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STRATEGIES FOR INTRODUCING A NEW PRODUCT IN THE MARKET

(A CASE STUDY OF FANTA LEMON OF COCA-COLA COMPANY IN ENUGU METROPOLIS)

 

ABSTRACT

 

          This project addressed itself with how to introduce a new product in the market.   Main objective was to determine the strategies used to introduce Fanta Lemon in Enugu Metropolis were effective or not.   The research also looked at how the new product is fairing in the market.

          Both primary and secondary data were collected to solve the research problem.   The population of study comprised of the personnel of Nigerian Bottling Company Plc the distributors and consumers of Fanta Lemon.

          The research instruments used for data collection were questionnaires and oral interview.   Tables, frequencies and percentages were used in presenting and analyzing the data collected.   The chi-square statistic was used to test the various hypotheses since this was a test of goodness-of-fit.

          From data analysis, the researcher comes up with the following findings:

  1. Fanta Lemon was introduced in the market, trough nationwide television advertising the use of handbills and posters, the product was market tested for seven months before this introduction or launching.
  2. About 93.6 percent of consumers have tired or consumed the product.
  3. About 92.9 percent of those who have consumed the product agreed that the quality and taste are good.
  4. About 87.8 percent of the company personnel agreed that the strategies used to introduce the product in the market have been effective.
  5. Distributors agreed that the new product has been well received by consumers and it is selling or moving well in the market.
  6. The company personnel were positive that the Fanta Lemon project has been successful.
  7. The product, though it is no more being advertised in the radio or television, contributes about 12 percent to the total sales of the company. 

Based on the findings the researcher recommends the following the company should.

  1. Maintain or even enhance the high quality of Fanta Lemon.
  2. Conduct periodic research studies to assess how the product is performing in the market.
  3. Set up consumers’ panels to give feedback information on the products performance.
  4. Maintain good supplies of the product with distribution too satisfy consumers’ demand.
  5. Still advertise the product on television and radio to further enhance sales.

The conclusion of the study is that the Fanta Lemon project by the Nigerian bottling company has been successful and in order to keep up its effective marketing of the product, the company should use maintenance-marketing strategies.

 

CHAPTER ONE

INTRODUCTION

 

          Developing new products is very important for profitability survival and growth of a company.   To develop and market new product did not fail in the market.

          There are two important stages in development of any product, the actual development of product and commercialization or introduction of the new product in the market.

          Many products have failed to make the expected impact on the consumers because the company did not use the right strategies such as pricing, promotion and high product quality.   A company such as Nigeria Bottling Company must avoid making mistakes that may spell danger for its newly developed products.

          The Nigeria Bottling Company being the market leader in the soft drinks has been pursing vigorously its policy of developing and adding new products to its product line.   In 1995, the company introduced Fanta Chapman in Enugu metropolis.   This product did not make the expected impact and it was withdrawn from the market.   The company, though, did not give-up, and in 1996 the company came up with Fanta Lemon.   This new product has been in the market for more than (12 month) i.e. I year.   In evaluating the performance of the new product one would like to know the extent of its acceptance by the consumers.   What strategies used by the company to introduce new product in the market and how effective have these strategies been.   The Nigeria Bottling Company would like to equip itself with these data in order to ensure that its product strategies are effective that is why this research has been undertaken



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