Concept of Food Product Development Flashcards
what are 3 definitions/factors of a new food product?
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
a new product may be…. (3)
- an already existing product that has been repacked and given a new name + image
- an improved version of an old product with new packaging/brand
- a completely new product that serves an unmet need of the consumer
what are types of new food products?
- line extension prdt
- repositioned existing prdt
- new form or size of existing prdt
- reformulated existing prdt
- innovative prdt
- added value prdt
- creative prdt
what is a prdt line extension?
consists of using an established product’s brand name for a new item under the same prdt cat
repositioning a food prdt is….
a marketing strategy that may give a new life to an existing food prdt
what are 3 methods of repositioning a food prdt?
repositioning. …
1. among existing consumers
2. among new users
3. for new uses
what are general characteristics of repositioned existing prdts?
- 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
describe characteristics of a food prdt in a new size or form
- 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
what is an example of new form or size of existing products?
instant coffees
dehydrated spice blends
fast cooking products (eg. rice and oats)
what are reasons that reformulation may be required?
- 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
what are examples of reformulated of products?
- low cal products
- “greener” products (organic)
- hooter, spicier, crunchier, soother products
- lactose free
- functional foods
what are characteristics of reformulated prdts?
- 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)
what are characteristics of new packaging of existing products?
- 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
what are innovative food prdts?
ones resulting from making changes in existing products
what are characteristics of innovative products?
- 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
a creative food product is…
one newly brought into existence
“never before seen products”
what are characteristics of creative food products?
- high need for R&D
- costly venture
- new plant and equipment needed depending on degree of creativity
- high risk of failure
define added value
difference between a product’s selling price and the direct and indirect input used in making that particular product
what are ways to add value to food products?
- improving stability
- improving functionality
- using better natural colorants
- promoting better texture
- more convenience
each added value introduces the need for more ____?
advanced technologies
define a customer and consumer
customer: the one who purchases and buys in marketplace
consumer: ultimate user of the product
what are examples of customers?
- family members
- purchasing department of companies and stores
- chefs in a restaurant
define a market and marketplace
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
define the X axis in FPD complexity matrix
X: technical complexity
Y: marketplace complexity
Z: consumer complexity
the measure of marketplace complexity may include what variables?
- warehousing, distribution, retailing activities
- competition
- new legislation and regulations or marketing customs
- economy of the country
what are 5 reasons to go into FPD?
- 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
define the product life cycle
a measurement used to assess the success of failure of a new prdt
what determines the timing when a new food prdt should be introduced in the market?
prdt life cycle
what are the 5 phases of the food prdt life cycle?
- intro period
- strong growth period (public awareness increases)
- decline in growth
- period of stability (no-growth)
- beginning decline in volume
what should a company do to maintain a healthy net profit?
having new products at various stages of development
what determines the timing of when a new prdt should be introduced?
depends on the evolution of the market and the existing prdts
a company’s strategic business plan describes what?
specific financial and growth objectives
what are the 4 different growth strategies?
- market penetration
- market development or extension
- diversification
- developing new food prdts
what are the 2 types of business strategies?
offensive and defensive
without a market, there will be no ___
sales; the product is worthless
what are factors that cause the change in the consumer patterns and needs?
- population movement and ethnic diversity
- demographic shift
- aging population
- changing family composition and consumer lifestyles
- consumer priorities (convenience, health, prices)
what are 4 factors involved in the success of a new food prdt?
- marketplace success
- financial success
- production success
- consumer/customer success
define financial successes
refers to the profits and return on investments
eg. how the product changes are affecting profitability and the financial performance
define marketplace success
refers to the achievement of target sales volumes and revenues
how is production success assessed?
what factors does it involve?
assessed by quality, quantity and costs
involves
- stability and safety of prdts
- production costs
- production yield
- distribution losses and returns from retailers
define production yield
ratio of product output to raw material input
how is the consumer or customer success measured?
by the level of acceptance and by the position of the new product against competing products
how is product success measured?
- how quickly it is purchased
- how often it is purchased
- how much is purchased
how is product and customer success measured
- 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
what are examples of reasons for prdt failure
- lack of strategic focus
- limited understanding of the market
- lack of financial resources
- focus on short-term profitability
- poor prdt quality
- limited creativity
what are 4 main reasons for failures of new food prdts?
- poor planning
- poor management
- poor concept
- poor execution/performance
what are examples of poor planing resulting in failures of new prdts?
- prdt does not fit company’s strategy, competencies, distribution
- failure to analyze the market properly
- failure to understand potential impacts of regulations
what are examples of poor management resulting in failures of new prdts?
- poor decision making about which projects are funded or not
what are examples of poor concept, resulting in failures of new prdts?
- 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
what are examples of poor execution/performance, resulting in failures of new prdts?
- 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
what are 5 organizational structures of a product dev team?
- centralized
- de-centralized
- dotted line
- matrix
- venture teams
describe a
A) centralized structure of a FPD team
B) de-centralized structure of a FPD team
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
