PROJECT FILE ON THE IMPACT OF NEW PRODUCT DEVELOMENT ON THE GROWTH

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED TO:Mr. Sunil Thakur Netmax Technology

SUBMITTED BY:Jaswant Singh

CERTIFICATE

It is certified that the project work entitled THE IMPACT OF NEW PRODUCT DEVELOMENT ON THE GROWTH done by Mr.Jaswant to be submitted to Netmax Technology ,Bathinda for the Partial fulfillment of requirement for award of the Summer training Degree of Master of Business Administration has been carried out under my guidance and supervision. This project is not submitted to any other University for receiving any diploma or degree.

Mr.Sunil Thakur

ACKNOWLEDGEMENT

With deep sense of gratitude, I would like to take this opportunity to our Mr.Sunil Thakur who gave his best support and co-ordination to complete this project report. His involvement and support always gives us the confidence to do our work. Without his guidance this project report would not have seen the light of the day. I would like to thank the people who took their time to help me to complete this project. I would like to thank my friends who were of immense help to me Last but not the least, I would like to thank my parents who were a source of support throughout the making of the project. Thanks

Jaswant Singh

DECLAIRATION
I, Jaswant Singh hereby declare that the project report entitled, THE
IMPACT OF NEW PRODUCT DEVELOMENT ON THE GROWTH

" submitted for the partial fulfillment of the Summer Training for the degree of Master of Business Administration is the result of a study originally carried out by me independently under the guidance and supervision of Mr. SunilThakur. This work has not been submitted earlier, in full or part for any Diploma or Degree in this or any other university.

Place Bathinda

Signature of

Investigator Dated.

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 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Introduction1 Background of Study1 Statement of the Problem5 Purpose and Objective of the Study..6 Research Questions7 Significance of the Study7 Scope and Limitation of the Study.8 Research Hypothesis..9

1.8

Definition of Terms..10

CHAPTER TWO: LITERATURE REVIEW 2.0 2.1 2.2 2.3 2.4 2.5 2.6 Literature review13 New product development...13 Type of new product development.....14 Product planning and product development..15 Why new products are developed...17 Why new products fail or succeed...17 Organizational arrangement of handling new product development..19 2.7 2.8 2.9 From planning to commercialization.....22 The product development process26 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 3.1 3.2 3.3 3.4 3.5 Research Methodology..40 Sampling Unit / Frame40 Sampling Method41 Determination of Sample Size..41 Method of Date Collection42 Method of Questionnaire Development and Collection...42

CHAPER FOUR: DATA PRESENTATION & ANALYSIS 4.0 4.1 4.2 4.3 4.4 Data Presentation and Analysis..43 Respondents Characteristics and Classifications.43 Data Analysis and Interpretation..43 Test of Hypothesis..52 Discussions of Findings.60

CHAPTER FIVE: SUMMARY, CONCLUSION & RECOMMENDATION 5.1 5.2 5.3 Summary..62 Conclusion63 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 2006-2007. 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) Patni Satyam NIIT

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 ITES-BPO and Development)

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 (2006) 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 (2006) 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 Indiaaccounting for 40% of the country's GDP and 30% of export earnings as of 2006, while employing only 25% of its workforceis summarized by Sharma (2006): 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 India-EU Software Education and Development Center is due at Bangalore.

India's IT industry (USD bn)

Particulars FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

IT Services - Exports - Domestic ITES-BPO - Exports - Domestic

10.4 7.3 3.1 3.4 3.1 0.3

13.5 10.0 3.5 5.2 4.6 0.6

17.8 13.13 4.5 7.2 6.3 0.9

23.5 18.0 5.5 9.5 8.4 1.1

31.0 23.1 7.9 12.5 10.9 1.6

Engineering services, R&D and Software 2.9 products - Exports - Domestic Hardware - Exports - Domestic Total IT industry (including hardware) Health issues among Young labor force 2.5 0.4 5.0 0.5 4.4 21.6

3.9

5.3

6.5

8.6

3.1 0.7 5.9 0.5 5.1 28.4

4.0 1.3 7.0 0.6 6.5 37.4

4.9 1.6 8.5 0.5 8.0 48.0

6.4 2.4 12.0 0.5 11.5 64.

