New Food Product

Food Product
 Food is material eventually consumed by humans to
satisfy physiological and psychological needs


But the food company and the consumer can
have quite different descriptions of the food product
presented for sale.
Company vs. Consumers

 The company defines a basic functional product to

which it has added packaging, aesthetics, brand, price
and advertising, to give a total company product.

 The consumer describes the product as a bundle of

benefits, relating its tangible and intangible
attributes to their needs, wants and behaviour.
 Characteristics of a New Food Product
as Introduced by a Food Company
 Product has never before been manufactured by that company.

 Product has never before been distributed by that company.

 An old established product manufactured by a company is

introduced into a geographically new area by that company.

 An old established product manufactured by a company is

introduced in either a new package or a new size or a new form.

 An old established product manufactured by a company is

introduced into a new market niche, i.e., positioned as one with
a new function.
Types of New Products

 Line extensions
 Repositioned existing product
 New form of existing product
 Reformulation of existing products
 New packaging of existing product
 Innovative products
 Creative products
 Genetically Modified Products
 Line extensions
Characteristics Example

•Little time or research required for development.

•A new flavor for a line of wine
coolers or for a line of flavored
•No major manufacturing changes in processing bottled waters
lines or major equipment purchases.
•New varieties of a family of canned
•Relatively little change in marketing strategy. ready-to-serve soups

•No new purchasing skills (commodity trading) or •New flavors for a snack product such
raw material sources. as potato chips

•No new storage or handling techniques for either •New flavored bread-crumb coating
the raw ingredients or the final product. This means
that regular distribution systems can be used •A coarser or more natural peanut
butter
Repositioned existing product
Characteristics
•Research and development time is minimal.
•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.
Example
•Oatmeal-containing
products positioned as dietary
factors in reducing cholesterol
•Soy-containing products
repositioned as dietary
factors combating cancer
•Soft drinks positioned as
main meal accompaniments
 New form of existing product
Characteristics
•Highly variable impact on research and
development.
•Highly variable impact on physical plant and •grapefruit or oranges
manufacturing capabilities.
•Major equipment purchases may be
required if manufacturing to be done in-
house.
•Marketing and sales resources will require
extensive reprogramming
Example
•Margarine or butter spreadable at
refrigerator temperatures
Prepeeled fruit or sectioned
•Fast-cooking products such as
rice or oats
•Instant coffees, teas, and flavored
coffees
•Dehydrated spice blends for
sauces
Reformulation of existing
products
Characteristics Example
•Moderate research and development Low calorie (reduced sugar, fat)
required consistent with reformulation products
goal.
Hotter, spicier, zestier, crunchier
•Generally little impact on physical (e.g., peanut butter),smoother
facilities. products

•Generally little impact on marketing and All-natural (“greener”) products,

sales resources unless organic products

•reformulation leads to repositioning of Lactose-free milk products

product. High-fiber products
New packaging of existing
product
Characteristics
•The novelty of the repackaging will dictate
the amount and 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.
Example
Single-serving sizes of, for example,
yogurt
Branded fruits and vegetables
Pillow packs for snack food items
Institutional sizes for warehouse
stores
Squeeze bottles for condiment sauces
Pull-top containers of snack dips
Use of thin profile containers
Innovative products
Characteristics Example

•Amount of research and development •Dinner kits

dependent on the nature of the
innovation. •Canned snack food dips

•Highly variable impact on •Frozen dinners

manufacturing capabilities.
•Simulated seafood products
•Possible heavy impact on marketing
and sales resources.
 Creative products
Characteristics Example
•Generally heavy need for extensive research and Reformed meat cuts
development, therefore a costly venture.
Extruded products
•Extensive development time may be required.
Surimi and kamaboko-based
•May require entirely new plant and equipment. products and soy bean

•Degree of creativity may require development de curd (tofu) and limed corn if these
novo of unique equipment. were discovered recently

•Basically will require total revision of marketing and Short-chain fatty acid containing
sales forces. products

•Creation of a new company or brand may be

required.

•Risk of failure high.

Genetically Modified Products

 Products modified from their traditional shape,

taste, or color by gene splicing technology.
 Production of food is costly

 the technology is extremely expensive

 High cost of research and development

 Ethical Issues
 PRODUCT
I. Product concept
II. Product Mix
III. Product Life Cycle
IV. Adoption and Diffusion process
V. New Product Development
 Product
 A product is anything that can be offered to a
market for attention, acquisition, or use, or
something that can satisfy a need or want. 
Kotler distinguished three components:
 need: a lack of a basic requirement;
 want: a specific requirement for products or
services to match a need;
 demand: a set of wants plus the desire and ability
to pay for the exchange
 Product Life Cycle (PLC):

Describes the advancement of

products through identifiable
stages of their existence.
PLC