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1 Introduction to Food Product Development

To start, let’s think about what product development is:.

  • How new things show up in the grocery store or in foodservice
  • The process of creating, processing, and commercializing a new food product
  • The process generally takes a group of people from different disciplines working together to develop (or improve) a product.

Product Development Key Stages

Formulation, commercialization.

At each stage, or even within the stages, there are checkpoints to decide to continue or stop the project. This can be done through a Stage and Gate System like the example shown here or it can be done in a modified system. The principle is the same, though, to develop new products strategically and use time and resources wisely.

Stages include Ideation, Formulation, Processing and Communication. Gates include New Product Concept Check, Market Check, Feasibility Check, and Competitive Product Check and Decision to Launch. From there the product is launched and the results are evaluated

Typically this Stage and Gate process works like a funnel. You may start with 12 to 15 ideas and then research and evaluate those ideas. Some ideas will get discarded because you will find the product concept already exists. Others will get discarded because the ingredients or processing will cost more than what consumers are willing to pay (based on products in the relevant category). Some ideas will seem great, but will be too niche and will not have a large enough target audience to be successful. Once the ideas have been narrowed down, the best 3 to 5 ideas may be moved to the Formulation stage. In this stage, the product will be made on a small scale and consumer testing will be done to confirm interest. Then products will go through the second gate to determine which products have enough consumer interest to continue. During the Processing stage, 2 to 3 products are scaled up on larger equipment. This helps determine production costs and efficiency. Food safety and quality testing also are done to determine how to produce a safe and consistent product. Shelf-life testing is conducted at the end of the Processing stage to make sure the product will remain at an acceptable and safe quality long enough for the product to made, shipped, purchased, and consumed. The third gate evaluates production, food safety, quality, and shelf life to decide which products can actually be made efficiently and consistently. The Commercialization stage includes work to get the product ready to sell on the grocery store shelves. Typically this includes the final costing, additional consumer sensory testing, and package design. The final gate makes sure that no errors or significant drawbacks have been missed before the product is launched. Through the Stage and Gate process, 12 to 15 ideas may get narrowed down to 1 or 2 products. The Stage and Gate process allows many ideas to be considered efficiently. The more viable the idea, the more time and work is needed. When an obstacle is found at a gate, no more time or resources are committed to that idea.

Each company may work through the stages of product development a bit differently depending on resources, timelines, and product types being developed. In a product development course, a product is likely developed from start to finish, so more market, consumer, and product research will need to be done during the ideation stage to catch significant drawbacks.

Often the most difficult part of product development is coming up with the initial idea. Many food products exist in the marketplace, so coming up with a new food product that does not exist and consumers are interested in buying can be a challenge. It is best to simply jump in and start generating ideas. From there, concepts can be refined and narrowed down. Ideas can come from a variety of sources. Some ideas are for a brand-new product and some are for a line extension of an existing product. Once ideas have been generated, it is important to identify the target customer. Trends are followed closely to determine what is new and upcoming. Trends often spark ideas for new products. Trends change over time, so it is difficult to list current examples, but convenience products, comfort foods, and plant-based foods have been trending over the last few years. 

Some issues with ideation include regional vs. global preferences and market size vs. target market. Flavors that are commonly known and liked in the Midwest may not sell well in other parts of the country. Consumers outside of the Midwest may not like those flavors or may simply be unfamiliar with the flavors. If your target market is a small part of a product category and the product category itself is small, there may not be a large enough market share for your product. It also can be a challenge to realize that just because you like something, many others may not. We tend to develop products we like, but sometimes you may have to develop a product for a target audience that does not include you.

  • Procure ingredients and make them into a product on a small laboratory scale
  • Produce a “gold standard” of the new product
  • Sourcing ingredients and ingredient costs
  • Product shelf life (often not tested in formulation, but needs to be considered early in the process)
  • Can the product really be made on a large scale?
  • Avoid Patent and Copyright infringement
  • The formulated product process is “scaled up” to produce greater volumes
  • Pilot plant testing
  • Plant testing
  • There are always product changes with scale-up.
  • Quality & Proximate Analysis testing done to set specifications, determine food safety concerns, and estimate shelf life
  • Processing experiments and runs allow a more accurate product cost to be determined (include processing efficiency, rework used, etc.).

