Prod Development.pdf

8/14/2019 Prod Development.pdf

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FOOD PRODUCT DEVELOPMENT

STAGE 1: PRODUCT STRATEGY DEVELOPMENT

This stage ends with decisions on the type of product to develop and the viability of the project for thecompany; the two main outcomes on which the decisions are based are respectively the product design

specifications (the product concept) and the project evaluation (the product report).

The activities therefore form two interlocking groups - one developing product ideas and product concepts,and the other gathering the information and analysing it for the production, marketing, financial, legal,environmental and social evaluations.

Some of the important pathways of activities, outcomes and decisions in the first stage are:

Activities OUTCOMES DECISIONS

Business Strategy Product mix strategy New product areas

Change prediction PD possibilities PD plan

Information search PD project identified Project aim

Idea generation Product concepts Product concept selected

Concept engineering Design specifications Technical acceptance

Market analysis Sales/profits prediction Market acceptance

Note that these pathways are often interlinked; for example, the product development possibilities come from the productmix strategy as well as the technological, consumer and social change predictions. The market and technical informationsearch may lead to product ideas as well as to the project aim. The product design specifications come from the productconcept through concept engineering.

These paths are more of a thought checklist rather than paths that are taken in every project.

This is a stage of both creativity and evaluation. There is a need to collect information on as many areas aspossible, to determine its accuracy and then to build up the whole base for the project from it.

At the end of this stage, there is an assessment by senior management of the probability of successin the market, the time/costs for the remainder of the project and its continuing harmony with thebusiness strategy. Finally there is the decision to go on with this product and provide the resources.

The product development project starts with the selection of the project and then continues to the end ofStage 1 and into Stage 2: product design and process development. There is not a definite demarcationbetween the two stages - it depends on the company and the type of product. Sometimes the decision to goon is taken after the product concept is completed if design is not technically difficult; at other times it is takenafter the product design specifications. It should be realised that both the product concept and the productdesign specifications continue to develop throughout the design process.

STAGE 2: PRODUCT DESIGN AND PROCESS DEVELOPMENT

At the end of this stage the decisions to be made by management can be divided into the product, theproduction and distribution, the market, the financial predictions and the level of risk. Management need toknow:

Is the product satisfying consumer needs and wants?Is it safe?Is it legal?What is the market and can the company service this market?Can the present market channels be used, or are new ones needed?Are there raw materials available?


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Will the production be accommodated in the present equipment, oris new equipment needed?What are the costs of further development and commercialproduction and marketing?Can the present storage and transport methods be used, or is anew method needed?

What are the estimated profits and probabilities of success?

Some of the important pathways of activities, outcomes and decisions in the second stage are:


Product design Prototypes Technical capability

Consumer testing Acceptance Market suitability

Product optimise Final prototype Companycompatibility

Process design Process conditions Technical feasibility

Market testing Sales prediction Market success

Costing analysisCosts (capital andoperating)

Financial success

Certain product characteristics are defined in the product design specifications. The technologist designs,makes and tests the product against these product standards. Product design specifications cannot be rigidlymaintained: there has to be the opportunity for creative design of the product. Product concept engineeringcontinues in the design stage, as more information is gathered to define the product characteristicsquantitatively.

The raw materials and the processing conditions are investigated as the product is developed. Importantconsiderations during this product design/process development stage are the test procedures used; these arerelated to the qualities required by the customer/consumer and not to arbitrarily chosen standards. As early aspossible in the development, some of the future buyers and users of the product use and eat some of theproduct prototypes. It is comparatively inexpensive to change a formulation or a product form at this stage, butexpensive if done during the plant trials and even more so during final production. Therefore, it is important toexperiment as much as possible with the product and the process at this stage.

The basic packaging design is started at this time as it is usually an integral part of a food product, givingprotection and use. This is also related to the proposed physical distribution, including storage and transport,which really is a continuation of the processing design. The product prototypes are tested under the conditionsexpected in the physical distribution so that the shelf-life of the product can be predicted.

Finally in product design, preliminary production trials are organised and the final product prototype putthrough a large consumer test so that the level of technical success and market acceptability can bepredicted.

At the end of this stage, there is an assessment by senior management of the product, the targetmarket, the compatibility with production and marketing, the predicted capital investment, thetime/costs for the remainder of the project, the risk of failure in the next stage and the continuingharmony with the business strategy. The decision - to go on to product commercialisation, a muchmore expensive stage - is an important one.

STAGE 3: PRODUCT COMMERCIALISATION

At the end of this stage, the top management decision is to go on or to stop before committing to the largeexpenditure of the launch.


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Some of the important pathways of activities, outcomes and decisions in the fourth stage are:


Marketing organisation Time, people, costs Effectiveness

Production organisation Quality, quantity, costs Specifications met

Distribution organisation Time, costs, convenience Efficiency

Launch sales analysis Sales/customers Marketing changes

Product, production study Quality, efficiency Improvement

For marketing, the next steps are to train the sales staff and to persuade the retailer to accept the product.

The decision of the retailers to accept or reject is based on product attributes such as strong growth in the productcategory, a new product or a me-too product, acceptable product quality and high expected profit contribution, but they arealso influenced by strong promotion and advertising, competition, adequate funds for the retailer's promotion and

discounts.

The retailer is very often a supermarket chain and they may have product specifications which have to be met(and should have been recognised much earlier in the project). They may also charge for shelf space andhave a pre-determined price range.

For production, the plant is built or organised, the production personnel trained, quality assurance programmeput in place and production begun. The stocks of the product are built up in stores and finally distributed to theretailers.

For marketing, the final step is to ensure the distribution of the product, its placement on the retailers' shelveswith any in-store promotion and then the release of the advertising. All is then ready to commence on theproduct launching date - the advertising is placed in the media and the product is put on the shelves in the

supermarket or the store. The only step remaining is for the consumer to buy the product so that the retailerwill keep on ordering it. The sales personnel, particularly the merchandisers, have to ensure that the shelvesare kept stocked, the displays are attractive and the retailers' problems with the products are solved.

In the evaluation after the launch, the sales of the product are monitored, and the product's performancechecked in production, distribution, storage and the supermarket. The retailers' attitudes to the product andtheir placement and promotion of the product in the supermarket are studied - as well as, of course, theconsumers' attitudes and behaviour towards the product. On the production side, the yield of the product andthe quality of the product are monitored, but also important are the raw material quality and quantity, theequipment functioning and the labour content. This monitoring usually leads to product improvement,production and quality assurance improvement, and cost trimming, and often to changes in distribution and inmarketing methods. The time after launching is a time of constant improvement of product and process, ofreduction in production costs and of increase in the effectiveness of the marketing methods.

After the launch, there is an assessment by senior management of the financial returns and the effectthis product is having on the business strategy. Decisions are taken at set times to either pull theproduct from the market or adopt it into the product mix.

IDEA GENERATION

Idea generation is based on the interrelationships between:

Company Product Consumer

These relationships are constantly changing, and the surrounding environment is also subject to continuous

social and technological change; understanding the changes that are occurring leads to innovative productswhich fulfil a need. The product developer needs to be aware of all these forces and their interactions, fromthe crudest level where marketing simply wants a copy of a competitor's new product (a 'me-too' product) to


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the complex use of a new technology such as pressure preservation or to a major marketing change such asthe shift from multi-person to single and two-person households.

It is the study of the interactions that identifies and refines the product ideas. Is the consumer increasinglyconcerned about waste packaging - can we make an edible pack or a short-term pack? New low temperaturetechnology produces a tomato powder with a fresh tomato flavour - what new product would consumers want

with a fresh tomato flavour, a tomato soup or a fresh breakfast drink?

