Product Development Slides

FOOD PRODUCT DEVELOPMENT
&
SENSORY EVALUATION
BY
George Gafabusa
11/25/2022 Food Product development 2019/2020 1

Course Overview
• This course is designed to provide students with a basic
understanding of the product development process in the
commercial food industry.
• Through lectures, field trips, and hands-on formulation
activities, students will learn how to successfully initiate,
organize, and carry out a product development project.

Objectives and Learning Outcomes
Course Objectives:
• Gain an understanding of the processes involved in the invention

process, formulation, and development of new food products.
• Develop an appreciation of the food industry and how innovation

is critical to the industry.
• Cultivate basic food science principles to problem solve during

product development.
• Develop and enhance team cooperation and communication

skills.
Objectives and Learning Outcomes
Specific Learning Outcomes:
1. Successfully produce food prototypes or food concepts.
2. Formulate products by preparing laboratory samples and sourcing raw
materials.
3. Develop formulations to meet cost targets, ingredient statement, nutrition
profile and sensory attributes of desired product.
4. Select optimal packaging system and materials that align packaging
requirements with product quality attributes, product compatibility, line
processing, sustainability and costs.
5. Determine label and nutrition facts specifications according to regulations for
nutrition, product naming, and claims.
6. Determine food preservation technologies to address microflora in products or
ingredients.
7. Assess microbiological risks from raw ingredients to finished product.
8. Design effective food safety plans (HACCP).
9. Create and present effectiveFood
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Product development 2019/2020 communication materials.
4
Learning objectives for session 1
i. To understand why new products are developed.
ii. To note the key areas of product development in the past
10-15 years.
iii. To appreciate why products may fail.
iv. To understand the product life cycle.

Introduction
• Food product development is a growth area of activity & employment in many countries.
• To be profitable & to survive, food companies seek new products.
• Name one food processing company and state the different new products over time.
• If successful, new products give new life to a company, replacing products no longer selling
well. Give an example

• Old bell-ringer products cannot be relied on year after year to be profitable.
• New product development or finding new uses for old products is essential for continued
growth of a company.
• New products are one of a few ways a company can follow for increased profitability.
• Developing new products is a complex process - requiring knowledge of ingredients,
processing techniques, packaging materials, legislation & consumer demands &

preferences.
Introduction
• Developing new products requires talented personnel,
extensive research, suitable physical facilities, and money.
• Such human and physical resources are expensive.
• Nevertheless there is no promise that any new products

developed through these resources will be successful
enough to justify their expense.
• The obviousness of the need for new product is apparent to

any11/25/2022
novice food technologist.
Food Product development 2019/2020 7
Definitions of terms used in product
development
1. Product development
 The creation of products with new or different characteristics that offer new or additional
benefits to the customer.
 Product development may involve modification of an existing product or its presentation, or
formulation of an entirely new product that satisfies a newly defined customer want or market
niche.
2. Product design
 The detailed specification of a manufactured item’s parts & their relationship to the whole.
 A product design needs to take into account how the item will perform its intended functionality
in an efficient, safe & reliable manner.
 The product also needs to be capable of being made economically & to be attractive to targeted
consumers.
3. Product positioning and product repositioning

 Refers to a place a product offering occupies in consumer’s minds on important attributes,
relative to competing offerings.
 How new & current items in the product mix are perceived in the minds of the consumer.
Therefore, emphasizing the importance of perception.
Definitions of terms used in product development
4. Attribute
 An attribute is a property of a food that the customer desires. Most
customers are looking for multiple attributes in a product and these
attributes are expected to remain constant throughout the shelf-life of the
product. Give your experience.
5. Concept
 A concept is a promise a product makes to resolve an unmet consumer
need, the reason why it will satisfy the need, and a description or portrayal
of any key element that will affect the perception of the product.
Example….
6. Protocept
 A protocept is a product developed in the laboratory to meet the promises
of the product concept. A protocept may not be technically feasible.
Definitions of terms used in product
development
7. Prototype
 A prototype is a the product that has been developed to meet the promise of
the concept.
8. Final product
 After optimization of the prototype, a final product is developed, ready for
launching.
9. Consumer
 An individual who buys products or services for personal use and not for the
manufacturer or resale.
 A customer is someone who can make the decision whether or not to purchase
an item at the shop/supermarket & someone who can be influenced by
marketing & advertisements.
New product development (NPD)
 The term used to describe the complete process of bringing a new
product to market.
 There are two parallel paths involved in the NPD process:
i. The idea generation, product design and detail 'engineering';
ii. Market research and marketing analysis.
 Companies typically see new product development as the first stage;
i. In generating & commercializing new products within the overall

strategic process of product life cycle management,
ii. Used to maintain or grow

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Product development share. 11
Defining & Characterizing New Food
Products
The new product development process introduces many new terms &these
terms must be defined & understood for complete understanding of the
process.
1. New product
Two simple definitions of a new product are as follows:
The one not previously manufactured by a company & introduced into the
market by the company. Rare occurrence.
The presentation or rebranding by a company of an established product in a
new form, a new package or under a new label into a market not previously
explored by that company. Food Product development 2019/2020

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Characteristics of New Food
Products
Some characteristics of a food product providing newness for a
company are;
i. Product has never before been manufactured by that company.
ii. Product has never before been distributed by that company.
iii. An old established product manufactured by a company is
introduced into a geographically new area by that company.
iv. An old established product manufactured by a company is
introduced in either a new package or a new size or a new form.
v. An old established product manufactured by a company is
introduced into a new market niche, i.e., positioned as one with
a new function.

General Characteristics of Classes of New Food
Products
Types of New Product General characteristics
1. Line extensions  Little time or research required for development.
 No major manufacturing changes in processing lines or major
equipment purchases.
 Relatively little change in marketing strategy.
 No new purchasing skills (commodity trading) or raw material
sources.
 No new storage or handling techniques for either the raw
ingredients or the final product. This means that regular
distribution systems can be used.
2. Creative products  Generally heavy need for extensive research and development,
therefore a costly venture.
 Extensive development time may be required.
 May require entirely new plant and equipment. Degree of creativity
 may require development de novo of unique equipment.
 Basically will require total revision of marketing and sales forces.
 Creation of a new company or brand may be required.
 Risk of failure high.

General Characteristics of Classes of New Food
Products
Types of New product General characteristics
3. Repositioned existing  Research and development time is minimal.
product  Manufacturing is comparatively unaffected.
 Marketing must develop new strategies and promotional
materials to interpret and penetrate the newly created
marketing niche.
 Sales tactics require reevaluation to reach and make sales
within the new marketplaces.
4. New form or size of existing  Highly variable impact on research and development.
product  Highly variable impact on physical plant and
manufacturing capabilities. Major equipment purchases
may be required if manufacturing to be done in-house.
 Marketing and sales resources will require extensive
reprogramming.

