Effectiveness Of Product Innovation As An Tool Of Achieving Competitive Advantage In The Purchasing Environment

1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Production innovation is one of the important concepts in purchasing. Some evidence suggest that effective product innovation results to sustainable competitive advantage. Other observed new product development and it launching into the purchasing place as difficult costly took or a dangerous business. The question that needs to be answered re what is innovation why some firms embark on innovation? According to the universal English dictionary, innovation means something introduced, a change new tangled practice while develop is a state or process of developing growth evolution gradual process or expansion. Joseph Selumpete’s classic work on management of the innovation process type of innovative activity. They are invention, innovation and initiation. He defined invention is the act of execting or developing, a new product or process of idea while he saw innovation as the process of creating commercial product from invention. Finally, he defined initiation as adoption of the innovation by similar firms. How ever, initiation usually leads to product of process standardization.
Longman dictionary of English sees innovation a new idea, method or invention. But according to universal English dictionary innovation means something newly practice while development is a state or process of developing growth evolution gradual process or expensive. The technological revolution and greater competition is domestic and international market have increased the competitive importance of innovation. Recent research has show that firms invest more innovation. Infact positive or receptive investor attitude towards introduction of new products increase the price of the firms stock in the market place as well as at the stock exchange market. In view of the economy advantage of product innovation and need to stay a head of the curne, innovation in the face of their competitor in order to maintain sustainable success in future. Therefore, effectiveness of product innovations a subject, which is more recognized to be vital to the future of companies. This fact that may of the high avidity products is needed by customers are not readily available has led consumers into importing some of them. This problem can be solve if companies recognize the importance of innovation develop their innovative ability with government giving economic and instrument enabling environment when and when necessary.
Furthermore, all products have life cycles, which dictates that at some points their usefulness will decline, although there is substantial variation in life lets by types out class of product. A product cannot line forever, and purchasing attribution all work against its immorality. Stanton W.J. likened products to human. They are born, in the light of this therefore the need for the effectiveness of product innovation by business firm should not be over emphasised. Demand is increasingly dynamic and product its life cycles are getting shorter and the time scale of most products is being compressed by accelerated research and mass distribution. If business firms are to survive in the wake of all these social economic, political and cultural changes that are affecting their business adversely. They must have a capability for product innovation. A product that effectively most consumer needs reduces problems associated with decisions on distribution. Pricing advertising and personal selling in most idea, while a poorly developed product on the other hand, creates many problems for other decision areas in the company. Organizations are always competing among themselves for survival market, growth, market share, product lines and mix. All these are necessary strategies for survival which are the over all objectives of any corporate entity. All those it is hoped could be achieved through the effectiveness of product innovation. Innovation both in the theory and practice, is not a new phenomenon. In Nigeria, during the olden dyas people used to drink from animal horns and aims of calabash but the loca craftsmen in Yoruba land stated making better cups and other utensils through brass casting. This practice was known only a small group of professionals and its often protected as trade secret by religious section today the innovation ideas and practice have spread to other parts of the country and economy. Many write-ups of innovation is indeed old for example, Adam smith expanded the relationship between innovation in machine building industries and the scientist Marx assifiend to machine technical innovation “the competition” according to Marx” the Bour geois’s cannot exist production”. Finally, innovation can be highly productive but often a risking road to sukess. In most industries today any company that is not aggressively lert to innovation possibilities is taking a competitive risk which at least to be intelligently aware.

1.2 STATEMENT OF PROBLEMS
Given the rapid changes in taste technology and competition, it becomes risking for a company to relax on its existing product. This is because consumer taste is from time. Every company therefore needs the effectiveness of product. This taste every company there fore needs the effectiveness of product innovation in order to survive in the over changing business environment. There are many difficulties involved in product innovation and purchasing new product line. One of such factors is the uncertainly in pricing and strategy when introducing a new product into market. Another problem in effectiveness of product innovation is highly purchasing cost. At the introductory stage of any product, consumer may not be aware of its existence and where is could be obtained. Expensive promotional tools would be needed to accomplish this objective. The competitive of the market also poses huge challenge to a new product at a certain stage in life been competitive if the product lacks critical attribute that can compare favourable with those of competing products and if management lacks desired competitive ability to push it certainly it would gradually discount. It also found out that many top management lack the know how and generally skill needed for a successful new product development. The fact failure, risk and uncertainly make them special as paids the effectiveness of product innovation.