The creation of all new product ideas - revolutionary or evolutionary - can only be successful if there is anatmosphere which stimulates innovative thought and the search for new ideas. If the company does notencourage the process of generating ideas, then new ideas will not be produced.

To many individuals in the company trained in logical and systematic thinking, free idea generation isfrequently difficult. It seems to be almost a fact of life that a company has very few really creative ideas towork on. Product development is often improvement, needed because of technological or marketing changeor increased knowledge. As marketing and technical research either struggle to look for modifications toexisting products or try to react to a competitor's product, they are often surprised by the absolute simplicity ofsome original and successful new product which meets real consumer needs and which is showing rapidmarket growth.

The true innovation can form a new product platform on which to build many new evolutionary products.

There are two methods of idea generation: focused or convergent thinking and free or divergent thinking, andboth are useful depending on the company's product strategy.

Focused, systematic thinking is useful for the slow evolution of the product mix.

Free, lateral thinking is useful for the discontinuous major step-changes.

In the food industry where there is pressure to continuously launch new products, there is an emphasis onfocused, systematic thinking. If food companies plan to have innovative new products in their product mix,there is a need to develop an atmosphere which gives the freedom for idea generation.

There are always problems in finding new ideas, and also risks in choosing the direction for productdevelopment - either product improvement, apparently low-risk, little research and low cost or productinnovation, high-risk, extensive research and high cost.

SYSTEMATIC FOCUSED IDEA GENERATION

Ideas come from both a 'technology push' and a 'consumer pull'. The technology push comesfrom knowledge of marketing, processing and product technology and their related scientificbases. The consumer pull comes from knowledge of the consumers and their individual andsocietal bases.

The consumer needs analysis includes the relation of present products to user needs, defects

in present products, unfulfilled needs. Consumer concerns have been a strong pull in the1990s, with the proliferation of 'deprivation foods' low in sugar, salt and fat, nutritional foodsoffering supplements of proteins, minerals and vitamins, functional foods offeringphysiological benefits and/or reductions in the risk of chronic disease beyond nutritionalneeds, and pharmaceutical foods (nutriceuticals) offering health benefits.

The technology sources include the scientific and technical literature, R&D scientists in thecompany, universities and research organisations, the production, engineering and qualityassurance staff in the company, and the raw material and equipment suppliers. In smallcompanies, it tends to come from production and engineering staff, in the large company fromthe R&D department.

The marketing sources include competition, overseas markets, sales journals, consumers,

consumer books and magazines, advertising agencies, market research companies,distributors (wholesalers, retailers, food service, agents, brokers), sales personnel and


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marketing people in the company. This information includes market trends, new productintroductions, market needs and market analysis. Retailers may see a need for further brandsof a certain product, and they can under their own brands copy a product already on themarket to supply this need.

The market can be analysed by studying trends in sales, by gap analysis to see if there is a

product missing, by measuring shelf space to see if a product line needs to be extended, andby comparison testing with competing products to see if the company's product needs to beimproved. The company can set up a product matrix of their own and competing products, i.e.product classes, product lines and individual products, to discover gaps into which thecompany can introduce a new product.

The company is continuously monitoring the 'feel' of the market by doing market research,including retail audits and consumer studies. Sales trends and information from supermarketsales are now extensively available and analysed. More general information can be found onbusiness and economic trends from banks and consultants, and on social changes fromsocial studies reports by government or academics.

Some knowledge sources for new product idea generation

Consumer:Researching consumer life changesResearching changes in eating patternsStudying what consumers need now and in the futureStudying what consumers want now and in the futureStudying the growing consumer concerns

Technology:Basic research on food properties and reactionsResearch on processing and manufacturing engineeringResearch on new raw materials and ingredients

Research on transport and storage methodsInvention of new types of equipmentAdaption of other technologies

Market:Researching social, cultural, economic changesStudying competing productsLooking for a gap in the food market or a specific target marketStudying new products on the food marketImproving present productsLooking for a different market or market segmentStudying marketing changes, particularly distribution channels

PRODUCT CHARACTERISTICS AND IDEA GENERATION

Product characteristics or attributes

These are the features that identify the product to the company, the market and the consumer. Each productis a complex of tangible and intangible characteristics which define the product, its use and value. Productcharacteristics can be viewed as technological, consumer and market:

technological: raw materials, composition, structure, size/shape,processing method, storage method, product type;

consumer: convenience, sensory properties, use, nutrition,

safety, psychological, social;


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market: type of market, marketplace, sales, price, promotion.

Variation of the characteristics and addition of new characteristics can make the product more appealing tothe consumer and indeed give a unique product. Comparison with the characteristics of competitive productscan define the positions of the different products in the market; this can reveal gaps in the market where thereare no products, and also give better direction to 'me-too' products.

A product has a number of characteristics, and they can be ranked in importance not only to the consumer,but also technically and for the market. The important characteristics are combined to give a product profile.Each product has a unique product profile with a number of characteristics, some being more important thanothers. Some product characteristics can be needed or wanted by the consumer and are often calledconsumer product benefits. Other characteristics can be disliked by the consumer!

Product types have characteristics with different 'strengths', for example fruit juices could vary from slightlysour to very sour, slightly sweet to very sweet, cheap to expensive, subdued to gaudy packaging, ordinary toprestigious.

Studying product characteristics is widely used in developing product concepts both within the company andmore often with consumers. Two important uses of product characteristics for product idea generation are in

product morphology and in product positioning.

Product morphology

Product morphology breaks a product area into characteristic types and then into characteristic descriptions.Ingredients are a type of product characteristic and they can be varied: in canned beans, the ingredients couldbe types of beans, sauce, meats, vegetables. Nutrition could be the focus: in a formulated dairy product, thenutritional characteristics could be fat, protein, sugars, calcium, vitamins. Psychological characteristics areimportant: in a take-away food they could be fun, comfort, prestige. Ideas can be developed under eachheading; in the canned beans, there could be five types of beans, six types of sauces and they could becombined in different ways to give new product ideas, for example kidney beans with bacon in a salsa sauce,soybeans with tofu in black bean sauce.

Through product morphology, an individual or a group can develop ideas for product characteristics and alsomany product ideas by combining the characteristics in different ways.

Product positioning

In product positioning, competitive products are placed on a number of linear scales, one for each productcharacteristic. The scales are rated from low (or none) to high for the product characteristic. Two or threescales can also be combined in a multi-dimensional space. New product ideas can be found by moving thecompany's product on the scales, making its characteristics weaker or stronger. A product characteristic canbe magnified or reduced in strength, the product characteristics can be combined in different ways, or a newcharacteristic can be introduced - all leading to new product profiles and new products.

PRODUCT IDEAS SCREENING

The aim in idea screening is to retain the successful ideas and eliminate the ideas which could be failures -much easier to write than to carry out in practice! If in doubt, keep the idea until more information is obtained.Idea screening can be based on tacit knowledge of the individual and of the company, with little new explicitinformation sought in or outside the company. But the aim in successive screenings is to build up thenecessary information for the decisions to be made in a quantitative, objective way. Screening is both areiterative and a progressive process, so there is a need to relate to the first screening even in the lastscreening in case the product description has changed and it no longer fits the screening criteria first set out.

The components in idea screening are product idea descriptions or concepts, screening factors and screeningtechniques. There is a need to have product idea descriptions that everyone involved in screeningunderstands and is evaluating in the same way. The choice of screening factors is of course fundamental -obviously the direction of choice is strongly influenced by the criteria. Lastly the people who do the screening,

and the techniques they use, affect the screening results.


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Product idea descriptions

These must be clear and concise. They include:

a clear description of the product;the use of the product;

the target market segment;the relationship to the company's present products;the relationship to competing products.

