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3/15/2018

NEW FOOD PRODUCT IDEA


GENERATION

Dr. Duong Thi Ngoc Diep


March, 2018

Course outline...

Course will familiarize students with

initial stages of food product


development, including definition and
articulation of a problem, generation of
ideas to solve the problem, screening
of ideas, and the formal presentation
of a new product concept.

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New-Product Development Process


• Idea generation
• Idea screening
• Concept development and testing
• Marketing strategy development
• Business analysis
• Product development
• Test marketing
• Commercialization
8-3

PART I: NEW PRODUCT DEVELOPMENT

i. Significances of new product development

ii. Key components for successful NPD process

iii. Food consumption trends (approaches to new product


development)

iv. Involvement influences buying food products

PART II: FOOD PRODUCTS

i. What is a food product – Product concept

ii. Components of a food product

iii. Product life cycle

iv. Type of new food product

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PART III: NEW FOOD PRODUCT IDEAS GENERATION

i. Sources for idea generation

ii. Idea generation - screening techniques.

iii. Quality function deployment (QFD) – an idea generation


model

PART IV: ORAL PRESENTATION

SUGGESTED READINGS...

• Creating New Foods. The Product Developer's Guide -


the Web Edition

http://www.nzifst.org.nz/creatingnewfoods/

• Earle, M.D. (1997) 'Changes in the food product


development process', Trends in Food Science and
Technology, 8(1), 19-23.

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NEW FOOD PRODUCT IDEA


GENERATION

INTRODUCTION…

• Product development is the process by which a


company does one of two things:
1) Creates an entirely new product that
either adds to an existing product line or
occupies an entirely new niche;
2) Modifies or updates an existing product
• Product development is a basic activity in the
food industry

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• Product:
“is a good, service, or idea
consisting of a bundle of
tangible and intangible attributes
that satisfies consumers”

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Why product development?

Why product development?

- Product life cycle

- Competition

- Consumer demand: innovative

- New technology: high pressure processing


(HPP), extrusion, spray-drying…

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• PLC: new products being introduced, products


contributing to rapid growth, products reaching
maturity, and old products dying.

• A live and enduring PLC: requires a far-sighted


and organized product development program 
directs innovation in line with the objectives of
the company's business strategy.

Why product development?

- Product life cycle (PLC)

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Sales Low sales


Costs High cost per customer
Profits Negative
Create product awareness
Marketing Objectives
and trial
Product Offer a basic product
Price Use cost-plus
Distribution Build selective distribution
Advertising Build product awareness among
early adopters and dealers

Sales Rapidly rising sales


Costs Average cost per customer
Profits Rising profits
Marketing Objectives Maximize market share
Offer product extensions,
Product service, warranty
Price Price to penetrate market
Distribution Build intensive distribution
Advertising Build awareness and interest in
the mass market

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Sales Peak sales


Costs Low cost per customer
Profits High profits
Marketing Objectives Maximize profit while defending
market share
Product Diversify brand and models
Price to match or best
Price competitors
Distribution Build more intensive distribution
Advertising Stress brand differences and
benefits

Sales Declining sales


Costs Low cost per customer
Profits Declining profits
Marketing Objectives Reduce expenditure and milk the
brand
Product Phase out weak items
Price Cut price
Go selective: phase out
Distribution unprofitable outlets
Advertising Reduce to level needed to retain
hard-core loyal customers

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Sales and
Profits ($)

Sales

Profits

Time
Product Introduction Growth Maturity Decline
Develop-
ment

Losses/
Investments ($)

Why product development?

- Product life cycle

- Competition

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Why product development?

- Product life cycle

- Competition

- Consumer demand: innovative

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Why product development?