Processing Key Questions:

  • Sensory Attributes
  • Nutritional Profile
  • Product Specifications
  • Overall Functionality
  • Once the new product has been made successfully, it is sent to commercialization to launch the new product into the store for sale.
  • determining packaging
  • creating a label (logo, nutrition facts, etc.)
  • finalizing costs
  • developing advertising and/or literature for the product

Commercialization Key Questions:

  • How should the product be positioned for the best sales?
  • What attributes do you highlight?
  • Where does it go in the grocery store (should consider this throughout the development process)?
  • What effect will the distribution system have on product quality?

After the launch of a new product:

  • Determine if the new product was successful.
  • Growing interest, increase in sales
  • Market share
  • Company sales revenue

Key Team Members

It takes many roles to develop a new food product. A product development team can be very successful with all members contributing an expertise. The challenge is communicating effectively to make sure everyone is on the same page with the status and goals of the project. Key team members include product development, engineering, production, purchasing, quality, regulatory, marketing, sales, and upper management. Their typical roles are laid out below.

Product Developers

  • In charge of developing new products, especially in terms of the hands-on testing and managing the development process
  • May be the Team Leader
  • Formulate Product
  • Determine Sensory Attributes
  • Run Shelf Life Testing
  • Know Food Safety Concerns
  • Test the Process
  • Consider Nutrition
  • Calculate Costs (may need input from others)

Engineering and Production

  • Equipment Design and Maintenance
  • Process Controls
  • Production Costs (line speeds, overhead cost)
  • Employee Training
  • Consumer Safety
  • Consumer Handling
  • Ensures consumer expectations are met
  • Sensory and Quality attributes are tested to make sure the product meets specifications
  • HACCP and Preventative Controls plus Prerequisite Programs
  • Microbiology Testing
  • Foreign Material Testing
  • Process Checks
  • Incoming ingredient and packaging safety checks
  • Makes sure the new product is legal and safe
  • Coordinates a Generally Recognized As Safe (GRAS) dossier if necessary (typically for ingredient development)
  • Product Name
  • Standard of Identity
  • Nutrition Labeling
  • Product Codes

Marketing & Sales

  • Defines product market and positioning
  • Confirms consumer need for a new product through surveys and consumer data
  • Develops advertising strategy
  • Monitors competitor’s sales and new product introductions
  • Helps design product packaging, especially tied to attracting the target audience
  • Has input on the product name

Challenges of Product Development

  • Just because you think it is a good idea, does not mean everyone else does.
  • Sometimes things just do not work like they are supposed to (scale-up changes product characteristics, shelf life is not long enough, low consumer acceptance, etc.)
  • Ingredient sourcing and costs
  • Processing and equipment limitations
  • Area of Expertise
  • Goals and Objectives
  • Ability to understand other disciplines
  • Can be overlap or gaps in functions depending on company structure

Timeline for new product development

  • A line extension for an already existing product
  • Example: A new flavor of a popular soda
  • A new product, but still can be made on existing equipment
  • Example: A new type of cereal
  • A brand new product – could be hard to make or new equipment may need to be designed/purchased.
  • Examples: co-extruded snacks and plant-based meat alternatives
  • Developing a new ingredient often takes longer than developing a finished food product because there are more regulatory and sales hurdles involved. 

Recap on the Product Development Process

  • Product Development is the process of creating, processing, and commercializing a new product.
  • New products need to be of interest to a target market.
  • The timeline can range from 3 months to 3 years.
  • Product development teams are made up of members with a variety of backgrounds.

Product Development Scope

It is important to be able to ideate openly & creatively.  However, ask yourself, “Does the product already exist?” and “What are our company’s new idea limitations?”. Below are common limitations for product development courses:

  • Avoid mixes, line extensions, and assembly products.
  • Avoid expensive ingredients or be ready to discuss how to pay for them.
  • Typically a course does not have an alcohol license.
  • CBD oil is not yet legal in food items in some states.
  • Processing equipment availability needs to be considered for your new product idea.

