Product Innovation And Market Performance: A Study OF PZ CUSSON PLC Nigeria

ABSTRACT

This study investigated the effects of product innovation and market performance using PZ Cussons Nigeria Plc as a study. The major objective of the study was to determine the effect(s) the innovation of a product has on market performance. The population of the study was 830 and Taro Yamane formula was used to determine a sample size of 270 respondents, comprising of Distributors, and, PZ Employees, and Households. A well-structured copies of questionnaire was distributed to the respondents to gather primary data for the analysis after which 250 valid questionnaires/usable survey forms were gotten. In the method of analysis, the study employed descriptive analysis, and Simple Bivariate Regression Analysis in varying multiple forms, wherein varying dependent variables were regressed against their corresponding explanatory variables, with the aid of an interactive computer software, the Statistical Package for Social Sciences (SPSS). Product innovation in this study was proxied with product quality, product packaging, product branding and product pricing; while competitive market advantage was proxied in the study with sales volume, profitability, market share, and customers’ attraction, satisfaction and retention. The findings of the study, in a bid to answer the research questions, indicated that three of the explanatory variables product quality (PQLTY) Product Packaging (PPCKG) Product Branding (PBRND) exerted positive effects on their corresponding competitive market variables Sales volume (SAVOL) Profitability (PROFT) and Market Share (MKTSH)  whereas one of the explanatory variables product pricing (PPRCN) was found to have a negative effect on its competitive market variable customers  attraction Satisfaction and Retention (CASRT). On individual hypothesis basis, two of the explanatory variables (PQLTY and PBRND) were found not to exert any significant effect on their corresponding dependent variables (SAVOL and MKTSH) whereas the other two variables (PPCKG and PPRCN) were found to exert significant effect (positive and negative) on their corresponding dependent variables (PROFT and CASRT) at 0.05 significance level. The study concluded that the innovation of a product is a recipe for market performance, as well as the sustainability of the company. The study recommended among others Companies should strive to identify and understand social, environmental, organizational and other factors that influence company’s operational effectiveness and accommodate same in their innovative processes.