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7 Steps in Food Product Development

Use of Quality Control: Bun Imaging

Prototype development: Large scale

Prototype development: Small scale

4. Feasibility Study

1. Idea Generation and Screening

4. Feasibility Study

The Technical Feasibility study requires knowledge about whether processing equipment is available, and whether the current staff can produce this new product.

SCREENING: Screening is basically about constraints for the development of the new food product. There are fewer constraints for me-too products. Line extensions have more constraints and New-to-the world have the greatest amount of constraints.

Feasibility study is conducted after product specifications. The purpose is to determine whether a new product idea will be profitable and if its manufacture is technically possible. If these 2 questions are no, then the new product is discontinued.

The Technical Feasibility study requires an assessment of both internal and external factors.

Analysis of:

* Availability and suppliers of ingredients

* Appropriate staff, equipment, technology

* If it is necessary to develop new technology/equipment.

* Time and money requirements

* Time and cost to develop quality assurance procedures.

Constraints could be:

Financial

Processing

Product

Marketing

Company

Ethical and Legislative

The financial feasibility study is the determination of a 'break-even point' based on the costs of development, marketing, production, delivery versus the volume of sales required to make a profit. One issue here is predicting a realistic level of sales. Market demand, likely market share and competing products are all considered.

Constraints could be:

Skills

Recipe

Equipment

Packaging

Ingredients

Time

Market

Competitors

Distribution

1. Idea Generation and Screening

Design Brief

3. Product Specifications

5. Production Process Development

A useful design brief will enable a food manufacturer to define consumer market needs and the price the market will pay for a specific food product.

IDEA GENERATION: Sometimes new products arise from market research. Feedback can provide insight into market needs and gaps in product ranges.

Product specifications are precise descriptions of the characteristics a manufacturer wants in their product.

They are derived from the outcomes of the first two steps, idea generation and screening and market research.

Production Process Development involves the necessary changes to adapt manufacturing resources. In some cases it is minimal, e.g. line extensions based on new flavours. However if the new product is different to the product range this may involve changes to factory layout, processing methods and level of training.

A component of this is the manufacturers mission statement. This mission statement relates to company policies and goals which provide guidance for new food product development.

Mission statements are relatively brief and relate to company policy, product range and target markets.

Product specifications are for the manufacturers benefit, not just addressing consumer requirements. The specifications will depend on internal company factors such as financial status and technology.

Production Process Development will go a lot smoother if quality control and quality assurance are met so that the right ingredients, staff and processing equipment are used to ensure quality of factory output.

Ideas can also come from recipe books or media items about food. Internally a company may do brainstorming sessions. This involves research and development staff and also production, purchasing, managing and marketing personnel. All ideas are recorded, no matter how ridiculous, as they may be useful later, for e.g. when technology improves.

Product specifications can be complicated to establish, they may include processing methods, packaging, quality assurance and quality control and even target market.

The design brief helps to provide direction to product development teams which is important because it decides whether the project should be continued at early stages which is imperative as it is a costly process and many new products fail.

2. Market Research

Market research assesses the likelihood of consumer acceptance of those products considered worthy enough to continue to this stage of the process.

Market research must interview a sufficient number of consumers to be statistically meaningful. There are two types of sampling for this reason- Non-probability (which is what you did for your pie) where you ask friends, relatives and neighbours or volunteers. Probability sampling is often based on location(e.g. at shopping centres) and can be more specific in questioning.

Market research involves asking consumers what they want and whether they should modify the concept or discontinue at this stage.

Market research involves market surveys. These surveys may use organised consumer discussion groups or focus groups. Field reports may be undertaken for example interviews with salespeople who can advise about what consumers are buying, levels of market acceptance and satisfaction with existing ranges. It may also involve taste panels e.g. in supermarkets.

Once market research is undertaken a company may use a marketing information system to gather data. These are the four basic components of a marketing information system:

1.Collection of internal company data including accounting and sales records.

2. Market intelligence regarding competitor products like retail sales and prices.

3. Market research using primary and secondary data.

4. Effectiveness of promotional strategies currently in the marketplace e.g the success of products already on the market.

Market research is looking for:

Consumer market characteristics e.g. demographics- age, gender, family size, economic status, level of education. Geographic points of sale e.g. urban, suburban, rural, remote.

Market research may indicate that the product will not succeed and thus the product will discontinue.

This may be because the market is too small, too many competitors, development costs are too high, it is outside of company experience.

Market research involves primary market research which is collection of original data and secondary market research e.g. looking at Australian Bureau of Statistics. It is less expensive.

7. Testing of product prototype

6. Development of a prototype

Testing of product prototype occurs when commercial batches of the prototype become available for deeper consumer and market evaluation.

Development of a prototype involves the creation of a model of the new product concept for broad-based market testing. Extensive product and market research can establish whether ingredients will perform well under manufacturing conditions. Any modifications will then become apparent at this step.

During this final step the prototype is tested to ensure it meets Australian Food Standards and export regulations (AQIS) as well as consumer and market needs.

Testing of product prototype is now in a form which can be felt, tasted in consumer evaluation and subjected to laboratory testing and modification. Packaging and label design may be refined, nutrition and ingredient panels are formed, testing of the package in a variety of conditions is conducted as is storage requirements.Sensory testing is completed by small focus groups. Small scale product launches are often used to check market acceptance and small changes are made on completion.

Development of a prototype is important as there is a big difference in processing small batches under kitchen conditions than in larger condition batches.

Producing larger quantities will enable widespread testing of ingredient formulation, processing conditions, product specifications like storage conditions and packaging.

Focus group

Sensory Testing

Small scale product launches help decide

whether a product will succeed in the market

with less financial risk.

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