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© 2007 Institute of Food Technologists 1
Types of “new” products
• There are several general categories of
new products
• Completely new
• Line extensions of current products
• Same product but repositioned
• Improvements of current products
© 2007 Institute of Food Technologists 2
The Product Development Team
Technology & Quality
Packaging
Engineering/Process Engineering
Food Defense
Food Safety
Research & Development
Sensory Evaluation
Microbiology
Regulatory Compliance
Nutrition
Legal Affairs
Manufacturing
Operations
Logistics
Procurement
Supply Chain
Quality Control
Marketing
Marketing Research
Sales
© 2007 Institute of Food Technologists 3
Product Development Process
• In general, there are three phases of product development
• Phase I: Product Definition
• Phase II: Product Implementation
• Phase III: Product Introduction
• Each phase has key milestones which should be reached for a
successful new product introduction
© 2007 Institute of Food Technologists 4
Product Definition
(New Idea)
Market Opportunity
Assessment
Prototype
Development
Consumer
Testing
Prototype
Modifications
Scale-up and
Trial Production
Phase II:
Product
Implementation
Phase I:
Product
Definition
Start:
Strategic Plan
Finish:
PRODUCT LAUNCH
Phase III:
Product
Introduction
PRODUCT
DEVELOPMENT
MILESTONES
© 2007 Institute of Food Technologists 5
Product Development Process
• All organization functions are involved throughout
the project, but the level of activity varies for
each function
Organizational Involvement in the
Product Development Process
(Rudolph 1995)
© 2007 Institute of Food Technologists 6
Phase I: Product Definition
• Strategic Plan
• Identifies company’s current market position
• Identifies company’s desired/future market position
• The strategic plan will help determine if the new product should be for an existing brand or an
entirely new brand
• For example, a company that is a leader in snack foods through its strategic plan may decide it
wants to be a leader in snack foods AND beverages – so they will decide they need to develop (or
purchase) a new beverage brand
© 2007 Institute of Food Technologists 7
Phase I: Product Definition
• Market Opportunity Assessment
• This is used to determine what products are
already in the market and where there is room for
new products
• For example, in the sample market on the right
there are no carbonated 100% fruit juices – this
presents an opportunity to a company that wants
to enter the beverage market
Carbonated
Non- Carbonated
100%
Juice
No
Juice
?
Opportunity Assessment
Of the Beverage Market*
*For demonstration purposes only,
products are not to scale
© 2007 Institute of Food Technologists 8
Phase I: Product Definition
• Product Definition
• The product definition integrates many objectives to ensure that the final product is
successful and meets the companies strategic plan
• The product definition helps guide the product development team when choosing
ingredients, processing, packaging, etc.
• For example based on trends and demographic information, besides being a carbonated
beverage with fruit juice, the marketing team might want the product should be:
• Natural
• For Tweens
• Contain exotic flavors
• Shelf-stable
• Etc.
© 2007 Institute of Food Technologists 9
Phase II: Product
Implementation
• Prototype Development
• After the concept has been
narrowed down, a product
development scientist will work
in the lab to develop one or more
prototypes
• The scientist will usually set up an
experimental design to vary
ingredients at defined intervals to
see their effect on overall liking,
flavor, texture, and color
• Team Input
100%
Mango
100%
Cranberry
100%
Strawberry
50%
Mango
50%
Cranberry
50%
Cranberry
50%
Strawberry
50%
Mango
50%
Strawberry
Idea: Carbonated fruit drink
Goal: Optimize fruit juice blend
© 2007 Institute of Food Technologists 10
Phase II: Product
Implementation
• Consumer Testing
• Once the product
development scientist has
refined their prototypes they
will work with a sensory
scientist to test them with
consumers
• Statistics is used to
determine the optimal
formula
100%
Mango
100%
Cranberry
100%
Strawberry
50%
Mango
50%
Cranberry
50%
Cranberry
50%
Strawberry
50%
Mango
50%
Strawberry
Idea: Carbonated fruit drink
Goal: Optimize fruit juice blend
Optimal
© 2007 Institute of Food Technologists 11
Phase II: Product Implementation
• Prototype Modifications
• Based on the results of the consumer testing the product development
scientist may need to refine their formula (make it sweeter or less sweet,
change the flavor, etc.)
• Depending on the size of the change, the product may need to be consumer
tested again
• When choosing the final formulation other considerations will be taken into
account such as cost and feasability
© 2007 Institute of Food Technologists 12
Phase II: Product Implementation
• Scale-up and Trial
• Once a final formula has been chosen, the product development scientist will
need to go to the plant and “scale-up” the formula
• This means they will take the formula from the bench-top (small batch
process that makes a few servings) to the plant (large batch process that
makes thousands of servings)
• The product development scientist will be sure it runs properly on the
equipment and that the processing parameters are correct (e.g. was the
mixing time sufficient to properly mix all of the ingredients?)
© 2007 Institute of Food Technologists 13
Phase II: Product Implementation
• Before being able to commercialize (send to market) the
idea, several other activities need to occur:
• The package needs to be developed
• The nutrition information needs to be calculated
• The label needs to be created
• The product must meet regulatory approval
• The shelf-life needs to be tested
• Marketing needs to approve the product
• Supply chain needs to be notified to order the ingredients
• The new formula needs to be added to the schedule at the
plant…
THERE IS A LOT TO DO!
© 2007 Institute of Food Technologists 14
Phase III: Product Introduction
• Now the product is ready to be launched!
