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Developing a Functional Food Product - Part 2
This document discusses considerations for developing a successful functional food product for the market. It begins by outlining upcoming trends in the industry, such as emerging economies and increasing health consciousness. Next, it identifies market drivers focused on consumers, like rising incomes and increasing awareness of health. Some key challenges in product development are ensuring healthy options are easy choices and delivering health, safety and quality. Five critical success factors for products are noticeability, superiority, compatibility, practicality and lack of complexity. The document provides a checklist for successful marketing that includes offering relevant benefits and differentiating through packaging. It emphasizes the importance of filtering promises from challenges in marketing.
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Developing a Functional Food Product - Part 2
- 1. Considerations in Developinga Functional Food Product & Making it Good for a Successful MarketStart Dr. R. B. Smarta Managing Director Interlink Marketing Consultancy Pvt. Ltd. Honorary Secretary Health Foods & Dietary Supplements Association (HADSA) 11th April 2014
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- 3. So Far wehave discussed Inside-Out Approach!!! Lets now appreciate the Outside-In Approach!!!
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- 5. Outside-In Approach Trends Needs Problems Platform Source: Innovationin Healthy & Functional Foods, Market –Focused Innovation in Food & Nutrition
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- 7. 10 Upcoming Trends 1.Emerging Economies 2. Value of Science 3. Increase in health consciousness 4. Awareness of Functional Foods 5. Increasing disposable incomes SOURCE: http://www.nutraceuticalsworld.com/issues/2014-01/view_editorials/10-trends-to-watch-in-2014/ 6. Quality & Safety 7. New Rules & Regulations 8. Claims Enforcement 9. Sustainable Supply Chains 10. Personalized & Preventive Medicines
- 8. The Market forHealth Promoting Ingredients
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- 10. Market Drivers focusedon Consumers Rising Incomes Major Brands re-positioning towards more towards Health Increasing incidence of Self-medication & Personal responsibility Increasing Awareness of Medical Consumers & Healthcare professionals
- 11. MARKET TRENDS BASEDON CONSUMER NEEDS
- 12. Market Trends basedon Consumer Needs • Digestive Health • Convenience Foods • Benefit Foods • Energy Yielding & Slow energy releasing • Fruit & Super fruit • Weight wellness & Gluten-free
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- 14. Consumer Dilemmas CONSUMER DILEMMAS What isthe price – value equation? How good is product nutritionally? Does the product call for longer cooking time? How is the taste affected by nutrition? Source: Innovation in Healthy & Functional Foods, Marketing, PR, Ad & Media for Brand building of innovative Foods & Nutritional Products
- 15. MARKET ENTRY BARRIERS& OTHER CHALLENGES
- 16. Market Entry Barriersfaced by the companies • Lack of adequate Marketing & Product development infrastructure • Lack of adequate funding for R&D and overall Business • Regulatory policies/procedures/processes
- 17. Other Market-related Challenges 1.Conversion of Science to Business 2. Value of Science a Regulatory mechanism 3. Consumer behaviour, Market mapping and Product development 4. Barriers in Development and Marketing 5. Viability and Commercialization 6. Funding and Financing
- 18. KEY CHALLENGES INDEVELOPMENT
- 19. Key Challenges inDevelopment • Ensuring that Healthy choice is the Easy choice for consumers • Assuring & Delivering Health, Safety & Quality • Achieving Sustainable food production • Managing the food chain • Optimizing Communication, Training and Technology transfer. Source: New Developments in Novel and Functional Foods, Lisbeth Munksgaard, SM, Danisco A/S
- 20. 5 CRITICAL SUCCESSFACTORS
- 21. 5 Critical SuccessFactors 1. Notice-ability 2. Superiority 3. Compatibility 4. Practicality 5. No Complexity
- 22. MARKETING & BUSINESSSTRATEGY
- 23. Marketing Strategy • Strategyfor ‘Targeted Market Segment’ • Strategy ‘In Societal Context’ • Strategy ‘To Meet the Future Demands’
- 24. Targeted Market Segmentsbased on Customer Needs Sufferers At Risk Prevention Mass Market Source: Functional Foods for Added Value Developing and marketing a new product category, Cecilia Mark-Herbert
