New Product Development

NEW PRODUCT OPPORTUNITIES

EXISTING IN THE FOOD PROCESSING
SECTOR

Submitted To: Mr. Ashok Kumar

Submitted By:
Ankan Das (19020242005)
Anshul Gupta (19020242006)
Divyanshu Malhotra (19020242012)
Poornima Thapliyal (19020242034)
Rahul Khurana (19020242038)
Introduction
The toothpaste brand, Colgate, once tried to ride the 1980s frozen dinner wave by launching
their own beef lasagne.
Apparently, the plan was to encourage people to eat a branded dinner before brushing their
teeth with Colgate toothpaste.
Unfortunately for Dr. West, the curator of The Museum of Failures, and for some other reasons,
Colgate didn't want the product featured in the Museum of Failures. West didn't let that get him
down, though; he went about creating a replica of the original packaging.

Primary reasons for failure of New Products

 Brand extension is a marketing strategy in which a firm marketing a product with a

well-developed image uses the same brand in different product categories. The new
product is called a spin-off.
 Colgate launched Kitchen Entrees, a line of frozen food products, in the US in 1982.
They hoped to capture the growing market for ready-to-eat meals.
 Maybe they also hoped that customers, after enjoying their frozen meals, would go out
and buy its toothpaste as well?
 Colgate is one of top selling brands for toothpaste. Colgate in the recent past has done a
great job of selling toothbrushes and dental rinse, which is just an extension for dental
care products, which makes sense.
 Connecting the taste of food and toothpaste didn’t go well with the consumers.
 Poor understanding of target market’s predispositions and lack of market research
before launching the product is a major cause of the disaster.

Myths associated with each sector

Myth #1: Frozen Food is Less Nutritious

While it is true that frozen food loses some of its nutritional value during storage, it is often more
nutritious than the fresh food readily available in your grocery store. Because out-of-season
produce is frequently picked before it has fully ripened and then stored and shipped long distances,
it loses a great deal of nutritional value before it ever lands on your plate. By comparison, frozen
foods are generally picked at the height of ripeness and flash frozen to lock in nutrients.

Whether you are preparing fresh or frozen vegetables, the cooking process you choose can affect
the nutritional value of your food. When it’s time to prepare your frozen vegetables, opt to use a
steamer or microwave them instead of boiling them. Steamed vegetables retain more of their
nutrients than boiled vegetables.
Myth #2: All Frozen Food is Highly Processed

Although grocery freezers are laden with unhealthy frozen dinners and processed meal kits, there
are plenty of healthy choices as well. When selecting frozen foods, one should opt for whole and
natural foods whenever possible rather than reaching for highly-processed products.
Checking ingredient labels and avoiding those with long lists of preservatives and additives must be
followed. Know that the freezing process is a natural preservative method on its own. When it
comes to storing your frozen food back at home, be sure you know the best type of freezer for the
food you tend to freeze the most of.

Myth #3: Frozen Food is More Expensive

Frozen food doesn’t have to be more expensive than fresh food. Pre-packaged convenience foods
are often more expensive than whole frozen foods like potatoes and vegetables. However, even the
convenient frozen foods are far cheaper than a high-priced restaurant bill.

Although one may find great deals on in-season produce, those same fruits and vegetables can bring
a hefty price tag in the off season. Stocking up on frozen fruits and vegetables can save you money
on your yearly grocery bill. It might even be a good idea to invest in a second freezer in order to
ensure you have enough space to hold all of your frozen foods.

Myth #4: Any Food Can Be Frozen

Many foods can be frozen effectively and maintain their original flavour and texture. However,
some foods are not good candidates for the freezer. Some foods quickly lose flavour when stored in
the freezer.
Examples include cream-based sauces that separate during freezing, as well as coffee that rapidly
loses flavour when frozen. Fruits and vegetables that have a high-water content, such as
watermelon and lettuce, also don’t freeze well and will often thaw out much soggier than they were
before they were frozen.
According to the USDA, eggs in their shells and canned goods also should not be frozen. To freeze
eggs, instead crack the shells and pour the eggs into a bowl, ensuring that no air is incorporated in
the mix. They can be kept frozen for up to a year. If you want to freeze canned goods, first remove it
from the can and repackage it in freezer-safe packaging.

Myth #5: Freezing Food Kills Bacteria

When preparing fresh foods for freezing, there are a few safety tips to keep in mind. While it is true
that freezing food makes bacteria inactive, it doesn’t eliminate the risk of bacteria. Once the food is
defrosted, any harmful bacteria on the food remains. The only way to make sure that your food is
safe is to cook it to the recommended temperature.
When freezing your own food, there are a few things you can do to minimize contamination. Just
like when you cook, it’s critical to wash your hands thoroughly before preparing foods for the
freezer. Wash fresh fruits and vegetables thoroughly and allow them to dry before packaging.
Always use clean containers to package foods to be frozen.

