New food product development : from concept to marketplace /

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
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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
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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
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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
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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