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Product development

Feb 25, 2016 | 0 comments

Feb 25, 2016 | Essays | 0 comments

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Product development

New Food Production Development

  1. Introduction

Product development is very vital in the growth and success of a company majorly in the food industry and involves the creation of a product mix made up of several products. The product mix does evolve continuously due to constant change and expansion of consumer needs that influence sales thus, may lead to the death of a product and the introduction of new ones. Therefore, the company ought to establish an organized product development program to come up with an appropriate product mix that would be profitable and stay in the market for a long.

I.1/ Importance of NPD in food production

New Product Development is the creation of a new product or the modification of the existing product to keep up with the changing consumer market demands and needs to ensure the survival of a company in the market by making it competitive. In food production, a company has to stay relevant all the time. New Product Creation in food production is geared change in the traditional market place, the life cycle of products, new food demand, for instance, the rising demand for organic food, change in government policies, and new technologies. Therefore, for a company to enhance its profit margins growth and then they have to create a suitable product that is well received in the market as well as aid in the survival of a company as implied by Fuller (2011,p. 26).

The Product Development process and approaches

Creating a new product requires a high level of creativity as well as dedication. Research indicates that most products that are created do not make it in the market thus it requires collective efforts and motivation of the company as it is a very expensive preprocess. The process of product creation follows eight steps according to Fuller (2011, p. 34).

Stages of New Product Development (NPD)

Product strategy development:

There are 8 steps in NPD

  1. Idea generation
  2. Idea screening
  3. Concept development and testing
  4. Marketing strategy
  5. Business analysis
  6. Product design and process development
  7. Test marketing
  8. Commercialization
  9. Idea Generation: this is a regular systematic pursuit for new product opportunities and it entails identifying new ideas’ sources as well as idea-generating methods. The ideas can be generated from, new research, salespeople, analysis of the market and consumer trends, competitors, focus groups, company’s R&D department, corporate spies, employees, and floating of ideas where one idea can lead to several.
  10. Idea Screening: its main objective is to get rid of unsuitable concepts in the idea before devoting resources to develop them to minimize the possibility of loss. Screening involves determining the suitability of the idea to achieve market goals and be profitable to the business.
  11. Concept testing: at this stage, the proposed product is introduced to the consumer to determine their response and attitude towards it gauging whether the product meets their expectations thus assisting to minimize the possibility of loss.
  12. Market Strategy: this involves developing a three-part strategy plan. The first part entails a description of the market’s size, structure and behavior, positioning of the planned product, and the market sales as well as profit targets for the first few years. The second is to outline the proposed price, distribution, and marketing budget for the first year. Lastly, the long-run sales and profit goals as well as marketing-mix strategy with time.
  13. Business & financial analysis: its major aim is to estimate the profitability and breakeven point based on the predicted sales volume depending on the size of the market derived from projected selling price determined based on competition and customer feedback.
  14. Product design and process development: this involves the model design of the product and developing the production procedure for the product that is flexible, open to constant evaluation.
  15. Test Marketing: it entails selling the product in a few areas to observe its actual performance about the proposed marketing plan.
  16. Commercialization; entails the implementation of full product production and a complete marketing plan.

Factors for product success: Key success factors in New Product Development:

  1. Company-wide commitment: NPD requires company devotion and complete dedication since it is costly in terms of money and time yet there is a high chance of failure.
  2. Broad uses of Resources and Involvement: putting the available limited resources both human and material into the most profitable action is essential in the success of NDP. It is also essential to seek the cooperation of all members of the staff because at a certain point the skills of various individuals like accountants would be required.
  3. Good Communication and Motivation: appropriate mode of communication that is clear and polite along with motivation elements is also vital in achieving the desired results.
  4. Creative synergy: there should be suitable coordination between technical and marketing departments to combine what is technically feasible with what the market requires and constantly refining and improving ideas.
  5. Commercial awareness: the company ought to have complete information on product costs and the impact of prime cost variation on the wholesale and retail price and margins to ensure they meet the objective of enhancing profitability.
  6. Clear Objective and a good Brief: a clear brief, accepted, and understood by all is also vital in the realization of new product development.