Food Product Development Lab Manual Copyright © 2021 by Kate Gilbert and Ken Prusa is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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Food Product Development Process: Steps & Flowchart

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  • Posted by by Pranav Ghule
  • March 14, 2021

Table of Contents

Food product development in food technology (processing) industries is a continuous and never stopping process. Have you observed different Flavours in the chips? Like Tomato, Cheese n Cream, Magic masala, Sour cream & Onion etc. Or take an example of Vegan Milk ( Plant-based milk ) made from entirely plant-based ingredients.

All this we can say is a result of the food product development process. Like developing different flavours in an already present product. Then, entirely developing a new product which is not present in this world before.

Sounds interesting? So, we will look into the Food product development process, including New product development.

What is New food product development (NPD)?

New product development is the process of developing new products by any food company, to begin to need to create a new product because of changing in new food technologies or the introduction of the competitive product in the market.

A food company can process a new product development, whether that food company is a part of changing the market or not — the new product based on the already existing one and act as a complement or improvement in existing products. Or may new products based on the latest technologies without a need of suffered from others.

There are several types of classification for the new product.

Classification of new food product development

New product development is classified in four categories :

1. Major innovation

Significant innovations are new in the market—the Food products created with the latest technologies, ingredients and provide a unique experience to the customers.

For example- Beyond meat developed, completely plant based-meat products which are free from any animal best ingredients.

Read More about Beyond meat: The Beyond Meat story – Vegan Alternative to meat

2. Product improvements

In this classification, the food products developed without considering creating a new market. But, Instead targets customers from competitors.

For example- In food products such as fat-free allergen-free products, which are already in the market and compete with competitors.

3. Product additions

In this classification, the food products developed by food companies known as imitation products. In fact, The food producers create products from available resources to develop the original product. which already produced by the original producer of that food product.

For example- the local snacks processing industry produces snacks products (chips, namkeen), imitating large companies in the snacks market.

4. Repositioned products

Repositioned products are promoted in a new way, such as attracting different kinds of customers. These are not new products, formulations nor having any new features, but they positioned in the other way to attract different groups of customers.

For example, – The Lucozade energy drink business changed the product’s image from a drink to recover people from an illness to a drink for people interested in sports. [Source: Superbrands case studies: Lucozade ]

After understanding the new food product development classifications, let’s look at the food product development process.

Food product development process : 8 steps

The food product development process consists of following 8 steps:

  • Idea generation
  • Evaluation & Screening
  • Market research
  • Product specification
  • Feasibility study
  • Production process development
  • Prototype development & testing
  • Launch & Commercialization

However, We will look into this food product development process, from starting to finalising and commercialisation one by one in detail.

new food product development (NPD) process flowchart

1. Idea generation

Two product development process start with an idea. This idea can come from any place or any source. Typically a company generate hundreds of Idea by brainstorming. Still, a handful of good ideas come to an end, and there are two sources of Idea generation from where we get an idea.

  • Internal source- the company finds new ideas interior utilising research and development and also, from the contribution from its employees.
  • External source – new ideas from external sources such as distributors, suppliers and competitors. But the most important external sources are customers because the new development process should focus on creating customer value.

2. Evaluation and Idea screening

The next step in NPD is idea screening. However, Idea screening means filtering the ideas to pick a good one. In Idea generation, we find different ideas, and in this stage, we screen to choose a good one. The reason is that product development cost rice greatly in later stages; therefore, the company e would like to go ahead only with the ideas that will turn into profitable products dropping the flawed ideas.

3. Market research

In this research, the company will know about consumer preferences and also the acceptance of products. all the primary and secondary markets study used to collect data. 

  • Primary research – is a method of taking surveys and getting original data.
  • Secondary research- analysing the data gathered in the primary survey investigating what found in the primary study.

Taking a survey to ask consumers what they want, what they need and whether they will accept the product. Also, The survey conducted to gather data & analyse, focusing on groups, gender, age, economic status, & geographical location, the research conducted to collect data.

Market research concludes that the products survive in the market or not. The company can decide whether to continue or discontinue the product.

4. Product Specification

The product specification method is a lengthy and complicated process. The process includes a description of a new product’s characteristics, including product description (forms and style), features and attributes such as flavour, texture, nutritional value, packaging, shelf life , raw materials, and supplier& Target market. 

Further, Consumer benefit includes nutrition, cost, convenience, quality. 

