Strategies For Introducing A New Product In The Market

STRATEGIES FOR INTRODUCING A NEW PRODUCT IN THE MARKET (A CASE STUDY OF ENCRISTO PHAMACEUTICALS LIMITED IN UMUAHIA METROPOLIS).

                                        CHAPTER ONE

        INTRODUCTION

BACKGROUND OF THE STUDY

        The objective of any organization is to create customers and satisfy then at a profit that is, producing goods and services that will satisfy the needs, wants and desires of the customers and making a profit which will enable the company to survive.  The purpose of ay business must lie outside the business itself. Infact, the purpose must lie in the society since a business enterprise is an organ of the society.

        It is the customer that determines what a business is, for it is the customer and he alone, who is willing to pay for goods or for services. Converts economic resources into wealth, things into goods. Any business must find out what its market is, who the customers is, where he is, what he considers value, what is his unsatisfied wants, how does he buy ad how can he be reached, it is the duty of the company to provide what the customers need.

        The main function of a company is marketing and innovation.  Marketing is the distributing unique functions of the business.

A business is set apart from all other human organization by the fact that it markets a product or a service.  Any organization that fulfils itself through marketing a product or service is a business.

        The duty of marketing starts a the beginning rather than the end of the business because through its studies and research will establish what the customer wants in a given product, what price he is willing to pay, have authority in product planning, product scheduling and inventory control as well as the sales, distribution and servicing of the product.

        Innovation which is the last function of a business is the provision of better and more economic goods and services.  It is not enough for the business to provide just any economic goods and services; it must provide a better and more economic ones.  Innovation goes right through all phase of business, it may be innovation in design in product, in marketing techniques, in price or in service to the customer.

        Therefore, to develop and market a new product, the correct approach must be used to ensure that the new product does not fail in the market.  There are two importance stage in the development of new product; the actual or commercialization of the new product into the market.

        Many products have failed to make the expected impact on the consumers because the companies did not use the right strategies such as pricing, promotion and high product quality. They forget that buyers are subjected to a wide range to complexities and quick’s; reactions that are hard to predict.

Their attitudes, dispositions, perceptions and motivations must be considered along with income and other demographic considerations.

        It is the belief of these researcher that the satisfaction of the consumers needs, wants, as and desire should be first in the uppermost mind of the producers and not profit maximization. Though, they should achieve sufficient profit to cover the risks of their economic activities so that losses can be curtailed.

        A company like Encrito Pharmaceutical Company Limited should avoid making mistakes that may spell danger for its newly developed product by making use of the correct approach in both marketing, commercialization/introduction of the product into the market.

        The Encristo Pharmaceutical Company Limited belong to one of the indigenous pharmaceutical companies in Nigeria licensed today to produce (OTC) over the counter drugs has been pursuing vigorously its policy  of developing and adding  new and better products to its existing products line. On September 8. 1997, the company introduced a new product known as “CRISTOLYN COUGH EXPECTORANT” into the Umuahia market.  At the early stages this product did not make the expected impact ad the company did not give up.

        The product has been in the market for up to 10 months now.  In evaluations the performance of the new product, one would like to know the extent of its acceptance by the consumers.  What strategies were used by the company in introducing the product