Food product development based on experience

Printed on acid-free paper in the United States of America First edition, 2002 Library of Congress Cataloging-in-Publication Data Food product development based on experience / edited by

Food Product

Development

Based on Experience

Edited by Catherine Side

Product

Development

Based on Experience

Food Product

Development

Based on Experience

Edited by Catherine Side

Food Science and Technology (IFST) in Britain In 1994 she created and hassince directed the Virtual Consulting Group, a successful network of overfifty bioscience consultants She is also a member of Stratecon InternationalConsultants.

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

First edition, 2002

Library of Congress Cataloging-in-Publication Data

Food product development based on experience / edited by CatherineSide.—1st ed

8 Case Study: Introducing a New Flavor and Color Ingredient 95

11 Equipment Integration in the Process: Patent Questions

Charles Beck, PhD—Stratecon Dr Beck was educated in Chemical ing at Cornell University, where he received bachelor’s and master’s degreesbefore applying his trade to military foods during his tour of duty He thenwent to the Food Science Department of the University of California, where

Engineer-he earned a PhD in Agricultural CEngineer-hemistry

Within the food industry he has consistently sought pioneering ments: freeze-dried coffee with General Foods (now Kraft); textured veg-etable proteins with General Mills; aspartame (Equal) and foods for renalpatients with G D Searle (now Monsanto’s NutraSweet Kelco); a pastrypizza concept with Kitchens of Sara Lee; and ten new venture projects for

assign-R J Reynolds Development Corp (including packaging, fast-food rants, mail order, food irradiation, cut flowers, plant tissue culture, anddental technologies)

restau-Since the “Barbarians at the Gate,” Dr Beck has been consulting to thefood industry from Winston-Salem, North Carolina, and he has created anetwork of other international professionals who complement his skillsand geography Stratecon’s projects often help companies decide how tomanage technical developments that were not requested by the marketingdepartment

Recent activities include evaluating the market size, pricing, and ture for a natural flavoring from a novel source; coordinating the activi-ties of a benchmarking group with similar products and distinctterritories; assisting entrepreneurs with entry strategies; supporting agrain-based company in its transition from commodity to specialty prod-ucts; searching worldwide for unpublished emerging technologies in a spe-cific product sector; and guiding several clients wishing to introducehealth-based ingredients

struc-Dr Beck is also very involved, nationally and locally, in the Institute ofFood Technologists and serves the Piedmont Entrepreneur’s Network inNorth Carolina

vii

Aaron Brody Aaron Brody has been involved with food product and aging development for more than forty years and has taught the subjects onuniversity levels for more than ten years His food industry affiliations in-clude General Foods, where he was on the team that developed precookedfrozen foods including fish sticks; Raytheon, where he was a member of theteam that developed the first microwave oven; Whirlpool Corporation,where he led the development of controlled-atmosphere food preservationthat led to fresh-cut vegetables; M&M/Mars, where he developed dozens ofnew products such as Starburst; Mead Packaging, where he created andmanaged the development of the Crosscheck aseptic packaging system; andCCA, where he led the development of the Versaform insert injection mold-ing system.

pack-He teaches food product development in the Department of Food keting at St Joseph’s University and product development for Keller Grad-uate School of Management Dr Brody is coauthor of the definitive text on

Mar-food product development, Developing New Food Products for a Changing Marketplace He is recipient of Institute of Food Technologists’ Nicholas

Appert Award, Industrial Scientist Award, Industrial Achievement Award,and Riester Davis Award He is a Fellow of Institute of Food Technologistsand Institute of Packaging Professionals He is a member of the PackagingHall of Fame and a graduate of Massachusetts Institute of Technology

Tom Heyhoe, FAIFST FAOQ—Heyhoe & Associates Tom Heyhoe’s originaltraining was in chemistry He started his food industry career with Unilever,and over the next twenty years he worked for a number of major food com-panies steadily climbing the corporate ladder In that period he also oper-ated one company’s in-house consumer research program for several years.Since 1984 Tom has been a specialist food industry consultant He has un-dertaken a diverse range of projects including developing drink concen-trates for Malaysia, research on dairy products markets in India, and foodsafety projects for Australian government agencies Tom is based in Aus-tralia but has also worked in thirteen other countries Besides working as aconsultant, he has managed to fit in nine years as a lecturer in food technol-ogy, sensory evaluation, and product development

Herbert Weinstein, PhD—Weinstein Consulting International Dr Weinsteinearned his chemical engineering degree from the Universidad Nacional Au-tonoma de Mexico and his doctorate in Food Science and Technology fromthe Massachusetts Institute of Technology He has more than thirty years ofindustrial experience (General Foods—now Kraft Foods—and Unilever) inmost technical aspects of food manufacturing, distribution, logistics, prod-uct development, quality control, quality assurance, and management, bothtechnical and in business

His broad experience with the many aspects of product development, aswell as his teaching experience in his native Mexico, in Brazil, and in the