Pricing strategy- Pricing strategy includes selling the product price depending on the cost of competitive products, target market, and the ability to pay, company image, and product benefits.

5. Feasibility study of food product

The feasibility study conducted to check the viability of new products. In addition, The product should be technically and financially feasible. Determine whether the sales forecast’s production cost will achieve its break-even point and ability to make the new product using existing resources—availability of ingredients, new processes, cost of ingredients, microbiological safety test.

6. Production process development

A new product can be unique and different from the existing line or a simple line extension. So, according to that, the process is to developed. Involves converting factory to accommodate new product; line extension products only need minor changes. If the product is new, equipment and factory layout need to alter, involving raw materials, tasks, equipment, processing, quality management, packaging, labelling, and storage.

7. Food product Prototype development and testing

Prototype development is necessary to get an idea about large scale processes. Large scale production helps to manage production and storage. 

Prototype testing- Testing of a new product carried to see if it satisfies food standards. After the prototype undergoes testing, commercialisation (full-scale production and manufacturing) take place.

Quality testing -checks the effectiveness of quality management parameters and hygiene standards.

Sensory evaluation test market of field based on texture flavour colour and Aroma.

Packaging test – Test conducted to determine effectiveness handling storage durability e interaction effect of packaging. Storage trials to stimulate distribution retail in-home storage condition safety and quality after storage and establish shelf life.

8. Launch & Commercialization

Finally, the launching of the product in the market. Commercialization of developed product into the market and doing its marketing and advertisement is the next process. However, to check whether the launched product making enough sales and generating profits is required.

Conclusion- Food Product Development

In conclusion to our new food product development process. And we can say that this NPD process is lengthy. But Every food manufacturer has to follow this process to grow, sustain and compete in the market.

However, This product development process may vary from manufacturer to manufacturer according to their products, services, market and area of study.

What do you guys think about this process? If you liked this article then comment below your thoughts. If you have any suggestion or feedback please comment below.

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Food Product Development

© 2010 Innovation and Business Industry Skills Council Ltd. BSBMKG506B Plan market research Session 3 Define data gathering approaches.

food product development presentation 1

Stages of Product Development

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Starting a Business Conducting Start-up Market Research METHODS OF PRIMARY AND SECONDARY MARKET RESEARCH QUALITATIVE AND QUANTITATIVE RESEARCH SIZE AND.

food product development presentation 1

Marketing Research.

food product development presentation 1

[9.4] Market Research Essential idea: Market research is any organized effort to gather information about markets or customers.

food product development presentation 1

IDENTIFY AND MEET A MARKET NEED

food product development presentation 1

4.04 Understand marketing- research activities to show command of their nature and scope.

food product development presentation 1

Research Methodology.

food product development presentation 1

By: Chinwoo CHAPTER 25: MARKETING PLANNING. Marketing planning: The process of making appropriate strategies and preparing marketing activities to meet.

food product development presentation 1

Level 1 Business Studies AS90837 Demonstrate an understanding of internal factors of a small business.

food product development presentation 1

Insert Chapter Title Screen. Understand how marketing research can contribute to a firm’s competitive advantage. Understand that market research includes.

food product development presentation 1

Types of product development. Line extensions As consumers demands grow for a certain product, the manufacturing companies need to expand their sales.

food product development presentation 1

4. Marketing research After carefully studying this chapter, you should be able to: Define marketing research; Identify and explain the major forms of.

food product development presentation 1

 The goal of a market analysis is to determine the attractiveness of a market and to understand its evolving opportunities and threats as they related.

food product development presentation 1

Market Analysis and Target Market

food product development presentation 1

Business Management March 2, 2017, Marketing.

food product development presentation 1

Quantitative Methods for Business Studies

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How would this information be useful to a business?

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MARKETING RESEARCH.

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  • Food Products & Processing

Education Standards

Nebraska agriculture and natural resources standards.

Learning Domain: Food Products and Processing systems

Standard: Design a new food product.

Food Product Development

Ideas unlimited food product development.

Food Product Development

Students will develop a food product, as well as prepare and present about various aspects of the product, its marketing, and logistics. Written by Abby Knobbe

Food Product Development Lesson Plan

Interest Approach

Share the following information with students to demonstrate real-world marketing considerations for popular and common snack foods.  Include a taste test of the products if possible!  Encourage them to discuss what they see, ask questions, and wonder about the design behind other foods they buy.

