Product Development 101

1. Product Development 101 Speaker Name Speaker Title Date (optional) © 2007 Institute of Food Technologists

2. Agenda • Types of “New” Products • The Product Development Team • Product Development Process • Activity © 2007 Institute of Food Technologists

3. Types of “new” products • Almost 105,000 new food and drink products were launched globally in 2006 (Rowan 2007) • That’s around 300 for every day of the year! • It is estimated that only around 30,000 to 50,000 will succeed (Brody and Lord 2000) These are just some of the new products launched in 2006 © 2007 Institute of Food Technologists

4. There are several general categories of new products Completely new Line extensions of current products Same product but repositioned Improvements of current products Types of “new” products © 2007 Institute of Food Technologists

5. How does a new product get created? © 2007 Institute of Food Technologists

6. Technology & Quality Packaging Engineering/Process Engineering Food Defense Food Safety Research & Development Sensory Evaluation Microbiology Regulatory Compliance Nutrition Marketing Marketing Research Sales Manufacturing Operations Logistics Procurement Supply Chain Quality Control Legal Affairs The Product Development Team © 2007 Institute of Food Technologists

7. Product Development Process • In general, there are three phases of product development • Phase I: Product Definition • Phase II: Product Implementation • Phase III: Product Introduction • Each phase has key milestones which should be reached for a successful new product introduction © 2007 Institute of Food Technologists

8. Prototype Development Consumer Testing Phase II: Product Implementation Prototype Modifications Scale-up and Trial Production Phase III: Product Introduction Finish: PRODUCT LAUNCH Start: Strategic Plan PRODUCTDEVELOPMENTMILESTONES Phase I: Product Definition Market Opportunity Assessment Product Definition (New Idea) © 2007 Institute of Food Technologists

9. Product Development Process • All organization functions are involved throughout the project, but the level of activity varies for each function Organizational Involvement in the Product Development Process (Rudolph 1995) Phase I Phase III Phase II © 2007 Institute of Food Technologists

10. Phase I: Product Definition • Strategic Plan • Identifies company’s current market position • Identifies company’s desired/future market position • The strategic plan will help determine if the new product should be for an existing brand or an entirely new brand • For example, a company that is a leader in snack foods through its strategic plan may decide it wants to be a leader in snack foods AND beverages – so they will decide they need to develop (or purchase) a new beverage brand © 2007 Institute of Food Technologists

11. Phase I: Product Definition • Market Opportunity Assessment • This is used to determine what products are already in the market and where there is room for new products • For example, in the sample market on the right there are no carbonated 100% fruit juices – this presents an opportunity to a company that wants to enter the beverage market Opportunity Assessment Of the Beverage Market* Carbonated ? 100% Juice No Juice Non- Carbonated *For demonstration purposes only, products are not to scale © 2007 Institute of Food Technologists

12. Phase I: Product Definition • Product Definition • The product definition integrates many objectives to ensure that the final product is successful and meets the companies strategic plan • The product definition helps guide the product development team when choosing ingredients, processing, packaging, etc. • For example based on trends and demographic information, besides being a carbonated beverage with fruit juice, the marketing team might want the product should be: • Natural • For Tweens • Contain exotic flavors • Shelf-stable • Etc. © 2007 Institute of Food Technologists

13. Phase II: ProductImplementation Idea: Carbonated fruit drink Goal: Optimize fruit juice blend 100% Mango • Prototype Development • After the concept has been narrowed down, a product development scientist will work in the lab to develop one or more prototypes • The scientist will usually set up an experimental design to vary ingredients at defined intervals to see their effect on overall liking, flavor, texture, and color • Team Input 50% Mango 50% Strawberry 50% Mango 50% Cranberry 100% Cranberry 50% Cranberry 50% Strawberry 100% Strawberry © 2007 Institute of Food Technologists