For example, the new product idea in an ice-cream company could be a range of liqueur ice-creams. What ismeant by a liqueur ice-cream - is it a liqueur flavour, or does it have drops of liqueur embedded in it? Is ittargeted at sophisticated diners at home or in restaurants? Is it to be the top of the company's ice-creamrange? Is the nearest competitor the specialty ice-creams made in high-class restaurants? Should problemsbe anticipated from sections of the community such as teetotallers or religious groups or will there be legaldifficulties with excise duties?

The initial description is usually kept broad so that ideas on the product, the market and the technology can becontinually studied, but there is a need to focus the idea in a certain direction so that the people involved are

not taking off in too many directions at once. As the product idea builds from a product idea description, to abrief product idea concept, to the final product concept, to the product design specifications and to the productspecifications, the focus is being narrowed all the time.

One product idea description for the liqueur ice-cream was: a line of plain based ice-creams with little jelliescontaining concentrated liqueurs, aimed as a gift to be taken to dinner parties, sold through higher-classsupermarkets

Screening factors

The strong screening factors, with which the product idea must agree, arise from the project aim and theproject constraints.

The overall aims of the company always take precedence over other factors. No matter how brilliant a productidea is in isolation, it is rejected if it does not fit with the company's business strategy, in particular the productstrategy. There may be an outstanding product idea which may change the direction of the company'sbusiness strategy, but it has to be taken from the project ideas and directed back into the top managementarea. This product idea has to be viewed in its scale and suitability for the company, and decisions within thecompany must be taken at top management level.

The constraints identified at the beginning of the project are also important screening factors. A product maybe dropped for many reasons: it does not meet the food regulations; there is not sufficient money to developor to produce it; the managing director does not like it! The factors used in screening should be as objective aspossible, but sometimes subjective decisions are made.

Factors for product screening

Marketing factors:Potential market sizeCompatibility of market image with company's product linesRelationship to competing productsCompatibility with existing or specified market channelsAccess to suitable physical distribution systemsFits into an acceptable pricing structureRelationship to promotional methods and resourcesMarketing resources needed to produce success

Production factors:

Compatibility with existing product lines


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Availability of processing equipmentAvailability of raw materials and ingredientsAvailability of technical skills to produce the productAvailability of production timeAgreement with any legal requirements

Cost and availability of new resources required

Development factors:Knowledge needed for developmentAvailable knowledge and skillsAvailable time and human resourcesDevelopment funds needed and availableCompatibility with existing strengthsDevelopment difficulties and risks of failure

Financial factors:Compatibility of development costs with financial resourcesCapital investment resources needed and available

Finance needed and available for market launch and ongoing product supportProfits or returns on investment required

Significant factors are many and these are just a few that often occur. The choice ofscreening factors depends on the type of ideas, the company and its resources, thecompany's environment and the level of innovation. There could be many factors but it is nothumanly possible to use them all, so that the factors are ranked in importance and only themost critical chosen in the first screening, although others may be checked later. Factors canbe rated as crucial, most important, important and minor.

PRODUCT IDEA CONCEPT DEVELOPMENT

The product idea concept is first developed from market and consumer research but with consideration of thetechnical aspects of the product. Usually, it is a combination of internal company information searchingcombined with consumer or, in industrial marketing, customer discussion groups. In industrial productdevelopment, it has been shown that selecting the most innovative customers for product conceptdevelopment reduces the time and improves the product concepts. The product idea concept research leadsto a more detailed description of the product ideas and also includes screening of the ideas.

The consumer discussion panel, or as it is usually called the consumer focus group, is invaluable forbuilding up the product concept. About 30-60 consumers can take part in small discussion groups of 6-8people. They are given simple descriptions of the product ideas and are allowed free rein in their discussions.The consumers discuss their own attitudes and behaviour towards the products and identify their needs andwants in the products.

The product idea concept developed after the discussions details the 'benefits' that the consumers want fromthe product. These 'benefits' can be divided into four types - basic product benefits, package benefits, usebenefits, psychological benefits:

Basic product benefits include physical characteristics (such assize, shape, colour), chemical composition, sensory qualities,nutritional value and safety features.

Package benefits include price, value for money, ease of storage,use and disposal.

Use benefits include convenience in buying and carrying, informationon use, easy preparation, attractive presentation, recipes and

nutritional information.


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Psychological benefits include prestige, fun and friendliness,aesthetics, healthiness.

When writing product idea concepts for use in further consumer panels or consumer surveys to build up theproduct concept, there are five things to remember:

Be brief.Present a picture of the product, with no technical details.

Use simple, everyday language. Use attractive, interesting and lively descriptions to keep theconsumer interested.

Start with the product category. Pinpoint the kind of product with the first few words of thedescription.

Give a true picture of the product. State and do not exaggerate the product qualities. Theidea product concept should be both believable and realistic.

Describe the product's reason. Describe the uses and values of the product. Answer theconsumer's question 'What is in it for me?' Show it has a useful and needed advantage over

existing products.

PRODUCT CONCEPT BUILDING

To build up the product concept, the important product characteristics are identified by theconsumers, then the descriptions and if possible the 'strengths' of the product characteristicsare determined. The product characteristics and their strengths are combined in a productprofile.

Product profile

First the important product characteristics (the consumer product benefits) are identified bythe consumer. The sensory properties are usually important to the consumer and there is

often an emphasis on the sensory characteristics in building up the product profile as they aredirectly related to design.

For Madeira cake (a sweet plain, rectangular cake, soft texture, cut into slices), the importantcharacteristics were identified as colour, taste/flavour, moistness and crumbliness. But thereare other benefits to the consumer in buying a Madeira cake: the size, the packaging, thestorage life, the availability to produce it quickly for a visitor. Consumers may not consider thenutritional value of a Madeira cake, but this is an important characteristic for many other foods.A checklist of general product benefits is useful as a reference during the consumer focusgroup discussion.

The ideal product profile

The ideal product profile is developed by the consumers, based on the most importantproduct characteristics. In ideal product profile tests, the consumers study the competitiveproducts and/or the product prototypes, and for each product characteristic score the testproducts on a scale from low to high. Then they place their scores for their ideal product (I) onthe same scales.

The ideal product profile gives a quantitative measure for each product characteristic whichcan be built up to the product design specifications.

PRODUCT CONCEPT EVALUATION

In product concept evaluation, several product concepts are evaluated and screened to find the most suitableproduct concept.

The product concepts can be evaluated by consumers to see which they identify as winners and losers, and


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also by the company personnel to see which can be processed and marketed, and which has the highestpredicted sales potential and profit or/and market share.

Initial predictions of costs, prices and sales have a wide range at this stage but do give some indication ofpossible profits. Market share for a new product in an established market can be predicted from the marketshares of the competing products in the present market, but obviously an innovative product in a new market

is hard to predict. As predictions are inaccurate; pessimistic, most likely and optimistic predictions are made.

The consumer studies can be either a series of focus groups or a consumer survey. Not only do theconsumers indicate their acceptance of the different products, but also their prediction of buying at differentprices. They also need to compare the products with the competitive products and identify advantages anddisadvantages in the new product concept. The product concepts can be presented as descriptions, drawings,computer sketches and as prototype products, depending on the availability and suitability for the product ofthe different forms.

It is useful to give the consumers a number of product concepts so that they can compare them and thenpatterns of acceptance can be ascertained.

It is important that the questions asked help to sort out the product concepts, preferably in a quantitative way.

The following are among the questions to be considered in planning a product concept evaluation byconsumers:

Consumers:

Users/non-users of this type of product or of the company brand?Representative of the general population or the market segment?Statistically representative of the market or not?How many consumers - 30, 60, 200?

Product:

One product prototype, or a group of product prototypes?Packaging and the brand included?

