Research On Moya Food Complex

ST.
MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
MARKETING MANAGEMENT PROGRAM
ASSESSMENT ON NEW PRODUCT DEVELOPMENT: THE CASE

OF MOYA FOOD COMPLEX
IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE

AWARD OF MASTER OF ART DEGREE IN MARKETING
MANAGEMENT
BY:
HANA NEGASH
Feb, 2019
ADDIS ABABA, ETHIOPIA
I
ASSESSMENT ON NEW PRODUCT DEVELOPMENT: THE CASE
OF MOYA FOOD COMPLEX
A MASTERSTHESIS SUBMITTED
TO MARKETING MANAGEMENT
PROGRAM OFFICE
SCHOOL OF GRADUATES STUDY
ST. MARY’S UNIVERSITY
IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE

AWARD OF MASTER OF ART DEGREE IN MARKETING
MANAGEMENT
BY:
HANA NEGASH
Feb, 2019
ADDIS ABABA, ETHIOPIA
II
ST. MARY’S UNIVERSITY
ASSESSMENT ON NEW PRODUCT DEVELOPMENT: THE

CASE OF MOYA FOOD COMPLEX
BY:
HANA NEGASH
SCHOOL OF GRADUATES
MARKETING MANAGEMENT PROGRAM
APPROVED BY THE COMMITTEE OF EXAMINERS
DEAN’S OFFICE
SIGNATURE
ADVISOR SIGNATURE
INTERNAL EXAMINER SIGNATURE
EXTERNAL EXAMINER SIGNATURE
III
Statement of Certification
This is to certify that HANA NEGASH WORKU has carried out his research work
on the topic entitled “ASSESSMENT ON NEW PRODUCT DEVELOPMENT: THE
CASE OF MOYA FOOD COMPLEX” is his original work and is suitable for
submission for the award of Masters Degree in Marketing Management.
__________________________
Advisor: Getie Andualem (Dr)
Feb, 2019
Addis Ababa, Ethiopia
IV
Statement of Declaration
“ASSESSMENT ON NEW PRODUCT DEVELOPMENT: THE CASE OF MOYA
FOOD COMPLEX” is my own paper work and that it has not been submitted before anywhere
either at masters level or undergraduate for any award. Any information used from other works has
been acknowledged.
Hana Negash Worku
Signature _____________
Date _____________
Feb, 2019
Addis Ababa, Ethiopia
V
Table of Contents
ACKNOWLEDGEMENT ............................................................................................................... IX
List of Figure ............................................................................................................................... X
ACRONYMS ................................................................................................................................ XI
Abstract .................................................................................................................................... XII
CHAPTER ONE: ....................................................................................................................... 1
INTRODUCTION ..................................................................................................................... 1
1.1. Background of the Study ............................................................................................. 1
1.2. Background of the Organization under Investigation. ................................................ 1
1.3. Statement of the Problem ............................................................................................ 2
1.4. Research Questions ..................................................................................................... 3
1.5. Objective of the Study ................................................................................................. 3
1.5.1. General Objective .................................................................................................... 3
1.5.2. Specific Objective.................................................................................................... 3
1.6. Significance of the Study ............................................................................................ 4
1.7. Scope of the Study....................................................................................................... 4
1.8. Limitation of the Study ............................................................................................... 4
1.9. Organization of the Study ........................................................................................... 5
CHAPTER TWO ................................................................................................................... 6
2. REVIEW OF RELATED LITERATURE ...................................................................... 6
2.1. THEORETICAL FRAMEWORK .............................................................................. 6
2.1.1. Attributes of Product ............................................................................................... 6
2.1.2. Importance of Product ............................................................................................. 6
2.1.3. New Product Development ...................................................................................... 6
2.1.4. Importance of Product Innovation ........................................................................... 6
2.1.5. Type of New Product ............................................................................................... 7
2.1.6. Factor Influencing Product Development ................................................................ 7
2.1.7. New-Product Strategy.............................................................................................. 7
2.2. Empirical Review ........................................................................................................ 9
2.2.1. NPD Process and Model .......................................................................................... 9
2.2.2. NPD Marketing Mix .............................................................................................. 10
VI
2.2.3. NPD Team ............................................................................................................. 12
2.3. Conceptual Framework ............................................................................................. 13
2.3.1. New Product Development Processes ................................................................... 13
2.3.2. New Product Life Cycles Strategy ........................................................................ 15
2.3.3. Buyer Decision Process for New Product ............................................................. 17
2.3.4. New Product Adoption and Diffusion ................................................................... 17
2.3.5. Stages in Adoption Process ................................................................................... 18
2.3.6. Factors Influencing the Adoption Process ............................................................. 18
2.3.7. Stages in Adoption Process ................................................................................... 18
2.3.8. New-Product Failure.............................................................................................. 19
2.3.9. NPD models by Crawford and Benedetto ............................................................. 19
2.3.10. NPD model by Shepherd and Ahmed (2000) .................................................... 20
2.3.11. Stage gate model by Cooper and Edgett ..................................................... 20
CHAPTER THREE ....................................................................................................................... 22
3. RESEARCH DESIGN AND METHODOLOGY ........................................................ 22
3.1. Research Approach ................................................................................................... 22
3.2. Research Design ........................................................................................................ 22
3.3. Population, Sampling Technique and Sample Size ................................................... 23
3.3.1. Population .............................................................................................................. 23
3.3.2. Sampling Technique .............................................................................................. 23
3.3.3. Sampling Size ........................................................................................................ 24
3.4. Type of data Collected .............................................................................................. 25
3.5. Method of data Collection ......................................................................................... 25
3.6. Data Analysis Method ............................................................................................... 25
3.7. Validity and Reliability Test ..................................................................................... 25
3.7.1. Validity .................................................................................................................. 25
3.7.2. Reliability .............................................................................................................. 26
CHAPTER FOUR .................................................................................................................... 27
4. Data presentation, analysis and interpretation ..................................................... 27
4.1. Quantitative Analysis ................................................................................................ 27
4.1.1. General Profile of Respondents............................................................................. 27
4.1.2. General New Product Investigations ............................................................................ 29
4.1.3. New Product Attributes ................................................................................................ 32
4.1.4. Factors Affecting Consumer’s Choice ........................................................................... 36
4.1.5. Correlation between variables ...................................................................................... 41
VII
4.1.6. Relation between new product performance and product attribute .......................... 41
4.1.7. Relation between product performance and factors affecting consumer choice ........ 42
4.2. Qualitative Analysis ................................................................................................... 43
CHAPTER FIVE .......................................................................................................................... 48
5. SUMMARY, CONCLUSION, AND RECOMMENDATION .................................................. 48
5.1. Summary of the major finding .................................................................................. 48
5.2. Conclusion ................................................................................................................. 49
5.3. Recommendation ...................................................................................................... 51
Reference ................................................................................................................................. 55
APPENDIX A .............................................................................................................................. 60
Appendix B ............................................................................................................................... 63
VIII
ACKNOWLEDGEMENT
First of all, may all praise be to God for giving me the strength, patience and
guidance to endure and complete this project. I would also like to express my
appreciation to Dr Getie Andualem, my advisor, for his invaluable comments
encouragement, and expert guidance during the whole process of research writing. I
also wish to thank all my instructors who have been incredibly supportive and my
honor and love goes to my parents: My Mother, she has made so far. Finally I will
thank my best friend Gudeta kuma lots of thanks and appreciations for encouraging
and supporting me I could not make it happen with out you.
IX
List of Figure
Figure 1:NPD model by Crawford and Benedetto (2008) ............................................................ 19

Figure 2: NPD model by Shepherd and Ahemd (2000) ................................................................ 20
Figure 3፡ the typical Stage Gate model – from discovery to launch Cooper and Edgett (2010) ............ 21
X
ACRONYMS
NPD: -New Product Development.
XI
Abstract
The Major Objective of this study is to investigate whether the company (Mo-YA food
complex s.c) new product production process goes with detail or enough research on
customer needs and want. in addition to the major objective the student researcher tries to
identifies weather the company new products matches with customer expectation ,how the
company solve problems related to new product production.
Qualitative and quantitative research method was used and questioners and interview were
prepared for collecting primary data. Addis Ababa city MO-YA Food Complex s.c final
consumers was taken for the study as population, non probability sampling also used
.interview were prepped and conducted for marketing managers for the company. Secondary
data also used as source for the findings.
The result shows that the MO-YA food complex s.c produce new product without making
enough research, customer participation in new product development is very much limited.
The company new product production idea generation only comes from internal sources.
Key words; NPD; New product development; Product, stage gate model, research and
development
XII
CHAPTER ONE:
INTRODUCTION
1.1. Background of the Study
According to Monga and Anand, 2003: 281; Product is central theme of the entire marketing
process. Price, promotion, and place exist because of the product exists. No matter how hard
the company tries to inject excellence in to the product. It is successful only when the users
are satisfied to the fullest.
Kotler and Armstrong (2006: 274) mention that a firm can obtain new product in two ways.
One through acquisition by buying the whole company, patent, or license to produce
someone else’s product the other is through new product development in the company own
research and development department by new product improvement, product modification,
and new brand that the firm develops through its own research and development efforts.
Based on Saxena (2002: 226) a new product is any product which is perceived by the
customer as being new. This could involve repositioning of offering the exits product at
lower price, or making improvement in the existing product, or adding new product item to
the existing product line, or for that matter, taking up a product line, which is totally new to
the organization or new to the world.
As stated by Donald and Russell (2002: 269) the development of new product typically
occurs in stage. At each stage, the product evaluated to determine whether it makes sense to
proceed to the next stage. Most product follow pattern such as idea generation, concept
development, feasibility screening, concept testing, product development, product testing,
market testing and commercialization.
1.2. Background of the Organization under Investigation.

Mo-YA food complex established in 2007 E.C, it is located in Addis Ababa region around
imperial hotel. Until 2010 E.C the company mainly produce 4 types of biscuits which
include; Latte, Coco Loops, Cinnamon snaps & the Saint. Starting from 2010 E.C the
company added another 4 different types of biscuits which include Chocó chunk, Coco
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Drops, Mocha&Ginger Snaps so currently MO-YA Food Complex produces 8 types of
biscuits.
1.3. Statement of the Problem

Every product seems to go through a life cycle. It born, goes through several phases, and
eventually dies as newer product comes along that better serve consumer need. This product
life cycle present to major challenges. First, because of all products become decline a firm
must be good at developing new product to replace aging once and focus on the challenges of
new product development. Second, the firm must be good at adapting its marketing strategy
in the face of changing tastes, technology, and competition as product pass through life cycle
stage or the challenge of product life cycle stage. (Kotler and Armstrong, 2005: 274)
Moreover, Kotler and Armstrong (2006: 272) mentioned that new products are the lifeblood
of organization. However, new product is risky and many new products are failing. Every
product passes through several life cycle stages and that each stage passes new challenges
requires different marketing strategies and tactics. To create successful new product a
company is required to understand consumer, market, competition and develop a product that
deliver superior value to the consumer. It must carry out strong new product development
process for finding and growing new product.
The student researcher reveals right with the aforementioned requirements. Currently the
company produces new product without making detail or enough research on customers need
and want. The Company does not work on changing customers negative perception about
their product; the organization produce new product almost the same as the existing products.
When it produces new biscuits, the company focuses on satisfying variety seeking customers.
In addition, when the company involve in auction to purchase the inputs they will buy inputs
that have poor quality because they want to reduce their cost. Moreover the company uses
less promotional practice for existing and new products, finally the company use mostly
internal source of idea generation.
As the company’s currently practice seen in light with the aforementioned requirements some
gaps observed, that is significant enough to conduct this study. The problems stated as
follow, the company has failure on making research on customers need and want before
producing new product. Even if the company knows that, their customers have negative
perception about their product rather than changing customer perception they produce new
product for the existing market. In addition to these problems, the company also has a
2
deficiency on using quality input also there are Product differentiation related problems, the
company have no Research and Development department plus does not fund enough budget
for Research and Development, not use modern technology as well awareness creation
problem about their new product before and after the product lunch to the market. Finally,
only using internal source of idea generation is also big problem of the organization because
they may loss potential and many good ideas from external source. Viswanathan & Dicksson
(2007) argue that success of new products depends on three factors: transformation of
competitive advantages between local markets, differences in customer preferences and
business environment. These factors will be reviewed in chapter two of this study.
1.4. Research Questions

Based on the above problem student researcher will answer the following basic research
questions.
1. Does the company’s new product match with consumer’s expectation?
2. What are the encounters and prospect that the organization faces in developing
new product?
3. How the company’s solve the problem of new product failure?
4. How the company’s seek to improve its product?
1.5. Objective of the Study
1.5.1. General Objective

The overall objective of this study is to assess the practice of new product development in
case of MO-YA Food Complex.
1.5.2. Specific Objective

