Tools and techniques for more successful New Product Development (NPD)

2

Introduction

• New Product Development (NPD) is critical for any business, yet NPD can be extremely difficult and costly. 7 out of 10 products fail to live up to pre-launch expectations and the average life span of a grocery retail product (that makes it to market) is 4 years.

• Developing new products is seen by the Welsh Government as a key opportunity to grow the Welsh Horticulture sector, however, as the majority of businesses are defined as small and medium sized enterprises (SME’s), access to specialist knowledge and resource is limited, therefore, the barriers to NPD remain high.

• This project, which has been commissioned by Horticulture Wales, aims to highlight transferable processes and techniques utilised by food and drink companies to support the Welsh Horticulture sector in developing new products.

• The specific aim of the project is to:

• “produce a “toolkit for NPD” by identifying, and examining the application of an appropriate model for NPD for application in the horticulture sector in Wales. The model should identify and examine the processes involved in successful New Product Development, including relevant examples if appropriate. The report will also incorporate information and explanation of the work of the three Food Technology Centres of Wales in relation to the different stages of NPD identified“

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Introduction

• This document describes a process, tools and techniques that growers may wish to utilise when developing new products. It is meant as a practical guide to aid businesses.

• We recognise that many small businesses typically do not follow a defined process when developing new products. This can cause unnecessary cost and delay. Therefore, this document describes a four stage process for NPD from concept generation to product launch in order to provide structure and organisation to the process.

• A number of tools and techniques are identified and described. These are commonly used by product developers and their application in the NPD process serves to increase the likelihood of new products getting to market and once on the market, ensuring that they achieve business expectations.

• The list of tools and techniques are by no means exhaustive (a great deal more could have been included). Users of this document should exercise their own judgement as to which of these tools and techniques are relevant in the context of their individual circumstances.

• NPD requires the application of technical and marketing expertise and knowledge. It is unlikely that users of this document will possess all of the skills, technology and expertise required to follow this process, therefore, external support is somewhat inevitable.

• Where specialist expertise and/or equipment is required, signposting to external organisations (such as the Welsh Food Centres) is provided. A list of useful links and resources section is provided .

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Using this document

• Hyperlinks are embedded throughout this document to make it more user-friendly.

• Clicking on the home symbol in the top right of the page, returns you to the contents page.

• Clicking on the hyperlinks in the ‘tools and techniques’ boxes will take you a description of that tool/technique and how it can be applied.

• Clicking on the hyperlinks in the case studies boxes will take you to the relevant case study pages.

• Clicking on other hyperlinks will take you to external sources of information (such as food legislation).

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Contents

Background..................................................................6

NPD process overview................................................12

Tools & techniques......................................................43Case study examples..................................................78

Discover.........................14Define.............................21Develop..........................28Deliver............................38

Links / resources.........................................................95

6

Background

• In this section, we briefly outline the importance of NPD to business growth and identify some of the challenges.

• We present statistics that:

• Underpin the rationale for developing new products

• Highlight the NPD success rate

• Identify the main causes for new product failure

Redlove® apple – Fruit Logistica Innovation Award nominee, 2014

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Why NPD is important

New Product Development (NPD) describes the complete process of bringing a product to market. There is a start point, which is defined by the idea generation stage and an end point, which is defined by the launch of the product into the market.

Over 12,000 new food and drink products are launched into the UK grocery retail market every year.

The average life-span of a grocery retail product is 4-5 years and incremental sales growth comes from new products, not existing ones.

2009 2010 2011 2012 20130

10

20

30

40

50

60

Innovation

Renovation

Discontinued

Core

Branded Grocery Sales (UK) £ billion

Source: Kantar

8

Growth pathways

More money from each customer

Mo

re c

usto

mer

s

Loyalty & spend

New customers

New products & services

1

2

3

Today’s business

Businesses typically grow by attracting new customers or increasing customer spend.

Developing new products and services is an effective way to achieve both.

New products can attract new customers and they can encourage existing customers to spend more (new products typically carry a price premium).

NPD is especially important in mature markets like the UK where growth opportunities are constrained by slow population growth, stable volumes of food consumption and a high degree of loyalty to manufacturer and retail brands.

Growth matrix

9

Consumers like choice, don’t they?

Numerous studies have shown that the consumer does not want any more choice.

An average supermarket will sell approximately 30,000 SKU’s (stock keeping units). But, over the course of a year consumers will, on average, only purchase approximately 300. That represents a purchase of just 1% of all the products available to consumers in store.

Overwhelming consumers with a vast array of complex choices leads to confusion. If consumers are confused they are less likely to try new products. This makes the challenge of new products succeeding even more challenging.

Number that consumers want to

buy...

Out of...SKU’s1

1 Mushrooms 221 Fresh herbs 391 Apples 321 Potatoes 391 Salad dressing 57

Source: www.sainsburys.co.uk

10

Better NPD, not more NPD

25

19

24

7

25 Died in Year 1

Died in Year 2

Dying (<80% of Y1 Sales in Y2)

Surviving (80-100% of Y1 sales in Y2)

Thriving (growing in Y2)

Product success rates (% of food and drink products still selling, based on a sample of 3,877 products)

NPD strategies that launch a vast array of new product variations into the market in the hope that one or two are successful, are cost-ineffective and, in the long run, create consumer confusion (especially for branded products). This is ultimately to blame for the high rate of failure for new product launches.

Evidence suggests that as many as 7 out of 10 new products fail to meet pre-launch expectations. Given the investment in time and resource dedicated to developing new products, it’s a worrying statistic. This is partly due to overly ambitious expectations (i.e. inflated sales forecasts) and partly due to poor product performance.

Market research firm Kantar, tracked sales of 3,877 new food and drink product launches over a two-year time period. They found only one-third of new product launches were ‘surviving’ (i.e. achieving 80-100% of Year 1 sales in Year 2) or ‘thriving’ (i.e. showing sales growth in Year 2).

Source: Kantar

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Main causes of new product failure

Inadequate market analysis

Ineffective marketing

Higher costs than anticipated

Competitive strength or reaction

Poor launch timing

Technical problems

0 5 10 15 20 25 30 35 40 45 50

44

25

18

17

14

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Main causes of new product failure (%)The main causes of new product failure were attributed to inadequate market analysis (pre-launch) and in-effective marketing (during and post-launch).

Relatively few product failures were attributed to technical problems (as these tend to be ironed out pre-launch) and poor timing.

This analysis clearly highlights the importance in getting the market analysis right (i.e. having a thorough understanding of the need/benefit that the product meets and of the competitive landscape into which the product will be launched).

Source: Kantar

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A process for new product development

• In this section we describe a four stage process of NPD from concept generation to product launch.

• We provide a detailed explanation of each of the four stages, explaining what each stage will help you to achieve.

• We identify a number of tools and techniques that can be applied at this stage of the NPD process and provide links to further information sources.

• We also provide links to case studies that highlight relevant points.

ZEO Drinks – Fruit Logistica Innovation Award nominee, 2014

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Four stages of new product development

DiscoverGenerate innovation idea(s)

DefineProduct concept & specification

DevelopProduct development &

testing

DeliverProduct launch

There are many different processes that companies use to develop new products. Most are based on the concept of a funnel or ‘stage gate’ system.

This model is based on four distinct stages, all of which aim to guide you through the NPD process from idea development through to product launch.

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Discover

The purpose of the Discover stage is to develop credible new product ideas and concepts. This is fundamental because it will justify why consumers will need or want to buy your product.

Many business start the NPD process with idea generation. This is most likely to result in taking a product that is already on the market and adding a twist. These products are most likely to fail (if they ever reach the market).

It is far more effective to start the process by identifying and understanding a specific problem or need that someone has. This is the starting point for the Discover stage, as described below.

Key steps in the Discover Stage

Understand needs & generate insight

• What needs/wants do consumers have?

Market analysis

• Which products (if any) are already on the market and meet these needs/wants? What are their strengths and weaknesses?

Evaluate current product portfolio

• Do we need to adapt existing products or develop new ones?

Develop & evaluate ideas

• How can we design and develop better products to meet consumer needs/wants?

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Understand needs & generate insight

Lasting innovation comes from understanding consumer needs and gaining insight. Insight is an in-depth understanding of a particular need or problem that a consumer might have, for example:

- How do I get my children to eat vegetables?- I always have left-over bunches of herbs in the fridge that get thrown away- In a non-food example, I find vacuuming the stairs really difficult

Quite often, once consumer needs are understood, possible solutions might seem clearer. For example, fun vegetable snack products for kids, clearer plant maintenance instructions, re-sealable tubes of herb pastes, an extendable stair attachment for a vacuum cleaner.

A good understanding of the market place is also required. Critically, are there products on the market place that already help consumers to meet this need? If so, is my product better and why would someone choose it over one that’s already on the market. If not, is there a good reason why? Others may have tried and failed, so learn from their mistakes. You might be first-to-market, in which case, you could be in an enviable position.

Tools & techniques for generating insight

1. Market segmentation...define and understand your target market. Click here to read more

2. Focus Groups...in-depth exploration of needs and motivations. Click here to read more

3. Empathy Map...see the world through the eyes of your target market. Click here to read more

Case studiesHeinz Fridge PackDysonMcCain’s Oven Ready Jackets

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Market AnalysisInadequate market analysis is the single biggest cause of new product failure. It therefore stands to reason that if you want your product to succeed, you need to build an in-depth understanding of the market.

- How is it (i.e. the market) defined? - How big is it?- Where is it?- Is it growing?- Who are the competitors?- Which products are performing well and which are not?- What trends are impacting the market?- What might the market look like in 3-5 years time?- Where are the ‘gaps’ in the market?- What are the opportunities and how can we use our

strengths to develop them?

This can help to inform the creative process. For example, if there is a noticeable trend towards products that have convenience benefits that can provide some direction to your thinking about the benefits your product should deliver. It will also help you to evaluate the sales potential for your new product, understand price points, evaluate competitor strengths and weaknesses and identify a route-to-market.

Tools & techniques for market analysis

1. Market analysis...define and measure your target market. Click here to read more

2. Category analysis...identify who the competitors are and spot major trend drivers. Click here to read more

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Evaluate current product portfolio – revolution or evolution?

Do you need to develop entirely new products or do you need to adapt and modify existing products? Revolution or evolution?

Not all NPD has to be the development of a completely new product concept. Indeed, the majority of NPD is an adaptation/modification of a product that already exists. For example, introducing a new packaging format, adding a new flavour variant, a recipe reformulation and so on.

It can be useful to evaluate your current product portfolio before developing new product ideas. Doing this will help you to understand whether a minor change to an existing product or the development of an entirely new product is required. There are pros and cons to both approaches:

• Minor adaptations are generally quicker and more cost-effective to implement but their impact on the market is relatively modest (i.e. lower risk, lower reward)

• New product innovations are higher risk, more costly to develop and there are more uncertainties; however, they also have the potential to have a bigger impact on the market (i.e. higher risk, higher reward)

Tools & techniques for portfolio analysis

1. BCG Matrix...evaluate your current product range. Click here to read more

2. Ansoff Matrix...understand strategic options. Click here to read more

Case studiesTwiningsGlenfiddichBecel pro-activ£10 Meal Deal

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Develop & evaluate ideas

Now is the time for idea generation. It is important to immerse yourself and others in the process and use the information you have gathered from consumer insight, market analysis and review of available technologies to spark ideas. Using this information will help to make sure that the ideas you generate are grounded; for example

- it meets a particular consumer need- it takes advantage of a particular market opportunity- it doesn’t replicate a product that is already on the market- it takes advantage of technological change

Most idea generation takes place in the form of a workshop and is facilitated by the person in charge of developing new products. The people attending the workshop are usually briefed with the information gathered so far, in advance of the workshop, so that they can focus on being creative.