United States, support his many contributions as lecturer and participant intechnical programs for IFT functions Since retiring from the food industry,

he has had more than eight years of consulting experience in different parts

of the world He has worked in food fortification projects in several tries in Latin America, Middle East, and Africa

coun-His expertise is in technical feasibility, quality control and assurance, alytical and manufacturing training, monitoring and control, product devel-opment, and stability testing, as well as legislation and liaison functionbetween private and public sectors He served as Senior Food Technologyadvisor for USAID OMNI Project for three years Since then he has con-tributed to several projects for the Micronutrient Initiative, InteramericanDevelopment Bank, UNICEF, and the Pan-American Health Organization

an-Franklin Kramer, PE—Fremark Company Frank Kramer, a chemical engineer,has dedicated his entire professional career to the food industry: thirty yearswith General Foods (now Kraft Foods) and many additional years withother large and small food companies, as well as teaching food process de-sign for several years as an adjunct faculty member of Rutger’s Food ScienceDepartment His many accomplishments during his corporate and consult-ing career are attributed to his ability to apply strong analytical and creativetechnical skills to successful commercial applications

Frank has worked on a wide spectrum of the food industry His businessassignments include work in various parts of the United States, Canada,Mexico, South America, Europe and the Middle East, providing a valuablecross section of technical, product, and business experience He currently ispresident of the Fremark Company, consultants, specializing in process andequipment development and commercialization of new food products,Frank has bachelor’s and master’s degrees in Chemical Engineering, is aFellow of the A.I.Ch.E and a member of IFT, ACS, and Tau Beta Pi; hasmany publications including inventor on sixteen U.S patents; and authored

the section on coffee processing in the ‘97 edition of McGraw Hill’s clopedia of Science and Technology.

Ency-Michele Perchonok, PhD—National Space Biomedical Research Institute Dr chonok received her BS in Chemistry from Brown University She earnedher master’s and PhD in Food Science with minors in Nutritional Biochem-istry and Marketing from Cornell University Dr Perchonok’s initial prod-uct development experience was with The Quaker Oats Company in the PetFood Division After two years in that position, she was employed at Riv-iana Foods, Inc Dr Perchonok was responsible for the product develop-ment of rice mixes and other rice products for the food service, retail,international, and industrial markets

Per-She also initiated shelf-life testing of raw ingredients and finished ucts and was responsible for nutritional and ingredient labeling MichelePerchonok is active in the IFT She has held the position of chair for the

prod-Nominations and Elections Committee, Continuing Education Committee,and the Product Development Division She also is a Councillor for theTexas Section.

Catherine Side, MA, MSc, FIFST, AIB—Inside Consulting After graduating inNatural Sciences from Cambridge University in 1976, Catherine obtained amaster’s degree in Brewing from Heriot-Watt University in Edinburgh andbecame Scotland’s first lady brewer She then joined Biocon and served in avariety of positions, all associated with marketing of brewing and food ingredients, spending six years in North America After a short spell as marketing director with a biotechnology company in England, she createdInside Consulting in 1991 and has enjoyed a successful career consulting infood ingredients, pharmaceuticals, and biotechnology

She has been an active member of IFT and its counterpart IFST (Institute

of Food Science and Technology) in Britain (and has chaired committees forboth) and has been IFT British Section Councilor In 1994 she created andhas since directed the Virtual Consulting Group, a successful network ofover fifty bioscience consultants She is also a member of Stratecon Interna-tional Consultants

Richard Stier—Nathan Associates Richard Stier received a BS from RutgersUniversity in 1974 and an MS from the University of California at Davis in

1977 His first job was with the National Food Processors Association intheir West Coast laboratory, where he eventually managed the microbiologysection Subsequent positions with Dole Processed Foods, a contract labo-ratory, and as an independent consultant have given him an opportunity towork all over the United States and the world He has helped processors inNorth America, Central American, Africa, Asia, and Europe develop foodsafety, quality, and sanitation programs His philosophy has been to em-phasize the importance of these programs as part of operating a successfulbusiness, that is, these are not cost centers but cost savings centers

Stier has served in a number of positions with the IFT, including cilor Representative to the Executive Committee He has also workedclosely with the IFT’s Continuing Education Committee helping to producetwo CD-ROMs and participating in IFT’s programs the world over Stierhas contributed over one hundred articles to trade and refereed publications

Coun-and serves as a contributing editor to Baking & Snack magazine.

Food Product Development Based on Experience is the collective work of

a team of seasoned food industry experts whose experiences and tions provide a how-to guide of successful product and process develop-ment Many of the contributors are members of Stratecon InternationalConsultants, who formed the core of the faculty for an Institute of FoodTechnologists’ short course in Product Development in 2000 That groupagain came together again in 2001 with a few additional individuals whoseexpertise complemented the Stratecon International Consultants network.Working with IFT’s Director of Education, Dean Duxbury, Charles Beck,and Herb Weinstein polled their associates for ideas and endeavored to de-termine if enough case study information could be made available to pro-vide instruction based solely on a case study format It was found that thiswas an insufficient basis for a course for two reasons First, most of thisdata is proprietary, and releases are not easily obtained Second, several ofthe associates felt that a cases-only approach might be too unstructuredand simply provide a number of post holes The consequence was a struc-tured short course with emphasis on experience, a case study, and a variety

observa-of content including tangible examples The examples were intended toprovide the students with vicarious personal experience which would addinterest to the course content and help students to limit their product de-velopment mistakes to situations which were not anticipated in this shortcourse

Hence the presentations, which have been written up for this book, wereoriginally developed for an IFT Basic Symposium, one of several trainingseminars offered by IFT prior to their annual meeting in July, 2001, in NewOrleans In the book, authors address the following key components ofproduct development:

• Managing the product development process

• Conducting consumer and market research

xi

• Making it happen.

