Product Development

Product Development Carol Scott

Contents • Product Life Cycle • Product development process • Line extensions • Rebranding of existing products • Product placement

Introduction • The aim of the Food Product Development process is to create a product suitable for; • Individual consumers • Food service organisation • Food manufacturing company • New products are constantly being created and marketed to create competition with other brand names

Product Life Cycle

Introduction • Given the rapid changes in consumer tastes, technology and competition, companies must develop a steady stream of new products • A retailer can obtain new products in one of three ways • buying a whole company, a patent or a licence to produce someone else’s product e.g. Coca Cola and Tesco • within the company’s own Research and Development (R& D) department • approaching suppliers and asking them to come up with several new concepts

Food Product Development Idea Generation Commercialisation Idea Screening Test Marketing Concept Development & Testing Product Development Marketing Strategy Development Business Analysis

Idea Generation • New product development starts with idea generation • There are different methods in generating new ideas e.g. In-depth interviews, consumer panels

Idea Generation • The ideas generated for a new product will be the result of a variety of factors which will include the needs of a specific client group • Benefits • Saves money • Customers satisfied • Ideas generated are related to target market

Idea Screening

Concept Development & Testing • A two-phase stage in the development of a new product in which potential buyers are presented first with the idea or description of the new product and later with the product itself in prototype form in order to obtain their reaction

Marketing Strategy Development • Outlines objectives and describes the ways in which the business is going to satisfy their customers • The focus of every marketing strategy should be to communicate the benefits of the product and how it can meet customers' needs • Kellog’s quote ‘Wholesome. Nutritious. Great Tasting. Top Quality’

Marketing Strategy Development

Marketing Strategy Development • Without a marketing strategy businesses won't be able to reach ideal customers • Age group • Price • Advertisement • If customers needs and wants do however change then companies will have to adapt to these new needs and wants

Marketing Strategy Development

Marketing Strategy Development medley bar digestives

Business Analysis • Before spending large amounts of money a business analysis should be conducted • This will include analysing projected sales, costs, competition and profit margins for a new product

Product Development • At this stage Research & Development develops the product concept into a physical product • Kitchen trials • Factory scale trials • Production runs

Test Marketing • A test market is a limited introduction of the product • Test marketing by companies has declined in recent years • On the other hand some companies have come up with novel ways of test marketing their product

Test Marketing

Successful or Unsuccessful?Pap Yes No

McShrimp Burger Yes No

Potato Bread Yes No

Gourmet Snails Yes No

Commercialisation • Commercialisation is introducing the new product to the market • Product • Placement • Price • Promotion • This can be the most expensive and risky part of product development

Guess the Commercialisation • Options; • Barclay’s family Insurance • A car • A holiday company • Ulster bank commercial Guess the ad

Guess the Products.....

guess the product 1

Product Development