Concept of Food Product Development

Question 1

what are 3 definitions/factors of a new food product?

Answer 1

product has not been presented in the local marketplace

product has not been manufactured by a company

product has not been introduced in any market place

Question 2

a new product may be…. (3)

Answer 2

1. an already existing product that has been repacked and given a new name + image
2. an improved version of an old product with new packaging/brand
3. a completely new product that serves an unmet need of the consumer

Question 3

what are types of new food products?

Answer 3

• line extension prdt
• repositioned existing prdt
• new form or size of existing prdt
• reformulated existing prdt
• innovative prdt
• added value prdt
• creative prdt

Question 4

what is a prdt line extension?

Answer 4

consists of using an established product’s brand name for a new item under the same prdt cat

Question 5

repositioning a food prdt is….

Answer 5

a marketing strategy that may give a new life to an existing food prdt

Question 6

what are 3 methods of repositioning a food prdt?

Answer 6

repositioning. …
1. among existing consumers
2. among new users
3. for new uses

Question 7

what are general characteristics of repositioned existing prdts?

Answer 7

• R&D time is minimal
• manufacturing is unaffected
• no major equipment purchases
• marketing must develop new strategies to capitalized on new market niche
• prdts require re-evaluation to reach and make sales within the new marketplaces

Question 8

describe characteristics of a food prdt in a new size or form

Answer 8

• requires R&D time
• high impact on physical plant and manufacturing capabilities
• major equipment purchase may be required
• marketing must develop new strategies to capitalize on new/existing market niche
• sales resources need reprogramming

Question 9

what is an example of new form or size of existing products?

Answer 9

instant coffees
dehydrated spice blends
fast cooking products (eg. rice and oats)

Question 10

what are reasons that reformulation may be required?

Answer 10

• improvements (better color, less fat, greater stability)
• overcome scarcity in availability of a raw material
• lower costs and compete with competitor prdts
• explore improved characteristics and properties of new ingredients
• regulatory agencies alter legal position of an ingredient
• create new market niche of an existing prdt
• satisfy consumer demands

Question 11

what are examples of reformulated of products?

Answer 11

• low cal products
• “greener” products (organic)
• hooter, spicier, crunchier, soother products
• lactose free
• functional foods

Question 12

what are characteristics of reformulated prdts?

Answer 12

• moderate to extensive R&D
• high probability of success
• little impact on physical facilitie
• little impact on marketing and sales (unless reformulation leads to repositioning of food prdt)

Question 13

what are characteristics of new packaging of existing products?

Answer 13

• extent of repackaging determins amount of R&D needed
• slight impact on physical facilities (unless reformulation is required)
• new packagin equipment
• little impact on marketing, sales, distribution

Question 14

what are innovative food prdts?

Answer 14

ones resulting from making changes in existing products

Question 15

what are characteristics of innovative products?

Answer 15

• v high risk associated with the development
• R&D depends on nature of innovation
• highly variable impact on manufacturing capabilities
• possibly heavy impact on marketing and sales resources

Question 16

a creative food product is…

Answer 16

one newly brought into existence

“never before seen products”

Question 17

what are characteristics of creative food products?

Answer 17

• high need for R&D
• costly venture
• new plant and equipment needed depending on degree of creativity
• high risk of failure

Question 18

define added value

Answer 18

difference between a product’s selling price and the direct and indirect input used in making that particular product

Question 19

what are ways to add value to food products?

Answer 19

• improving stability
• improving functionality
• using better natural colorants
• promoting better texture
• more convenience

Question 20

each added value introduces the need for more ____?

Answer 20

advanced technologies

Question 21

define a customer and consumer

Answer 21

customer: the one who purchases and buys in marketplace
consumer: ultimate user of the product

Question 22

what are examples of customers?

Answer 22

• family members
• purchasing department of companies and stores
• chefs in a restaurant

Question 23

define a market and marketplace

Answer 23

market: concept that describes a need discovered in customers and consumers

(market = consumers)

marketplace: real physical entities ranging from farmer’s roadside stands to the big food stores

Question 24

define the X axis in FPD complexity matrix

Answer 24

X: technical complexity
Y: marketplace complexity
Z: consumer complexity

Question 25

the measure of marketplace complexity may include what variables?

