1. The Art of Product Development by Angela (Laury) Shaw Or is it Luck?

2. Outline Current Statistics Market Trends Steps behind Product Development After Thoughts Classes Available at ISU

3. 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

4. Market Trends (General) Healthier Foods Convenience (Microwaveable Meals) Ethnic Favors Meal Drinks Organic Foods Whole Grains Low Fat (Trans Fats) & Low Carb. (?)

5. Market Trends: Meats Poultry ( chicken and turkey) Value Added products Ingredients and flavorings Complete Meal Dishes Meat Snacks (jerky’s, condiments, etc.)

6. 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

7. 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?

8. 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?

9. 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

10. Formulation: Step 1 Start with a recipe Do multiple version with modifications In house consumer testing Need a Gold Standard

11. Formulation: Step 2 Ingredient substitution –Cost efficiency matters –Example: Onion powder instead of onions Instrumental test –When is it Gold Standard?

12. 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

13. Process Development Needs: –Process control solidify –Equipment needs –Distribution needs –Personnel Needs –Ingredient Supply Needs

14. 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

15. 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?

16. Commercialization R & D –Home Use Test –Shelf life tests –Final product specifications –Label and Packaging –Final market report with profits

17. Commercialization Marketing Division (if there is one) –Clarifies target market (demographics) –Finds stores ( grocers, internet, TV) –Advertisement (TV, ads, etc.)

18. After Thoughts Competitive Market Place –Not high success rate of products Great job if –Creative –Fast pace –Problem solver –Love challenges –Always a need

19. Job Possibilities Include: –Food/Meat Scientists –Microbiologists –Chefs –Engineers –Business/Management –Accounting

20. 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

21. Questions? So is it Luck?