Product Development Flashcards
What is the common guide that we use in food development?
Stage-Gate Idea-to-Launch model
Was is the per capita consumption of food?
658 Kg
What drives us to develop new foods?
Constant increases in population, Food trends, Health focusing, ingredient availability, energy demands and change in demographics.
What is a major drawback for developing foods?
Over 90% of new food products fail.
What are some common reasons that new products fail?
1) They dont appeal to customer
2) They are too costly to make
3) Poor marketing
4) Demographic changed
What are the 5 core steps in the Stage Gate process
1) Ideation
2) Pre-planning
3) Validaiton of Proof of Concept
4) Process optimisation and up-scaling
5) Commercialisation
What can spark the Ideation phase?
Serendipity, Derivative idea, A Solution based idea, targeted ideas and symbiotic ideas.
Where do the ideas come from?
1) Development teams
2) Hiring a research/marketing agent
3) Recognition of a gap in the marketplace.
Why should we include ingredient suppliers in our developmental teams?
We need to determine if the desired ingredients are available and at a cost effective price, they can also give us ideas about how to use their ingredients including market research.
What is copycatting?
Copycatting is blatant copying of a competitors product, a good example would be Aldi’s range.
What is Line extension?
Line extension is where you add an altered product to your existing range of products. Coca Cola is a good example of this, Coke is the Original whereas the extensions are Diet, Zero and Life.
What is cannibalisation?
Cannibalisation is the effect of releasing a new product to your line which negatively affects the sales and need of another product in your range. Sometimes you can recoup from cannibalisation whilst still retaining another demographic on your new line.
What is brand extension?
Brand extension is where a company buys the rights to use another companies ingredients or methods to provide an altered product.
What is Pre-planning in the stage gate process
Pre-planning is the research done prior to the development stage to determine the developing products potential. It is essentialy R + D
How do we pre-plan in the stage gate process?
1) We determine the necessary quality controls
2) We do detailed research about market, demographics and production.
3) We do a Pro/Con investigation ( Strength, Weakness, Opportunity and Threat)
4) Financial analysis and competitor comparisons.
What happens if we did not pre-plan
If we do not pre-plan we are at a higher risk of product failure, which means that resources and time were miss-allocated.
What must new food products have?
1) They must have a clear definition
2) Must have a large market
3) Resolve a customer issue
3) Be different to what is available.
What is the Validation of Proof of Concept phase?
It is the validation that this food product has the potential to be a successful food product. This includes high quality marketing, detailed market studies, consumer tests and food trials.
Why are focus groups important?
They allow you to understand your consumer and their trends in the unknown market, this is essential for research new demographics that you do not have any information on. These focus groups can also offer important suggestions to your product development.