1.3 OBJECTIVE/PURPOSE OF THE STUDY
Having identified the problems and the objective of study wishes to solve, the general objective of this work are.
1. To know the impact of product innovation on a consumers patronage of a firms products.
2. To know the determine the cause of failure of innovation products.
3. To proffer solutions to the problems of innovation products. The researcher undertook a study of unilever Nigeria plc Aba. This study concentrate on the innovation on already existing product. The researcher made use of data obtained from the staff and managers from purchasing, production, finance and administrative department. Also include in the study were consumer of the firm’s product in Aba.

RESEARCH QUESTION
2. Why do unilever Nigeria plc apply product innovation as an effective strategic in a competitive market
3. What are the uses of product innovation in the company.
4. If the management of unilever should apply product innovation in their company as an effective strategy in a competitive market, could it guide the managers in the business management skills and decision making
5. Can the effective strategy change business management and its economic system?
6. When not applying product innovation system in unilever plc management does it affect the conduct of their management or company?
7. Can their managers maintain good business or management with innovating the product and can they be trusted.
Research Hypothesis The following hypothesis were formulated for this study.
Hi: Product innovation aid to increase of sales receive figure.
H2: Product innovation induces sustained buying response from consumer more than price reduction and promotion.
H3: Product innovation increase firm’s profits
H4: Product innovation is effective strategy to do with competitors.

1.5 SIGNIFICANT OF THE STUDY
Certain reasons are usually advanced in support of why organizations need to develop new product of reasonable intervals as a result in the market. The introductory of new technology to often in the certain industry also helps in the shortening of the useful life of certain product. Due to the fact mentioned, it becomes very important that firms should always be developed new product to replace on existing once before are withdraw from various markets. The need for new product development can also be seen when we realized that 30 to 40 percent of a firm’s current value sales and profits to come from products that were not in the firm’s product portion five years age.
Brisch and Huston (1985) new product development can also be a result to either to utilized excess plant capacity or as a need to have enough products to take can the seasonality in sales.

1.7 LIMITATION OF THE STUDY
Apparently, there is no academic decision that tells the clarity and accuracy the future behaviour of the target publics towards an innovation. Since the public or consumers are the target or the subject for the product innovation, in adequate analysis of the future causes over or under demand estimation that could be for the following reasons:
i. Unforseen hidden product deficiency during production, which only came up during usafe by users
ii. Launching of the product all the wrong time.
iii. If competitors find it very easy to introduce their own brand of production almost along side of the new product.

1.8 DEFINITION OF TERMS
A. PRODUCT: Is any thing of value, capable of satisfying a consumer want or need. The most important meaning of a product is what it means to the consumers.
B. PRODUCT INNOVATION: This is any change or any additional model to already product of a firm or a company.
C. PRODUCT LIFE CYCLE: This is the stage in the sales and profit history of a product after which it has been introduced into market. A product after its introduction can grow nature decline or die like having organization.
D. PRODUCT LINE: Is a group of products that are closely related either because they satisfy a class of need used together sold to the same customer group, marked through the same outlet of fall within the price range.
E. LAUNCHING OF PRODUCT: This is an introduction of a new product into the market.
F. NEW PRODUCT: This is a product that is widely introduced into the market or a modified product.
G. STRATEGY: The word strategies in this project rely mostly on “purchasing strategy”. It means a way of achieving the goals of an organization
H. PURCHASING STRATEGY: This is a way of achieving the purchasing objectives of company or an organization.