Types of product development

Line extensions As consumers demands grow for a certain product, the manufacturing companies need to expand their sales by extending existing lines. They can do this by: A range of new flavours Packaging of products into smaller units E.g. Chocolate coated teddy bear and tiny teddy biscuits

‘Me-too’ products When a rival company produces a new product that proves to be successful, then other manufacturers often develop a ‘me-too’ product or a copy of the product. Can you think of any ‘me-too ‘products?

Process of product development 1.Market Research 2.Design Brief 3.Criteria for Evaluation 4.Idea Generation 5.Prototype 6.Production 7.Marketing/launch 8.Evaluation of product development

Life cycle of a product One method food manufacturers use to track the success of their product range is to develop a profile of the product throughout its life cycle. This includes: development stage, period of growth, period of maturity to eventual decline. Sales of the product will be tracked to determine its profitability and evaluation as to whether the product will need to be replaced. Marketing strategies can be used to extend the life of the product

Market research Companies collect and analyse information to assist them in their decision making about product development. Information: age, gender, socio-economic status, lifestyle, work, family life and general buying patterns Observe: societal trends and influences and consumer needs

Design brief Concept for a new product Defines the aims and intentions of the new product ad includes all constraints and considerations Criteria for evaluation

New product ideas There are two stages that are worked through when creating new products to solve the problem outlined in the design brief 1. Ideas stage: Brainstorming of ideas and use of questionnaires given to focus groups 2. Evaluation and screening: ideas are assessed against a set of criteria to see if they meet minimum requirements and then a detailed analysis of the materials, equipment, cost, expertise, consumer demand and sales is performed.

Prototype Developing ideas into a sample product or prototype Best combination of ingredients to ensure the product has appealing sensory properties and the shelf life is maximised Packaging is considered which details shelf life, protection, ease of handling and distribution, labelling, consumer appeal and environmental sustainability Once a prototype has been produced, it goes through analysis to evaluate sensory properties and suggestions can be offered for improvement

Production With a successful prototype, the company will start the production phase. Trials will be run to determine whether it is possible to replicate the prototype using full- scale equipment and volumes of ingredients. Packaging and labelling: this is important as it often sells the product

Marketing A marketing campaign must be developed to launch the new product into the market. The goal is to encourage consumers to try the product and the marketing campaign must encourage consumers to repeat purchasers to maintain market sales. 4 P’s: product, price, place and promotion

Evaluation of a new food product Evaluation of: product, production, economic viability and marketing campaign Product evaluation Evaluation of the physical and sensory properties of the product Production evaluation Resources used, type and availability of ingredients and materials, expertise, production processes and HACCP

Economic evaluation Costs involved in the products production including; design and development costs and likely profit sales. Figures are reviewed once the product is launched into the market place The success of the product will be critical to the economic success and to maintain its viability to the company’s product range.

Market evaluation Strengths, weaknesses, opportunities and threats: SWOT Analysis *