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Lecture 12 Food Product Development

This document outlines the key stages of food product development: 1. The need for new product development is driven by life cycles, competition, consumer needs, new technology, and regulation. 2. The product development process requires integrating marketing, research and development, processing, and legal functions through careful planning and teamwork. 3. The stages of product development include concept development, formulation, processing, testing, and marketing. Successful products have unique benefits, thorough planning, strong market orientation, and quality execution.

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724 views9 pages

Lecture 12 Food Product Development

This document outlines the key stages of food product development: 1. The need for new product development is driven by life cycles, competition, consumer needs, new technology, and regulation. 2. The product development process requires integrating marketing, research and development, processing, and legal functions through careful planning and teamwork. 3. The stages of product development include concept development, formulation, processing, testing, and marketing. Successful products have unique benefits, thorough planning, strong market orientation, and quality execution.

Uploaded by

V TH
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Food product development

School of Biotechnology
Department of Food Science and Technology
Ho Chi Minh International University

Outline
1. The need of product development
2. Product development
3. Product development stages
4. Factors common to successful
products
The need for new product development

Essential to the survival of a company


Life Cycles
Competition
Consumer/Customer Needs
New Technology
Government Regulation

Product development adds value in


several ways

PRODUCT
PRODUCTDEVELOPMENT
DEVELOPMENT

QUALTITY BRAND
GROWTH
GROWTH PRODUCTIVITY
PRODUCTIVITY IMPROVEMENT MAINTENANCE

• Line Extensions • Reduce Cost • Quality of Design • Conformance

• New Products • Formulas • Leveragable • Special Situations


Competitive • Regulatory
• New Packages • Packages Advantage
• Manufacturing • Environmental
Procedures •Specifications
FST650
Product Development
 Complex - generally market driven
 Requires the integration of marketing,
R&D, processing and legal functions
of a company
 Success only comes with careful
planning and execution
 Teamwork absolutely essential

FST650

Product development team

Marketing personnel Cost Accounting


Commercial expertise Personnel
Financial expertise

Product
Development
Scientists
Technical expertise

Production personnel Q.A Personnel


Operation expertise Food control expertise
Booz Allen Hamilton newness
map
Product Introductions
from
HIGH
11%
700 Firms
20%

Newness
to 26% 26%
Company

11% 7%

LOW
LOW Newness to Market HIGH
FST650

Scientific method in product


development
 Define a problem
◦ What new product are we trying to
create?
 Arrive at a hypothesis
◦ Formulation and processing
 Test the hypothesis
◦ Experiments and data collection
 Accept or reject the hypothesis based
on data analysis and interpretation of
the experiments
Product development
Conceptualization
Formulation
Processing
Testing
Marketing

Stages of product development


To avoid chaos, a hierarchy must exist
to guide product development
Company Mission Why Do We Exist?
Company Objective Where We Want to Go?

Company Strategy How Will We Get There?

Company Plans What Do We Do Now?


> Programs
> Product Development Projects
> Tasks

FST650

Idea stage
 Identify the idea, concept, problem or
challenge
 Concepts should be framed to
corporate objectives
 Inputs from food scientists, engineers,
marketing and management
individuals
Development stage
 Involved the design and nature of
products: composition, processing,
packaging, marketing
◦ Bench-top product prototype

Commercial stage
 Scale-up from pilot plant to commercial
plant
Manufacturing and operations personnel
 Market testing
◦ Test market
◦ Feedbacks from consumers (survey, phone)
 Market research
◦ Organized inquiry to identify and measure factors
influencing consumer marketplace decision
making regarding new product
Factors Common to Successful
New Products
 Unique and superior product
 Homework done prior to start of
development
 Early product definition
 Strong market orientation
 Quality execution of marketing,
technological and production activities

FST650

What are the Issues?


 Overhalf of all new
products fail
◦ Food: IRI Study of 608 introductions
 52% fail
 48% success
◦ All Industries:
 New products 46% fail
 54% success

Source: IRI New product trends 2000. Robert Cooper 2003


Both major and minor intros launched between 10/96 and 10/98 (looking at 2 years post
introduction) in 20 categories. Major: New brand or extension into new segment. Minor:
form/ flavor extension (not size change).
FST650
General Reasons for New Product Failure

% Citing Reasons for Failure

 45% Marketing Analysis


 30% Product Problems or Defects
 25% Marketing Efforts not Enough
 18% Higher Costs than Expected
 17% Competitive Strength or Reaction
 15% Poor Timing of Introduction
 11% Technical or Production Problems
 22% All Other

Inadequate
Communications!!!
Source: Robert Cooper 2003

FST650

Supplemental materials
 http://class.fst.ohio-state.edu/fst650/650%20Lecture%20Notes.htm
 http://www.cas.psu.edu/docs/casover/aefs497/main.html

 http://www.ift.org/Knowledge-Center/Learn-About-Food-
Science/K12-Outreach/Video-and-Media/From-Concept-to-
Consumer.aspx
 http://www.nzifst.org.nz/creatingnewfoods/index.htm

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