However, there has also been an increased trend towards food companies looking for ideas from outside the organisation. It’s an approach that is called ‘Open Innovation’ because it describes a process by which the company is ‘open’ to ideas from people external to the company, such as suppliers or customers.

Tools & techniques for idea development and evaluation

1. Idea development workshop....How to structure a workshop. Click here to read more

2. Co-creation & crowd sourcing....Use other peoples ideas and creativity. Click here to read more

3. Kano Model...Identify winning product attributes. Click here to read more

4. Storytelling...envisage how and why consumers might buy your product. Click here to read more

Case studiesNescafe AustraliaColdpress

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Protection of intellectual property and confidentiality

It is worth protecting your Intellectual Property (IP) early on in the NPD process. According to the Intellectual Property Office:

“Intellectual Property (IP) results from the expression of an idea. So IP might be a brand, an invention, a design, a song or another intellectual creation. IP can be owned, bought and sold.”

There are four main types of IP rights that can be used to protect your ideas, for example:

• Patents: Patents protect the features and processes that make things work. This lets inventors profit from their inventions.• Designs: Design is all about the way an object looks: its shape, its visual appeal...it's all in the design.• Trademarks: Trademarks are signs (like words and logos) that distinguish goods and services in the marketplace.• Copyright: Copyright is an automatic right which applies when the work is fixed, that is written or recorded in some way.

For further information on how to protect IP go to the Intellectual Property Office website

It is also worth considering the use of Confidentiality Agreements (legally binding agreements for the non-disclosure of sensitive commercial information). This is particularly relevant when testing your new product concept and is applicable to consumers and businesses.

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Discover stage check list

Before proceeding to the next stage, check that you have:

1. Identified a specific need or problem that your new product idea addresses......................................

2. Analysed the market, identifying:- which products are already on the market..................................................................................- who the main competitors are (and are aware of their strengths and weaknesses).................- key trends and how they are influencing the market/consumers...............................................

3. Developed an idea(s) for a new product...............................................................................................

4. Have considered protecting your intellectual property and/or use confidentiality agreements..........

5. Evaluated your idea(s) for a new product and are confident that further development is justified......

If you are confident that you have achieved the above, proceed to the next stage. If not, go back and complete the objectives before moving on.

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Define

The purpose of the Define stage is to test the feasibility of developing your product idea/concept further.

Applying practical criteria to your idea(s) will help to provide an early indication of how feasible the product is to develop and to spot any potential development problems early, thus making the process time and cost efficient. Typical considerations at this stage might include:

- Does the candidate product fit with our brand and product portfolio?- Does the concept appeal to consumers?- Does the product fit in the market place?- Can we produce the product to meet customer specifications?- Can we produce the product to generate acceptable margin returns to the business?- Can we make the product? Do we need additional resources such as skills, knowledge, equipment?- Are there any legal, safety implications that we need to consider?

Concept testProduct specification design

Feasibility assessment

Legal and safety sense check

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Product specification design

Describing and visualizing your idea can be an extremely powerful way to define the specifications of your product idea. This can help turn concepts into something that is more tangible and easier to communicate to internal and external stakeholders. This can be achieved by developing a product description, which might include the following:

 - Brand, product name- Ingredients - Flavours- Pack size, format, materials- Visuals (e.g. logos, typography, colour schemes, images)- Target price point- Target market- Consumption occasion (e.g. out-of-home, dessert, snack etc)- Product proposition (e.g. indulgence, health, convenience)

A product design template can be found by clicking here

You might also want to create a Concept Board as visual stimuli canbe a powerful way to communicate your ideas effectively – see exampleopposite.

Source: www.finedesign.ltd.uk

Concept Board Example

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Concept testing & developmentOne of the critical components of NPD is to test the concept with consumers. Testing your new product concept early on can help to identify weaknesses that can be fixed pre-launch and identify strengths that would enhance the success of the product.

Most concept testing is done with a combination of qualitative research (e.g. using focus groups) and quantitative research (e.g. using questionnaires and surveys) . These are valid techniques and have been used extensively by all types of businesses. Tips to improve the effectiveness of concept testing include:

1. Do not expect to get product ideas right first time2. Involve consumers early on, so you have chance to implement their

feedback3. Inform consumers about the whole product experience, not just the

product itself 4. Use exciting and visual stimuli (e.g. your concept board); limit the

amount of text and description of product features5. Use consumers as co-creators (i.e. use them to develop and refine

your ideas), not as judge and jury

  

Tools & techniques for concept testing &

development

1. Focus Groups...In-depth exploration of what consumers think about your product. Click here to read more

2. Questionnaires and surveys.... Canvas broad opinion. Click here to read more

3. Non-traditional methods...Use creative opportunities to test your product in a non-traditional environment. Click here to read more

Case studiesInnocent SmoothiesZeo

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Feasibility assessment

Feasibility is a key consideration at this stage of the process as whether you are able to implement your idea will have significant bearing on how you proceed. Some of the points you may wish to consider are as follows: 

- Can we implement our product idea with our current resources?- What additional resources might we need e.g. equipment? - If additional resources are required, what impact will capital expenditure have on the business?- Which partners can we work with to develop the product?- How long will the development process take?- When can we expect to get our product to market?- How much will product development cost?- Will the new product deliver an acceptable margin to the business?

 Applying a feasibility assessment to your new product ideas will help to determine the likelihood of getting your product through the development process in an efficient and cost-effective way. If there are a number of new product ideas, it can also be used to prioritise which of these you wish to develop further.

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Costs & returns

The justification for developing a new product is often underpinned by an expectation that it will generate higher sales, either by charging consumers a price premium or driving increased purchases (or both).

However, the expected increase in sales (over the products’ life cycle) must be evaluated in light of the development costs for the business to be able to evaluate:

a) Whether it is feasible to develop the product in the first place (particularly relevant if investment in new assets, such as manufacturing equipment, is required)

b) The impact of the cost of development trialsc) Whether the expected increase in sales will deliver the level of growth

required by the business (i.e. it may be more cost-effective to grow the business in other ways)

Having a clear picture of the expected costs and returns of new product development is fundamental as it will need to generate sufficient profit to the business for it to be considered a feasible proposition.

Tools & techniques for evaluating costs and returns

1. Return on Investment (ROI) analysis...budget costs and returns for developing new products. Click here to read more

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Legal and safety “sense check”A legal and safety “sense check” of the product concept can help to identify major barriers that might be encountered further down the product development process. For example, the use of some foods and food ingredients may be regulated by Novel Foods Regulation – use of such foods and food ingredients may be subject to approval by regulatory authorities at EU level. This can add significant time and cost to the NPD process. An ‘early warning’ of such potential issues may therefore help to evaluate the attractiveness and feasibility of developing new product ideas.

Other potential legal issues to be considered at this stage include:

• Labelling requirements (e.g. “best before” and “use by” dates, country-of-origin, ingredients declaration)• Any functional health claims that you intend to make (health claims are legislated against by EFSA the European Food

Safety Authority• Any sensory and/or marketing claims that you intend to make (click here for guidance on making sensory claims and click

here for guidance on general advertising claims)• Guidance on allergens labelling requirements

A safety sense check would raise considerations as to: 

• Potential safety and shelf-life considerations that may need to be taken into account. This could, for example, impact on packaging and distribution channels

As such, it may be appropriate to commission an independent scientific body (such as the Welsh Food Centres) to carry out a literature review, highlighting potential safety risks. See Links/resources section for further information.

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Define stage check list

Before proceeding to the next stage, check that you have:

1. Developed the specification(s) for your new product idea(s)...........................................................

2. Tested your new product idea(s) with consumers/end users and are confident that further development is justified........................................................................................................

3. Assessed the feasibility of implementing your new product idea(s) and are confident that you can progress........................................................................................................................

4. Carried out a legal and safety sense check and are confident that there are no major obstacles that would prevent further development of the product ...................................................

If you are confident that you have achieved the above, proceed to the next stage. If not, go back and complete the objectives before moving on.

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Develop

The purpose of the Develop stage is to produce and refine a prototype product so that it is ready for commercial launch.

This stage of the process is likely to be iterative. Like a building project, you are trying to execute a design/blueprint and it is unlikely you will get it exactly right first time. The ingredients may not react in the way you expected them to and you may need to change the recipe; the production process may require adaptation; feedback from consumers might highlight things you had not previously considered.

There is no definitive way of knowing exactly when a product is ready for launch and there are risks of launching or not launching:

- The product may be launched onto the market but is not ready and fails to meet expectations- The product continues to be developed incurring financial, time and opportunity costs

Ultimately it is down to the individual, based on the evidence gathered in the NPD process, to determine whether further changes are required or whether the product should be launched.

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Develop

Key steps of the Develop stage

Production trial

TestAre changes

required? Yes, go

back. No, go forward

Scale up

Yes

No

TestAre changes

required? Yes, go

back. No, go forward

Yes

No Launch strategy

Likely to be:• Small scale• Developing multiple versions/varieties• Testing multiple processes

Consider tests such as:• Analytical tests• Sensory tests• Consumer tests• Financial costings

Likely to be:• Large scale• Developing few (one) versions/varieties• Testing few (one) processes

Consider tests such as:• Analytical tests• Sensory tests• Consumer tests• Financial costings

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Production trials

This is a critical part of the process. Here you are testing the ability to develop your new product and evaluate not only the final result, but the individual processes involved in its production. There is no generic template that can be applied as the production process will be unique to each product.

One of the challenges of developing certain horticultural products (as opposed to added-value processed products) is the time scales that are involved and the impact of seasonal growing conditions. The development of new fruit varieties, for example, may take several years from planting the rootstock to harvesting the first fruits and then several more years of adaptation to produce a version that is ready for commercial launch.

Businesses can overcome this limitation by implementing ongoing development programmes i.e. varietal development is not a one-off but a constant business activity. It may also be advisable to work with breeding organizations (e.g. seed companies) as they will be developing new varieties of horticulture products and be looking for commercialization opportunities.

Some of the key things you might want to consider during production trials are as follows:

1. Volume and yield2. Disease and pest resistance3. Quality4. Care and conditions (e.g. optimal soil conditions, water, light, heat etc. that are required for growing)

Case studiesFioretto

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Scaling up

If production trials are successful, the next step is to evaluate whether production can be scaled up to the levels required for commercial volumes. This is particularly the case for manufactured products when moving from a test kitchen to manufacturing plant environment .

