NEW PRODUCT DEVELOPMENT: A STRATEGY FOR BUSINESS SURVIVAL A STUDY OF NESTLE NIGERIA PLC, KAJOLA SAGAMU, OGUN

ABSTRACT Product development is an important element of the marketing arsenal of any organization. Unfortunately, many firms do not seem to realize it. Consequently, they develop strong arteries to innovation which rubs their performance really rough. This study, therefore examined new product development and business organization survival in the Nigeria food industry. Data were gathered from 150 staff drawn from marketing, Research &Development and production departments in Nestle Nigeria plc. Through the use of questionnaire. The data were analyzed using appropriate statistical tool (Simple percentage, chi-square, regression and Pearson coefficient correlation). The data revealed among other things that product development facets of product quality and product lines, product mix were positively and significantly correlated with the organization survival facets of profitability, sales volume and customer loyalty. The study concludes that a positive and significant relationship exists between product quality, product line, product mix and profitability, sales volume and customer loyalty. To this end, it was recommended among other things that high product quality should be maintained and that the food industry should continuously develop new market segments and develop appropriate product accordingly.