Myth #6: Frozen Food Lasts Forever

It’s true that frozen food has a far longer lifespan than its fresh counterparts. However, frozen foods
begin to lose quality and taste if they are stored too long. Here are some common frozen foods and
their expected lifespans.

 Raw meat – 4-12 months

 Cooked meat – 2-4 months
 Vegetables and fruits – 8-12 months
 Casseroles – 2-3 months
 Soups and stews – 2-3 months

When freezing fresh foods, yourself, there are a few tips to extending their storage life. Blanch
vegetables before freezing by scalding them briefly in boiling water or steam. Blanching halts the
enzyme processes that cause loss of flavour and nutrients during freezing. Cool all foods completely
before putting them into your freezer.
Be sure to package foods properly in moisture-proof packaging and remove air from freezer bags
before storing them.

Myth #7: Thawed Food Can’t Be Refrozen

It is, in fact, possible to refreeze food. If you pull out a roast for dinner and put it in your
refrigerator to thaw only to later change your meal plan, you can safely place it back in the freezer.
Avoid refreezing food that has sat out at room temperature for more than two hours though, for
this can degrade the quality of your food due to moisture loss.
What should you do if the power goes out? While it might be tempting to check on your stocked
freezer to see how the food is holding up, resist the urge. Leave the freezer door closed to keep the
temperature down. A full freezer can stay frozen up to two days. If your power is out longer than
two days, try to cook and eat as much as possible. It may be a good time to invite over family and
neighbours for a buffet rather than seeing your food go to waste.
 Product concept testing method

Step 1: Choose your test methodology

There are several different ways to test your concepts. Some of the most common include the
following:

 Single Concept Evaluation (Monadic) — Respondents complete a full evaluation of a

single concept.
 Multiple Concept Evaluation (Sequential Monadic) — Respondents complete full
evaluations for multiple concepts.
 Concept Selection (Comparative) — Respondents choose which concept they like
best.
 Concept Selection and Evaluation (Comparative Monadic) — Respondents choose
which concept they like best and complete a full evaluation of that concept.

Step 2: Design and field your study

Once you’ve chosen your test methodology, you’re ready to survey your respondents. First, show
the respondents an image and description of your concept and ask them about their initial reaction.
This is a crucial question as this will give you a good indicator of whether your product will stand
out in the market. Next, ask questions about the following topics to dig deeper into the product
attributes:

 Uniqueness
 Appeal
 Likability
 Believability
 Relevancy
 Product demand
 Most and least-liked attributes
 Likelihood to buy
 Expected price

Step 3: Identify the most promising product concept

Once you have your survey results, you can start to identify which concepts are the most likely to be
successful. To start gaining insights, break down your results both overall and into individual-
concept results. This will give you both a high-level and in-depth view of your study. Overall results
show you key findings and show you at a glance which concepts performed the best. Individual
results allow you to dive deep into key attributes like uniqueness, appeal, relevance, etc. for each of
your concepts.

Automated tools like Qualtrics XM Solutions make it simple to program and run your concept tests.
The Product Concept Testing XM Solution includes a pre-designed survey, report, and configuration
wizard that maps to these steps and is included with most Qualtrics licenses.

With a 50 percent chance of product failure, testing your concept is vital. Concept tests can help you
avoid launch failures like the Ford Edsel by helping you identify what is working and what is not
with each of your concepts. By testing product concepts thoroughly and early, you’ll know which
concepts are likely to drive revenue and impact in the market.

Challenges Involved for New Product Innovation:

1- Time to Market-
For any new product introduced in the market needs time to market, needs time to build a
perception in the consumer mind. But in Case of Colgate Lasagna it double mandated the
perception of the customer. One side Colgate is the brand to be associated with safety and
quality but on the other hand the safety is the oral and hygiene category not in the food and
beverages category.

2- Brand Fit-
 ‘Does the new product introduce by the brand matched the existing brand personality or
not?’ Marketing is totally the game of perception and it is really difficult for the brand to
change the perception of the consumer and so to be in the safer side of the competitive
arena it is really important for the brand also that new product introduced is the perfect fit
to the brand image already existing the market. As talking about the Colgate Lasagna, the
brand Colgate was perceived by the consumer as a product of mint that refreshes the mouth
smell and it was really difficult for the customers to give space the same flavour in the food
that they consumed.

3- Customer Benefits-
‘Is the innovated product of any benefit to our customer?’ Coming with an innovation or any
product might also involve targeting of new customer segment and serving on to their
needs. Some Innovation don’t bring direct benefits to the customers hence their success is a
major question mark. Was there a real need to read to cook meal for the customers in the
early 1980s though the FMCG sector is the fourth largest in the category but still it was
difficult to convince the customer to make a shift in their preferences.