Customer Segmentation table 11.3 from Introduction to Business (CC-BY Creative Commons License v4.0) 

Table 11.3 Source: Adapted from Frito Lay website, accessed October 1, 2017.

Content/Procedure/Activity

Instructions for food product development and presentation included in attachment.

Closure/Check for Understanding

Rubric for presentation included in attachment.

Students will develop a food product, as well as prepare and present about various aspects of the product, its marketing, and logistics. Developed from activity by Abby Knobbe

Essential Question

What influences decisions in the development of a new food product, from its name and ingredients to its packaging and advertising strategy?

Students will develop a comprehensive food product development plan that covers all essential elements, including the product's name, ingredients, preparation process, storage, target market, packaging, pricing, advertising, sales channels, shipping requirements, and competition analysis.

Students will conduct a thorough analysis of the competition for similar food products, demonstrating a deep understanding of the current market landscape. The objective is to identify key competitors, analyze their strengths and weaknesses, and formulate strategies to differentiate the proposed product effectively.

Students will infuse creativity into their presentation by incorporating innovative ideas, visuals, and an engaging presentation style. This objective emphasizes the creative aspect of the development plan, encouraging students to present their ideas in a compelling and visually appealing manner to capture the audience's attention.

Image Credit

Photo by davisuko on Unsplash

AFNR.HS.13.5.b Analyze strategies to create food products meeting and developing consumer trends.

Process Street

Food Product Development Process

Brainstorm product concept, conduct market research.

  • 2 Focus groups
  • 3 Online research
  • 4 Industry reports
  • 5 Competitor analysis
  • 1 Interviews
  • 2 Online surveys
  • 3 Observations
  • 4 Secondary data analysis
  • 5 Field tests

Create product formulation or recipe

Source raw materials.

  • 3 International

Prepare prototype product

Conduct consumer testing.

  • 1 Random sampling
  • 2 Online sign-ups
  • 3 In-store recruitment
  • 4 Targeted audience recruitment
  • 5 Focus group participants
  • 3 Appearance
  • 4 Overall liking
  • 5 Purchase intent

Approval: Consumer Testing Results

  • Conduct consumer testing Will be submitted

Adjust product formulation or recipe based on feedback

Develop packaging design.

  • 5 Biodegradable

Conduct shelf life testing

  • 1 Microbiological testing
  • 2 Sensory evaluation
  • 3 Chemical analysis
  • 4 Accelerated aging tests
  • 5 Challenge testing

Approval: Shelf Life Results

  • Conduct shelf life testing Will be submitted

Prepare production cost estimation

Approval: production cost estimation.

  • Prepare production cost estimation Will be submitted

Final approval of product formulation, recipe, packaging and costing

Production trial run, adjusting production process based on trial run results.

  • 1 Workflow optimization
  • 2 Equipment calibration
  • 3 Personnel training
  • 4 Ingredient sourcing
  • 5 Quality control measures

Final product production

Quality control testing.

  • 4 Physical analysis
  • 5 Quality attribute assessment

Approval: Quality Testing Results

  • Quality control testing Will be submitted

Market the product

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{{item.title}}, my essentials, ask for help, contact edconnect, directory a to z, how to guides, food technology 7-10 – food product development.

In this unit students examine a range of food product developments, the reasons for food product development and their effect on society.

Students investigate a range of emerging technologies in the food industry and outline the steps in food product development whilst designing their own food product.

Additional resources to support the teaching and learning of this unit:

  • Food product development program (DOCX 89 KB)
  • Food product development teacher workbook (DOCX 333 KB)
  • Food product development student workbook (DOCX 324 KB)
  • Food product development presentation 1 (PPTX 140 KB)
  • Food product development presentation 2 (PPTX 412 KB)
  • Food product development presentation 3 (PPTX 302 KB)

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Syllabus outcomes and content descriptors from Food Technology 7–10 Syllabus © NSW Education Standards Authority (NESA) for and on behalf of the Crown in right of the State of New South Wales, 2019.

