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The Impact of Product Planning and Development to Management Efficiency: a Case Study of Seven up Bottling Company, Aba, Abia - State, Nigeria COMMERCE ECONOMICS AND BUSINESS MANAGEMENT Journal homepage: www.jakraya.com/journal/cebm ORIGINAL ARTICLE The Impact of Product Planning and Development to Management Efficiency: A Case Study of Seven Up Bottling Company, Aba, Abia - State, Nigeria Iwunze FC1 1Department of Marketing, Imo State Polytechnic Umuagwo, Nigeria. Abstract This study concentrated on the impact of product planning and development to management efficiency. The main objective is to determine *Corresponding Author: how product planning and development can prevent product failure in the Iwunze FC market place. The study adopted the quasi - experimental design which made use of questionnaire and interview to gather information. Customers’ Email: [email protected] needs and wants were determined when the organization applied on product planning which leads to the success. However, findings revealed that product planning and development created distinctive advantages in both Received: 03/06/2018 product and customer performance. The study recommends that planning Accepted: 01/07/2018 should always be made before development to ensure that product developed is what the customers need and required. Keywords: Product planning, Development, Management Efficiency, Seven Up Bottling Company, Organization. 1. Introduction develop new products usually have limited study in the The life cycle of a product and the life cycle of organisation, hence, there is need for product planning the respective production equipment intersect in the and development. Azu (2014) referred product production phase of the product, which at the same planning and development as characterized by risk and time represents the use phase of the production uncertainties. The dangers may be in wasting financial equipment (Steffens, 2002). In this phase, both spheres and human resources without achieving the targeted have to fit together. In modern series production, success in management of the products and services. products and production equipment are therefore often The uncertainties will arise as whether the products developed simultaneously. will service or die at the point of introduction. These The flow of goods in a supply chain does not changes and uncertainties leads to product failures end with the consumers or industrial users (Atasu et al., especially when the products are not properly planned 2008). The constant changes that have taken place in and developed carefully. the economy have led companies to seek improvements Product development, also called new product in their internal processes, once increasing the management, is a series of steps that includes the efficiency of production processes becomes a key point conceptualization, design, development and marketing for the survival of companies. In light of this, it is of newly created or newly rebranded goods or services necessary to plan the actions which will be taken in (Anderson and Zenithal, 1984). The objective of triggering the processes, in order to conquer and/or product development is to cultivate, maintain and maintain the company´s influence in the market. increase a company's market share by satisfying a In regards to these factors, Corrêa and Corrêa consumer demand. Not every product will appeal to (2010) stated that the importance of planning is given every customer or client base, so defining the target by the logic that there is a time interval of reaction market for a product is a critical component that must between the moments of decision making, through the take place early in the product development process. application of the measures defined in the decision, to Once the product is designed and put into the market, the effective result. Companies from time to time come the offering should be managed efficiently for the up with new products and introduce them into the buyers to get value from it (Day, 1981). Rey et al. market; old products as well are often modified and (2004) stated that before entering into any market make new ones through the help of its management complete analysis is carried out by the industry for both processes and procedures (Griffin, 1997). Any external and internal factors including the laws and organization that its management fails to plan and regulations, environment, economics, cultural values Commerce Economics and Business Management | Year-2018 | Volume 01 | Issue 01 | Pages 01-05 © 2018 Jakraya Iwunze…The Impact of Product Planning and Development to Management Efficiency: A Case Study of Seven Up Bottling Company, Aba, Abia - State, Nigeria and market needs. From the business perspective, as a between engineering-oriented teams and commercially good business, the product needs to be sold before it oriented teams. For example, product managers often finishes its life (Westkämper, 2000). In terms of translate business objectives set for a product by profitability, expiry may jolt the overall profitability of Marketing or Sales into engineering requirements the business therefore there are few strategies, which (sometimes called a technical specification). are practiced to ensure that the product is sold within Conversely, they may work to explain the capabilities the defined period of maturity (Chan and Mills, 2015). and limitations of the finished product back to Product management is an organizational lifecycle marketing and sales (sometimes called a commercial function within a company dealing with the planning, specification). Product managers may also have one or forecasting, and production, or marketing of a product more direct reports who manage operational tasks or products at all stages of the product life cycle and/or a change manager who can oversee new (Kurkin and Januška, 2010). Similarly, product life initiatives. Manufacturing is separate from the research cycle management (PLM) integrates people, data, function; the product manager has the responsibility to processes and business systems. It provides product bridge the gaps if any exist (Kahn, 2005). information for companies and their extended supply Henceforth, the study focused on the need for chain enterprise. The role may consist of product proper product planning and development to development and product marketing, which are management. Low product planning can be used to different (yet complementary) efforts, with the prevent product failure by ensuring management objective of maximizing sales revenues, market share, efficiency. If efficiency is achieved in the management and profit margins. Product management also involves effort of the organisation, the rate of product failure elimination decisions. Product elimination begins with will be brought to the bearest minimum (Azu, 2014). the identification of elimination candidates, proceeds with the consideration of remedial actions, continues 2. Historical Background of the Case Study with a projection of the impact on the business as a The seven up company was the second largest whole if a candidate product is eventually eliminated, bottler and marketer of soft drinks in Nigeria. The and concludes with the implementation stage, where stages of development are thus: In the production management determines the elimination strategy for an process, the product has to be introduced first time in item (Argouslidis and Baltas, 2007). The product the market and the sales of the product starts to grow manager is often responsible for analyzing market slowly and gradually and the profit received from the conditions and defining features or functions of a product is nominal and non-attained. The market for product and for overseeing the production of the the product is not competitive initially and also the product. The role of product management spans many company spends initially on the advertisement and uses activities from strategic to tactical and varies based on various other tools for promotion in order to motivate the organizational structure of the company. To and produce awareness among the consumers, maximize the impact and benefits to an organization, therefore generating discerning demands for particular Product management must be an independent function brand. The products start to gain distribution as the separate on its own. product is initially new in the market and in this stage Depending on the company size and history, the quality of the product is not assured and the price of product management has a variety of functions and the product will also be determined as low or high roles. Sometimes there is a product manager, and (Anderson and Zenithal, 1984). sometimes the role of product manager is shared by In the growth stage, the product is present other roles. Frequently there is profit and loss (P and L) already in the market and the consumers of the responsibility as a key metric for evaluating product products are habitual of the product and also there are manager performance. In some companies, the product quick growth in the product sales as more new and new management function is the hub of many other customers are using and trying and are becoming aware activities around the product. In others, it is one of of the product. The customers are becoming satisfied many things that need to happen to bring a product to from the product and they bought it again and again. market and actively monitor and manage it in-market. The ratio of the product repetition for the trial In very large companies, the product manager may procurement raised and also at this level, the have effective control over shipment decisions to competitors have
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