TY - BOOK AU - Fuller, Gordon W TI - New food product development: from concept to marketplace SN - 13: 978-1-4398-1865-7 ( U1 - e-book (FST) PY - 2011/// CY - London PB - CRC Press N2 - Contents Preface......................................................................................................................xv Acknowledgments.............................................................................................. xvii Author.................................................................................................................... xix 1. What Is New Food Product Development?................................................1 1.1 Introduction............................................................................................1 1.2 Defining and Characterizing New Food Products...........................2 1.2.1 New Products............................................................................2 1.2.1.1 Line Extensions..........................................................3 1.2.1.2 Repositioned Products..............................................6 1.2.1.3 New Form of Existing Products..............................7 1.2.1.4 Reformulation of Existing Products.......................7 1.2.1.5 New Packaging of Existing Products.....................8 1.2.1.6 Innovative Products................................................ 10 1.2.1.7 Creative Products.................................................... 11 1.2.1.8 Genetically Modified Products............................. 11 1.2.2 Customers and Consumers...................................................12 1.2.3 Added Value............................................................................ 13 1.2.4 Markets and Marketplaces.................................................... 14 1.3 Marketing Characteristics of New Products.................................... 15 1.3.1 Product Life Cycles................................................................. 18 1.3.2 Profit Picture............................................................................ 19 1.4 Why Undertake New Food Product Development?.......................20 1.4.1 The “Why” of “Why Undertake New Product Development?”........................................................................25 1.4.1.1 Corporate Avenues for Growth and Profitability.....25 1.4.1.2 Opportunities in the Marketplace for New Product Development.............................................27 1.4.1.3 Technological Advances Driving New Product Development.............................................29 1.4.1.4 Government’s Hand in Influencing New Product Development.............................................30 2. The New Product Development Team: Company Organization and Its Influence on New Product Development....................................35 2.1 Structure of Organizations.................................................................35 2.1.1 Types of Organizations..........................................................35 2.1.1.1 Committee Politics..................................................36 2.1.1.2 Hierarchical Politics................................................ 37 2.1.1.3 Court Politics............................................................38 viii Contents 2.2 Organizing for Product Development..............................................38 2.2.1 Organizing for “the What”: The Physical Plant.................40 2.2.2 Organizing for Whom: The Human Side............................ 41 2.2.3 Organization and Management............................................42 2.2.4 Creativity: Thinking Differently..........................................43 2.3 Research for Creativity: What Is It?...................................................45 2.3.1 Characterizing Research........................................................45 2.3.2 Organizing for Creative Research........................................47 2.3.2.1 The “Unhabitual” as a Tool in Creativity............48 2.3.2.2 Cross-Functionality in Product Development...... 49 2.3.2.3 Fluidity as an Organizational Tool in Creativity.............................................................50 2.4 Constraints to Innovation................................................................... 51 2.4.1 The Corporate Entity.............................................................. 52 2.4.1.1 Risk Capital.............................................................. 52 2.4.1.2 Company Ego........................................................... 52 2.4.2 Communication.......................................................................54 2.4.2.1 Multiplant Communication...................................54 2.4.2.2 Technology: Its Management and Transfer.........56 2.4.2.3 Personnel Issues......................................................56 2.5 The New Product Development Team..............................................58 2.6 Phases in New Product Development..............................................60 3. What Are the Sources for New Product Ideas?........................................ 67 3.1 Getting Ideas......................................................................................... 67 3.1.1 General Guidelines for Ideas.................................................68 3.1.2 Sources of Product Ideas........................................................ 69 3.1.2.1 The Many Marketplaces......................................... 70 3.1.3 Getting to Know Them: General Techniques.....................72 3.1.3.1 Census and Economic Data...................................72 3.1.3.2 The Fallacy of Privacy............................................77 3.1.3.3 Data Mining.............................................................78 3.1.3.4 The Internet: Social Networking, Blogging, Tweeting, and All That Buzz.................................80 3.1.3.5 Just Looking and Being There...............................82 3.1.3.6 Using Acquired Knowledge to Source Ideas......90 3.1.3.7 Using Retailer/Distributor/Manufacturer Interfaces for Ideas................................................ 102 3.1.3.8 Other Environments as Sources of Ideas........... 104 3.1.3.9 Internal Sources of Ideas for Development....... 111 3.2 Criteria for Screening Ideas.............................................................. 116 3.2.1 Environment in which Criteria Are Applied.................... 