General Characteristics of Classes of
New Food Products
Types of New product General characteristics
5. Reformulation of existing  Moderate research and development required consistent
product with reformulation goal.
 Generally little impact on physical facilities.
 Generally little impact on marketing and sales resources
unless reformulation leads to repositioning of product.
6. Repackaging of existing  The novelty of the repackaging will dictate the amount and
product degree of research and development required.
 Slight impact on physical facilities. New packaging
equipment will be required.
 Little impact on marketing, sales, and distribution resources.
7. Innovative products  Amount of research and development dependent on the

nature of the innovation.
 Highly variable impact on manufacturing capabilities.
 Possible heavy impact on marketing and sales resources.
Examples of the Different Types of
New Products
Type of New Product Examples of Category
1. Line extensions  New flavors for a snack product such as potato chips
 New flavored bread-crumb coating
 A coarser or more natural peanut butter
2. Repositioned existing product  Soy-containing products repositioned as dietary
factors combating cancer
3. New form of existing product  Fast-cooking products such as rice or oats
 Instant coffees, teas, and flavored coffees
4. Reformulation of existing products  Low calorie (reduced sugar, fat) products
 High-fibre products
5. New packaging of existing product  Single-serving sizes of, for example, yogurt
 Branded fruits and vegetables
6. Innovative products  Canned snack food dips
 Frozen dinners
 Simulated seafood products
7. Creative products  Extruded products
 Short-chain fatty acid containing products
Skills & qualities needed in food product development
i. In-depth knowledge of food, ingredients & global cuisines
ii. Well developed practical skills
iii. A passion for food which is brought to bear on the job
iv. A desire to research new trends
v. An understanding of the science of food (food chemistry &

nutrition)
vi. Up-to-date knowledge of the food retailing market
vii. The ability to generateFoodnew

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ideas that work
Product development 2019/2020 18
Why develop new products
• To remain in business & retain a competitive position. Companies need
to produce new products, maintain or expand their market share &
know what their competitors are producing.
• The aim is to meet the needs of the consumer at a profit. For a product
to be developed it must be:
i. Economically viable;
ii. Technically viable.
• Financial, technical & sales forecasting will be undertaken for new

products
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to estimate the potential of the area.
Food Product development 2019/2020 19
Key areas of new product
development
During the past 10 – 15 years key areas of new product
development have been:
i. Producing ‘convenience’ foods – in response to changing

lifestyles;
ii. Providing products with altered nutritional content –

following the increasing public interest in nutrition, diet &
health, e.g. low fat products.
Key areas of new product
development
Other key areas of new product development have also been:
i. Increasing the variety of products available–to provide more choice.
ii. Producing ‘economy’ lines – to appeal to people on lower incomes.
iii. Appealing to the ‘luxury’ market – to attract more affluent

customers of those who wish to give an impression of status.
iv. Maintaining & improving product quality – to retain customer

loyalty.

How many products fail
 Many products will not make it through to final launch, but will
fail at an earlier stage of development. For every 100 ideas,
approximately 10 products are launched , giving a 90% failure
rate.
 A year later, only one of these ten products will still be on sale.
In order to spread the financial risk, a company is likely to have
a number of products under development at the same time.
Why do some new products fail?
Reasons for failure may include:
i. No difference between new and old product (50% failure).
ii. Tough competition.
iii. Unsatisfactory distribution (very popular).
iv. Rising cost of ingredients, production and packaging.
v. Low profits.
vi. Ineffective advertising.

Why do some new products fail?
 Other reasons for failure may also include:
i. Poor, unattractive packaging.
ii. Food scares.
iii. Politics.
iv. Environmental concerns.
v. Bad timing.
vi. Poor product positioning on shelf.
vii. Too innovative (ahead of its time).

Product life cycle
• The life of a product includes its time in development and
the time it is in the market. It usually consists of the
following stages:
i. Development;
ii. Introduction;
iii. Growth;
iv. Maturity;
v. Saturation;
vi. Decline.

Product lifecycle
• To prevent a decline in sales, companies usually employ
marketing tactics to boost sales, such as:
i. Money off vouchers
ii. New pack sizes
iii. ‘New’ and ‘improved’ varieties
By doing this, sales of particular products can remain level for

long periods of time.
Introduction to markets &
marketing concepts
Introduction
Product development;
• Is essential for the survival of a company.
• A complex process that is generally driven by market forces.
• Requires the integration of marketing, R&D, processing and legal functions of the company.
There can only be success of the product development process when careful planning and execution have been taken
into consideration.
Since there are many different departments of the company involved, success of the product development process is
hinged on teamwork.
The totality of the farm input, farm production, and food marketing processes is sometimes referred to as
Agribusiness.
Agribusiness marketing makes use of the managerial approach to agricultural marketing.
The managerial approach is a process whereby management systematically identifies the needs of customers and
then creates a marketing program that will satisfy those needs.

In this chapter we focus on the marketing management process in three main areas (a) analysis of marketing growth
opportunities, (b) market targeting and segmentation, and (c) decision on the firm’s marketing mix.
Markets
• What is the difference between market & food marketing?
• Who make up the market?
• What is market chain?
• Do we need to market the products developed?

What is a market?
• Markets are composed of:
i. Buyers
ii. Sellers
iii. Institutions and infrastructure
iv. Others behind the scenes: importers, processors, storage owners, wholesalers, credit
suppliers, government officials and policies
• Markets are where buyers and sellers come together to obtain information and
exchange commodities.
• A commodity is something tangible, that has value and can be exchanged.
• A market chain includes all levels of the market and actors that have a role in the
distribution and transformation of the commodity.
Customer
Retailer
Wholesale
r
Processor
Farmer
In a Market Chain commodities flow
from producers to consumers
Types of Markets
Along a market chain, each trader buys and sells at
different prices
Source: FEWs (2008) Market Analysis and Assessment. Lesson 1,

p. 5
The Market Chain +Business Support Services
Consumption
Retailing
Trading Research
Transportation
Processing
Govt. policy regulation
Communications
Trading
Production input supply
- -
Post-harvest
handling Tech. & business training & assistance
Production Financial services

Market information and intelligence
Marketing concepts
Marketing management process
This is done in three main areas;
(a) Analysis of marketing growth opportunities.
(b) Market targeting and segmentation.
(c) Decision on the firm’s marketing mix.

