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Product Development 101. Speaker Name Speaker Title Date (optional). Agenda. Types of “New” Products The Product Development Team Product Development Process Activity. Types of “new” products. Almost 105,000 new food and drink products were launched globally in 2006 (Rowan 2007)

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Product development 101 l.jpg

Product Development 101

Speaker Name

Speaker Title

Date (optional)

© 2007 Institute of Food Technologists


Agenda l.jpg
Agenda

  • Types of “New” Products

  • The Product Development Team

  • Product Development Process

  • Activity

© 2007 Institute of Food Technologists


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Types of “new” products

  • Almost 105,000 new food and drink products were launched globally in 2006 (Rowan 2007)

    • That’s around 300 for every day of the year!

    • It is estimated that only around 30,000 to 50,000 will succeed (Brody and Lord 2000)

These are just some of the new products launched in 2006

© 2007 Institute of Food Technologists


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There are several general categories of new products

Completely new

Line extensions of current products

Same product but repositioned

Improvements of current products

Types of “new” products

© 2007 Institute of Food Technologists


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How does a new product get created?

© 2007 Institute of Food Technologists


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Technology & Quality

Packaging

Engineering/Process Engineering

Food Defense

Food Safety

Research & Development

Sensory Evaluation

Microbiology

Regulatory Compliance

Nutrition

Marketing

Marketing Research

Sales

Manufacturing

Operations

Logistics

Procurement

Supply Chain

Quality Control

Legal Affairs

The Product Development Team

© 2007 Institute of Food Technologists


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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


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Prototype

Development

Consumer

Testing

Phase II:

Product

Implementation

Prototype

Modifications

Scale-up and

Trial Production

Phase III:

Product

Introduction

Finish:

PRODUCT LAUNCH

Start:

Strategic Plan

PRODUCTDEVELOPMENTMILESTONES

Phase I:

Product

Definition

Market Opportunity

Assessment

Product Definition

(New Idea)

© 2007 Institute of Food Technologists


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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)

Phase I

Phase III

Phase II

© 2007 Institute of Food Technologists


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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


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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

Opportunity Assessment

Of the Beverage Market*

Carbonated

?

100%

Juice

No

Juice

Non- Carbonated

*For demonstration purposes only,

products are not to scale

© 2007 Institute of Food Technologists


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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


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Phase II: ProductImplementation

Idea: Carbonated fruit drink

Goal: Optimize fruit juice blend

100%

Mango

  • 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

50%

Mango

50%

Strawberry

50%

Mango

50%

Cranberry

100%

Cranberry

50%

Cranberry

50%

Strawberry

100%

Strawberry

© 2007 Institute of Food Technologists


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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

Idea: Carbonated fruit drink

Goal: Optimize fruit juice blend

100%

Mango

50%

Mango

50%

Strawberry

50%

Mango

50%

Cranberry

Optimal

100%

Cranberry

50%

Cranberry

50%

Strawberry

100%

Strawberry

Phase II: ProductImplementation

© 2007 Institute of Food Technologists


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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


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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


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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


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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

© 2007 Institute of Food Technologists


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Job Titles:

Product Development Scientist

Scientist

Employers:

Food processors

Ingredient manufacturers/suppliers

Academia (Higher Education)

Contract research laboratories/development firms

Self-employed/Consultant

Responsibilities:

Bench-top development

Testing

Plant scale-up

Commercialization

Troubleshooting

Careers in Product Development

© 2007 Institute of Food Technologists


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Want to learn more?

  • Visit:

    • http://www.ift.org

    • http://school.discovery.com/foodscience/

  • Find a Food Scientist:

    • A database of IFT members who are willing to

      provide more information about the field of food

      science to you

    • http://members.ift.org/IFT/Education/TeacherResources/findafoodscientist.htm

© 2007 Institute of Food Technologists


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Questions?

© 2007 Institute of Food Technologists


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Eating in (prepared meals, meal kits)

Premium, gourmet, and exotic food

Single-serve pre-made meals

Food with texture, crispness, and crunch

Food for kids

Low-calorie, lactose-free, gluten-free and/or low-fat

Locally grown/organic/fair trade produce

Functional foods (with added health benefits, e.g. with omega-3-fatty acids etc.)

Beverages

Snacks

Activity

  • Your task is to create a new product that meets one of the Top 10 food trends of 2007. They are:

Sloan AE. 2007. Top 10 Food Trends. Food Technology. 61(4): 23-35.

© 2007 Institute of Food Technologists


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Activity

  • Create a poster with the following information:

    • Product name

    • Product picture

    • Target market

    • Description of the product including:

      • Package type (e.g. can, glass bottle, pouch in box) and

      • Serving size (e.g. single or multi-serve)

    • Ingredients

    • Shelf-life

© 2007 Institute of Food Technologists


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Scoresheet

© 2007 Institute of Food Technologists


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References

  • Brody AL and Lord JB. Developing New Food Products for a Changing Marketplace. Lancaster: Technomic Publishing Co., Inc, 2000.

  • Rowan C. 2007. Record-Breaking Number of New Products Flood Global CPG Shelves. Mintel International Group Ltd. [Accessed on June 11, 2007 Published on January 23, 2007] http://www.mintel.com/press_release.php?id=254053

  • Rudolph J. 1995. The Food Product Development Process. British Food Journal. 97(3): 3-11.

© 2007 Institute of Food Technologists


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Headquarters

525 W. Van Buren Street

Suite 1000

Chicago, IL 60607

312.782.8424

ift.org

Washington, D.C. Office

1025 Connecticut Avenue, NW

Suite 503

Washington, D.C. 20036

202.466.5980


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