- 25. Strategy for TargetedMarket Segment Source: Functional Foods for Added Value Developing and marketing a new product category, Cecilia Mark-Herbert
- 26. Strategy In SocietalContext Factors to be considered: Legal systems Claims made on the label Politics Cultural norms and values Finances and other societal factors Harmonized legal systems for food and medicines would facilitate production and trade with these products. Source: Functional Foods for Added Value Developing and marketing a new product category, Cecilia Mark-Herbert
- 27. Strategy to MeetFuture Demands Factors to be taken into considered: Extend product lines by combining the portfolio of existing and new product forms with innovative new components. Follow a strong trend, to identify emerging growth opportunities that can be accelerated into the mainstream market through competencies in marketing and distribution. Source: Functional Foods for Added Value Developing and marketing a new product category, Cecilia Mark-Herbert
- 28. Business Strategy Building aBrand Clinical Studies Proprietary ingredient/product Source: Functional Foods for Added Value Developing and marketing a new product category, Cecilia Mark-Herbert
- 29. Business Model Source: FunctionalFoods for Added Value Developing and marketing a new product category, Cecilia Mark-Herbert
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- 31. Process of Commercialization Creation& Commercializa tion Diffusion & Absorption Shifting out to the global/local frontier of awareness, knowledge, exchange & performance Moving toward the acceptance of innovators& early adopters of the market Product Innovation Product Innovation Marketing Innovation Commercial process Innovation Better and cheaper products in global, national and local markets in response to consumer needs. Source: Innovation in Healthy & Functional Foods, Market –Focused Innovation in Food & Nutrition
- 32. Manufacturing & Packaging Industry Nutrient and Supplement Suppliers& Manufacturers Confectionery, Beverage & Chocolate Manufacturers Ingredient Manufacturers & Suppliers Equipment Providers Vegetables & Fruits Suppliers Cereals and Grains Suppliers Equipment Providers, Processing Industry Stakeholders for Functional Foods Market
- 33. 7 POINT CHECKLISTFOR SUCCESSFUL MARKETING OF FUNCTIONAL FOODS
- 34. Checklist for SuccessfulMarketing of Functional Foods 1. Successful brands are expert brands 2. Offer a relevant benefit and be a credible brand 3. Aim for a benefit the consumers can feel 4. Remember - an ingredient is not a point of difference – it must give Value Proposition Source: http://www.nutraingredients.com/Industry/Learning-from-functional-foods-failures Learning from Functional Food Failure 11 June 2009
- 35. Checklist for SuccessfulMarketing of Functional Foods 5. A future of niches – focus on value, not volume 6. Differentiate using packaging design 7. Open new categories & segments – don’t be me-too Source: http://www.nutraingredients.com/Industry/Learning-from-functional-foods-failures Learning from Functional Food Failure 11 June 2009
- 36. Mantra For Marketing ‘Filterthe Promise from the Challenge’
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- 38. (Functional Foods line,Novartis) CASE STUDY
- 39. WHY DO SOMEPRODUCTS SUCCEED?
- 40. (Creamy yogurt containingBifidus ActiRegularis1, Danone, France) CASE STUDY
- 41. Your Wellness isin Your Hands!
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- 43. Interlink’s Offerings toClients 1.Market Mapping Location / Therapy-wise Organ Specific General Management Disease Care 2. India Entry Strategy Entry mode Regulatory & Product Deve. Communication & Health claims Positioning & Pricing strategy Partner search / alliances Licensing-in
- 44. Interlink Marketing ConsultancyPvt. Ltd. 3A, Central Plaza, 166, C.S.T. Road, Kalina, Santacruz (E), Mumbai - 400098 Tel: (022) 2666 6611 / 44 info@interlinkconsultancy.com www.interlinkconsultancy.com Enabling Corporates to succeed in competition! In life you have either Reasons or Results…
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- 46. AFRIS. AsianFoodRegulationInformationService. We havethe largest database of Asian food regulations in the world and it’s FREE to use. We publish a range of communication services, list a very large number of food events and online educational webinars and continue to grow our Digital Library. We look forward to hearing from you soon! www.asianfoodreg.com adrienna@asianfoodreg.com