1. Analyzing Market Growth Opportunities
The marketing concept has three basic characteristics:
i. An orientation toward the customer.
ii. A coordinated effort in the company.
iii. Recognition that profits are necessary and important.
Note: A firm that employs the marketing concept is referred to as
market-oriented.
Analyzing Market Growth
Opportunities
Three major classes of market growth opportunities/strategic planning methods:
i. The intensive growth opportunities
o market penetration
o market development
o product development
ii. Integrative growth opportunities
o Backward integration
o Forward integration
o Horizontal integration
Analyzing Market Growth
Opportunities
iii. Diversification growth opportunities
o Concentric diversification
o Horizontal diversification
o Conglomerate diversification
Major classes of market growth opportunities
2. Market targeting & segmentation
Base on the following to segment customer markets:
i. Geographic segmentation
ii. Demographic Segmentation
iii. Psychographic segmentation
iv. Behavioral segmentation

Determination of Marketing
Goals
• After segments have been established, match these results to
your marketing goals
1) What are your goals wrt this (these) product(s)(i.e., promotion or
penetration)
2) Product development: new or improved version (microwaveable vs.

frozen block)
3) Market development: motivating people to buy the product (healthy vs.

saturated fats)
4) Product diversification: adding products to the product line (4 oz. fillets

in garlic/lemon or Cajun spice)
3. Marketing mix
• The set of marketing tools that the ﬁrm uses to pursue its
marketing objectives in the target market.
• A four-factor classification of marketing-mix tools is called
the Four Ps: Products, price, place (i.e. distribution) &
promotion.
Promotional tools
i. Advertising: Public presentation, making product known to
people, public announcements using television, news papers
& billboards.
ii. Personal selling: personal confrontation & cultivation of

buyer’s interest.
iii. Sales promotion: Make use of coupons, contests & premiums.
iv. Publicity: Use high publicity/dramatized strategies such as

new stories, features so as to catch the customer off guard.
Pricing decisions
Pricing is all around us & bears alternative names:
i. Rent
ii. Fee
iii. Fare
iv. Rate
v. Interest
vi. Bribe
vii. Honorarium
viii. Dues
ix. Salary
x. Wage
xi. Income
xii. Dues
xiii. Etc.
Pricing decisions
Selecting the pricing objective
i. Survival: Charge low prices because survival is more important than profit maximization.
ii. Current profit maximization.
iii. Market share leadership: Charge low price to have a large market share hence ensure long run higher
profits.
iv. Product quality leadership: Charge high prices resulting from improved quality but excellent services.
Selecting a pricing method
v. Cost-plus pricing: Add a standard mark-up to the cost of the product.
vi. Break-even analysis & target-profit: e.g. 20% profit on its investment.
vii. Perceived value pricing: Charge prices based on buyer’s perception of value of good and not the seller cost.
viii. Going rate pricing: Charge competitors prices.
ix. Sealed-bid pricing: Firm bases price on expectation of how competitors will price. The firm wants to win
the contract and this requires pricing lower than the old firms.
Developing, testing &
launching new products
Introduction
 A company can add new products in two ways;
i. Acquisition. Can be effected by searching and buying new companies, buying patents
from other companies, and buying a license from another company to make that
company’s products or services.
ii. New product development.
 Developing new products is costly
 Developing new product has a high rate of failure.
 New product development can take two forms;

i. Develop new products in a company’s own laboratories
ii. Contract agencies to develop specific products for the firm

Introduction
 There are generally six categories of new products in terms of their newness to the
company & to the market place:
i. New products that created an entirely new market.
ii. New products that allow a company to enter an established market for the first
time
iii. New product that supplement a company’s established product lines
iv. New products that provide improved performance or greater perceived value
and replace existing products
v. Existing products that are targeted to new markets or market segments
vi. New products that provide similar performance at lower cost.

Stages in the New Product
Development Process
 There are nine stages in the new product development process:
1. Idea generation
2. Idea screening
3. Concept development and testing
4. Marketing strategy development
5. Business analysis
7. Market testing
8. Commercialization
9. Consumer adoption
Idea generation
In idea generation, new product objective such as high cash flow or market share
domination must first be defined.
In addition, it should be decided how much effort should be devoted to developing

original products, modifying existing products, and copying competitors’ products.
Sources of new product ideas
i. Customer needs and wants which could be identified by customer surveys and
projective tests.
ii. Scientists’ innovativeness.
iii. Monitoring competitors’ products distribution and supplies.
iv. Sales representatives & middlemen.
v. Top management of the firm.

Idea generation
Criteria that the ideas must follow
Thinking up ideas is not a problem but successful ideas must follow

the following criteria:
i. They must satisfy the needs & desires of consumers
ii. The idea must also be within the skill level & technical capabilities of the
company.
Note: New product ideas are not likely to succeed if companies do

not answer all consumer-oriented information generated from the
marketplace & fully employ their strength.
Idea generation
Techniques used to generate Ideas
i. Attribute listing which call for first listing the major
attributes of an existing product & then modifying each
attribute in the search for an improved product.
ii. Morphological analysis
iii. Need/problem identification
iv. Brainstorming
Idea generation
Why generate ideas for new products?
 Factors from research, market or consumers:
i. A new niche is discovered through market research,
consumer groups, brainstorming etc.
ii. Consumer complaints or feed back on current products.
iii. Products for expansion of current range
iv. Change in cost and availability of food ingredients
v. Availability of new technology
vi. Competitors (price or quality of products)
vii. Trends in market
viii. Reviving of old ideas
ix. Governing guidelines & recommendations.
Idea generation
Why generate ideas for new products?
 Factors from company
i. Attempt to fully utilize processing plant
ii. Intention to utilize waste in a more profitable manner
iii. Reduction of production cost
iv. Improvement on efficiency due to new research findings.

3
New-Product Development and

Product Life-Cycle Strategies
Learning Objectives
At the end of the session, you should be able to:

1. Explain how companies find & develop new-product ideas
2. List & define the steps in the new-product development
process & the major considerations in managing this
process
3. Describe the stages of the product life cycle
4. Describe how marketing strategies change during the
product’s life cycle
5. Discuss two additional product & services issues: socially
responsible product decisions & international product &
services marketing
Chapter Outline
1. New-Product Development Strategy
2. New-Product Development Process
3. Managing New-Product Development
4. Product Life-Cycle Strategies
5. Additional Product and Service Considerations

New-Product Development Strategy
A firm can obtain new products through:
• Acquisition
• New-product development
Acquisition refers to the buying of a whole company, a patent, or a

license to produce someone else’s product
New product development refers to original products, product

improvements, product modifications, and new brands
developed from the firm’s own research and development
Reasons for new product failure

• Overestimation of market size
• Poor design
• Incorrect positioning
• Wrong timing
• Priced too high
• Ineffective promotion
• Management influence
• High development costs
• Competition
New-Product Development Process
1. Idea generation
2. Idea screening
3. Concept development and testing
4. Marketing strategy development
5. Business analysis
7. Test marketing
8. Commercialization
9. Consumer adoption
Idea Generation
New idea generation is the systematic search for new
product ideas
Sources of new-product ideas

