Chap 8: Product Development of Foods Flashcards
Product development (is a)
process by which new food product ideas are generated, and products are developed and marketed
Food companies generate new products at an amazing pace in an effort to …
- retain retail shelf space
- retain share of consumer’s food $$$
(Factors) Driving Forces Behind NFPD (Demand)
1) Greater convince
2) Healthier/Safer products
3) Special dietary considerations
4) Product variety/features
(Factors) Driving Forces Behind NFPD (Supply)
1) Capacity to handle more products
2) Capacity to manage categories
3) Responsive to even slight changes in consumer preferences through
- innovations
- category management
- customer loyalty programs
The success rate of products on a shelf for more than a year
4 %
Increase Focus on NFPD (4 reasons)
1) Changes in retail environment
2) Intense competition between food manufacturers
3) Shorter product life cycles
4) Science and Technology
Degree of newness
- Product not previously produced by the company but exist in the market
- Product presented to a new market
- Totally new to the marketplace
Categories of new products (range) 6
1) Line extensions
2) Repositioned existing products (New form)
3) Reformulation of existing products
4) “Me Too” products
5) New packaging of existing products
6) Innovative/Creative products
6 reasons for reformulation
1) Raw materials (limited/unavailable)
2) Cheaper competition product
3) Improved Stability
4) Enhance functionality
5) Refined texture
6) Value added product - highly desirable reformulation
Moderately innovative
new lines to the company or item not new to the market
Cross Functional Team
Technical
Marketing
Financial
Production
Quality assurance
Steps to product development process (nutshell)
Idea —> Development —-> Commercial
The 5 Ds
Decide
Discover
Define
Develop
Deploy
TTR : Idea
Articulation of a potential problem
TTR: Concept
Solution for solving the potential problem