Method:

Do the consumers choose the product they prefer?Do the consumers select the product they will buy?Do the consumers score the product characteristics for each product?Do the consumers assess the product accessibility, price, package size, retailer?

Scoring by the consumers of the product characteristics in a product profile for a number of prototypes andtheir ideal product gives the designer a greater understanding of the product for further development. A simpleproduct preference does not give clear directions.

Technical and marketing groups also evaluate the product concepts for their suitability for production and forthe market, using some of the checklist or probability screening methods.

PRODUCT CONCEPT ENGINEERING

In most industries, design specifications are usually set before the design process starts; yet in the foodindustry, the food technologists often plunge into formulation and process development before considering thecharacteristics desired in the product and there are seldom any quantitative product design specifications.Product design is not an easy task if the information that the designer is given are a set of constraints and afew ideas (often vague and definitely not quantitative) from consumers or the marketers.

Before embarking on the design of a new product or the modification of a product, it is important that clearconcise product design specifications are set so that a specific product can be developed.


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Product concept engineering is the interpretation of consumer needs and wants into technical terms.

The target product is identified in the product concept and product profile; the target consumers are identifiedtogether with their needs, wants and attitudes in buying, carrying, preparing, eating and disposing of wastes.Based on the target consumer and the target product, a quantitative design specification is developed withquantitative values for product characteristics if possible.

Product design specifications in other industries call the quantitative descriptions metrics, and product targetvalues are set for each metric. In the food industry, they are usually called product quality standards. It is oftenuseful to define the marginally acceptable target values for consumer satisfaction, so that the designparameters are not too tight but are set within a defined range. Metrics also aid comparison with competingproducts.

Three important areas for research activities are production, marketing and environment, as shown in Figure4.3.

Figure 4.3 From product concept to product design specification

PRODUCT CONCEPT

Environment

Social Cultural

Marketing Production

Target: consumer Target: product

Product image Product qualities

Packaging Political Raw materials

Promotion Processing

Market channel Packaging

Price setting Storage, transport

Costing

Physical Economic

PRODUCT DESIGN SPECIFICATIONS

A great deal of technical information is needed to change the product concept into product designspecifications - on product qualities, raw materials, processing variables, storage variables, packaging,marketing. Basically in todays product development we are changing the old cooking standards intotechnological specifications.

Product qualities

Product qualities, which are technically recognised and can be measured, are generated from the consumerproduct concept.

There is a basic quality and a basic use for a product that need to be set as crucial quality specifications. The

consumers want a high protein food and that is changed into, say, >10% protein; they want a pale pink colourand that is changed into a reading on a colorimeter; they want a crisp texture and that is changed to a force


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measured by a texture meter.

Today there are more and more correlations between consumer sensory scores and machine measurements,so that these quantitative standards are more easily set. But sometimes it is not possible for the productcharacteristics and the ideal sensory scores to be converted into measurable product qualities, so sensorypanels are trained to measure the sensory characteristics.

Product specifications are set for chemical composition, nutritional value and physical properties such as size,appearance and viscosity; as well as microbiological standards, safety standards and standards for price andsensory properties. It is important in setting standards that they agree with legal standards and thatconsideration is also taken of ethical standards expected by the consumers and the society.

An important product quality for design of other manufactured products is the aesthetic or artistic quality, forexample the designer of a chair or an electric toaster relates the design to the prevailing art of the time. But artis seldom discussed in food design. This is now changing because consumers are becoming tired of blandprocessed foods. Food design is slowly becoming part of product design and accepting the general principlesof design; therefore in setting the product quality, more consideration is being given to the current trends indesign and how the food aesthetics can be developed to create the most desirable image.

The product quality standards (metrics) are written out clearly, showing the optimum level for each productcharacteristic and the limits of divergence from this that the consumers will tolerate. Sometimes the consumerwill accept quite wide variations in the product quality and still rate the product as acceptable. The productquality standards must of course agree with any legal regulations that apply and with defined company policy.

Raw materials

The raw materials are identified which can be used and are available, and the limits on their use are obtained.The desired quality is related to the product quality standards. For example, if the product is to contain 5%protein, then it is necessary to know the protein content of the raw materials; if the colour is to be anorange/red, then the colouring ingredient must contain that type of red, perhaps defined by standard referencecolours or physical spectra.

In raw materials specifications, limits (both minimum and maximum) are set on the quality, for example thechemical composition and the microbiological counts. There are limits on the quantities of raw materials in aformulation arising from processing needs, product structure needs, product properties, the quantity of rawmaterials available and the cost. In bread, there is a minimum amount of wheat flour needed to give therequired amount of gluten in the structure.

Cost of raw materials is important because the product will be in a certain price range and it is important torecognise this before the design starts so the design may be formulated to meet it. The origins of the rawmaterials also need to be noted, as required often by regulations.

Processing variables

Product formulation is essentially the selection of a blend of raw materials to give the desired product

qualities, but the processing conditions will affect the transformation of the raw materials and thereforedetermine the final product. Formulation cannot be divorced from the process. Food formulations are oftendeveloped on the bench top using small-scale household equipment, and when this formulation is transferredinto the process the results can be very different.

Not only the types of processing but the conditions of processing need to be identified early in development. Itis important that the processing variables and their limits are set at the conditions to be expected in the plantbefore product design starts.

Processing variables are identified together with their predicted limits. The important variables that affect theproduct quality, particularly safety, sensory quality and nutritional value, need to be studied so that limits canbe set for them in the process.

For example, the heat treatment required to sterilise the food needs to be quantified, i.e. the lower limits fortime and temperature, but upper limits need to be set to reduce the deterioration of the colour and flavour of


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the food. It is important to understand the effect of the processing variables on the reactions causing changesin the food materials during processing and how changes in the processing variables affects the rates ofchange in the food.

Storage and transport variables

These are defined because a food is not like a button or a bolt which only changes slowly over time; a food iscontinuously changing, sometimes very fast, depending on the conditions.

The aim of food preservation is to keep the food within the acceptable quality range for as long as possible;this duration is the shelf-life of the food. Shelf life of the food is affected by the conditions of storage - thetemperature, humidity, time, atmosphere, packaging. The desired shelf life, the method of deterioration andthe storage/transport conditions are specified at the outset of the design. The transport method (road, rail,sea, air), the transport conditions (time, temperature, humidity, vibration, handling, costs), the storage(ambient, chilled, frozen) and the storage conditions (time, temperature, humidity, handling, costs) have all tobe considered. Again costs can be a restriction, and they need to be in the design specifications.

Packaging

Packaging is based on either the consumer or the industrial customer's needs and their uses of the foodproduct, but it must also protect the product, fit into the processing and packaging lines, and meet the costcriteria. There may also be promotional needs for the packaging, and although during commercialisation, thefinal aesthetic design is completed, the needs of marketing have to be considered in the early design.

For the product design specifications, the first factors to consider are the consumers' needs for the packagingand the preservation of the food by the packaging. For example, if the food is to be heat sterilised in the pack,then a can or a retortable pouch is the only packaging. If the consumer wants to heat the food in thecontainer, this limits the types of materials that can be used.

Often packaging types and packaging methods are limited by the packing line, the costs and the availability ofthe packaging. For example, polyethylene may be the only film available at the price; only a pasteurisationpackaging system may be available and not a UHT (ultra high temperature) sterilisation packaging system.

These restrictions need to be identified before the design starts.

Marketing

Marketing is defined by the market segment(s) and the marketing methods to be employed, including themarket channel, the desired promotion and promotional methods and of course the price.

The product design can be affected by the type of retail display, the retailers' needs for the product andcertainly the price range.

