1. Three Approaches to New Product Development Consumer Driven Competition Driven Technology Driven Idea generation Concept development and consumer screening Business Analysis Product Development Consumer / Lab Testing Test marketing Market Analysis Concept Identification and Screening Product Development COMMERCIALISATION Technology needs and application ideas Technology and Engineering facility Business Analysis Prototype development Production testing Advanced Development

2. The aims, outcomes and constraints have been identified and presented to the product development team Need to do further ‘desk research’ to determine the accuracy of the aims, outcomes and constraints and also to ‘flesh them out’ to give a more detailed project definition that can drive and control the project

3. Four areas of initial research 1. Product ideas 2. Consumers 3. Technology 4. Market

4. Desk research Market data studyTechnical information search Products ideas search Target consumers’ studyMarketing info search Societal, political environmentCompany environment Desk analysis How big is the market?What is the raw material What are the possible products? Who are the consumersWhat is the distribution? What are society’s attitudes?What is the marketing method? What are the regulations? Outcomes Clearly defined project aim with target market, product, marketing, processing Required outcomes from each stage Constraints from environment and company

5. ConsumerFinal product Researchdesign Technology Product Marketing research Production & designresearch & design Technological trends Consumer vision based on team work Integrating the main disciplines in product creation

6. Consumer researchers build the consumer/product relationship through the PD process Market researchers analyze markets and design the marketing and distribution methods in the market strategy The food engineer and technologist research the product and the process together in co-engineering and design the production and physical distribution methods The food product designer researches the social and cultural backgrounds and designs the holistic product.

7. Product Concept A product concept is a printed, pictorial or mocked-up representation and description of a new product. Example

8. It provides a device for communicating to both customers and the development team: - the nature of the new product - how it will work - the product’s features and characteristics - benefits - reasons for being and - what problems it will solve for the user

9. It represents a protocol that provides the development team a specific set of expectations as well as direction for the development process and the launch strategy It provides the basis for positioning strategy and product formulation, plus packaging, advertising, pricing and distribution

10. Concepts can be presented in different formats: Depends on the relative newness of product and the stage of development. It can be in: -Simple verbal descriptions - more elaborate verbal descriptions incorporating advertising language

11. -Storyboards including product descriptions and an illustrations of the package and/or product. - a mock up on the package - a product prototype

12. CONCEPT TESTING Is defined as a marketing research technique that is used to evaluate a concept’s market potential and provide information useful in strengthening the concept and developing introductory marketing strategy Concept testing can use either qualitative or quantitative techniques

13. Qualitative techniques Focus groups In depth interviews Provides useful knowledge regarding consumer reaction towards the concept, the strength of the concept, and recommendations for improvement BUT it can’t provide data to make early volume estimates.

14. Quantitative Techniques Consumer survey - Incorporating relevant questions pertinent to the company and the product - An intention to buy scale (5 point scale)

15. Would definitely buy Would probably buy Might/might not buy Would probably not buy Would definitely not buy Measures concept success- both as a decision making variable, and as a key element in various volume prediction models

16. It can also pinpoint the types of individuals that will most likely buy the product Dimensions of Concept Test Uniqueness Believability Level of consumer interest Whether the new product will solve consumer problems Practicality and/or usefulness of the new product

17. An effective or relative liking dimensions Reaction to price or price-value rating Strengths and weakness Problems with the concept

18. Final product concept development Target market segments Product attributes Product benefits Product risks Packaging attributes Packaging benefits Product design brief Final evalustion of product concept

19. Product Design Specifications Qualitative product metrics Quantitative packaging metrics Processing methods Raw materials Cost/prices Sales forecast Market share Estimation of acceptance / success Final acceptance of new product design