- Product life cycle

- Competition

- Consumer demand: innovative

- New technology: high pressure processing


(HPP), extrusion, spray-drying…

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HPP destroys food-borne pathogens


and spoilage organisms, ensuring
product safety and enabling longer
shelf life. Specifically, the technology
destroys food-borne pathogens such as
Salmonella, E. coli and Listeria. This
system helps foods retain more of
their fresh taste, color, texture and
nutritional values than is possible with
other food processing techniques that
depend on chemical additives or heat
treatments.

(Avure Technologies Inc., Pat Adams, 253-850-3500)

aaaaa
aaaaa

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Why product development?


- Product life cycle

- Competition

- Consumer demand: innovative

- New technology: high pressure processing (HPP),


extrusion, spray-drying…

- Rules to be followed

Codex
GAQP FAO
GMP/GHP GAP

TCVN BIOTERRORISM
TQM
HACCP ACT 2002

ISO 9000:2000 EU Food


TRACEABILITY
Law
ISO 14000 ISO 22000:2005
EUREP GAP

SSOP
TCN SCM DIOXIN

ORGANIC FOODS HALAL FOOD GMO

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Bioterrorism Act:

Title I - National Preparedness for Bioterrorism and


Other Public Health Emergencies
Title II - Enhancing Controls on Dangerous Biological
Agents and Toxins
Title III - Protecting Safety and Security of Food and
Drug Supply
Title IV - Drinking Water Security and Safety
Title V - Additional Provisions

Why product development?

- Product life cycle

- Competition

- Consumer demand: innovative

- New technology: high pressure processing


(HPP), extrusion, spray-drying…

- Rules to be followed

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It is significant !!!

"Everyone in industry knows that new products are


essential for viability: If we do not continue to grow, we
die. To grow, a company must continue to learn
(research) and to make a difference in its industry
(pioneer)…. Business, whether it sells waste
management or interstellar communications, janitorial
services, lives through new growth — not through
clones of the past."

(George Gruenwald, New Product Development: Responding to Market Demand)

“Future profits will be derived from future products”

"Innovate or die ? “

"At trade shows, the first thing customers say is,


'What's new?' Every year you have to raise the ante.
If you were not to do it, you'd be left in the dust” –
(The Nations)

“40% of the company’s revenue are from products that


are less than 5 years old” - (Booz Allen Hamilton)

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Significances of NPD

1. To stimulate growth
Growth conveys an image of success to
the investors and the financial community.

2. To respond to competition
Necessary to protect the firm’s
competitive position.

3. To reduce cost
- Enfa of Mead Johnson doubled capacity from 900g to
1.8 kg  cheaper unit price,
- 20g packs of Nutifood affordable for ordinary use

4. To stimulate sales of other items

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5. To utilize the excess


capacity
To enhance cost and resource
effectiveness, firms produce
alternative products to utilize
their excess capacity.

6. Creativity management

7. To increase cash flow and profitability

8. To respond to change in environment

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• The world of food


product development
has changed.

• It is estimated that a
new product is
launched every 20
mins.

• Speed is the fuel that


drives the process.

Types of NPD programs...


• Product improvement,
• Product line extension
• Product re-launch,
• Product innovation.

 Need integration across the company and also


strong leadership from top management: good
communications and sympathetic, informed
leadership.

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• A new product is a combination of several


elements:

- Creativity
- Knowledge transfer
- Design engineering
- Production skills

What and Who involve in NPD...


• Company's internal organization,
• The market and marketing,
• The customers and the consumers,
• The technological ambience surrounding
the company,
• Competitors,
• The social and physical environments in
which the company operates.

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Key Components For Successful


Product Development Process…

• Assess senior management’s commitment to


new product development.

• Finding the right idea.

• Developing business case for the product.

• Development and commercialization of the


concept.

Key Components For Successful


Product Development Process…

• Team approach offers the best for product


commercialization.

• Management provides the money and time.

• Makes to the bottom-line and time frame to go


for short term hits or long term product with own
identity.

