ABSTRACT

The study focused on analysis of product innovation and determinants of firm’s growth among selected soft drinks distributors in Umuahia north and lkwuano local government area Abia State. About 180 respondents made up of distributors and operators in Umuahia north and lkwuano local govern mciii area, Abia Stale were randomly selected and used as sample for the study. The sample size was determined using Taro Yamani's sample size determination. With regard to the objectives and anaJytical tools, the socio-economic characteristics of the respondents in the area and problems facing product innovation in some bottling were described using descriptive statistical tools such as percentages, frequency, and tables. Findings indicate that Age, Education, Gender, Household size, contributed to the firms growth. The result also revealed that inadequate finance, competition, research and development problem and change i taste preference are the problems facing product innovation. Finally, the determinants of soft drink firm's growth were analyzed using multiple regression models. The result revealed that the significant determinant of firms growth on (7UP) were price, income ,tax, savings, membership organization, household size, lagged firm growth and product diversification whereas experience, and education were insignificant .Furthermore, the significant determinants of soil drink firms growth Nigerian Bottling Companies (NBC) were savings, experience, product diversification and lagged firm growth. Whereas price, operators income, lax, education; house size and membership organization were insignificant 11 was concluded from the study that determinants such as education, experience saving, income, etc. are in one way or the other contributed to the efficiency of  the distributors, which consequently helps in firms growth. So the study recommended that firms innovating products should employ more young and able bodied distributors. Continuous product innovation has been identified to boost sales and profitability, therefore firms experiencing dwindling sale volume and profitability should always strive to innovate new products. To guard against new product failure in the market, firms should know the exact time to launch such new product know the right attractive price to place on the product and invest more on promotion. Finally continuous Marketing research should always be put in place to monitor changes in consumers taste and preferences, following such trends will help firm to the appropriate time to introduce new products.