The Effect Of Product Innovation On New Product Adoption A Case Study Of Britannia Industries

ABSTRACT

The purpose of the study was to establish the relationship between innovation and product

adoption at Britannia Industries. The study was guided by three specific objectives and these

included; to establish the various product innovation strategies used by Britannia Industries, to

establish the factors affecting new product adoption at Britannia industries and to establish the

relationship between product innovation and new product adoption. The study applied both

qualitative and quantitative procedures of data collection and analysis and a sample size of 70

respondents was used. The study employed in-depth interview guide and questionnaires in data

collection. From the study, various product Innovation Strategies used by Britannia Industries

Uganda Ltd 25(36%) of the respondents said that the company uses Use of company logos and

trade marks,l0(14%) of the respondents said that the company Use of company slogans while

35(50%) of the respondents said that the company Usc of quality product standards. 50(71 %) of

the respondents said Yes while the minority 20(29%) of the respondents said No to the same

question. On the Factors affecting new product adoption other than innovation, 65(93%) of the

respondents said yes to the question whether there are factors affecting business performance

other than innovation in Britannia Industries Uganda while the minority 5(7%,) of the

respondents said No to the same question. 12( 17%) of the respondents mentioned relative

advantage. 20(29%) of the respondents mentioned compatibility.30(43%) of the respondents

mentioned complexity, 5(7%) of the respondents mentioned triability while 3(4%) mentioned

observerbility. From the study findings, there is a strong negative relationship between

innovation and new product adoption at regression (r) = -0.702 and at level of signiflcance 0.05,

this implies that the higher the poor offlce environment the lower the motivation of workers. The

study concluded that From the findings of the study, the researcher feels that there should be

improvement in respect of the following areas. In order to reap the full benefits of Innovation,

strategic managers, marketing managers and other stake holders must assemble, discuss and

understand Innovation strategies, disseminates commonly agreed procedures of publishing the

impOiiance and the need as people still lack awareness on the operation and accessibility of their

products. Monitoring of performance of innovation this can be done by developing performance

tool.