Testing full scale production at this stage is of benefit because:

• New/different ingredients, equipment and processes may be required, all of which may impact the quality of the product and its efficiency of production (bearing cost implications)

• Scale production problems can be spotted and rectified prior to commercial launch• The business may need to invest in new equipment and/or technologies – testing them at this stage will minimise financial

risk to the business• The suitability of the land and climatic conditions can be evaluated (e.g. if moving from a greenhouse test bed to open

field production)

By trialing full scale production, you will be able to refine the production process, making it as efficient and trouble-free as possible. It is important to test the products that are produced at this stage to check that they meet the required specifications. This may involve any number of analytical, sensory and consumer tests as required.

Case studiesArtisanal antipasti product

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Analytical (instrumental) tests

There are a range of analytical tests that can be used to evaluate food products depending on the purpose of the test. These are sometimes called instrumental tests because they require the use of instruments. Some of these (and a brief explanation) are outlined below:

- Brix test: Degrees Brix (°Bx) measures the sugar content of an aqueous solution. It can be measured using a Refractometer and is used to assess the sweetness of fruits and vegetables.

- Viscosity: Viscosity is a measure of a fluid’s resistance to flow. The viscosity of a liquid product (e.g. salad dressing, smoothie) can impact the performance of the product (e.g. does the dressing evenly coat the leaves) and consumer perceptions (a thick smoothie = better value for money, whereas a thin smoothie = poor value for money).

- Chemical analysis: Chemical analysis of a product can be used for many purposes from identifying contaminants and allergens to profiling vitamin and mineral content. Chemical analysis requires specialist equipment operated by trained practitioners.

- Colour assessment: Colour has a major bearing on consumers’ initial assessment of food products (e.g. green tomatoes = lack of ripeness). Analytical methods can provide an objective measure of prototype products, which can be particularly valuable if consumer perceptions are heavily influenced by visual appearance (e.g. flowers, fruit, vegetables etc).

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Analytical (instrumental) tests cont...

-Shelf-life assessment: Food Labelling Regulations require businesses to identify the saleable life of the product using Best Before or Use By dates. As a result, testing may be necessary, in which case specialist expertise/equipment may be required. For long shelf-life products accelerated shelf-life testing with heat, light, temperature and humidity controlled units can be used.

Post-harvest processing, treatment, storage and distribution can have a significant impact on quality and freshness. It is therefore worth considering testing the product once it has gone through these processes, not before, as it will be a more accurate reflection of the product the consumer will purchase.

- Food safety tests: Article 14 of the General Food Law Regulation (EC) 178/2002 stipulates that “food shall not be placed on the market if it is unsafe”. Food is deemed to be unsafe if it is considered to be:

- injurious to health- unfit for human consumption

Article 14 also indicates what factors need to be taken into account when determining whether food is “injurious to health or unfit.”

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Sensory evaluation

Sensory science is a scientific discipline that uses a wide range of techniques to analyse and evaluate the sensory characteristics of food products i.e. taste, texture, appearance, smell and sound. The senses have a significant impact on our overall liking of food products, for example:

• We use sight, smell and touch to evaluate the ripeness of fruits and vegetables

• We expect crisps to be have a crunchy texture (by contrast ‘soft’ crisps are perceived as stale)

• A “schhh” sound when we open a canned drink tells us that it is carbonated and gives us a specific mouth feel expectation

Sensory evaluation is carried out by scientists that are trained to use their senses as an instrument to objectively analyse food products.

Sensory evaluation can aid the product development process by:

• Evaluating the quality characteristics of the product (e.g. sweetness, bitterness, crunchiness etc) and,

• Benchmarking the product against current or competitor products (e.g. to evaluate whether the quality characteristics of the new product are superior)

Tools & techniques for sensory evaluation

1. Sensory profiling...build a sensory profile of your product. Click here to read more

2. Preference Mapping.... A powerful way to combine sensory profile and consumer acceptance data. Click here to read more

Case studiesAlbert Bartlett

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Consumer evaluation

Obtaining consumer feedback is vital as they are the end users of the product. Earlier tests should have confirmed that the concept/idea of the product is worth developing. At this stage of the process, consumer tests can help you to understand what they think of your new product, for example:

• Is it as good as or better than competitor products?• Is it as good as or better than previous formulations?• What is the likelihood of purchase and price expectations?• How, where and why might they buy and consume the product?• What marketing and communications support might be required?

Listening to consumer feedback prior to launch can help to refine the development of the product itself (e.g. allowing you to make recipe, format and flavour adjustments) and to the marketing of the product (e.g. sales channels, price, advertising and promotion, consumption occasion etc.).

Critical to successful consumer evaluation is testing the product with consumers that match your target market profile, not the general population. For example, if you are developing a premium prepared salad, test this product with consumers that are most likely to buy this product (e.g. cash rich, time poor, higher socio-economic group, urban dwellers, health conscious, regular salad eaters, 80% female 20% male, aged 25-55).

Tools & techniques for consumer evaluation

1. Consumer Hall Tests...benchmark your product against competitor products and/or previous formulations. Click here to read more

2. Focus Groups...In-depth exploration of what consumers think about your product. Click here to read more

3. Questionnaires and surveys.... Canvas broad opinion. Click here to read more

4. Non-traditional methods...Use creative opportunities to test your product in a non-traditional environment. Click here to read more

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Launch plan

Your launch strategy should clearly set out how you intend to introduce your product to the market, taking into account your target market, pricing, distribution and sales channels and promotion.

A carefully planned and executed launch strategy will maximise the potential for success of a new product once released into the market.

Key elements to the launch plan include:

• Product description• Benefits and positioning• Pricing• Target market• Distribution/sales channels• Promotion and marketing support• Timings• Post launch Key Performance Indicators (KPI’s)

Tools & techniques for developing a launch plan

1. A framework for new product launch. Click here to read more

2. Considerations for product launch marketing. Click here to read more

Case studiesKit KatSoffrito mix

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Develop stage check list

Before proceeding to the next stage, check that you :

1. Have tested the production process at a scale required for commercial trial..................................

2. Have spotted and rectified any major production problems.............................................................

3. Have evaluated the product using a combination of analytical, sensory and/or consumer tests, incorporating feedback and recommendations.......................................................................

4. Are confident the product is ready for market...................................................................................

5. Have a developed launch strategy that can be implemented immediately......................................

If you are confident that you have achieved the above, proceed to the next stage. If not, go back and complete the objectives before moving on.

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Deliver

The objective of this stage is to launch the product as efficiently and effectively as possible.

There are some technical pre-launch checks that should take place, for example due diligence checks such as:

• Label checks and • Safety tests

A significant amount of resource should be dedicated to implementing a marketing and communications plan. There are four basic principles that can enhance the success of a new product:

1. New products need to be seen before they can to be purchased 2. New products need to be understood before they can to be purchased 3. Consumers need to be incentivized for them to try new products4. Minimise the risk of trial to the consumer

The process does not end once the product has been launched. Businesses should monitor and review key performance indicators (KPIs), such as sales performance, customer feedback/complaints, competitor activity and so on. Spotting and rectifying problems early on can enhance the potential success of the product.

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Due diligence check

It is recognised as best practice that a series of pre-launch legal and safety checks be carried out prior to launching a new product. We have called these a “due diligence” check. Whilst many of these tests may have been carried out in earlier stages of the NPD process it is important to consider a final due diligence check because:

1. The formulation and/or production/processing techniques used to make the product may have changed during the Develop stage and this may impact on the safety or shelf-life of the product as well as any marketing claims that it makes

2. There may have been changes to legislation and codes of practice, for example:a) Some ingredients may no longer be permitted for use in food products (or the threshold levels have been

changed)b) There may have been changes to certification standards (such as Red Tractor, Organic, Fair Trade), which may

affect how the product can be labelled and marketedc) There may be changes to labelling requirements (e.g. changes to ‘display until’, ‘best before’ or ‘use by’ dates)

A pre-launch due diligence check can help to avoid costly alterations to a product once in the market . It does not necessarily require a full legal and safety analysis, quite often it can be a routine process, but will need to be carried out by experts.

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4 point plan to maximise launch effectiveness

1. Be in the right place

2. Visibility

3. Clarity of communication

4. Reduce risk of trial

Identify where your product has the best opportunity to sell. For example, consumers may be more willing to try a new product if they buy it from a specialist store (such as a Delicatessen) or food service channel as opposed to a supermarket where purchases are more ‘automatic’

Make your product stand out and be seen by the consumer. Use packaging and merchandising to ‘spotlight’ your product

Spell out a clear reason why consumers should buy your productUse simple but engaging communicationUse visual stimuli – a picture paints a thousand words

Reduce financial risk with price promotionPromote with complimentary products (e.g. salads and salad dressings)Use endorsementsUse social media to sell positive experiences and maximise word of mouth referrals

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Post launch monitor & review

It is a common misconception that the launch phase marks the end of the product development process. This is often the case in large organisations where people perform functional roles i.e. the ‘product developers’ hand over to the ‘commercial team’ once the product is in the market. From a company perspective, however, it is important to monitor and manage post-launch activity as new products typically require intensive support for them to achieve their potential. The statistics presented in the background section highlight that 25% of new product launches fail because of ‘ineffective marketing support’.

There are many key performance indicators that could be used to monitor performance. Some of these are highlighted below:

• Actual versus forecast sales• Actual sales growth versus market average growth• Customer/consumer complaints (volume and nature of complaints)• Surveys and interviews with customers (e.g. buyers) and/or consumers. Useful for more qualitative feedback, such as

what aspects of the product they like/dislike• Competitor activity• Promotional effectiveness• Pricing analysis (is the product still competitive in the market)• Sales channel effectiveness

The purpose of monitoring the product post-launch is that it highlights changes that can be made to the marketing of the product in order to enhance its overall success (either troubleshooting problems or identifying opportunities). Therefore, collecting the type of information described above is only effective if actions are put in place .

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Deliver stage check list

Before proceeding with the launch of your product ensure that you :

1. Have carried out pre-launch due diligence checks....................................................................................

2. Have developed a launch plan, with implementable actions that will help improve the chances of success for your new product..........................................................................................

3. Know how to measure the performance of the product once it has been launched........................

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Tools & techniques

• This section contains a number of tools and techniques to support NPD.

• Whilst some of these can be carried out by the users of this document others may require the support of external experts. Where this is the case we have aimed to provide a non-technical summary to improve understanding.

Eisberg – Fruit Logistica Innovation Award winner, 2014

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Boston Consulting Group (BCG) MatrixThis tool was developed by the Boston Consulting Group (BCG), a globally recognised management consultancy firm, to evaluate a business’ current product portfolio. It is designed to help businesses identify how their products are performing and inform their product development strategy. It is a tool that is applicable to all types of businesses and is commonly used by all industry sectors.

How to use the BCG matrix:There are two axes. The horizontal axis measures market share from low to high; the vertical axis measures market growth from low to high. Apply this criteria to each product you sell in order to plot them on the chart. Wherever possible use market and sales data; for example, you could compare growth in sales against the growth in the total market. In the absence of data, use your best judgement.

