food product development Flashcards
define external factors
factors that are beyond the control of the industry
list the external factors that impact on food product development
economic environment
political environment
ecological environment
technological environment
explain how the economic environment can impact FPD
the economic environment is frequently fluctuating. These influences on the fluctuations are complex and several factors determine economic growth and stability.
- exchange rates : as the AUD fluctuates, there are variations of appeal of our produce on the global market. When our dollar is strong, promary produce and manufactuered goods may not be competitive, however, when the value of the dollar falls there is a huge demand for our foods.
- inflation/recessions: refers tot eh increase and decrease of cost of living e.g. in recession people less likely to buy more exi items
- unemployment:means increase on gov. reliance
- tax e.g. gst
explain how the political environment can impact FPD
o Government influences/controls (policy and legislation)
Price levels of taxation, competition, trading rules, licensing, subsidies and tariffs
Environment air, water, noise, use of chemicals in food production and food additives
Education food and nutrition education, food standards and food handling and safety
Working conditions awards, trading hours, occupational health and safety
o Community influences and lobby groups
The community is able to lobby politicians to bring about changes in the industry that are in the interest of the community. At times this pressure comes from organised groups with vested interest in changes e.g. dairy farmers or the pressure may result from widespread concern about an issue
explain how the ecological environment can impact FPD
o Nature resource use o Environmentally friendly decisions o Arming procedures o Waste management o Packaging o ‘clean green’ image o Consequences of disregard for environmental issues
define the internal factors
MICRO-ENVIRONMENTAL FACTORS are those internal forces that a company has some control over and which have a direct and measurable impact upon the company’s success.
list the internal factors
personell expertise
production facilites
finicial position
company image
explain how personnel expertise can impact on the FPD
o Different people bring different knowledge and skills to the process each contributing to the end product in their own way.
o These roles may include: marketing personnel, food technologists, technical managers, nutritional experts, microbiologists, engineers, lawyers etc.
o The success of any new product development is highly dependent on the personnel expertise of the whole organisation.
explain how production facilities can impact on the FPD
The need for production facilities will depend on the food product and the volume of production. Factors include:
- Small volume and one-off operations – have limited production facilities and domestic resources can be utilised
- Batch productions – includes larger runs of a particular product ; sometimes variations in production occur as a result of relatively minor changes in the facilities used
- Mass production – uses automation and computerisation to ensure production volumes meet a large target market.
Storage costs are an expense that the food industry must control carefully. To avoid the need for large storage facilities, the most efficient process is ‘just in time’ deliveries and movement of stock,
explain how finanical position can impact FPD
The success of an operation is usually judged by how well it manages expenditure and the margin of profit.
Influences on the finical success of a business include:
- Investment capital
- Resource management
- Quality of the product
- The market share – competition
explain how company image can impact FPD
Corporate image is influence by a number of factors, including:
- Reputation
- Quality
- Marketing strategies
- Packaging
- Price
list the drivers of FPD
market concerns consumer demands societal changes technological developments company profitabilty
explain what dot points come under market concerns
health
dietary considerations
environment
how is health (under market concerns) a driver for FPD
Increasing awareness of health and general wellbeing, along with the perceived risks of particular foods = consumers more conscious about what they eat. Healthy eating is a critically important consumer driver and a trend that should be of concern to food manufacturers.
Consumers who are concerned about their health will read labels and have a willingness to pay premium prices for these healthier foods.
E.G. Pepsi Co’s sun bites snack crackers with quinoa
how is dietary considerations (under market concerns) a driver for FPD
DIETARY CONSIDERATIONS:
For some consumers, easting certain foods can be a debilitating, possibly eve life-threatening, experience.
Individuals with allergies and intolerances need to avoid certain foods.
Allergy incidence has doubled over the last decade.
Food manufacturers have the obligation to not only ensure allergen warnings are clearly evident on packaging but that their food products are not exposed to inadvertent contamination from potential allergens while they are being manufactured, moved, transported or stored.
Products are being developed and improved to ensure they are free from common allergens.
If a consumer feels adequately catered for they are likely to become a loyal customer.
E.G. Peanut, gluten or dairy free allergies
how is the environment (under market concerns) a driver for FPD
THE ENVIRONMENT:
Consumers are concerned about environmental issues and are making choices in their lives to have a positive impact on the environment.
Organic farming has become very popular.
Food manufacturers are required to comply with legislation in relation to clean air, water and noise pollution.
The recommendation of reduce, reuse and recycle has impacted on industry. Less packaging materials are being used, packages have more than one use and much more effective recycling programs are in place.
what dot points come under consumer demands
convience
cost
desire for info
how is convience a driver for FPD
Changing lifestyles have led to increasing demands for quick, easy and economical solutions to food decisions.