The market and marketing specifications to consider are the market channel (retail outlets, wholesalers,agents, product flow), the market channel requirements (size, weight, availability, price, display information),the promotional method (TV; radio, newspapers, magazines, sampling) and the promotional message

(exciting, new, sophisticated, natural, nutritional, low calorie). In particular, there is a need to define the imagethat the product is to have in the market and to the consumer, and also the promotion of this image by thepackaging.

Study of competing products is important in setting the product's position in the market and in determining thepossible price range. The positioning of the product against competing products needs to be specified so thatthe designer can appreciate the product characteristics needed. Also the prices, margins and discounts in themarket need to be studied so that a price range for the new product can be set.

Legal requirements

Any legal requirements for the product, packaging, processing and marketing need to be carefully researchedand specified. There are many legal regulations for product standards, which vary from country to country and

also change with time, so these must be checked carefully during the development of the productspecifications. There can be TQM and HACCP requirements for the processing, and nearly always Food


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Hygiene standards. There may also be limits and sometimes bans for raw materials and product movementinto and out of a country, and often duties which affect the costs and prices.

Summary of product concept engineering

In product concept engineering and the building up of the product design specifications, it is useful to have a

checklist to see that important factors are considered in all projects. There are usually similar conditions inmany product development projects in a company unless the project is aiming at an innovation completelynew in all aspects to the company, or a new product platform. Usually the production equipment, thedistribution method and the market channels remain the same and so follow standard specifications. Newspecifications are only developed for specific aspects of the project, usually the product qualities, but it isalways important to check the standard specifications as they do change with time. Products that are majorinnovations will require extra consideration especially of their novel features.


In summary, a general outline for a product design specification is as follows:

1. Product concept: general statement on the product

2. Product qualities3. Target consumers4. Production design specifications:

- Raw materials/ingredients- Processing/formulation- Packaging- Storage, transport

5. Marketing design specifications:- Packaging- Promotion- Market channel- Price setting- Competition

6. Environment:- Social- Cultural- Legal- Economic- Physical

7. Costs:- Production- Marketing

In some industries this outline is called the product design brief.

In the first attempt at the product design specification all this information may not be available. The product

design specification develops as more information is obtained and the first prototypes are developed in 'ballpark' experiments. There is no specific time in the PD Process by which the product design specification hasto be completed - it depends on the type of product and the company, but it should be at or before the earlystages of product design.

When the product design specification is completed and agreed by all the different people in the PD project,including the top management, then it should be signed by all involved to show their commitment andresponsibility. If major changes are made during the design procedure, then there needs to be a meeting of allconcerned to ensure agreement on the changes.

THE DESIGN PROCESS

The design activities are grouped into steps: 'getting the feel', screening, ball-park studies, optimisation andscale-up of production and marketing, leading at the end to product and process specifications, marketingstrategy and financial analysis as shown in Figure 5.1. This allows control of the design process as the


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consumer, product and process activities are coordinated into small mini-projects with specific objectives.

The activities and some of the experimental techniques in the various stages of product design and processdevelopment are shown in Figure 5.1. The stages used in this book are getting the feel, screening, ball-parkstudies, optimisation, scale-up (production) and scale-up (marketing).

Figure 5.1 Activities and experimental techniques in product design and process development


'Getting the feel' Recognising the variablesSetting the limitsAd hoc' experiments

PRODUCT 'MOCK-UPS'

Screening Importance of variablesInterrelationships of variablesSimple experimental designs

ELEMENTARY PRODUCT PROTOTYPES

Ball-park studies Variables limitsVariables interactionsBasic packagingLinear programmingFactorial designs

ACCEPTABLE PRODUCT PROTOTYPES

Optimisation Stepwise variable changes in small areaAesthetic product designComplete process designOptimisation designs

OPTIMUM PRODUCT PROTOTYPE

Scale-up: production Process testing in plantYields studyEVOPHACCP

Scale-up: marketing Marketing/product definitionMarket channel selectionPricing analysisSales predictionConsumer panels, large consumer testMarket surveySales forecasting

FINAL PRODUCT PROTOTYPEPRODUCT AND PROCESS SPECIFICATIONS


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known of the processing system.

'Getting the feel'

This is a continuation of the development of the product concept and the product design specifications. Theprocessing methods and conditions outlined in the product design specifications are used to make the early

product prototypes, and the technical testing methods are examined for reliability and accuracy in testing boththe technical product characteristics and also their relationships to the consumer product characteristics.

There is a question of consumer involvement at this stage; some people advocate this strongly because itmeans that there is control over the design; others say that it is faster and just as accurate to use theknowledge of the designers. The choice of no consumer testing depends on the level of consumer knowledgeheld by the designer.

The basic costing used in the company is also identified so that a simple method of determining costs can beused in the next stages of the product design.

The target market was identified in the product concept stage and the consumers are selected to representthis target market(s).

Screening

Screening reduces the wide range of raw material and processing variables to the input variables affectingimportant product qualities. This hastens the design.

Initially the variables can be reduced using the previous knowledge of the designer and also published orcompany information easily available. There can still be a number of floating variables and these are studiedin controlled experimentation, not 'ad hoc' try-and-see experimentation. Many experimental designs areavailable to screen the variables but the most common are partial factorial designs, or Plackett and Burmandesigns.

In a Plackett and Burman design, it is possible to screen N-1 variables with N experiments. The screening

experiments identify the important variables and their magnitude levels that affect the product qualities, butthey are not statistically accurate and cannot quantify the relationships between the input variables and theproduct qualities.

Some food designers have the consumers test many samples in these designs, sometimes for acceptability,but more usefully in product profile tests. Other designers use trained sensory panels.

At this stage, the raw materials are being selected, and the quality, availability and costs of those rawmaterials are studied. There is likely a basic total cost range for the raw materials, but it is important not toselect individual materials only on cost at this stage. Higher qualities of raw materials may give a uniqueproperty to the product, and also the more expensive materials may not need to be used in the samequantities as the cheaper. Sometimes there are restrictions in the company on the raw materials that are to beused; the buying department can often give some indications without restricting the design.

Ball-park studies

In ball-park studies, the aim is to set the limits of the raw materials and the processing variables which giveacceptable product qualities as judged by the consumer. By this stage, the variables are reduced in numberand their outside limits are set. They are examined in factorial designs, and for raw materials in mixturedesigns.

In factorial designs each input variable is considered at high and low levels, and the combinations of thesehigh and low levels for all input variables are tested. In a full design all possible combinations are run,therefore for three variables the total number is 23 = 8 experiments.

In food formulations, mixture designs are often used because it is impossible to vary one ingredient while

holding all the others constant; in mixture designs, the sum of all the ingredients in the formulation must add to100%. The product designer must always be aware that when they change the content of one ingredient, the


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proportion of the other ingredients changes, for example reducing the fat content will increase the proportionof other ingredients: carbohydrate, protein or water. With factorial designs and mixture designs, the effects ofthe various input variables, alone and together, on the product qualities are analysed, and mathematicalrelationships developed between the input variables and the product qualities. To set up the experimentationand to analyse the results, there is computer software readily available for food product development.

Both technical testing and consumer testing of these product prototypes are carried out. The consumers aretesting for acceptability and the technical tests are examining the chemical, microbiological, physical andsometimes the sensory properties of the products. Accuracy and reliability are important considerations in thistesting, both for studying the effects of the input variables on the product qualities and for developing thequality assurance programme. The total processing costs of these product prototypes are compared to identifythe effects of the input variables on the costs, and to check that the costs are within the target cost range.

Optimisation

Here the aim is to optimise the overall product quality by determining the levels of the inputvariables which will give the best possible product quality. The problem is that often whenoptimising one product quality, another product quality is less than optimum. So it is a case ofsetting the relative importance of product qualities, and for the most important product

qualities studying the formulation and processing variables to find the optimum. But the limitsthat are acceptable across all the product qualities need to be known so that during theoptimising experiments none of the other product qualities become unacceptable.