Once you have plotted your products on the grid, evaluate the following:

• Do you have any cash cows? These are consistent sellers and typically generate higher profits, which can be used to fund development of new products. Cash cows are good because they provide stability but are unlikely to deliver high growth

• Do you have any ‘stars’? Stars are high growth, high market share products. Stars are valuable because they provide growth but require intensive support. Stars tend to turn into cash cows

• Do you have any dogs? These are under-performing products. If so, is there potential to turn them around? If not, consider divesting these

• Do you have any question marks? These could be valuable to the business because they are in growth but with a low market share their overall impact may be marginal

By undertaking this exercise, you should better understand your current product portfolio and generate ideas for new product development.

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Boston Consulting Group (BCG) Matrix cont…

Market Growth

Market ShareLow High

Low

High

Question Mark

Low market share and high growth. Value to business

uncertain

Star

High in market share and growth. Likely best-

performing product in portfolio. Nurture sales

Dog

Low in market share and growth. Consider renovating or divesting

product

Cash Cow

High in market share, low in growth. Use profits to

fund NPD

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Ansoff MatrixDeveloped by Russian-born mathematician Igor Ansoff in the 1950s and still widely used today, the ‘Ansoff Matrix’ evaluates the need to develop new products, new markets or both. It can help to determine your overall business strategy and the role of NPD within it. Ansoff identified four main ways in which a business can grow:

• Market penetration: Selling existing products to existing markets (customers)• Market development: Selling existing products to new customers• Product development: Selling new products to existing customers• Diversification: Selling new products to new customers

How to use the Ansoff Matrix:Use the matrix to help you consider your strategic options and determine the necessity for new product development. For example, your market analysis may conclude that there is plenty of opportunity for selling your current range of products to your current range of customers by penetrating the market with promotional strategies, such as multi-buy offers, to build loyalty.

It may, however, reinforce the necessity to develop new products if your market analysis concludes that there are limited opportunities to selling your current range of products.

Whilst all strategies incur a certain amount of risk, diversification strategies are the riskiest of them all.

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Ansoff Matrix cont…

Markets

ProductsExisting New

Existing

New

Market development

Selling existing products to new customers

Diversification

Selling new products to new markets

Penetration

Selling more of your existing products to existing customers

Product development

Selling new products to existing customers

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Empathy MapA good way to understand consumers is to use an ‘Empathy Map’. The Empathy Map helps you to understand more than consumers’ demographic characteristics and understand their environment, behaviour, concerns and aspirations. Doing so should help you to develop products that more accurately meet their needs and wants. How to use the Empathy Map:First, brainstorm to come up with all the possible customer segments to whom you might want to sell your product. Choose the customer that you think is most likely to buy your product. Give them a name and some demographic characteristics, such as marital status, income, children and so on. Then, using the diagram answer the following six questions:

1.What does he/she see?Describe what she sees in her environment

• What does it look like?• Who surrounds her?• Who are her friends?• What types of offers is she exposed to?• What problems does she encounter?

2.What does he/she hear?Describe how her environment influences her

• What do her friends say? What does her spouse say?• What influences her, how?• Which media channels are influential?

3.What does he/she think and feel?Try to sketch out what goes on in her mind

• What is important to her?• What keeps her up at night?• What does she say and do?• Imagine what she might say or do in public

4.What does he/she say and do?Imagine what she might say or do

• What is her attitude?• What could she be telling others?

5.What is his/her pain?

• What are her biggest frustrations?• What obstacles stand between her and her needs and wants?• Which risks might she fear taking?

6.What does he/she want to gain?

• What does she want to achieve?• How does she measure success?

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Empathy Map

What does he/she THINK AND FEEL?• What really counts• Major preoccupations• Worries and aspirations

What does he/she SEE?• Environment• Friends• What the market offers

What does he/she SAY AND DO?• Attitude in public• Appearance• Behaviour toward others

What does he/she HEAR?• What friends say• What boss says• What influencers say

PAIN• Fears• Frustrations

GAIN• Wants/needs• Measure of success

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Market SegmentationMarket segmentation is a commonly used tool to define a sub-set of the population that represents your customer base. By segmenting the market you can better understand who your customers are, discover their needs and wants, understand what drives their behaviour and, ultimately, more effectively target them with new products. There are many ways to segment the market, such as:

- Demographic segmentation: Dividing people into groups based on age, gender, income, occupation, religion. - Geographic segmentation: Dividing people into groups based on geographic variables such as country, county, town, postal code etc. - Behavioural segmentation: Dividing people into groups based on their perceptions, attitudes and behaviours toward a certain product or service. - Segmentation by occasions: Dividing people into groups based on how and when consumers use a product or service (e.g. people tend to buy poinsettia for Christmas but not at other times of the year. It is, therefore, an occasion driven market).

There are advantages and disadvantages to each method of segmentation. Demographic and geographic segmentation methods are effective in describing who your customers are and where they live but do little to tell you why they might buy your product (or not). These are the advantages of behavioural segmentation and segmentation by occasion. They can often give you a richer insight into consumption behaviour and enable the development of more effective products.

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Category Analysis

Price

What is the price range in the category (lowest – highest)?

What is the average price in the category?

Does the price premium change according to the size of the product?

Packaging formats types & materials

What is the most common pack size in the category?

Are products sold individually or in multipacks?

If products are sold in multipacks what is the number of products in a pack?

Do multipack format products differ in size to those sold individually?

What material is used for packaging?

Positioning claims/trends

What are the common claims made by products in the category – for example, no added sugar, GM free, perfect for lunchboxes, 5-A-Day etc?

What are the key themes of the claims – health, convenience?

Consumption Drivers

Are the products packaged and sold in a way to encourage single-serve consumption or sharing?

Is there focus on the convenience of the product?

Do health claims encourage the consumer to purchase the product – if so what are the health trends focused around losing weight, added vitamins?

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Example of Category Analysis – Fresh Juice Products 169 products in category (2 new)

Tropicana dominant brand (23% of products in range) followed by own label (19% of products in range); Innocent (13% of products in range)

Most popular format 1L carton (at home consumption)

Multi-pack cartons 4 X 200ml format (out of home consumption)

Single serve formats 235ml – 330ml

Flavour range

Apple/orange dominate Tropical flavours popular New veg/fruit combinations (e.g. tomato &

strawberry) Coconut water + fruit (e.g. with peach,

pineapple) Beetroot/pomegranate

Promotion 110 products on promotion (~65% of category)

Multi-buy deals to drive volume purchase e.g. buy 3 for £4 (premium OL) or buy 3 for £5 (branded)

Limited price discount

No cross-category promotions (e.g. linking juice product to other breakfast items such as Croissant)

Price Price range

High £9.16 per litre (Nosh Raw Fruity juice drink)

Low £1.25 per litre (Waitrose Essential 1L carton)

Average £1.50 - £2.50 per litre Leading brands price range £2.00 -

£2.50 per litre

Smaller serve sizes achieve significant price premium (100%+)

Positioning claims/trends Not from concentrate No added sugar Reduced sugar Natural Fresh GM free 5-A-Day Contains vitamins and minerals Recyclable (packaging) Perfect for lunchboxes Kids Free from artificial additives/preservatives Cold pressed Contains antioxidants Organic Serve size suggestion

Packaging formats types & materials 1L carton formats

Plastic bottle (750ml, 900ml, 1.25l, 1.35l)

Multipack cartons (pouch and box format with straw)

Single serve bottles / cartons 250ml – 330ml

Consumption drivers Volume driven - at home with family (e.g. 1L

juice cartons)

Convenience driven e.g. Lunchbox multi-pack cartons

Health driven e.g. coconut water, beetroot, pomegranate

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Market Research

In order to make an informed decision about how to progress your business and its products and services further, it is important to look at what is currently happening in your business sector. Market research is a way of gathering information about a product or market to provide greater insight and is often at the heart of most business strategies. A range of information sources for gathering and analysing market data can be found in the Links/Resources section.

Step-by-Step Market Research

Data needs to be gathered on your chosen area. Quite often this can be collated through free, online resources. Some examples of free resources are detailed below:

Survey of Agriculture and HorticultureThis is an annual survey conducted by the Welsh government which details facts and figures for both the agricultural and horticultural sectors in Wales.

Wholesale Fruit and Vegetable PricesA weekly data collection by DEFRA which details the latest wholesale prices in England for a range of fruit and vegetables. Historic data is also available for comparison purposes.

Horticulture Wales – Market AnalysisOn the Horticulture Wales website, they offer a dedicated market analysis page which provides details of a number of key resources for market research data. 

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Market ResearchOnce market data has been collected, it is important that this is filtered to show the specific market that you are trying to target. For example it is interesting to note sales of strawberries in the UK but how does this data look when it is split by county, or city, or local area? Strawberry sales may be high in the UK but in your local area they may be low or non existent meaning trying to start a PYO strawberry farm may be more difficult.

You may wish to consider finding answers to questions such as:

What is the population in my target market?If you are looking to sell your product in a local farm shop, you should consider how many people live in the local area around the shop, is there much chance of passing trade from those not in the area? The idea of ‘local’ can be subjective and is open to interpretation, typically ranging from a radius of 10 miles to 30 miles, depending on how rural your location is.

How many people fit in with my target profile?Your segmentation analysis will have identified a group of core target consumers for your product. You need to consider whether this group is represented in the data you have found. For example, if your product is aimed solely at women, this needs to be considered when looking at data showing strawberry consumption patterns for the population in general.

What is my target market willing to pay for my product?Understanding what typical retail prices are in your market will provide you with an insight into what customers are likely to pay for a similar product. If you multiply this figure by your potential target market size, you are able to work out the value of your potential target market.

 

10 x = £25

= Potential market size of £25,000

£25 x 1,000 people

= 1,000

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Idea development workshopThe idea development process can take many forms. Here we describe a best practice approach to running an idea development workshop using several people from across the business. If it is not feasible to follow this fully, try to implement the principles of running the workshop. 1. PreparationFollowing some basic ground rules will help the workshop to go more smoothly. 

Set an aim & objectives. It is important to be clear about the aims and objectives of the workshop. Be specific about what you are trying to achieve and make that clear to the participants. Having an outcome can help to give clarity and focus e.g. “by the end of the day we want to have generated some exciting new product ideas”.

Timing. Allocate ample time for the workshop, ideally this should be a whole day and not less than half a day to allow enough time for people to think creatively.

Location. If possible, off-site locations tend to work better as they have fewer daily distractions. Somewhere that is comfortable, informal and relaxed will encourage people to participate.

Capturing information. Consider how you are going to capture the discussion in advance of the workshop and bring adequate resources and materials (e.g. flip chart paper, Post-it™ notes etc.) for people to use.

 2. Team compositionAssembling the right team is essential to generating new and diverse ideas. Resist the temptation to only include senior members of the business and, instead, invite people with a diversity of age, seniority, position, technical knowledge etc. You are trying to develop an atmosphere of creative thought and discussion as well as identifying practical considerations (e.g. ease of implementation, finance etc) so consider inviting people with a range of job roles. Also consider group dynamics; if there is a particularly loud member of the team how will you manage them?  

