This study analyzed empirically the Impact of Product Innovation on Sales Volumes of Consumer Goods using Philips Consumer product, a division of Philips B. V as a case study. Identified hypothesis concerning the relationship between product innovation and the company corporate goal use tested with the use of telephones interviews and questionnaire to stimulate responses from staff of the Unilever Nigeria Plc and the consumer of its products. Analyzing of the responses obtained from the field study showed that lack of product innovation could affect the organization’s profit and consumer satisfaction because of its great impact on consumer’s buying decision, monitoring and responding accordingly to changes in consumer’s taste will ensure success in product innovation. Evidently adoption of product innovation can lead to increase in sales volume of a firm’s product. The finding of this research work will be useful to the firm used to the firm used as case study in regards to better development of its innovation fund with feedback from market trends and consumer dynamic needs. Although, this research work used a single company for analysis, however the result of the findings can be adequately applied to other firms especially firms within the same industry.
Unilever companies have begin to recognize that a blend of innovation and marketing in their overall. Strategy is vitally important to the achievement of the corporate goal of the firm. The corporate goal of a company could be multivarious but the most common one that cost across many firms in a competitive market is SURVIVAL, which is a achieved partly through profits. To achieve this goal, the blend of product innovation and marketing concept philosophy must be harmonized with the company’s global strategy.
Product innovation on the other hand involves the introduction of a new good or service that is newer substantially improved. This might include improvement in functional characteristics, technical abilities, ease of use, or any other dimension.
1.2 PURPOSE OF STUDY
The object of the study is to examine critically the impact of product innovation as a tool to increase sales volume of consumer’s goods. Therefore, this study will examine the following.
- Investigate how lack of innovation will likely affect Philips consumer electronics profit and consumer satisfaction.
- Determine how the activities of competitors bring about product innovation.
- Evaluate the extent to which product innovations have impact on consumer’s buying decision.
- To identify likely impact of consumer’s taste in bringing about product innovation.
1.3 SCOPE OF STUDY
The scope of this research is strictly within the framework of the started objectives. It is an effort to study the impact which product innovation has on the sales volumes of consumer. The respondents are therefore the company personnel and it must also be emphasized that this is not