Strategies for Marketing a New Product in a Saturated Market

Strategies for Marketing a New Product in a Saturated Market

CHAPTER ONE

1.1 BACKGROUND OF THE STUDY

Every profit conscious individual both male and female and organization must have at least a product to market, in order to make profit. This is irrespective of the fact that older individuals and organizations may have been involved in the production and the marketer wants to go into. The implication of this is that market for the product concerned will become e competitive one, a saturated market does not give room for the attainment of maximum profit by an organization and individual since the profit is being shared among it and its competitors.

The thankful nature of competing with a new product worsens the problems of new competitors, especially if the new product that he or she is using lacks innovation which will distinguish or differentiate his or her product from that of existing products to be easier.

Despite the taskful position of being a new product, that is using an unknown product to compete with known products, new competitors still come into a saturated market with their new product. They do not survive but also make remarkable achievements. Undoubtedly, an array of strategies must have been put in place to meet such achievement.

1.2 STATEMENT OF THE PROBLEM

New products are essential to the success of any company. Companies develop new products to replace those that have become outdated in the eyes of consumers. As a result of trying to satisfy the changing needs of consumers, companies that develop new products also have to be developed in an attempt to contain competition without resulting in price competition, with new products developed, the worst problem that marketers or producers face is how to market these products. it is even a bigger problem if the market that is intending to serve is saturated. By saturated market, we mean a market where there is supply beyond the point at which there is demand for a product. It therefore means, more efforts are needed for the marketing of such products. These efforts are so necessary considering how precarious these products could be in a saturated market without such efforts. It could essentially turn out to be a situation where the product fails even before its introduction to the market. In line with this, the central research question for which this project is meant to answer is;

What are the strategies that can be used to market a new product in a saturated market?

1.3 OBJECTIVE OF THE STUDY

1. The purpose of this project is to discover the major problems and strategies for marketing a new product in a Saturated market of Nigerian Breweries Plc with a view of finding a possible solution that will help marketing managers with better marketing strategies.

2. The main aim of the study is to ensure that Nigerian Breweries Plc, achieves optimum utilization in marketing a new product in a saturated market.

1.4 CENTRAL RESEARCH QUESTIONS

1. What are the strategies for marketing a new product to a saturated market?

2. What are the problem encountered in marketing a new product in a saturated market?

3. What is the solution to problems encountered in a saturated market?

1.5 FORMULATION OF HYPOTHESIS: HYPOTHESIS I

Ho: The acceptability of the product in the market is not directly related to the quality of the product.

Hi: The acceptability of the product in the market is directly related to the quality of the product.

HYPOTHESIS I

Ho: Marketing strategy does not influence the success of a new product.

Hi: Marketing strategy influences the success of a new product.

HYPOTHESIS II

Ho: Product acceptability is not a function of its quality.

Hi: Product acceptability is a function of its quality.

1.6 SIGNIFICANCE OF THE STUDY

The first sign of this study is the major comprehensive investigation in the effectiveness of marketing strategy on sales.

This study is equally useful to the researcher since business education is a dynamic one, it is, therefore, possible for any student to know all the needs within the four walls of the classroom in a given field.

1.7 SCOPE OF THE STUDY

This is limited to strategies for marketing a new product in a saturated market, using Nigeria Breweries Plc, as a case study. This is done to identify the problems and strategies for marketing a new product in a saturated market as well as how the cause of this problem can be minimized.

1.8 LIMITATION OF THE STUDY

Efforts were made in this project to carry out thorough research on the strategies for marketing a new product in a saturated market using Nigeria Breweries Plc as a case study.

There was an inadequate textbook on the research that affected the literature review.

Statistical problems were encountered during questionnaire analysis and hypothesis testing which demand extra care to ensure accuracy and exactness in the calculation.

Again, major of the staff were afraid to respond, they feared, they might be detected by management and subsequently be queried, even though they were not required to disclose their identity in the questionnaire other than their various department which was meant for sampling purposes only.

Finally, the research work is restricted to N.B. Plc consequently, I accepted responsibility for the error committed, omission made, an untrue position reflected (if any) as the reasons enumerated above could be accounted for.

1.9 DEFINITION OF TERMS

An a. New: The term is applied to any product that required a change in marketing direction.

b. Product: Is defined as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

c. New Product: Is defined as a good, service, or idea that is perceived by some potential customers as new.

d. Marketing Environment: This involves the effect of marketing ability to build and maintain a successful relationship with target customers.

e. Product Life Cycle: This is the course of a strategy of company growth by getting modified or new product to current market segments.

f. Gap Analysis: This is a tool used to examine thoroughly and objectively as possible your current marketing position and the strategies which you could follow, and improve them in line with the overall company strategies.