The document discusses the process of new food product development. It describes various types of new products like line extensions, repositioning existing products, new forms/sizes, and reformulations. The development process involves screening ideas, research and testing, pilot production, and market testing before full-scale production. Success requires integrating perspectives from marketing, manufacturing, engineering, and research to evaluate ideas and ensure technical and financial feasibility.

1. THE MYSTIQUE AND MYTHOLOGY OF NEW PRODUCT DEVELOPMENT To APO Training Course on Value Addition to Agricultural Products July 22 – 24, 2009 From Dr. Navam Hettiarachchy University Professor Department of Food Science University of Arkansas Fayetteville, AR, USA Email: nhettiar@uark.edu

5. CHARACTERISTICS OF CLASSES OF NEW PRODUCTS http://images.townnews.com/nctimes.com/content/articles/2009/06/20/food/zeb14b43a3bfc9971882575d3006e6e0a.jpg

7. General Characteristics of Classes of New Food Products Cont’… Types of New Product General Characteristics Line Extensions Little time or research is required for development. No major manufacturing changes in production lines or major equipment purchases are required. Relatively little change in marketing strategy is required. No new purchasing skills (commodity trading) or raw material sources are required. No new storage or handling techniques for either the raw ingredients or the final product are needed. This means regular distribution systems can be used. Repositioned existing product Research and development time is minimal. Manufacturing is completely unaffected. Marketing must develop new strategies and promotional material to interpret and penetrate the newly developed market niche. Sales tactics require re-evaluation to reach and make sales within the new market places.

9. General Characteristics of Classes of New Food Products cont… Cont’… Types of New Product General Characteristics Repackaging of existing product The novelty of repackaging will dictate the amount and degree of research and development required. Slight impact on physical facilities. New repackaging equipment will be required. Little impact on marketing, sales and distribution resources. Innovative products Amount of research and development dependant on the nature on innovation. Highly variable impact on manufacturing capabilities. Possible heavy impact on marketing and sales resources.

10. General Characteristics of Classes of New Food Products cont… Fuller 2005 Types of New Product General Characteristics Creative products Generally heavy, need for extensive research and development; therefore a costly venture. Extensive development time may be required. May require entirely new plant and equipment. Degree of creativity may require development de novo or unique equipment. Will require total revision of marketing and sales force. Creation of a new company or brand may be required. Risk of failure is high.

11. INNOVATIVE AND CREATIVE NEW PRODUCTS http://www.food4celiacs.com/buttons/NewStoreInterior1a.jpg

19. PRODUCT LIFE CYCLE Fuller, 2005 Characteristics of products, and their life cycles. (a) typical product life cycle; (b) the profit picture Time

24. Various Food Business Activities over Which Goverments in Different Forms and at Different Levels Exert Influence Cont’… Activity Influence Fiscal policy Interest rates for development loans Grants–in-aid; research funding Taxation policy Patents and Copies Copy right protection and licensing Research funding if guarantee of patent protection Trade barriers Tariff and protectionism Standards of food product identity Availability and cost of ingredients Environment protection Waste disposal Recycling or reuse requirements of packaging materials Energy utilization and disposal

25. Various Food Business Activities over Which Goverments in Different Forms and at Different Levels Exert Influence Cont’… Fuller, 2001 Activity Influence Marketing and trade practices Product or advertizing claims Billboard and advertising placements Store hours Container sizes Employment practices OSHA and worker safety Unemployment benefits Minimum wage levels Health policy Nutritional guidelines Nutritional labeling Agricultural policy Support programs for commodities Availability of commodities Consumer protection Product safety; safety of agricultural chemicals Labeling; product names; comparative advertising Inspection services

27. PRODUCT LINE EXTENSION AND REFORMULATION

34. DEVELOPMENT PROCESS AS AN INTEGRATED SYSTEM

38. Idealized representation of activities flow in product development Fuller, 2005 CONCEPT Objective Testing Consumer Preference Testing Process Design Product Design Pilot Plant Production Bench-top Product Subjective Testing Commercial Plant Production Market Test & Evaluation Pilot Process Plant Production