• Estimating cost and pricing

A case study and several short case history lessons illuminate product opment from perspectives that include consumer and marketing needs,manufacturing ramifications, communication issues, food safety systems,shelf-life techniques, and distribution elements

devel-Years ago, in Woody Allen’s movie Annie Hall, he said, “A relationship is

like a shark it must keep moving forward or it sinks to the bottom anddies.” This analogy holds true for most businesses and aspects of those busi-nesses Companies who accept the status quo, refuse to innovate, or fail tochange with the changing world, get left behind, lose market share, andmay even cease to function As an example, look at the United States steelindustry Following World War II, other nations invested in new plants andnew technologies while U.S manufacturers stayed with what they had.Guess who are the major players in steel today?

The same holds true for the food industry Food processors are underconstant pressure to provide consumers with new and better products Even

established brands are tweaked on a regular basis to increase their

continu-ing appeal Look at H.J Heinz’s recent work with ketchup They have duced green and purple products targeted directly at children, even thoughthey are already the market leaders

pro-New product and process development is not, however, a commitment to

be undertaken lightly Successful new products do not spring fully grownfrom the brains of CEOs or marketing directors They are usually the prod-uct of comprehensive market research, a planned product development pro-gram, and an organized marketing effort Unfortunately, this common senseapproach is not the road most followed Food processors and others takeshort cuts, make decisions based on emotion rather than fact, or rush prod-ucts to market without doing their homework, and this often results in fail-ure In point of fact, over 90 percent of the new products released into themarket fail—and usually fail quickly

The objective of this book, and the Institute of Food Technologist’s shortcourse that inspired the book, was to provide readers (and participants)with a road map for successful new product development Of course, wecannot guarantee the success of each and every product that is released fol-lowing the planned approach advocated by the authors, but we do believe

xiii

that the information provided will increase the chances of success The grams described in this text are not just protocols based on theory, but onsuccessful industry practices The contributing authors have over 250 years

pro-of combined industry experience in product development, as well as relatedfields such as plant and production management, business development,food quality, and marketing We believe that this text will be a valuable ref-erence for everyone involved in the product development process, includingthose involved in concept development, product development, testing, andmarketing It is a text that we believe can be used across organizations tohelp people in many positions and departments to work more effectivelyand efficiently Most importantly, following these guidelines will increasethe probability that your new product will be successful

Catherine Side; Pangbourne, England; March 2002

Primary thanks go to all the individual authors for their time and dedication

in preparing and giving the presentations at the IFT Basic Symposium inNew Orleans in July 2001 They then rewrote the texts for this bookpromptly and worked hard with me during the editorial phase to ensurereadability and consistency throughout In particular I thank Charles Beck,who has led the Stratecon International Consultants from whom six of thepresenters/authors are drawn (Charles Beck, Herbert Weinstein, FrankKramer, Tom Heyhoe, Rick Stier, and Catherine Side) Without this infra-structure and years of networking, it would have been impossible to con-ceive and manage this project Aaron Brody and Michele Perchonokprovided their expertise in areas not covered by the Stratecon InternationalConsultants group, and we thank them for their presentations and their ex-cellent chapters in this book

IFT selected the basic symposium we offered, from a large number of tential offerings by other members and organizations We thank IFT collec-tively for facilitating the presentation of the symposium, and DeanDuxbury, in particular, for ensuring that all the details and arrangementswere correct We also thank the delegates from the course for their input,questions, and comments, all of which have been reviewed and taken toheart

po-We collectively thank the companies, too numerous to mention, whohave not only provided our lifelong experience of food product develop-ment but who also allowed us to use real-life examples of food productswhich have been developed

I thank friends and family for assisting with proofreading and ing me to complete the lengthy task of editing this book I thank Rick Stierfor the inspiration for the Preface

encourag-xv

Product

Development

Based on Experience

Effective Communication

Tom Heyhoe, Heyhoe & Associates

THE NEED FOR GOOD COMMUNICATION

Estimates vary widely, but perhaps one in ten new product concepts survivethe initial screening process From there only one in ten will make it to mar-ket The bad news continues because only one out of three new products onsupermarket shelves survives more than twelve months

At the very start, getting key people in an organization to understandwhat a project is about, and what benefits it will bring, is critical to gainingsupport for its funding It is here that being able to communicate well isvital Later on when things go wrong, and they will, being a good commu-nicator can make the difference between success and failure

