THE EFFECT OF PRODUCT LIFE CYCLE ON ORGANIZATION SALES

ABSTRACT

The research was conducted on the basis of an analysis of the marketing effect of the product life cycle in achieving the organizational sales objective of Unilever Nigeria Plc, Aba Abia state. The objectives were stated to ascertain and evaluate the marketing efforts of the product life cycle in the cosmetic and detergent industry. In order to critically examine this. Therefore the researcher set out to ascertain the following objectives. Firstly, to find out whether Unilever Nigeria Plc conducts thorough market research before embarking on developing its product. Secondly, to determine whether Unilever Nigeria Plc follows the formal procedure or sequences of the product development process (Ideas generation business analysis – the concept of product testing product developing test marketing commercialization). Last but not least, to find out if the product life cycle is useful in the achievement of the marketing performance of Unilever Nigeria Plc. In the literature review, the research review some literature in the area of marketing like the concept of marketing, product life cycle and its stages, critiques of product life cycle concept and brief comparative analysis of Plc BCG and adopter categories were made. In research methodology and design, the researcher adopted both descriptive and analytical methods in carrying out his sample survey research. Data were collected through primary and secondary methods and/or sources. A yaro yamen formula was use to get sample size. Also, a stratified random sampling technique in choosing the sample size was used. This was because all the units have equal chances of being considered. In chapter four, data were presented and analyzing. Using a simple table and chi-square in analyzing the data respondents were presented in table and result of data analytics in percentage one after another. Finally, in the last chapter, the researcher made his summary, conclusion, and recommendations which make the end of the project.                   

Table of Contents

Title Page

Certification

Dedication

Acknowledgement

Abstract

Table of Contents

Chapter One: Introduction

1. Background of the Study
2. Aims and Objectives of the Study
3. Statement of Research Problem
4. Significance of the Study
5. Scope of the Study
6. Methodology

Chapter Two: Literature Review

1. Product Definition
2. Classification of Product
3. Product Differentiation
4. General Introduction
5. Introduction State
6. Growth Stage
7. Maturity Stage
8. Decline Stage

References

Chapter Three: Discussion

1. Evaluation of Product Life Cycle
2. Importance of Product Life Cycle
3. Problems of Product Life Cycle

Chapter Four: Conclusion and Recommendations

1. Limitation of Study
2. Findings
3. Conclusion
4. Recommendations

Bibliography 

CHAPTER ONE
1.0 INTRODUCTION
An increasing number of people are questioning whether product life cycle concept has a value to business enterprise and useful role in the attainment of the marketing performance of the detergent industry. It has been opined that the usefulness or other wise of the product life cycle concept has been the subject of an un-abating marketing discourse. Is the product life cycle useful? Has been the questions at issues.
Product life cycle is a marketing phenomenon which seeks to recognized various stages, a product passes in its sales history. It is also a graphic representation of the sequential rise and fall of a product sales and profits. An important concept in the product planning forecasting, controlling and development process is that the product life cycle. No product last forever, products are originated, developed and launched. The concept means that a company’s positioning and differentiation strategy must change as the product, market and competition change over the product life cycle. It should be noted that some product pass through the cycle stage faster than others.
In order to understand this concept, (product life cycle) vividly, and to fully appreciate its effects to be marketing as discussed in the literature review. This study determines the concept as representing the unit sales trend or curve for some products, extending from the time it is first placed in the market until it is faced out. In other words, the concept describes the evaluation of a product overtime, as measure by its sales or percentage saturation, and explain its stages with models as exemplified by Unilever Nigeria Plc. Some companies move through the cycle very rapidly, other never make it through the introductory stage of the growth period but Unilever Nigeria Plc has moved steadily and predictably through each stage to the maturity. Unilever produces a lot of products but “OMO” multi Actives, will be structured for the purpose of this study.