Department and functions in food product development:

Two divisions need laboratory work. The laboratory works differ from each other with different speculation. They are:

Food Science Lab Work

It supports the product development lab by conducting vital activities like running nutrient analysis, color research, measurement, and Flavor Chemistry.

Product Development Lab Work

This is where formulas for new products are developed as well as process and manufacturing procedures, and specification of raw materials with the help of engineers.

Categories of new products

New products are classified depending on their target market or whether they are new or modified. They include innovative products, developed as a result of modification of the existing product, creative products that are completely new in the market, and new packaging of existing products that only involve replacing the old package. Re-positioned existing products and line extensions products that take into account customer requirements are also categories of new products as explicated by Fuller (2011, p. 56).

I.4/ Case study of Cadbury Snaps: Cadbury

The Cadbury Company

Cadbury is a British company that has several branches worldwide and deals in confectionery products like dairy milk chocolate, crème eggs, and rosses selection box. The company is international though it is owned by Mondelez International and is the second-largest producer and supplier of confectionery products.

The Brand Cadbury Snaps

Cadbury Snaps was developed by the Ireland Cadbury branch and was first sold in the Ireland market. The brand contains long strands of chocolate and is about forty in a package specifically designed for many people thus facilitating sharing. They do exist in different flavors.

Market Research

Earle (2008, p. 76) suggests that the success of every new product is uncertain. However, the probability of success can be maximized by exhibiting high standards of creativity and innovation through teamwork and adopting effective marketing strategies, which can be achieved by carrying out detailed marketing research. Marketing research involves collecting, recording, and analyzing information concerning relevant variables influencing the product’s packaging, prices as well other important decisions like promotion. The research can be conducted on the field or the desk depending on the type of information required and follows certain procedures of identifying the market problem, developing the marketing objective, collecting the required data either through qualitative or quantitative research, analysis of the data, and reporting writing on findings and their analysis.

Types of research and approaches to Cadbury’s information and gathering

Cadbury began carrying out research on indoor snacking in 2004 and discovered the need for snacks that would be effective for young adults chilling out with friends at home in the evening as the trend had increased. That motivated them to come up with Cadbury Snaps that are easier to share as they are over forty in a pack since the products they had at the time like flakes did not meet that need.

Four stages of the development process

The development process takes four stages which are planning, execution which involves the actual production, testing of the product to access its impact in the market, and implementation and maintenance which involve the commercialization of the product by creating awareness and continuous production and supply over the years as implied by Fuller (2011, p. 59).

Product Launch

Cadbury snap was first launched in 2005 targeting sociable young adults with a spot for the company in the house during the evening. The main object of the launch campaign was to create awareness of the brand, which they did through advertising, sampling, and publication, which they did through radio promotion and even sponsoring sceenchick.com.

Conclusion

Cadbury did manage to successfully develop Cadbury Snaps since it did manage to achieve its objective as much as it faced challenges along the process like storage space and even after the launch they have to strive to ensure it sells.

The detailed design brief of our new product development: Toasty potato sandwich

Toast potato open sandwich

This is a type of food I developed and contains a variety of nutrients including proteins and carbohydrates easier to prepare and delicious prepared from eggs, bread, spices, white potato with peel, mild cheddar cheese, and other processed materials like a vegetable.