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Organization’s commitment…

• Is easier to be successful if an organization understands


management’s commitment to the new product process.
Clues:

a. Quality of mix of staffing that is provided to drive,


direct and manage the PD process – seasoned staff to
fresh staff.

b. An organizational structure that is not overly


bureaucratic and layered.

Finding the right ideas…

• Strategic assessment of current platform of


business (Core competencies and unique
strengths that the company has).

• Consumer assessment
Understand consumer mindset, attitudes,
lifestyle and demographic needs.

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Case Study “McDonald's: Can it Regain its Golden Touch?”

In 1991, Business Week chronicled the millions McDonald's was pouring into
experiments for new products for the US market. In 1998, they listed the flops:
Carrot Sticks: still available as an optional item in some US restaurants.
Fried chicken: This was no McNuggets. Though available in much of Asia, it's off the
menu in the US along with the corn-on-the-cob that came with it.
Pasta: McDonald's tried the old favourites, spaghetti and lasagna, with garlic bread.
Neither is available anymore in the US.
Fajitas: The McDonald's version of this popular Mexican dish never took off, though
it's still available in a few US restaurants.
Pizza: The company devoted an entire annual franchise meeting to talking up this
fast-food favourite. Pizza survives in Canada, but it is no longer in the US.
McLean Deluxe: This low fat sandwich debuted in 1991 to woo health conscious
customers. It was erased from the menu in 1996.
Last successful product: Chicken McNugget in 1983.
The company has now emphasized that the heart of the company's menu will
remain the same - the burger. 'We will extend our line, rather than going in more radical,

Think Break
Product strategies: new products from McDonald's

In the 21st century, McDonald’s have continued to introduce new products and
indeed new part menus, such as breakfast, in the USA.

Look up McDonald’s USA Food News on the web site


http://www.mcdonalds.com/usa/eat/features.html

Suggest the reasons that the company might have in introducing these
products – the consumers and their needs, company strategies, changing
environment.

You will see that there is nutrition information provided on this web site for
consumers. Discuss the main aims of this information as regards product
and menu selection.

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THE PRODUCT DEVELOPMENT


PROCESS

Four important stages:

 Product strategy

 Product design and process development

 Product commercialization

 Product launch and evaluation.

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• Product strategy is a time of laying the


essential foundation;

• Product design and process development is


a time of creativity and innovation;

• Product commercialization is a time of


integrated forward flow;

• Product launch and post-launch is a time of


review and decision-making.

1. Product strategy

Starts with…
1. Generation of new product ideas
2. Outlining of the product design
strategy

It ends with…
1. The product concept
2. Product design specifications

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Desk research
Market data study Technical information search
Product ideas search
Target consumers’ study Marketing info search
Societal, political environment Company environment

Desk analysis
How big is the market? What is the raw material
What are the possible products?

Who are the consumers What is the distribution?


What are society’s attitudes? What is the marketing method?
What are the regulations?

Outcomes
Clearly defined project aim
with target market, product, marketing, processing
Required outcomes from each stage
Constraints from environment and company

SWOT analysis

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SWOT analysis

SWOT analysis

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Stage 2: Product design and process


development

– Technical implementation: Quality management


system, resource estimation, engineering operations,
logistics plan ...  Feasibility report

– Test marketing: produce a physical prototype or


mock-up, test the product (and its packaging) in
typical usage situations, conduct focus group
customer interviews or introduce at trade show, make
adjustments where necessary, produce an initial run
of the product and sell it in a test market area to
determine customer acceptance.

Product design is an essential part


of the product creation process in
equal cooperation with engineers,
marketers and consumer research.

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• Consumer researchers build the consumer/product


relationship throughout the PD process.

• Market researchers analyze markets and design the


marketing and distribution methods in the market
strategy.

• The food engineer and technologist research the


product and the process together in co-engineering
and design the production and physical distribution
methods.

• The food product designer researches the social


and cultural backgrounds and designs the holistic
product.