Studies show that consumers spend no more than 30 minutes cooking every night.
Consumers demand connivence but are not willing to sacrifice quality, which is why meal start-up kits such as Hello Fresh and Aussie Farmers Direct are available. Provides convenient and easy food options with healthy, ethical and comforting choices.
E.G. Hello Fresh, Aussie farmers direct
how is cost a driver for FDP
COST:
All consumers love bargains and search for value-added products that offer them more for their money.
However, at the other end of the sale consumers are willing to spend more on high quality products that offer specific features such as health benefits or are environmentally sustainable.
Food prices will continue to rise.
how is the desire for more info (under consumer demand) a driver for FPD
DESIRE FOR INFORMATION:
Consumers want more information about products and transparency in the supply chain of food products. Consumers want to know exactly where their food has come from and what is in it.
E.G. Consumers want reassurance in regards to issues animal welfare, sustainable practices.
what dot points come under societal changes
increasing ageing population
single person households
longer working hours
how can ageing pop (under societal changes) be considered a driver for FPD
AGEING POPULATION:
Australians are living longer = ↑ aged people.
The fastest growing demographic in the food industry in Australia are consumers over the age of 65.
Elderly people want products that offer general health benefits that could help ↓ disability and dependency.
Life expectancy ↑ = heart health, diabetes, bone health… ↓ = ↑ health conscious diet
E.G. for elderly people functional foods like yoghurt has added fibre, probiotics, vitamins and minerals
how can single person households (under societal changes) be considered a driver for FPD
Currently 1 in 4 Aus. households is a lone-person household.
Lone person households want to purchase products in single portion sizes
Lone person households = ↑ demand frozen and ready-made meals
E.G. frozen and ready-made meals, single portion meals
how can changing work hours (under societal changes) be considered a driver for FPD
Changes in Aus. workplace such as job sharing, part-time work and more flexible hours are a reflection of the 24/7 economy we now enjoy.
Working 9-5 Monday-Friday is no longer considered standard
↑ flexibility = ↑ work-life balance
E.G. Flexible food options like single portion meals
how can multicultural aus (under societal changes) be considered a driver for FPD
Ethnic and cultural diversity of Aus. is reflected in the food studs available.
Markets, cafes, takeaway options and restaurants have been influenced by many different cultures e.g. Italian, Mexican, Asian….
Cultural diversity is a driver for food product development in Aus. Requiring both adaptation of existing products as well as the development of new ones
E.G Italian restaurant
what are the two main types of technological developments
processing equipment
packaging material
home appliances
explain processing equipment as a technological development
Consumer demand for high quality, minimally processed, fresh food has led to the development of new food-processing techniques. High-pressure processing (HPP) encompasses a range of fruit, vegetable and herb products.
Techniques of blanching, tempering, pasteurisation, sterilisation… is commonly used.
E.G. HPP in fruit and vegetable products
explain packaging material as a technological development
Companies are always on the hunt for materials and technology to improve connivence and lengthen shelf life.
Consumers demand value, novelty and innovation.
Improved product experience Is a key driver influencing technology when develop
Consumers require packages that are easy to open and close, variable pack sizes.
E.G. Single serve packaging, bakeable packs, microwavable packs, self-cooling/heating containers
explain home appliances as a technological development
Home kitchen appliances are becoming smarter, faster and more energy efficient.
These appliances make food preparation and cooking easier and to meet the demands of time poor households.
E.G slow cooker
explain COMPANY PROFITABILITY SUCH AS INCREASING MARKET SHARE
INCREASE MARKET SHARE:
The food product development scene is fiercely competitive, with an ever-increasing number of companies competing for market share across a myriad of food types.
Market share represents the percentage of a product’s total sales earned by a particular company over a specified time period.
↑ customers purchasing a product = ↑ market share for that product
what are line extensions
LINE EXTENSIONS are food products which are changed in some way to increase their market share. E.G. new flavours, package size, or package features.
Line extensions are sometimes used to increase the appeal of the product to health-conscious consumers, such as salt, fat or sugar reduced and complex carbohydrate (fibre) increased.
what are me-toos
ME-TOO’s are copies of existing products. A manufacturer may attempt to duplicate the success of another product by developing a similar item. Ingredients, size or shape may be copied within the limits of industrial opportunity. Of the food products developed, most are me-too’s and likewise most failed products are also me-too’s.
what new to world
NEW TO THE WORLD PRODUCTS are foods which are completely new in concept, unline nay other product in the marketplace.
Rarely are food innovations ‘new to the world’. The innovation may be a food, a package or combination of both. Although few products fit this classification, those that do have the potential to be enormously rewarding for the food manufacturer, such as juice casks, double-up yoghurt and Pringles.
