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Types of product development Line extensions • As consumers demands grow for a certain product, the manufacturing companies need to expand their sales by extending existing lines. They can do this by: • A range of new flavours • Packaging of products into smaller units • E.g. Chocolate coated teddy bear and tiny teddy biscuits ‘Me-too’ products • When a rival company produces a new product that proves to be successful, then other manufacturers often develop a ‘me-too’ product or a copy of the product. • Can you think of any ‘me-too ‘products? Process of product development 1. 2. 3. 4. 5. 6. 7. 8. Market Research Design Brief Criteria for Evaluation Idea Generation Prototype Production Marketing/launch Evaluation of product development Life cycle of a product • One method food manufacturers use to track the success of their product range is to develop a profile of the product throughout its life cycle. This includes: development stage, period of growth, period of maturity to eventual decline. • Sales of the product will be tracked to determine its profitability and evaluation as to whether the product will need to be replaced. • Marketing strategies can be used to extend the life of the product Market research • Companies collect and analyse information to assist them in their decision making about product development. • Information: age, gender, socio-economic status, lifestyle, work, family life and general buying patterns • Observe: societal trends and influences and consumer needs Design brief • Concept for a new product • Defines the aims and intentions of the new product ad includes all constraints and considerations • Criteria for evaluation New product ideas • There are two stages that are worked through when creating new products to solve the problem outlined in the design brief 1. Ideas stage: Brainstorming of ideas and use of questionnaires given to focus groups 2. Evaluation and screening: ideas are assessed against a set of criteria to see if they meet minimum requirements and then a detailed analysis of the materials, equipment, cost, expertise, consumer demand and sales is performed. Prototype • Developing ideas into a sample product or prototype • Best combination of ingredients to ensure the product has appealing sensory properties and the shelf life is maximised • Packaging is considered which details shelf life, protection, ease of handling and distribution, labelling, consumer appeal and environmental sustainability • Once a prototype has been produced, it goes through analysis to evaluate sensory properties and suggestions can be offered for improvement Production • With a successful prototype, the company will start the production phase. • Trials will be run to determine whether it is possible to replicate the prototype using fullscale equipment and volumes of ingredients. • Packaging and labelling: this is important as it often sells the product Marketing • A marketing campaign must be developed to launch the new product into the market. • The goal is to encourage consumers to try the product and the marketing campaign must encourage consumers to repeat purchasers to maintain market sales. • 4 P’s: product, price, place and promotion Evaluation of a new food product • Evaluation of: product, production, economic viability and marketing campaign Product evaluation • Evaluation of the physical and sensory properties of the product Production evaluation • Resources used, type and availability of ingredients and materials, expertise, production processes and HACCP Economic evaluation • Costs involved in the products production including; design and development costs and likely profit sales. • Figures are reviewed once the product is launched into the market place • The success of the product will be critical to the economic success and to maintain its viability to the company’s product range. Market evaluation Strengths, weaknesses, opportunities and threats: SWOT Analysis *