• Internal
• External
Idea Generation
Internal sources refer to the company’s own formal research and

development, management and staff, and intrapreneurial
programs
External sources refer to sources outside the company such as

customers, competitors, distributors, suppliers, and outside
design firms
Idea Screening
Idea screening refers to reviewing new-product ideas in

order to drop poor ones as soon as possible
Concept Development and Testing
Product idea is an idea for a possible product that the company can
see itself offering to the market
Product concept is a detailed version of the idea stated in

meaningful consumer terms
Product image is the way consumers perceive an actual or potential

product
Concept Development and Testing
Concept testing refers to new-product concepts with

groups of target consumers
Marketing Strategy Development
Marketing strategy development refers to the initial

marketing strategy for introducing the product to the
market
Marketing Strategy Development
Marketing strategy statement

• Part 1:
• Description of the target market
• Product positioning, sales, market share, and profit goals
• Part 2:
• Price, distribution, and budget
• Part 3:
• Long-term sales, profit goals, and marketing mix strategy
Business analysis involves a review of the sales, costs, and

profit projections to find out whether they satisfy the
company’s objectives
Product development involves the creation and testing of

one or more physical versions by the R&D or engineering
departments
• Requires an increase in investment

Stages of Product
Development
Stages of Product Development
Product development is the process of creating new or modified food

products.
The aim of product development is to increase sales and maintain a
company’s competitiveness. The process of product development
involves a complex series of stages, requiring the combined talents of
many specialists to make it successful. Manufacture of products is
controlled throughout to ensure that the original specification is met.
The products should fill a gap in the market. In addition, consumers
must be tempted to buy the new products in preference to similar
products.
Initial ideas
There must be a concept for the product. This is attained in a variety

of ways such as conducting market research, analysing consumer
trends or modifying existing products.
Usually the marketing department will provide the product
development team with a brief for the type of product they want.
Test kitchen
Research is carried out, to formulate a number of recipes and specify

the ingredients to be used. Several versions of the product are
usually made, using slightly different ingredients or processes, i.e.
the products are prototyped in the company’s test kitchen , often by
a professional chef or food consultant.
A small number of staff, experienced in sensory evaluation, test the
products and evaluate them informally. On some occasions, if a
company does not have a test kitchen, an initial concept for a
product is sent to an independent developer.
Sensory evaluation
It is usual for sensory evaluation to be carried out at many stages of

the development process. Trained assessors comment on the
appearance, odour, taste and texture of the products to make sure
that the product being developed displays the desired
characteristics. The assessors are able to do this with great
accuracy.
Pilot plant
When an acceptable product has been made in the kitchen it is then

produced using pilot scale equipment. A pilot plant is a small version of
the equipment used in manufacture. Many manufacturers have these
facilities.
They produce the product on a small scale, but in the same way as it
would happen during large scale manufacture. This allows them to judge
whether the product can be successfully produced on a large scale, and
whether it meets the original specification. Enough product must be
made for market research and sensory evaluation to be undertaken.
Sensory evaluation
Additional sensory evaluation and recipe modification can be undertaken

to deal with any problems which are identified at the pilot plant stage.
Product specification
After testing and modifying the product on the pilot

plant, a final product is created. This details exact
ingredients and precise methods of production.
The specification is very important as it will be used for
the production of each batch of the product to ensure
consistency.
Consumer testing
Many manufacturers test new products on potential

consumers before moving on to large scale
production.
If the new product is targeted at a particular group
of the population, the consumers will be selected
from that group , e.g. vegetarians. Otherwise, the
company will try to ensure that different sub-
groups are represented, e.g. males and females
from a variety of backgrounds across a range of
ages.
Consumer testing
Three main methods are used:

 Group discussions – usually up to 8 people are involved in a
discussion run by a trained person. The aim is to hear a detailed view of
a new product.
 Street interviews – people are asked to taste samples of the product
and say what they like or dislike ; this produces a 'snapshot’ of opinions
about the test product.
 Home trials - consumers are provided with a product and asked to
try it at home. This gives the opportunity to sample the product in a ‘real
life’ situation and to have a response from the whole family. The trial
may result in minor changes to the product specification and the
manufacturing process.
Scale up
Once the company is confident that the product is

likely to succeed, it is ready for large scale
manufacture to begin.
The manufacturing process is sometimes organised
in unit operations, such as size reduction, mixing
and cooking. These are controlled to maintain
consistent product quality, safeguard, staff health,
food safety standards and to avoid problems that
may stop the production line running, which would
result in ‘down-time’.
Launch
Some new products are shown at a trade launch. This is intended to

allow large supermarkets and distributors to look at and sample the
products. Often deals are made at this stage for sales.
Sometimes products are launched in different regions of the country
to measure their performance. This may indicate whether the
product could be launched at a national level or should be dropped
from production.
Advertising then takes place to let the consumer know that the
product is available. Finally the new product is launched. After a
fixed period of time, products are always reviewed to see how well
they are performing.
Test marketing is the stage at which the product and

marketing program are introduced into more realistic
marketing settings
Test marketing provides the marketer with experience in

testing the product and entire marketing program
before full introduction
Market testing
When firms test market

• New product with large investment
• Uncertainty about product or marketing program
When firms may not test market

• Simple line extension
• Copy of competitor product
• Low costs
• Management confidence
Market testing
Approaches to test marketing
• Standard test markets
• Controlled test markets
• Simulated test markets

Market testing
Standard test markets are small representative markets where the
firm conducts a full marketing campaign and uses store audits,
consumer and distributor surveys, and other measures to gauge
product performance. Results are used to forecast national sales
and profits, discover product problems, and fine-tune the
marketing program.
Market testing
Challenges of standard test markets
• Cost
• Time
• Competitors can monitor the test
• Competitor interference
• Competitors gain access to the new product before introduction
Market testing
Controlled test markets are panels of stores that have

agreed to carry new products for a fee
• Less expensive than standard test markets
• Faster than standard test markets
• Competitors gain access to the new product

Market testing
Simulated test markets are events where the firm will

create a shopping environment and note how many
consumers buy the new product and competing
products. Provides measure of trial and the
effectiveness of promotion. Researchers can interview
consumers.
Market testing
Advantages of simulated test markets
• Less expensive than other test methods
• Faster
• Restricts access by competitors
Disadvantages
• Not considered as reliable and accurate due to the controlled
setting
Commercialization is the introduction of the new product
• When to launch
• Where to launch
• Planned market rollout

• Consumer adoption of new food products

• Adopters of new products move through five stages:
i. Awareness
ii. Interest
iii. Evaluation
iv. Trial
v. Adoption
Managing New-Product Development
Successful new product development should be:
• Customer-centered
• Team-centered
• Systematic
New-Product Development Strategies
Customer-centered new-product development focuses on

finding new ways to solve customer problems and
create more customer-satisfying experiences
• Begins and ends with solving customer problems

Sequential new-product development is a development approach

where company departments work closely together individually
to complete each stage of the process before passing along to
the next department or stage
• Increased control in risky or complex projects
• Slow
Team-based new-product development is a development

approach where company departments work closely
together in cross-functional teams, overlapping in the
product-development process to save time and increase
effectiveness
Team-based versus sequential new-product development
• Team-based can increase tension and confusion
• Team-based is faster and more flexible

