NSW Department of Education Food product development presentation

NSW Department of Education Food product development presentation 1 An overview

NSW Department of Education Food product development: definition The process of developing a new product to meet a consumer/market need and/or trend. This involves a number of steps that are completed before the product is introduced to the market. A new product development maybe done to develop an item or improve a product. To compete with market trends and/or changes, new product development is essential to any business.

NSW Department of Education Describe a range of food product developments

NSW Department of Education Food product developments There are 3 categories of new products New to world: are completely new and different to pre-existing products, for example new technologies include genetically modified foods, developments in packaging, and 3 D food printing. New ingredients include traditional Indigenous foods, genetically modified foods, and food additives. Line Extensions: are food products which are changed in some way, including diet related factors, health, colour, flavour, packing size/features. Examples include Oreo biscuits and Oreo dairy milk chocolate. Me- Too Products: are copies of existing products, usually the development of a cheaper/generic product. Examples include canned Goulburn Valley fruit and cheaper canned Black & Gold brand fruit.

NSW Department of Education Food product developments – new to world Advantages: • novelty - more likely to be successful to consumer • company profit/competitive - if successful on a world scale. Disadvantages: • due to globalisation, new to world products are difficult to develop due to existing food ideas • costs associated with development and promotion of new products • costs to manufacturer- such as the purchase of new processing equipment, staff training, source of new ingredients • marketing needs to be strong to promote to target market.

NSW Department of Education Food product developments – line extensions Advantages: • meet consumer needs and increased market share • increased shelf space, increased brand prominence and increased company promotion • as processing and formulation are similar to existing product, new product is inexpensive and easier to produce • manufacturer already has appropriate equipment and trained staff. Disadvantages: • if product doesn’t meet consumer’s needs, product maybe rejected • if sensory preferences don’t meet consumer expectations that is colour, flavour, the product maybe rejected • if unsuccessful, a line extension may affect company’s image.

NSW Department of Education Food product developments – me too Advantages: • easy and inexpensive: processing methods are well known and ingredients already available and listed for other products • manufacturers already have appropriate equipment and trained staff OR can purchase, lease or contract another company to manufacture product on their behalf • minimise costs by using cheaper ingredients, lowering packaging quality, promotion and labelling and overall cost of the product. Disadvantages: • to be competitive with already established product may require aggressive marketing and promotional activities, which are risky and expensive.

NSW Department of Education Reasons for food product developments

NSW Department of Education Health and environment issues Companies develop and promote foods that are modified versions of regular product lines, that also support health and nutrition awareness such as: • low fat • high fibre • salt reduced • special dietary requirements that is gluten free/dairy free • recycled/sustainable packaging.

NSW Department of Education Technological developments Examples of technological developments include: Household microwave ovens: as microwave technology developed, as did the need for more powerful microwaves and microwavable products and packaging. Resurgence of slow cookers: need and development for specialty recipes. Home espresso coffee makers: need and development of boutique style ground coffee. Convenience and availability of purchase and use of coffee grounds. Innovative products: the result of completely new ideas including line extensions, me too products, product tampering, consumer demand special applications such as Defence Force ration packs/space foods.

NSW Department of Education Societal changes – convenience foods Convenience foods are driven by busy lifestyles and ageing population. Convenience foods include processed foods that have a longer shelf life and are easy to use. The major attributes that consumers look for in convenience foods include ease of use, packaging, nutritional value, safety, variety and product appeal. Convenience foods save time and energy. Technology and innovative packaging options have widened the food choices that are available such as frozen, chilled and packaged foods.

NSW Department of Education Societal changes – target market Consumers are time poor and are looking for convenience foods – food that save time and energy. Technology and innovative packaging options have widened the food choices that are available such as frozen and chilled packaged foods.

NSW Department of Education Company profitability Companies can be hesitant to invest in developing a new product due to the risk of financial loss, if not successful. To stay competitive and increase profits, companies devote time and money in developing new products in order to stay competitive and meet consumer needs and/or demand.