Practical 10
Practical 10
DEVELOPMENT
Structure
10.1 Introduction
10.2 What is Product Development?
10.3 Product Life Cycle
10.4 Factors Affecting Development of a New Product
10.5 The Process of Development
10.6 Future Trends
Activity 1: Conduct the Market Research for Various New Products Available
Activity 2: Development of a New Product
10.1 INTRODUCTION
Unit 14 in the theory course (MFN-008) covered the important area of product
development and evaluation. We studied why it is important to develop new products
and also about the concept of functional foods in this unit. A detailed discussion on
the ingredients providing health benefits and their use in speciality foods was also
presented. Geared with this knowledge now we hope you are ready for developing a
new product on your own. That is what the focus of this practical is. You will find
some basic information related to new product development also included in this
practical which will actually get you started with this interesting activity of new
product development.
Objectives
After conducting the various activities included in this practical, you will be able to:
• enlist the various new products available in the market,
• identify the ingredients and the novel techniques involved in new product
development,
• discuss the packaging and labeling requirements of different products,
• explore new ideas and concept of development of a process,
• determine the factors affecting the process of development, and
• explain the concept of shelf life of food products.
6) Demand for specific foods – food targeted towards specific demographic groups
such as diabetic foods, reduced fat and fat-free items and foods for specific health
requirements.
Ideally a new product is defined as “development and introduction of a product not
previously manufactured by a company into a market place or presentation of an old
product into a new market not previously explored by a company”.
The development of a product can be in terms of:
1) Line extension
2) Repositioning of existing product
3) Reformulation of existing product
4) New packaging of an old product
5) Innovative or creative products
Let us learn about the product life cycle next.
Maturity
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Production
Let us review these phases in the product life cycle one by one.
1) Introduction phase
The introduction phase, as is evident in Figure 10.1, marks the launch of the product
in the market.
2) Growth phase
Once the product crosses the introduction phase, it enters the growth phase.
Generally, about 95% of the products fail at the introduction phase. Thus, a mere 5%
are able to enter the growth phase. The growth phase involves strategy of product
modification, enlarging distribution and maintaining a competitive price level. The
strategy also involves one of extending product to different use situations and
considering newer packaging alternatives to attract more and more new customers.
3) Maturity phase
Maturity phase is characterized by slowing of growth of sales and profits, as depicted
in the Figure 10.1. It also sees a boom in the market demand as more and more
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Principles of Food customers are now willing to accept the product. This phase is also marked by strong
Science competition.
4) Decline phase
Decline phase, as is evident from Figure 10.1, is the phase when sales decline
because customer preferences have changed in favour of more efficient and better
products. Customer’s value perception of the product also undergoes a change. It
leads to the gradual withdrawal of the product from the market.
So we start with the introduction phase and the product moves through the whole
cycle to reach the decline phase. Next, what are the factors, which affect the
development of a new product? Look up sub-section 14.2.1 in Unit 14 in the theory
booklet for information on these factors. We have also highlighted these factors here
in the next section.
IDEA GENERATION
IDEA SRCEENING
FEASIBILITY ANALYSIS
PRODUCT DEVELOPMENT
MARKET TESTING
1) Idea Generation
The process of new product development starts with the search for new ideas. The
common sources of new product ideas being:
• Customer expectation
• Estimating market demand through market research
• Competitors
• Research journals and magazines
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Principles of Food • Seminars and conferences
Science
• Research and development scientists
• Media
• Top management
Idea generation is a stage characterized by creativity. It not only involves getting the
product idea but also the concept development and product image should be
hypothesized.
After the idea is generated, we move on to the idea screening process. Let us see
what this process involves.
2) Idea Screening
Idea screening involves the acceptance of formulation of the idea by doing cause and
effect analysis. This stage usually identifies the success and failure factors in
different product ideas. It requires strong decision making and usually involves the
top authority. After the idea is screened, the concept is developed and tested.
3) Concept Development and Testing
A concept is an elaborated version of the product idea. The concepts are developed to
the extent of the new product satisfying consumer needs, the price strategy involved
for positioning of the product in the market, purchase intentions at a given price level
and so on. This exercise of concept building helps to face and understand the
situations better and is a proactive approach.
4) Market Strategy Development
Market strategy development would require the study of the markets for potential
consumers. It would also involve the study of the market for existing products and
their moving sale volume, product positioning and identifying the test markets.
Next is the feasibility analysis.
5) Feasibility Analysis
Once the product concepts have been formed, the feasibility studies are conducted.
This study involves the following:
1) Estimation of demand in the target market at different price levels.
2) Forecasting sales based on demand estimation and competitive analysis.
3) Cost benefit analysis.
4) Calculation of the break-even point and sales volume.
Once the product concept seems feasible, the firm now takes the concept to the next
stage of product development.
6) Product development
The product development involves various stages of development. The stages being:
a) Studying the ingredient characteristics
b) Technique standardization
c) Variations
d) Product standardization
e) Product development
f) Sensory evaluation/consumer acceptance
g) Product modification
h) Final product
The development of the product involves vigorous functional and consumer tests.