1.1 BACKGROUND OF THE STUDY
Unilever Plc is one of detergent and cosmetic company of the industry with the sole aim of teaching and satisfying the entire public with its qualify products, and it was incorporated as private company in 11th April 1924 under the name lever brother (WA) Plc which was later metamorphosed to West African Soap Company Plc on 3rd April 1973. This name was changed again to Lever Brothers Nigeria Plc on 15th December 1985 and was later changed to Unilever Nigeria Plc in 1992.
The company’s headquarter is situated at Apapa Lagos and it was commissioned in 1942. manufacturing at the factory started with the production of bar soaps, using palm oil, but as time goes on, it was extended to toilet soaps including international brand Lux and Relaxers, Astral and Asepo.
The company’s main business over the year has be diversified into manufacturing of blue band and plant margarine, Omo and Surf, a non soapy detergents, pepsovent and close – up tooth pastes and three top fruit syaush. The well – known sun light and key laundering soap are also manufactured by the company. The company was converted into a public company on 12th September, 1973 and its share capital was listed on the Nigeria stock exchange (NSE).
Unilever Nigeria Plc has seven department: production, marketing/sales department, accounting, purchasing, administrative department and research and development departments. All work synergistically to achieve set objectives. Unilever also has branches both in Nigeria under which Aba branch fall and in other parts of the world like Ghana.

1. AIMS AND OBJECTIVE OF THE STUDY

The product cycle will be evaluated as a theory and its major uses of important and problem considered.

This research intended to identify the uses of the product life cycle, how it affect the product of a company, its short comings and offer suggestion on how well to apply the product life cycle concept sop that its advantages could not number its advantage. That is aimed at exploring marketer to the concept of product and life cycle as well as the stage that are involved such as the introduction stage, the growth stage, maturity stage and the declined stage.

1. STATEMENT OF RESEARCH PROBLEM

The importance of product life cycle can not be over-emphasized in product management, however some marketers as well as marketing manger fails to realize the importance of product life cycle in marketing management. With the aid of product life cycle a marketing management. With the aid of product life cycle a marketing manager is also to recognize district stage in the sales history of a particulars, product. By the act of identifying the stage that a particular product better marketing plans, hence a wise manager has to be able to make a good forecast the life span of its product. It is living to assurance that a product will continue to experience sufficient demand whereas time will come when a new product will be introduced to compete with the existing one.

1. SIGNIFICANCE OF THE STUDY

A lot of product has been introduced into the market by different companies in the part, but the question who is how many of such product succeeds.

Some products die a pie match death some other may not take in enough profit etc. This may be due largely to using other concept wrongly by introducing the product at the wrong time. It is a truism that the simple product can maintain its position in the market definitely, hence the product life cycle is essential.

Marketing manager must study carefully the life cycle of the product for which they are responsible. By means of good fore-casting there must establish the likely growth of the market in which they are operating in order that they may access that likely occurrence of the third and fourth stage in the life of their product.

Introducing a product into a cooperatively new market is quite different from that of a market where ir must compete with other brands which are already established.

A study of the life cycle of these competitive brands is important where as it is not necessary in the new marketer where competition is minimal or non-existence. The introduction of his product has to coincide with the second and most healthy stage of the competitor’s growth and the dares with him a market which profit margins are still attractive.

Therefore this study of the product life cycle is not enough marketing manager need to study will be application of the concept. It also tries to portray the fact that some products need no introductory stage when a product should be lunched into the market and also ensuring that the product linger or for sometime on the growth stage where profit is high.                

1. SCOPE OF THE STUDY

This study is limited to the study of the influence of the product cycle in the management of product in a company’s. The business environment will seldom or never be stable and the ability to adapt to environmental changes is a crucial importance to business firm.

New products are continuously being introduce in the market hence no company will be satisfied with the performance of a single product without introducing new ones. This research is to be with a view of identifying how best to use the knowledge of the product life cycle to achieve maximum benefit.

1. METHODOLOGY

To meet demand of this research, timely and relevant data will be gathered and source for, from both internal and external part of the institution. The data will mainly be source for secondary sores such as textbooks, journals, newspaper, magazines, unpublished lecture notes, website visitation (internal) and contribution that were made on academic ground, companies’ annual report, past projects and useful literature publication.