Product Innovation: A Tool for Competitive Advantage in Nigeria.

Abstract:

The study examines the impact of product innovation on the performance of manufacturing companies with a particular focus on selected companies in Ibadan, Oyo State. The main objective of this study is to investigate the impact of product innovation on competitive advantage while the specific targets are to: investigate the impact of product improvements on customer satisfaction, determine the impact of product design on competitive advantage and evaluate the impact of product color on competitive advantage. The survey population consisted of 500 marketing managers from these selected companies. Simple random sampling was used to select 30 marketing managers from each company, resulting in a total of 256 responses. The sample size for the study was 300. Data was collected from both primary and secondary sources and a questionnaire was administered to 30 employees of the reference organization. Analysis of the collected data revealed several findings: Decreasing sales and profits necessitated product innovation due to the market influence of competitors. There was a need to increase the company's sales and maximize profits. Customer satisfaction has increased. There is a need to maximize equity capital through increased sales and profits. The study concludes that product innovation not only satisfies the changing tastes of customers but also helps in increasing sales and profits. Recommendations include that companies should innovate their products regularly to reduce the costs associated with value analysis strategies. In addition, companies should thoroughly research and not neglect their research and development departments and other sources of information in their strategic planning for new products.