EXECUTIVE NEEDS

In looking at how to communicate with an executive, or as an executive, it

is necessary to understand what information an executive needs and wants.Also remember that what an executive needs and wants are not always ex-actly the same

3

Cynics would say that an executive’s demands for information are made

to help fill in the executive’s day or to make subordinates’ lives more cult However, the answer is much simpler—executives need information tomake decisions Good decisions are what drives an organization forward.Information needs can be divided into two sections: initial and ongoing.Initial information needs focus on comprehending the project and decidingwhether to fund it Most organizations use a standard format for projectpresentation briefs Typically these comprise a project description, strategicfit with the organization’s goals, time frame, cost, and benefits The prepa-ration and presentation of such a brief is often the joint responsibility ofproduct development and marketing personnel If this is the case, then it isvital that both work closely together and that each understands and re-spects the other’s thinking

diffi-Initial Project Evaluation

The first component of the brief, the product description, needs to be clearand concise Too often product developers cannot suppress their enthusiasmfor their project enough and include far too much detail To combat this,many organizations set a limit on the length of the product description, say toone hundred words or a half a page Whether such a limit is in place or not, itpays to keep the description short for two reasons First, the longer and morecomplex the project description, the more likely it is that an assessor will tire

of it or become confused Where a number of projects are being considered atthe same time, both reactions significantly lessen the chances of the particularproject being selected Second, the more detail that is included, the higher thelikelihood that an assessor will find something to question or dislike

The second component, a strategic assessment, is sometimes neglected or,

if submitted, uses a series of stock phrases that are almost meaningless—forexample, “This will maintain the company’s preeminent position in themarket.” A realistic strategic assessment is an essential part of a projectbrief Many organizations have a standard format strategic assessment orproduct screening document Most of these list a number of key factors and

a score system for each Table 1.1 depicts a simple format for such a ment Actual factors, values chosen, and weightings given will depend onthe individual company

docu-Organization size will particularly affect the dollar values set for capitalexpenditure and estimated profits Of the other factors, technical feasibility

is the one that needs to be estimated as accurately as possible Many opment projects use well-known technology, so technical feasibility can beconfidently rated at or very near 100 percent However, when substantialscientific research and untried technology is required, the product developercan be overoptimistic and allot a higher rating than deserved This tendencyneeds to be guarded against Finally, in using a screening document, most

devel-companies will insist that, even to be considered, a project must achieve atleast a set minimum total score Table 1.1 has seven factors with a maxi-mum of three points each, giving a total of 21 points available For it, theminimum score required for a project might be 16 points.

The third component of the new product project brief, time frame, refers

to the amount of time necessary to bring the product from concept to ket Most organizations have always wanted to get products to market atthe earliest possible time This means that the pressure put on product de-velopers by management to shorten the development cycle can be extreme.Less experienced staff buckle under this pressure and accept totally unreal-istic deadlines with two possible results One is that deadlines are consis-tently missed and the product development group develops a reputation forunreliability Obviously such a reputation can shorten one’s career with acompany considerably The second possibility is that essential development

mar-T ABLE 1.1 Strategic screening document.

Corporate fit 1 (not in market)

(Company in this market or 2 (in but not dominant)

closely allied one) 3 (dominate market)

Technical feasibility 1 (50–75%)

(Estimated chance of 2 (75–90%)

successful development) 3 ( 90%)

(Degree of protection of 2 (commercial secret)

intellectual property) 3 (able to be patented)

Capital expenditure 1 ( 3.0)

3 ( 1.0)Estimated profits 1 ( 5)

($ million per year) 2 (5–50)

3 ( 50)

3 ( 5)Spin-off potential 1 (low)

(Ability to launch additional 2 (intermediate)

varieties or related products) 3 (high)

Total

steps, such as accurate estimation of shelf stability, are omitted or not fullyinvestigated Sometimes such shortcuts do not cause problems However,when they do, the problem can be a full-scale on-market disaster Projecttime frames should always be realistic One of the best guides is actual datafrom previous similar projects.

The fourth component of the project brief is cost Different organizationswill have different requirements for what costs are covered and how these arebroken down Usually individual figures are given for staff (based on timeand salary figures for each person involved), consumables (materials requiredfor the project), external costs (specialist advice, product tests, and consumerresearch), and capital expenditure (for the product development process).The final component of the project brief is benefits These should be con-crete and should expand on material summarized in the strategic assess-ment document Benefits to the organization in terms of effects oncompetitors and competitive activity are also important

Before moving to ongoing information needs, a reality check is necessary

It is a fact of life that many brilliantly documented and persuasively presentedproduct development projects never get the go-ahead There may be manyreasons for this but the following two are worthy of mention The first is thatthe executives reviewing project submissions have knowledge of specific com-pany activities which will eliminate the need for the project An example ofsuch inside knowledge would be the proposed acquisition of a rival companywith existing products in the category proposed Secondly, the evaluationgroup may be seduced by another project which promises extremely highprofits through the application of totally new high-level technology in a newmarket This latter can be a real problem for an organization which finds it-self operating outside its technical, marketing, or financial capabilities

