2337070
FOOD TECH - Product Development
- Why?
- To remain in business and retain a
competitive position, companies need to
produce new products, maintain or
expand their market share and know
what their competitors are producing.
Aim is to supply consumers at a profit.
- Must be
economically and
technically viable
- Financial, technical
and sales forecasting
will be undertaken
for new products to
estimate the
potential of the area
- Meeting user needs
- Recipe modification
- Reducing cost
- Scaling up
- Enhancement (to presentation and taste)
- To remain in business and retain a
competitive position, companies need to
produce new products, maintain or
expand their market share and know
what their competitors are producing.
Aim is to supply consumers at a profit.
- Key areas:
- Providing products with altered nutritional content
- Increasing the variety of products avalible
- Producing 'economy' lines
- Appealing to the 'luxury' market
- Maintaining and improving product quality
- Producing 'convenience' foods
- Providing products with altered nutritional content
- Failures
- Why?
- No difference between new and old product
- Tough competition
- Unsatisfactory distribution
- Rising cost of ingredients, production and packaging
- Low profits
- Poor unattractive packaging
- Food scares
- Politics
- Environmental concerns
- Bad timing
- Poor positioning on shelf
- Too innovative
- Ineffective advertising
- No difference between new and old product
- Many products will not make it through to the final launch.
For every 100 ideas approximately 10 products are launched,
giving a 90% failure rate
- A year later only one of these
products will be on sale. In order to
spread the financial risk a company
is likely to have many products
under development at the same
time.
- Why?
- Product life cycle
- The life of a product includes its
time in development and the time it
is in the market. Usually consists of:
development; introduction; growth;
maturity; saturation; decline.
- To prevent a decline in sales, companies
usually employ marketing tactics to boost
sales such as: money off vouchers, limited
edition varieties, new pack sizes, 'new' and
'improved' varieties. By doing this, sales of
particular products can remain level for long
periods of time.
- The life of a product includes its
time in development and the time it
is in the market. Usually consists of:
development; introduction; growth;
maturity; saturation; decline.
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