Half yearly FT Flashcards
Reasons for developing new food products
One of the main reasons for developing new food products is to increase a company’s sales and to stay in competitive with other companies. Consumers become bored with their everyday foods and seek new and exciting products that they can try. Today, they are also more educated about health and nutrition and therefore demand nutritionally balanced products. Other developments result from new government food legislations, including ingredient and packaging labelling laws.
Types of food product development
- New to the World
Completely new products. Maybe a new concept in packaging, such as the functional lid that holds the tablet until opening, as is used in the Berocca Performance drink. Innovative products are very volatile in the market place. Very expensive to develop and launch a completely new product and follow up with advertising and promotion. - Line extension
This is the development of a new flavour, or a recipe revision that changes the recipe to alter its nutritive value, to make it low in salt or high in fibre.This is to retain their customers and improve their products. However it may be a low-cost way of attracting customers but produce less profit than a brand new innovation. - Me-Too products
Copy-cat products are products that are similar to another company’s food product. Companies will copy the product as well as the packaging style. The purpose or aim is to attract customers for an already established and successful product. The profits and market share are of no threat to other companies
What is market research
Market research is finding out what the consumer (customers) think of a product or wants from a product.
Why market research is completed
Market research is completed because if you do not provide what the customer wants then they will not buy it.
What is the marketing mix?
The combination of the product, price, promotion and place. They are crucial to a successful product launch.
How is market research conducted
Surveys:- when a company has an idea for a product.
Test runs:- sample products are handed out and questions are asked.
People are questioned in the store/shops.
Taste test comparisons:- people are asked to compare products.
What are some pricing strategies?
Penetration Pricing
This strategy is used to set the price of a new product artificially low for a period of time to allow it to get a foothold in the market. Once a consumer base has been established, the price will gradually creep up over a period of time.
Psychological Pricing
Charging $1.98 instead of $2 for a food item is an example of psychological pricing. Retailers do it because in our heads saying ‘one dollar ninety-eight’ sounds a lot less than ‘two dollars’. Even though it’s only 2 cents cheaper (or not cheaper at all if paying with cash), the price is targeting a customer’s desire for value for money.
Price Skimming
These terms refer to items priced in the higher range. Price skimming occurs when the market leader charges more because it is the market leader. This can be risky because it invites competition.
Premium Pricing
Premium pricing is slightly different. It taps into the customer’s perception that a higher price means a better quality or luxury item, even if this is not the case.
Functions of packaging
Promoting and selling the product Defining product identity Providing information Expressing customer needs Ensure safe use Protecting the product
Types of food packaging
Plastic, metal, glass and paper and cardboard
Food label law requirements
Food labelling laws require that all food labels must provide the following information: name and/ or description of the food; identification of the ‘lot’ number; name and Australian street address of the supplier of the food; list of ingredients; date mark; nutrition information panel; country of origin of the food; warning and advisory statements.
Purpose of robots in commercial food processing
- Increase the safety of the food prepared
- Reduce the incidence of workplace injuries
- Pick and place activities when packing similar items, such as meat processing, fruit or vegetable of a standard size.
- Robotic arms for cake decoration functions, such as piping icing.
Food additives examples
- Artificial sweeteners make a product sweet without using sugar, such as diet soft drinks.
- Colours add or restore colours to foods, such as sauces, sweets and snack foods.
- Humectants prevent food from drying out.
- Preservatives protect food against the action of micro-organisms.
UAV uses in agriculture
Drones are much smaller than other aircraft, enabling low-altitude flight. This gives them a high degree of accuracy when used to assess soils and fields for planting or irrigation requirements. They are able to film and provide information about an area in real time, allowing a speedy response to disease or pest infestation. Additionally, larger drones have the capacity to spray chemicals accurately and some can plant seeds and apply fertiliser.
Benefits of Augmented reality shopping
Brings products to life through 3D models that you can size up, examine from all angles, and even place in the environment around you. Smart device can be used to find information, sales or specials.
3D printed food benefits
Intricate designs automated cooking mass manufacturing personalised meals Food materials can be pureed and distributed through the print nozzle.