Product Design

Marketing, product designer Product designer, production


Marketing design Product qualities design
Market predictions, price testing Product qualities optimised
Market channel study Final product specifications
Promotions study Quality assurance building

Production, marketing, process Process designer, engineering,


designer Production
Physical distribution design Plant design
Shelf-life studies, Engineering design, building,
storage, transport research Process control, commissioning

Marketing, production, product designer


Process designer, finance
Integrated product, production, market plans

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Think Break

Discover what are the basic factors


and methods in designing food
products.

Constraints on the product development project


Product Processing Marketing Financial Company Environment
Eating quality Equipment Channels Fixed capital Strategy Local
government

Composition Capacity Distribution Working Structure National


capital government

Nutrition Raw Prices Investment Expertise, Industry


materials knowledge agreements

Packaging Wastes Promotion, Project Location Farmers'


advertising finance agreements

Shelf life Energy Competitors Cash flows Management Economic status

Use Water Size Profits Innovation Business cycle


policy

Safety Personnel Product mix Returns Size Social


restrictions

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Project plan
• List all the major activities

• Place them in logical sequence (project logic flow)

• Time each activity from start to finish (project


scheduling plan).

• Identify the money, resource needs, personnel, for


each activity (project resource plan).

• Identify activities that are critical for time and resource


(project operational plan).

Think Break
Product commercialization: coordination of resources and project
timing

In product commercialization, there is research and development by


the production, marketing, and finance sections of the company as
well as the product development team.

Discuss the problems of coordinating this work?

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Think Break
Product launch: PD methods for large and small numbers of
new products launched per annum

A household appliance company may only launch two or three


products per year, but a large food company may launch 50-100
products.

What effects will these differences in new product numbers


have on the Product Development Process ?

THANKS FOR YOUR ATTENTION !

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FOOD PRODUCT IN NPD


POINT OF VIEW

Dr. Duong Thi Ngoc Diep


March, 2018

What is a product?

• A product is not just its physical characteristic


or ingredient.

• It has a more complex meaning called a


product concept.

• Product concept consists of a number of


components: core component, packaging
component and support service component.

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What is a product?

this must provide customer


benefit

core physical engineering, to build a


concept product benefit delivery system

extended = associated delivers the total offer,


product services maximize customer benefit

There is continuous interaction between the 3 layers


of food product and four groups of people:

– Customers

– Product designer

– Technical and marketing

– Product design specs.

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What is a product?

• Consumers define a • Company defines a


product as a bundle product as a basic
of benefits relating to functional product to
its tangible and which it has added
intangible attributes to packaging, aesthetic,
their needs, wants brand, price and
and behaviour. advertising, to give a
total company product.

What is a product?

• Consumers • Company defines a


compare a product new product as
with the ‘old’ one as having some
well as competing differences in the
products; if there is basic function and
difference then, is a aesthetic
new product to them presentation.

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Product development is all


about reconciling these two
points of view

Simple food product definition

A food product is made of several components:

Support service
component

Packaging
component

Core component
(Ingredients)

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• Core component: Refers to the physical


feature of the product.
Example:
1. Breakfast cereal – made of corn, barley,
contains sugar, etc. (the ingredients)
2. Computer – memory, speed, operating
system, etc.

Marketing experts argue that the above


parameters are least important because
many products are similar.

Types of New Products

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Repositioning
- Identity -
• Lucozade brand drink has been in the market for
over fifty years and not doing well. Products
being repositioned as a “glucose energy drink
with orange barley and lemon barley flavor in
a new packaging and in a diet variety”. It
became very successful.

Brand stretching
- same brand name, different product category -

• Rewarding if a brand is well established


e.g Mars chocolate company introduced a
new product named MARS Milk shake.

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Creating New Market


• Making soft drinks over
hot beverages such as
coffee and tea by
venturing ready-to-drink
iced coffee and tea.
e.g Cappucino, espresso,
iced tea.

Creating New Market

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Creating New Market

Modification
• Involves altering one or more features of an
existing product.

