The Art of Product
Development
by Angela (Laury) Shaw
Or is it Luck?
Outline
• Current Statistics
• Market Trends
• Steps behind Product Development
• After Thoughts
• Classes Available at ISU
Current Statistics
• Typically…
– “60-80% of New Products Fail”
• Casey Frye from Burke Corporation,
Nevada, IA.
– About 70-80% failure of new products (lineextensions)
– Higher, 80-90% for Truly new
Market Trends (General)
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Healthier Foods
Convenience (Microwaveable Meals)
Ethnic Favors
Meal Drinks
Organic Foods
Whole Grains
Low Fat (Trans Fats) & Low Carb. (?)
Market Trends: Meats
• Poultry ( chicken and turkey)
• Value Added products
• Ingredients and flavorings
• Complete Meal Dishes
• Meat Snacks (jerky’s, condiments, etc.)
Steps behind a New Product
1.
Idea Generation
2. Marketing/Competition Analysis
3. Formulation (2 steps)
4. Product Testing Methods
5. Process Development & Scale-Up
6. Commercialization
Idea Generation
• Decisions:
– Go into the market (multiple ideas)
– Get creative
– Market choice (ex. Snack food, entrée)
– Target market ( who & where?)
– New or Improve
– Need for product?
Marketing
• Do research: Sources
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US Department of Commerce
Trade Associations, Publications, & Shows
Trend Monitoring
USDA Foreign Ag Services
• Marketing Options
– Multiple markets
– How many products on Market?
Competition Analysis
• Need an idea:
– Who is your Competition?
– Marketplace
• Stores & Location (Everywhere in the US?)
– Prices
– Target Market
– Gimmicks (why are they special?)
• Packaging & Nutritional Claim
Formulation: Step 1
• Start with a recipe
• Do multiple version with modifications
• In house consumer testing
• Need a Gold Standard
Formulation: Step 2
• Ingredient substitution
– Cost efficiency matters
– Example: Onion powder instead of onions
• Instrumental test
– When is it Gold Standard?
Possible Testing
• Consumer
– In house testing, special panels, etc.
• Instrumental testing (Gold standard)
• Shelf life testing (Labeling and recalls)
• Nutritional testing (Strict laws)
• Test Markets
Process Development
• Needs:
– Process control solidify
– Equipment needs
– Distribution needs
– Personnel Needs
– Ingredient Supply Needs
Scale-Up
• Move to plant situation
• Batches are 10-15 times bigger
• New rules, laws, protocols, management
• Know process, mixer, mixture, Gold
Standard
• Major problem step
Scale-Up: Concerns
• Distribution (special handling)
• Safety Issues (Micro, allergens)
• Equipment (temp., times, speeds, etc.)
• Packaging (Fill of container)
• In process tests (moisture, rheology,
appearance, taste, etc.)
IS THIS GOLD STANDARD?
Commercialization
• R&D
– Home Use Test
– Shelf life tests
– Final product specifications
– Label and Packaging
– Final market report with profits
Commercialization
• Marketing Division (if there is one)
– Clarifies target market (demographics)
– Finds stores ( grocers, internet, TV)
– Advertisement (TV, ads, etc.)
After Thoughts
• Competitive Market Place
– Not high success rate of products
• Great job if
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Creative
Fast pace
Problem solver
Love challenges
Always a need
Job Possibilities
• Include:
– Food/Meat Scientists
– Microbiologists
– Chefs
– Engineers
– Business/Management
– Accounting
Some Classes Available
• FSHN 412/512: Product Development
• FSHN 406: Sensory Evaluation
• FSHN 403: Food Laws
• MKT 447: Fund Consumer Behavior
• MKT 448: Fund International Marketing
Questions?
So is it Luck?