117 3.2.1.1 Conflict between Marketing and Research and Development.................................................. 118 3.2.1.2 Conflict between Production and Marketing........119 Contents ix 3.2.2 Applying the Criteria........................................................... 120 3.2.2.1 Reality of New Product Development Ideas........121 3.2.2.2 Caution about Copy-Cat Products......................122 4. Strategy and the Strategists.......................................................................125 4.1 Strategy................................................................................................125 4.1.1 Defining the Company......................................................... 126 4.2 The Strategists.................................................................................... 127 4.2.1 An Involved Senior Management....................................... 128 4.2.2 Shaping the Company’s Objectives.................................... 131 4.2.2.1 Company Objectives That Shape Product Development.......................................................... 132 4.2.2.2 Sanctioned Espionage or Competitive Intelligence?........................................................... 133 4.2.2.3 Benchmarking....................................................... 138 4.3 Finance Department: The Cautionary Hand in Development.... 138 4.3.1 Finance’s Not So Passive Role in Development................ 138 4.3.2 Financial Realities of Product Development..................... 140 4.3.2.1 Slotting Fees........................................................... 141 4.3.2.2 Financial Criteria................................................... 142 4.3.3 Financial Tools....................................................................... 144 4.3.3.1 Comparing Costs with Anticipated Revenues........................................................... 144 4.3.3.2 Probability Index................................................... 146 4.3.3.3 Other Tools............................................................. 147 4.4 Strategy: Marketing’s Perspective................................................... 147 4.4.1 Marketing’s Functions.......................................................... 148 4.4.2 Market Research................................................................... 149 4.4.3 Time: A Critical Element in Marketing Planning and Development.................................................................. 151 4.4.4 Nature of Market Information............................................ 153 4.4.5 Qualitative and Quantitative Market Research Information............................................................................ 155 4.4.5.1 Focus Groups......................................................... 156 4.4.5.2 Beyond Focus Groups: Neuromarketing— Invading the Consumer’s Inner Space............... 157 4.4.6 Marketing’s War Room........................................................ 160 4.4.7 Marketing and Sales Departments..................................... 162 4.4.8 Marketability and Marketing Skills................................... 163 4.4.9 Summary................................................................................ 163 5. The Tacticians: Their Influence in Product Development.................. 165 5.1 Science and Technology in Action................................................... 165 5.1.1 Research and Development: Meeting the Challenges..... 166 x Contents 5.1.1.1 Recipe Development and Recipe Scale-Up: Meeting the Challenge......................................... 166 5.1.2 Spoilage and Public Health Concerns................................ 169 5.1.2.1 Food Spoilage Concerns....................................... 169 5.1.2.2 Microbial Spoilage................................................ 174 5.1.2.3 Naturalness: Minimal Processing....................... 176 5.1.3 Maintaining Safety and Product Integrity........................ 177 5.1.3.1 General Methods and Constraints to Their Use.....177 5.1.4 Summary and a Caution......................................................200 5.2 Role of Engineering in the Development Process......................... 201 5.2.1 Engineers............................................................................... 201 5.2.1.1 Process Design....................................................... 202 5.2.1.2 Scale-Up.................................................................. 202 5.2.1.3 In-Process Specifications......................................204 5.3 Manufacturing Plant: A Stumbling Block or an Asset in Development?.................................................................................205 5.3.1 The Plant................................................................................205 5.3.1.1 Concerns: Space, Facilities, Labor, and Disruptions.....................................................205 5.3.1.2 Co-Packers and Partnerships...............................206 5.3.2 Roles of the Purchasing and Warehousing Departments.......................................................................... 207 5.3.2.1 Purchasing Department’s Activities.................. 207 5.3.2.2 Activities in Warehousing and Distribution............................................. 209 5.3.3 IT Department’s Contribution............................................ 210 5.3.3.1 Information Management and Retrieval........... 211 5.3.3.2 Number Crunching.............................................. 211 5.3.3.3 Graphics.................................................................. 213 5.4 Commercial Feasibility..................................................................... 214 5.4.1 The Loop: The Interconnectivity of Questions with Indefinite Answers...................................................... 214 5.4.1.1 The Art of Guesstimating.................................... 216 5.5 Summary............................................................................................. 218 6. The Legal Department: Protecting the Company—Its Name, Goodwill, and Image.................................................................................. 221 6.1 Introduction........................................................................................ 