• To be more obvious, often modification is done


externally e.g product design.

• This means keeping products up to date and


maintaining the momentum of a product line by
replacing and updating ageing models.

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Differentiation
• Is when both the old and new models are
offered simultaneously for sale. It expands
existing product lines by offering
additional versions of the basic product
concept.

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Diversification

• Addition of different new products for other


application. It broadens offering. Involves
technological as well as marketing
change.

Diversification

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Market Extension

• Market extension means entering


additional markets with current
products to obtain additional sales from
new users.

• Example:
– More target groups
– Exporting

Product Life cycle

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Product Life cycle

• A product, like consumers have a life cycle.


• It is divided into 4 sections:
1. Product introduction
2. Market growth
3. Market maturity
4. Sales decline

Product Life Cycle

maturity
shakeout
decline

growth

introduction

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FOOD CONSUMPTION TRENDS

FOOD CONSUMPTION TRENDS

 Oriented to serve customer needs

 Tendency to personalize

 The expansion of the concept of


food quality

 Globalization trends

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FOOD CONSUMPTION TRENDS 

Approaches to supply chain

 New technologies

 The acceptability of products


by customers

Reading more…

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The acceptability of products by


customers

• Increased consumption of fresh foods:

vegetables, fruits, meats, dairy

• Growing health / nutrition orientation:

specialty foods, quality packaging

• Desire for convenience:

women are part of the work force

• Eating out very common: up to 50 % of food budget

Recall:
Branding is Important
A brand is a name, term, sign, symbol, design, or a
combination of these.

Intended to identify goods or services of one seller


and to differentiate them from competition.

A strong brand reduces the need to search,


and builds in reasons to buy

For packaged food products, branding is critical

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What is a Brand?

The Brand is a simplifier;

it eliminates confusion, and


reduces customer decision time.

It helps the customer


to cut through the clutter.

Brand Image is Very Important

Brand image is the basis for choice when


consumers do not think much about products.

Brand loyalty is very strong, defined as


repurchase of same brand(s)

Most middle class consumers are brand loyal.

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Starbucks: a coffee shop culture ?

Customer choice criteria


at Starbucks in Singapore

three top criteria for choosing Starbucks:

1. shop image / brand image


2. accessibility / convenience
3. ambience

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Example: Halida Beer

Halida beer, north Vietnam


brand personality: patriotic national beer

does very well in pubs, restaurants,


poor sales in outlets for take-home;

patriotism is serious business in Vietnam,


but people want fun at home in private.

Package is very important


in establishing brand image
Package has two key elements:
functional, marketing communications

The communication element is critical in


the store; many consumers do not
choose brand before entering the store.

Brand choice depends on what happens


inside.

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When Do Consumers
Choose Brand?
• Before entering store:
need advertising to get them;
• After already in store:
packaging, in-store sales promotion,
merchandising to get them;
• Many consumers do both
for same product at different times.

Packaging / display are key

much “loyalty” comes from


good in-store attention;

customers often choose


the more attractive package
if they see little difference in quality

willing to pay more for good package


about 10 % if believe product good

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Pricing issues

Pricing strategies can be


• cost based (look inside)
• market based (look outside)

value to the customer must balance against


cost to the company

Market based looks outside

Market based pricing


prices must adapt to

• what customers will pay


(consistent with our image in the market)
• competitors' prices
• regulatory constraints

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Pricing follows Product Life Cycle

in each stage, consider


characteristics of maturity
customers, shakeout
decline
competition

growth

downward pressure
introduction
on prices

Recognition Process

advertising in-store merchandising


& sales promo

view ad & see search


store image similar brain
image

recognize check for familiar = good


negatives

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Both Recognition & Recall


for complete market access

many consumers decide before entering store:


need advertising to get them;

many others decide after already in store:


advertising plants the visual image,
packaging, in-store sales promotion,
merchandising triggers;

many consumers do both


for same product at different times.