The specific objectives of this study are;
 To investigate the extent to which company’s new product match with

customer’s expectation.
 To identify challenges and prospect that the company face when

developing new product.
3
 To identify how the company, solve the problem of new product
failure.
 To examine the company’s activity in improving its product.
1.6. Significance of the Study

In this research, the student researcher tried to show the gap between the company’s new
product development practice and what the theory says about new product development. This
study conducted with the conviction that employee and management of the company will be
aware about what they have to follow to be effective and efficient on their product
development practice. Furthermore, this research will be a blue print for other student
researchers who would like to study further on the title of new product development. Mostly
this research is important for the student researcher to translate what he has learned in to
practice.
1.7. Scope of the Study

This study focused on an assessment of new product development practice in case of MO-YA
food complex which produces Biscuit. In particular, this research focused only on final
customers that are located in Addis Ababa, because it requires much time and huge amount of
finance, so that this study will focus only on Addis Ababa region, head office of MO-YA
food complex specifically Mexico, Gotera, Gofa and Saris will be target location of the
Study because this sites are more accessible and easy to find MO-YA biscuit final customers
to participate in this study, this geographical areas are more manageable for student
researcher in addition in this location there are many local retailers who sell Moya biscuit.
To make the study more manageable, to get current information, to make it reliable, and to
update the researches that conducted by this title, thus the student researcher limited the time
from 2017-2018.
1.8. Limitation of the Study

During the preparation of this study, the student researcher face some constraints by various
restrictions among the limitations, some major once includes lack of finance and adequate
time; some customers are reluctant to fill the questionnaire and also the staffs of the
organization hide confidential information that could assist this study.
4
1.9. Organization of the Study
The study is organized in five chapters. The first chapter includes background of the study,
Background of The Organization under Investigation, statement of the problems, research
questions, Objectives of the study, significance of the study, scope of the study, limitation of
the study, definition of terms and organization of the study. In the second chapter literature
review is viewed. The third chapter deals with research design and methodology. The forth
chapter deals with Analysis of Qualitative &Quantitative data. The last chapter deals with
summary, conclusion &recommendation.
5
CHAPTER TWO
2. REVIEW OF RELATED LITERATURE

In this chapter theoretical review, conceptual framework and empirical review of the study
are briefly highlighted
2.1. THEORETICAL FRAMEWORK
2.1.1. Attributes of Product

Product is a set of basic attributes assembled in an identifiable form. Each product identified
by a commonly understood descriptive or generic name. A product is a set of tangible and
intangible attributes, which may include design, colour, packaging, price, quality, and brand,
plus the seller service and reputation. A product may be a good, service, or idea. In a sense,
customers are buying much more than a set of attributes when they buy a product. They are
buying want satisfaction in the form of product. (Etzel et.al, 2004:208).
2.1.2. Importance of Product

According to Kotler and Armstrong (2010: 222) new product are important to both customer
and the marketer who serve them. For companies, new products are the key source of growth.
For customers, they bring new solution and variety for their lives. Yet innovation can be very
expensive very risky.
2.1.3. New Product Development

According to Lehmann and Winer (2005: 267) new product can be introduced for either
offensive to gain sales, share or defensive to match or block competitor’s purpose. In
addition, firm can obtain new product in two ways. One through acquisition by buying the
whole company, patent, or license to produce someone else’s product the other is through
new product development in the company own research and development department by new
product improvement, product modification, and new brand that the firm develops through its
own research and development efforts.(Kotler and Armestrong,2006:274).
2.1.4. Importance of Product Innovation

According to Kumar (2003: 76) the importance of product innovation are, Product innovation
satisfies its customers while making profit, it enables the company to sell good product in the
long run product innovation is quite helpful in product life cycle, increased consumer
selectivity had led to innovated new product, it also help to protect the environment by
6
bringing out good packaging that are better for the environment in their manufacture, use, and
disposal.
2.1.5. Type of New Product

According to Lamb and et.al (2004: 316) new product can be categorized in to; New to the
world Products -also called discontinuous innovation these products create an entirely new
market. New to the world products, represent the smallest category of new products. New
Product Lines -these products which the firm has not previously offered, allow it to enter an
established market Additions to existing product Lines- this category include new products
that supplement a firm’s established line. Improvements or Revision of existing Products- the
new and improved product may be significantly or slightly change. Most new products fit
into the revision or improvement category. Repositioned Products-these are existing products
targeted at new markets or market segments. Lower-Priced Products- this category refers to
products that provide performance similar to competing brands at a lower price.
2.1.6. Factor Influencing Product Development

Based on Beri (2000: 378) a company may find itself in a situation where it may be advisable
to develop a new product. When sales of its current range of a product have been decline over
the past few years or where it receives complaints about its product from customers,
distributors, retailers, it may have to find the possible reason for the improving of existing
product or the development of all together new product. In addition, the concept of product
life cycle suggest that a product pass through different stages when a company find that some
of its product have entered the decline stage; it may have to take concern measures to replace
them. This can be achieving in two ways; acquisition and innovation.
2.1.7. New-Product Strategy

According to Etzel and others (2004: 220) new product strategy is a statement identify the
role of a new product is expected to play in achieving corporate and marketing goal. A new
product might be design to protect market share, meet a specific return-on-investment goal,
or establish a position in new market. On the other hand, new products role might be it
maintain the company’s reputation for innovation or social responsibility. If the company
goal is to defend market share, product strategy must be introducing an addition to an existing
product line or revise an existing product or if the company’s goal is to strength a reputation
as an innovator, product strategy will be introduce really new product not just an extension of
an existing one. In addition, a new product strategy can also help the company avoid the
7
problem of numerous products under development but few actually becoming ready for the
market. The priority in the strategy can be use to determine which prospect products should
need special attention, which should go on the “back burn”, and which should be scraped.
In addition, Baker (2000:316) mention that new product development should be guide by new
product strategy, it is important that the strategy is not so prescriptive as to restrict, or stifle,
the creativity necessary for new product development. In addition to the stating the level of
newness, a new product strategy encompass the following
Technology and Marketing; this is seen as a dichotomy between allowing the market to pull
new product from companies and companies pushing new technology to the market. The
advantage of the former one is that new product, derived from customers, are more likely to
meet their need, while the advantage of the later is that new technology will meet needs more
effectively and will be hard for competitors to emulate, leading to greater sales, profit and
competitive advantage for longer period of time. Each however, has disadvantage. With new
product development through market pull, there is a greater tendency of the new product to
be better than existing product, leading to product proliferation, possible cancelation of
brands. With technology push products, there is the risk that the new technology is not, in
fact, relevant for customers and is rejected by them. As ever, the emphasis should be on
achieving a balance between the two. Baker (2000)
Product advantage; product strategy that emphasizes the search for different advantages,
through the product itself, it may comprise the following elements: technical superiority,
product quality, product uniqueness, product attractiveness. Baker (2000)
Synergy; is the relation between the new product development and existing activities, known
as the synergy with existing activity. High levels of synergy are typically less risky, because a
company will have more experience and expertise, although perhaps this contradicts the
notion of pursuing product differentiation. Baker (2000)
Risk acceptance; finally, the creation of an internal orientation or climate which accept risk
is high limited as a major role for new product strategy. Although synergy might help avoid
risk association with lack of knowledge, the pursuit of product advantage must entail
acceptance that some project will fail. Baker (2000)
8
2.2. Empirical Review
2.2.1. NPD Process and Model

Experts argue that the easiest types of NPD are the ones that aim to reduce costs or improve
existing products in view that product technologies and markets are well-known (Jorgensen
&Messner, 2009). On the other hand, the hardest way of new product development is the new
entries and new to the world products. In view that markets and technologies are new for the
company such NPD processes require much time and effort. (Crawford & Benedetto, 2008)
NPD has evolved considerable in the last 30 years. During this time, however, the focus of
the process was shifting from one aspect to another. Thus, during the 80’s the main aspect for
companies was the quality of their product; in 90’s they were more concerned about the re-
engineering; and nowadays companies emphasize more on the aspect of “time to market”,
shorter time between developing of a new product and its launch to the market, companies
that are not able to launch a new product to the market fast, might lose the competitive
advantage (Lewis & Wong; 2004).
Cooper and Edgett (2010) there are five stages and five stage-gates in there model. The
authors argue that such a stage-gate model ―is a conceptual and operational road map for
moving a new-product project from idea to launch. Stage-Gate divides the effort into distinct
stages separated by management decision gates (gate keeping). Cross-functional teams must
successfully complete a prescribed set of related cross-functional activities in each stage prior
to obtaining management approval to proceed to the next stage of product development.
However in the latest study Robert Cooper explains that the Stage-Gate model is a process
that can be modified depending on the complexity and size of the project. For instance in a
low risk project the stage one and two can be assessed together, continuing with stages three
and four and concluding with the fifth stage. This system would have three gates instead of
five (Cooper; 2013).
Other author Mac Cormack et al. (2012) fully supports the idea of companies modifying the
Stage-Gate model in accordance with their needs. In a shorter process the company would
save time, money and would be accessible for all different types of projects. One product
development or launch process would not be reliable if it is always requiring the same steps.
Different products have different characteristics and naturally they differ in the requirements.
9
Such claim has been also studied by different authors who have come up with the same
conclusion; one strategy does not fit to all products (Mac Cormack et al.; 2012).
(Crawford and Benedetto; 2008, Shepherd and Ahmed; 2000) also agree that the idea of
companies modifying the Stage-Gate model in accordance with their needs that there are
some review points between these phases where everyone who is involved in the process
meet together and discuss the development of the process.
Cooper (1990) strength that new ideas can come from customers, consumer complains, by
brainstorming with marketing, sales and technical staff. The ideation activity that a company
undertakes to generate a set of product concept represents the concept generation.
2.2.2. NPD Marketing Mix

Many researchers agree that product strategy play a critical role in a company’s performance
in the global market. Two main approaches to product strategy can be found: to develop
products (standardization) or to adapt products specifically to each market (adaptation)
(Zou&Cavusgil, 2002; Ranchhod & Gurau, 2007; Powers & Loyka, 2010).
Furthermore researcher review factors that influence this decision. Focus of this study
however will be on product strategy as well as the rest of elements of marketing mix. Given
the importance of product adaptation in international markets theoretical review of these
elements can give valuable inputs for NPD process understanding and analysis: necessity of
product adaptation influences process of technical stages of NPD process while necessity of
promotion, distribution and price adaption are important issues during marketing strategy
development and launch stages.
Marketing strategy is global if product offering, promotion, price and distribution across
different countries are standardized. Proponents of this perspective argue that customers all
over the world have some similarities that created by advanced communication technology
and transportation (Levitt, 1983; Zou & Cavusgil, 2002).
Viswanathan & Dicksson (2007) argue that success of new products depends on three factors:
transformation of competitive advantages between local markets, differences in customer
preferences and business environment. These factors will be reviewed below.
Ability to transfer competitive advantages can be illustrated with an example. The low price
of the product on the market “A” can be perceived as high by customers from the market “B”.
10
In this case price should be adapted to the market B in order to save this competitive
advantage. The sources of competitive advantage can be found in a product itself or in other
marketing mix elements (Viswanathan & Dicksson, 2007).
Authors argue also that customer homogeneity should be perceived not as similarity in
customer needs, but similarity in customer response to marketing mix. Customers of market
“A” perceive a product as one with high quality as well as customers from market “B”. In this
case the product can be introduced to the market B without any changes, so standardized
product strategy can be implemented. But in a case of different quality perception between
markets “A” and “B” some adaptation of marketing mix elements will be required.
Homogeneity in all four elements should be examined (Viswanathan & Dicksson, 2007).
Taking a contrary view Zou and Cavusgil (1993) suggest that such factors as technology,
culture, competition, and international experience of the company should be reviewed in
order to take decision about standardization/adaptation strategy. Thus technology intensive
industry should seek to standardization of a product and promotion in order to take
advantages of the economies of scale. If the product reflects culture differences among
customers, than it needs to be adapted. In case of high competition in the market, all
marketing mix elements should be customized for a better integration of the customer.
However, in a case of superior product, strategy of standardization can be implemented;
Finally, a company can implement standardization strategy to the market if it does not
possess enough information about this market in order to implement some adaptations
(Zou&Cavusgil, 1993).
Levitt (1983) argues that price must be the most difficult element of the marketing mix for
standardization. Suggest to use “premium pricing” when demand for the product is strong and
competition is weak; and use “competitive pricing” strategy when demand is weak and
competition is high. Pricing adaptation usually depends not only on costs but on competitors‟
prices, local taxes and local market factors.
In addition Thomas L. Powers and Jeffrey J. Loyk (2010) indicate that distribution is
significantly influenced by internal company factors such as subunit cooperation and others.
Place adaptation involves changes in distribution, inventory, and transportation decisions in
local markets. Promotion adaptation can be closed connected with product adaptation. It is
often related to culture differences among countries, religion, regions, differences in
customer’s consumption process, language and so on. Authors also found that the
11
productitself is the most global element of marketing mix that does not require so much
adaptation as other elements. While distribution appeared to be the most local element with
the highest need of adaptation. (Thomas L. Powers and Jeffrey J. Loyk; 2010)
2.2.3. NPD Team

