The Art of Product The Art of Product DevelopmentDevelopment

by Angela (Laury) Shawby Angela (Laury) Shaw

The Art of Product The Art of Product DevelopmentDevelopment

by Angela (Laury) Shawby Angela (Laury) Shaw

Or is it Luck?Or is it Luck?

Outline• Current Statistics

• Market Trends

• Steps behind Product Development

• After Thoughts

• Classes Available at ISU

Current Statistics• Typically…

– “60-80% of New Products Fail”

• Casey Frye from Burke Corporation,

Nevada, IA.

– About 70-80% failure of new products (line-

extensions)

– Higher, 80-90% for Truly new

Market Trends (General)

• Healthier Foods • Convenience (Microwaveable Meals)• Ethnic Favors• Meal Drinks• Organic Foods• Whole Grains• Low Fat (Trans Fats) & Low Carb. (?)

Market Trends: Meats• Poultry ( chicken and turkey)

• Value Added products

• Ingredients and flavorings

• Complete Meal Dishes

• Meat Snacks (jerky’s, condiments, etc.)

Steps behind a New Product

1. Idea Generation

2. Marketing/Competition Analysis

3. Formulation (2 steps)

4. Product Testing Methods

5. Process Development & Scale-Up

6. Commercialization

Idea Generation• Decisions:

– Go into the market (multiple ideas)

– Get creative

– Market choice (ex. Snack food, entrée)

– Target market ( who & where?)

– New or Improve

– Need for product?

Marketing• Do research: Sources

– US Department of Commerce– Trade Associations, Publications, & Shows– Trend Monitoring– USDA Foreign Ag Services

• Marketing Options– Multiple markets– How many products on Market?

Competition Analysis• Need an idea:

– Who is your Competition?

– Marketplace• Stores & Location (Everywhere in the US?)

– Prices

– Target Market

– Gimmicks (why are they special?)• Packaging & Nutritional Claim

Formulation: Step 1• Start with a recipe

• Do multiple version with modifications

• In house consumer testing

• Need a Gold Standard

Formulation: Step 2

• Ingredient substitution

– Cost efficiency matters

– Example: Onion powder instead of onions

• Instrumental test

– When is it Gold Standard?

Possible Testing• Consumer

– In house testing, special panels, etc.

• Instrumental testing (Gold standard)

• Shelf life testing (Labeling and recalls)

• Nutritional testing (Strict laws)

• Test Markets

Process Development• Needs:

– Process control solidify

– Equipment needs

– Distribution needs

– Personnel Needs

– Ingredient Supply Needs

Scale-Up• Move to plant situation

• Batches are 10-15 times bigger

• New rules, laws, protocols, management

• Know process, mixer, mixture, Gold Standard

• Major problem step

Scale-Up: Concerns• Distribution (special handling)

• Safety Issues (Micro, allergens)

• Equipment (temp., times, speeds, etc.)

• Packaging (Fill of container)

• In process tests (moisture, rheology, appearance, taste, etc.)

IS THIS GOLD STANDARD?

Commercialization• R & D

– Home Use Test

– Shelf life tests

– Final product specifications

– Label and Packaging

– Final market report with profits

Commercialization

• Marketing Division (if there is one)

– Clarifies target market (demographics)

– Finds stores ( grocers, internet, TV)

– Advertisement (TV, ads, etc.)

After Thoughts• Competitive Market Place

– Not high success rate of products

• Great job if– Creative– Fast pace– Problem solver– Love challenges– Always a need

Job Possibilities• Include:

– Food/Meat Scientists

– Microbiologists

– Chefs

– Engineers

– Business/Management

– Accounting

Some Classes Available• FSHN 412/512: Product Development

• FSHN 406: Sensory Evaluation

• FSHN 403: Food Laws

• MKT 447: Fund Consumer Behavior

• MKT 448: Fund International Marketing

Questions?

So is it Luck?