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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

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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)

This book contains information obtained from authentic and highly regarded sources Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained If any copyright material has not been acknowledged please write and let us know so we may rectify in any

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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 a 2 The New Product Development Team: Company Organization

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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

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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

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