Importance of this sub-part
As it can be seen through, the role of the personnel who are involved in the NPD process is
significant and these empirical concepts provide significant inputs for this study. This part
presents empirical framework regarding the different roles of experts who are involved in the
NPD process, and for further reference the detail establish in the conceptual framework.
This issue was reviewed in view that student researcher believe that the personnel has a
significant role in the NPD process and there is some different between Mo-YA food
complex new product team and what the theory says. In addition, student researcher used to
answer my research question since how is NPD process managed in the company. For the
purposes of this research, an expert who has this position and involved in the NPD process
was interviewed.
Different authors divided NPD team into four parts: role of top managers, role of project
managers, role of product developers and role of the marketing.
Many researchers (Lewis & Wong; 2004, Barkley; 2007) underline the fact that the top
management of a company is the starting point of the NPD process. Top managers must
create excellent conditions for the project team. They should give enough resources for the
development of the project and keeping the milestone unchanged through the life-time of the
project. (Lewis & Wong, Accelerated Project Management, 2004) On the other hand,
however, the top management should not be involved too much in the management of the
NPD process. “Projects are no more successful in the marketplace than other projects despite
the added support of the top management” (Milton, Griffin, Castellion, &Anschuetz, 1996)
Richman (2002) argues that a successful project manager has to be strong in five areas.
People skills, Integration skills, project management skill, Technical skills, knowledge of
organization, Integration skills these skills are important because they assuring planning and
managing the project
12
Clark and Fujimoto (1991) concluded in their article that there are some models of integration
of product manager’s work Traditional functional structure, Lightweight product manager,
Heavyweight product manager, Project execution team structure
Crawford and Benedetto (2008) say that “the role of the marketing personnel changes and
accelerates as the product nears the end of the development phase and moves closer to
launch” Marketing experts are usually involved into the NPD process from the beginning, as
they should handle the market for that product (Crawford & Benedetto, 2008).
2.3. Conceptual Framework
2.3.1. New Product Development Processes

Idea Generation
Based on sexena (2002: 228) the process of new product development starts with the search
for product idea. To be successful, it is important that this search should not be casual. The
top managements should spell out corporate mission an objective for new product.
 Source of New Product Ideas
Based on sexena (2002: 228) source of new product development includes; Customers:
Customers are sometimes able to discuss their requirements and offer ideas that will meet
those problems. Competitors: Systematic comparison or bench marking with the competition
may offer good source of new product ideas. Distributors: Suggestions from distributors and
their problems in handing present products often thrown up new ideas. Creative techniques:
Brainstorming, focused interviews, and technological forecasting enable one to find out the
latent capabilities of innovations. External world: The external world, especially the
use of their technology, offers a good source of ideas for implementation in the home
market. Research and development: Create new product ideas through R&D.
From initial generation of ideas to full commercialization and well into the mature age of a
product, the developers should strive to control what is in their power to control a do to
monitor what is beyond their control. No single fact of new product development can assure
success. Few facts are so detrimental that they are cannot be at least alleviated. Because of
the probabilistic nature of new product development, planning and assessments must consider
long-term repercussions.
13
Idea Screening
Kumar and Mittal (2001: 172) the purpose of idea generation is to create a large number of
ideas. The purpose of the succeeding stage is to reduce that number. The first idea reduce
stage is idea screening, which help spot good ideas and drop poor ones as soon as possible.
Product development cost rising greatly in later stage, so the company want to go head only
with a product idea that are mostly likely to turn in to profitable products.
Concept Testing
When the idea moves pass the screening step, it is evaluate more carefully. Getting reaction
from customers about how well a new product idea fits their need. Concept testing use
marketing research, such as, ranges from informal focus group to formal survey of potential
customers. Companies can often estimate likely cost, revenue, and profitability at this stage.
In addition, market research can help identifying the size of potential market. Even informal
focus groups are useful, especially if they show that the potential users are not existed about
the new idea. If results are discouraging, it may be best to kill the idea at this stage. (Perreault
and McCarth, 1999: 284).
Business Analysis
It involves specifying the features of the product and the marketing strategy needed to
commercialize it and making necessary financial projection. This is the last checkpoint before
significant capital is invested in creating a prototype of the product. Economic analysis,
marketing strategy review, and legal examination of the proposed product are conduct at this
stage; it is at this point that the product is analyzed relative to existing synergy with the firm’s
marketing and technological strengths. The marketing strategy review studied the new
product idea in relation to the marketing program to support it. The proposed product is
assessing to determine whether it will help or hurt sales of existing products. Likewise, the
product is examined to assess whether it can be sold or through existing channels or if new
outlets will be needed. Economic consideration focused on several issues, starting with cost
of R&D, production, and marketing. For financial projection, the firm also forecast the
possibility revenue from future product sales and forecast market shares.( Berkowitz and
others, 1994:305).
14
Product Development
According to Kotler and Keller (2012: 585) Up to now, the product has existed only as a
word description, a drawing, or a prototype. The next step represents a jump in investment
that dwarfs the costs incurred so far. The company will determine whether the product idea
can translate into a technically and commercially feasible product. If not, the accumulated
project cost will be lost, except for any useful information gained in the process.
Market Test
According to Lehmann and Winer (2005: 267)the purpose of such test is to; predict sales and
profit from major product launch, and practice so that marketing, distribution, and production
skill are developed before entering full scale operations. Several decisions must make.
According to Lehmann and Winer (2005: 267) Action standard; Standard for evaluating the
result should be set up in advance. This standard should specify when the various possible
decisions on stop the test, continue the test, revamp the product, go national will be
implemented. Where to test; the choice of where to test market is a serious problem, so that
the firm have to be seriously focus on the where the market have to be tested. How long; The
question of how long to run a test is not easily answered. Obviously, a long run give more
information, but it is also cost more and gives competitors more time to formulate a
counterattack. Repeat usage as well as trial can be accurately assessed. Cost; for a consumer
package good, test marketing cost, advertising, and promotion costs. Information gathering;
during test market, a variety of information is gathered, most of it related to actual sales.
Commercialization or Launch
This is the final stage of the initial development process and is very costly. Decision such as
when to launch the product, where to launch it, how to launch it and to whom based on
information collected through the development process. Launch strategy includes any
advertising and trade promotion necessary. The sales force may require extra training in order
to sell the new product effectively. (Baker, 2000:319).
2.3.2. New Product Life Cycles Strategy

After launching new product, management wants the product to enjoy a long and happy life.
Although it does not expect the product to sell forever, the company wants to earn a decent
profit to cover all the effort and risk that want in to launching it. Management is aware that
15
each product will have a life cycle, although the exact shape and length is not known in
advance. The product life cycle have five distinct stages.
Introduction
During the first stage of product life cycle, it is launched into the market in a full scale
promotion and marketing program. The entire product may be new or the basic product may
be well known but have a new features or accessory that is in introduction stage. Strategy for
entry stage; in the management of product life cycle, a crucial question concerns the timing to
entry into the new market. Should we enter during the introductory stage or should we wait
and plunge in during the early part of the growth stage, after innovation companies have
prove that there is a viable market. (Etzel and others, 1999:200).
Kumar and Mittal (2001: 170) one of the crucial decisions to be taken in the market
pioneering stage is the price strategy to be adopted for the product. No past data or
comparisons are available and the firm normally options for one of the following pricing
strategy. Market skimming: the skimming strategy involve high price, taking advantage of
early entry. Market penetration; penetration pricing will involve low price with the view of
having a good market coverage and eventually by mass market for the product.
Growth
In the growth stage or market acceptance stage, both sales and profit rise, often at rapid rate.
Competitors enter the market in large number if the profit outlook is particularly attractive.
Sellers shift to a secondary demand rather than primary demand promotional strategy. The
numbers of distribution outlets increase, economics of scale are introducing, and price may
come down a bit. Typically, profit start to decline near the end of the growth stage. (Etzel and
et.al, 1999: 200).
Maturity
During the first part of this period sales continue to increase, but at a decreasing rate. While
sales are levelling off, the profit of both producer and retailers are declining, marginal
producers are force to drop out of the market, price competition intensifies, and the producer
assumes a greater share of the total promotion effort in a fight to retain dealers and shelf
space in their stores. New model are introduce as producer broaden their lines, and trade in
sales become significant. Strategy for maturity stage, a product line maybe extending during
16
the maturity stage of its life cycle by making product modification, design new promotion, or
devising new uses. (Etzel and et.al 1999: 200).
Decline
Based on Kumar and Mittal (2001: 172) at the decline stage, the sales begin to fall, the
demand for the product shrinks probably due to new and functionally advanced products
becoming available in the market or the market become apathetic to the product. In any case,
price and margin get depressed; the total sales and the profit diminished.The strategy for
decline stage; the strategy will depend on the companies. Some firms at this stage may try to
link the sales of this product with some other premium products they have developed and
thus try to stretch out the life of a product but most firms perceive properly the impending;
total decline and prepare for the gradual stage phasing out of a product. Successful firms
quite often keep new product ready in a line to fill the vacuum created by the decline of
existing product.
2.3.3. Buyer Decision Process for New Product

According to Kotler and Armstrong (2006: 160) buyers may pass quickly or slowly through
this stage, and some of the stages may even be reverse. Much depend on the nature of the
buyer, the product, and buying situation. So that, Adaptation process is the mental process
through which an individual passes from first learning about an innovation to final adaptation
and adaptation as the decision by individual to become regular user of the product.
2.3.4. New Product Adoption and Diffusion

The likely hood of achieving success with a new, especially a really innovative product, is
increased if management understands the adoption and diffusion processes for that product.
Once again, we stress that organizations need to understand how prospective customers
behave. The adoption process is the set of successive decision an individual person or
organization makes before accepting an innovation. Diffusion of a new product is the process
by which an innovation spreads through out a social system over time. By understanding
these processes, an organization can gain insight into how a product is or is not accepted by
prospective customers and which groups are likely to buy a product soon after it is
introducing, later on, or never. This knowledge of buying behaviour can be valuable in
designing an effective marketing program. (Etzel and other, 2004: 225).
17
2.3.5. Stages in Adoption Process
According to Kotler and Armstrong (2006: 160) consumers go through five stages in the
process of adopting new product. Awareness- The consumer becomes aware of the product,
but lacks information about it.Interest-The consumer seeks information about the product.
Evaluation-The consumer considers whether trying the new product makes sense. Trial- The
consumer tries the new product on small scale to improve his or her estimate of its value.
Adaptation-The consumer decides to make full and regular use of new product.
2.3.6. Factors Influencing the Adoption Process

Marketers recognize the following characteristics of the adoption process differences in
individual readiness to try new products, the effect of personal influence, differing rates of
adoption, and differences in organizations’ readiness to try new products. Some researchers
are focusing on use diffusion processes as a complement to adoption process models, to see
how consumers actually use new products.(Kotler and Keller ,2012:589).
2.3.7. Stages in Adoption Process

Based on Kotler and Keller (2012: 589) the degree to which an individual is relatively earlier
in adopting new ideas than the other members of his social system. Some people are the first
to adopt new product. After a slow start, an increasing number of people adopt the
innovation, the number reaches a peak, and then it diminishes as fewer non-adopters remain.
The five-adopter groups differ in their value orientations and their motives for adopting or
resisting the new product.
Based on Kotler and Keller (2012: 589 Innovators - are technology enthusiasts; they are
venturesome and enjoy tinker with new products and mastering their intricacies. In return for
low prices, they are happy to conduct alpha and beta testing and report on early weaknesses.
Early adopters - are opinion leaders who carefully search for new technologies that might
give them a dramatic competitive advantage. They are fewer prices sensitive and willing to
adopt the product if given personalized solutions and good service support. Early majority -
are deliberate pragmatists who adopt the new technology when its benefits are proven and a
lot of adoption has already taken placing. They make up the mainstream market. Late
majority are skeptical conservatives who are risk adverse, technology shy, and price
sensitive. Laggards are tradition bound and resist the innovation until the status quo isno
longer defensible.
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2.3.8. New-Product Failure
According to Kotler and Keller (2012: 570) products are fail by many reasons, ignored or
misinterpreted market research; overestimates of market size; high development costs; poor
design or ineffectual performance; incorrect positioning, advertising, or price; insufficient
distribution support; competitors who fight back hard; and inadequate payback. Some
additional drawbacks.
2.3.9. NPD models by Crawford and Benedetto