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Idea development workshop cont…3. ImmersionIdeally the people attending the workshop should be briefed with the research and insight that you have gathered so far (e.g. market and consumer research). The more the participants are aware of this information, the more they are likely to generate ideas related to the problem opportunity facing the business. 4. ExpandingDuring this phase you will be trying to get the group to develop ideas. This is usually a Brainstorming session, which may be more effective by adhering to the following rules: 

Set and enforce rules: e.g. one conversation at a time, no idea is a bad idea, be visual.

Stay focused on the task: it is useful to have the aim of the workshop pinned to the wall to remind people of the purpose of the workshop if conversations get side-tracked.

Think visually: Pictures can be extremely powerful so encourage people to contribute diagrams and illustrations as well as words.

Be prepared to get things started yourself: It is worth preparing some questions in advance to get the discussion going, for example, “so how do we develop a new product that makes meal preparation in the home easier?”

Capture information: It is vital to capture all ideas on paper so they can be recorded.

 5. Criteria selectionOnce the team have created a wide range of ideas ask them to define the criteria against which they should be evaluated to reduce them to a manageable few. This should be specific to your business so consider things such as implementation cost and time, brand fit, skill, expertise and competence and so on. 6. PrototypingUse the criteria developed by the group to evaluate each of the ideas to generate a shortlist of ideas. This will provide a more robust evaluation of new product ideas as well as improving team buy-in to the decision making process.

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StorytellingStorytelling can be an extremely powerful way to visualise your new product idea through the consumers’ eyes. This can be a useful way of evaluating the extent to which your new product idea meets their needs and wants. It can also provide practical guidance in terms of helping to understand where s/he might buy the product, why, how much they paid, what they used it for, what they thought of it and so on. ExampleElaine rushed to Waitrose to pick up a few ingredients for dinner (spaghetti bolognese) before picking up her kids Jack (aged 5) and William (aged 7), from school. Her shopping list included: minced beef, tinned tomatoes, tomato puree, garlic, beef stock, onions, carrots and celery. As she walked through the vegetable aisle, she saw a bag of pre-prepared “Soffrito” (onions, carrots and celery - see case study). The label said it was ideal for making bolognese and she immediately put it in her basket. At 99p she didn’t think much about the price and reasoned that she could spend the time it would have taken to slice the vegetables herself unpacking the dishwasher. She got the rest of her ingredients, paid at the checkout and picked up the kids from school. When she got home she immediately unpacked the shopping and put a pot on the hob with some olive oil to heat through. She then opened the bag and emptied the contents into the pan to soften for 5 minutes whilst she unpacked the dishwasher and made herself a cup of tea. She then added the remaining ingredients and left the dinner to cook whilst she caught up with Jack and William’s day at school. The story contains lots of marketing clues: for example:

Product benefits/attributes – speed and convenience, premium, quality

Product usage – as meal base (pairs well with minced beef dishes and stews)

Price - 99p is a significant premium (perhaps 100%+) on cost of buying individual items separately. Value for money trade-off between cost and preparation time

Target market – people with high interest in cooking but limited on time (e.g. busy mums and dads, young professionals)

Distribution channels – premium supermarkets

Promotion – highlight time-saving aspect of product, spend more time with kids not cooking, ease of use, versatility, cross-category promotion (Soffrito with olive oil, tinned tomatoes, minced beef etc.)

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Storytelling cont…How to use storytellingUsing words, pictures, videos etc construct a story around your new product idea. Think about the following details: 

• Who is buying the product and who is using the product?• Why did they buy/use the product?• What benefit did they get?• How much did they pay, how did they pay?• Where did they purchase it from (where else might they purchase it from?)• What else did they buy? Was it a single-purchase, part of a weekly shop or for a specific meal occasion?• What other choices did they have (e.g. buy ingredients separately, choose another meal and set of ingredients etc.)• What would make them buy it again?

Use your story to evaluate your new product idea. You can also use the story to communicate your idea to others in a more creative and engaging way.

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Co-creation & crowdsourcingCo-creation and Crowdsourcing is a form of marketing where a company looks to people external to the business for innovation ideas. It is thought that by engaging consumers in the development of new products and services they are more likely to meet their needs and wants and therefore be more successful.

It is a technique that has been pioneered by high-tech industries, such as software developers, for example Microsoft’s “I’m a PC and Windows 7 is my idea” campaign. Microsoft invited users of its software to suggest incremental improvements to its software, which it incorporated into Windows 7. It is an approach that has been also embraced by the food industry.

Crowdsourcing platforms, such as Eyeka (https://en.eyeka.com/), publish ‘contests’ on their websites, issued by fast moving consumer goods companies. Contests vary but usually ask for creative ideas for new product concepts, advertising campaigns and so on. The company pays a financial reward to consumers if their ideas are used.

Other companies advertise competitions via their own website and promote it via social media (e.g. Kingsmill http://www.kingsmillbread.com/competitions/ and Walkers Crisps “Do us a flavour” competition asking for ideas for new crisp flavour ideas).

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Co-creation & crowdsourcing cont…Competitions and contests are a good (and fun) way to generate ideas for new products using the principles of co-creating and crowdsourcing. These can be implemented on a small or large scale using websites, social media, local businesses (e.g. farm shops, pubs) and so on. To set up a competition you will need to: 

1. Create a brief (i.e. what is it you are looking for? how should people submit their ideas? what other ‘rules’ do they need to obey? closing date for applications)

2. Establish a reward. This could be financial or non-financial 3. Identify who can take part. This may be for legal and/or practical reasons (e.g. competitions involving new alcohol products

should be restricted to those of drinking age or mums submitting ideas for baby food products)

4. Promote it (e.g. via social media)

5. Close the competition, judge entrants and award a ‘winner’

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Kano ModelDeveloped by Noriaki Kano in the 1980’s, the Kano Model is a theory of product development and customer satisfaction. The model is divided into three distinct categories:

1. Must be (basic) attributes. These are taken for granted attributes that the product must have and if they are unfulfilled consumers may be dissatisfied

 2. One dimensional (performance) attributes. These result in customer satisfaction when fulfilled and dissatisfaction when not fulfilled

 3. Attractive (excitement) attributes. Their absence does not cause dissatisfaction but their presence can delight customers

 To explain further, we have applied the principles of Kano to a consumer purchasing a bunch of cut flowers.

1. Must be (basic) factors. The flowers are sold wrapped in protective plastic and displayed in water to enhance freshness. This is a basic requirement which, even if fully met, is unlikely to add value to the consumer. However, the absence of protective wrapping and water is likely to have a significantly negative impact on consumer perceptions

2. One dimensional (performance) attributes. Flowers that last longer are a key performance indicator for fresh flowers which consumers value highly i.e. flowers that stay fresh for 7 days or more are perceived as good value for money but flowers that only last a few days are perceived as poor value for money. Developing products along this dimension is likely to improve overall consumer satisfaction

3. Excitement quality. The bunch of flowers contain a new and unique type of lily that the consumer was unaware existed. Now that they have discovered this new variety the consumer is delighted and immediately chooses this bunch over the other available bunches. As this is an unexpected surprise absence of this new lily variety would not have lead to disappointment

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Kano Model cont… SatisfactionHigh

AchievementLow

AchievementHigh

SatisfactionLow

Basic factors

Performance attributes

Excitement attributes

Sold in waterProtective wrappingSachet of food

Freshness guarantee

New/unique type of flower

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Focus GroupsFocus groups involve bringing together a key group of participants to hear their thoughts and opinions on a selected topic. A focus group may be useful if you have plans to develop a new product as you have the opportunity to ask the group about key features of the proposed product and gain instant feedback.

Focus groups encourage dialogue amongst participants. When one participant speaks, it triggers another to input their opinion and so forth. As such, the focus should be on the participants rather than the person (the facilitator) leading the focus group as the group should not become susceptible to bias from the facilitator.

Setting up a focus groupTo conduct a focus group you ideally need to have a facilitator and a note taker. These two roles can be combined together but having two separate people means that each person can concentrate effectively on their own role.

The facilitator will be the person who will guide the discussion with the participants. They will need to remain impartial throughout the duration of the discussion to ensure that the participants are not influenced by his or her own opinions. A discussion guide should be prepared prior to the meeting, and could be structured as a questionnaire with open ended questions to allow greater feedback from participants. It is important to try and stick as closely as possible to the guide to ensure that the discussion does not flow off topic.

Running a focus groupProbing and clarifying questions can be used by the facilitator to obtain greater detail about what a respondent has said and to help clarify any particular points of interest. For example, neutral probing and clarifying questions could be “Please tell me more about that….” or “Could you explain what you mean by……”

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Focus Groups cont…The note taker will record notes and observations throughout the discussion ensuring that they capture as much data as possible. If necessary a focus group discussion could be recorded or filmed if consent is given from all participants involved. As well as recording the actual thoughts of participants it may be useful to note down changes in body language and behaviour as this too can give an indication towards a participant’s feelings about a certain topic.

The focus group itself should be clear about the purpose and projected outcomes of the discussion at the start of the process. You may want to consider getting the participants to sign confidentiality agreements so that they are clear about who the information is intended for. Participants should feel comfortable throughout and confident enough to provide their own views on a topic area. If participants feel relaxed they are more likely to provide you with their thoughts. All members of the group should be included in the discussion. If necessary the facilitator can direct questions at less vocal participants to bring them into the conversation.

Some additional factors to consider with regards to focus groups are:

• Costs – professional firms may charge up to £5K+ per focus group (although there are economies of scale for multiple groups). Other organisations e.g. universities, may be cheaper

• Recruitment – the focus group should reflect the target market population that you are trying to sell to• Discussion guide – be clear as to what information you want to find and structure the discussion accordingly• Duration – there is no set length for a focus group but they typically last from 45 minutes to 2 hours (focus groups are an in-depth

methodology and timing should be appropriate to allow full exploration of the discussion guide)• Timing – most people work office hours Monday – Friday. Consider evening and weekends• Rewards – most focus groups pay the participants for their time• Facilities – these should be quiet, comfortable and neutral. Professional research facilities have audio-visual recording facilities and

viewing rooms with one-way mirrors but this is not always necessary• Recording the information – consider audio-visual recordings and note taking• Permission – all participants should be informed and give consent to be part of a focus group (see Market Research Society

Code of Conduct)

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Using questionnairesYou may want to discover why your customers buy your products, are there any changes they would like to see to your offerings and are there things that they like and dislike in relation to your product.

One of the most effective ways to do this is to create a questionnaire to share with consumers. One of the key points to remember when developing a questionnaire is to consider what you are trying to find out. Once you have decided upon the point of the questionnaire you must keep this in mind when developing your specific questions. For example, a vegetable box supplier may want to develop a new box so would need to ask questions relating to what consumers like and dislike about their current boxes, or asking about produce they would like to see in future boxes.

Getting responses from questionnaires can sometimes be difficult, especially if your customer cannot see a direct benefit to themselves. As such you may want to think about including a prize draw for those that do respond. For example, on a pick-your-own farm, everyone who completes the questionnaire could be entered into a draw to win a free pick-your-own session or perhaps win a voucher for 10% off their next purchase with you.

