Background of the Study
Product innovation is recognized as a key strategy for business growth and sustainability, particularly in the fast-moving consumer goods (FMCG) sector, where competition is fierce and consumer preferences are constantly evolving (Olorunfemi & Olowookere, 2024). In Nasarawa State, FMCG businesses face pressure from both local and national competitors to develop new products that meet changing consumer demands while remaining cost-effective and accessible. Product innovation, defined as the introduction of new or significantly improved products, can help businesses differentiate themselves in a crowded market, enhance brand loyalty, and drive sales growth (Adeleke & Olorunfemi, 2023). For FMCG businesses, which often deal with perishable goods and high volume production, product innovation can serve as a tool for sustaining competitive advantage and enhancing customer satisfaction.
The impact of product innovation on sales performance is multifaceted. While innovation can directly increase consumer demand, it also influences brand perception and can open up new markets. FMCG businesses that are slow to innovate risk losing their market share to more agile competitors who are quick to adapt to trends or technological advancements. The relationship between product innovation and sales performance has been studied widely in global markets, but there is a need for more focused research on how it plays out within the unique socio-economic and consumer contexts of Nasarawa State. This study seeks to critically analyze how product innovation influences sales performance within FMCG businesses operating in this region, and to identify the key factors that contribute to its success.
Statement of the Problem
The FMCG industry in Nasarawa State is highly competitive, with many businesses relying on traditional product lines to meet consumer demands. As consumer expectations evolve, the need for continuous product innovation becomes critical to maintaining relevance in the market. However, the impact of product innovation on sales performance in the local FMCG sector remains unclear. Many businesses invest significant resources in developing new products, yet some struggle to see a measurable improvement in sales performance. This study aims to examine the effectiveness of product innovation in boosting sales within FMCG businesses in Nasarawa State, highlighting the factors that enhance or hinder the success of innovation efforts.
Objectives of the Study
Research Questions
Research Hypotheses
Scope and Limitations of the Study
The study will focus on FMCG businesses in Nasarawa State that have introduced product innovations within the last three years. Limitations include potential biases in reporting by businesses regarding the success of their innovations, and the challenge of isolating the impact of product innovation from other factors that influence sales performance, such as marketing and distribution strategies.
Definitions of Terms