• The product development scientist will need to oversee the first
production run to be sure everything goes as planned
• Product support will need to be in place to receive feedback from the
plant about how the product is running and from consumers to know
if they are satisfied

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Product development

  • 1. © 2007 Institute of Food Technologists 1 Types of “new” products • There are several general categories of new products • Completely new • Line extensions of current products • Same product but repositioned • Improvements of current products
  • 2. © 2007 Institute of Food Technologists 2 The Product Development Team Technology & Quality Packaging Engineering/Process Engineering Food Defense Food Safety Research & Development Sensory Evaluation Microbiology Regulatory Compliance Nutrition Legal Affairs Manufacturing Operations Logistics Procurement Supply Chain Quality Control Marketing Marketing Research Sales
  • 3. © 2007 Institute of Food Technologists 3 Product Development Process • In general, there are three phases of product development • Phase I: Product Definition • Phase II: Product Implementation • Phase III: Product Introduction • Each phase has key milestones which should be reached for a successful new product introduction
  • 4. © 2007 Institute of Food Technologists 4 Product Definition (New Idea) Market Opportunity Assessment Prototype Development Consumer Testing Prototype Modifications Scale-up and Trial Production Phase II: Product Implementation Phase I: Product Definition Start: Strategic Plan Finish: PRODUCT LAUNCH Phase III: Product Introduction PRODUCT DEVELOPMENT MILESTONES
  • 5. © 2007 Institute of Food Technologists 5 Product Development Process • All organization functions are involved throughout the project, but the level of activity varies for each function Organizational Involvement in the Product Development Process (Rudolph 1995)
  • 6. © 2007 Institute of Food Technologists 6 Phase I: Product Definition • Strategic Plan • Identifies company’s current market position • Identifies company’s desired/future market position • The strategic plan will help determine if the new product should be for an existing brand or an entirely new brand • For example, a company that is a leader in snack foods through its strategic plan may decide it wants to be a leader in snack foods AND beverages – so they will decide they need to develop (or purchase) a new beverage brand
  • 7. © 2007 Institute of Food Technologists 7 Phase I: Product Definition • Market Opportunity Assessment • This is used to determine what products are already in the market and where there is room for new products • For example, in the sample market on the right there are no carbonated 100% fruit juices – this presents an opportunity to a company that wants to enter the beverage market Carbonated Non- Carbonated 100% Juice No Juice ? Opportunity Assessment Of the Beverage Market* *For demonstration purposes only, products are not to scale
  • 8. © 2007 Institute of Food Technologists 8 Phase I: Product Definition • Product Definition • The product definition integrates many objectives to ensure that the final product is successful and meets the companies strategic plan • The product definition helps guide the product development team when choosing ingredients, processing, packaging, etc. • For example based on trends and demographic information, besides being a carbonated beverage with fruit juice, the marketing team might want the product should be: • Natural • For Tweens • Contain exotic flavors • Shelf-stable • Etc.
  • 9. © 2007 Institute of Food Technologists 9 Phase II: Product Implementation • Prototype Development • After the concept has been narrowed down, a product development scientist will work in the lab to develop one or more prototypes • The scientist will usually set up an experimental design to vary ingredients at defined intervals to see their effect on overall liking, flavor, texture, and color • Team Input 100% Mango 100% Cranberry 100% Strawberry 50% Mango 50% Cranberry 50% Cranberry 50% Strawberry 50% Mango 50% Strawberry Idea: Carbonated fruit drink Goal: Optimize fruit juice blend
  • 10. © 2007 Institute of Food Technologists 10 Phase II: Product Implementation • Consumer Testing • Once the product development scientist has refined their prototypes they will work with a sensory scientist to test them with consumers • Statistics is used to determine the optimal formula 100% Mango 100% Cranberry 100% Strawberry 50% Mango 50% Cranberry 50% Cranberry 50% Strawberry 50% Mango 50% Strawberry Idea: Carbonated fruit drink Goal: Optimize fruit juice blend Optimal
  • 11. © 2007 Institute of Food Technologists 11 Phase II: Product Implementation • Prototype Modifications • Based on the results of the consumer testing the product development scientist may need to refine their formula (make it sweeter or less sweet, change the flavor, etc.) • Depending on the size of the change, the product may need to be consumer tested again • When choosing the final formulation other considerations will be taken into account such as cost and feasability
  • 12. © 2007 Institute of Food Technologists 12 Phase II: Product Implementation • Scale-up and Trial • Once a final formula has been chosen, the product development scientist will need to go to the plant and “scale-up” the formula • This means they will take the formula from the bench-top (small batch process that makes a few servings) to the plant (large batch process that makes thousands of servings) • The product development scientist will be sure it runs properly on the equipment and that the processing parameters are correct (e.g. was the mixing time sufficient to properly mix all of the ingredients?)
  • 13. © 2007 Institute of Food Technologists 13 Phase II: Product Implementation • Before being able to commercialize (send to market) the idea, several other activities need to occur: • The package needs to be developed • The nutrition information needs to be calculated • The label needs to be created • The product must meet regulatory approval • The shelf-life needs to be tested • Marketing needs to approve the product • Supply chain needs to be notified to order the ingredients • The new formula needs to be added to the schedule at the plant… THERE IS A LOT TO DO!
  • 14. © 2007 Institute of Food Technologists 14 Phase III: Product Introduction • Now the product is ready to be launched! • The product development scientist will need to oversee the first production run to be sure everything goes as planned • Product support will need to be in place to receive feedback from the plant about how the product is running and from consumers to know if they are satisfied