Repetition Tactics
repetition - exposure over and over
(without necessarily gaining conscious attention)

high frequency and high consistency


very effective for recognition awareness
TV is a very expensive way to do this,
but sometimes used by major brands.
they spend a lot of money.
radio works well if we do not need
strong visual recognition; use for recall

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Repetition and Information

repetition can get storage of information,


but not processing, i.e.,
not much thinking about the information.

so not much good for evaluation;


but we don't always need evaluation.

why is Pepsi for the young generation?


simply because they told us so often.

Sales Promotion

mainly short-term;
temporary incentive to buy,
immediate information and/or reward.

work best in later stages of buying process

especially for action:


trial (first purchase)
use (repurchase)

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In-Store Objectives
• in-store promo triggers recognition;

• gains attention if already known;

• reminds of past experience;

• differentiates brand
if no brand already chosen.

Strongly Brand Loyal


Less Likely to Use

sales promotions are less effective


when people are strongly brand loyal,
believe one brand is clearly better.

switching for a small promo advantage


requires giving up product advantage;

sales promotions add small value,


only overcome very small differences.

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When They Work Best

consumers do not think much


about product characteristics;
usually low involvement.

trigger for recognition awareness;


trigger for desire to try (innovators)

Similar Products in Acceptable Set

also work when consumers do evaluate,


but see little difference among brands.

sales promotion can gain product choice,


because it supplies a difference.

even works for high involvement products,


if consumers see little difference.

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Price vs. Quality Promotions


Appeal to Different Segments

price oriented: mainly like price promotions

value oriented: value = quality / price;


either type is attractive.

quality oriented: less interested in any


promotions,
but tend to prefer quality when use at all.

overuse can damage image in v, q segments.

Discount Promotions

note: higher discounts can get less response

H
most consumers perceive
quality some relationship;
high discounts more likely
L to make people consider
L price H p / q relationship

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New Product Failures


Reasons and Safe Guards

1. Market too small

Elaboration Suggested Safeguards

Insufficient demand for Market is defined and rough


this type of product potential estimated in the
opportunity identification and
concept test phase.

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2. Poor match for company

Elaboration Suggested Safeguards


Company capabilities do Opportunities are
not match product matched to company’s
requirements capabilities and strategic
plans before starting
developments.

3. Not new/not different

Elaboration Suggested Safeguards


A poor idea that really Creative and systematic
offers nothing new idea generation. Also
early consumer check to
see how idea is
perceived

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4. No real benefit

Elaboration Suggested Safeguards


Product does not offer In the design stage,
better performance perceived benefits of
concepts as well as
benefits from actual
product use are tested

5. Poor positioning or
misunderstanding of consumer
needs

Elaboration Suggested Safeguards


Perceived attributes of Use of perceptual
the product are not mapping and preference
unique or superior. analysis to create well
positioned products.

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6. Inadequate support from


channel

Elaboration Suggested
Safeguards
Product fails to generate Assessment of trade
expected channel response in pretest
support market phase

7. Forecasting error

Elaboration Suggested Safeguards


Overestimation of sales Use of systematic methods
in design, pretest, and test
phase to forecast
consumer acceptance

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8. Competitive response

Elaboration Suggested Safeguards


Quick and effective Good design and strong
copying by competitors positioning to preempt
competition. Quick
diagnosis of and
response to competitive
moves

9. Changes in consumers taste

Elaboration Suggested Safeguards


Substantial shift in Frequent monitoring of
consumer preference consumers perceptions
before product is and preferences, during
successful development and after
introductions

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10. Changes in environmental


constraints

Elaboration Suggested Safeguards


Drastic changes in key Incorporation of
environmental factor environment factors in
opportunity analysis and
design phases. Adaptive
control.

