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Published byKevin Austin Modified over 9 years ago
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The Art of Product Development by Angela (Laury) Shaw Or is it Luck?
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Outline Current Statistics Market Trends Steps behind Product Development After Thoughts Classes Available at ISU
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Current Statistics Typically… –“60-80% of New Products Fail” Casey Frye from Burke Corporation, Nevada, IA. –About 70-80% failure of new products (line- extensions) –Higher, 80-90% for Truly new
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Market Trends (General) Healthier Foods Convenience (Microwaveable Meals) Ethnic Favors Meal Drinks Organic Foods Whole Grains Low Fat (Trans Fats) & Low Carb. (?)
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Market Trends: Meats Poultry ( chicken and turkey) Value Added products Ingredients and flavorings Complete Meal Dishes Meat Snacks (jerky’s, condiments, etc.)
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Steps behind a New Product 1.Idea Generation 2.Marketing/Competition Analysis 3.Formulation (2 steps) 4.Product Testing Methods 5.Process Development & Scale-Up 6.Commercialization
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Idea Generation Decisions: –Go into the market (multiple ideas) –Get creative –Market choice (ex. Snack food, entrée) –Target market ( who & where?) –New or Improve –Need for product?
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Marketing Do research: Sources –US Department of Commerce –Trade Associations, Publications, & Shows –Trend Monitoring –USDA Foreign Ag Services Marketing Options –Multiple markets –How many products on Market?
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Competition Analysis Need an idea: –Who is your Competition? –Marketplace Stores & Location (Everywhere in the US?) –Prices –Target Market –Gimmicks (why are they special?) Packaging & Nutritional Claim
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Formulation: Step 1 Start with a recipe Do multiple version with modifications In house consumer testing Need a Gold Standard
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Formulation: Step 2 Ingredient substitution –Cost efficiency matters –Example: Onion powder instead of onions Instrumental test –When is it Gold Standard?
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Possible Testing Consumer –In house testing, special panels, etc. Instrumental testing ( Gold standard ) Shelf life testing ( Labeling and recalls ) Nutritional testing ( Strict laws ) Test Markets
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Process Development Needs: –Process control solidify –Equipment needs –Distribution needs –Personnel Needs –Ingredient Supply Needs
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Scale-Up Move to plant situation Batches are 10-15 times bigger New rules, laws, protocols, management Know process, mixer, mixture, Gold Standard Major problem step
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Scale-Up: Concerns Distribution (special handling) Safety Issues (Micro, allergens) Equipment (temp., times, speeds, etc.) Packaging (Fill of container) In process tests (moisture, rheology, appearance, taste, etc.) IS THIS GOLD STANDARD?
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Commercialization R & D –Home Use Test –Shelf life tests –Final product specifications –Label and Packaging –Final market report with profits
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Commercialization Marketing Division (if there is one) –Clarifies target market (demographics) –Finds stores ( grocers, internet, TV) –Advertisement (TV, ads, etc.)
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After Thoughts Competitive Market Place –Not high success rate of products Great job if –Creative –Fast pace –Problem solver –Love challenges –Always a need
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Job Possibilities Include: –Food/Meat Scientists –Microbiologists –Chefs –Engineers –Business/Management –Accounting
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Some Classes Available FSHN 412/512: Product Development FSHN 406: Sensory Evaluation FSHN 403: Food Laws MKT 447: Fund Consumer Behavior MKT 448: Fund International Marketing
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Questions? So is it Luck?
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