Some key considerations in using questionnaires are as follows:

• Sample population – this should reflect your target market• Sample size – the number of people sampled in your survey should be statistically representative to your target population (to

improve reliability). There are a number of online tools to help you calculate sample size – click here for an example• Timing – the time of day, weekday or time of year can all affect the number and quality of responses you receive• Recruitment – there are some businesses that manage panels of consumers. This ensures you are more likely to be able to target

your sample population but there is a cost involved. It is also possible to buy lists of consumers contact details (providing they have ‘opted in’ to being contacted for survey purposes). You may have your own list of consumer contact details

• Permission – all participants should be informed and give consent to be part of a questionnaire (see Market Research Society Code of Conduct)

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Using questionnaires contPrinted Questionnaire

Printed questionnaires will cost money to print and the layout of the questionnaire will be important as you will not be with the customer when they answer the questions.

The questions should be clearly set out without being crammed to fit on one side of paper. There must also be adequate answer space for questions. This is most important if asking open ended questions where responses will most likely be longer.These questionnaires could be distributed to current customers when they next make a purchase. For example, including the questionnaire in a customer’s next vegetable box, or telling them about it at the point of sale and asking for help to fill it in.

If sending out questionnaires, you may wish to consider whether you want to include prepaid return envelopes to encourage more responses. However, this can be costly as postage will need to be paid on all return envelopes even if the customer does not return the questionnaire.

Online Questionnaire

Online questionnaires can be developed for free via websites such as www.surveymonkey.com and https://uk.toluna.com/ . These online tools allow you to create your own questionnaire and send it out to your customers via a personalised website link.

Once your responses have been collected these online tools have the ability to analyse your responses for you by putting them into tables and graphs. Alternatively you can download this data yourself and conduct your own analysis of the results.

This type of questionnaire is useful if you have a collection of customers’ email addresses which you can use to send the survey to. Alternatively you could promote the survey at the point-of-sale, ensuring that your customer has details of the web address they need to go to.

Face to Face Questionnaire

If you or your colleagues have the time available, you could go through your questionnaire on a face to face basis with your customers. This would allow you to further expand on questions to get an understanding about why a customer might think a certain way.

You could also make sure that you cover a wide range of your customer groups in terms of different age, sex, occupation – if this is important to your findings.

When conducting a face to face questionnaire, the questionnaire should still be prepared beforehand so that you are covering the same questions with each customer. If necessary, you can change the order of the questions as you go through if a response leads you on a different course.

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Using questionnaires contDesigning your questionnaire:When designing your questionnaire, there are a number of key factors you should consider:

• Short and snappy – time is precious to your customers, so the shorter and simpler you can make your questionnaire the better. A questionnaire does not necessarily have to be long and complicated to be of benefit to your business

 • Simple language – questions, like the overall questionnaire, need to be simple to understand and written in plain English with no jargon or

acronyms to confuse your customers 

• Question choice – there are two main styles of questions that you can choose to include in a questionnaire, each with their own advantages and disadvantages:

 Open Questions – e.g. What are your impressions of our fruit smoothie?

  These questions produce qualitative data which shows the reasoning behind a customer’s view point. These questions can take longer to answer and are often more difficult to quantify and analyse

 Closed Questions – Do you think our fruit smoothie is: a, b, or c?This type of question produces quantitative data which can be easily analysed. However, although we may know what

our customer thinks of our product, the closed question means we do not understand why our customer thinks this

• Question order – ensure you include the most important questions at the start of your survey. Sometimes respondents will not complete a full questionnaire, so ensuring important questions are covered initially means that some useful information can be gathered from incomplete questionnaires

 • Testing stage – once your questionnaire is complete it is important to test it out on family, friends, or colleagues. They should consider

things like: the length of the questionnaire; are the questions logically ordered; are the questions easy to understand; are there any duplicate questions

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Example of a Product Description TemplateProduct concept A snack pot of vegetable batons (carrots, courgette, celery) with a dip (e.g. hummous). It is sold as a single-serve portion

(150g) in a PET pot and is stored in chilled conditions. It is targeted at health conscious snackers and as a healthier alternative to other lunchtime products such as crisps

Brand Sold as own label Product name Lunch CrunchIngredients Vegetables (carrots, courgette, celery)

Hummous (chickpeas, lemon juice, oil, garlic, cumin, salt, paprika)

Pack size 150g pot. PET

RRP £1.20 - £1.50 per potTarget market & sales channels Female office workers, aged 18-55, higher socio-economic group, health conscious, time pressured, urban location

Suitable for general populationSold through C-stores (e.g. Tesco Metro) next to ready-to-eat sandwiches. Other quick sales channels to be explored

Consumption occasion Away from home. Primarily lunchtime but also snacking throughout the dayProduct qualities

Nutritional. One of 5-a-day, high in protein, gluten-freeSensory. Vegetables are crunchy and fresh. Hummus has a spicy and nutty flavourMicrobiology. Stable under chilled conditionsPhysical. Batons of vegetables (c. 12 total) upright in a pot, lid contains hummusStorage. Between 1°C and 5°CPackaging. PET pot, recyclable materials

Attributes to be promoted Health 5-a-day Convenience Vegetarian High protein Gluten-free

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Consumer Hall Tests

Consumer Hall Tests involve a panel of consumers (typically 50 or 100) brought together to evaluate and compare products. Consumer tests differ from sensory tests in that they are not trained experts and therefore are only able to give a subjective, rather than objective, evaluation. By recruiting a panel of consumers that reflect the target market you are aiming for, consumer hall tests provide an indication of how your new product might be accepted if launched.

Typically, consumers are presented with a sample, which is usually presented ‘blind’ i.e. with no packaging, branding or other information (this encourages consumers to evaluate the product itself without ‘distracting information’ influencing their judgement). A series of questions is then presented to consumers asking them to evaluate the product in terms of overall liking and of individual sensory characteristics such as taste, smell, appearance etc. Answers are recorded on a hedonic rating scale (e.g. 1=dislike very much and 7=like very much). There may be some opportunity to ask open questions (e.g. “what did you particularly like/dislike about the taste?”) but the emphasis tends to be on closed questions.

BenchmarkingConsumer Hall Tests are seldom carried out with one product. Instead they provide the opportunity to benchmark against competitor products or a previous formulation, to test if consumers like the new product more than the competitor product or previous formulation. Again, other products are usually tested ‘blind’.

Benchmarking can provide powerful evidence to justify further development of a new product, particularly if the product outperforms competitor products. It can also highlight aspects of the product that consumers are less satisfied with and can help to direct the NPD process to address these weaknesses e.g. if consumers rated texture poorly this is a clear area to address.

Whilst Consumer Hall Tests provide powerful (statistical) feedback on what consumers like /dislike about your product, they do not provide much depth of explanation as to why.

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Consumer Hall Tests cont…

Some dedicated facilities are required to carry out Consumer Hall Tests e.g. a kitchen big enough to prepare the sample required, a room in which to test the samples (some businesses do this in purpose-built ‘booths’). More important, however, is the design and execution of the test, which should be carried out by trained practitioners – this ensures the robustness of the test, especially if the results are to be used to support the marketing of the product.

Some key considerations in using Consumer Hall Tests are as follows:

• Sample population – this should reflect the make-up of your target market• Number of people – the majority of tests are made up of 50 people. A sample size of 100 is usually much more statistically

significant• Timing – the time of day, weekday or time of year can all affect the number and quality of responses you receive• Location – this is most likely determined by the availability of suitable facilities (e.g. if food preparation is necessary a kitchen

will be required)• Information capture – participants should be able to record their responses to specific prompts / questions on paper or online.

This should be prepared in advance of the test• Reward – most participants receive a financial reward for taking part• Management of the session – in order to avoid bias most tests are conducted in silence. Samples are presented blind (i.e. with

no branding/identifying information) and referred to by alphanumeric codes• Permission – all participants should be informed and give consent to be part of the test (see Market Research Society

Code of Conduct)

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Informal consumer tests

The use of recognised tried-and-tested consumer tests such as Consumer Hall Tests, Focus Groups and quantitative surveys is considered good practice in NPD. However, there are also instances whereby businesses may wish to take advantage of more informal opportunities to obtain consumer feedback. The Innocent Smoothies case study is a good example of a quick and cost-effective way of testing a new product concept with consumers using ‘non-traditional’ research methods.

There are many opportunities to conduct consumer research in a non-traditional setting. This can have its advantages, for example:

• The product can be tested in a ‘real life’ environment (e.g. if it is a product designed to be consumed on the go)• Respondents can often be more willing to take part because it requires less commitment (traditional research tends to

require respondents to travel to a research facility)• It can be cost-effective

These advantages should be weighed against its disadvantages:

• You may be reliant on ‘passers by’ rather than testing the product with the target market• There are lots of other external influences that can affect the test• The results may be scrutinised if they are used in the marketing of the product

Further information about conducting market research and the Market Research Society Code of Conduct may be found on their website - https://www.mrs.org.uk/standards/code_of_conduct/

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Return on Investment (ROI) Analysis

Return on Investment (ROI) is the financial return (i.e. sales) the business will receive from selling a new product in return for the investment made in developing it. There are a number of ways in which ROI is calculated. We have identified four basic steps (below) to completing ROI analysis – the accompanying Excel spreadsheet contains a pre-formatted model for calculating ROI.

Step 1 – determine how much work is needed

Break the NPD process down into component parts.

Start with major NPD stages and then consider which tasks will be required at each stage.

It may be helpful to construct your own NPD process map, identifying stages and tasks

Step 2 – determine the cost of the work

For each of the tasks attribute a financial cost. That might include equipment, use of contractors and consultants, legal fees, time (i.e. the cost of employees working on the project), disbursements, and marketing support (to name a few).

Consider timing. When will the business have to pay costs?

Step 3 – estimate the potential sales value

Use your market research analysis to calculate potential sales value (i.e. how many units do you expect to sell and at what price?)

You might want to consider a best, worst, most likely scenario.

Consider how sales might develop over time (e.g. year 1, year 2 and year 3 sales).

Step 4 – calculate the returns

Divide estimated sales by anticipated costs for each year in your budget. This is your ROI.

It is highly likely that year 1 ROI will be low (negative) as the initial development costs are paid back. Over time the ROI usually improves and once the payback period has been achieved, profitability is at its optimum.

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Sensory profilingSensory profiling can be used to assess quality characteristics of a new product. Sensory profiling techniques can also be used to benchmark your products against a competitor product.

Trained assessors develop a vocabulary of terms that describe the sensory characteristics of the product (taste, appearance, aroma, texture, sound).

Criteria are then generated to create a rating scale e.g. from ‘not sweet at all’ to ‘extremely sweet’.

Each product is then assessed and objectively evaluated against each of the criteria.

A typical output of a sensory profile is a spider chart, like the example opposite which is a sensory profile for a potato variety. It highlights attributes such as a waxy texture, shiny appearance, strong taste etc.

These characteristics are then used to highlight which dishes they are more suited to and the best preparation methods for them.

Source: Albert Bartlett via Food Drink Innovation Network

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Preference MappingPreference mapping is a powerful statistical technique that combines sensory profile data with consumer acceptability data.

A preference map plots consumer acceptability scores (the pink dots in the example opposite). Sensory profile data is overlayed which identifies specific sensory characteristics (the blue dots in the example opposite). Finally, products are also plotted according to their sensory profile (the green squares in the example opposite).