Ongoing Information Needs

Once a product development project has been approved and is under way, itdoes not stop the need for a flow of information On the contrary, commu-nication becomes even more important The corporate executive with ulti-mate responsibility for the project must be regularly updated on at leastfour key elements These are progress against milestones, launch date via-bility, cost control, and external factors

Every project will or should have milestones, particular points at whichcertain goals have to be achieved The executive responsible for the projectwill be reassured if these are being met If the milestones are not met, thenreassurance can be given by explaining what action is being taken to ensurethat there will be no adverse impact on the project Where milestones arenot being met, the potential effect on launch date needs to be examinedcarefully If there is a possibility that this will happen, the executive incharge should be alerted immediately There are worse catastrophes for a

company than not being able to put product on supermarket shelves at thepromised time, but not many.

Keeping costs within budget is also important While minor overruns can

be tolerated, substantial overspending needs to be highlighted Reasons forthis overspending, plus corrective action being undertaken, need to be spelledout External factors such as increases in material prices which impinge on aproduct’s market viability need to be identified and communicated

EXECUTIVE WANTS

We have now identified what should be communicated at the project tion and ongoing development stages However, before looking at the muchharder process, communicating effectively, executive wants should be con-sidered As stated earlier, executive wants can be different from executiveneeds Understanding this difference is part of the process of being able tocommunicate effectively

selec-The cynic’s view is that executives only want to know what will keepthem in their jobs While the need for self-protection is part of the makeup

of most sensible people, it is one of many possible wants There are fourother things which are important in understanding and identifying an exec-utive’s wants: the background of the executive, the company, the nature ofthe project itself, and the culture to which the executive belongs

An executive with a strong scientific or engineering background willoften want to explore the technical aspects of a project Consequently, such

a person will want detailed information on this aspect, but such tion is unlikely to be of interest to someone with a marketing background.For some companies specific issues can be of much greater significance thanthose same issues are to other companies One such sensitive issue might bethe use of ingredients derived from gene technology The nature of the proj-ect can also dictate what needs to be communicated Consider, as an exam-ple, a project to develop an appropriate flavor-masking system for apharmaceutical compound to treat a specific medical condition The timeframe for such a project could be lengthy because of the preparatory worknecessary Such work could involve initial flavor combination trials using amodel system (pharmaceutical compounds are often intensely bitter) to represent the active compound rather than the active compound itself Alsonecessary would be confirming that there was no chemical interaction between likely flavor combinations and any of the active and excipient materials present in the medication It always pays to explain anything out-side the norm in a product development project

informa-Organizations are becoming much more global in their operations due toacquisitions, mergers, and expanding export sales efforts Adding to this is theincreasing tendency to search internationally for the best persons to fill seniorpositions and to post people to foreign countries People take their culture

with them and, to be able to communicate effectively, a product developermust try to understand what effect a different cultural background has on anexecutive or staff member’s wants Here are some examples of what differ-ences can be encountered when people from differing cultures interact.Time frame expectations are often different In many countries the prod-uct development cycle is viewed as something which must be as short aspossible In other countries traditional organizations measure project timeframes in years rather than months Executives in such organizations can beuncomfortable with both short development time frames and the peoplewho present them.

Another cultural hang-up can be the difficulty some executives find inasking for more information as this would be seen to demonstrate a lack ofunderstanding One of the ways to handle this is to provide all available information initially Yet another problem can be in dealing with staff whoseem to lack initiative In some cultures it is seen as disrespectful to act inadvance of instructions from a superior

HOW TO COMMUNICATE WELL

Communicating well is not something that is only the gift of the few It issomething that can be achieved through understanding what needs to becommunicated and what results need to be achieved from the communica-tion This must be coupled with a study of who is being communicated withand under what circumstances

pur-It is important that the message be clear to all One way to go wrong is toinclude masses of supporting data For example, in one organization the Op-erations Research Group was renowned for the size and complexity of its re-ports The work was of high quality but much of it was never acted onbecause senior executives were not prepared to wade through the detail toclarify what was being proposed When it was suggested to the person incharge of Operations Research that shorter, clearer reports would be of morevalue, the response was that all senior executives should undertake advancedcourses in statistics so that they could understand what was being presented.The outcome of this was that the Operations Research Group was dis-

banded and its functions folded back into the main research and ment department The lesson from this is that large documents are less likely

develop-to be considered because executives will not take the time develop-to read them

In summary, messages should be clear, concise, conform to organizationalrequirements, and explain the reasons for any deviations from the norm Additionally, they should clearly focus on what is wanted For a projectbrief, the object is clearly to gain approval of and funding for the project Forprogress reports where things are going well, the focus is only to reassuremanagement that things are on track Other communications—for example, advising of delays—may have a different purpose, usually to alert

an executive to the problem and recommend appropriate corrective action

The Audience

If the audience is one person, such as one’s immediate superior, good communication is easier because it is one-on-one In such a situation, it is important to study your superior and determine the preferred form of com-munication Some people like frequent, informal verbal communication;others want written documents Still others want visual communicationsuch as bullet-point summaries or charts presented as overhead transparen-cies Knowing how people like to be communicated with is the key to effectivecommunication; however, one caution needs to be given When verbal com-munication is the preferred method, it is always wise to back this up with amemorandum, e-mail, or fax which confirms the gist of what was said sothere can be no uncertainty later on

