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New Food Product Development From Concept to Marketplace THIRD EDITION... New Food Product Development From Concept to Marketplace THIRD EDITION CRC Press Taylor & Francis Grou

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New Food

Sf

— + to Marketplace ~

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New Food

Product

Development

From Concept

to Marketplace

THIRD EDITION

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New Food

Product

Development

From Concept

to Marketplace

THIRD EDITION

CRC Press

Taylor & Francis Group

Boca Raton London New York

CRC Press is an imprint of the

Taylor & Francis Group, an informa business

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CRC Press

Taylor & Francis Group

6000 Broken Sound Parkway NW, Suite 300

Boca Raton, FL 33487-2742

© 2011 by Taylor and Francis Group, LLC

CRC Press is an imprint of Taylor & Francis Group, an Informa business

No claim to original U.S Government works

Printed in the United States of America on acid-free paper

10987654321

International Standard Book Number-13: 978-1-4398-1865-7 (Ebook-PDF)

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future reprint

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Visit the Taylor & Francis Web site at

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This edition is dedicated to my wife, Joan, for her patience and encouragement

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Contents

Preface

Acknowledgments

Author

1 What Is New Food Product Development? 1

11 Introduction 1 1⁄22 Defining and Characterizing New Food Products 2 1⁄21 New Products 2

Line Extension: 3 Repositioned Product: 6 New Form of Existing Products 7 Reformulation of Existing Products 7 New Packaging of Existing Product: 8 Innovative Product: 0 Creative Products 1 Genetically Modified Products 1 1.2.2 Customers and Consumers 2 1.2.3 Added Value 3 1.24 Markets and Marketplaces 4 1.3 Marketing Characteristics of New Products 5 1.3.1 Product Life Cycles 8

1.3.2 Profit Picture 9

14 Why Undertake New Food Product Development? 20 1.41 The “Why” of “Why Undertake New Product

Development2“ -25 14.1.1 Corporate Avenues for Growth and Profitability 1.4.1.2 Opportunities in the Marketplace for New

Product Development

14.1.3 Technological Advances Driving New

Product Development 14.1.4 Government's Hand in Influencing New

Product Development

2 The New Product Development Team: Company Organization

and Its Influence on New Product Development

2.1 Structure of Organizations

2.1.1 Types of Organizations

2.1.1.1 Committee Politics 2.1.1.2 Hierarchical Politics 2.1.1.3 Court Politics

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viii

2.2

23

24

25

2.6

What Are the Sources for New Product Ideas

3.1

3.2

Contents

Organizing for Product Development

2.2.1 Organizing for “the What”: The Physical Plant

2.2.2 | Organizing for Whom: The Human Side

2.2.3 Organization and Management

2.24 Creativity: Thinking Differently

Research for Creativity: What Is It?

2.3.1 | Characterizing Research

2.3.2 Organizing for Creative Research

2.3.2.1 The “Unhabitual” as a Tool in 2.3.2.2 Cross-Functionality in Product Development 2.3.2.3 Fluidity as an Organizational Tool

in Creativity Constraints to Innovation

2.4.1 The Corporate Entity

24.11 Risk Capital 24.1.2 Company Eg:

24.2 Communication

2.4.2.1 Multiplant Communication

24.2.2 Technology: Its Management and Transfer 24.23 Personnel Issues

The New Product Development Team

Phases in New Product Development

Getting Ideas

-1 General Guidelines for Ideas

3.1.2.1 The Many Marketplace:

3.1.3 Getting to Know Them: General Techniques

3.1.3.1 Census and Economic Data

3.1.3.2 The Fallacy of Privacy

3.3 Data Mining 3.1.3.4 The Internet: Social Networking, Blogging,

Tweeting, and All That Buzz

3.1.3.5 Just Looking and Being There 3.1.3.6 Using Acquired Knowledge to Source Ideas 3.1.3.7 Using Retailer/Distributor/Manufacturer

Interfaces for Ideas

3.1.3.8 Other Environments as Sources of Ideas 3.1.3.9 Internal Sources of Ideas for Development Criteria for Screening Ideas

3.2.1 Environment in which Criteria Are Applied

3.2.1.1 Conflict between Marketing and Research

and Development

3.2.1.2 Conflict between Production and Marketing

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Contents ix

3.2.2 Applying the Criteria -«««e 120 3.2.2.1 Reality of New Product Development Ideas 3.2.2.2 Caution about Copy-Cat Products

4 Strategy and the Strategists

41 Strategy

4.1.1 Defining the Compam

42 The Strategists

4.21 An Involved

4.2.2 Shaping the Company’s Objectives

4.2.2.1 Company Objectives That Shape Product

Development soos 4.2.2.2 Sanctioned Espionage or Competitive

Intelligence?

4.2.2.3 Benchmarking a 4.3 Finance Department: The Cautionary Hand in Development 4.3.1 Finance's Not So Passive Role in Development

43.2 Financial Realities of Product Development

43.2.1 Slotting Fees

43.22 Financial Criteria 4.3.3 Financial Tools

43.3.1 Comparing Costs with Anticipated

Revenues

4.3.3.2 Probability Index 146 43.3.3 Other Tools 147

44 Strategy: Marketing's Perspective 147 44.1 Marketing's Functions

442 Market Research

443 Time: A Critical Element in Marketing Planning

and Development

444 Nature of Market Information

445 Qualitative and Quantitative Market Research

Information

44.5.1 Focus Groups 44.5.2 Beyond Focus Groups: Neuromarketing—

Invading the Consumer’s Inner Space

44.6 Marketing’s War Room

44.7 Marketing and Sales Departments

448 Marketability and Marketing Skill:

449 Summary

5 The Tacticians: Their Influence in Product Development

5.1 Science and Technology in Action

5.1.1 Research and Development: Meeting the Challenges 166

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