Introduction to Product
Development
Prepared by:
WILMA E. PAJAVERA, MAIE
FSM 33 Course Professor
Product
Aproduct is a good, service, or
idea consisting of a bundle of
tangible and intangible attributes
that satisfies consumers and is
received in exchange for money
or some other unit of value.
Product Planning/Development
Refersto the systematic
decision making related to all
aspects of the development
and management of a firms’
products.
New Product Development
the process of designing, creating and
marketing new products or services to
benefit customers
the discipline is focused on developing
systematic methods for guiding all the
processes involved in getting a new
product to market
Product development
involves either improving an existing product
or its presentation, or developing a new
product to target a particular market segment
or segments
◦ Consistent product development is a necessity for
companies striving to keep up with changes and
trends in the marketplace to ensure their future
profitability and success.
◦ A competitive product development strategy should
include a company-wide commitment to creating
items that fulfill particular consumer needs or
characteristics.
These characteristics might include
consumers' desire for the following:
◦ products that are high-quality or low-cost;
◦ products that provide the consumer with
speed or flexibility; or
◦ products that offer some other form of
differentiation that posits them a desirable
purchase
Significance of Product
Development Product
Development
GROWTH
- line extension
- new product PRODUCTIVITY
- new packaging - reduced cost QUALITY
- packages
IMPROVEMENT
- Good Manufacturing
- quality design
Procedures (GMP) BRAND
- leverageable
- competitive MAINTENANCE
- advantage - performance (policies)
- special situation
- Regulatory Policy (i.e.
Food Fortification)
Scope of New Product
[Link] new product :
◦ New concept;
◦ Bring new technology;
◦ Unique characteristics;
◦ Not “me too product”-original;
◦ First of its kind in the market;
◦ Premium advantage over the existing
product
Scope of New Product
2. Line extension
◦ Additional/increase ease of use;
◦ Shapes/design variants (flavor,
packaging, product versatility)
◦ Improve shelf life
◦ Improve quality
Scope of New Product
3. Product improvement
◦ Change in the ingredient
(substitution or addition)
◦ Change in process (new
manufacturing technique)
◦ Nutrient content
Benefits:
Product benefits: describes the product
advantage in objective term
Performance
Superiority, fresher, protects
Health reasons
Peoples benefits: describe the product in
subjective term
Personal value
Pride, confidence, less hassle etc.
Approaches to Product
Development:
Recipe Development
Adaptation of “Brand” name
recipe
Principles:
Defend : brand protection, food safety,
scientific and regulatory affairs,
environmental management, and
consumer relation
Extend : out of the core group
Build : on the product
Process structure
Every new product will pass through a series
from ideation through design, manufacturing and
market introduction.
◦ Fuzzy front-end (FFE) - view of what the product should do to
meet the perceived market or business need; “stage gates”
◦ Product design - which turns the what of the requirements into a
specific how this particular product will meet those requirements.
◦ Product implementation - any test processes that may be
used to validate that the prototype objects actually meet the design
and requirements specification that was previously agreed to.
◦ Fuzzy back-end - commercialization phase or market launch
DESIGN PARAMETERS IN
DEVELOPING A FOOD
PRODUCT
1. PRICE
ability or the performance of the product:
low production cost, low price
Rewards
Improved manufacturing process
Acquisition of product
◦ As technology, aesthetic of the product nature
or stabilizes; competition is also based on cost
◦ Customer internal economic (affordability)
Components of Successful
Pricing Strategy
Costs – current or future cost
Accurately determine how much money afford to spend
on development support production and other cost,
how much of that product you would sell and what
price.
Current cost of developing new product; basis of price
of current product.