As stated previously, an executive’s needs and wants must be taken intoaccount and, again, cultural background can influence this The followingexample will demonstrate the need for anticipation A new, asepticallypacked beverage product was being developed for an overseas client, andthe draft package label was submitted for approval Because the productwas vitamin-enriched and going to a tropical country, the product develop-ment team thought it prudent to place a general caution against tempera-ture abuse on the pack The statement selected was along the lines of “Donot store for extended periods above 30°C (86°F).” This statement provoked a strong reaction from the client who wanted to know how longwas an “extended period,” what exactly went wrong if the product wasstored beyond this period, what happened if the storage temperature wasgreater than 30°C, and what was the effect on the product for shorter, high-temperature storage periods The client was informed that the statementwas purely precautionary and that the only likely effect was the partial loss

of some of the vitamins The client, of course, then wanted to know whichvitamins were degraded and what was the amount of the loss The reply tothis was to identify those vitamins sensitive to heat and to cite literature ref-erences indicating the probable degree of loss in liquid systems The client

replied that this was not acceptable as it was not product-specific The outcome of this was that special studies on vitamin loss had to be run andthe cautionary statement reworded to keep the business Besides the expense this entailed, the launch date had to be deferred.

Communicating effectively with a number of people and gaining theirsupport is more difficult Again, if possible, try to learn about each individ-ual’s background and use this to decide on the most appropriate form ofcommunication to the group overall Prior study will also be helpful in anticipating what each individual’s specific concerns and questions arelikely to be so these can be prepared for

Three other situations should be considered at any meeting: avoiding ting sidetracked, coping with questions which are not able to be answered

get-at the meeting, and providing backup or specialized documentget-ation forthose who want it

The first situation, avoiding being sidetracked, needs a cautious approach It is important to be sure that it is a sidetrack and that the issueraised is only of interest to one or, at most, two people, neither of whom isthe senior executive present If this is the case, then a tactful response such

as, “That is an important but complex issue Could I go through it with youdirectly after the meeting?” often works

If the answer to a question raised at a meeting is not known at the time,then it is far better to admit this and arrange to provide the answer by a settime in the immediate future Trying to bluff can be fatal

The easiest way to cope with requests for specialized information, such

as detailed specifications for proposed capital equipment, is to bringenough copies for everybody to the meeting When one person makes therequest, it can be instantly responded to and the rest of the meeting partici-pants can be offered copies at the same time Alternatively, it can be helpful

to one’s cause if a copy of any specialized information is provided to one who will be attending and who is known to have an interest in thatarea This can be sent out a week before the meeting under cover of an informal note such as “I thought you might be interested in looking over thekind of equipment that will needed for the project.” It is at the meetingsthat someone will raise a question, so it looks (and is) good if a senior exec-utive jumps in and says that they personally have looked over the aspectthat is being questioned and are very satisfied with the approach

some-MONITORING AND TERMINATING PROJECTS

Getting a project approved is important, but delivering the goods is mount Sometimes things just don’t work out, and a project has to be ter-minated Understanding what and how to monitor is necessary to providetimely, accurate progress reports and special alerts Knowing when and how

para-to terminate a product development project is essential

Project Monitoring

There are five essential elements in monitoring project progress These aredeveloping and applying measurable goals, assessing progress at regular intervals, closely tracking expenditure, keeping a sharp eye on outside suppliers, and being alert to the potential impact of external developments.The real progress of any project can only be measured against specificgoals or milestones It is important that these be set with the full knowledgeand agreement of all involved personnel

Project progress must be assessed at predetermined, regular intervals.Often the period assessments are shortened as the completion date is approached One common way is at intervals of every two weeks for thefirst two-thirds of the project and from then on at weekly intervals If this isnot done, then things can go seriously wrong In one extreme case, a jointgovernment-industry horticultural project was set up with investment overthree years of the order of five million dollars, but when the official dead-line for project completion passed, it first appeared that nothing of valuehad come from the project and that at least one key condition for fundinghad not been met An investigation showed that the key condition had beenvaried for very sensible reasons and that, in fact, the project aims had beenmore than satisfied The prime reason for the confusion was that the projectsteering committee had met only once, at the start of the project, and thatnone of the proposed review meetings scheduled for every three months hadtaken place

Too many projects run over budget and this is mostly because either theinitial budget for the project was set too low (to improve its chances of approval) or not enough control was kept over expenditure It is vital to review project expenses frequently and ensure that such a review covers notonly payments to suppliers but purchase orders raised with them

Outside suppliers can be a particular problem and need to closelywatched It is important that they understand that they should set realistictime frames for delivery of goods and services and that they immediatelyadvise of any possible delays

