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Product Development

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Product Development

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  1. Product Development Carol Scott

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

  3. 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

  4. Product Life Cycle

  5. Product Life Cycle

  6. Product Life Cycle

  7. 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

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

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

  10. 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

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

  12. Idea Screening

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

  14. 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

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

  16. 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’

  17. Marketing Strategy Development

  18. 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

  19. Marketing Strategy Development

  20. Marketing Strategy Development medley bar digestives

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

  22. 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

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

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

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

  26. 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

  27. Test Marketing

  28. Successful or Unsuccessful?Pap Yes No

  29. McShrimp Burger Yes No

  30. Potato Bread Yes No

  31. Gourmet Snails Yes No

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

  33. 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

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

  35. Guess the Products.....

  36. guess the product 1

  37. guess the product 2

  38. guess the product 3

  39. guess the product 4