4- Elucidating the product benefits-

The uniqueness of the product innovated should be easily communicated to the customers.
In the essence of the Colgate Lasagna it was becoming difficult to the put the product
innovation into the conventional mindset of the customers. If this brand and the category
extension by Colgate required major rethink by the customers then it could be a scope for
the brand prepare for a sound target segment and relaunch the product with an information
campaign but this product innovation was not accepted by the customers in the first go.

5- Cannibalization-
The major challenge for any product innovation affiliated to a popular brand is eating the
share of the existing product. The introduction of Colgate Lasagna did the same. The
introduction of the innovated product also affected the market share of the Colgate brand in
the oral and hygiene segment as well. The introduction of Colgate lasagna increased the
market risk, and this costed them to the expense of existing products of the brand.

Marketing and distribution approach for faster product adoption in the

market:

A- The Market Segment-

Market Segment plays an important role for the product to judge whether it would lead to
early adoption in the market or not. This depends on the stage of the product. The life cycle
of the product is divided into four stages: Introduction, Growth, Maturity and Decline. The
consumer adoption curves go after the stage of the product. Based on the stages of the
product in the market the segments are divided into: Innovators, Early Innovators, Early
Majority, Later Majority and Laggards. The Colgate Lasagna came with a new innovated
product there focus must lie towards the innovators segment of the market only because
 they might like the innovation, but due to the strong image of the brand Colgate they target
the consumer as a whole and that led to the major failure of the innovated product.

B- The Right Product-

While Innovating any new product of the existed brand the Roger’s Five factor framework
must be an essential of the brand. The Roger’s five factor framework states the five-product
based factor that drive to adoption of the new product. The five-product based are:
 Relative advantage- The greater the relative advantage the easier will be the
adoption of the product.
 Compatibility- Compliances with the consumer experience and existing values.
 Complexity- This deal with understanding of the product, Complexity is inversely
proportion to the early adoption of the product.
 Trialability- Important for the early stage of the product life cycle, the greater is the
trialability the greater will be adoption to the new product
 Observability- This deal with the customer observing the products used by the other
influential people of the society, so the greater is the observability the greater is the
adoption of the product.

C- Acknowledging Customer-
It is important for the brand to understand what the customer expects from us as a brand. It
is always better to have a viewpoint that ‘why won’t people buy our product even though
the product is not awesome?’ This exactly helps us to know what consumers expects from
us and how do they perceive us a brand. As in respect to Colgate Lasagna, it was becoming
difficult for the brand to understand where the product lie, Colgate was preferred by the
consumers as a brand meant for oral hygiene.

D- The Attribute Tips-

For any of the new product innovation that takes place in the market it is important to have
the clarification in the mind of the consumers with respect to the attributes, benefits and
Uniqueness of the product. It is important for the brand to engage the target segment with
the brand activities so increase the brand recall in the mind of the customers.

E- High Margins-
Especially when we talk about the distribution approach, the wholesalers and retailers play
a very significant role in the product distribution. The high margins for the retailer and
wholesalers act as a great motivation for more sale of the product.

F- High Proportion of Shelf Display-

The more the shelf display of the product is the easier it is easy for the customers to recall
the brand.
SWOT Analysis:

Strength:
a- Efficient Supply chain-
Colgate was already operating in the market into the oral and hygiene segment, so it already
had a well-established supply chain system in the market.
b- Brand Visibility-
As Colgate had a well renowned name in the other segment and people could easily recall
the name of the brand due to it association with different segment.
c- Financial Position-
Colgate has a well-established financial position as compared with its competitors.
d- Market Share

Weakness:
a- Commoditized Brand Name-
Colgate as a brand name was popular for oral and Hygiene segment hence had a
commoditized brand name and difficult for the consumer to perceive it as a brand name of
the food and beverage segment.
b- Saturated Market-
With large number of local & national players fighting in the food and beverage segment,
the market has become saturated & there was little scope for growth while all companies
are eating each other’s market share.

Opportunities:
a- Untapped Market-
Need to tap the untap market, the market for whom the attributes for the ready to cook food
was new. It was easy to penetrate in the market where Colgate was not popular as an oral
and Hygiene brand.
b- Strengthening through mergers-
Since the brand was expand it category if it would have entered the market through
mergers in the same segment, this must have been added to the segment.
c- Usage Rate-  
People need to be made aware about the optimum usage rate for these products so that the
market utilizes the product as forecasted by the company. This can happen only through
advertising /word of mouth /doctor prescription.

Threats:
a- Competition-
With increasing number of local & national players it’s becoming very hard for the
companies to differentiate themselves from others. There is also threat from counterfeit
products destroying its brand image in the market.
b- Ethical Issues
c- Frequent brand Switching-
With highly diversified consumer market where there are lots of brands representing
different and superior attributes, it’s very difficult for consumers to stick to a brand & hence
results into brand switching where consumer got power to select a brand based on several
factors.