This research examined The Effect Of Product Planning And Development In The Growth Of Organisation with special reference to Smithkline Glaxo Nigeria Plc. The research adopted survey research design. Data were gathered through primary source with the aid of a well-structured questionnaire. Simple random sampling technique was adopted in the selection of sample, this was used to eliminate biasness in the selection process of the respondents.

Data garnered were presented on table using percentage and the formulated hypotheses were analysed with the used of Chi-square statistical method. The result of the analysis shows that appropriate product planning and development have helped in the achievement of corporate objective, The increase in the market share of an organization’s product was Due to an effective product planning and development, Proper product planning and development has helped to Prevent a heavy unbearable loss to the firm, appropriate product planning and development has helped positively in the achievement of profitable sales operation in an organization.

Based on the conclusion of the analysis recommendations were proffered to the staff and management of Smithkline Glaxo Nigeria Plc.




Title page                                                                                 1

Abstract                                                                                   2

Table of content                                                                        3



1.1       Introduction                                                                     5

1.2       Statement of the problem                                                 6

1.3       Research question                                                            7

1.4       Aim and Objectives of the study                                        7

1.5       Significance of the Study                                                  8

1.6       Research Hypotheses                                                       8

1.7       The Scope and Limitation of the Study                             10

1.8       Definition of Terms                                                           10

1.9       Historical Background of Smithkine Glaxo Nigeria Plc      13



2.1       Introduction                                                                     16

2.2       What is Marketing?                                                          16

2.3       The Marketing Concept                                                    17

2.4       What is a Product?                                                           20

2.5       Classification of a Product                                                23

2.6       The Meaning of New Product                                            24

2.7       New Product Dilemma                                                      25

2.8       New Product Development Concerpt                                 25



3.0       Research Procedure/Source of Data                                 37

3.1       Research Design                                                              37

3.2       Methods of Data Collection                                               38

3.3       Population Size                                                                38

3.4       Description of Research Instrument                                 38

3.5       Questionnaire Distribution and Collection Instructions    39

3.6       Data Analyst Method and Coding Procedure                     39

3.7       Question Design                                                               40

3.8       Reliability of the Data                                                      41



4.0   Data Presentation and Analysis                                        42

4.1       Presentation of Data                                                         42

4.2       Data Analysis and Interpretation                                      43

4.3       Test of Hypothesis                                                            50



5.1       Summary                                                                         63

5.2       Recommendation                                                             64

5.3       Conclusions                                                                     64

Bibliography                                                                    67

Questionnaire                                                                  69








Thus, it is a common saying “failure to plan is planning to fail”. There is nothing on earth that does not need appropriate planning. If such thing determined goal must be achieved. Appropriate planning is one of the most important aspects of a product life cycle.  As it is proper for somebody who intends to build a house, to draw a plan of the house whether such building will be a two bedroom flat or bungalow or a multirooms type.  He has to decide within himself and also make a rough sketch of the total cost of every thing for such a house. As such, it is quite very important for an organization intending to develop a product to make a necessary and adequate planning for such product.


Considering the multi-dimensional nature of consumers demand, it is therefore an essential for an organization to carry out all necessary pre-product development before introducing a new product to the market and determine the appropriate time to supply the product so as to regulate the product in the market.


Examining the intense competition in must industries today. Companies without new product ideas and new product development strategies are exposed to great risk of new product or existing product decline by way its product lifecycle and the outright closure.


The success of new products is always constraints by the following factors:

  1. Shortage of important new products ideas in certain area.
  2. Capital of a new products development
  3. Time span completion
  4. Social and Governmental constraints
  5. Cost implication of a new products development


The scope of appropriate product planning and development includes making decision in the following area: -


A      Which product should the company produce?

B.     Should the company market more or fewer product?

C.     What brand, package and label should be used for each   product?

D.     How should the product be style, design and in what sizes, colors and materials should it be produced?

-   What new users are there for each product?

-   How should the product be priced?




The purpose of this research is on the effect of product planning and development in the growth of an organization. The research is to:

  1. Determine the importance of appropriate product planning in the market and the product constraint for failure to plan product before introduced into the market.
  2. Establish the stages a product has to pass through before such product is developed and introduced into the competitive market for consumer’s patronage.
  3. Find out the approaches SmithKline Glaxo Nigeria Plc uses for its product planning functions and to ascertain the associates cost and strategies such approaches.
  4. Reveal the reasons some products were unable to thrive in the market and thus to Achieve the pre-determined goal of the product manufacture i.e. profit
  5. Determine the range of products manufactured by SmithKline Glaxo Nigeria PLC and to know the level of market acceptance of their products.



  1. The aim of this project is to examine the reasons why some company’s products do not last longer in the market, while in the midst of other similar products, which exist in a stiff competitive market.
  2. To examine the various marketing strategies currently been used by the various pharmaceutical companies for the new products.
  3. To analyze the extent of effectiveness of these strategies in terms of consumers satisfaction and patronage.
  4. To evolve and effective marketing strategy for the new product that will ensure increase patronage.
  5. To analyze problems encountered by marketers.



a)           What is the degree of difficulties the company is likely to face in an attempt to ensure a continuous innovation as a means of preventing products absence from market and the invention of new products line?

b)           Is the company able to determine the income of the Nigeria consumer so as to increase the rate and the market acceptance of new products?

c)           To what extent can the company generate sufficient data necessary for the effective appropriate product planning and development process in order to enhance its feasibility and profitability?



Hypothesis can be defined as a tentative statement about the relationship that exists between two or more variables and such statement are conjectured that must be validated.


There are two types of hypothesis, which are null hypothesis and alternative hypothesis.


