Management of new product development in selected food companies in Nigeria

New product development is virtually established as the most viable tool for long-term corporate growth if properly managed. This study was therefore designed to evaluate the planning and management of new food product development in the Nigerian food industry. Data were collected from 10 food companies in southwestern Nigeria using a questionnaire and interview schedule. The results of the analysis showed that these companies invested between zero and 2.5% of their annual turnover in research and development (R&D), with four of them investing less than 0.5%. Four of the companies use all seven phases (idea generation, screening of ideas, concept development and testing, development of marketing strategy, business analysis, product development and test marketing) of the new product development process. Nine of the companies developed new products through a multidisciplinary team of professionals, and the head of the R&D department in most cases had direct access to top management. Most of the innovations were incremental in nature. The implication of these findings is that food companies need to adequately fund R&D. They also need to be more active in all phases of the product development process in view of the inter-relatedness and interdependence in the activities involved. Adequate technical and production capability support should also be provided so as to remain innovative.