External developments not only can affect a project’s time frame but alsocan derail the project completely Developments to be alert for include com-petitor activity, regulatory change, and emerging issues Regulatory issuessuch as changes in labeling regulations or import access conditions crop upregularly Issues such as the occurrence of BSE (Bovine Spongiform En-cephalopathy) can make projects totally inviable

Five rules for keeping projects on track and within budget are as follows:

• Don’t allow late reporting

• Don’t allow underreporting

• Control expenditure

Terminating a project can be very hard because people get emotionallytied to their projects and closure affects them deeply However, the conse-quences of not terminating a project can be even more severe One case wasthe development of a new baked product The product concept was excel-lent, but developing the manufacturing process proved to be far more diffi-cult than was first thought The development team refused to give in and ran

in excess of two hundred factory trials before senior management terminatedthe project Each factory trial cost approximately ten thousand dollars, soexpenditure in this area alone was of the order of two million dollars Thiswas much more than the profit the product would have returned in its fast-changing market Further, the time taken up by the project could have beenmuch more usefully employed on projects with a greater chance of success

If a project should be terminated, then it is much better to do it earlierrather than later Staff need to be given reasons for the termination andshould be told in an empathetic way It is also vital to learn from the reasonsfor termination and to share that learning so any mistakes are not repeated

organiza-• People’s needs and wants are known and satisfied

• The forms of communication take into account the backgrounds ofthose being communicated with

• Reporting is regular and accurate

• Bad news is communicated promptly with the appropriate tive action spelled out

correc-Focusing on the Participants:

When and How to Involve Them

ef-When and how to involve the members of the team, as well as who thosemembers should be or represent, will be the subject of this chapter

PRINCIPLE

Any food product development program and process should be an element

of the marketing strategies of the company These programs have to fit the

organization’s goals and objectives This concept becomes elusive if andwhen the product development effort is driven by one ideal and not a groupeffort A single individual or group within an organization can very easilyfocus the efforts in a misguided direction if that individual works in isola-tion from the organization and its goals

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As stated before, the initial step in product development is generating theidea, or product concept, which will be the basis for the product develop-ment effort In this case, the first objective to verify:

Is our product concept or idea, prototype, or even a competitor’s uct—if being considered—in accordance with the corporate goals and objectives?

prod-Normally the easiest way of verifying that the concept falls within thecorporate objectives is confirming what those goals and objectives are This

is easier said than done Experience indicates that many corporations, cially those of medium and small size, do not have clearly expressed goalsand objectives This is true particularly in the areas of product develop-ment It is very simple to find a product that fits in a category, which in cer-tain ways is similar to those the corporation covers, and thus, in the minds

espe-of some employees, within the company’s objectives How many times have

we read that the objective of the company is “Consumer Satisfaction”? Thisdoes not express or even imply with what kind of products or services thecustomer should be satisfied

After the company’s goals and objectives have been agreed upon, ically in the area of products or services, the product development effortcan start As mentioned earlier, this step is not easy and not the scope ofthis chapter, but it is mentioned as a reminder of a basic principle that has

specif-to be defined specif-to improve the success rate of any food product developmentprogram

COMPLYING WITH CORPORATE GOALS AND OBJECTIVES

The following questions require answers:

• Are we developing in a vacuum?

• Are we following the corporate portfolio?

• Do we have upper management support?

• Do product objectives mesh with others—individuals, departments,and divisions—in the organization?

• Is there internal competition for resources, time, and attention?

• Do we have the product development resources to give an adequatelevel of effort to the process?

With these and other questions, which can be personalized for each pany or corporation, a decision tree can be constructed This usually takesplace in the initial steps of the process In those organizations where themarketing function and the development function (in any shape or form)exist, this decision tree is defined by their mutual efforts In many instances,

com-input from other company areas is needed; for example, the financial groupshould answer monetary resource questions At this point the team core hasbeen defined and the team is on its way.

Analyzing consumers is our second objective and major concern Wehave to understand how the product idea or concept fits with them:

• Are we creating a need?

• Are we fulfilling a need?

These two questions are important because the product development gram is defined by the answer The answers to these questions are dealt with

pro-in other chapters of this book

The product definition comes next as it is analyzed by the screening effort

of the product within the development process, other members of thesefunctions, those more intimately associated with the operative steps, are re-quired to contribute For example, when production facilities to be used formanufacturing the new product are being discussed, the managers of any orall plants should be involved

MANUFACTURING AND PACKAGING

These are the questions that have to be answered:

• Can we produce in existing installations?

• Will we need new facilities?

• What are the capital needs?

(In answering this question, it is important to look at the overallcorporate considerations and needs Is the possible capital expenditureneeded for this new project in keeping with the corporate prioritiesand, therefore, financial capabilities?)

• Do we have to invent the manufacturing process? (If so, what does

this mean in time, effort, and use of the resources?)

• Is “our product” competing with other corporate projects/newproducts?

• Are the required raw and packaging materials available?

• Are other operational and operative considerations peculiar to theproject available?