Answer 25

- warehousing, distribution, retailing activities - competition - new legislation and regulations or marketing customs - economy of the country

Question 26

what are 5 reasons to go into FPD?

Answer 26

- product life cycles - corporate health: new food prdts allow a growth and help to satisfy management's long term business goals - market and marketplace: are continuously changing - tech pressures: new tech make it easier to develop new prdts - governmental influences: changes in government's legislation and health programs could require development of new prdts

Question 27

define the product life cycle

Answer 27

a measurement used to assess the success of failure of a new prdt

Question 28

what determines the timing when a new food prdt should be introduced in the market?

Answer 28

prdt life cycle

Question 29

what are the 5 phases of the food prdt life cycle?

Answer 29

1. intro period 2. strong growth period (public awareness increases) 3. decline in growth 4. period of stability (no-growth) 5. beginning decline in volume

Question 30

what should a company do to maintain a healthy net profit?

Answer 30

having new products at various stages of development

Question 31

what determines the timing of when a new prdt should be introduced?

Answer 31

depends on the evolution of the market and the existing prdts

Question 32

a company's strategic business plan describes what?

Answer 32

specific financial and growth objectives

Question 33

what are the 4 different growth strategies?

Answer 33

1. market penetration 2. market development or extension 3. diversification 4. developing new food prdts

Question 34

what are the 2 types of business strategies?

Answer 34

offensive and defensive

Question 35

without a market, there will be no ___

Answer 35

sales; the product is worthless

Question 36

what are factors that cause the change in the consumer patterns and needs?

Answer 36

- population movement and ethnic diversity - demographic shift - aging population - changing family composition and consumer lifestyles - consumer priorities (convenience, health, prices)

Question 37

what are 4 factors involved in the success of a new food prdt?

Answer 37

1. marketplace success 2. financial success 3. production success 4. consumer/customer success

Question 38

define financial successes

Answer 38

refers to the profits and return on investments eg. how the product changes are affecting profitability and the financial performance

Question 39

define marketplace success

Answer 39

refers to the achievement of target sales volumes and revenues

Question 40

how is production success assessed? what factors does it involve?

Answer 40

assessed by quality, quantity and costs involves - stability and safety of prdts - production costs - production yield - distribution losses and returns from retailers

Question 41

define production yield

Answer 41

ratio of product output to raw material input

Question 42

how is the consumer or customer success measured?

Answer 42

by the level of acceptance and by the position of the new product against competing products

Question 43

how is product success measured?

Answer 43

- how quickly it is purchased - how often it is purchased - how much is purchased

Question 44

how is product and customer success measured

Answer 44

- how much it has achieved uniqueness to the consumer - how much it has satisfied the consumer needs - how much value it is to the consumer

Question 45

what are examples of reasons for prdt failure

Answer 45

- lack of strategic focus - limited understanding of the market - lack of financial resources - focus on short-term profitability - poor prdt quality - limited creativity

Question 46

what are 4 main reasons for failures of new food prdts?

Answer 46

1. poor planning 2. poor management 3. poor concept 4. poor execution/performance

Question 47

what are examples of poor planing resulting in failures of new prdts?

Answer 47

- prdt does not fit company's strategy, competencies, distribution - failure to analyze the market properly - failure to understand potential impacts of regulations

Question 48

what are examples of poor management resulting in failures of new prdts?

Answer 48

- poor decision making about which projects are funded or not

Question 49

what are examples of poor concept, resulting in failures of new prdts?

Answer 49

- repeated products from ones that are already available - prdt with no real defined market target - prdt with little significant consumer benefit - prdt introduced at the wrong time and place - prdt that lacks appropriate positioning among other brands

Question 50

what are examples of poor execution/performance, resulting in failures of new prdts?

Answer 50

- poor design - prdts don't work as expected - scaling up from kitchen to pilot plant having difficulties - failure to execute sales plan and achieve targeted levels of distribution - failure to communicate clearly to reach target consumer

Question 51

what are 5 organizational structures of a product dev team?

Answer 51

1. centralized 2. de-centralized 3. dotted line 4. matrix 5. venture teams

Question 52

describe a A) centralized structure of a FPD team B) de-centralized structure of a FPD team

Answer 52

A) - there is a FPD committee, where each member has a different role in the company - each time they get together, there are different members - no project focus B) - the same department would work on a specific project - same team members each time