Functional tests are performed under laboratory and field situations to test the
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product feasibility. Consumer testing involves various sensory evaluation tests to New Product
study consumer acceptance. Development
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New Product
Development
ACTIVITY
CONDUCT THE MARKET RESEARCH FOR VARIOUS 1
NEW PRODUCTS AVAILABLE
Aim: To conduct the market research for various new products available. Date: ………….
Objectives
After undertaking this activity, you will be able to:
• recognize the various products available in the market,
• assess the consumer demand,
• identify the ingredients and the novel techniques involved in product
development,
• appreciate the packaging and labeling requirements of different products,
• acquire knowledge about the shelf life of the product, and
• categorize the products into different areas.
Market Research
Market research is an exhaustive process and serves as a guide to familiarize one
with the data collection methods, research methodology and forecasting techniques.
Market analysis covers various aspects related to market and products such as market
size, market growth, market segments, products available, product demand,
technology used, product life cycle and cost dynamics. In organizations, market
research is an integral part of the product development. Only after conducting market
research, the organizations plan their strategies for product formulation and
marketing. Market survey or research is the only way by which companies can study
consumers and their behaviour. The market research of any organization may address
the following questions:
What kind of product they are planning to put out?
Which market segment they actually target?
What is the market potential of the product or service?
Who are the competitors?
What are the market strategies of the competitors?
What are the customer expectations?
How to project new product or service more attractive for the customer by means of
value addition?
This activity has been designed with a view to give you an idea about the markets,
various products available, the brands available, consumer reactions and
expectations, the target customer, the cost factor involved, the packaging and labeling
requirements of the products.
Methodology
Conduct a survey for various products available in the markets.
Categorize the product according to:
1) Technologies involved, like frozen products, dehydrated products, products
involving high concentration of sugars or salt, canned products, thermally treated
products, products having preservatives or products with combined techniques.
2) Groups the products according to food groups, like milk and milk products,
cereals and cereal products, fruits, vegetable products, fats and oils, sugars, meat
and meat products.
3) Purpose they serve, example, ready-to-eat products, functional foods,
convenience products, ready- to- serve products, pre-processed or semi-processed
products.
4) Consumption pattern as breakfast preparations, meal preparation, snacks,
desserts, accompaniments and beverages. 163
Principles of Food After the categorization of the products, the following information should be noted:
Science
• Name of the product
• Technology involved
• List of ingredients
• Brands available
• Packaging
• Label and information on the label
• Shelf life of the product
Results and Observations
Report the information collected in the format given on page 165.
Conclusions and Inference
Number of products surveyed …………………………………………
Conclusions
(Comment on the new products available in the market)
………………………………………………………………………………………….
………………………………………………………………………………………….
………………………………………………………………………………………….
………………………………………………………………………………………….
………………………………………………………………………………………….
………………………………………………………………………………………….
……………………………..
Counsellor Signature
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New Product
Development
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Principles of Food
Science
ACTIVITY
2
DEVELOPMENT OF A NEW PRODUCT
Date: …………. Aim: To develop a new product from the given product ingredient.
Objectives
After undertaking this activity, you will be able to:
• explore new ideas for product development,
• understand the concept of development of a process,
• gain knowledge about a technique,
• determine the factors affecting the process of development,
• explain the concept of variations, and
• appreciate the packaging and labeling requirements of the product developed.
Methodology
The process of development of the product in laboratory would involve:
1) Study of the ingredient characteristics
2) Idea generation
3) Feasibility
4) Technique standardization
5) Variations
6) Product standardization
7) Product development
8) Sensory evaluation
9) Product modification
10) Final product
11) Label design and Packaging
Important considerations for the process of development
The process of development would involve exploration of various ideas for example,
if the product ingredient provided is Soya, one need to study the product
characteristics first like it being a rich source of proteins and fat. And also that as it is
having low moisture content it can be ground, or made in powdered form.
Thus, the product ideas can be of types:
Soya powder, or paste used in the formation of: Soya flakes
Soya papad
Soya biscuits
Soya granules can be used for: Namkeen preparation
Or any other snack preparation (can be
used as filling or in the base product)
Soya milk can be extracted and products such as shrikhand, sweets, paneer, butter
can be prepared.
However, it should be kept in mind that the given ingredient should be the basic or
major ingredient in any product formulation.
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One should also see the kind of infrastructure available in the laboratory and use the New Product
techniques which can be easily standardized for example, if it is not possible to carry Development
out the controlled fermentation process one should avoid doing so.
While doing variations in the product formulation, only one variation should be done
at one time so as to attribute the results to a single factor. For example, if you are
adding soya flour and channa flour to wheat flour at the same time, the resulting
hardness or softness of the dough prepared could be because of any of these. Thus, to
know the property of each you have to add one at a time and that to in different
proportions.
Standardization of a method can be achieved by the use of standard weights and
volume of ingredients. These standards for weights and volumes of different
ingredients and dishes can be established by use of scales, slicing machines,
measuring equipment, standard spoons, scoops and ladles designed to hold a
measured amount of weight or volume of the food.