COSTS AND PRICING

Costs and pricing are paramount in the competitive effort A proper tion and up-to-date cost and availability of the following items (and possi-bly others) are needed for the decision making process:

defini-• Raw and packaging materials

• Are we confident of our costs?

• Can we correctly price our product?

• Is the pricing competitive?

• Does the product have a pricing competitive edge?

Team members with specialized experience and knowledge should now

be the principal individuals responsible for obtaining the information andresponding to the questions

Marketing needs to answer the following questions:

Current status—How advanced are the marketing plans and how

ac-curate is their information?

Market size—Who, when, and where are we targeting? (Do we know

the demographics and location of our targets?)

Lifestyles—Does our product fit?

Growth rate—What is it? (The future market size depends on this.) Market share objectives reality check—Are we too optimistic? (Verify

using as many different parameters as possible.)

Volume—Can we handle it? (Has the team received the assurance

from an operative at plant level? Go to the source; do not dependonly on the VP.)

Competitors—What can we expect? (What will be their reaction?

What are their strengths and weaknesses?)

Planning—Have we planned advertising, promotion, and branding? Testing—Is the testing done, do we have reliable results that can be

confirmed by other means? If so, how do they stand up?

Investment—Is the investment sound? (Is the corporation interested

and willing to capitalize the project?)

Distribution—Should we go with our own or contract with a third

Rollout schedule—How realistic is it? Is the team happy and

confi-dent with it?

Store allocations/shelving costs—Have they been considered? Are

they reasonable and can the corporation live with them? Do theyallow us to be competitive and expect reasonable returns?

The development team is now a complete unit, an entity that is the ent of a new product As we know, very often wishful thinking and other

par-expectations blind the reality of a position or a judgment

PRODUCT DEFINITION

The product is now defined by the following:

• Consumer requirements

• Operational needs

• Product delivery requirements

• Uses and impact on the environment

• Service and maintenance requirements

• Business objectives such as cost targets and competitive analysis

• Manufacturing constraints and available or new installations

• Distribution system and needs

• Sales, advertising, and promotional support

• Government controls (such as product safety, regulatory issues, andnutritional labeling)

• Package tamper-resistance evidence

• Generally recognized as safe (GRAS) ingredients

EXTERNAL EVALUATION

It is time for an external authority, somebody outside the team, to assess andevaluate the decisions made by the team This is a valuable way of checkingwhat the team believes to be the most critical characteristics, conditions, orissues of the project If the project is sound, then the auditor will confirm theteam’s evaluation and demonstrate that decisions were appropriate

SUMMARY

This chapter has shown that the food product development process is a tematic integration of many diverse disciplines

sys-We have learned that to be successful, the project requires:

• Appropriate organization and top management support

• Use of a disciplined development process

• A team that is willing to outsource and partner

• Activities that flow from business units

• Market opportunities fitting with core strategies

We have also learned that to understand the internal and external petitive environment, we need to:

com-• Know the consumers, their needs and wants

• Keep the process in line with a variety of ideas

• Have a clear and focused product definition, from the beginning

• Have a superior and differentiated product and package

• Make use of research to assess and confirm consumer reactions

• Align manufacturing and retailing, focusing on the consumer

• Execute the product launch well

• Adapt, grow, and improve as market and competitive conditionsevolve

• Listen to feedback

The only way for a product development process to be successful is tobuild and work with the team that has been associated with the projectfrom the beginning While recognition should be given to whoever had theoriginal concept, it is the multifunctional team that attains success

Managing the Product

techni-Two causes of inefficiency in conducting development projects are plicity of work and constant iteration—recycling of project activities Well-documented and recognized assignments and frequent reporting canprevent duplicity Communication, by use of Gantt or PERT charts, is veryhelpful in dealing with both problems The charts show the timetable foreach project activity, when the activity should be complete, and who is re-sponsible for the activity

du-Some iteration is always necessary but should be reduced to a minimum

It is particularly costly, for example, if the iteration calls for going back to

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the laboratory to conduct additional tests after reaching the plant ment stage This often occurs because there was no thought as to whatprocess and/or equipment would be required beyond the laboratory stage.The way to avoid this problem is to envisage the commercial plant process,almost from the start of the project In fact, many companies develop theproduct and process at the same time to add product attributes only avail-able by using certain equipment An example is the production of a poundcake The very fine gas bubbles that characterize a high-quality pound cakeare best generated in a plant-scale Oakes-type beater.

develop-This chapter will discuss how a new product is developed using the stage development ladder, what Gantt and PERT charts are, how to preparethese charts using available computer software, and what the advantages/disadvantages of each are to product development An example will illustratehow a new process was developed by effectively going through the completedevelopment process This example was accomplished by a small technicalteam in a relatively short time and with a minimum investment

three-PRODUCT DEVELOPMENT LADDER

As the product idea works its way from concept to the marketplace, it goesthrough three development stages (sometimes four) These are as follows:

Using appropriate instrumentation, establish plant design, cost data,and control strategy

Commercial Plant

These are built based on pilot plant data and turned over to the ations department after appropriate personnel training