Nowadays we can find many models of the NPD processes. One of such models was
proposed by Crawford and Benedetto (2008). The authors argue that their model can be used
as an initial model for the NPD process in all types of companies. Below Figure illustrates
this model.
Figure 1:NPD model by Crawford and Benedetto (2008)
As we can see, there are five main phases in this model (figure 5). Crawford and Benedetto
(2008) argue that there are some review points between these phases where everyone who
is involved in the process meet together and discuss the development of the process.
19
2.3.10. NPD model by Shepherd and Ahmed (2000)
In addition, the model proposed by Shepherd and Ahmed (2000) who also agree that stage-
gate process should be reviewed by the company requirement. They have proposed these
gates as a tool for companies to develop a strong NPD process.
Figure 2: NPD model by Shepherd and Ahemd (2000)
Shepherd and Ahemd (2000) describe the NPD process as a tunnel, as it can be seen in figure
6, where numerous ideas are gathered at the beginning, but just a few of them can reach the
end of the process.
2.3.11.Stage gate model by Cooper and Edgett

This part starts with presentation of three different models of NPD. It is continued
by choosing one of these models by Cooper and Edgett, (2010) which analyzed in
more details used further for the purposes of this research as basement.
The Stage Gate model is an organized, structured product development and launch
process which is used to decrease the product failures and increase the success of the
companies in launching new products. The Stage gate model is a proven successful
method and many international companies have been using it when launching new
products. International Paper, which is world´s largest player in pulp and paper
industry, is using use Stage Gate process in managing the development and launch
20
of new products. This reference makes the Stage Gate model more relevant to this
case study. (Cooper 2001)
Figure 3፡ the typical Stage Gate model – from discovery to launch Cooper and Edgett (2010)
As it was stated at the beginning of this part, the NPD model presented by Cooper
and Edgett (2010) was used for this research. Researcher can see presented models as
similar to each other. Nevertheless student researcher found that this model better
describes all the processes during each step of NPD and thereby provides most
valuable input for my research. The stage-gate part of the model was illustrated with
the study of Cooper and Edgett (2010), in view that the focus of this study was stage-
gate part of the NPD process.
21
CHAPTER THREE
3. RESEARCH DESIGN AND METHODOLOGY
In this chapter research approach, research design, population and sampling design , source of
data collection methods, validity and reliability, data analysis methods and ethical issues
addressed
3.1. Research Approach

According to Babie (2009) there are three types of studies according to their purpose:
exploratory, descriptive and explanatory. The first one is used in order to clarify some
concepts, find explanations, assess phenomena or seek for new insights. The main goal for
such research is to develop a theory. Such kind of research is known as a very flexible one.
Second type of research, the descriptive one, seeks to describe people, events or situations.
The researcher must have a clear picture of phenomena before conducting the research. Thus
all required changes must be done before the process of research has started. The last type,
explanatory research, provides the cause and effect relationships between variables (Babie,
2009)
Student researcher applied both the quantitative and qualitative methods. Because it would
enable the student researcher to gather and depict descriptive information and provide
information for formulating more sophisticate studies this researches are valuable in:
providing facts on which scientific judgments may be based, providing essential knowledge
about the nature of objects and persons, for closer observation into the practices, behavior,
methods and procedures, playing a large part in the development of instruments for the
measurement of many things, formulating of policies in the local, national or international
level (Calmorin and Calmorin; 2007)
3.2. Research Design

Based on the fact that the objective of this research is to realize NPD process, primarily
qualitative research chosen as a research method but it’s not mean that quantitative research
method is forgotten because student researcher used quantitative method to support the
interview response and also increase reliability, accuracy of the finding by distribute
questionnaire for end users and consider it as customers feedback. So that student researcher
applied both the quantitative and qualitative methods
22
The main difference between quantitative and qualitative data is the difference between
numerical and non-numerical data. (Babbie, 2009; Kent 2007) Quantitative research requires
gathering of numerical data that can be studied in a less biased statistical way. The main
advantage of quantitative research is ability to count gathered data and to implement some
statistical models. Quantitative research is characterized by deductive relationship between
theory and research (Bryman, 2007) that means that a researcher should have understanding
of a researched issue before starting the measurements. Finally, a set of numbers will be
collected and after a statistical analysis they will lead to results. Qualitative research is the
one that emphasizes words rather than quantification during collection and analysis of data.
Qualitative research stresses on the understanding of the words rather than numbers and seeks
to answer “why” and “how” questions. Kent clarify Compared to quantitative data, the
qualitative one is, from one hand, richer and more detailed, and from the other hand, contains
information from much less number of respondents, potential of its creativity as the main
strength of qualitative data. Further, open ended questions and subjective nature of qualitative
research is strength. The qualitative research is going beyond the description on a general
level to a more detailed and full research (Kent, 2007).
3.3. Population, Sampling Technique and Sample Size
3.3.1. Population
In this survey, marketing manager and final customer who use or consume biscuits of Moya
food complex considered as participant of this study. In addition, interview with the
marketing manager considered. Because of customer population size is infinite, or it is
difficult to list down all population, only selected population were participant of this study.
Among the non-probability approach the student researcher used convenience or accidental
sampling technique because it uses for testing and gaining idea or rough impression about
subject of interest.
3.3.2. Sampling Technique

In order to find a proper sample technique, one out of two approaches should be chosen:
probability or non-probability sampling approach. The main difference between two of these
techniques is the fact that in the first case the chance of each unit being selected from the
population is known and usually this chance is equal for all units. In contrast, the probability
of each unit from the non-probability population is not known, so generalization will be done
23
not on statistical grounds (Saunders, 2007). Often qualitative researches are associated with
usage of non-probability sampling, even though probability sampling is used sometimes as
well (Bryman, 2007).
Because of customer population size is infinite, or it is difficult to list down all population,
only selected population were participant of this study. Among the non-probability approach
the student researcher used convenience or accidental sampling technique because it uses for
testing and gaining idea or rough impression about subject of interest.
3.3.3. Sampling Size
Based on the recommendation provided by Yamane (1967), with respect to non-probability

sampling approach when the population of the study is not defined and for large population
size, although tables can provide a useful guide for determining the sample size, you may
need to calculate the necessary sample size for a different combination of levels of precision,
confidence, and variability. When the population is more than 100,000 for Precision (e) of
±6% and Where Confidence Level is 95% and P=0.5 and to determine sample size (no) it’s
applicable to use one of several formulas (Yamane, 1967).
For populations that are large, Cochran (1963) developed the Equation to yield a
representative sample for proportions. Which is valid where (no) is the sample size, Z is the
abscissa of the normal curve that cuts off an area αat the tails (1 - α equals the desired
confidence level, e.g., 95%), e is the desired level of precision, p is the estimated proportion
of an attribute that is present in the population, and q is 1-p. The value for Z is found in
statistical tables which contain the area under the normal curve (1.96). .
So that student researcher by use recommendation by (cochran; 1963) determine sample size
as follow. Taking 95 % confidence level Z is termed to be 1.96, with a precision of ±6% and
assuming p=0.5 and q is 0.5 Putting the figures in the equation the sample size is determined
to be 266. This means that two hundred sixty-six (266) customer respondents have been taken
as a reliable sample size for this study; more specifically Mexico, Gotera, Gofa and Saris
were target location of the Study because this sites are more accessible and easy to find
24
Moyabiscuit final customers to participate in this study, this geographical areas are more
manageable for student researcher in addition in this location there are many local retailers
who sell Moya biscuit.
3.4. Type of data Collected

Student researcher employed both primary and secondary data for this study. The primary
data collected from final customer and the marketing manager of Moya food complex. In
addition to the primary data student researcher used secondary data that obtained from
different sources and publications such as company’s annual report, book, internet, journal,
articles etc.
3.5. Method of data Collection

Kent highlights such qualitative research methods as interviews, observation, ethnography,
consultation and focus groups (Kent, 2007).
To support the research findings by primary data the student researcher collected the
primary data through questionnaire and guide interview. The questionnaires distributed to the
company’s final customers and the interview conducted with the company’s marketing
manager.
3.6. Data Analysis Method

Methods and approaches of qualitative data analysis depend on the nature and purpose of the
research (Babbie; 2009). The data analysis techniques employed for this study was mainly
descriptive. Data entered in SPSS and arranged for statistical analysis. After that student
researcher interpreted the results so as the information can be put in use of decision making.
Data analysis is important in interpreting the results so that the information can be put in use
of decision making. As a result, the response from the quantitative method put in terms of
frequency, percentage, standard deviation and mean has been presented and table, also
interview and open-ended responses put in content analysis
3.7. Validity and Reliability Test
3.7.1. Validity
Validity is concerned with whether findings are really about what they appear to be Saunders
et al. (2003). It is defined as the extent to what data collection method or methods accurately
25
measure what they were intended to measure Saunders etal. (2003). In this study the
Questionnaire pre tested before starting the survey and questionnaire tested by 15 persons
who have the knowledge on how to prepare a questionnaire for a research. This makes the
student researcher to be guarantee about the research validity
3.7.2. Reliability
As Andrew, Pedersen, and McEvoy, (2011) adopted from (Nunnally and Bernstein, 1994), a
popular method for measuring the internal consistency reliability a group of items is
Cronbach’s alpha coefficient, often referred to as simply Cronbach’s alpha or Cronbach’s α.
In short, Cronbach’s alpha measures how well a set of variables or items measures a single,
uni-dimensional latent construct. It is essentially a correlation between the item responses in a
questionnaire; assuming the statistic is directed toward a group of items intended to measure
the same construct, Cronbach’s alpha values will be high when the correlations between the
respective questionnaire items are high. Cronbach’s alpha values range from 0 to1, and, in the
social sciences, values at or above 0.7 are desirable, but values well above 0.9 may not be
desirable as the scale is likely to be too narrow in focus.
26
CHAPTER FOUR
4. Data presentation, analysis and interpretation
This part of the research paper deals with analysis and interpretation of the collected data
through questionnaires (open ended and close ended questions).
Questionnaires were distributed to final consumers who purchase biscuit for consumption.
Out of 266 copies of questionnaires distributed 239 (89 %) has been filled out thoroughly and
returned, the rest27 questionnaires could not be collected for different reasons. The data,
which was gathered through closed ended questions, was analyzed using the statistical tools
which include percentages and frequency, mean, standard deviation, variance and the data,
which was gathered through open ended questions, was narrated to support the findings of
quantitative once.
4.1. Quantitative Analysis
4.1.1. General Profile of Respondents
age
Frequency Percent Valid Percent Cumulative

Percent
<18 16 6.7 6.7 6.7
19-30 57 23.8 23.8 30.5

Valid 31-42 131 54.8 54.8 85.4
>43 35 14.6 14.6 100.0
Total 239 100.0 100.0
Regarding the age structure of respondents 16 (6.7 %) are under age, 57 (23.8 %) are in the
age 19-30, respondents age of 31-42 count to be 131 (54.8 %), 35 (14.6 %) of the respondents
are in the age of 43 and above. This implies that the majority of respondents who purchase
the company biscuit are under the age category of 31-42 this is good advantage for the
student researcher finding because peoples in this age are more responsible and rational on
their behavior than other age group.
27
education

Percent
primery 64 26.8 26.8 26.8
high school 77 32.2 32.2 59.0
certificate 60 25.1 25.1 84.1

Valid
first degree 33 13.8 13.8 97.9
second degree and above 5 2.1 2.1 100.0
Total 239 100.0 100.0
Concerning the educational background of respondents, 26.8 % of respondents are primary,

32.2 % of them are high school completed, 25.1 % of them categorized in a group who have
certificate, 13.8 of the respondents are first degree holders, and the last 2.1 % of respondents
are second degree and above.
customer

Percent
<1years 92 38.5 38.5 38.5
2-3 78 32.6 32.6 71.1
4-5 47 19.7 19.7 90.8

Valid
6-7 18 7.5 7.5 98.3
>8years 4 1.7 1.7 100.0
Total 239 100.0 100.0
In this part student researcher tray to show how long the respondents have been consumers of
MO-YA food complex s.c biscuit, from the data gathered from 239 consumers 92 of them
know the company biscuit less than a year, 78 of them were customers of the company
biscuit for the past 2-3 years, and also 47 of them 4-5 year, 18 respondents from 239 under 6-
7 years, only 4 of the respondents were aware and consume the company biscuit for the past 8
and above years. This shows that most of the consumers are new for the company so the
company have to work harder than ever to make them loyal consumers in the future if not
they are sensitive to shift to competitor products but only 22 respondents where hard core
28
loyal consumers those stay with the company more than 6 years, indirectly this shows that
even if the company stay in the business for many years but the ratio show consumer who
visit the company’s sales shop frequently are new ones, it gave sense that the company have
gap on holding current customers.
4.1.2. General New Product Investigations
differentiate

Percent
Strongly agree 21 8.8 8.8 8.8
Agree 58 24.3 24.3 33.1
Neutral 10 4.2 4.2 37.2