Sensory evaluation should be conducted at each stage of development so as to assess
the acceptance of the product on the basis of appearance, taste, texture, consistency
or viscosity, mouthfeel etc. Various tests for sensory evaluation can be made use of.
These tests have already been described in Practical 6. Look them up once again.
Packaging and labeling: The final product should be properly packed and labeled
and then only the assessment of shelf life should be carried out. The packaging of the
product should be based on the product characteristics and the availability of the
packaging material. Also, the study of packaging material of the similar products
available in the market as carried out in activity 1 of this practical can be made use of
for designing of the packet.
Label for the product should be carefully designed and should hold the following
information:
1) Name of the product
2) Product ingredients in the right order
3) Vegetarian/non vegetarian mark
4) Total weight of the product
5) Nutritional information
6) Any specific use of the product
7) Product catering to any specific group of people
8) Observed shelf life
9) Storage conditions required
10) Directions for use, if any
11) Cost of the product
Product cost: Cost of the product would include:
1) Ingredient cost/food cost.
2) Cost of process like any blanching done, dehydration etc.
3) Labour cost generally taken as 10-15% of the food cost.
4) Overheads like any non food material used for processing, packaging and
labeling cost.
5) Profits can vary from 15-50%.
Now, keeping the important considerations highlighted above in mind, get down to
developing the new product.
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Principles of Food To help you with this, we have included one example here of how to go about
Science developing a new product. We have taken the example of “Bajra Crunchies”. Read
the process given here carefully and then in the same manner develop your new
product.
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New Product
Development
As these high fibre biscuits would
cater to a class of people who are
health conscious, thus a low-fat and a
low-sugar substitute was also tried
out.
2. Change in the amount of fat used
Weight (g)
Refined flour 15 15 15 15 The biscuits prepared When evaluated on the sensory
Bajra 20 20 20 20 with less of fat say 10 scale, it was observed that all the
g of butter were variations had a pleasant flavour but
Wheat Bran 15 15 15 15 showing cracks the 4th variation showed less brown
Butter 25 20 15 10 during the process of colour formation during the process
rolling. of baking. Even when tasted, these
Castor sugar 30 30 30 30 biscuits were very hard.
Baking powder ¼ ¼ ¼ ¼ The 3rd variation had less fat was
also liked on the sensory scale and
thus was selected for further
development.
3. Change in the proportion of sugar
used for preparation of biscuit
Here, in this ingredient variation we
not only lowered down the amount of
sugar but also added a pinch of salt to
improve the flavour and taste of sugar
Weight (g)
R. flour 15 15 15 15 The dough prepared When sensory evaluated even a
Bajra 20 20 20 20 from each variation smaller proportion of sugar say 10 g
was smooth for was giving appropriate sweetness in
Wheat bran 15 15 15 15 preparation of the high fibre biscuits. Thus this
Butter 15 15 15 15 biscuits. preparation was used for final
product prepared.
Castor sugar 30 25 15 10
Salt a pinch
Baking Powder ¼ ¼ ¼ ¼
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Principles of Food Process flow of the prepared product
Science
Ingredients used are: Maida, Bajra, Bran, Butter, Sugar, Salt and Baking Powder
The process flow chart for developing the bajra crunchies is given herewith:
BAKING
MAIDA BAJRA BRAN BUTTER SUGAR SALT
POWDER
ADD SALT
PLACE ON GREASED
BAKING TRAY FOR 30
MINUTES
Cost Calculation
Food cost = Rs. 4.03
Ingredients used and their costing:
2. Bajra 20 20 0.40
8. Milk 15 10 ml 0.15
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Cost of process like baking =15% of food cost = Rs.0.60 New Product
Development
*Labour cost (self etc.) = 20% of food cost = Rs. 0.81
Overheads cost (Packaging, space, equipment etc) = 20% of food cost
= Rs. 0.81
Profits =15% of food cost = Rs.0.60
Total cost for 75 g biscuits would be = Rs.(4.03+ 0.60+ 0.81+ 0.81+ 0.60)
= Rs. 6.85 ≈ Rs. 7.00
*Here, we have 20% labour cost as the product is involving more of the manual
work. However, in industries all the cost go down because of the machinery used
and bulk production. Thus, they have more profit margins.
Nutritive value for 75 g pack of biscuit is as follows:
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Principles of Food
Science
ACTIVITY
2
DEVELOPMENT OF NEW PRODUCT
Date: ………….
Name of the product --------------------------------------------
Process flow of the prepared product (give the flow chart of the steps involved)
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Variations carried out New Product
Development
S.No. Variations Observations Sensory evaluation/
Remarks
Technique variations
Ingredient variations
Cost calculation
Food cost =
Ingredients used:
Total cost =
Cost of process like any blanching done, dehydration etc. =
Labour cost (self etc.) =
Overheads cost (mention the items included) =
Profits =
Total cost/ …………… g =
Nutritive value of the product per …………… g
Total
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Packaging and labeling of the product New Product
Development
……………………………..
Counsellor Signature
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