14. Consumer Testing Once the product development scientist has refined their prototypes they will work with a sensory scientist to test them with consumers Statistics is used to determine the optimal formula Idea: Carbonated fruit drink Goal: Optimize fruit juice blend 100% Mango 50% Mango 50% Strawberry 50% Mango 50% Cranberry Optimal 100% Cranberry 50% Cranberry 50% Strawberry 100% Strawberry Phase II: ProductImplementation © 2007 Institute of Food Technologists

15. Phase II: Product Implementation • Prototype Modifications • Based on the results of the consumer testing the product development scientist may need to refine their formula (make it sweeter or less sweet, change the flavor, etc.) • Depending on the size of the change, the product may need to be consumer tested again • When choosing the final formulation other considerations will be taken into account such as cost and feasability © 2007 Institute of Food Technologists

16. Phase II: Product Implementation • Scale-up and Trial • Once a final formula has been chosen, the product development scientist will need to go to the plant and “scale-up” the formula • This means they will take the formula from the bench-top (small batch process that makes a few servings) to the plant (large batch process that makes thousands of servings) • The product development scientist will be sure it runs properly on the equipment and that the processing parameters are correct (e.g. was the mixing time sufficient to properly mix all of the ingredients?) © 2007 Institute of Food Technologists

17. Phase II: Product Implementation • Before being able to commercialize (send to market) the idea, several other activities need to occur: • The package needs to be developed • The nutrition information needs to be calculated • The label needs to be created • The product must meet regulatory approval • The shelf-life needs to be tested • Marketing needs to approve the product • Supply chain needs to be notified to order the ingredients • The new formula needs to be added to the schedule at the plant… THERE IS A LOT TO DO! © 2007 Institute of Food Technologists

18. Phase III: Product Introduction • Now the product is ready to be launched! • The product development scientist will need to oversee the first production run to be sure everything goes as planned • Product support will need to be in place to receive feedback from the plant about how the product is running and from consumers to know if they are satisfied © 2007 Institute of Food Technologists

19. Job Titles: Product Development Scientist Scientist Employers: Food processors Ingredient manufacturers/suppliers Academia (Higher Education) Contract research laboratories/development firms Self-employed/Consultant Responsibilities: Bench-top development Testing Plant scale-up Commercialization Troubleshooting Careers in Product Development © 2007 Institute of Food Technologists

20. Want to learn more? • Visit: • http://www.ift.org • http://school.discovery.com/foodscience/ • Find a Food Scientist: • A database of IFT members who are willing to provide more information about the field of food science to you • http://members.ift.org/IFT/Education/TeacherResources/findafoodscientist.htm © 2007 Institute of Food Technologists

21. Questions? © 2007 Institute of Food Technologists

22. Eating in (prepared meals, meal kits) Premium, gourmet, and exotic food Single-serve pre-made meals Food with texture, crispness, and crunch Food for kids Low-calorie, lactose-free, gluten-free and/or low-fat Locally grown/organic/fair trade produce Functional foods (with added health benefits, e.g. with omega-3-fatty acids etc.) Beverages Snacks Activity • Your task is to create a new product that meets one of the Top 10 food trends of 2007. They are: Sloan AE. 2007. Top 10 Food Trends. Food Technology. 61(4): 23-35. © 2007 Institute of Food Technologists

23. Activity • Create a poster with the following information: • Product name • Product picture • Target market • Description of the product including: • Package type (e.g. can, glass bottle, pouch in box) and • Serving size (e.g. single or multi-serve) • Ingredients • Shelf-life © 2007 Institute of Food Technologists

24. Scoresheet © 2007 Institute of Food Technologists

25. References • Brody AL and Lord JB. Developing New Food Products for a Changing Marketplace. Lancaster: Technomic Publishing Co., Inc, 2000. • Rowan C. 2007. Record-Breaking Number of New Products Flood Global CPG Shelves. Mintel International Group Ltd. [Accessed on June 11, 2007 Published on January 23, 2007] http://www.mintel.com/press_release.php?id=254053 • Rudolph J. 1995. The Food Product Development Process. British Food Journal. 97(3): 3-11. © 2007 Institute of Food Technologists

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