Valid
disagree 38 15.9 15.9 53.1
Strongly disagree 112 46.9 46.9 100.0
Total 239 100.0 100.0
As it is shown in the table attached in the last part of the paper, (21)8.8 % and (58)24.3 % of
the respondents strongly agreed and agreed that they easily differentiate the company’s
biscuit from others in the market, (10)4.2 % of the respondents are neutral, the rest (38)15.9
%, and (112)46.9 % of the respondent replied disagree and strongly disagree about it. The
mean data is 3.68 close to 4 which strengthen the data obtained, most of respondents are
disagree that the company biscuit is not easily differentiated by them or don’t have any
additional attribute to make the differentiate it easily form competitor biscuits and the SD and
Variance is 1.476 and 2.177 respectively by which relatively the responses are somehow
consistence.
perceive

Percent
Agree 7 2.9 2.9 5.4
Neutral 2 .8 .8 6.3
Valid
disagree 77 32.2 32.2 38.5
Total 239 100.0 100.0

In the table shown at the appendices, in perceiving the company biscuit as a new one in the
market only 13 of the respondents agreed and strongly agreed,2 of them neutral and from
29
total of 239 respondents 224 of them strongly disagree and disagree that the biscuits are not
perceived as a new one by consumers mind. By using the theory in the past chapter new
product must perceive by the consumer as new one but here the data show that the MO-YA
food complex s.c biscuit lack something to convince consumers that the product are new. The
mean value which is 4.47 approaches to 5 indicates that majority of the respondents strongly
disagree that the product is new for them and don’t perceive the new biscuit as a new one
when they found it in the market. Hence one can conclude from this that, there is no balance
between the response of customer acceptance of new product as a new one but the company
perspective the product are new products and launch to market as a new one. In addition to
this the SD is .0864. This implies that the response of the respondents is consistent from the
response of the average respondents.
feature

Percent
Agree 10 4.2 4.2 7.5
Neutral 5 2.1 2.1 9.6

Valid
disagree 88 36.8 36.8 46.4
Total 239 100.0 100.0

From the table we can see that 8(3.3 %) have strongly agreed and 10(4.2 %) have agreed that
the new biscuit come with any unique feature to have superior value than others. 128(53.6 %)
strongly disagree and 88(36.8%) disagree on the issue while the rest were neutral 5(2.1%).
The mean value which is 4.33 approaches to 4 indicating that majority of the respondents
says that the new biscuit have no special attribute to make them believe that it have superior
value than competitor biscuits in same market. Hence one can conclude from this that, there
is consistency among the respondents that they can’t observe or experience the new products
superior value the company adds to attract them. In addition to this the SD and Variances is
.959 and 0.920 respectively. This implies that the majority of response has near value from
the response of the average respondents.
30
disposable

Percent
Agree 9 3.8 3.8 11.7
Neutral 9 3.8 3.8 15.5

Valid
disagree 72 30.1 30.1 45.6
Total 239 100.0 100.0
From the total of 239 respondents; 28 that is 11.7 % answered positively, and in reverse 202
of them 84.5 % had negatively responded that means they don’t found the packaging easily
disposable. While the rest 9 of the respondents that is 3.8 % were neutral regarding
innovativeness of the product package. The mean value which is 4.19 indicating that, the
respondents believe that the company’s new biscuit package is not comfortable to dispose at
all so, In addition to this the SD is 1.19 and variance of 1.41 this implies that the response of
the respondents is conflicting or more move away from the response of the normal
respondent.
expectation

Percent
Agree 22 9.2 9.2 45.2
Neutral 19 7.9 7.9 53.1

Valid
disagree 42 17.6 17.6 70.7
Total 239 100.0 100.0

As it is shown in the table on aggregate 108 (45.2 %) strongly agree and agree that there
expectation much with the new product performance. On the other hand 112 (46.9 %) of the
respondent disagreed and strongly disagreed that new biscuit match with their expectation. 19
(7.9%) are neutral. The mean data is 2.95 close to 3 which balanced data is obtained and the
SD and Variance is 1.7 and 2.9 respectively by which relatively the responses are
consistence. Even if the response is balanced and 108 respondents believe that the company
biscuit match with their expectation student researcher don’t take is serious because majority
of same respondents response negatively for other attributes like differentiation, perceive the
product as a new, design, attractiveness, and innovativeness of the company so the reason
31
that there expectation and the product performance match may come from they have less
confidence on the company to produce a product that can satisfy their higher expectation, that
means that their past experience with the company may make their expectation in the bottom
line.
4.1.3. New Product Attributes

design

Percent
Agree 7 2.9 2.9 5.9
Neutral 2 .8 .8 6.7
Valid
disagree 8 3.3 3.3 10.0
Total 239 100.0 100.0

only 2(0.8 %) respondents are neutral, other respondents reaction on the company’s biscuit
whether its good in design or not, only 14(5.8 %) respondents believe that the company
biscuit come up with good design , while the rest of the respondents 223(93.3 %) believe that
the company biscuit design is poor. The mean value which is 4.74 approaches to 5 indicating
that the biscuit design is poor and few of them reply against the issue. Hence one can
conclude from this that, there is consistencies among the respondents on the company’s new
biscuit are poor in design so the company have to this issue as serious one and must modify it
as soon as they can. In addition to this the SD and variance are 0.859 and 0.737 which shows
that the response is not conflicting or less diverge from the response of the average
respondents.
number

Percent
Agree 26 10.9 10.9 16.7
Neutral 36 15.1 15.1 31.8

Valid
disagree 62 25.9 25.9 57.7
Total 239 100.0 100.0
From the data obtained majority of the respondents (68.2 %) have negative attitude towards
the attractiveness of Number of biscuits inside one package attract them to prefer it
32
fromothers. Only (16.8%) of the respondents have positive responded to this question. This
implies consumers are not attractive by the number of biscuit so that if they get any other
biscuit which is attractive than MO-YA food complexes s.c product they will have no reason
to stay with the company, in addition (15.1 %) where neutral The mean value which is 3.89
approaches to 4 indicating that respondents say that they purchase the company’s new
product even if it’s size and number of biscuit not attractive than others biscuits in the market
and some of them are impartial. Hence one can conclude from this that, there is no strong
consistency among the respondents on the issue. In addition to this the SD is 1.236 which
shows that the response is inconsistent or more turn from the response of the regular
respondents.
fasting

Percent
Agree 4 1.7 1.7 9.2
Neutral 33 13.8 13.8 23.0

Valid
disagree 88 36.8 36.8 59.8
Total 239 100.0 100.0
From the total of 239 respondents; that is 22 (9.2 %) don’t need fasting biscuit, and in
reverse 184 of them (77 %)need fasting biscuit. while the rest 33 of the respondents react that
is 13.8 % were neutral regarding to buy fasting biscuit on Wednesday and Friday. The mean
value which is exactly 4 indicating that respondents say that they don’t purchase the
company’s biscuit every Wednesday and Friday cause this days are the fasting days and some
of them are not sure and the rest replied against them. In addition to this the SD and variance
are 1.136 and 1.290respectively shows that the response is inconsistent or more deviated
from the response of the majority respondents. Hence one can conclude from this that, there
is no strong consistency among the respondents on the issue, this indicate that even if student
researcher don’t ask about their religion but indirectly from 239 respondents above 184 of
them are orthodox cause in Ethiopian orthodox attitude Wednesday and Friday are fasting
days so as long as the company offer them fasting biscuit the sales volume of the current
biscuit will increase on this days.
33
taste

Percent
Agree 3 1.3 1.3 2.9
Neutral 2 .8 .8 3.8
Valid
disagree 101 42.3 42.3 46.0
Total 239 100.0 100.0
As it is shown in the table attached in the last part of the paper, 31 of the respondent that is 13
% and 41 of them that is 17.2 % responded disagree and strongly disagree respectively and
63 of them that is 26.4 % and 80 of the respondent that is 33.5 % strongly agree and agree
respectively while 24 of the respondent that is 10 % are neutral. When we aggregate the
response 72 of the respondent that is 30.2 % respond against and163 of them that is 59.9 %
responded positively. The mean value which is 0.61 indicates that majority of the respondents
like taste of the biscuit. In addition to this the SD is 1.4 and Variance shows 2.06 this shows
that the response of the respondents is consistent or less deviated from the response of the
average respondents. Hence one can conclude from this that, The Company produce its new
biscuit with considering consumer taste, as long as there is serious satisfaction on the taste of
the biscuit consumers buy the product again and surly this will open less opportunity for
other competitor company to attract this customers easily.
flavor

Percent
Agree 4 1.7 1.7 3.8
Neutral 9 3.8 3.8 7.5

Valid
disagree 113 47.3 47.3 54.8
Total 239 100.0 100.0
As it is shown on the attached table at the appendices 26.4% of the respondents agreed,
33.9% respondent strongly agreed and 5.4 % are natural while 17.2 % and 17.2 % of the
34
respondent disagree and strongly disagree. This implies that the company biscuits flavor
accepted by sample respondents. The mean value which is 2.61 approaches to 3 indicating
that majority of the respondents say that the company develops different flavors with
customers interest, In addition to this the SD is 1.5 and variance 2.3 and this implies that the
response is not compatible or move away from the response of the mass respondents. Hence
one can conclude from this that, flavor is key factor to make consumers satisfy and make
them buy the product frequently.
crispiness

Percent
Agree 5 2.1 2.1 5.4
Neutral 22 9.2 9.2 14.6

Valid
disagree 94 39.3 39.3 54.0
Total 239 100.0 100.0
As it is shown in the table attached in the last part of the paper 110 of the respondent that is
46 % and 94 of them that is 39.3 % replied strongly disagree and disagree and 22(9.2 %) of
them responded neutral on the issue of the biscuit crispiness, the rest 8 of the respondent that
is 3.3 % and 5 of them that is 2.1 % of the respondent strongly agreed and agreed. The mean
value which is 4.23 indicating that, the respondents don’t like the crispiness of the biscuit that
much so, one can conclude from this that the respondents are consistent on not attracted by
the crispiness of the new biscuit. In addition to this the SD is 0.943 this implies that the
response of the respondents is consistent or less deviated from the response of the average
respondents. And the variance show 0.890 that relatively there is turn between them.
35
attract

Percent
Agree 20 8.4 8.4 12.6
Neutral 21 8.8 8.8 21.3

Valid
disagree 65 27.2 27.2 48.5
Total 239 100.0 100.0
For the question asked if the biscuit is stylish or not 10 (4.2 %) have answered strongly agree,
20 (8.4 %) respond agreed and 21 (8.8 %) of the respondents are neutral. 65 (27.2 %) and 123
(51.5 %) of the respondents replied disagreed and strongly disagreed. The mean value which
is 4.13 indicating that, the respondents agree on is The new biscuit produced by Moya food
complex consider and attract all age category. In addition to this the SD is 1.141 and variance
of 1.301 this implies that the response of the respondents is inconsistent or more move away
from the response of the average respondents. To summarize this student researcher believe
that the negative response comes not because the product is not stylish because the biscuits
are so stylish than competitor biscuits but the problem that the company face is their target
consumers are children’s, for them it may be stylish but for older peoples it can’t be cause it’s
not even comfortable to consume it everywhere and it may reflect their social status
negatively, that means that in our society biscuits are considered as children’s snack than
adults.
4.1.4. Factors Affecting Consumer’s Choice

color

Percent
Agree 21 8.8 8.8 13.4
Neutral 38 15.9 15.9 29.3

Valid
disagree 56 23.4 23.4 52.7
Total 239 100.0 100.0
From the data obtained one can clearly observe that color has huge influence on customer’s
psychology in point of purchase. The more attractive the color is the higher probability the
36
product has to be purchased if not at least the customer will have the appetite to examine the
product in detail which is better than not been seen at all. The mean value for the data is 4.00,
which means the average respondents are convinced that color is one of the important aspects
in purchasing the biscuit product, with the standard deviation of 1.285 and variance value of
1.403From the data obtained majority of the respondents (70.7 %) have negative attitude
towards the package color that is consumed by final consumers,(16%) where neutral the rest
of the respondents have positive responded to the question. This implies customers believe
that the package color is not attractive to choose it from the shelf.
quality

Percent
Agree 79 33.1 33.1 69.0
Neutral 26 10.9 10.9 79.9

Valid
disagree 29 12.1 12.1 92.1
Total 239 100.0 100.0
From the data obtained out of 239 respondents 165suggest that the quality encourage them to
purchase the product and 48 of respondents argued it will be better if the exiting quality of
the biscuit has changed, so as customers will be motivate to purchase more of that brand, still
26 stay neutral. The data mean value is 2.23 it shows that respondents agree that the biscuit
quality is good and the SD is 1.274 which means that the data provided inconsistency among
the questionnaires and the variance is 1.623. This data help Student researcher to say that the
company biscuit quality fit consumer’s preference so it’s better to keep it as it is.
comfortable