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 1

City Bangalore

Description Popularly known as the capital of the Silicon Valley of India is currently leading in Information Technology Industries in India. It is the second largest exporter of Software. It has the largest operations for Indias top software company TCS 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, a major industrial point in India.

Chennai

Hyderabad

Pune 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.

Coimbatore

NCR

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

Mumbai

tremendous growth in IT and BPO industry, it recorded 63% growth in 2008.[21] TCS, Patni, LnT Infotech, I-Flex WNS and other companies are headquartered here. 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. 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. 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.

Kolkata

Trivandrum

10

Jaipur

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 2010 showing their

revenue and growth rate. Company Hewlett-Packard India HCL Infosystems Ltd Ingram Micro India Redington IBM India Dell India Wipro Intel India Microsoft India SAP India: Acer India Oracle India APC-MGE Emerson Network Power India Lenovo India Cisco Systems India Tulip Telecom LG India Samsung India Revenue Rs 14,992 crore Rs 11,836 crore Rs 8,824 crore Rs 7,024 crore Rs 5,888 crore Rs 5,275 crore Rs 5,268 crore 4,690 crore Rs 3,575 crore Rs 3,204 crore Rs 2,749 crore Rs 2,700 crore Rs 2,620 crore Rs 2,500 crore Rs 2,396 crore Rs 2,324 crore Rs 1,965 crore Rs 1,798 crore Rs 1,664 crore Growth Rate 16 percent -4 percent -6 percent 7 percent 2 percent 24 percent 9 percent Not available 14 percent 46 percent 38 percent 11 percent -1 percent NA -3 percent 0 percent 22 percent 39 percent 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 9001:2008 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, and REBOTICS. Net max Web solutions, is an ISO 9001:2008 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 9001:2008 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 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 2008 ) 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 2005, 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 up in 2001 by young Indian entrepreneurs. It has pioneered the concept of high quality IT education in North India and has trained over 10,000 plus networking, embedded systems & software professionals in the country.

Area of Focus:NetMax Technologies focus areas include network support, network implementation, embedded system research & development and robotics. NetMax Technologies addresses the needs of well-defined industry segments such as BPOs, IT & ITES, and government Agencies like CSIO & TBRL etc. It has alliances with global IT majors such as Microsoft, CISCO and Red Hat.Lately; it has started programs like Android Apps. Development in association with Google along with Cloud computing

believed to be the only organization in India running them on professional level.

Support Area (Network Solutions) LINUX / UNIX networks SUN networks CISCO devices (Routers, Switches, Firewalls, Cache Engine, RAS etc) Bandwidth Manager Software and hardware Radio Links Security Solutions

NetMax Provide six weeks, six months and one year industrial training a in various fields. Each training is designed according to market needs and student requirements. You can choose from following available options for Industrial Training: Networking Software Development Embedded System PLC

6 Week Industrial Training is Available in:

Software Development: JAVA, C Sharp, ASP, .Net, Android,

PHP
Network Administration: Cisco, CCNA, Linux, Microsoft

MCITP
Electronics & Embedded: 8051, PIC, AVR, ARM, Or CAD

6 Month Industrial Training is Available in:

EMBEDDED: PLC, AVR, ARM CISCO: CCNP, CCVP,CCIP .NET: C Sharp, ASP .NET PHP: Advance PHP & CMS JAVA: Advance Java, Andriod

Courses available in Netmax

Networking: -

Netmax provide the course of CCNA in networking.Natworking is the practice of linking two or more computing devices together for the purpose of sharing data. Networks are built with a mix of computer hardware and computer software.

CCNA:-CCNA (Cisco Certified Network Associate) is the Cisco Academy Computer Networking Course with a curriculum designed to prepare computer networking students to pass the CCNA exam, or the ICND 1 and 2

certification exams. Here is an overview of CCNA and where it fits among the Cisco career certifications.

Software: - Software is a general term for the various kinds of programs

used to operate computers and related devices.Netmax provide two courses in software such as PHP and JAVA (core and advance).

PHP Training
PHP Training and Web Development

PHP stands for PHP: Hypertext Preprocessor, with that PHP standing for Personal Homepage. PHP is an open-source language, used primarily for dynamic web content and server-side applications. PHP: Hypertext Preprocessor is a widely used, general-purpose scripting language that was originally designed for web development to produce dynamic web pages. For this purpose, PHP code is embedded into the HTML source document and interpreted by a web server with a PHP processor module, which generates the web page document. As a generalpurpose programming language, PHP code is processed by an interpreter application in command-line mode performing desired operating system operations and producing program output on its standard output channel. It may also function as a graphical application. PHP is available as a processor for most modern web servers and as standalone interpreter on most operating systems and computing platforms.

