Carol Scott Product Life Cycle Product development process Line extensions Rebranding of existing products Product placement 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 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 (1) buying a whole company, a patent or a licence to produce someone else’s product e.g. Coca Cola and Tesco (2) within the company’s own Research and Development (R& D) department (3) approaching suppliers and asking them to come up with several new concepts New product development starts with idea generation There are different methods in generating new ideas e.g. In-depth interviews, consumer panels 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 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 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’ 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 medley bar digestives 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 At this stage Research & Development develops the product concept into a physical product Kitchen trials Factory scale trials Production runs 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 Yes No McShrimp Burger Yes No Yes No Gourmet Snails Yes No 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 guess the product 2 guess the product 3 guess the product 4 Successful commercialisation requires manufacturers to follow all the stages outlined Listening to consumers is key to creating and producing a successful product If a product is launched too late for its key selling season The launch is aimed at the wrong target audience snickers chocolate bar galaxy bar New Product Development ◦ An absolutely brand new product ◦ Many stages involved to create finished product ◦ Never before produced ◦ Usually very costly to develop and produce initially Remember a new product must appeal to customers, food manufacturing company or a food service organisation Rebranding of Existing Products How many brands can you find?? Wayne's World Products go through eight different stages New products are becoming the focus of competition Marketing your product correctly is key to success Companies can rebrand or extend existing products Earle, M. Earle, R and Anderson, A. (2001). Food Product Development, Cambridge: Woodhead publishing Limited. Fuller, G.W. (2005). 2nd ed. New Food Product Development: from concept to marketplace, United States of America: CRC Press Graf, E. And Saguy, I.S. (1991). Food Product Development: from concept to the marketplace, Chapman and Hall: International Thomson Publishing.