Percent
Agree 39 16.3 16.3 19.7
Neutral 8 3.3 3.3 23.0

Valid
disagree 122 51.0 51.0 74.1
Total 239 100.0 100.0
37
For total of 239 respondents 122 of the respondent that is 51 % and 62 of them that is 25.9 %
replied disagree and strongly disagree that the package of the biscuit is not friendly with the
environment and 8(3.3 %) of them responded neutral on the issue of the environment, the rest
8 of the respondent that is 3.3 % and 39 of them that is 16.3 % of the respondent strongly
agreed and agreed. The mean data is 3.8 close to 4 which strengthen the data obtained that
most of the respondents believe that the package is not friendly with the environment so one
can conclude that the company should have to come up with new package that match with the
environment, and the SD and Variance is 1.101 and 1.212 respectively by which relatively
the responses are somehow inconsistence and more dispersed. More than 75% of respondents
believe that the package is not friendly with the environment.
logo

Percent
Strongly agree 124 51.9 51.9 51.9
Agree 59 24.7 24.7 76.6
Neutral 29 12.1 12.1 88.7

Valid
disagree 10 4.2 4.2 92.9
Total 239 100.0 100.0
Again For total of 239 respondents 183 of the respondent that is 76.6 % and argue that the
biscuit brand logo is easy to recall and they are good with it and 27(11.3 %) of them
responded it’s hard to recall and remember the company’s biscuit logo, 29(12.1 %) stay
neutral. The mean data is 1.9 close to 2 which strengthen the data obtained that most of the
respondents believe that the brand name and logo is easy to recall and pronounce it, and the
SD and Variance is 1.202 and 1.444 respectively by which relatively the responses are one
way or another consistence. From this student researcher can terminate that most of
participants like the name of the biscuit and it’s easy for them to recall and remember, in
other word customers are really satisfy and not have that much complain on the brand name.
38
Fair price

Percent
Strongly agree 132 55.2 55.2 55.2
Agree 81 33.9 33.9 89.1
Neutral 10 4.2 4.2 93.3

Valid
disagree 3 1.3 1.3 94.6
Total 239 100.0 100.0
As it is obvious price is the most sensitive element, at least for most of the individuals,
customers are willing to pay the current price. The data obtained supports the argument
because most of the respondents 213 have agreed that they will purchase the product if the
price stay as it is. Only 16 believe it’s not fair price. The mean data shows 1.68 close to 2 that
most of the respondents consider that the price is fair for them, to support the data obtained
the SD and Variance is 1.017 and 1.034 respectively by which relatively the responses are no
matter how the price is but its fair for most of consumers, but still the data show respondents
are inconsistence on this issue.
Transit advertising

Percent
Agree 67 28.0 28.0 41.0
Neutral 27 11.3 11.3 52.3

Valid
disagree 83 34.7 34.7 87.0
Total 239 100.0 100.0
From the data we can see that 31(13 %) have strongly agreed and 67(28 %) have agreed that
if the company rise the price in any rate the will pick competitors product from the shelf.
31(13 %) strongly disagree and 83(34.7%) disagree on the issue that even if the company
increase the price from their selling price the stay loyal and keep buying. the rest were neutral
27(11.3 %).The mean value which is 3.07 indicating that, the respondents may or may not
shift if the company shift its price in any rate, one can conclude from this that the
respondents are nonaligned that means they are between shift or stay so it’s better for the
39
company to stay as it is . In addition to this the SD is 1.291 and variance of 1.668 this implies
that the responses of the respondents are not more moves away.
shop

Percent
Agree 5 2.1 2.1 3.8
Neutral 14 5.9 5.9 9.6

Valid
disagree 47 19.7 19.7 29.3
Total 239 100.0 100.0
Again For total of 239 respondents majority of them 216 of the respondent that is 90.4% and
argue that company’s not use transit advertising and 9(1.7 %) of them responded positively,
14(5.9 %) stay neutral on this issue. The mean value which is 4.56 close to 5 it indicating
that, the new biscuit is not promoted by transit advertising such as taxi, public transports and
so on. One can conclude from this that the company is weak in transit advertising practice. In
addition to this the SD is 0.833 and variance of 0.693 this implies that the responses of the
respondents are not more turn aside instead majority of them agree that the new biscuits are
not promoted by the modern way of advertising type such as transit advertising.
aggressive

Percent
Agree 23 9.6 9.7 28.6
Neutral 23 9.6 9.7 38.2

Valid
disagree 66 27.6 27.7 66.0
Total 238 99.6 100.0

Missing System 1 .4
Total 239 100.0
Again For total of 239 respondents 68 of the respondent that is 28.4 % start purchase after
they see the advertising of the biscuit and148(61.9 %) of them responded advertising is not
their motivation to buy the product, 23(9.6 %) stay neutral. The mean value which is 3.49
proves that, respondents start purchasing the company’s new biscuit after the advertising
40
done to aware consumers. In addition to this the SD is 1.5 and variance of 2.2 implies that the
responses of the minority respondents have the same opinion that the advertising pushes them
to consume.
4.1.5. Correlation between variables
The main goal of this correlation is to demonstrate the new product performance association
with final consumer’s preference and to associate it with qualitative analysis that gather by
deep interview use it for recommendation. So that the New product performance of the
company is the dependent variable of this study and student researcher tray to categorize
factors affecting consumer’s preference as Independent variables these variables are: taste,
flavor, crispiness, stylish, color, price, availability, advertising and so on. Correlations among
all variables are displayed in Table at the end of this study.
4.1.6. Relation between new product performance and product attribute

There is a positive correlation between new product differentiation and new product attribute
(r= 0.248) taste of the new biscuit, (r=0.392) offer fasting biscuit, (r=0.309) crispiness of
biscuit, have relatively lower relation to differentiation the company’s new biscuit from other
biscuits In other way variables like (r=0.723) attractiveness of the biscuit size, (r=0.505)
stylishness of the biscuit with significant level of (p= < 0.01) have strong relation for
differentiating the company’s biscuit from other biscuits in the market. This means that, MO-
YA Food S.C. while designing their product should put in considerations on these important
variables because all variables under product attribute have positive relation for
differentiating the company’s biscuit in the market. It might simplify and clearly explain how
consumers differentiate the company’s biscuit form competitors’ in the market
There is also positive correlation between new product superior value and all product
attributes, (r= 0.321) taste of the biscuit, (r=0.307) crispiness of biscuit, which the program
translates as a relatively weak correlation between superior value but (r=0.481) offering
fasting biscuit, (r=0.495) attractiveness of the biscuit size, (r=0.447) stylishness of the biscuit
and (r=0.429) design with person correlation magnitude significant level of (p= < 0.01)
relatively have strong relation for offering superior value than other biscuits in the market.
This means that, MO-YA Food S.C. while producing their product should have kindness on
this product attributes because all variables have positive impact to have superior value on the
company’s biscuit. The company can use this Product attributes to attract new consumers and
41
satisfy current customers by providing superior value directly to safe guarded their future
profitability.
There is a muscular correlation between consumer expectation and new product attributes
(r=0.577) attractiveness of the biscuit size, (r= 0.418) taste of biscuit, (r=0.404) stylishness of
the biscuit have relatively strong relation with what consumers expectation. This implies that
the above elements are what consumers seriously want to satisfy their desire, so the company
must produce a biscuit that have special features for consumers to differentiate and attractive
them to purchase the product frequently.
4.1.7. Relation between product performance and factors affecting consumer

choice
There is a positive correlation between new product superior value and factors affecting
consumer choice, (r=0.229) color of package, (0.229) package friendly with environment,
(r=0.174) availability all under significant level of (p= < 0.01) variables have week relation to
offer superior value for consumers. This correlation seriously advice the company to focus on
consumers need and want and have to work hard on market analysis to investigate what
competitors are doing and what they offer for consumers, because as long as all company’s in
same industry launch their product in same market MO-YA Food S.C. have to produce
biscuit that offer superior value by using new technology and increase innovativeness of
employers to match what consumers expect from the next new product.
Even if it is not strong but colour of the package 0.281, brand name of the biscuit 0.223, fair
price 0.264 and easy to access the package 0.417 have positive correlation with
differentiating the company biscuit. This means that, MO-YA Food S.C. while designing
their product should put in to considerations on package and brand name of the biscuit. These
variables might make things easier and visibly explain the company biscuit for consumers.
in other way As we can notice from the correlation table, the direction of the relationship
between some variables with expectation of consumers are negative, which means that there
is a negative correlation – high scores on one variable are associated with low scores on the
other. The relationship between consumer expectation and environmental friendly package is
the first negative correlation (r = -0.08, p=<0.05). These numbers mean that the when MO-
YA Food S.C makes a product package more friendly with the environment, the more
negative consumers expectation match with the product. Going further we can notice a
42
negative correlation between consumer expectation and shift consumers to other company
product if price increase in any rate by company (r = -0.303, p = <0.05), so if the company
increase price in any rate, the more they are toward it, There is also negative relation between
the consumer expectation and availability of the product in every shop (r = -0.099, p =
<0.05), which signify the more the company make the product available in every shop, the
more negatively they are toward it.
Negative relation between elements also observed in the correlation table, the direction of the
relationship between the variables is mostly negative, which means that there is a negative
correlation – high effort on one variable are linked with low scores on the other variable. The
relationship between the company produce different in consumers flavor interest and easy to
access the package is negative correlated (r = -.0.047, p=<0.05). These numbers mean that the
more flavor biscuits the company produces; the more negative consumers can access the
package. Going extra we can notice a negative correlation between flavor and easy to recall
the brand name of the biscuit (r= -0.141, p = <0.01), so the more different flavor that match
consumers preference produced, the more negative affect easy to recall the brand name,
which sounds logical, but now was also proven through numbers. There is also negative
relation between the flavor and fair price (r = -0.033, p = <0.05), which signify the more
flavor the company produce, the more negatively it become fair price for consumers still it
gave sense And also flavor of the biscuit and availability harmfully correlated (r = -0.228, p =
<0.01), this implies if the company focus on producing different flavor to fit consumer taste,
the availability of the new product will affect negatively.
4.2. Qualitative Analysis

The development phase already exists in the company but it is not well structured and
presented in the time of interview. Company’s marketing managers have good knowledge
about product development stage and marketing strategy.
Does the company produce products those are based only on customer need and market
research? According to the interviews even if the main source of idea comes from
management suggestions but still the management team believes that during the customers
visit, they can define easier the customer needs and want but the drivers work as sales
persons of the company, means that drivers are not skilled on doing the professional sales
activities. That’s why even if Company management team sees customer visit as the main
inspiration source for the new products ideas but still they don’t use it as well, cause the
43
management don’t have confidence on the drivers to collect feedback from consumers and
presented to responsible party in the professional way.
Internal and external source are the important methods of idea generation. At Company
internal search method has been used very well, using the general knowledge and ideas which
management may have could be implemented regularly. Company has not been cooperating
yet with technical universities, which would be a valuable contribution for the idea generation
and product development process and the company even have no well organized research and
development department.
After analyzing the results of the interview with the management it was discovered that most
of ideas come from management and few by analyzing customer problems. From there, the
company develops new products. For instance, for two recently launched products; the
company tray to analyze customers problem and develop product that is different from
competitor’s biscuit regarding amount, size, shape, colour, design, and those ideas comes
from the top management.
At Company the first route is used continuously and is well implemented. The second route is
only partly applied. That means that most of the ideas come from the management and goes
down for implementation. The literature strongly recommends that using both of the routes
will help companies to have more high quality ideas coming from all possible sources.
From the interviews it was also found out that evaluation of generated ideas at Company is
done by answering the following question: Is there a market for it? Does it fit to the current
scope and business strategy? How easy is to do and what the risks are? Is it competing with
our customers?
The approach that the Company is following has very similar approach comparing to the
suggested method. However, the four questions are not officially documented into a
standardized evaluation process from where everyone involved in the company could follow
when evaluating the ideas
From the theoretical review, it was found that there are three assessments which should be
done before preparing for the development phase; preliminary market assessment,
preliminary technical assessment and preliminary financial assessment.
44
From the interview answers and study of the current product development plan it was
discovered that the three initial assessments are partially made when evaluating the ideas.
From the market prospective and management team have the necessary knowledge to make
the first preliminary assessments? However, considering the size of the company and the
unlimited group of customers, it would be more time and cost effective that the preliminary
studies are made at the same time with the full analysis conducted before the development
phase
It is also important to mention that the technical preliminary assessment is not necessary for
all products which Company will launch. The technical assessment will depend on the
product strategy. For instance, if Company decides to purchase and resell other companies
products as a tactical decision, the technical feasibility, manufacturing process and
intellectual properties are not studied. For biscuits which Company is designing and
developing, technical assessment shall be conducted.
From the interview was found that competitive products are analyzed during the process but
only from the physical description. Company´s philosophy is that all solutions offered should
be initialized from customer’s needs but student researcher still questions this answer?
The company strategy is to find solutions for customer problems and to improve existing
products; existing products are reviewed naturally when analyzing customer needs. The
company needs to know the solutions that customers are using and in most of cases these
solutions are competitive products. The company studies the existing solutions and adds
benefits and customer values.
From the theoretical point of view, Company is correctly fulfilling competitor study, and
there is no need for further improvements. The study has been adopted to fit to the company
strategy, but the concept is integrated and works fine. Patent search is another method, which
Company has been implementing. However considering the company size and resources
required in implementing this method would be advisable to keep in hold and also implement
this method in the future projects.
Building the business case is the last pre-development stage and, according to Robert Cooper
(2001), it is a very important stage on the product launch process. From the interviews, it was
45
confirmed that at the idea generation stage, Company conducts a user needs and wants study.
However such study is not documented and analyzed in depth on the further stages.
From the interview with the management the author found out that Company has already
built an efficient product-testing network. The issue on the testing practice in the company,
discovered during the interview was related to the market testing. Market testing is a new
practice, which the company has not applied directly when launching a new product. The new
product has been launched, using one strategy for all markets.
However, for being a new and innovative company at the same time brings several
advantages which will help the company in the positioning of the new products into the
market. For instance, all the products the Company has been offering so far have had several
benefits which are superior to other products. These benefits have helped Company products
to build their position as an innovative solution on the roll handling equipment market.
The marketing mix, together with the marketing strategy should be further analyzed
separately for each product in the process of creating the marketing plan. Taking into
consideration Company’s business strategy and the industry in which the company is
operating, each section of marketing mix will vary depending on the product and target
customers. For instance the distribution channels for existing products are both direct and
indirect distribution channel. In each case the decision will depend on the company’s
strategy. The same rule applies to pricing and promotion different products need different
strategy.
From the analysis was found out that trade shows and sales visits are the most common used
marking channels used by Company. These two channels have also been very successful in
attracting customers, partners and end-user attention. Firstly from the interviews with the
existing partners and customers it is confirmed that displaying Company’s products in an
exhibitions is the most effective way to attract the end users attention. From both interviews
was stated that exhibition is the best place to display such innovative products.
The research result from the existing marketing plan found out that print media has been
continuously active source of marketing. Print advertising have been present on Company’s
marketing plan. From the response collected for interview during the last year, print
advertisement has played a very important role on branding of Company. Several prospect
customers and end-users have immediately recognized the logo with the advertisement which
46
has been advertised on magazines. Such advertisements are not only important for creating
product awareness but also for strengthening Company ´s brand.
47
CHAPTER FIVE
5. SUMMARY, CONCLUSION, AND RECOMMENDATION

