fst 253 research & development of food products the food product development process

FST 253 Research & Development of Food

Products

The Food Product Development Process

The Food Product Development Process

Idea ScreeningIdea Screening

Feasibility AssessmentFeasibility Assessment

Development PhaseDevelopment Phase

Launching New ProductLaunching New Product

Evaluating The ResultEvaluating The Result

Idea Screening

The Generation of New Product Ideas By creative people Not easy process Developers view from their own perspective

Technology, marketing, finance, production

Idea Screening

Technical people see opportunities for technological challenge Fail to understand need for products that satisfy consumers

Marketing people see others as unimaginative and too negative

Production people want to maintain their production schedules

Finance people want to minimize financial risks associated with uncertain projects

Idea Screening

Must have environment that fosters creativity and innovation

Must encourage individual personnel to perform as part of the team

Environment for Generating Ideas

“In our laboratories we have again and again deliberately taken people without scientific training, taken people from the production line, put them into

research situations in association with competent research people, and just let them be apprentices. What we find is an amazing thing….In about two years we

find that these people, unless they are sick or somehow unhealthy, have become an almost Pygmalion problem; they have

become creative.

Environment for Generating Ideas

. If there is anything unpleasant to an unprepared administrator it is to find

him/herself surrounded by creative people, and when the creative people are not

trained it is even worse. They have two unpleasant characteristics: first, they

want to do something by themselves and they have some pretty good ideas that do not fit

in with policy; secondly, they have the most naïve, uncharming and unbecoming

direct insight into what is fallacious in what you are doing, and that, of course, is

a blow to policy.

I do not want to romanticize these people, I am simply reporting on what we seem to find is a fact…and you have to find out what to do with

these awakened people. “

By Edwin Land (1963), then President and Director of the Polaroid

Corporation.

Environment for Generating Ideas

Top priority Often stifle by one’s own disciplines, laws, or regulations

Children as example Able to put together unrelated ideas in implausible and improper ways

Environment for Generating Ideas

Highly creative people are eccentric in the literal sense of the word. They have less respect for precedent and more willingness to take risks than others. They are less likely to be

motivated by money or career advancement than by the inner

satisfaction of hatching and carrying out ideas. In conventional corporate circles, such traits can look quite

eccentric indeed.

Environment for Generating Ideas

Six types of creativity1. Theoretical (Albert Einstein, Sir

Isaac Newton)2. Applied (Henry Ford, Bell, and Edison) 3. Inspired (artists and composers)4. Imaginative (writers and poets)5. Prescriptive (thinkers such as Plato

and Martin Luther)6. Natural (dancers, musicians, singers,

and sport figures)

Environment for Generating Ideas

Common theme identified: the protagonist have the ability to make associations of dissimilar things

Need to remove structures imposed by discipline, training, peer pressure, and peer ridicule

All ideas deserve respectful hearing

Environment for Generating Ideas

No room for negativism “We did that 20 years ago”

NIH (Not Invented Here) syndrome removed

Do not discourage ideas Pay no attention to facts, logics or reason Technologists viewpoints

Environment for Generating Ideas

Good communication between various disciplines a must

Perseverance and guts are critical

Plain old hard work

Environment for Generating Ideas

Sources of New Food Product Ideas

Everywhere New technology New knowledge Need to reduce cost

Internal Sources External Sources Total Marketplace Analysis

Internal Sources

A. Sales representatives Closest contact with consumers and competitors

See what’s happening in the marketplace

Are the eyes and ears of the company Include engineering, R & D, and distribution personnel in customer contact visits

Internal Sources

B. Consumer Correspondence and Communication

Through letters, 1-800 numbers, Allows company to address consumers’ needs immediately and obtain psychographic information

Complaints

Internal Sources

Complaints For each complaint, there are 8 who did not but will not try product again

Must be acknowledged Thoroughly investigated Classified according to their nature, product identification, where purchased, and time and date of complaint

Internal Sources

Complaints May reveal a hidden product defect, instability, or product weakness

Valuable source of ideas Companies will see opportunities for improvement or new product development from these records

Internal Sources

C. Internal Product and Process Research and Development Research previous experimental trials on processes and products

Clues to new product ideas Reasons for rejection 10, 5, 2 years ago may not be valid today

Unfortunately, most are poorly documented and filed, thus re-inventing the wheel

Internal Sources

D. Collective Memory Develop a collective memory of what happened before and how it was solved

Document ideas and experiences Valuable asset

External Sources

A. Food Conferences, Exhibits, Trade Shows, and Research Symposia Opportunity to see and taste; discuss products and problems

Source of new ingredients and technologies

Can provide companies with enough lead time to act with new ideas

External Sources

A. Food Conferences, Exhibits, Trade Shows, and Research Symposia

Hear technical papers Make useful contacts with experts in other fields

People involved in the development process will benefit most, not upper management

Need plan on how to maximize time at show

External Sources

B. Public Libraries Extensive collection of cookbooks that describe various ethnic cuisines

External Sources

C. Specialized Library and Library Services Provide information and statistics on consumer trends, new developments, health concerns, etc.

