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APPRAISAL OF THE ROLE OF PURCHASING FUNCTION IN NEW PRODUCT DEVELOPMENT

ABSTRACT

Based upon the finding of my study, an appraisal of the role of purchasing function in new product development as in Nigeria bottling company, owerri imo state, purchasing function is solely very essential to the organizational cycle as a whole. This can be attributed mainly to their ability to perform greatly with the 4 p’s of purchasing. Thus, management recognizing purchasing function in the aspect holds them in high esteem. This study was therefore very significant, as it would highlight the much needed information on new product development and the steps involved. It also emphasis in the process or stages of new product development. This discovered to the various challenges posed by new product to management especially as it concerns Nigeria bottling company. The researcher was able to state through the funds the various in which firms normally wants to develop new products, and this as well trail to product modification and sources. Though, the research and management were able to deliberate on why some company’s lack product planning agenda. Owning to the nature of this researcher study, I adopted a descriptive research (survey) designed and use personal interviews, questionnaires, reviews of existing documents and text books to gather the data that was needed for my study of this project. The study indicate that measuring instrument used were valid and reliable.
The population was analyzed using mathematical percentage and the hypothesis was tested using a statistical tool, the chi-square (x2) test, which is a non-parametric, observed set of data, filled and expected test.

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The underlying purpose every industry is to fill a need in the market. Some needs are fundamental to human survival, such as food, clothing and shelter e.t.c. other needs are expression of man’s desire for self improvement or culture such as books, art and music. Company, therefore carryout on a constant search for new products which fill actual or potential needs of the market and which give them a competitive edge over other companies. They depend on engineering or companies, they also depend on engineering or technical specialist to create those new product. Kotler put it clearly that a successful product come into existence through proper planning, implementation and control of programme designed to create, build and sustain mutually beneficial exchange and relationship with target market.

In discussing, the contribution of design especially with reference to new product development, it may be advisable to attempt to distinguish between its various divisions that is research which means discovering of novel techniques, idea or systems. It is apparent asserts lip that in many companies insufficient attention in given to timing of the introduction of new product or improve products into market which results in disastrous effect on sales when launching of a product is delayed through non-availability and also higher product which is done by the buyer.

1.2 STATEMENT OF THE PROBLEM

Some problems has been facing new product development in every organization and this call for a research of this nature which will aimed at finding the problems militating against new product development.Thus, these problems are as followed: a. Inability to identify customer need: these companies usually face the problem of identification of customers need and when this problem could not be found, new product development becomes almost impossible. Base on this a proper research should be carried out in order to identify customers need. b. Lack of financial resources is also a problem of new product development: when the need have been identified and ideas generated another step is to develop it into a product, and this could be achieved only through finance.

c. Inadequate of manufacturing resources and skillful personnel: When the company lack both the manufacturing equipments and also trained staff, the new product may not be realize thereby create room for competitors to likely discover the idea and develop it. d. Management is usually faced with the problem of organizing and controlling the product development process and this may lead to uncertainty of new product development result since decision making is becoming a problem on how to use the available skill, production manager position and other duties and decision the likelihood of failure will set in. meaning, there are no more than 50-50 chance of success and failure for new product development. e. The problem of right quality, right quantity or availability of import materials.

1.3 OBJECTIVE OF THE STUDY.

This research is aimed at highlighting and assessing the value of the role of purchasing function in new product development.

Again the researcher hope to give a valid importance of an effective product development and likely show he set back when not fully or well developed.

Problems which management is likely to encounter one will also be brought to light.

Also this research will look at how buyers help or contribute to new product development in Nigerian Bottling Company Plc and thus reconcile it with what is obtained in theory.

Finally, there will be recommendation base on the research findings for better market performance and proper implementation and improvement.

1.4 SIGNIFICANCE OF THE STUDY

The project work provides useful information that can help the industry and organization to expand in the long way product development. This work well equally go a long way in expanding the research more on the area of purchasing function in new product development and make an important impact for future studies on the area of new product development and the contribution. In Nigeria bottling company Plc purchasing function towards new product development is one of the major functions of the organization because what is going to be produces depend on the hand of purchasing function/buyer, whether to produce wrong quality or right quality and also to see that the order is deliver when needed. Therefore it is relevant to undertake such study since they constitute the main objectives, which is the production of quality goods.

The survival of the business rest on efficiency of employment product development. There are instances where due to poor performance of product in the market, they are subsequently withdrawn. An example in the Coka-cola new bottle label manufactured by Nigerian bottling company Plc. Customers who are served the new Coka-cola bottle with the new label companies its not the real or same as the old Coka-cola. Lack of effective market effort like advertisement and sales promotion, also poor timing of introduction has lead to new product failure which maybe caused by poor performance from purchasing function. The research work in this perspective is useful as it is expected to correct these problems and suggest better ways to improve buyer’s role in new product development.

1.5 RESEARCH QUESTIONS

For a full investigation, the researcher had attempted to answer the following questions.

1. Do buyer/purchasing function have roles to play in new product development?

2. Are workers satisfied with the company’s product development programme?

3. Does the new product development have potential to satisfied growth or expansion?

4. Is the new product going to outshine the existing ones and its rivals in the market?

5. Does the new product development meet organizational quality and standardization specification?

1.6 STATEMENT OF HYPOTHESIS

HYPOTHESIS 1

Ho: Buyers do not play important roles in new product development

Hi: buyers play important roles in new product development.

HYPOTHESIS 11

Ho: Does new product development have potentials to satisfied growth.

Hi: New product development has potentials to satisfied growth.

1.7 SOCPE/ DELIMITATION OF THE STUDY

This research work is directed to the study of assessing the value/quality to the purchasing function in new product development. Emphasis will be on the key works of planning and final development. All that is entailed in planning new product steps and process that are to determine control and quality assurance on new product through selecting the right supplier and good quality remain competitive in the market. The institute of study is Nigerian bottling company Plc, since the research work is limited to Nigerian bottling company Plc only. It is designed to asses how they actually carry out product development and the roles of purchasing function in new product development. Based on this assessment, conclusion will be drawn constraint which limited this work to only Nigerian bottling company Plc includes financial and time constraint.

1.8 LIMITATION OF THE STUDY

The researcher was confronted with various obstacles in the course of carrying out his investigation and collection, one of the obstacles was the difficulties in getting information from the employee as most of them were reluctant to reveal such information. Another major constraints encountered was time on the part of the researcher. There were lecture stresses coupled with the researcher work as well as other secular activities, this made the work to be tedious. The greatest of all the barriers was finance, as a result of the hyper-inflation; most of the materials used have their prices sky rocked.
Moreover, location and risk is another problems, here it is not only lost but considering the distance location of Nigerian bottling company Plc Owerri.

1.9 DEFINITION OF TERMS

Purchasing: Are those who buy goods and services on behalf of neither industrial, organization nor institution.

Role: The risk or duty and person or something plays in an undertaking.

Products: Is a set of tangible attributes including packaging, colour, price, manufactures prestige, retailer prestige and retailers services which the buyer may accept as offering want satisfaction.

New product development: It has to do with the issue of product innovation, modification and delectations with the context of an existing product portfolio.

Quality: Refers to the totality of feature and or characteristics of the product or services that bears upon its ability to satisfy a given needs.

Research: Discovering of novel techniques, ideas or systems.

New Product: A minor modification to the existing production features, in services or ideas that are perceived by some potential customers as new.

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