A RESEARCH WORK STUDY ABOUT THE IMPACT OF NEW PRODUCT DEVELOPMENT ON THE GROWTH OF A FIRM (A case study of Century

Bottling Company Limited located in Namanve)

CHAPTER ONE 1.0 INTRODUCTION / BACKGROUND OF THE STUDY As human beings have always sought for growth and developmental 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 STUDY BACKGORUND New product development is the Process of developing a new product or service for the market. This type of development is considered the preliminary step in product or service development and involves a number of steps that must be completed before the product can be introduced to the market. New product development may be done to develop an item to compete with a particular product/service or may be done to improve an already established product. New product development is essential to any business that must keep up with market trends and changes. 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 seem not to have recorded much success as a result of depressed economic situation. It is imperative to recognize the fact that the necessity to 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 Uganda. It determines both the levels of economic growth and standard of living of the citizens of Uganda. Most products in the markets today have undergone changes over times. According to Mr Twesigye Nathan`s lecture notes, new products have 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 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 of 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 focus on products for specific markets. A venture team is sometimes used to develop new products. Members of the venture team come from different functional areas within an organization and have authority to execute plans. Product planning requires the coordination of such functional areas such as 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 product`s 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 Century Bottling Company in Namanve district as a case study. This industry produces both Soda mineral water and beverages; sodas produced include: Coca Cola, Stoney, Fanta, Krest, coke light, coke zero sugar and Sprite. Beverages include; Stoney Ginger beer, Schweppers and mineral water include; Dasani water and other refreshments like Minute Maid There has been also an acute problems militating against the standard of new produce development in the Century Bottling Company Limited and other related firms. Consequently, the standard of new product development is limited to the following problems; lack of research or the one made is inadequate, limited capital, government policies, and limited training among personnel. Therefore, proper production management should be maintained to improve or encourage new product development on the growth of Century Bottling Company Limited. 1.2PROBLEM STATEMENT New product development is the Process of developing a new product or service for the market. This type of development is considered the preliminary step in product or service development and involves a number of steps that must be completed before the product can be introduced to the market. 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.

New product development is important in a competitive market like that of Uganda 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. New product development has contributed much to the growth and survival of Century Bottling Company Limited and has also suffered many problems. Therefore, this research work is designed to critically evaluate the problems of a new product development which are as follows;

Lack of research or the inability of management to find out what the consumers need. Failure to find out the government rules and regulations Lack of training program; Failure to train marketing personnel for new product and new markets. Lack of Capital: The Company cannot raise funds needed for new product development when there are new ideas.

1.3 STUDY OBJECTIVES The purpose of the research is to study the impact of new product development on the growth of Century Bottling Company Limited. The research study was designed to enable the researcher and the firm; To determine the importance of research findings on the growth of Century Bottling Company Limited located in Namanve. To determine the relationship between government policies and new product development To examine how inadequate training program affects new product development. Examine the criteria in granting loans for external findings of new product development. To recommend ways Century Bottling Company Limited could improve the new product development.

1.4 RESEARCH QUESTIONS Based on the statement of the problem, the objective and statement of the project, the following research questions were advanced; 1. Does inadequate research affect new product development? 2. What is the relationship between the government policies and new product development? 3. What is the relationship between inadequate training program and new product development? 4. What is the relationship between finance and the expansion of new product development? 5. How am I going to recommend ways Century Bottling Company Limited could improve the new product development?

1.5 SIGNIFICANCE OF THE STUDY This research is counted on the impact of new product development on the growth of Century Bottling Company Limited in Namanve .This research work will go a long way in helping the following; The Researcher: -

It will enable the researcher to ascertain the problems involved in the cost of developing a new product. The Firm: -

This research work will help the Century Bottling Company Limited identify the problems involved in the development of a new product and also suggests the everlasting solution to them. It will also help the firm to increase its sales volume, profit and market share. The Society: -

This project work will gone deep to assist the economy by increasing Job opportunities for the young graduates. It will also help to develop marketing in the economy environment both domestic and international. 1.6 STUDY SCOPE AND LIMITATION OF THE STUDY In the cause of this study, the researcher uses senior, middle, and Junior staff of Coca Cola`s products, from Century Bottling Company Limited Namanve, .However, in trying to make this research work a successful one by enquiring relative information, the researcher encountered the following constraints; Time: The time allowed for this research work is not enough for intensive study of the project Finance: Shortage of fund also limited the researcher to only four (4) local government areas as well as restricting him into printing and administering questions to the selected few among the senior, middle and junior classes of the companys staff. 1.7 RESEARCH HYPOTHESIS Hypothesis is a tentative statement about the universe which may or may not be true. For the purpose of this research work, the following hypothesis is considered; Inadequate research does not affect new product development. Inadequate research affects new product development. There is no relationship between government policies and product development, Time scope

This research exercise is to be carried out for only one (1) month i.e. from July 20th, 2013 to 20th August2013 There is no relationship between government policies and new product development. There is no relationship between new product development and inadequate training. There is a relationship between new product development and inadequate training. Finance procurement is not a problem to new product development Finance procurement is a problem to new product development.

Read more: http://www.businessdictionary.com/definition/new-productdevelopment.html#ixzz2aP894uLZ

CHAPTER THREE 3.0 INTRODUCTION In this chapter, the researcher looks at mainly the research methods, the sampling unit, sampling methods, area and population of study, data analysis, research design, sample size and sample procedures and this will guide him in the whole process of data collection. 3.1 RESEARCH DESIGN The research design will include the pragmatic approach to science which involves using the method which appears best suited to the research problem and not getting caught up in philosophical debates about which is the best approach. Being able to mix different approaches has the advantages of enabling triangulation. Triangulation is a common feature of mixed methods studies. It involves, for example:

The use of a variety of data sources, the use of several different researchers, the use of multiple perspectives to interpret the results, the use of multiple methods to study a research problem 3.2 AREA AND POPULATION OF STUDY
The population of this research work consist the staff of Century Bottling Company in Namanve, using Three (03) selected local government areas in Namanve and Mukono. Five (5) staff members, senior, middle, and junior classes were used from each local government making the entire population Fifteen. (15), among the local governments are:Mukono District Local Government Namanve Town Council And Mukono Town Council Total members in general. 3.3 RESEARCH METHODOLOGY In this chapter, the research has to discuss the methodology used to carry out 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. 05 05 05 15

3.4 SAMPLE SIZE AND SAMPLE PROCEDURES 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, The sample size of this work is based on the staff of Century Bottling Company, under Mukono Disrict Local government area by adopting a formula;

N=N

( )

2 Where N = sample size E = level of significance, and N =population size.

3.5 DATA ANALYSIS The obtained fine information is got from the respondents through the use of questionnaire and interview. Such respondents were the staff of Century Bottling Company in Namanve. SECONDARY DATA: - The research also made use of literature that is related to the topic such as textbooks, journal, magazines and many others. The questionnaires were distributed personally to Namanve Town Council. Sixty (60) questionnaires were structured and administered to the senior, middle and junior classes of staff of Century Bottling Company and the 60questionnaires were retread. http://www.scribd.com/doc/20836208/The-Impact-of-New-Prod