New patents and pending patents Ideas for new product or new developments in the science and technologies of foods, food processing and preservation, and nutrition

External Sources

Benefits: Subject matter has value Provides contact information May also provide information about supporters, and thus, competitors

External Sources

D. Trade Literature From ingredient and equipment suppliers

May include sample recipes Excellent sources of scaled-up formulations along with processing details

External Sources

E. Government Publications Want to promote the use of agricultural commodities or underutilized crops

Provide recipes utilizing foodstuff, manufacturing directions, and market test data

Information on competitors who received research monies

Description of regional govt. research activities

Total Marketplace Analysis

Scan marketplace carefully Consumer is in the marketplace; consumer influences that marketplace and is influenced by it

Developers need to fully understand their marketplace

Total Marketplace Analysis

A. The Competition Can be the source for new ideas Analytical inspection of competitive products can provide data to:

Compare ingredients Assess quality characteristics that appeal to the competitor’s consumers

Evaluate flavor preferences with small taste panels

Rate package and label appearances

B. The Marketplace Changing consumers needs and lifestyles have led to:

Chain supermarkets Warehouse clubs Mail order food retail outlet Expanded perishable department Wide selection of delicatessen and easily prepared entrees

Total Marketplace Analysis

Important source of new product ideas from:

Watching people shop in supermarkets, C-Stores, mom-and-pop stores, take-away food stores, open-air farmers’ markets

Sales force

Total Marketplace Analysis

C. Analysis of purchases Obtain data through UPCs about:

What items are purchased as total amount spent increases

Which stores have the highest average purchase per receipt

What products are purchased with what products

Total Marketplace Analysis

D. The Consumer Information can help developers define particular consumer to be targeted

Understand their needs and expectations

Need demographic and psychographic information

Total Marketplace Analysis

Demographic information provides data about: age distribution income distribution number of family units as well as non-family

units number of children per family unit male-to-female ratios ethnic background of people in geographic

regions number of single parent families rent or own their homes.

Total Marketplace Analysis

Per capita consumption figures How much is being bought divided by population

“disappearance” figures Indirect reflection on consumer’s purchasing

Able to paint accurate pictures of consumers in general and individuals in particular

Total Marketplace Analysis

Demographic data can be very misleading if used in isolation. Example:

The over-55’s are the fastest growing segment of the North America population

They have the most wealth of any age category Females make up the greater part of that population since statistics show women outlive men. Consequently, many over-55’s are either widowed or single

Women over 55 years of age need extra calcium to prevent osteoporosis. Other physiological changes in aging for all over-55’s are general frailty, loss of taste buds, loss of teeth, and constipation

Total Marketplace Analysis

Thus, some product developer may incorrectly see an opportunity to bring out a

High calcium Low sodium Low fat Added-value

Can all over-55’s be grouped into such an uncompromising classification?

Total Marketplace Analysis

Psychographic data Reflects behavior and attitude of consumers

Provides a better definition of the qualities that must be designed into products to meet the needs and expectations of targeted consumers

Total Marketplace Analysis

Demographic data together with psychographic data can provide inspiration for new product ideas Example: More leisure time (demographic data) and a desire for a healthier lifestyle (psychographic data) may lead to ideas for nutritious snacks or low-calorie beverages

Total Marketplace Analysis

Psychographic data shows consumers knowledge of nutrition issues are more in-depth

Changing cooking and eating habits of consumers

However, data available must be extrapolated to describe the future consumer, as development takes time

Total Marketplace Analysis

The Reality of New Ideas Generation

Following competitors into the market with a “me-too” product can be risky because: There is no data on consumer needs and expectations

It will cost the copycat product more to get market introduction in the already established competitor’s market

Need time to learn processing know how

Screening For Better Ideas

Do not eliminate ideas May be inappropriate today, but not in the future

All rejected ideas should be documented

Need to have product development manager with clearly defined company objectives

The New Product Development Team

Skills necessary: Management skills Engineering skills Financial data Production advice Legal advice Research and development

Marketing/sales dataPurchasing inputWarehousing/distribution dataQuality control advice

Management Skills

Establishes the interest of senior management

Ensures that company objectives are followed

Ideas selected fit into corporate image

Holds in check rivalries that occur Opportunity to assess the strengths and weaknesses team members

Engineering Skills

Evaluates process needed for the manufacturing of new products

Modify old equipment Design new equipment for innovative processes

Identify delays, costs and disruptions involved in development

Financial Data

Oversees the cost of the project

Monitor budget Net profits that the new product will earn

Production Advice

Evaluate if the skills, labor, and physical plant are available to produce the new product

Works with marketing to review their sale volume projections

to coordinate requirement for production lines

Legal Advice

Knowledgeable about all legalities that might pertain to the products or the processes under consideration for development Technology used in formulation & processing

Labeling, marketing, & promotion programs Copyright or patents Packaging Labeling & trademarks

Research & Development Department

Control the technology of the development process

Produce the bench-top models Establish specifications for raw materials and ingredients

Analyze the market data

Marketing & Sales Data

Monitor marketplace for changes that might affect the course of development

Develop marketing & advertising strategies

Prepare label statements, claims, recipes, and usage suggestions

Consider impact the new product will have on company’s established products

Evaluate impact on retailers

Purchasing Input

Finding inexpensive yet reliable sources of raw materials, ingredients, & packaging materials Needs to meet the standards and specifications submitted by food technologist

If raw materials are too costly may have to reject project due to too high priced for consumer

Warehousing & Distribution Data

Special needs Chilled Frozen Environmentally controlled storage

Fruits, vegetables

Adequate storage and distribution systems available

Quality Control Advice

Concerns for to provide a safe, wholesome, & high quality product

Serve as watchdogs throughout the process Finding potential hazards

Summary of the Development Team

Overlapping of duties and responsibilities of the team members May have gray areas

The team personifies the skills needed for the continuous evaluation & screening performed throughout the development process.