For raw material formulations, linear programming can be used to optimise a number ofproduct qualities and costs with the amounts of raw materials in the formulation held betweenupper and lower levels.

Scale-up

Scale-up (or ramp-up) of both the production and the marketing is the last stage of theproduct design and process development. The production scale-up is the in-plant test to verifythat the product can be made at the quality and quantity required, and the marketing scale-up

is a large consumer test to verify that the target consumers will buy the product and whatmarketing strategy will encourage this buying.

The aim of the processing scale-up is to determine the optimum production process forproduct quality, product yield, process control and costs. If the previous design research hascombined the product and the process, this can be achieved without too many problems. Butif the process has been ignored, then there can be disastrous problems. For example, if someof the intermediate materials have never been pumped during the design experimentation,then they could break down during scale-up.

The scale-up can be either on a pilot plant or short production runs on the main plant. If it is anew process, or there is to be quite extensive experimentation, then the scale-up isconducted on a pilot or small-scale plant. If the process is only an adaptation of the present

production, then the scale-up is conducted on the main production plant. The decisions on thetype of scale-up are often much influenced by cost; the production trial can cost a great deal ifthe product cannot be sold and this restricts the use of the production plant until the finalstage. But if there is no investment money to build a pilot plant then the production run maybe the only scale-up available.

The question can often be asked as to when the scale-up from the laboratory bench to thesmall plant to the production line should be carried out. A great deal of time can be spentperfecting a product in the laboratory, only to find that it is impossible to duplicate this in theplant. If the product is rushed from the laboratory to the production line, then there can be agreat deal of raw material and product discarded at a substantial cost.

Knowledge of the interrelationship of the processing variables and the product qualities can

reduce these failures. EVOP (evolutionary operations) are used in optimising the processvariables, especially if using the production line in scale-up. EVOP is a way of plant operation


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that tests small changes in the process variables in a simple factorial design. It continuouslychanges the process variables until optimum product qualities are reached, but only slowly sothat the product can be used for large scale testing or even sold.

The marketing scale-up aims to define the market, describe the market strategy to reach thismarket and predict the possible sales revenues for the product. Possible market channels are

studied and the market channel suitable for reaching the target consumers and for thecompany is chosen. The price range related to the production costs, competitors' pricing andcompany policy is tested with consumers to see how it affects their buying intentions. Also thefinal product concept (the product proposition) is built up from the final prototype product, thepackaging design and consumer studies. The definitions of the product, price and marketchannel are used not only to develop the aims and methods for the promotion of the productbut are also the basis for planning the marketing mix during product commercialisation.

The final prototype product from the production scale-up and the various parts of themarketing strategy are tested in a large-scale consumer test where the consumers test theproduct in their usual environment and are interviewed about the marketing strategy.

PRODUCT TESTING

Product testing is an integral part of the product design and process development as can be seen in Figure5.2.

Figure 5.2 Testing activities and techniques in product design and process development


Technical Consumer Costs

'Getting the feel' Setting up

ReliabilityTraining

Ideal profiles Company costs

Standard tests Profile tests Cost analysis

Correlation of technical/consumer tests

PRODUCT 'MOCK-UPS'

Screening TechnicalSensory

Product comparison Raw materials costlimits

Product testing Difference testing Materials cost

comparison

ELEMENTARY PRODUCT PROTOTYPES

Ball-park studies TechnicalSensory

Acceptability Preliminary productcosting

Statistical testing Preference panel Spread sheets

ACCEPTABLE PRODUCT PROTOTYPES

Optimisation Technical

Sensory

Product Improvement Product, packaging,

process costing


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Storage

Control testingShelf life tests

Use testsCompetitive comparison

Cost comparison

OPTIMUM PRODUCT PROTOTYPE

Scale-up Quality assurance Buying predictionsMarketing study

YieldsMaterialsEquipment

Raw material testing Market survey Equipment comparison

Process studyProduct study

Attitude panelLarge consumer test

Total costing: capital,operational

FINAL PRODUCT PROTOTYPE

PRODUCT AND PROCESS SPECIFICATIONSMARKETING STRATEGY FINANCIAL ANALYSIS

FEASIBILITY REPORT

To achieve the final product prototype, it is very important that the product is tested at all stages during itsdesign for technical compliance, acceptability to the consumer, and compliance with cost constraints asshown in Figure 5.2.

Technical testing

Technical testing varies a great deal depending on the type of product, the testing facilitiesavailable, safety needs, processing needs and legal regulations. The tests can be chemical,physical or/and microbiological. The technical testing for consumer acceptance is built upfrom the consumers' product profile, and suitable technical test methods are sought whichrelate to the product characteristics identified as important to the consumer.

In the early stages of product design, correlating the technical tests on the product qualitieswith the consumer product profile is essential. Technical testing is also required to confirmthat any food regulations are being met, that consumer safety is ensured and that anylabelling requirements for example nutritional value are confirmed.

At the later stages, technical testing is developed to monitor the product specifications forquality assurance, and account needs to be taken of the accuracy and reliability of the results.

Consideration also needs to be given to the costs of testing Can the efficiency be improved?How much testing is needed for control of the product quality?

Shelf life testing

Testing shelf life is important in food design because there is usually a target shelf life to beachieved for transport and storage in the distribution chain as well for storage of the productby the consumer after buying.

From previous knowledge, some predictions can be made early in the design on the possibleshelf life; foods can be divided into short-life products (up to 10-14 days), medium-lifeproducts (up to eight weeks) and longer-life products (up to 1-2 years). The possibledeterioration reactions in the food are identified, for example chemical reactions like browning

and loss of colour, and microbial growth of food spoilage organisms, moulds and yeasts. Itmay be necessary to carry out accelerated tests under severe conditions to identify exactly


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what the deteriorative reactions are.

Shelf life testing needs to be started as soon as possible in the prototype development,usually at the start of optimisation experiments. Shelf life testing takes time and can be thecritical activity controlling the completion of the project. The variables need to be identified -usually temperature, humidity and surrounding atmosphere in storage; vibration, handling and

contamination in transport. Factorial designs are again used so that the quantitative effects ofchanges in the storage and transport conditions on product quality can be measured.

Sensory evaluation

Sensory evaluation can be carried out by expert sensory panels or by consumers.Traditionally in product design, the expert panel determined the differences betweenprototypes and the direction of the differences, while consumer panels evaluated theacceptance of products or preferences between products. This meant that consumer input didnot take place until the final stages of prototype development. But with the acknowledgedimportance of the early stages of product design, consumer panels are now used to guide thedesign.

Such panels are used in screening the ingredients, determining the product characteristicsand their strength in the ideal product, developing and optimising the product profile of theproduct prototypes, and optimising products for acceptance and cost. Care needs to be takenwhen choosing the consumers are they the people who buy the product, who prepare themeal, who eat it?

A trained panel may consist of between four and ten people, but consumer panels are larger,comprising at least thirty people depending on the type of testing. The members of a trainedpanel after a month or longer training are able to score the product qualities reliably andaccurately. Consumer panels are not trained, but are representative of the users of theproduct. Initially consumer panels were considered 'too much work' and expensive, butexperience has shown that this is not so.

The size of the consumer panel increases throughout the design as the importance of makingthe right decision becomes critical and the penalty for a wrong decision becomes larger. Inproduct formulation, it can consist of 15-20 consumers, rising to 50-100 consumers during thefinal processing trials and 200-300 for the final product prototype, while in some large marketswith greater variability it may be even more. The smaller panels are useful when some depthof knowledge is needed though they are not a statistically valid method of determining howmany people in the market will buy the product. But over the years, it has been shown thatthere are significant correlations between the verdicts of the consumer panel and the largerconsumer test if the members of the consumer panel have been selected carefully and arerepresentative of the market.