Ingredients used in Toast potato open sandwich

Raw materials

Wholemeal brown sliced bread

White potato with peel

Mild cheddar cheese

Chilli powder

Salt

Whole Eggs,

Oil for frying

Processing method: Kitchen trial:

In the preparation of a toasty open sandwich:

  1. The whole white potato with peel is boiled under a shallow flame for about 40-45 minutes.
  2. It is then removed and mashed while hot and then seasoned with salt and chili powder.
  3. Cheddar cheese is grated and added to the mashed potato mixture.
  4. Eggs are beaten.
  5. Mashed potato mixture (68g) is spread on one side of the sliced bread, after which is soaked in the mixture of beaten eggs.
  6. The assembled open sandwich of egg coated with bread is then toasted in a heated frying pan (1tsp oil), under shallow heat, on both sides until they are golden and cooked.
  7. Then, the slice is taken to the cooling area and left at room temperature for 2 hours.
  8. The open sandwich is then packaged using plastic-lined packages made of cardboard individually, sealed, and clearly labeled after which are stored in the refrigerator at a temperature not exceeding 80C or freeze.

The sandwiches are distributed to the stores within 12 hours of production and can stay fresh for three days after which the unsold ones are removed from the stores.

Intended Use & Target Consumers: toasty potato open sandwiches are fully cooked thus ready to eat as they can be consumed as acquired or reheated, and intended for general public consumptions.

Design brief and Interpretation of design brief and design specification

III/ Team working

Quality Manager; specification & sourcing

The role of a quality manager in a food company aims at making sure that the food sold is suitable for human consumption and ensuring that the food packaging materials are safe and suitable. My role as a quality manager, therefore, does entail purchasing all materials used in food processing. I ensure safety by clearly specifying the materials and purchasing them from a reliable supplier so that the products can be traced back in case of any unsuitability to minimize inconvenience and loss and that the packs are properly labeled for easier accessibility. On the arrival of the products, I ensure that they are properly checked for suitability in terms of their condition depending on the type of product and compliance with the agreed specifications after which they are properly stored by the required storage conditions for each product.

Also, I develop and monitor the Hazard Analysis Control Product (HACCP) program, maintaining standardized recipes and other records associated with HACCP and developing HACCP food preparation guidelines. Monitoring all production areas of the District Kitchen to ensure adherence to instituted HACCP policies and procedures by stemming any activity that does not meet food quality control standards is also part of my duties. Moreover, I submit product samples for microbiological testing, analyzing the results of the test and inform the food service staff of the appreciate measures to be taken, supervise sanitation assessments of all food production areas and equipment.

Legal requirements: food safety regulations

Food dealers are expected by the law to deal with food that is safe and suitable for consumption and any violation of that requirement may result in severe penalties. The rules emphasize safe ways of handling food to minimize the risk of contaminating foodstuff. The legal requirements follow the quid line outlined in Hazard Analysis and Critical Control point, and they include food safety plan, food safety, and quality management, site standards that outlines the expectation of the kind of environment food dealers ought to operate in, product control that focus of safety during product creation ensuring the use of suitable ingredients, process control that entails establishing and maintaining healthy process controls and volume/ weight control and personnel requirement that requires hired staff to behave undergone specific training as described by Paul (2012,p 405).

HACCP System for Toasty potatoes open sandwich production

The HACCP rules are observed throughout the production process beginning from receipt of ingredients to packaging. Temperature control of all the toasty potato open sandwich ingredients is maintained throughout the supply chain and required detailed records are kept.

Receipt of goods & storage

All ingredients such as white potatoes, cheddar cheese, wholemeal sliced bread, whole eggs, and spices are purchased from a trustworthy source.

Production control

Products are assembled as fast as possible in temperature-controlled rooms not exceeding 10°C. The product temperature must not exceed 8°C during packaging.

Foreign material control

All finished products are screened for possible metal contamination using appropriate metal detection facilities that are frequently checked for correct sensitivity.

Environmental standards

The premises where the production of toasty potato open mashed are produced are of the highest standards and are designed to allow a linear flow of raw material to the finished product, to eliminate chances of cross-contamination. The premise also has adequate ventilation like air filtration and mechanical air extraction in the cooking areas and has a high hygienic condition.

Cleaning

Hoses and pressure washers are used carefully since high water pressure can produce aerosols that spread pollution (suitable pressure is 800 psi).

Staff standards

The staff adheres to the requirements as they ensure they wash their hands well before handling food and uses disposable rubber or plastic gloves that they get rid of after every session.

