Product Innovation and Market Share Growth: Evidence from Consumer Goods Firms in Lagos State

This research examines the relationship between product innovation activities and market share growth among consumer goods firms operating in Lagos State, Nigeria's South West commercial centre. The consumer goods sector in Nigeria is characterised by intense competition, evolving consumer preferences, and increasing penetration of imported products, making product innovation a critical competitive strategy. This study employs a descriptive survey design, with data obtained from 100 product managers and marketing directors across fifteen consumer goods companies. A validated questionnaire was the primary data collection tool, with analysis performed using descriptive statistics and regression analysis. The study evaluates four innovation dimensions: new product development frequency, product improvement investments, packaging innovation, and product line extension strategies, relating each to market share growth metrics. Results indicate that new product development frequency and product improvement investments are the strongest predictors of market share growth, particularly in fast-moving consumer goods categories. Packaging innovation emerged as an increasingly significant differentiator, especially among price-sensitive consumer segments. The study also identifies resource availability, management innovation culture, and consumer insight capabilities as critical internal drivers of successful product innovation. Recommendations include establishing dedicated innovation units, investing in consumer research capabilities, and developing structured new product development processes. Keywords: product innovation, market share, consumer goods, Lagos State, competitive strategy.