Consumer panels are used for seeking in-depth information about the product'scharacteristics and uses. The aim is to obtain as much detailed information as possible so

that informed changes can be made in the product design.

The consumer panel gives opinions on all product characteristics, not just sensory qualitiesbut others such as safety, nutrition, size, ease of use, transport, storing and convenience.They can also be involved in the design of the package.

The final consumer panels test the packaged product under the conditions in which theywould use it. This would normally be in their home, but sometimes because of secrecy andalso the need to watch their use of the product such trials may take place in the laboratory.For example, there is a need to check: Is the pack ergonomically suitable? Does it fit theirhands? Can they open it? Is the product suitable for their equipment and their abilities? Canthey prepare and cook the product? Do the other people in the house like it? Is it acceptableto younger/older people, different sexes?


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Costs

Costs provide a basic criterion for controlling the design; they need to be monitoredthroughout development to ensure they are within the target range. At the beginning of thedesign, the company's cost structure and the target range of costs for the new product needto be agreed by all involved. The basic costs for producing and distributing the product can be

subdivided into manufacturing costs, distribution and marketing costs and general companycosts. A simple breakdown is shown in Table 5.1

Table 5.1 Basic costs for producing and distributing a product

Manufacturing costs Raw materials costDirect processing costsFixed costsPlant overhead costs

Distribution and marketing costs Physical distribution costsMarket channel costsPromotion costsSales and selling costs

General company costs Administration costsDevelopment costsFinancing costs

Some of the manufacturing costs comprise raw materials, packaging, labour, depreciation ofequipment, electricity, steam, gas, water, waste disposal and plant overheads. In manycompanies, during the product design and process development, the raw materials and directprocessing costs are continuously determined and are part of the design. For example, in thelinear programming models for product formulation there is usually either a total cost

constraint for the raw materials or the aim is to minimise cost. Standard percentages or ratioson these materials and processing costs are used to predict the company costs. This has tobe carried out with care, especially with innovative products or new markets where some ofthe marketing and distribution costs are unknown - these may be found to be too high only atthe later stages of the project and prevent the launch. At the end of the product design andprocess development stage, there should be reasonably accurate forecasts of production anddistribution costs, and some indication of the probable marketing costs.

There are three important general activities in product design: product formulation, packagingdevelopment and processing development.

PRODUCT FORMULATION

Many food products are made by combining raw materials in specific proportions in aformulation, and research on the effects of various formulations on product qualities iscommon in product design.

In systematic formulation there are five steps:

Set the product qualities required,Find data for the raw material compositions, qualities and costs,Determine limits on the raw materials and the processing variables,Use quantitative techniques: linear programming, experimentaldesigns, mixture designs,*Use product profile tests and technical tests to relate productqualities to changes in formulations.

(*there are many useful computer software packages to


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use these statistical techniques.)

The raw materials can be divided into two groups: the basic product raw materials and the'top' or aesthetic raw materials. This does not mean that the basic raw materials do not giveaesthetic qualities to the product - in fact in modern food design this is recognised as afundamental factor. But sometimes there is a need for the addition of colours and flavours to

improve the aesthetic effect.

In formulation studies, the important development in the last ten years has been the use ofthe computer.

First, there is the raw material database on the computer; this started by detailing thechemical and nutritional compositions of different raw materials but has expanded to otherproperties such as microbiological quality, sensory qualities and to the effects of raw materialsin processing, where this information is available. For companies with a narrow range ofproducts, this raw materials database can be used in all product development projects as astarting point for formulation; in other companies with a wide-ranging product mix there maybe need for two or three databases. The database is only useful if it is kept up-to-date and isalso related to the company's buying policy.

The database can be used to build and analyse various formulations to see how they fit thecriteria for the product qualities, the costs and the processing. This can be done quite simplyusing computer spreadsheets. There are also expert systems available which provide adecision support framework made up of two parts: a task part containing the distinct problem-solving steps involved in creating a formulation, and a physical part with the specificknowledge about the properties of the raw materials and the processes involved. As moreinformation is obtained from factorial experimentation, mathematical relationships betweenthe raw materials in the formulation and the product qualities are developed and these can beused in such techniques as linear programming.

PACKAGING DEVELOPMENT

Packaging design at this stage concentrates on the packaging of the individual product; the outer packagingresearch is only related to decisions regarding size and to the protection required during distribution.

The design of the packaging for the individual product is based on the needs of the consumer and therequirements of product preservation and protection in the product design specifications, but it also considersthe process and the distribution, as well as the needs of retailers and the environment.

The graphic design is usually carried out during the commercialisation stage together with the promotionalartwork, but consideration needs to be given to any printing and display needs in the selection of thepackaging and the materials to be used.

The needs of the consumer and the retailer dictate the dimensions as the package has to be stored onretailers' and consumers' shelves, consumers have to be able to handle and open the package with their

hands, the quantities are related to the serving of the food and the packaging has to stand up to the generalconditions of use. The packages have also to fit into the standard outer container shapes and sizes.

The product may be processed in the package in which case the package must be able to stand up to theprocessing conditions and also not interact with the food during processing and storage, for examplepackaging constituents leaching into the food. In all cases, the package needs to fit into the packing line withnot too much adaptation.

The factors to consider in packaging design at this stage of product and process development aresummarised in Table 5.2.

Table 5.2 Factors in packaging design


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Consumer Buying, transporting, storing, using, eating, disposing

Product ContainmentProtection in external environment, distributionPresentation for communication, promotion, sellingUse by consumer: convenient, dispensable, ergonomic, information

Legal requirements

Process Preservation of food, processing ability, interaction with processingProduct packaging qualityMachine ability in making, forming, filling, closing

Distribution Outer packing, unitisation, transport, storage conditionsRetailer needsStorage, display, communication, bar coding, tamper-proofing

Environment Resources used: energy, raw materialsWaste: reuse, recycle, or disposable

From the research, the packaging is defined as packaging material (films, cardboard, metal, glass, solidplastic), packaging type (bottle, carton, pottle, can), packaging size, packaging method (hand, continuous,automatic, aseptic). The designer does not have a great deal of room for originality in food packaging exceptwith regard to the graphic design, but there is still a great deal of originality as can be seen on thesupermarket shelves. The use of computers with design software has made it easier to design packaging.

The package is then put to the test on the processing/filling line, and for shelf life, and product protectionduring storage and transport. Finally the consumer has to test the packaging with the product.

PROCESS DEVELOPMENT

Process development is interwoven with product design. For example, in the Thai sausage example a

standard fermentation process was chosen for the Plackett and Burnam experiments, and then in the laterstudies on the starter cultures, the processing variables of temperature and humidity were also studied duringfermentation. The Thai sausage processing was divided into three parts: raw material preparation (mincing ofmeat, cooking of rice), mixing of the raw materials and stuffing into the sausage casings, and fermentation.The first two parts were kept standard throughout and only the fermentation conditions were varied.

This division of the process into its individual parts is the method used in either analysing a current process fora new product (process analysis) or for building a new process for a new product (process synthesis). Theindividual parts and then the connections between them are studied to give the optimal overall process. Thereare three aspects of studying processing: unit operations, unit processes and processing limits:

Unit operations.These are the physical processes such as heating,pasteurisation, sterilisation, freezing, chilling, drying, mixing,

emulsifying, tumbling, pumping, conveying, packing.They can be grouped into separation processes, assembly (orcombining) processes, conversion processes and preservationprocesses. There are more than a hundred unit operations usedin food processing.