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1.1: Introduction to Food Product Development

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  • Page ID 17800

  • Kate Gilbert & Ken Prusa
  • Iowa State University via Iowa State University Digital Press

To start, let’s think about what product development is:

  • How new things show up in the grocery store or in foodservice
  • The process of creating, processing, and commercializing a new food product
  • The process generally takes a group of people from different disciplines working together to develop (or improve) a product.

Product Development Key Stages

Formulation, commercialization.

At each stage, or even within the stages, there are checkpoints to decide to continue or stop the project. This can be done through a Stage and Gate System like the example shown here or it can be done in a modified system. The principle is the same, though, to develop new products strategically and use time and resources wisely.

Stages include Ideation, Formulation, Processing and Communication. Gates include New Product Concept Check, Market Check, Feasibility Check, and Competitive Product Check and Decision to Launch. From there the product is launched and the results are evaluated

Typically this Stage and Gate process works like a funnel. You may start with 12 to 15 ideas and then research and evaluate those ideas. Some ideas will get discarded because you will find the product concept already exists. Others will get discarded because the ingredients or processing will cost more than what consumers are willing to pay (based on products in the relevant category). Some ideas will seem great, but will be too niche and will not have a large enough target audience to be successful. Once the ideas have been narrowed down, the best 3 to 5 ideas may be moved to the Formulation stage. In this stage, the product will be made on a small scale and consumer testing will be done to confirm interest. Then products will go through the second gate to determine which products have enough consumer interest to continue. During the Processing stage, 2 to 3 products are scaled up on larger equipment. This helps determine production costs and efficiency. Food safety and quality testing also are done to determine how to produce a safe and consistent product. Shelf-life testing is conducted at the end of the Processing stage to make sure the product will remain at an acceptable and safe quality long enough for the product to made, shipped, purchased, and consumed. The third gate evaluates production, food safety, quality, and shelf life to decide which products can actually be made efficiently and consistently. The Commercialization stage includes work to get the product ready to sell on the grocery store shelves. Typically this includes the final costing, additional consumer sensory testing, and package design. The final gate makes sure that no errors or significant drawbacks have been missed before the product is launched. Through the Stage and Gate process, 12 to 15 ideas may get narrowed down to 1 or 2 products. The Stage and Gate process allows many ideas to be considered efficiently. The more viable the idea, the more time and work is needed. When an obstacle is found at a gate, no more time or resources are committed to that idea.

Each company may work through the stages of product development a bit differently depending on resources, timelines, and product types being developed. In a product development course, a product is likely developed from start to finish, so more market, consumer, and product research will need to be done during the ideation stage to catch significant drawbacks.

Often the most difficult part of product development is coming up with the initial idea. Many food products exist in the marketplace, so coming up with a new food product that does not exist and consumers are interested in buying can be a challenge. It is best to simply jump in and start generating ideas. From there, concepts can be refined and narrowed down. Ideas can come from a variety of sources. Some ideas are for a brand-new product and some are for a line extension of an existing product. Once ideas have been generated, it is important to identify the target customer. Trends are followed closely to determine what is new and upcoming. Trends often spark ideas for new products. Trends change over time, so it is difficult to list current examples, but convenience products, comfort foods, and plant-based foods have been trending over the last few years.

Some issues with ideation include regional vs. global preferences and market size vs. target market. Flavors that are commonly known and liked in the Midwest may not sell well in other parts of the country. Consumers outside of the Midwest may not like those flavors or may simply be unfamiliar with the flavors. If your target market is a small part of a product category and the product category itself is small, there may not be a large enough market share for your product. It also can be a challenge to realize that just because you like something, many others may not. We tend to develop products we like, but sometimes you may have to develop a product for a target audience that does not include you.

  • Procure ingredients and make them into a product on a small laboratory scale
  • Produce a “gold standard” of the new product
  • Sourcing ingredients and ingredient costs
  • Product shelf life (often not tested in formulation, but needs to be considered early in the process)
  • Can the product really be made on a large scale?
  • Avoid Patent and Copyright infringement
  • The formulated product process is “scaled up” to produce greater volumes
  • Pilot plant testing
  • Plant testing
  • There are always product changes with scale-up.
  • Quality & Proximate Analysis testing done to set specifications, determine food safety concerns, and estimate shelf life
  • Processing experiments and runs allow a more accurate product cost to be determined (include processing efficiency, rework used, etc.).

