Transcript Types of product development

Types of product development
Line extensions
• As consumers demands grow for a certain
product, the manufacturing companies need
to expand their sales by extending existing
lines. They can do this by:
• A range of new flavours
• Packaging of products into smaller units
• E.g. Chocolate coated teddy bear and tiny
teddy biscuits
‘Me-too’ products
• When a rival company produces a new
product that proves to be successful, then
other manufacturers often develop a ‘me-too’
product or a copy of the product.
• Can you think of any ‘me-too ‘products?
Process of product development
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Market Research
Design Brief
Criteria for Evaluation
Idea Generation
Prototype
Production
Marketing/launch
Evaluation of product development
Life cycle of a product
• One method food manufacturers use to track the
success of their product range is to develop a
profile of the product throughout its life cycle.
This includes: development stage, period of
growth, period of maturity to eventual decline.
• Sales of the product will be tracked to determine
its profitability and evaluation as to whether the
product will need to be replaced.
• Marketing strategies can be used to extend the
life of the product
Market research
• Companies collect and analyse information to
assist them in their decision making about
product development.
• Information: age, gender, socio-economic
status, lifestyle, work, family life and general
buying patterns
• Observe: societal trends and influences and
consumer needs
Design brief
• Concept for a new product
• Defines the aims and intentions of the new
product ad includes all constraints and
considerations
• Criteria for evaluation
New product ideas
• There are two stages that are worked through when
creating new products to solve the problem outlined in
the design brief
1. Ideas stage: Brainstorming of ideas and use of
questionnaires given to focus groups
2. Evaluation and screening: ideas are assessed against a
set of criteria to see if they meet minimum
requirements and then a detailed analysis of the
materials, equipment, cost, expertise, consumer
demand and sales is performed.
Prototype
• Developing ideas into a sample product or prototype
• Best combination of ingredients to ensure the product
has appealing sensory properties and the shelf life is
maximised
• Packaging is considered which details shelf life,
protection, ease of handling and distribution, labelling,
consumer appeal and environmental sustainability
• Once a prototype has been produced, it goes through
analysis to evaluate sensory properties and suggestions
can be offered for improvement
Production
• With a successful prototype, the company will
start the production phase.
• Trials will be run to determine whether it is
possible to replicate the prototype using fullscale equipment and volumes of ingredients.
• Packaging and labelling: this is important as it
often sells the product
Marketing
• A marketing campaign must be developed to
launch the new product into the market.
• The goal is to encourage consumers to try the
product and the marketing campaign must
encourage consumers to repeat purchasers to
maintain market sales.
• 4 P’s: product, price, place and promotion
Evaluation of a new food product
• Evaluation of: product, production, economic
viability and marketing campaign
Product evaluation
• Evaluation of the physical and sensory
properties of the product
Production evaluation
• Resources used, type and availability of
ingredients and materials, expertise,
production processes and HACCP
Economic evaluation
• Costs involved in the products production
including; design and development costs and
likely profit sales.
• Figures are reviewed once the product is
launched into the market place
• The success of the product will be critical to
the economic success and to maintain its
viability to the company’s product range.
Market evaluation
Strengths, weaknesses, opportunities and
threats: SWOT Analysis
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