in Nigeria

Statement of the problem

New product  and customer loyalty has contributed much to the growth and survival of any company and has also suffered many problems. Therefore, this research work is designed to critically evaluate the problems of a new product and customer loyalty which are as follows;

1. Lack of research or the inability of the management to find out what the consumers need.
2. Failure to find out the government rules and regulations
3. Lack of training programmed; Failure to train marketing personnel for new product and new markets.

Objective of the study

The objectives of the study are;

1. To find out the impact of new product launch on organizational performance
2. To find out the impact of customer loyalty on organizational performance
3. To find out the impact of marketing strategy on organizational performance

Research hypotheses

Research hypotheses were formulated;

H0: there is no impact of new product launch on organizational performance

H1: there is impact of new product launch on organizational performance

H0: there is no impact of customer loyalty on organizational performance

H2: there is impact of customer loyalty on organizational performance

Significance of the study

The study will be very significant to students and the business organization. The study will give a clear insight on the new product launch, brand loyalty and organizational performance in Nigeria. The result of the study will educate companies the important of new product launch and customer loyalty. The study will also serve as a reference to other researcher that will embark on the related topic

Scope and limitation of the study

The scope of the study covers new product launch, brand loyalty and organizational performance in Nigeria. The study will be limited to Cadbury Nigeria’s Plc.

There is no gain saying that there are no limitations in research work generally. Any shortcoming that arises in this study is as a result of factors which are beyond the researcher’s control.

Therefore, it will be of more importance to highlight certain militating factors that tend to narrow or limit my scope of study. This project research would have been easier if not for these limitating factors:

1. Time factor:time was not on the researchers to consult various sectors of the economy to review employees or given out questionnaire to various institutions on the effect of government revenue policies.
   As we all know, time is never our friend. The time scheduled for the completion of this research thesis was too short. As a result, generating information/data was strenuous as it coincides with final year examination period, which needed attention.
2. Finance:this is another barrier that limited the researcher’s work.
3. Available resources:was unavailable for the research work.

Definition of terms

Customer loyal: Customer loyalty is a measure of a customer’s likeliness to do repeat business with a company or brand. It is the result of customer satisfaction, positive customer experiences, and the overall value of the goods or services a customer receives from a business.

Organizational performance: Organizational performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives). Organizational performance also the success or fulfilment of organization at end of program or projects as it is intended.

New product launch: A new product launch is a process of introducing a new product to the market. This process includes preparing the product, positioning it, and communicating it to potential customers using marketing communications. The first step to prepare for a new product launch is to know your audience and their needs.

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