Processing Key Questions:

  • Sensory Attributes
  • Nutritional Profile
  • Product Specifications
  • Overall Functionality
  • Once the new product has been made successfully, it is sent to commercialization to launch the new product into the store for sale.
  • determining packaging
  • creating a label (logo, nutrition facts, etc.)
  • finalizing costs
  • developing advertising and/or literature for the product

Commercialization Key Questions:

  • How should the product be positioned for the best sales?
  • What attributes do you highlight?
  • Where does it go in the grocery store (should consider this throughout the development process)?
  • What effect will the distribution system have on product quality?

After the launch of a new product:

  • Determine if the new product was successful.
  • Growing interest, increase in sales
  • Market share
  • Company sales revenue

Key Team Members

It takes many roles to develop a new food product. A product development team can be very successful with all members contributing an expertise. The challenge is communicating effectively to make sure everyone is on the same page with the status and goals of the project. Key team members include product development, engineering, production, purchasing, quality, regulatory, marketing, sales, and upper management. Their typical roles are laid out below.

Product Developers

  • In charge of developing new products, especially in terms of the hands-on testing and managing the development process
  • May be the Team Leader
  • Formulate Product
  • Determine Sensory Attributes
  • Run Shelf Life Testing
  • Know Food Safety Concerns
  • Test the Process
  • Consider Nutrition
  • Calculate Costs (may need input from others)

Engineering and Production

  • Equipment Design and Maintenance
  • Process Controls
  • Production Costs (line speeds, overhead cost)
  • Employee Training
  • Consumer Safety
  • Consumer Handling
  • Ensures consumer expectations are met
  • Sensory and Quality attributes are tested to make sure the product meets specifications
  • HACCP and Preventative Controls plus Prerequisite Programs
  • Microbiology Testing
  • Foreign Material Testing
  • Process Checks
  • Incoming ingredient and packaging safety checks
  • Makes sure the new product is legal and safe
  • Coordinates a Generally Recognized As Safe (GRAS) dossier if necessary (typically for ingredient development)
  • Product Name
  • Standard of Identity
  • Nutrition Labeling
  • Product Codes

Marketing & Sales

  • Defines product market and positioning
  • Confirms consumer need for a new product through surveys and consumer data
  • Develops advertising strategy
  • Monitors competitor’s sales and new product introductions
  • Helps design product packaging, especially tied to attracting the target audience
  • Has input on the product name

Challenges of Product Development

  • Just because you think it is a good idea, does not mean everyone else does.
  • Sometimes things just do not work like they are supposed to (scale-up changes product characteristics, shelf life is not long enough, low consumer acceptance, etc.)
  • Ingredient sourcing and costs
  • Processing and equipment limitations
  • Area of Expertise
  • Goals and Objectives
  • Ability to understand other disciplines
  • Can be overlap or gaps in functions depending on company structure

Timeline for new product development

  • A line extension for an already existing product
  • Example: A new flavor of a popular soda
  • A new product, but still can be made on existing equipment
  • Example: A new type of cereal
  • A brand new product – could be hard to make or new equipment may need to be designed/purchased.
  • Examples: co-extruded snacks and plant-based meat alternatives
  • Developing a new ingredient often takes longer than developing a finished food product because there are more regulatory and sales hurdles involved.

Recap on the Product Development Process

  • Product Development is the process of creating, processing, and commercializing a new product.
  • New products need to be of interest to a target market.
  • The timeline can range from 3 months to 3 years.
  • Product development teams are made up of members with a variety of backgrounds.

Product Development Scope

It is important to be able to ideate openly & creatively. However, ask yourself, “Does the product already exist?” and “What are our company’s new idea limitations?”. Below are common limitations for product development courses:

  • Avoid mixes, line extensions, and assembly products.
  • Avoid expensive ingredients or be ready to discuss how to pay for them.
  • Typically a course does not have an alcohol license.
  • CBD oil is not yet legal in food items in some states.
  • Processing equipment availability needs to be considered for your new product idea.