A Preference Map provides insight by correlating all of these attributes. For example product C and F show a strong correlation to characteristics such as moist, sweet, crisp, which are attributes consumers would find acceptable.

It also identifies spaces / gaps which could present NPD opportunities. For example, no products displayed characteristics such as dry, nutty, salty flavour but these are all attributes that consumers would look for in a crisp product.

Preference Map – Crisp Example

Source: Leatherhead Food Research

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Marketing Mix

Target Market

Product

Price

Promotion

Place

The Marketing Mix can also be known as the four Ps.

It involves identifying that you have the right product, selling at the right price, using the best promotion and sold in the most suitable place, whilst also making sure that these factors are relevant and the most efficient for attracting your target market. Developing a Marketing Mix will provide a basis and focus for your business strategy. It will make sure any objectives and aims you set will retain focus towards the target market.

Each core element from this mix is considered in more detail over the following pages.

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Marketing MixTarget Market

At the heart of the Marketing Mix is the target market and it is important that you know who your potential target will be. Undertaking the segmentation analysis will have provided you with core details with regards to your target market, for example, what gender are they, what age range, what socio economic status do they fit into.

Product

Coming up with an idea for a product is just the first step. You need to consider how your product will be received by your target market and identify any potential benefits offered by the format.

For example, your product may offer a more convenient packaging format, added health benefits, or a new taste or flavour.

All of these features will help your product stand out from the competition and make it more attractive to your target market.

Price

Price is not necessarily just a case of costs and profit margins. You also need to consider what your target audience will be willing to pay for a product. An economy product should not enter the market with a retail price higher than its luxury equivalent, for example.

It is often difficult to estimate what your target audience are willing to pay, as value is based upon individual perceptions. Undertaking a category analysis will help to identify a suitable price point.

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Marketing Mix

Promotion

The majority of new products that enter the market do so via a promotion of some sort. Promotions can take many different forms and do not necessarily have to be price focused. See below for some examples of new production promotions:

In-store tasting – set up free sampling of your product where it is to be sold, to encourage customers to try something new

Point-of-Sale (POS) posters – these will draw attention to the fact that your product is new and different

Competition – consumers must purchase your product to be included into a draw to receive a food hamper of your products

Price Discounts – these could be a specific percentage off the suggested retail price, or a discount offer. Remember to emphasise the fact that this will be a limited offer while the product launches.

Place

Launching a new product means finding the retail environment that is right for your product, brand and, most importantly, your target market.

Products produced with a local emphasis often work well when sold in local shops and farm shops in the surrounding area. Customers who shop here are keen on purchasing high quality, locally produced products.

However, if you do not have access to local retailers or you do not feel that this fits with your product’s brand identity then other places could also be considered:

Supermarkets

Online

Home Delivery

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Case study examples

• This section contains a number of case study examples.

• These have been selected because they serve to highlight a key point in the development of new products.

• The case studies highlight ‘best practice’ mainly from across the food and drink industry. The principles and learning points are applicable to all forms of business including the Welsh horticulture sector.

Vegessentials – Fruit Logistica Innovation Award nominee, 2014

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Innocent Smoothies

BackgroundIn 1998, founders Richard Reed, Adam Balon and Jon Wright wanted to know whether to quit their day jobs (in advertising and marketing) and set up their own business making smoothies.

What happenedThey made some smoothies and set up a stall at a music festival in London. A sign above the stall read “Should we give up our jobs to make these smoothies?” Next to the sign were two bins; one marked “Yes” and the other marked “No”. They asked people to cast their vote and throw their empty bottles into whichever bin they chose. By the end of the day the “Yes” bin was full and the “No” bin was empty.

OutcomeThey decided to quit their jobs and start a business called Innocent Smoothies.

RelevanceA quick, simple and effective way of testing their new product concept with consumers.

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£10 Meal DealBackgroundThe ‘£10 Meal Deal market’ is worth £360 million and is growing at 40% per annum, yet until a few years ago it didn’t even exist. Why has it been so successful?

Why is it innovative?The £10 Meal Deal reframes value to the consumer. Typically the deal contains a main meal, side dish, dessert and a bottle of wine ready-prepared so that the consumer simply needs to heat and serve. This is seen as good value to the consumer; a tasty meal that requires minimum preparation at £5 per head. It also fits with a number of more general food trends such as the desire to eat more diverse cuisines and a decreasing time spent preparing meals in the home (on average consumers spent 30 minutes preparing and cooking meals in 2013 compared to one hour in 1980).

It is also extremely good value for the manufacturer and retailer. If consumers were to buy the constituent ingredients and prepare it themselves the cost would be much lower - somewhere in the region of £3.50 per head or £7 per couple.

RelevanceNot all innovation requires new products development. Sometimes reframing existing products/ingredients in a different way can be just as valuable (or even more so) to the consumer. Prepared salad pots and fresh fruit snack pots are both good, and similar, examples of innovating with the same set of ingredients/products.

Source: M&S

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Heinz Fridge PackBackgroundHeinz are the clear market leader of the £330 million baked bean market in the UK with a 65% share. Their products are found in most households. With such a well known and loved product there is a risk that changes to the product are not liked by the consumer (see Twinings Earl Grey case study).

InsightRather than develop the recipe Heinz looked at other ways of innovating based on insights drawn by looking in our fridges. The Heinz fridge pack clearly addresses a number of weaknesses in the aluminium can format in which the product is traditionally sold. Portion sizes are not always consistent with pack sizes and consumers invariably end up storing the left-overs in the fridge. This can be messy and lead to waste.

SolutionThe Fridge Pack solves these problems by enabling the consumer to serve the portion size that is appropriate and easily stores the remaining beans in the fridge, without making a mess, until the next meal occasion.

The television advert that supported the launch of Heinz Fridge Pack clearly illustrates the insights that lead to the innovation http://www.youtube.com/watch?v=GBy7muLPhSM

Relevance- Packaging innovation can be extremely effective- Highlights the importance of gaining consumer insight as the foundation for innovation

Source: Heinz

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Dyson – understanding consumer needs

BackgroundVacuum manufacturer James Dyson is no stranger to innovation. His designs have revolutionised the industry and set a precedent for other manufacturers to follow. Ergonomics lie at the heart of what is innovative about Dyson vacuum cleaners. Each innovation seeks to make their vacuum cleaner much simpler and easier for consumers to use; for example, removing cleaner bags, improving suction, introducing the roller ball and – as shown in the diagram opposite – the stair cleaning attachment.

Gaining insightSuch innovative ideas only come from observing and understanding the problems people face in using conventional vacuum cleaners; changing the bag is a dirty and dusty job, it takes a long time to clean up all the dirt, corners are a real problem because the vacuum cleaner doesn’t turn easily, cleaning the stairs is really difficult. Only by understanding the problem can engineering solutions be applied to develop innovative solutions.

How Dyson vacuums innovate is testament to the importance of investing the time and effort to understanding consumer needs. This has enabled them to create innovations that set them apart from their competitors to obvious commercial benefit.

RelevanceThis case study highlights how important it is to understand how consumers use the product and the value of identifying ‘problems’ they might have.

Source: Google

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Twinings – storm in a tea cup

BackgroundThe Twinings brand is synonymous with tradition and tea. In 2010, the company decided to reformulate one of its most popular blends, Earl Grey, by adding more bergamot and lemon to give more of a flavour impact. However, it was an unwelcome change for the thousands of consumers that regularly purchased the product. In fact, such was the level of complaint that some even started a Facebook campaign - "Bring back the original Twinings Earl Grey tea“. Twinings later changed the recipe back to its original form. RelevanceThis example highlights the difficulty of changing a well-known and well-loved product. Quite often, businesses may look to target new consumers and reformulate the product with their tastes in mind (for example, adding extra bergamot and lemon may have appealed to a younger audience). However, this may conflict with the tastes and preferences of those that currently purchase the product.

Source: Google

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GlenfiddichBackgroundWhisky distillery is steeped in tradition and heritage yet this tradition has also imposed constraints i.e. it didn’t appeal to other sections of the population (most notably females) or other consumption/usage occasions (e.g. before a meal, in premium cocktails etc).

InsightGlenfiddich recognised that appealing to a wider set of consumers would bring increased sales potential. However, it didn’t want to lose the tradition and heritage that makes whisky unique and risk alienating its current consumer base.

What they didGlenfiddich expanded its product range by adding new variations to its core product (a 12 year old single malt whisky). Each addition had a different flavour profile designed to target different drinkers, for example, one aged in sherry casks to impart a slightly lighter flavour to appeal to female consumers and one aged in oak bourbon casks to target consumers that drink bourbon, not whisky.

To support the new varieties Glenfiddich also ran a nationwide cocktail competition challenging bartenders to create new recipes with their new product range. The purpose of this was to improve visibility of the new products in a food service environment and to create new product consumption occasions i.e. whisky in a cocktail.

Hand-in-hand with the release of new products and the competition, was a rebranding that gave Glenfiddich’s products a contemporary look and feel whilst also retaining the characteristic stags head motif, linking with tradition and heritage of Scottish Whisky.

RelevanceMinor adaptations to existing products can help to attract new consumers to the category. Source: Glenfiddich

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McCain’s Oven Ready Jacket Potato

InsightConsumers prefer oven baked jacket potatoes but often do not have the time to prepare them.

What happenedThis insight led to McCain’s developing and launching “Ready Baked Jackets” – a pre-baked jacket potato that can be quickly prepared by the consumer in the microwave. The product contains two ingredients - potato and sunflower oil - and is sold frozen.

The added value of convenience and speed of preparation enables McCain’s to obtain a higher retail price point of £2.50 for 4 jackets (~£62.5 per potato) compared to a 4 pack of fresh Waitrose Own Label baking potatoes at £1.32 (~£0.33 per potato). Source: www.ocado.co.uk, (11th March 2014).

RelevanceThis case study highlights how convenience can be a major driver of innovation.

Source: www.ocado.co.uk

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Albert Bartlett

BackgroundPotatoes are a key item that the majority of consumers purchase. However, research shows that consumer expectations are low and potatoes are viewed as a functional product. Introducing new varieties to the market is a way of changing consumer perceptions but is difficult to achieve as consumers tend to purchase a few key varieties such as Maris Piper, Charlotte and Desiree.

What happenedAlbert Bartlett trial over 200 new varieties at trial sites across the UK. Variety selection is based on taste, aesthetic, agronomic and storage testing. One of the ways new varieties are evaluated is by using sensory science i.e. a trained panel of sensory scientists that are able to profile the sensory characteristics of the potato varieties (e.g. taste, texture, appearance, flavour, mouth feel etc.). Varieties can then be selected for development that match the characteristics desired by consumers depending on how and why the product will be used i.e. waxy varieties suit use in a salad, fluffy potatoes suit use as a roast potato or chip and smooth potatoes are used for mashing. Description of these characteristics can be used at point-of-sale to communicate to consumers how to use each variety and, potentially, increase uptake.

RelevanceThis case study highlights how an ongoing programme of variety trials is important for products such as potatoes.

It also highlights the value of sensory science to the NPD process.

