Development of a Competitive Intelligence Framework for Product Innovation in fast-Moving Consumer Goods Manufacturing Companies

Abstract

The major purpose of the study was to identify the competitive intelligence that are typically required to support the various phases of the product innovation process and use the baseline data to develop a Competitive Intelligence Framework for Product Innovation (CIFPI). Seven specific purposes were developed in line with the major purpose of the study. Research and Development (R&D) design was adopted for the study. The study answered seven research questions and testedfournull hypotheses at point 0.05 level of significance. The population for the study consisted of 218 R&D and Marketing Managers of 102fast-moving consumer goods (FMCG) manufacturing companies in Lagos registered with Manufacturers Association of Nigeria. The questionnaire was structured on a five-point rating scale and was validated by five experts. Their suggestions were incorporated to improve the instrument. Cronbach alpha reliability coefficient of 0.97 was obtained for the entire items in the instrument. A total of 168 of the 218 copies of the questionnaire administered were retrieved, representing about 77% retrieval. The data collected were analysed using frequency and mean for answering the seven research questions while t-test statistic and Analysis of Variance were used in testing the four hypotheses at 0.05 level of significance. The results obtained were used to develop a draft CIFPI, which was validated by 5 experts in innovation and strategy. The feedback from the experts was used to revise the CIFPI. It was found thatthe competitive intelligence (CI) required in idea generation were gaps in existing products and innovations in technology among others. It was also found that the CI required in product design and development were changes in customer needs and stakeholder requirements as well as suitable suppliers and their financial capacity to keep pace with supply expectations among others. The study also found that educational background was a source of difference in the perspectives of respondents concerning thecompetitive intelligence required for concept screening as managers without business/management training were more conservative in agreeing that the competitive intelligence identified for concept screening were truly required. It was concluded that in order to develop successful new products and remain relevant in the global FMCG market space, FMCG manufacturing companies in Nigeria need to continuously monitor and analyse key external influences including customers’ needs and expectations; competitors’ activities and plans; stakeholder concerns; supportiveness of external infrastructure and related industries; and capacity of suppliers, distributors and other technical partners.It was recommended that FMCG manufacturing companies use the CIFPI as a guide to obtain the intelligence they require to support decisions and strategies about product innovation. It was also recommended that officials of ministries involved in anchoring and sponsoring innovation projects should follow the CIFPI, particularly the screening sections, to determine the viability of projects presented to them in order to avoid further waste of resources on non-viable businesses.