Systematic new-product development is an innovative

development approach that collects, reviews, evaluates,
and manages new-product ideas
• Creates an innovation-oriented culture
• Yields a large number of new-product ideas
Product life cycle (PLC) is the course that a product’s sales

and profits take over its lifetime
• Product development
• Introduction
• Growth
• Maturity
• Decline
Product life cycle (PLC) describes:
• Product class
• Product form
• Brand
Product classes have the longest life cycles, with

sales of many product classes in the mature stage
for a long time
Product forms have the standard PLC— shape,
introduction, rapid growth, maturity, and decline
Brands have changing PLCs due to competitive
threats
Style is a basic and distinctive mode of expression
Fashion is a currently accepted popular style in a given

field
Fads are temporary periods of unusually high sales driven

by consumer enthusiasm and immediate product or
brand popularity
Introduction stage is when the new product is first launched.
• Takes time
• Slow sales growth
• Little or no profit
• High distribution and promotion expense

Growth stage is when the new product satisfies the market

• Sales increase
• New competitors enter the market
• Price stability or decline to increase volume
• Consumer education
• Profits increase
• Promotion and manufacturing costs gain economies of scale
• Product quality increases
• New features
• New market segments and distribution channels are entered
Maturity stage is a long-lasting stage of a product that has gained

consumer acceptance
• Slowdown in sales
• Many suppliers
• Substitute products
• Overcapacity leads to competition
• Increased promotion and R&D to support sales and profits

Modifying Strategies
• Market modifying
• Product modifying
• Marketing mix modifying

Market modifying strategy is when a company tries to

increase consumption of the current product
• New users
• Increase usage of existing users
• New market segments

Marketing mix modifying strategy is when a company

changes one or more of the marketing mix elements
• Price
• Promotion
• Distribution channels
Decline stage is when sales decline or level off for an

extended time, creating a weak product
• Maintain the product
• Harvest the product
• Drop the product

Additional Product and Service
Considerations
Product Decisions and Social Responsibility
Public policy and regulations regarding developing and

dropping products, patents, quality, and safety
Additional Product and Service
Considerations
International Product and Service Marketing
Challenges
• Determining what products and services to introduce in

which countries
• Standardization versus customization
• Packaging and labeling
• Customs, values, laws

Marketing Information System
& Marketing research
 A marketing information system is a set of procedures to
collect, analyze and distribute accurate, prompt and
appropriate information to different levels of marketing
decision makers.
 “A system that consists of people, equipment and procedures
to gather, sort, analyze, evaluate and distribute needed,
timely and accurate information to marketing decision
makers to improve their marketing planning, execution and
control (Philip Kotler).
Characteristics/features
i. It is a planned system developed to facilitate smooth and continuous flow
of information
ii. It provides pertinent information (both internal and external) for making
marketing decisions
iii. It provides right information at right time to the right person
iv. Computer-based system: Uses computer so is up-to-date & accurate
v. Future-oriented: Provides information for solving future problems
vi. Used by all levels: Used by all three levels of management.

MKIS & IT
• With the advent of computer technology, MIS provides direct access to
the database for the managers.
• This is called MARKETING DECISION SUPPORT SYSTEM (MDSS)
• The system called Marketing Decision Support System (MDSS) links a
decision maker to relevant database
• Companies perform Data Warehousing to organize and store huge
information.
• The process of searching through information in data warehouse to
identify meaningful patterns that guide decision making is called Data
Mining
BENEFITS OF MKIS
 Carry out marketing analysis, planning, implementation and
control more effectively.
 Effectively utilize the marketing opportunities and overcome
potential threats.
 Provides marketing intelligence to the firms & helps in early
spotting of changing trends.
 Helps the firms to adapt its product & service to the needs &
tastes of the customers.
 Helps in improving the quality of decision making by
managers.
TYPES OF MARKETING
INFORMATION
• MKIS provides three types of information
1- Recurrent Information
• This is the periodic data supplied by MIS on weekly, monthly,
quarterly or annual intervals
• This includes data pertaining to sales, market share, sales
call reports, inventory levels, payables, receivables, customer
awareness of company’s brands, data relates to competitors
etc.
TYPES OF MARKETING
INFORMATION
2-Monitoring information
• This pertains to data obtained from regular scanning of
certain sources such as trade journals & other publications
• The data relates to the changing trends, competitors
activities etc.
• Some of these data is purchased by companies from Market
Research agencies, gov’t sources etc.

TYPES OF MARKETING INFORMATION
3-Problem related or customized information
• This information is developed in response to some specific
requirements related to a marketing problem or any particular
data requested by a manager
• This consists of both primary data as well as secondary data
• Such data is collected by conducting market research study
with adequate sample size

COMPONENTS OF MIS
1- INTERNAL RECORD SYSTEM
• This comprises of the internal records related to (i) Order to Payment
Cycle and (ii) Sales Information System
1. Order to payment cycle
• This provides the following:
o Timing and size of orders placed by consumers
o The payment cycle followed by consumers
o The shortest time taken to fulfill the orders
• This helps the managers to plan the following activities
o Decide production and dispatch schedule
o Inventory and accounts receivable schedule
o Logistics and distribution management schedule
1- INTERNAL RECORD SYSTEM
2. Sales information system
• This records all the activities in the sales department
• Comprises of the following:
o Sales call reports to prospects
o Sales territory information
o Quota information
o Information related to sales forecasting

2-MARKETING INTELLIGENCE
SYSTEM
• This is a set of procedures and sources used by managers to
obtain everyday information about developments in the
marketing environment
• This supplies data related to ‘happenings’ whereas internal
record system supplies ‘results’ data.

2-MARKETING INTELLIGENCE
SYSTEM
• Marketing managers use various methods to collect the data. The most
important sources are:
o Published sources such as books, magazines, journals etc.
o Directly from customers, intermediaries and sales personnel
o Appointed specialists to conduct mystery shopping to collect data
regarding competitors
o Competitors information is collected by buying their products,
attending their press conference, trade shows and reading their
annual reports
o Information is also collected from marketing research agencies
3- MARKETING RESEARCH SYSTEM
• This provides information to marketing managers to resolve
the marketing problems
• This involves conducting marketing research survey by
collecting primary data
• This may be either conducted by the marketing department of
a company or it may be conducted by a marketing research
organization
4- ANALYTICAL MARKETING
SYSTEMS OR MDSS
• This is also called as marketing decision support system (MDSS)
• This is a composite system that comprises of collection of data,
systems, tools, techniques etc. with supporting software and hardware
by which an organization gathers and interprets relevant information
from business and environment and turns it into a basis of marketing
action
• All the data generated through the other three systems are stored in a
database which is retrieved by managers whenever they need it
MARKETING
RESEARCH
MARKETING RESEARCH
• “ The systematic design, collection, analysis and reporting of data
findings relevant to a specific marketing situation facing the company”
(Philip Kotler).
• FEATURES OF MARKETING RESEARCH
o It is a systematic process carried out in a stepwise process
o It should be objective and the research should not be carried out to
establish an opinion
o It is multi-disciplinary in the sense that it is related to Statistics,
Economics, Psychology and Sociology