Source: Google

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Coldpress™

BackgroundMany juice drinks are made using a heat treated pasteurisation process. Coldpress™ argue that this process, which is designed for safety and to prolong shelf-life, has an adverse impact on the nutrient content and sensory characteristics of juice drinks. Instead, Coldpress™ use a High Pressure Pasteurisation system (HPP) which, they claim, ensures safety and shelf-life whilst preserving the natural nutrient content and sensory characteristics of the fruits. So much so, Coldpress™ claim that the HPP process means that it is possible to taste the difference between different apple varieties when they are juiced. This has meant they have been able to create a unique position in the market by launching single-variety apple juice products e.g. a Pink Lady® juice drink and a Granny Smith juice drink (in contrast to a generic apple juice drink).

It is a manufacturing technique that has been used in other categories, such as cooking and dressing oils, to create a quality/premium difference. Olive oils, in particular, are more highly valued if they are cold-pressed ‘extra virgin’ and tend to be used as a salad dressing whereas olives that have undergone more intensive heat treatments to extract the oils tend to be used more as a cooking fat and, therefore, attract less of a price premium.

RelevanceThis case study highlights how technological development can create the basis for innovation and NPD.

Source: Coldpress™

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Fioretto

Background“Why is there no long-stemmed cauliflower?” was the question asked by Tokita Seeds, a Japanese seed breeding and growing business. As a result the company went about developing a new variety of cauliflower – called Fioretto (‘flowerets’ in Italian) – which resembles purple sprouting broccoli in its shape and stem colour but with white, instead of purple, flowers. This new cauliflower variety was nominated for a Fruit Logistica Innovation Award, 2014.

RelevanceThis case study highlights how varietal and seed development can lead to NPD.

Source: Google

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Becel pro-activ

BackgroundFunctional yogurt drinks are designed to be consumed daily. However, when Unilever originally launched their cholesterol lowering product “Becel pro-activ” they were sold as a pack of six, not seven, which is out of kilter with the overriding trend for people in the UK to shop weekly.

This meant that most people either had to make a second purchase or miss a day until the next return trip to the supermarket. Spotting this error, Unilever re-designed the pack size to include seven bottles and re-launched the product on the market.

RelevanceHighlights the importance of launching products that fit with people’s consumption patterns.

Source: Google

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Artisanal deli product

BackgroundThe ‘ABC Deli Company’ (name anonymised for confidentiality) had been making a tomato based antipasti product using a traditional artisanal method for several years. The production cycle from start to finish took 7 days involving several process stages including harvesting, washing, drying, smoking, infusing and packaging. The end product was extremely high quality and local sales increased substantially, which led to an opportunity to sell the product over the Deli counter of a national supermarket chain.

ProblemThe traditional artisanal method would not yield the volume required by the supermarket chain. The ‘ABC Deli Company’ therefore had to re-engineer the production cycle using new processing techniques to cut the production cycle down from 7 to 3 days. They enlisted the help of a team of external product developers and a pilot plant to experiment with new manufacturing equipment and processes that could speed the process up yet maintain the high quality, artisanal nature of the product.

SolutionThey were able to dramatically reduce the drying, smoking and infusion processes using modified atmosphere storage units, in effect speeding up what would happen naturally under normal conditions. The product was then subjected to a range of analytical and sensory tests using the product produced by artisanal methods as the control sample. Whilst the reformulated product did not exactly match the original product, the difference was marginal and was of an acceptable level of quality to justify full commercial trial.

RelevanceHighlights the importance of producing a product at commercial scale prior to launch. Source: Google

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Nescafe Australia

BackgroundThere has been a rapid increase in fresh coffee consumption in the home, as technology has enabled consumers to create café-style products in the home. This has represented a significant threat to instant and granulated coffee.

Nescafe Australia wanted to reinvigorate instant coffee and, rather than relying on internal teams to generate ideas, they used crowdsourcing platform eYeka to ask consumers for their ideas.

The brief “How could we reinvent instant coffee, prepared at home, to keep the category relevant and attractive?” was posted on eYeka’s website offering cash prizes for ideas that led to implementation.

RelevanceHighlights the value of engaging external people in the idea development phase.

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Waitrose Soffrito Mix

BackgroundThis product builds strongly on consumer demand for simplicity and convenience. According to the product description it contains “Finely diced fresh onion, carrot and celery to get soups and stews off to a fast start”. The front of pack description makes it very clear as to how and why consumers should use it so that they see the product as part of their solution i.e. how to prepare meals from scratch quicker.

RelevanceHighlights the importance of clear on-pack visuals and communication.

Source: www.waitrose.co.uk

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KitKat New Product Signage

BackgroundThe confectionery category is highly contested and dominated by major global brands that invest heavily in marketing to generate sales. The picture below is a good example of making it extremely clear to consumers that Nestle have launched a new KitKat product and where it can be found. Without such clear signage, there is a risk that consumers do not see the product to be able to buy it.

RelevanceHighlights the importance of maximising the support for new products once launched.

Source: FDIN

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ZEO – innovating and maintaining core brand purpose

BackgroundFreedrinks is a UK-based start-up SME soft drinks company that develop and produce a range of non alcoholic carbonated drinks for adult consumers. The drinks are made using natural ingredients and are aimed at consumers who wish to have an alternative to the ‘on tap’ soft drinks available in bars and restaurants.

InsightThe idea behind the innovation was that existing farm shop carbonated drinks did not have enough differentiation to make them a success in the mainstream retail sector. ZEO was developed with a key focus upon the natural ingredients used in the drink which would attract its core target market of women. The desire was for the drink to be consumed on its own, however, when a pilot trial launch was undertaken it was discovered that consumers preferred to consume it as a mixer with an alcoholic drink.

SolutionFreedrinks were unhappy with the results of the trial as consumption of the drinks was not in line with the company’s core vision for the product. As a result, a recipe change was made to the drink to increase the amount of fruit used which, in turn, created a ‘softer’ taste to the drink and made it less appealing as a mixer.

When the product was launched, a marketing campaign was developed to further enhance the company’s values. This involved a stand alone website with interactive features, social networking tools and sponsorship of the England netball team.

Source: Google

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Links/resources

• This section of the document contains a list of organisations and information sources that may be useful in the process of developing new products.

• This list is by no means exhaustive but serves as a useful starting point for horticulture businesses in Wales to utilise external support, guidance and information.

Nims Fruit Crisps – Fruit Logistica Innovation Award nominee, 2014

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Links/resources Source Information/support Link

Defra Commodity and food data/information www.defra.gov.uk

Dunnhumby Uses data to develop market and consumer insights https://www.dunnhumby.com/uk/

East Malling Research A major organisation in the UK for research on horticultural crops and plants and their interactions with the environment

http://www.emr.ac.uk/

Eurofruit Wide range of market and industry information covering European fruit sector

http://www.fruitnet.com/eurofruit

Flower Council of Holland Provides consumer information on the cut flower and house plant market.

http://www.flowercouncil.org/uk/holland/

Food Centre Wales

(Horeb Business Park, Horeb Llandysul,SA44 4JG)

- Taste panels- Shelf-life assessment- Label declaration- Cooking instructions- Factory design and layout- Equipment sourcing- Pilot plant (small industrial scale)- Process (re)design- Technical advice support by technologists- Building is Soil Association certified- Quality systems (HACCP, BRC, Organic cert.)- Frozen and chilled storage area- Incubator units

http://www.foodcentrewales.org.uk/

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Links/resources Source Information/support Link

Food Technology Centre

(Coleg MenaiFfordd PenmynyddLlangefniAngleseyLL77 7HY)

- Meat/fish processing hall (controlled atmosphere climate chamber, vacuum packer, slicing machine, industrial mincer etc.)- Dairy processing hall (cheese vats and press, HTST Pasteuriser and Separator, Homogeniser, Butter churn and an ice cream maker)- Prepared foods hall (cooking, blast chilling and freezing, MAP/CAP packaged products, bakery, confectionary, ready meals, fruit and vegetable processing)- Laboratory (including tests such as nutritional analysis, water activity and texture analysis )- Training (Basic Food Hygiene, HACCP)- Test Kitchen

http://foodtech-llangefni.co.uk/en/

Food Standards Agency Complete of current FSA legislation and directly applicable EU regulations

http://multimedia.food.gov.uk/multimedia/pdfs/enforcement/foodlawguide.pdf

Fresh Produce Journal Regular and up-to-date market information on the fresh produce industry

http://www.fruitnet.com/fpj

The Grocer Provides grocery retail information and commodity information

http://www.thegrocer.co.uk/

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Horticulture Development Council

Horticultural arm of the Agricultural and Horticulture Development Council. Provides market and technical information to growers

http://www.hdc.org.uk/

Institute of Food and Science Technology (IFST)

A qualifying body for food professionals in Europe and the only professional body in the UK concerned with all aspects of food science and technology

http://www.ifst.org/members_networks/get_involved/professional_food_sensory_group/

Institute for Grocery Distribution (IGD)

Represents UK grocery retailers and publishes a wide range of information about the sector and the grocery supply chain

www.igd.com

Intellectual Property Office Receive advice and information on intellectual property and register patents, trademarks, copyrights and designs

http://www.ipo.gov.uk/

International Society for Horticultural Science

Up to date information on global horticultural research. Approx 7,000 members in over 50 countries

http://www.ishs.org/

The Institute of Horticulture The authoritative organisation representing those professionally engaged in horticulture in the UK and Ireland

http://www.horticulture.org.uk/

Kantar Worldpanel Extensive and detailed market data covering all of UK food and drink sectors

http://uk.kantar.com/

Leatherhead Food Research Technical food consultancy business. Services include: Food Safety, Nutrition, Food Innovation, Regulatory, Sensory, Consumer & Market Research

http://www.leatherheadfood.com/

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Office for National Statistics National statistical database. Wide range of data from wider macro-economic data to annual / regional business survey data

www.ons.gov.uk

Organic Centre Wales Data/information on the organic sector in Wales http://www.organiccentrewales.org.uk/

Potato Council A division of the Agriculture & Horticulture Development Board, and is committed to supporting the British potato industry. Provides market and technical information to growers

http://www.potato.org.uk/

Promar International The U.K.’s largest Agricultural and Agri-Food consultancy http://www.promar-international.com/

Tuinbouw (Commodity Board for Horticulture, The Netherlands)

Market information and data is updated periodically http://www.tuinbouw.nl/

Wageningen University World leading university and research centre. The university has a horticulture supply chain group undertaking work such as glasshouse production, modelling crop growth and productivity, impact of post-harvest processes

http://www.wur.nl/UK/

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Zero2Five

(Cardiff Metropolitan UniversityWestern AvenueLlandaffCardiffCF5 2YB)

5 main centres including:- Meat and fish centre - Bakery and confectionery centre- Dairy centre- Hygiene Centre- Innovation Group

Service range includes:- New product development- Market research- Sensory evaluation- Shelf-life studies- Product innovation testing- Packaging (concept design, shelf-life impact, suppliers etc)- Focus groups research- Quality testing/evaluation

http://www.zero2five.org.uk/content/public/Home/Zero2FiveFoodIndustryCentreHome.aspx