Distribution

A microbiological sampling program has been established to test both raw materials and finished products and the main ingredients of the final product tested at least after every two months.

Food Hazards in the Industrial production

HCCP provides a comprehensive way of identification procedures and actions in the industrial production of food that may contaminate food making it unsuitable for consumption starting from planning, purchasing materials, processing to the final food product (Paul 2012, p. 407). HCCP strategy is based on effective and careful planning, the actual procedure, constant hazards checking, and taking suitable action to eliminate the danger in case any is found. The process entails identifying microbiological, chemical, and physical dangers that are likely to occur during production.

Figures

Diagram process flow: A Process Flow Diagram for the preparation and production of Toasty potato open sandwich

Chilli

Powder

White Potato

Purchase & reception of raw materiel

Cheddar cheese

Salt

Eggs

Slice bread

Storage

Ambient

Room Temp

Refrigerate 5oC

Room Temp in dark

Beating

Eggs

Grating

Washing

Preparation

Boiling

Mashing

Mixing the ingredients

Spread the mixture on one side slice bread

Coating with egg

Frying

Cooking

Cooling

Packaging

Chilling at 5oC

or freezing

Tables

List of potential hazards associated with each step:

Table: Ingredient Hazards analysis chart:

Process Hazards Source/cause Significant hazard? (Y/N) Control measure Comment
Purchase B-Biological Egg/Presence of Salmonella

Cheddar cheese/Listeria monocytogenes, Salmonella enteritidis, Staphylococcus aureus, Escherichia coli

Soil/ Potato:Clostridium botulinum

Y

N

N

B, P & C:

a. Purchase from a reputable supplier;

b. Visual examination of incoming ingredients & packaging

c. Purchase within date coded. Ensure packaging intact

P-Physical The foreign object of contamination
C-Chemical Solanine N
Storage: Ambient B-Biological Growth of germs & molds N Store in dry well-ventilated conditions; Ensure effective stock control (rotation)

Correct storage temperature

P-Physical Foreign object contamination N Storage condition and regular cleaning of storage areas
C-Chemical Chemical contamination (e.g. cleaning chemical) Y
Preparation

Wash/ boil

B-Biological Contamination from handlers, dirty articles/ equip., and/or wash water N Thorough washing ensure effective personal hygiene, use only clean articles/equipment, and potable water
Physical Contamination from poorly maintained articles/equip N Visual checks, use the correct equipment
Chemical Contamination from the wash water N Use potable water
Cook:

/fry

Biological Survival of germs Y A visual check to ensure thorough cooking
Physical As the preparation step N
Chemical As the preparation step N Use potable water
Cooling Biological Cross-contamination Y Good Personal Hygiene
Physical Contamination from poorly maintained articles/equip N Visual checks use the correct equipment and clean ones.

Environmental control

Chemical Chemical contamination (e.g. cleaning chemical) N Proper segregation of non-food chemicals during storage & handling
Packaging Biological Clostridium botulinum (anaerobic)/ cross-contamination Y Check cooling temperature before packaging/ Good hygiene practice.
Physical N Use magnets, metal detector
Chemical Adhesives N
Chill or freeze Biological Germs & molds Y Refrigeration temperature control
Physical
Chemical

References

Categories of New Products (2015). From Managing Products Tutorial. Know This. Retrieved 04/05/2015 from http://www.knowthis.com/managing-products/categories-of-new-products

Earle, M, and Earle, R. (ED.) (2008). Case studies in Food Product Development. Woodhead Publishing Limited. CRC Press

Fuller, G W. (2011). New Food Product Development. From Concept to Marketplace. 3rd Edt. CRC Press.

Panos Egglezos. (2012). How It’s Made- Pre-Packaged Sandwiches.

Paul, Knechtges L. (2012). Food safety: Theory and practice. https://books.google.co.uk/books.

The British Times. Business 2000. 10th Edt 2006/2007.