Price sensitivity of buyers/consumer
Customer prefer to add functionality of your product
enhancement instead of learning how to use
something new
Competition – pay attention to them,
don’t react and don’t copy; limit yourself
in the set boundaries; not be caught in no
price war
Product life cycle – decline stage
(saturated with product –lower price;
sale--increase price sensitivity)
2. COLOR
Hue value or lightness
Chroma and saturation
Color expectation for food
products
◦ Ex. Fruits, vegetables, meat, fish,
poultry
Change in color of foods during
Importance of Color
Product acceptance
Human appetite
Palatability
Differentials of one product from the
other
Effect of shelf life (spoilage and extent of
contamination)
3. FUNCTION
Function of the ingredients to the
food.
◦ Ex. Use of some stabilizer for cloud
stability of fruit juices, use of salt, nitrites
spices, and use of hydrogented fats
(prevent rancidity of product)
Functions of adding ingredients
a. Quality appropriate to product
b. Meet performance specifications
c. Meet safety specification
d. Least cost functionality
e. Process ability
Some ingredients have one or more functions in the food
Some ingredients may provide a different functionality at
different steps in the process
Interactions can change the functionality of an ingredient
4. FORMS
Product presentation
Universality: eliminate the need for other parts
Beforehand Cushioning: tampering presents a
consumer
Porous materials: improves texture and rate of
taste transfer to the tongue
Composite materials: combining foods of
different properties into a single structure
Segmentation: customized products to their
personal needs
Preliminary action: consumer gets less weight
of having to rehydrate; pre-cooked meals,
meat, deseeded vegetables
Moving to a new dimension: change a new
dimension
Color changes: of food packaging
Use strong oxidizers: use of activated products
Merging: bringing complementary products of
similar or complementary flavor
Self-service: e.g. self heating, self-cooking
Phase transition: expanding, evaporating,
cooling or changing shape
5. TRENDS
Consumer preferences and demands
a. Flavored – change in eating patterns
◦ restaurant exposure
◦ preference for lower fat foods
◦ semi-meat less eating
- Taste familiar: not very different from
what they have been used to;
predominate of ethnic food
b. Simple and easy living
- working housewives: use of cooking
value of frozen foods
ease of eating
take-out (patronize
food service
c. “Street foods”
- hot, portable, hand-held
- foods eaten in the street
- need for foods and beverages: bite sizes,
complete meals, and provide total energy
d. Natural and Organic food
- desire for fresh natural and pure foods
- concern over food safety
- vegetarian menu and processes food items
e. Fun eating
- “entertainment”
- “we” generation
- “one-dish meals” – “samplers”
f. Eating time is any time
- eating occasions (2-3 meals a day with snacks)
- late night eating occasions (8-10 pm)
g. Balanced Diet
- “very-bad-for-you” food versus “very-
good-for-you” foods
- “bad-one-day, better-the-next”
- popular desserts
- large serving
h. Focus on health
- disease prevention, anti-aging
6. TECHNOLOGY
Knowledge applied to products or
production processes
Manipulating science into concepts,
processes and devices
Out growth of science
Systematized practical knowledge, based on
experimentation and/or scientific theory,
embodied in skills, organization and
machinery
Embodied Technology
Packaged in form of physical objects or
facilities, e.g. capital goods, blueprints for its
application
Disembodied Technology
Embeded in people or institution form of
knowledge and information, procedural
methods and organizational mode.
Technology Portfolio Categories
Core technology
◦ Usually central to all or most of the company’s
product
Complementary technologies
◦ Additional technology that is essential in product
development
Peripheral technologies
◦ Technology that is not necessarily incorporated into
the product and application to business
Emerging technologies
◦ New to the company but may have long-term
significance for its product
7. Quality
Guarantee from the manufacturer to the
consumer that their foods meet a clear
consistent set of standards.
8. Ornamentation
Quality Control Checks
1. Weight check – product in prescribed weight
2. Visual check – it looks the way it should
3. Temperature check – kept at an appropriate temp.
4. Chemical check – guards against chemical contamination
5. Metal checks – guard against contamination
6. Organoleptic checks – flavor, texture and appearance
7. pH checks – food in correct acidity/alkalinity
8. Microbiological checks – make sure that bacteria are not
at harmful level