OBJECTIVE OF MR
• To understand why consumers buy a product
• To forecast future sales and market share
• To assess competitive strengths and strategies
• To evaluate the effectiveness of marketing actions
already undertaken
• To asses customer satisfaction

MR PROCESS
Define the problem and research objective
Develop the research plan and design
Collect the information
Analyze the information
Present the findings

• STEP I
MR PROCESS
• Define the problem & research objective
• Proper definition of the marketing problem will lead to useful and relevant results
which can solve the marketing problem
• Usually research is conducted with one or more objectives and this forms the broad
frame within which the research has to be conducted
• STEP 2
• Develop the research plan and design
• A research plan is a framework within which collection and analysis of data is
undertaken
• This involves decisions on the following
(a). Data sources (b). Research Approaches (c). Research Instruments
(d). Sampling Plan (e). Contact Methods
MR PROCESS
1.Data Sources
• The researcher has to decided which source of data to use
– Primary data or secondary data
• Primary data are freshly gathered for a specific purpose or
a specific research project
• Secondary data are data which collected for some other
purpose or for commercial purpose of selling
• Secondary data is cheaper and easy to collect but it should
be checked for its reliability
MR PROCESS
2. Research Approaches
• Research approach helps the marketer to collect primary data . There
are five different approaches for collecting primary data:
1.Observational Research
• Fresh data is collected by observing people and situation
2. Focus Group Research
• This is a group discussion method in which eight to twelve people are
involved in the presence of a skilled moderator to discuss a product,
service, a firm or any marketing related activity
• The proceedings are observed and recorded in videotape to analyze
consumer attitudes, beliefs and behavior
MR PROCESS
3. Survey Research
• Survey is undertaken with the help of questionnaires
4. Behavioral Research
• Customers’ actual behavior in terms of actual
purchases are obtained
5. Experimental Research
• This is the most scientific method of research which
tries to capture cause and effect relationship
MR PROCESS
3. Research Instruments
• The instruments used in research can be of two types.
They are (i) Questionnaire (ii) Mechanical Device
1. Questionnaire
• This is the most commonly used to instrument which is
highly flexible
2. Mechanical Device
• Mechanical devices such as galvanometers, eye cameras,
audiometers etc. are used as research instruments
MR PROCESS
4. Sampling Plan
• The researcher has to prepare a sampling plan that
should outline the following:
• Who should be surveyed (Sampling Unit)
• How many should be surveyed (Sample Size)
• How should they be selected for the survey
(Sampling Procedure)
MR PROCESS
1.Sampling Unit
• Researcher must define the element of the target
population by whom information shall be collected
2.Sample Size
• Sample size is decided based on the nature of the study
and variance in the population, level of accuracy desired
and the budget available for research
3. Sampling Procedure
• Two types of methods are available for selecting samples –
Probability Sampling & Non-Probability Sampling
MR Process
5. Contact methods
• The choices of methods available are as follows:
1. Mail Questionnaire
• This is the best way to reach people
• The questionnaire should be simple and clearly worded

so that respondents can fill up the answers without any
assistance
2. Telephone Interview
3. Personal Interview
MR Process
• Step III – Collect the Information
• After designing the research instrument, the researcher

should now actually contact the respondent and collect the
information
• At this stage, it is very important to keep the quality of the

data under control by ensuring accurate unbiased answers
and by seeking the entire respondent’s cooperation.
• The data collectors should be well trained

MR Process
Step IV: Analyze the information
• In this stage researcher collects the data and codify it
• Nowadays, many questionnaires are pre-coded
• The coded data is then tabulated
• Then the data is analyzed with the help of several

statistical tools
• Here the data is converted into information

MR Process
Step V: Present the findings
• The researcher should present the findings to the decision makers or

users of the information
• General format of report

• Introduction
• Statement of purpose
• Research methodology
• -Analysis of data
• Findings and conclusions
• Recommendations -Appendix and bibliography
MR Process
Advantages
• Uses scientific approach in designing the problem and finding out alternative
solutions
• It helps to make better marketing decisions as they are based on authentic

information
• It helps in evaluating the effectiveness of various marketing actions
• It is helpful in ascertaining the reputation of the firm and its products
• It helps the firm in knowing the marketing and pricing strategies of its competitors
• It is helpful to a firm in making sales forecasts for its products and thereby ensure
harmony between demand and supply
MR Process
Disadvantages
• Not an exact science
• It is not a panacea (a solution or remedy for all difficulties)
• Human tendencies
• Inexperienced research staff
• Involves high cost
• Limitations of tools and techniques

THE PRODUCT LIFE CYCLE AND ITS
STAGES
Introduction
The product life cycle (PLC) is an attempt to recognize distinct stages in the
sales history of the product.
Corresponding to these stages are distinct opportunities and problems with
respect to marketing strategy and profit potential.
To say that product has a life cycle is to assert four things:
i) Products have a limited life
ii) Product sales pass through distinct stages, each posing different challenges
to the seller
iii) Product profits rise and fall at different stages of the product life cycle
iv) Products require different marketing, financial, manufacturing, purchasing
and personnel strategies in the different stages of their life cycle.
Note: There are usually four stages of the PLC, that is, introduction, growth,
maturity and decline.
Product life cycle Stages
• Introduction: A period of slow sales growth as the product is introduced in the market.
Profits are non-existent in this stage because of the heavy expenses of production.
• Growth: A period of rapid market acceptance and substantial profit improvement.
• Maturity: A period of a slowdown in sales growth because the product has achieved
acceptance by most of the potential buyers. Profits stabilize or decline because of
increased marketing outlays to defend the product against competition.
• Decline: the period when sales show a strong downward drift & profits erode.
Product Life Cycle Stages
1. Introduction Stage
• An introduction stage starts when the new product is first
distributed & made available for purchase.
• Considering only price and promotion, management can
pursue one of four strategies as shown in Fig1.
• Figure 1: Strategies for Launching new Products
Product life cycle stages
 A Rapid – skimming strategy consists of launching the new product
at a high price and a high promotion level.
 The objective is to increase profit and product awareness. Rapid

skimming strategy makes sense under 3 assumptions:
i. Large part of potential market is unaware of the product
ii. Those who become aware are eager to have the product and able
to pay the asked price
iii. The firm faces potential competition

 A slow-skimming strategy consists of launching the new product at a
high price and low promotion.
 The strategy aims at increasing profits and reduce promotion
expenditure. The strategy makes sense when;
i. The market is limited in size
ii. Most of the market is aware of the product
iii. Buyers are willing to pay a high price
iv. Potential competition is not imminent.

