Developing a food product entails more than just perfecting a recipe. To create new food items, companies must plan carefully, labor diligently, and do significant research over a long period. It is critical to set precise targets and timelines that integrate the firm's future direction before beginning a new development endeavor.
Companies create new products to attract new consumers, expand into new geographic areas, boost profitability, raise brand awareness, or increase market share. Every day, a slew of new food products enter the market, vying for consumer attention.
The following are some of the reasons behind the development of new food products:
1. New inventions
2. A customer's demand (Change of
lifestyle, healthy living)
3. Current market loss
4. Market compulsion
Process of Creating Food Products
An idea that
has the potential to transform someone's life can come from anywhere. A market
survey might lead to new product ideas. Staff from any area, such as sales,
marketing, production, and administration, can record their thoughts after the
brainstorming session. Regardless of whether or not a concept is beneficial at
the moment, it should be mentioned.
Because there may be several restrictions in putting these ideas into action, screening is required. Finance, marketing, processing, laws, packaging, and distribution are all possible constraints. As a result, they must all be taken into account.
2. Market Analysis
Market research
provides insight into customer preferences and product acceptability. For data
collection, it entails both primary and secondary market research. Focus groups
and test panels may be used in market research. When conducting surveys, the
following characteristics are taken into account: age, gender, economic
position, geographic location, etc.
Following a market survey, data is collected using a marketing information system. It consists of four main components: internal corporate data gathering, market data for competitors' products, acquired primary and secondary data, and marketing methods.
1. Analyze the Target Market
2. Examine the geographical
situation
3. Cost Analysis
4. Examine the competition
5. Conduct a SWOT analysis
6. Business rules and regulations
Market research determines whether
or not a product will succeed in the marketplace. As a result, the maker or
firm can decide whether the product should be continued or discontinued. The
product may be phased out for various reasons, including high development
costs, financial difficulties, an unsuitable market, and too many rivals for
the same product.
Product
definition may be a time-consuming and challenging procedure. Raw ingredients,
various processing methods, quality control, quality assurance, packing and
storage conditions, and so on are all covered.
It provides information on the specific description of the product that the manufacturer needs and assists manufacturers in obtaining accurate information on what the buyer wants. Market research will assist in gathering this precise information based on the results of the previous two phases of idea development and screening.
A feasibility study is required
to find the new product is viable. Technically and financially, new product
concepts should be realistic. Technical feasibility tests for the
practicability of the different processing techniques, suitability of
equipment, availability of sufficient people, time and money requirements, etc.
5. Process
Improvement
A new product might be unique and
distinct from the existing line, just a line extension or a packet
modification. The process, according to it, is progressing. It entails adding a
new product line, a redesign of the existing layout, new processing procedures,
and personnel training.
6. Development and
Testing of Prototypes
Prototype development is required
to get an understanding of large-scale procedures and aids in market entry.
Large-scale manufacturing entails managing ingredients, processes, and
production and storage and packaging on a larger scale.
Market testing will aid in the
detection of any flaws in the product, design, or other aspects. It will also
assist in determining the appearance and worth of a product in a particular
market. On this basis, essential modifications for future development can be
made.
7. Start-up
After testing all of the concepts
through several phases, the last step is to launch a new product into the
market. Before releasing a product, you should have a thorough plan in place.
It should include information regarding the date of a product's introduction as
well as the target buyers. When it comes to launching, the correct placement
versus rivals is crucial. Additionally, client feedback will provide you with
an understanding of what the customer requires. It is not necessary to begin
working on product modifications right away. You may gradually increase your
consumer base. Launching a product
is not the final stage in the creation of a new product. It is a continual
process, and additional development is always necessary for a product's
success.
Over the years, the food
manufacturing sector has successfully adopted several generic NPD approaches to
meet its demands. However, changing customer demands, increasing retailer
pressure, and mounting pressure to reduce negative environmental consequences
necessitate rethinking old methods. A formalized NPD model mainly built for
food producers must incorporate factors such as closely fulfilling customer
expectations, employing seasonal and local products, guaranteeing food safety and traceability, assuring production at scale, and minimizing lifetime
environmental consequences.
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