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New Food Product Development And Launch Timeline

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Food Product Development. Geoff Walker http://sst.tees.ac.uk/external/U0000504/Notes/mscnotes/. New Product Development. Why NPD? Types of NPD The NPD cycle. The need for new product development. Product Life Cycles Remain competitive Consumer/Customer Needs New Technology

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Food Product Development Geoff Walker http://sst.tees.ac.uk/external/U0000504/Notes/mscnotes/

New Product Development • Why NPD? • Types of NPD • The NPD cycle

The need for new product development • Product Life Cycles • Remain competitive • Consumer/Customer Needs • New Technology • Government Regulation

Product development • Essential to the survival of a company • Thousands of “new” food products are launched every year • Most new products are “line extensions” • Only a few hundred will survive for a year

Product development adds value in several ways PRODUCT DEVELOPMENT GROWTH PRODUCTIVITY QUALTITY BRAND IMPROVEMENT MAINTENANCE • Conformance • Special Situations • Regulatory • Environmental • Specifications • Quality of Design • Competitive Advantage • Reduce Cost • Formulas • Packages • Manufacturing Procedures • Line Extensions • New Products • New Packages

Product Development • Complex - generally market driven • Requires the integration of marketing, R&D, processing and legal functions of a company • Success only comes with careful planning and execution • Teamwork absolutely essential

Company Mission Company Objective Company Strategy Company Plans Why Do We Exist? Where We Want to Go? How Will We Get There? What Do We Do Now? To avoid chaos, a hierarchy must exist to guide product development • Programmes • Product Development • Projects Tasks

To ensure success, you need good strategic management and good product development execution STRATEGIC MANAGEMENT PRODUCT DEVELOPMENT EXECUTION SDG 8/18/95

Companies Need to Address Strategic Planning on Several Levels Mission Objectives Identity Mission Objectives Company Strategy Business Units PRODUCT STRATEGY Business Strategy • Technical Competencies • Strategic Principles • Organization • Alliances Categories PRODUCT PORTFOLIO STRATEGY Portfolio Strategy Brands • Project Mix • Milestones • Resource Levels PRODUCT DEVELOPMENT STRATEGY Project Strategy • Resource Allocations • Technical Approaches • Timing • Deliverables Projects

Product Development Cycle • The idea • Technical and commercial feasibility • Product formulation and testing • Costing • Production requirements • Commercial launch

The idea • Ideas generation • brainstorming, • focus groups • the MD wants it, • Types of new product • uniquely innovative, • Line extensions, • repositioned products.

Technical & Commercial feasibility • Commercial feasibility • What is the market? • Regional/national preferences. • Market size vs. consumer preference • Personal likes/dislikes • New trends • Technical feasibility • Can we produce the product? • Will it need significant investment? • How does it compare with existing products?

Product formulation and testing • Recipe development • Sensory & consumer acceptance testing • Product specification • Pricing & preliminary costing • Nutritional value

Production requirements • Process flow, • Equipment types, • Risk assessment, • Shelf life, • Product quality, • Packaging, storage & distribution

Costing • Fixed costs • Variable costs • Break even point • Profitability

Commercial launch • How and where to launch? • Local acceptability trials • publicity & advertising

What can go wrong? • New products can fail at every stage of the development cycle • Inadequate consumer research • Lack of management support • Poor communications • Inadequate documentation • Inadequate training • Technical reasons • Legal reasons • Insufficient financial return • Costs too high • Price too low

Critical success factors • The success or otherwise of a new product can be due to a number of factors, but ultimately it comes down to • PEOPLE • and their understanding of all aspects of the product , process and package requirements • Product failure can occur at any step in the development and final product stage • Communications and vigilance and management support are key factors in ensuring success

Acknowledgement A number of slides in the presentation have been based on material produced by Prof W. James Harper of Ohio State University.

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Need help with developing a new product to introduce in the market? Or to customize according to the consumer preferences? Or you want to advance the technology to capitalize unique opportunity? Or Creative product that can be used to promote your Brand? We offer following service to our client: u2022tIdea generation informed by market, health & u2022tnutrition and consumer insights u2022tRegulatory and food safety innovation check u2022tScience based idea realisation u2022tFormulation u2022tPrototype u2022tRecipe optimisation u2022tLaboratory testing u2022tPilot plan experiments assistance u2022tPlant trials To continue Reading: https://bit.ly/3kjHW0R ContactUs UK: 44- 74248 10299 [email protected] INDIA: 91 9566299022

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