In this portion of the research study major findings will be summarized to get the whole
picture, conclusions will be drawn out of the findings and finally recommendations will be
given so as to take measures that might help to overcome the problems the company have in
developing new product and it may increase success of the company biscuit in the future.
5.1. Summary of the major finding
From the total of 239 respondents 168 are males whereas the rest 71 respondents are females.
Regarding the age structure of respondents 30.5 % are under the age category of 30 years old,
and 69.5 respondents lay above the age 31 and above. More than half of the respondents
know the company’s biscuit less than three years, this shows that most of the consumers are
new for the company.
Regarding the general over view of the new product 62.8% of respondents say it’s not easy
for them to differentiate the company biscuit form other biscuits. 224 respond they don’t
perceive the new biscuit of the company as new one. Almost 90% respondents negatively
respond for the question they asked whether new biscuit come with unique feature than others
in addition majority of the respondents believe that the company’s new biscuit in package
isnot easily disposable.108 (45.2 %) strongly agree and agree that there expectation much
with the new product performance.
Majority of the respondents 223(93.3 %) believe that the company biscuit design is poor and
few of them reply against the issue. (68.2 %) respondents have negative attitude toward
attractiveness of the biscuit number and size. only 22 (9.2 %) don’t need fasting biscuit.
Almost all Respondent that is 72 respond against and only 163 of them responded positively,
indicates that they are satisfy by taste of the biscuit also same respondents 60.3 % agree and
strongly agree the flavor of the biscuit fit their preference. Only 13 participants like the
crispiness of the biscuit but 204 respondents don’t like the crispiness of the biscuit. For the
question asked whether the biscuit is stylish or not 30 respondents agree that the biscuit is
stylish but 188 of them negatively respond.
48
For those factors affecting consumers preference majority of the respondents (70.7 %) have
negative attitude towards a package color, (16%) where neutral the rest of the respondents
have positive responded to the question. From 239 participants of this thesis majority of them
suggest that the package is easy to access. The mean value that is 3.8 close to 4 which
strengthen the data obtained that most of the respondents believe that the package is not
friendly with the environment.
In other way 183 respond that is 76.6 % argue that the biscuit brand logo is easy to recall and
they are good with it but only for 27(11.3 %) participants it’s hard to recall the company’s
biscuit name, Most of the respondents (213) have agreed that they will purchase the product
if the price stay as it is with similar issue41% of participants said if the company rise the
price in any rate the will pick competitors product from the shelf, 47.7% disagree on the issue
that even if the company increase the price from their selling price they stay loyal and keep
buying.
Again For total of 239 respondents majority of them 216 of the respondent that is 90.4% and
argue that company’s not use transit advertising, Again For total of 239 respondents only 68
of the respondent that is 28.4 % start purchase after they see the advertising of the biscuit
5.2. Conclusion
Based on student researcher finding male consumers purchase the company biscuit than
women consumers, also most of the respondents are under the age category of 31-42. MO-
YA Food complex S.C’s new biscuit don’t have any special feature to differentiate by
consumers or don’t have any additional attribute that make it special from competitor biscuits
and consumers can’t observe or not experience the new products superior value by
considering its unique feature the company adds to attract them. In addition By using the
theory in the past chapter new product must perceive by the consumer as new one but here
the data show that the MO-YA biscuit has something to convince consumers that the product
are new, hence one can conclude from this that the new products are new for the company not
for the world.
Even if the response is balanced and 108 respondents believe that the company biscuit match
with their expectation student researcher doesn’t take it as serious positive response because
majority of same respondents’ response negatively for other attributes. Student researcher
49
conclude that unless otherwise the company work hard on research and development to
produce innovative product package that is easily disposable it will have bad image on
potential consumers because now a day’s customers have a good knowledge about the effect
of plastic packages on environment.
Even if student researcher don’t have any religion issue raised for respondents but still can
conclude that from 239 respondents above 184 of them are orthodox because they have
serious interest on fasting biscuits, in Ethiopian orthodox religion followers Wednesday and
Friday are fasting days so as long as the company must offer them fasting biscuit with
different flavor to increase the sales volume of the current biscuit.
based on the finding one can conclude that, The Company produce its new biscuit with
considering consumer taste, design, number and size so that the company must keep going on
this factors. Flavor of biscuit is a key factor to make consumers satisfy and make them buy
the product frequently, Student researcher can conclude that the company must expands
different flavors with consumer’s interest.
From student researcher point of view the negative response for stylishness of the biscuit
comes not because the product is not stylish than competitors, the problem that the company
face is their target consumers are children’s, for them it may be stylish but for older peoples it
can’t be cause they can understand the real difference between MO-YA biscuit and other.
From the finding obtained one can clearly observe that color has huge influence on
customer’s psychology in point of purchase. The more attractive the color is the higher
probability on the product to be purchased. From this one can come up with the idea,
easiness of the package to access may encourage them to purchase the product and so as
customers will be motivate to purchase more of that brand. one can conclude that the
company should have to come up with new package that match with the environment because
more than half of respondents believe that the package is not friendly with the environment
and not comfortable to dispose it anywhere they want.
Student researcher can terminate that most of participants like the name of the biscuit and it’s
easy for them to recall and remember, in other word customers recognize the brand name and
50
not have that much complain on the logo and brand name. The greater awareness of the brand
increases the likelihood that consumers will consider it.
As it is obvious price is the most sensitive element, at least for most of the individuals,
consumers are willing to pay the current price but half of the consumers say if the company
rice the price in any rate they will pick competitors product from the shelf other reflect they
will stay. One can conclude from this that the respondents are nonaligned that means they are
between shifts or stay so it’s better for the company to stay as it is
Even if some consumers start purchasing the company’s new biscuit after the advertising but
still MO-YA Food complex S.C is weak in transit advertising.
5.3. Recommendation
As long as there is consistency among the respondents that they are somehow dissatisfied by
the size, design and crispiness of the new biscuit the company rather than fighting with
consumers to make them purchase the product it’s advisable to change this attributes of the
new product. This attributes of biscuit are key factors to make consumers satisfy and make
them buy the product frequently so that developing new biscuit by considering consumer
need and want is recommended.
Even if student researcher found that the company flavour is good but still the company
managers must put in mind that when increase the number of flavoured biscuits there is
negative correlation with easiness brand name and logo so that increase their effort by
considering this factors. so that student researcher recommends the company must increase
brand awareness because it’s crucial to differentiate their product from similar product and
competitors, higher rate of brand awareness equate to higher sales and further serve
competitive advantage that prevent competitors from gaining additional market share.
Student researcher also recommend the company should differentiate unlike biscuits with
special colour combination for example banana flavoured biscuit with yellow colours
package, strawberry flavour with red colour, orange flavour with orange colour, chocolate
flavour with brown colours package is seriously recommended.
By observing ingredients of competitors biscuits, cocktail by Brothers biscuit and Cheraliya

biscuits, Student researcher recommend the company to produce different flavoured fasting
biscuits to fulfil consumers desire by using different ingredients like cocktail fasting biscuit
51
comp up with ingredients wheat flour, RBD palm oil, refined sugar, inverted sugar, iodized
salt, leavening agent, dough improvers, emulsifiers, permitted food colour and flavours.
Even if respondents believe that the company biscuit match with their expectation student
researcher don’t take it as positive response and don’t suggest the company to go on with the
current product performance because majority of same respondents response negatively for
other attributes. From student researcher logical point of view the reason that their
expectation and the product performance match may comes from consumers have less
confidence on the company to produce better new product that can satisfy their higher
expectation, that means their past experience with the company product may make their
expectation in the bottom line. So student researcher seriously recommend as long as there is
positive correlation between consumers expectation and the other attributes the company
must work hard on this attributes and come up with superior new product performance that
can delight current consumers those who have less expectation about it and can use it as a
good opportunity because when product performance excides expectation its more than
satisfaction in other word it will be delight for consumers and increase their satisfaction level
easily.
Main source of new product idea comes from management suggestions, Student researcher
found that the reason why majority of respondents give negative feedback for this thesis
comes from all new products idea comes from the management without considering the
industry and consumers interest. With this intention student researcher recommend the
company must use other source of new product development such as Customers,
Competitors, Distributors, Creative techniques, External world, Research and development:
Create new product ideas through R&D but first MO-YA food complex S.C. must have well
organized R&D department.
Furthermore to the above reason why student researcher recommend stage gate new product
development model stage two and stage three conduct as sometime is during the preliminary
assessment the market prospects for the product is essential. Such assessment includes; the
potential of the product, market acceptance and the requirements for the product. As long as
the marketing research can answer competitors’ analysis and consumers need and want
student researcher can’t see the exact helpfulness of doing under concept testing that provide
52
the interest of the customer or end-user. Technical assessment is must in the next stage so
there is
Even if the company analyze competitors’ product physically but Student researcher
recommend that First, the company must analyses the existing products that do not fulfil the
customers need. If the company then assures that new solutions and add value for the
customers and fulfil their need at 100%. Secondly, the company must considering the
industry, company size and the type of products the company can offer for consumers. it is
strongly advised that an in-depth market analysis should be conducted before the product
goes to development. Once again the student researcher suggests that such analysis can made
during the first preliminary stages.
In addition Student researcher strongly recommended that the product launch should be
firstly tested in a smaller scale before going to total market. A market test will help to test the
marketing strategy and how attractive is the product to the customers or end-users. By
evaluating the theory suggestions and company’s long term ambition student researcher
strongly recommends a structured market testing must apply for future new product launches.
During launching stage the company can differentiate itself from its competitors and have
advantages in positioning its products, student researcher recommends further market mix
analysis separately for each new product must me accomplish well. As long as the company
tray to produce new product that is different from the existing biscuit. Market mix analysis
for one product may not be work for other product
Student researcher Recommend in the issue of promotion is its better for the company to uses
social media. The company must paying attention to continuously send the messages to the
customers by using the media advertising, transit advertising and social media such as
LinkedIn, Face book or Google+. Social media has been considered as very important online
media in today’s business when launching the new products. The potential customers may
also see social media as an important source of information cause this days social media
become part of day to day activity in Ethiopia, even it become headache for the government
cause it’s the fastest and easiest way to transfer opinion and information, it’s a shade light for
the company to use social media to communicate customers as long as most people’s are
addicted and can access it everywhere they go.
In other aspect of marketing mix Price is the most important factor which influences the
marketing. Price can be determined by several factors such as; product manufacturing cost,
market share, target customers, type of the product so student researcher recommend price
53
penetration strategy for the company because from the feedback gathered from final
consumers relatively they believe the price is fair but if the price increase in any rate they will
shift to other competitors’ product this implies target consumers are price sensitive
consumers so penetration strategy will make them to purchase and attract by the low price of
new product.
54
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APPENDIX A
St. Mary’s University