The null hypothesis, which is null hypothesis, is denoted by (Ho) while the alternative hypothesis is denoted by (Hi).The alternative hypothesis is accepted while the null hypothesis indicates rejected.


The research hypothesis is thus:

1.     Ho:   Appropriate product planning and development        have not         helped in the achievement of corporate     objective

Hi:    Appropriate product planning and development                have helped in the achievement of corporate     objective


2.    Ho:   The increase in the market share of an     organization’s   product was not due to an effective        product and planning and development.

H:    The increase in the market share of an     organization’s   product was Due to an effective     product planning and development


3.       Ho:  Proper product planning and development has not                    helped to prevent a heavy unbearable loss to the                        firm.

           Hi:  Proper product planning and development has                          helped to Prevent a heavy unbearable loss to the                        firm.


4.      Ho:  Appropriate product planning and development has                 not helped positively in the achievement of                             profitable sales operations in an organization.

          Hi   Appropriate product planning and development has                  helped positively in the achievement of profitable                      sales operation in an organization.



  1. The study is to determine the degree of the difficulties the company is likely to face in an attempt to ensure a continuous innovation as a means of preventing products absence and the invention of a new product line.


  1. The study is meant to provide effective and appropriate product planning and development process in order to enhance its feasibility and profitability.


  1. The study is to find out whether the company is able to determine the income of the consumer so as to increase the rate and the market acceptance of new products.




This study is subject to the following limitations


(a) The study was limited to sample of pharmaceutical companies only in Lagos. These basically were pharmaceutical companies that developed new products with headquarters in Lagos.


b.     There is inadequate finance to embark in gathering primary date for this research work. So it is restricted on some few pharmaceutical companies.

(c) The time available for completion of this study was very short in carrying out and receiving information in writing of this project.



( I ) ORGANIZATION: - Organization can be defined as an entity comprising of human and non human resources with a distinct purpose the form of goal or set of goals.


Alternatively, organization can also be defined as those activities directed at organizing i.e. organization is the outgrowth of organizing which is the process of arranging the organization resources into the best possible relationship so as to accomplish the objectives of the organization.


(ii) PRODUCT DEVELOPMENT: - Product development is the creation adjusted of goods and services to satisfy consumers demand.


(iii). PLACE OR CHANNEL OF DISTRIBUTION: - This is a set of institution, which participates, in the marketing activities undertaken in the movement of goods and services from point of production to point of consumption. In a nutshell, price under marketing mix may be defined as a point of interaction between the buyer and services where production are being offered for sale for consumption


(iv). PRICE: - Price can be defined as the monetary value or consideration that a seller placed on a product and at the same time, what the buyer is ready to part away with for a given product over a specific period.


From product attributes, the following should be given adequate attention:


a)       PRODUCT DIFFERENTIATION: The uniqueness of a product determines the profitability of that product in a competitive marketing environment.


This usually leads to freedom in pricing and large production profit. The demand curve for such product is in elastic in that the price and total revenues moves in the same direction.


b)           PATENTIABILITY: This is the most essential features of product development because it is the degree to which the product can be protected by patent laws. This is very important because new product development can be circumvented by developing new materials and processes through modern production and operation technology.

c)           SIZE AND PACKAGING: Adequate attention should be place on the size and packaging of product provides because it is also a determinant to the success or failure of a product, packing provides the customer necessary information about the product they purchased.


d)          QUALITY: The quality of product says a lot about the reputation of an organization. Thus, the level of product quality is always the decision of the top manager.

e)           COLOUR: This is one of the important attributes of a product because consumers nowadays place more emphasis on the colour of a product.


f)            PRODUCT KNOW-HOW: This is in regards to the production facilities, well trained labour force and even high research and development investment in producing height quality goods and services efficiently with respect to cost.


g)           STYLE: The styles of producing a product do changes because of the aesthetics and artistic expression in a product. Thus, it should be given adequate attention and an ephemeral product style should not be adopted by the company.

h)          BRANDING: The product should be given a design or symbol that will differentiate it from similar one in the market.




Smith Kline Glaxo formerly SmithKline Beechem: is a foreign company that has been in existence since one and half century age. It is a company, which has it’s headquarter at United Kingdom (UK). SmithKline Glaxo is a company owned by Thomas Beechem.


A research was carried out in united state of American after twenty years. The result of the research led to the establishment by Glaxo, it subsidiary in Washington D.C in the middle of nineteenth century. By 1958 SmithKline was operating in both United Kingdom and the United States of American and it developed from strength to strength in terms of sales, Profit making and market coverage compared to what the situation was like prior to its establishment in the United States (US). In the late nineteenth century, Glaxo has also extended its tentacle to Germany. Belgium and Italy.


SmithKline Glaxo came to Nigeria in different ways, before its incorporation, it engaged in the direct important of some products to Nigeria. In doing that, it employed the services of some agents who sold its product on its behalf. The immediate acceptance and the increase in its sales made SmithKline to set in motion, the machinery of establishing Beechem in Nigeria. Eventually, the registrar of companies in Nigeria



The staff structure of Glaxo Nigeria PLC reveals that, it is a line staff organization. The top most head of the company is the board of directors (BOD). The board of director is then followed by the managing director who has a line relationship with other managing managers, which include: the marketing directors, finance & accounts directors, and plant manager. Personnel manager, procurement manager, research manager and other staff. This combination of line staff organization show that each officer on the horizontal line is directly responsible to the managing director of the company while he is responsible to the board of directors.


Moreover, the line staff organization structure run by Glaxo Nigeria PLC gives room for interaction between one management officer / workers to another. It can also enhance and the use of specialist.