ABSTRACT

 This research work centered on the effects of product innovation on organizational performance seven-up bottling company Aba plant was used as case study. They major problem that led the researcher in this area, is the issue behind consumers taste and preference that changes overtime and imposes a great threat to new product with the objective to find out whether firm's carefully monitors customers taste and preference before innovating product. A survey research method was adopted with a sample size of 171 drawn from total population of the company mention above. The researcher made use of three analytical tool (chi-square, regression and Test) for testing three (3) hypothesis in which the researcher found out that product innovation contributes to increase in sales, profitability and organizational performance. And that there is significant difference between cost and sales before and after product innovation, and recommended that before applying any innovation strategy on product, a firm should carefully monitor their customer's taste and preferences to avoid product failure to gain market acceptance. Also product innovation have effect on the price of the product, firm should take into consideration the price and quality of product that will be affordable to customers at profit.