11. Insufficient return and


investment

Elaboration Suggested Safeguards


Poor profile margins and Careful selection of
high costs markets, forecasting of
sales and costs and market
response analysis to max
profits

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12. Organizational problems

Elaboration Suggested Safeguards


Intra-organizational Multifunctional approach
conflicts and poor to new product
management practices development to facilitate
intra-organizational
communication.
Recommendation for a
sound formal and informal
organizational design.

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NEW FOOD PRODUCT IDEA


GENERATION

QFD - A Tool to generate idea

Dr. Duong Thi Ngoc Diep


March, 2018

FOOD CONSUMPTION TRENDS

 Oriented to serve customer needs

 Tendency to personalize

 The expansion of the concept of


food quality

 Globalization trends

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FOOD CONSUMPTION TRENDS 

Approaches to supply chain

 New technologies

 The acceptability of products


by customers

Why product development?

- Product life cycle

- Consumer demand: innovative

- Competition

- New technology

- Rules to be followed

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Three Approaches to New Product Development

Consumer Driven Competition Technology


Driven Driven
Idea generation Technology
needs and
Market
application ideas
Concept development and analysis
Consumer screening Technology and
Concept Engineering facility
Business
Identification
Analysis
And Business analysis
Screening
Product
Prototype
Development
Product development
Development
Consumer/Lab Production
Testing Testing

Advanced
Test marketing COMMERCIALISATION Development

Four important stages:

 Product strategy

 Product design and process development

 Product commercialization

 Product launch and evaluation.

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Stage 1: Product strategy

Starts with…
1. Generation of new product ideas
2. Outlining of the product design
strategy

It ends with…
1. The product concept
2. Product design specifications

Stage 2: Product design and process


development

– Technical implementation: Quality management


system, resource estimation, engineering operations,
logistics plan ...  Feasibility report

– Test marketing: produce a physical prototype or


mock-up, test the product (and its packaging) in
typical usage situations, conduct focus group
customer interviews or introduce at trade show, make
adjustments where necessary, produce an initial run
of the product and sell it in a test market area to
determine customer acceptance.

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• Stage 3: Commercialization
– Launch the product,

– Produce and place advertisements and other


promotions,

– Fill the distribution pipeline with product

• Stage 4: Product launch and post-launch

The Product Development Process

Stage 1: PRODUCT STRATEGY DEVELOPMENT

Activity 1 Activity 2 Activities 3, 4, 5...

OUTCOME OUTCOME OUTCOME

DECISION DECISION DECISION

PRODUCT REPORT, PRODUCT CONCEPT

TOP MANAGEMENT DECISION


GO/NO-GO

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The Product Development Process

Stage 2: PRODUCT DESIGN AND PROCESS DEVELOPMENT

Activity 1 Activity 2 Activities 3, 4, 5...

OUTCOME OUTCOME OUTCOME

DECISION DECISION DECISION

FEASIBILITY REPORT, PROTOTYPE PRODUCT


TOP MANAGEMENT DECISION
GO/NO-GO

The Product Development Process

Stage 3: PRODUCT COMMERCIALIZATION

Activity 1 Activity 2 Activities 3, 4, 5...

OUTCOME OUTCOME OUTCOME

DECISION DECISION DECISION

COMMERCIAL REPORT, COMMERCIAL PRODUCT


TOP MANAGEMENT DECISION
GO/NO-GO

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The Product Development Process

Stage 4: PRODUCT LAUNCH AND EVALUATION

Activity 1 Activity 2 Activities 3, 4, 5...