Unit processes.These are the chemical, biological and microbiologicalchanges such as gelatinisation, hydrolysis, oxidation, browning,protein denaturation, vitamin destruction, destruction and growthof micro-organisms, fruit ripening and meat tenderising.There are a number of these reactions occurring together in afood process and this leads to a complicated study in design.In the past much of the knowledge was empirical, but gradually

basic quantitative studies of the rates of these reactions are leadingto more directed process design.


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Processing limits(maximum and minimum). These can be

temperatures, rates of increase/decrease in temperature, viscosities,mixing speeds, shear rates and pH, as well as processing times,availability and cost of equipment and services such as waterquantity and steam pressures.

The combination of basic knowledge of food processing which has been built up over the last twenty yearsand the use of computers has led to a great deal of change in food product design and process developmentfrom the recipe testing of the past to systematic design based on process engineering principles andknowledge of food chemistry, biochemistry and microbiology.

The development steps are common in all projects, but the relative amounts of time and effort required fordifferent steps may change considerably. Many food products are processed in more or less genericequipment so the emphasis in development lies on the product. If process development is more extensive, thelogical sequence remains but the description of the steps may change, for example detailed design for itemsof equipment or a continuous line are included.

BUILDING THE MARKETING

Consumer panels can be used during the product design to devise the best method of marketing the product;such panels build up knowledge of their relationship with the product, the acceptable price range and theproduct image. Distribution testing of the prototypes builds up knowledge about the physical distributionsystem and the market channel possibilities. Costing analysis gives an idea of the basic product andmarketing costs. The marketing researchers then have a great deal of knowledge on which to build themarketing strategy.

The researchers are then able to determine:price range,relationship of the product to competitive products,product's position in the market,various market channels and their suitability for the product,

target market segments andproduct image.

Having done this, they test the product in a large consumer test so that they can confirm the marketingmethod and also determine sales potential and market share.

Market survey

Market survey combines a number of activities whose objectives are to select the market segment(s) and theposition of the product in the market segment, to determine the possible sales to the market segments, and tofind information on which to base the marketing strategy.

The information from the consumer research in the product design needs to be confirmed and expanded,

either by secondary market research using published information and company information, or by primarymarket research using consumer focus groups, retail audits, and studies of the competitors and of theindustry.

Focus groups may be organised to collect in-depth information on the target market, product, price, buyingplace, promotion, preference, preference over competitive products and long term buying predictions.

Retail audits can be bought from commercial companies who regularly monitor sales of products in retailoutlets, or more likely today, from the summarised information of supermarket electronic data. This informationnot only gives the market shares of the competing products, but continuous sales records, which can be abasis for sales forecasting. The sales of competing products need to be backed by information on the qualitiesof the different competing products, from either technical comparison or consumer comparison of theproducts, as well as on the competing companies and their methods of marketing.

For industrial products, there is a need for industry studies to discover the different customers in the market


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and their characteristics - size, method of processing, company organisation, economic status, and presentuse of raw materials.

There is also a need to study the whole market channel and the physical distribution system. In consumerfood marketing, the retailers have a strong control on the introduction of new products, so there is a need tostudy the competing products on their shelves and how they promote them, their attitudes to new products,

and the effects on their new product behaviour of the prices, discounts, and promotional financing by themanufacturers. One also needs to investigate any retailers' charges to obtain shelf space for new products.

The place of the new product on the company's and the market's product life cycle is determined to ensurethat a suitable marketing strategy is selected. Internally, the place of the new product in the company'sproduct mix and product line is studied to see how the new product will affect the complete product mix andalso individual products.

Large consumer test

Large-scale product testing of the final prototype product is undertaken by consumers, or inindustrial marketing by one or two large customers in their plants or by a number of foodservice outlets. To obtain results for the major decision to go into commercialisation, it is

usually preferable to have a statistical sample of the target market so that the accuracy of thebuying prediction is known. However, the sample size is often limited by practicalconsiderations such as the amount of money available, the time to do the test and the amountof product available.

The questions to be answered in the large-scale test include:

Which consumers like/dislike the product?Do they prefer it to competing products?What product characteristics need improvement?Does the product or the packaging need to be redesigned?Will they buy the product at the given price?In what price range will they buy the product?

How much will they buy, and how often will they buy at the different prices in the pricerange?

The consumer products are tested in a central location such as a shopping mall or in thehome.

In the central location test, a stall or a caravan is set up in a central position such as ashopping mall and people passing are asked to taste the product and give their comments ona self-administered form or in an interview. This does not give a random sample of thepopulation but it is quicker and cheaper than the in-home test.

In an in-home test, the consumers are given a sample of the product, either unidentified orwith the full branded pack, and asked to prepare and eat it in their household. The consumer

or all the members of the household can be asked to comment on the product. A problem isthe timing of the test which can influence a food product. It is preferable to do the consumertest at a time of year when the product would be expected to sell but this may not be possible.If done at a low acceptance time, this must be taken into account when analysing the results.

Industrial product testing with small processors and food service outlets is very similar to theorganisation of the in-home test. Sufficient product is given to the processor to try the productin their process, and to the food service chef to develop a dish to put on their menu. Arestaurant may test this dish by putting it onto the blackboard menu and watching theircustomers' reactions to the dish. The processors and the food service outlets are usuallyinterviewed after the test to find how the product has been used, the problems and successeswith the product, the intention to buy, the acceptable prices and predicted quantities to bebought. With larger processors, pilot plant or small production trials are organised either

jointly by the supplier and the buyer or often by the buying company because of secrecy.


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Products for overseas countries should be tested in that country, and international companieseither have their own testing facilities in those countries or contract local market researchcompanies to conduct the research. International product testing uses the same techniquesbut presents problems. First there is the problem of language - the questionnaires have to bein the language of the consumers and there may be problems in translation not only into aparticular language but even into a particular dialect. Definitions of products and product

characteristics may be substantially different. Scaling methods may also have to be changed.For example the 9-point hedonic scale from 'like extremely' to 'dislike extremely' may not beacceptable in a culture where expressing negative opinions is socially unacceptable, so thedislike terms have to be removed.

PRODUCT AND PROCESS SPECIFICATIONS AND MARKETING STRATEGY

Outline process plans include raw material specifications and quantities, process flow charts and processingconditions, product quality specifications, process control points and product testing methods. From thisinformation, product and process specifications can be written and an approximate product cost determined. Ifnecessary, legal or governmental approval is sought for the product or/and the process. An approximate ideaof the customer and consumer acceptance of the products is already known; from this and historical salesdata, sales forecasts can be determined. From the consumer and market studies, the marketing strategy can

developed.

Product and process specifications

Final specifications include the raw material specifications, the product formulation, the process flow chart, theprocessing conditions in the individual unit operations, a preliminary HACCP analysis of the process, thetesting of the intermediate and the final products, and the final product qualities. These are based on onlypreliminary production runs and can change during the commercialisation.

Costs and prices

Costs and prices are predicted from the trial production runs and from the consumer test. These will be rangesat the present time, as the production yields are only based on the small-scale tests, and the prices are only

based on consumer comments, not actual buying. Usually pessimistic, most likely, optimistic, predictions aremade for the costs and the prices.

Sales forecasts

Sales forecasts are based on the consumer test results: the target market segments, the total number ofpotential customers and the potential consumption rate. There will also be a proportion of potential consumerswho will not buy the product and this is also known from product test results. From this type of data andallowing for direct competition, it is possible to make an estimate of the probable sales. However, this estimatemust only be used in conjunction with estimates from other sources, since the details of buying intentionsgiven by consumers to market researchers are notoriously inaccurate.

Sales forecasts for most products can be made by considering sales levels of similar products in conjunction

with past and current socio-economic trends. Past records can, in general, be used in two main ways. First, apast trend can be directly extrapolated on the assumption that the causes which led to its occurrence will bemaintained at the same level in the future. Second, an ana

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