School of Graduates Study
Marketing Management Program
Questionnaire to be filled by MOYA Food Complex Final Consumers
This questionnaire is prepared by graduate student of St. Mary’s university in the
field of marketing management master’s program in fulfillment of a master’s thesis.
This study entails to assess the new product development practice of Moya food
complex. Biscuit and purely academic.
Therefore, you are selected to fill this questionnaire because student researcher has
full trust on you to get complete and real information that are required for this
research. Note that, the validity of your response has high contribution for success of
my study due to this reason I would like to ask with due respect to give the right
response. All information you provide to this study will be kept strictly confidential.
Thank you in advance for your cooperation.
Notice;
- It is not necessary to write your name.
- Please put a “  ” mark on the space provided.
I. Personal information
1. Gender: Male Female
2. Age
< 18 yrs19 – 30 31 – 42 More than 43

3. Education Background
Primary High School diploma/certificate first degree >Second degree
4. For how long have you been customer of Moya food complex?
A. Less than 1 yrs C. 4 – 5yrs
B. 2 – 3yrs D.6-7yrs E. more than 8yrs
60
II. Questions related to product development in Moya Food complex.
Rank the questions based on the following alternatives

Strongly agree = 1; agree = 2 ; Neutral = 3; disagree = 4: Strongly Disagree = 5
General NPD
Item Description 1 2 3 4 5
no.
1. I can easily differentiate the company’s biscuit from

competitors
2. I perceive the company’s new biscuit as a new one in market
3. Have you ever seen any unique feature in the biscuit related to
other similar products
4. the packaging is easily disposable
5. The company’s new product matches with my expectations
6 The biscuits design attract consumers
7 Number of biscuits inside one package attract me to prefer it

from others
8 Moya fasting biscuit is better than others to consume it on

fasting days
9 Moya biscuit taste is better than competitor biscuits
10 The company develops different flavors to satisfy consumers

need
11 crispiness of the biscuit makes it comfortable to eat
12 The new biscuit produced by Moya food complex consider

and attract all age category
61
13 Yellow color on the package of Moya biscuit attracts me to
pick it from the shelf
14 The company gives more quality product than competitors do
15 The company packaging is easy and comfortable to consume

the product than similar products in the market
16 Logo of Moya biscuit help me to differentiation the brand

easily
17 The company’s biscuit price is fair than competitors
18 Moya food complex create good transit advertising by using

the company transportation cars
19 Moya biscuit is easily available in any shop
20 The company use aggressive promotion to communicate with

consumer’s than competitor do
22. What suggestion you have for Moya food complex to improve in the next new
product?
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
-----------
23. Any different point you want to rise, that you think it’s helpful for the company
new product development.
62
Appendix B
St. Mary’s University
School of Business
Department of Marketing Management
Interview
Interview questions
1. Do you follow any product development model?

2. Where do the new product ideas come from and where should they be coming from?
3. How the company assesses and implements the new idea received?
4. Does the company employ assessments which should be done before preparing for
the development phase?
5. To what extent the Moya Food complex S.C study competitors and their products?
6. Does the company produce products those are based only on customer need and
market research?
7. Do you go to customer through face to face meetings or do you create concept
solutions internally, and then make market research to test the product concept?
8. What are the types of testing you are currently applying before and during the
launch of the new products?
9. To what extent the company works to match customer’s expectation with marketing
mix
63
Statistics
gender age education customer differentiate perceive feature
Valid 239 239 239 239 239 239 239

N
Missing 0 0 0 0 0 0 0
Mean 2.32 2.01 3.68 4.47 4.33
Std. Deviation 1.077 1.019 1.476 .864 .959
Variance 1.160 1.038 2.177 .746 .920
Statistics
disposable expectation design number fasting taste
Valid 239 239 239 239 239 239

N
Missing 0 0 0 0 0 0
Mean 4.19 2.95 4.74 3.88 4.00 4.46
Std. Deviation 1.190 1.699 .859 1.236 1.136 .737
Variance 1.417 2.888 .737 1.527 1.290 .543
Statistics
flavor crispiness attract color quality comfortable logo
Valid 239 239 239 239 239 239 239

N
Missing 0 0 0 0 0 0 0
Mean 4.32 4.23 4.13 4.00 2.23 3.80 1.90
Std. Deviation .804 .943 1.141 1.185 1.274 1.101 1.202
Variance .646 .890 1.301 1.403 1.623 1.212 1.444
Statistics
Fair price transit advertising shop aggressive
Valid 239 239 239 238

N
Missing 0 0 0 1
Mean 1.68 3.07 4.56 3.48
Std. Deviation 1.017 1.291 .833 1.506
Variance 1.034 1.668 .693 2.268
Correlations
differe perceive feature disposa expe design numbe fasting Taste flavo crispiness attract color quality comf
ntiate ble ctatio r r able
n
Pearson
1 .423** .512** .440** .635 .160** .723** .392** .248** .112 .309** .505** .281** .417** .030
Correlation
different
Sig. (2-
iate .000 .000 .000 .000 .013 .000 .000 .000 .085 .000 .000 .000 .000 .646
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
64
Pearson .156*
.423** 1 .297** .332** * .407 .385** .315** .274* .345** .126 .183** .144** .122* .171*
Correlation
perceive Sig. (2-
.000 .000 .000 .015 .000 .000 .000 .000 .000 .051 .005 .026 .059 .008
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
Pearson .387*
.512** .297** 1 .474** * .429** .495 .481** .321** .310** .307** .447 .229** .061** .222*
Correlation
feature Sig. (2-
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .346 .001
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
Pearson .279*
.440** .332** .474** 1 * .558** .467** .251 .196** .335** .380** .510** .513 .134** .296*
Correlation
disposab
Sig. (2-
le .000 .000 .000 .000 .000 .000 .000 .002 .000 .000 .000 .000 .038 .000
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
Pearson ** * ** ** ** * ** ** ** * ** **
.635 .156 .387 .279 1 .049 .577 .274 .418 .239 .232 .404 .278 .440 -.008
Correlation
expectati
Sig. (2-
on .000 .015 .000 .000 .453 .000 .000 .000 .000 .000 .000 .000 .000 .906
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
Pearson
.160* .407** .429** .558** .049* 1** .248** .268** .264 .362* .113** .361** .413** .027 .319*
Correlation
design Sig. (2-
.013 .000 .000 .000 .453 .000 .000 .000 .000 .081 .000 .000 .678 .000
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
Pearson .577*
.723** .385** .495** .467** * .248** 1** .279** .305** .204** .258** .432** .316** .306** .078*
Correlation
Number Sig. (2-
.000 .000 .000 .000 .000 .000 .000 .000 .002 .000 .000 .000 .000 .231
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
Pearson .274*
.392** .315** .481** .251** * .268** .279** 1** .344** .150** .242** .334** .103** .322** .310*
Correlation
Fasting Sig. (2-
.000 .000 .000 .000 .000 .000 .000 .000 .020 .000 .000 .112 .000 .000
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
Pearson ** ** ** ** .418* ** ** ** ** ** ** ** ** **
.248 .274 .321 .196 * .264 .305 .344 1 .470 .220 .327 .144 .228 .160*
Correlation
Taste Sig. (2-
.000 .000 .000 .002 .000 .000 .000 .000 .000 .001 .000 .026 .000 .013
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
Pearson
.112 .345** .310** .335** .239 .362** .204** .150** .470** 1 .176** .288** .313** -.047** .281
Correlation
Flavor Sig. (2-
.085 .000 .000 .000 .000 .000 .002 .020 .000 .006 .000 .000 .468 .000
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
Pearson .232*
.309** .126 .307** .380** * .113 .258** .242** .220** .176** 1 .331** .256** .159** .020*
Correlation
Crispine
Sig. (2-
ss .000 .051 .000 .000 .000 .081 .000 .000 .001 .006 .000 .000 .014 .763
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
Pearson .404*
.505** .183** .447** .510** * .361** .432** .334** .327** .288** .331** 1** .395** .285** .212*
Correlation
attract Sig. (2-
.000 .005 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .001
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
Pearson ** ** ** ** ** ** ** ** ** ** **
.281 .144 .229 .513 .278 .413 .316 .103 .144 .313 .256 .395 1 .167 .200
Correlation
color Sig. (2-
.000 .026 .000 .000 .000 .000 .000 .112 .026 .000 .000 .000 .010 .002
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
Pearson .440* -
quality .417** .122 .061** .134** * .027 .306** .322** .228* ** .159 .285** .167** 1* .099**
Correlation .047
65
Sig. (2-
.000 .059 .346 .038 .000 .678 .000 .000 .000 .468 .014 .000 .010 .127
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
-
Pearson
.030** .171** .222 .296** .008* .319** .078 .310** .160** .281** .020** .212 .200** .099** 1**
Correlation *
conforta
ble Sig. (2-
.646 .008 .001 .000 .906 .000 .231 .000 .013 .000 .763 .001 .002 .127
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
Pearson .189* -
.223** .058** .018** -.022 * -.184** .065** .222 -.048** ** -.065** .188** -.068 .449** .194**
Correlation .141
logo Sig. (2-
.001 .371 .782 .739 .003 .004 .315 .001 .463 .030 .316 .004 .296 .000 .003
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
Pearson ** * ** ** .163* * ** ** -
.264 .165 .157 .034 * -.022 .153 .278 .107 .098* .229 **
.049 **
.505 .085**
Correlation .033**
Fair
Sig. (2-
price .000 .011 .015 .600 .012 .731 .018 .000 .098 .607 .131 .000 .452 .000 .193
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
Pearson - -
.104* .303** .060** .208** .163** .016** .074** -.068 .060** .071** .099** .261 .128*
Correlation .303* .073*
transit Sig. (2-
.109 .000 .355 .001 .000 .011 .810 .253 .299 .260 .356 .275 .127 .000 .049
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
-
Pearson -
.167** .135** .174** .209** .099* .288** .127** .211** .016** .107** .200** .098** .160** .168**
Correlation * .228**
shop
Sig. (2-
.010 .037 .007 .001 .127 .000 .050 .001 .805 .000 .100 .002 .131 .013 .009
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
Pearson .267*
.400** .237** .030** .190** * .107** .254** .286** .146** .001** .074** .267** .260** .616** .020**
Correlation
aggrasiv
Sig. (2-
e .000 .000 .648 .003 .000 .098 .000 .000 .024 .982 .255 .000 .000 .000 .761
tailed)
N 239 239 239 239 239 239 239 239 239 239 239 239 239 239 239
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
66

Research On Moya Food Complex

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ST.

ASSESSMENT ON NEW PRODUCT DEVELOPMENT: THE CASE

IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE

IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE

ASSESSMENT ON NEW PRODUCT DEVELOPMENT: THE

APPROVED BY THE COMMITTEE OF EXAMINERS

INTERNAL EXAMINER SIGNATURE

EXTERNAL EXAMINER SIGNATURE

Figure 1:NPD model by Crawford and Benedetto (2008) ............................................................ 19

1.1. Background of the Study

1.2. Background of the Organization under Investigation.

1.3. Statement of the Problem

1.4. Research Questions

1. Does the company’s new product match with consumer’s expectation?

3. How the company’s solve the problem of new product failure?

4. How the company’s seek to improve its product?

1.5. Objective of the Study

1.5.1. General Objective

1.5.2. Specific Objective

 To investigate the extent to which company’s new product match with

 To identify challenges and prospect that the company face when

 To examine the company’s activity in improving its product.

1.6. Significance of the Study

1.7. Scope of the Study

1.8. Limitation of the Study

2. REVIEW OF RELATED LITERATURE

2.1. THEORETICAL FRAMEWORK

2.1.1. Attributes of Product

2.1.2. Importance of Product

2.1.3. New Product Development

2.1.4. Importance of Product Innovation

2.1.5. Type of New Product

2.1.6. Factor Influencing Product Development

2.1.7. New-Product Strategy

2.2.1. NPD Process and Model

2.2.2. NPD Marketing Mix

2.2.3. NPD Team

2.3. Conceptual Framework

2.3.1. New Product Development Processes

 Source of New Product Ideas

2.3.2. New Product Life Cycles Strategy

2.3.3. Buyer Decision Process for New Product

2.3.4. New Product Adoption and Diffusion

2.3.6. Factors Influencing the Adoption Process

2.3.7. Stages in Adoption Process

2.3.9. NPD models by Crawford and Benedetto

Figure 1:NPD model by Crawford and Benedetto (2008)

Figure 2: NPD model by Shepherd and Ahemd (2000)

2.3.11.Stage gate model by Cooper and Edgett

3.1. Research Approach

3.2. Research Design

3.3. Population, Sampling Technique and Sample Size

3.3.2. Sampling Technique

3.3.3. Sampling Size

Based on the recommendation provided by Yamane (1967), with respect to non-probability

3.4. Type of data Collected

3.5. Method of data Collection

3.6. Data Analysis Method

3.7. Validity and Reliability Test