Java Training

JAVA is a programming language originally developed by James Gosling at Sun Microsystems and released in 1995. Java is a high-level, third generation programming language, like C, FORTRAN, Smalltalk, Perl, and many others. You can use Java to write computer applications that crunch numbers, process words, play games, store data or do any of the thousands of other things computer software can do.
To date, the Java platform has attracted more than 6.5 million software developers. Its used in every major industry segment and has a presence in a wide range of devices, computers and networks.

Java technologys versatility, efficiency, platform portability, and security make it the ideal technology for network computing. From laptops to datacenters, game consoles to scientific supercomputers, cell phones to the Internet, Java is everywhere!

Microsoft:

- Microsoft is the world's leading producer of computer

software. Microsoft was incorporated in 1981.Netmax provide the course of MCITP, WINDOW 7 & EMAM 70-680.

The MCSE courses focus on the skills needed to manage Microsoft Windows 2003 based networks and back office systems running on Windows XP and 2000 thereby preparing students for the certification process. The MCSE course enables the students to design and implement the infrastructure for computerized business solutions. These courses are primarily aimed at system engineers, technical support engineers, system and network analysts, and technical consultants who are involved in the installation, configuration and troubleshooting of network systems in medium to large organizations. Train for your MCSA or MCSE on Windows Server 2003 and get closer to Windows Server 2008 The strength of Windows Server 2003 in the market today indicates that demand for related IT expertise will continue for years to come. The best way to demonstrate you have those skills? And to inspire confidence in a hiring manager, your team, and yourself on Windows Server 2003? Is with the Microsoft Certified Systems Administrator (MCSA) and Microsoft Certified Systems Engineer (MCSE) credentials. These credentials will not retire.

Embedded System

An embedded system can be defined as a control system or computer system designed to perform a specific task. Common examples of embedded systems include MP3 players, navigation systems on aircraft and intruder alarm systems. An embedded system can also be defined as a single purpose computer. Netmax provide the course in embedded system such as 8051, PIC, ARV, ARM, and REBOTICS.

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. Our expertise covers several microcontroller architectures and their development tool chains. In addition we focus on topics such as time-tomarket, quality improvement, complete PCB Designing and embedded applications using Atmel mcs51, Atmel AVR, Microchip PIC controller, NXP ARM. Our training and consulting services include prototyping and customized software and hardware developments. Training, consulting or prototyping services include applications on technologies from Atmel, microchip, NXP, Maxim etc 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 2005, Netmax Technologies introduced corporate training programs which as an initiative were highly appreciated by the industry and corporate alike. Netmax Technologies provides industrial training to BTech/MCA/BCA/Diploma students in fields like Embedded systems, Robotics ,PLC and SCADA Automation Technologies, Advance Networking Technologies(CISCO) ,JAVA development, .NET development , PHP Programming and Web development , Redhat (RHCE) and Ubuntu Administration , Microsoft System Administration( MCSE 2003 , MCITP 2008 ).

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 2006. Their non-alcoholic drinks are: Maltina Bottle drink produced in 1976, Amstel malta produced in 1994, Maltina sip it produced in 2005, Fayrouz produce in 2006. 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.

1.0 1.1

LITERATURE REVIEW 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.

1.2

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.

1.3

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. (2004 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.

1.4

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 (2005) 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 (2005) 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 (2004 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 (2004 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 (2005) 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 (2004) ;

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 (2004 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 (2005) 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 No of Respondents 10 20 Percentage 17 33

5 years Total

30 60

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 No. of Respondents Percentage

Yes No Total

48 12 60

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 Yes No Total No of Respondents 35 25 60 Percentage 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 10% 20 30% Total No of Respondents 5 25 30 60 Percentage 8.33% 41.67% 50% 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 Yes No Total No of Respondents 45 15 60 Percentage 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 No of respondent Percentage

Yes No Total

46 14 60

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 findings the of this study, the to researcher remedy the

recommended problems. 1. The company

following

suggestion

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.