221 6.2 The Law and Product Development...............................................222 6.2.1 Nongovernmental Organizations......................................223 6.2.2 Advocacy Groups..................................................................225 6.2.3 Geopolitical Groups..............................................................226 6.2.4 Expert Panels.........................................................................226 6.2.5 Industrial Sector....................................................................227 6.2.6 Summary................................................................................228 Contents xi 6.3 Food Regulation and the Development Process............................228 6.3.1 Legislation, Regulations, and Safety: A Dilemma...........228 6.3.2 Role of Lawyers..................................................................... 231 6.3.3 Legislating Quality and Safety........................................... 232 6.4 Environmental Standards.................................................................233 6.5 Summary.............................................................................................234 7. Quality Control: Protecting the Consumer, the Product, and the Company......................................................................................... 237 7.1 Introduction........................................................................................ 237 7.2 The Ever-Present Watchdog............................................................. 237 7.2.1 Sensory Analysis in Product Development......................238 7.2.1.1 Sensory Techniques..............................................238 7.2.1.2 Objective Sensory Testing.................................... 240 7.2.1.3 Subjective or Preference Testing......................... 241 7.2.1.4 Panelists.................................................................. 242 7.2.1.5 Other Considerations in Sensory Analysis.......244 7.2.1.6 To Test Blind or Not?.............................................244 7.2.1.7 Can All Tasters Discriminate?............................. 246 7.2.1.8 Using Children...................................................... 247 7.2.2 Using Electronics: The Perfect Nose?................................. 247 7.2.3 Shelf Life Testing................................................................... 248 7.2.3.1 Selecting Criteria to Assess Shelf Life................ 248 7.2.3.2 Selecting Conditions for the Test........................250 7.2.3.3 Types of Tests......................................................... 252 7.2.3.4 Guidelines to Determining Shelf Life................255 7.2.3.5 Advances in Shelf Life Determination...............258 7.3 Designing for Product Integrity...................................................... 262 7.3.1 Safety Concerns....................................................................264 7.3.2 Concerns in Designing for Food Safety............................264 7.3.3 New Concepts of Safety.......................................................265 7.3.4 Costs of Quality and Safety Design................................... 267 7.3.5 Hazard Analysis Critical Control Point Programs.......... 270 7.3.6 Standards Necessary for Safety.......................................... 270 7.3.7 International Standards....................................................... 271 7.4 Summary.............................................................................................272 8. Going to Market: Success or Failure?...................................................... 275 8.1 Final Screening................................................................................... 275 8.1.1 Test Market: What It Is......................................................... 275 8.1.1.1 Examples................................................................. 276 8.1.2 Test Market: Its Goals...........................................................277 8.1.2.1 Some Cautions....................................................... 279 8.1.2.2 Costs: A Deterrent................................................. 279 xii Contents 8.1.3 Considerations for a Successful Traditional Test Market...... 280 8.1.3.1 Where to Introduce...............................................280 8.1.3.2 When to Introduce................................................ 282 8.1.3.3 Length of the Test Market Period.......................283 8.1.3.4 Disruptive and Unexpected Elements in Test Markets.......................................................283 8.1.3.5 How to Introduce..................................................284 8.1.3.6 What Product to Market.......................................285 8.1.4 Evaluating the Results..........................................................285 8.1.4.1 The Market: Misinterpreted and Misunderstood...............................................286 8.1.5 Judgment Day: The Evaluation........................................... 291 8.1.6 Failures in the Marketplace................................................. 292 8.1.6.1 Causes of Failure................................................... 295 9. Why Farm Out New Product Development?......................................... 301 9.1 Introduction........................................................................................ 301 9.1.1 A Rose Is a Rose Is a Rose....................................................302 9.1.1.1 Outsourcing...........................................................302 9.1.1.2 Outsourcing, Consulting, Partnering, and Joint Venturing...............................................304 9.1.1.3 A Classification of Consultants...........................307 9.2 Going Outside for Product Development....................................... 311 9.2.1 The Need................................................................................ 312 9.2.2 Finding and Selecting the Appropriate Consultant........ 313 9.2.3 Some Caveats in Selecting and Working with Consultants................................................................... 316 9.2.3.1 Exposure................................................................. 316 9.2.3.2 Loss of a Collective Learning Opportunity...... 317 9.2.3.3 Employee Growth................................................. 318 9.2.3.4 Dissension.............................................................. 318 9.2.3.5 Other Obligations: Problems in Academe......... 318 9.2.4 Advantages and Disadvantages......................................... 319 9.2.4.1 Utilization of Resources....................................... 319 9.2.4.2 The Need to Monitor............................................ 