Product life stages
 A rapid penetration strategy consists of launching the product at a low
price and spending heavily on promotion. The aim is to effect market
penetration and increase market share. The basic assumption is:
i. The market is large
ii. The market is unaware of the product
iii. Most buyers are price sensitive
iv. There is strong potential competition
v. Unit manufacturing costs fall with the scale of production

 A slow penetration strategy consists of launching the new product at
a low price and low level of promotion. This strategy aims at
increasing product acceptance and reducing promotion costs. The
basic assumptions are:
i. The market is large
ii. The market is aware of the product
iii. The market is price sensitive
iv. There is some potential competition

2.Growth Stage
• This is the period during which both sales and profits increase at an increasing rate.
During this stage, the firm uses several strategies to sustain market growth as long as
possible:
i. The firm improves product quality and adds new products features
ii. The firm adds new models and flanker product
iii. It enters new market segments
iv. It enters new distribution channels by using integrative growth opportunities
v. It shifts from advertising for building products awareness to bringing about
product conviction and purchase
vi. It lowers price at the right time to attract the next layer of price sensitive buyers.
• The firm in growth stage faces a trade-off between high market share and high
current profit because to strengthen ones competitive condition additional
expenditure is necessary.
3 Maturity Stage
• At some point, a product’s rate of sales growth will slow down, and the
product will enter a stage of relative maturity.
• This stage normally lasts longer than previous stages, and therefore most
marketing management deals with the mature product.
• Maturity stage can be subdivided into three phases
i) Growth maturity
ii) Stable maturity
iii) Declining maturity

Marketing strategies in the mature stage include:
1. Market modification
• The company should seek to expand the market for its brand by working with the two factors
that make up sales volume:
Volume = Number of brand users x usage rate per user
• Number of brand users can be expanded in three ways
a. Convert non-users
b. Enter new market segments (geographic, demographic)
c. Win competitors’ customers
• Volume can also be increased by getting current brand users to increase their usage of the
brand.
There are three strategies of increasing volume:
a. More frequent use (e.g. orange juice can be used during
lunch and dinner in addition to its use during breakfast)
b. More usage per occasion
c. New and more varied uses (food manufactures list several
recipes on their packages to broaden the consumers’ awareness
of all the uses of the product).

2. Product modification:
i. Product modification can take several forms:
ii. Quality improvement to increase the function performance of the product e.g.
durability, reliability speed, taste etc
iii. Feature improvement to add new features that expand the products versatility
e.g. through addition of accessories and
iv. Style improvement e.g. in packaged food companies introduce color and texture
variations and often restyle the package.
3. Marketing mix modification

• Marketing mix modification entails modification of strategies for price, distribution,
advertising, sales promotion and personal selling to enhance product sales.
4 Decline stage
• Sales decline for a number of reasons such as:
i. Technological advances
ii. Consumer shifts in tastes
iii. Increased competition

• Decisions to handle aging products must follow a definite procedure
a. Identifying the weak product (use a product review committee)
b. Determining marketing strategies which could entail

i. Increasing the firms investment or maintaining the firms investment level until the
uncertainties about the industry are resolved.
ii. Decreasing the firm investment level selectively
iii. Divesting the business quickly by disposing of its assets as advantageously as possible
c. The drop decision that may involve:

iv. Selling product to a smaller firm
v. Liquidating brand quickly or slowly
vi. Deciding on how much parts and inventory and service to maintain to service past customers.
Critique to the PLC model
• It is argued that the PLC model is a bit too theoretical.

However, it is a useful tool for planning, control and
forecasting company sales.
Product formulation and
specification
Introduction
 Many food products are made by combining raw materials in specific
proportions in a formulation & research on the effects of various
formulations on product qualities is common in product design.
 Formulation-putting together of components in appropriate

relationships or structures, according to a formula.
 Food formulation - the process of quantifying the amounts of food

ingredients that need to be combined to form a single uniform
mixture (diet) of a target group that supplies all of their nutrient
requirements.
Why make formulations
 A formulation may be created for any of the following
purposes:
i. To achieve effects that cannot be obtained from its

components when these are used singly
ii. To achieve a higher degree of effectiveness
iii. To improve handling properties & often safety for the user
What you need before making formulation
 Food formulation requires thorough understanding of the:
a) Nutrient requirements of the target group (e.g., HIV/AIDS

patients, edematous or non-edematous etc.)
b) Food ingredients in terms of nutrient composition &

constraints in terms of nutrition & processing,
c) Cost & availability of the ingredients.

Types of raw materials
The raw materials can be divided into two groups:
i. The basic product raw materials e.g.

ii.The 'top' or aesthetic raw materials e.g.
Note: This does not mean that the basic raw materials do not give aesthetic
qualities to the product - in fact in modern food design this is recognized as
a fundamental factor. But sometimes there is a need for the addition of
colours & flavours to improve the aesthetic effect.
The important properties of the raw materials in relation to the product

qualities are recognized in the product design.
Typical formulation
 Food formulation is both a science & an art, requiring

knowledge of food ingredients, target group nutritional
requirements, and some patience and innovation.
 Typical formulations indicate the amounts of each ingredient

that should be included in the diet, and then provide the
concentration of nutrients (composition) in the diet.
 The nutrient composition of the diet will indicate the adequacy

of the diet for the particular group for which it is prepared.
Typical formulation
 It is common to show the energy value in metabolisable
energy (kcal or MJ ME/kg feed) and protein content of the
diet
 Comprehensive information on concentrations of mineral

elements & digestible amino acids are also provided.
 Digestible amino acids often include not just the first limiting
amino acid, methionine, but also most of the ten essential
amino acids.
Food formulation process
 Food formulation, often referred to as least cost formulation, is
the process of matching the nutrient requirements of a target
group of individuals with the nutrient contents of the available
ingredients (raw materials) in an economic manner.
 As mentioned earlier, this requires in-depth understanding of the

requirements of the target group, nutrient contents including
digestibility values, and prices of the ingredients.
 With this knowledge, mathematical formula are used to derive the

amounts of each ingredient that need to be included in the diet.
Food formulation process
 When using only a few ingredients, the formula are simple.
 However, when there are numerous ingredients available in

different amounts & at different costs, more complex
formula are required.
 There are numerous food formulation packages readily

available today that have functions beyond the simple
matching of nutrient requirements with nutrient contents of
available ingredients.
Steps in food formulation
In systematic formulation the following steps are involved:
i.Set the product qualities required.
ii.Find data for the raw material compositions, qualities & costs.
iii.
Use quantitative techniques: linear programming, experimental
designs, mixture designs.*
iv.
Use product profile tests & technical tests to relate product qualities to
changes in formulations.
*there are many useful computer software packages to use these

statistical techniques.
Useful computer software packages
used in formulations
 Concept 4 creative software
 Nutrisurvey
PRODUCT QUALITY
Food product quality
What does quality mean?
Communication of product quality

i. Choosing physical signs that people normally associate with a certain quality
level.
ii. Through other elements of the market mix e.g. a high price usually signals a
premium-quality product by buyers.
iii. Through packaging, distribution, advertising or promotion e.g. a premium beer
changed its image when it switched from bottles to cans (change in packaging).
Management of product quality through time