OUTCOME OUTCOME OUTCOME

DECISION DECISION DECISION

FINAL EVALUATION REPORT, COMPANY PRODUCT


TOP MANAGEMENT DECISION
GO/NO-GO

Typical phases of product


development design

• Idea generation
• Concept development Stage 1

• Product planning
• Product/process engineering
Stage 2
• Pilot production/scaling-up

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Inherent Properties of Food


Products According to TCVN

• Example for Heat Treated Processed


Meats

“TCVN – 7049 – 2002: Heat treated


processed meat”

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• Example for Canned Milks

“TCVN – 3220 – 79: Canned milks, the


nomenclature of indexes”

• Example for Fruit Juices

“TCVN – 6297 – 1997: General standards


for fruit juices preserved exclusively by
physical means, not cover by individual
standards”

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Relevant Factors of a Food Product


defined in TCVN
• Physicochemical indexes
• Sensory parameters
• Microbiological parameters
• Additives parameters
• Toxic residues parameters
• Packaging
• Labelling
• Test method
• Transportation
• Storage

Relevant Factors of a Food Product


defined in TCVN
• Physicochemical parameters: contents of
protein, sugar, fat, water….; viscosity, size,
shape…
• Sensory parameters: color, flavor, texture...
• Microbiological parameters: E. Coli,
Coliform, molds, yeasts...
• Additive indexes: colorants, flavoring
substances, structuring agents...

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Relevant Factors of a Food


Product defined in TCVN

• Preservatives: antioxidants, anti-molds...

• Toxic residues: contents of heavy metals,


pesticide residues...

• Packaging: material, size, net weight...

Quality Function Deployment


(QFD) – Tool to generate idea

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 Appeared since 1966 in Japan, by Yoji Akao.

 QFD - “hin shitsu (quality) - ki nou (function)


- ten kai (deployment)”
 Was successfully applied by Toyota, Honda…
 There are four phases involved in QFD

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 The house of quality is the most commonly


used matrix in QFD.

Correlation matrix

Assessment
2. Customer
Competitive
(Relationship Matrix)

Information from QFD

• Who the customers specifically are and what do


they want (WHATS)

• How government regulations and executive


wants affect customer satisfaction (OTHER
WANTS)

• How the company measures the achievement of


the wants through product requirements
(HOWS)

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Information from QFD

• Formalization of the communication


(product development) process.
• Competitive standing from technical and
customer viewpoint, looking for
consistency and product opportunities

• Key correlations that need to be


addressed for Trade-off decisions,
adjusting target values, R&D decisions.

“Asahi Super Dry: crisper, clear, fresh


tasting beer”

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Quality Function Deployment (QFD)

1. Identify customer wants (WHATs)


2. Identify how products/service will satisfy
customer wants (HOWs)
3. Relate customer wants to product (HOW
MUCH)
4. Identify relationships between the customer’s
WHATs and the firm’s HOWs (RELATIONSHIP
MATRIX)
5. Develop importance ratings
6. Evaluate competing products

House of quality
Importance
Correlation matrix

HOWs
Product Requirements Customer ratings

WHATs Customer 5
Customer Relationship Matrix Competitive
Requirements Assessment 1

Objective target value HOW MUCH

5
Organization
Engineering difficulty
1 Competitive Assessment
Important
controls
IMPORTANCE

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House of quality

CORRELATION
MATRIX

HOW

COMPETITIVE
RATING
CUSTOMER

WHAT
RELATIONSHIP
RATING

MATRIX

1
5 1 5
HOW MUCH
1

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Speed
+ Flour
density

Oven
Cake

Density
Metering

Cake
equip

.5g/cc
not
heavy
.5g/cc

350F/.5h
Medium
1 cup

Product Ingredient & Food Production


planning Process Planning Planning

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Flow easily from the bottle


EASY TO SERVE
Pours without scattering

THỰC HEALTHY Still sweet but no sugar


Contains less salt
PHẨM
There must be a tomato aroma
KETCHUP TỐT
Should have a salty taste
NHẤT TASTY
Not too acidic
THE Should be spicy
BEST TO
Can feel the vinegar taste
EAT
Can fell the tomato taste
It is thick in the mouth
Manufacturing waste is reduced

NO DEFECT It never spoils


No water at the surface
Proper stirage indication
Innovative usage suggestions
CLEAR Tomato content information
GOOD INFORMATION
PACKAGING “Green” practices information
AND Can see the product inside

KETCHUP

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KETCHUP

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