321 9.2.4.3 Does the Client Understand Consultantspeak? Communication.................... 321 9.3 Summary............................................................................................. 323 10. New Food Product Development in the Food Service Industry........ 325 10.1 Understanding the Food Service Industry..................................... 325 10.1.1 Food Service Marketplaces.................................................. 325 10.1.2 Customers and Consumers in the Food Service Industry.................................................................................. 328 Contents xiii 10.2 Characteristics of the Food Service Market................................... 329 10.2.1 Clientele..................................................................................330 10.2.2 Food Preparation and Storage Facilities............................ 331 10.2.2.1 Equipment.............................................................. 331 10.2.2.2 Storage Facilities.................................................... 332 10.2.2.3 Labor.......................................................................333 10.2.3 Price, Quality, Consistency, Safety, and Sometimes Nutrition.................................................................................335 10.2.3.1 Standards................................................................339 10.2.3.2 Health Care Sector of the Institutional Market.................................................................. 341 10.2.3.3 Military Sector of the Institutional Market.......342 10.3 Developing Products for the Food Service Sector.........................343 10.3.1 Physical Facilities of the Customer.....................................343 10.3.2 Energy Requirements...........................................................345 10.3.3 Labor.......................................................................................346 10.3.4 Waste Handling....................................................................347 10.3.5 Customers and Consumers.................................................347 10.3.5.1 Consumer and Nutrition: An Oxymoron............348 10.4 Quality in the Food Service Market................................................349 10.4.1 Safety......................................................................................349 10.5 Development of Products for the Food Service Market...............350 10.6 Criteria for Evaluating a Test Market.............................................. 352 11. Product Development in the Food Additive and Food Ingredient Industries..................................................................................355 11.1 Additive and Ingredient Market Environment.............................355 11.1.1 Characteristics of the Food Ingredient Industry..............356 11.1.1.1 Chain of Customers and Consumers: A Welter of Identities and Needs........................356 11.1.1.2 Similarities and Dissimilarities to the Food Service Industry.................................................... 357 11.1.1.3 The Ever-Present Government............................358 11.1.1.4 Proliferation of New Ingredients........................ 359 11.1.2 Focusing on the Customer Who Is Also the Consumer.....................................................................360 11.1.2.1 Customer Research............................................... 361 11.1.2.2 “Consumer” Research: “Yes” and “No” Possibilities............................................................. 362 11.1.3 Development Process...........................................................364 11.1.3.1 Development Process and Food Legislation.....365 11.1.3.2 What Are the Criteria for Screening?.................365 11.1.4 Looking to the Future for Developments in Food Ingredients.............................................................................368 xiv Contents 11.1.5 Meeting the Challenge: New Ingredients......................... 370 11.1.5.1 Marketing’s Impact on the Direction of Research and Development............................. 370 11.2 Ingredients and the New Nutrition................................................380 11.2.1 Opportunities Provided by the New Nutrition............... 381 11.2.1.1 Biologically Active Nonnutrients........................ 381 11.2.1.2 Other Ingredients: Some with and Some without Nutritive Properties...............................388 11.2.2 Challenges for the New Nutrition...................................... 392 11.2.2.1 Problems Presented by Enriched Foods............ 392 11.2.3 A Cautionary Summary...................................................... 393 12. Dancing but Uncertain of the Music....................................................... 397 12.1 Introduction........................................................................................ 397 12.2 Looking Forward and Backward..................................................... 398 12.2.1 The Changed and Changing Scene.................................... 398 12.2.1.1 The Past................................................................... 398 12.2.1.2 Recent Times and the Present............................. 399 12.2.1.3 The Future..............................................................400 12.2.2 Being Sure of the Concept...................................................404 12.2.2.1 Value of the Earlier Literature.............................406 12.2.2.2 What Customers and Consumers Want or What Purveyors Want?....................................408 12.3 What Food Science and Technology Have Wrought....................409 12.3.1 Impact of Food Science and Technology...........................409 12.3.1.1 How Food Savvy Are People?.............................409 12.3.1.2 Impact of Technology........................................... 412 12.3.1.3 Trends as Social History....................................... 418 12.3.2 Factors Shaping Future Product and Process Development..........................................................................429 12.3.2.1 Influences: Known and Unknown......................429 12.4 What I Have Learned So Far about Product Development..........438 12.4.1 My Mentors............................................................................438 12.4.1.1 New Food Products of the Future......................438 References............................................................................................................443 ER -