• The manufacturer invests in continuous research and development to improve
quality. This helps to produce the highest return and market share.
• There exists two main options for product quality decisions:
i. Maintenance of product quality
ii. Reduction of product quality through time
Food product quality
Packaging and labeling
 Packaging
a. Definition
b. What is packaging for to the food industry & consumer
c. General packaging specification categories
 Labeling
(a) Why labeling? (b). What is a label? (c). Attributes of a label. (d). Labeling as part of packaging.
(e). Role played by the label
Identity
Grade
Description
promotion
Product assessment
• Evaluation of quality attributes
• Safety assessment
• Shelf-life assessment
• Regulation compliance
• Determination of acceptable variance-control limits

Road blocks to success of new products
Objective of this section is to;
i. Understand why new products fail
ii. Develop concepts to prevent new product development failures
Where do new products fail?
i. During concept development
ii. During product research & development
iii. During scale-up
iv. During manufacturing
v. During market evaluation
vi. In channels of distribution
vii. In consumer use.
N.B: Generally, there are many reasons why new products fail but if we want to
describe the failure of new products in a single word-it comes down to PEOPLE & lack of
understanding of all aspects of the product, process & packaging requirements.
Road blocks to success of new
products
Why do new products fail
i. Inadequate consumer research
ii. Lack of management support
iii. Inadequate communications
iv. Inadequate documentations
v. Inadequate training
vi. Technical reasons
vii. Legal reasons
viii. Cost of implementation too large

products
Technical reasons why new products fail
i. Physical effects-thermal, mechanical, colloidal, rheological
ii. Chemical & enzymatic reactions-interactions among
ingredients, flavorings, colorings
iii. Microbiological activity-spoilage & pathogenic
microorganisms
iv. Sensory problems-taste, odor, texture, color
v. Packaging system problems-physical & barrier problems,
package interactions
Note: Developers of new products must ensure that at all phases there is constant
COMMUNICATION. It is important to keep all parties involved & informed at every
point in the process.
products
At the level of concept development
i. Make sure that you do a thorough job of market research
ii. Make sure that your product attributes really meet the
consumer needs
iii. Make sure that the factors controlling them at lab., pilot plant &
products are fully understood
iv. That the product can be made at full production scale through
the complete distribution schedule without the loss of
attributes.
products
During R&D including pilot plant work
i. Consider physical, chemical, microbiological, nutritional, sensory,

packaging, shipping &consumer use factors.
ii. Involve pilot plant manufacturing & packaging engineers at early

stages of development; process-package interactions.
iii. Carefully train all pilot plant operators, develop QA & HACCP plans
with QA staff
iv. Develop manufacturing operating instructions based on pilot plant

results, develop consumer use interactions.
products
During manufacturing
i. Involve QA staff in all phases of implementing QA & HACCP plans
ii. Finalize detailed operation instructions-in a form understandable to all operators.
iii. Train all operating personnel operating instructions and the need for compliance.
iv. Finalize detailed instructions
v. Train all sanitation personnel on sanitation operating instructions. Instructions & training
may need to be in languages other than English.
vi. Finalize detailed instructions for storage, warehousing & shipping
vii. Check on date of production, shipping & holding history, production records on
ingredients used & amount used.
viii. Microbiological examination-bacteria, yeast & mould counts & pathogens where
applicable
ix. Production of pilot plant test lots-follow-up thermal shock; mechanical vibration shock
testing
x. Storage stability tests-30 days at 0, 5, 25, & 37oC
xi. Sensory evaluation-flavour & aroma, color & texture.
xii. All ingredients checked for compliance with specifications.
products
During distribution
i. Maintain retention samples for reference
ii. Establish & maintain shelf-life test procedures
iii. Maintain a check of consumer complaints
iv. Review records of your total distribution system for possible technological
problems
v. Continuity review repeat sales records.
vi. Keep tract of competitors.
NB: In conclusion, it is important to note that product failure can occur at any stage
during product development.

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FOOD PRODUCT DEVELOPMENT

11/25/2022 Food Product development 2019/2020 1

• This course is designed to provide students with a basic

understanding of the product development process in the

commercial food industry.

• Through lectures, field trips, and hands-on formulation

activities, students will learn how to successfully initiate,

organize, and carry out a product development project.

• Gain an understanding of the processes involved in the invention

• Develop an appreciation of the food industry and how innovation

• Cultivate basic food science principles to problem solve during

• Develop and enhance team cooperation and communication

i. To understand why new products are developed.

ii. To note the key areas of product development in the past

iii. To appreciate why products may fail.

iv. To understand the product life cycle.

• To be profitable & to survive, food companies seek new products.

well. Give an example

• Developing new products is a complex process - requiring knowledge of ingredients,

processing techniques, packaging materials, legislation & consumer demands &

• Such human and physical resources are expensive.

• Nevertheless there is no promise that any new products

• The obviousness of the need for new product is apparent to

3. Product positioning and product repositioning

 There are two parallel paths involved in the NPD process:

i. The idea generation, product design and detail 'engineering';

ii. Market research and marketing analysis.

 Companies typically see new product development as the first stage;

i. In generating & commercializing new products within the overall

ii. Used to maintain or grow

market by the company. Rare occurrence.

The presentation or rebranding by a company of an established product in a

explored by that company. Food Product development 2019/2020

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7. Innovative products  Amount of research and development dependent on the

i. In-depth knowledge of food, ingredients & global cuisines

ii. Well developed practical skills

iii. A passion for food which is brought to bear on the job

iv. A desire to research new trends

v. An understanding of the science of food (food chemistry &

vi. Up-to-date knowledge of the food retailing market

vii. The ability to generateFoodnew

ii. Technically viable.

• Financial, technical & sales forecasting will be undertaken for new

i. Producing ‘convenience’ foods – in response to changing

ii. Providing products with altered nutritional content –

i. Increasing the variety of products available–to provide more choice.

ii. Producing ‘economy’ lines – to appeal to people on lower incomes.

iii. Appealing to the ‘luxury’ market – to attract more affluent

iv. Maintaining & improving product quality – to retain customer

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i. No difference between new and old product (50% failure).

ii. Tough competition.

iii. Unsatisfactory distribution (very popular).

iv. Rising cost of ingredients, production and packaging.

vi. Ineffective advertising.