The four basic stages in the PD Process are the same for all food product
development, but there are significant differences in the activities, techniques
and timings for new product development in the primary production, industrial
food processing, and food manufacturing industries.
Primary production’s product development is based on either a breeding
process from cultivated varieties or capturing a new species from the wild. The
development of new plants, animals and fish takes a great deal of time and
depends on times of growing and harvesting. There can be a general product
concept based on perceived consumer or industrial wants and needs, and on
technical knowledge to identify the possible parents for the new varieties. But it
takes generations to develop the suitable variants. This is described in the first
Case Study on starting a new apple variety. The industrial ambience is of a
farmers’ cooperative fruit processing and exporting enterprise working with a
national horticultural research institution. The second Case Study looks at
another fresh fruit project, on mangoes. This time the emphasis is strongly on the
consumer, using statistical and other quantitative techniques to build up the
consumers’ preference image, and then to use this consumer image and
information in assessing current varieties, and moving towards improvements.
This is in the framework of government/university research, a national growers’
organisation and private exporters and marketers.
Industrial food processing’s product development is very strongly processing-
based, both in the ingredient supplying and the buying companies. Food
manufacture is usually directed towards providing a wide variety of products for
consumers, which is continually changing. There are major differences between
the activities in the PD Process for industrial and consumer products, as shown
in Fig. 7.1.
7
Case studies: product development in the
food system
The industrial product, a food ingredient, is usually developed in
collaboration with the processors or manufacturers who are going to use the
ingredient in the production of their product. These companies may provide the
product design specifications or may indicate some of the qualities they need;
therefore the PD Process is highly concentrated on process development and the
customer does the field-testing. This is illustrated in the third Case Study in
which development of an ingredient, a whey protein isolate, sophisticated both
in its processing and in its market, is described. Research is carried out by an
industry-wide research institute working with a university and a large farmers’
cooperative dairy company and dairy marketing organisation.
The fourth Case Study is the development of a consumer product, a new
variety of sauces. The development was to establish a new product platform with
a number of individual lines, in a large factory unit of a multinational food
manufacturing company, and to sell these sauces initially locally, and then for
export to major international markets. This product development was totally
private enterprise.
In studying these case studies, differences in activities in the four stages of
the PD Process can be seen, caused by:
Fig. 7.1 PD activities for consumer and industrial products (From Earle and Earle,
Building the Future on New Products, C223 LFRA Ltd, 2000, by permission of Leatherhead
Food RA, Leatherhead, UK).
318 Food product development
? markets for which the products are designed;
? technology available and used;
? time taken for product development;
? costs of product development;
? priorities set by the various parts of the food system.
The Case Studies cannot be taken as typical of PD Processes because each has
its own special features, but they do illustrate generic features.
7.1 Primary production: creating a new apple variety
Why does a consumer choose a particular apple and buy it, or indeed choose an
apple at all rather than a pear or a plum? Maybe because it looks bright and
attractive, maybe because it looks fresh and crisp, it is available or cheap, or it
looks much the same as it always has and earlier experience was favourable. Or
maybe because, over and above lots of positive attributes, it is novel and cries
out to be tried. And then having bought it, if eating impressions are favourable
and it is indeed appealing in taste, flavour and crispness, then the favourable
image is retained and it is the variety that goes on being bought especially if the
apple is distinctive. So in the striving and seeking to secure and gain market
share there is a great potential premium from a desirable new variety.
7.1.1 Product development for a new apple
The area for product development was first identified and then the possible
parents chosen. In the next generation, there were many variations, screened on
technical analysis of:
? product qualities such as sensory characteristics, nutritional value, composi-
tion, use, safety;
? production qualities such as production difficulties/ease, disease resistance,
yields;
? handling qualities such as deterioration after harvesting and on storage.
The cultivars in the first generation were screened, and the most suitable for
further development chosen for growing in the next season. This further
generation grown in the next season was again screened. This time, not only was
there technical screening but also the production and marketing experts selected
for suitability for production and marketing. This growing and screening took
several generations and significant time, in the order of years. On reduction to a
few selections, the qualities were related to the market conditions at that time.
While senior people in the company made the final selections, they were assisted
and guided by consumers and distribution/retail customers who evaluated the
new fresh products. Production was started, multiplied with commercial
growers/farmers and then the first crop test marketed on a small scale.
Case studies: product development in the food system 319
Creating a new and successful horticultural variety is a long search through
genetic possibility, inheritance, disease resistance, keeping quality, followed by
the trade-offs of one attribute with another; and so all of these aspects had to be
gone through. This went on over many generations of seedlings which, after the
final selection was narrowed right down, has then to grow to trees and bear and
proliferate. So the exercise was very much one of seeking to establish just what
it is that the target consumers ask from their ideal apple, and then trying to
match this against what nature, aided by the skill of the plant breeder, will allow.
All this took 15 years or so, making it an especially long-term undertaking. It is
also an expensive one in that beyond the visible costs is the inevitability that
money risked and spent now can receive no return for all those years. As a
project this injects its own special features, while at the same time all the
standard routines are still just as necessary as in any other development of a new
product.
New Zealand for many years had a ‘single desk’ exporter and marketer of
bulk apples working cooperatively for all of the apple growers. The Horticulture
and Food Research Institute of New Zealand Ltd (Box 7.1) carried out its variety
development and licensed ENZA as a company to market its varieties.
Box 7.1 Horticulture and Food Research Institute
(HortResearch)
HortResearch is extensively involved in developing new plant varieties. We
have expert breeding capability in a range of fruiting, ornamental, and agro-
forestry crops. Our plant breeders work with industry in order to develop new
varieties and rootstocks to provide cultural or market advantages for growers.
These activities are backed by extensive in-house scientific capability in
sensory science, genetics and plant physiology to assist in making selections
to suit the environments, end uses and tastes of different cultural groups both
within New Zealand and around the world.
The fruit breeding programmes aim for variety, flavour, texture, storage life,
appearance, productivity, pest and disease resistance and climatic adaptation.
HortResearch is a world leader in apple cultivar development. Examples of
our success are the Pacific apple series (‘Pacific Rose’, ‘Pacific Beauty’, and
‘Pacific Queen’) marketed by ENZAFRUIT. This new variety development is
also well supported by technical back up in orchard production, integrated
pest management, postharvest handling and associated capabilities within
HortResearch.
Source: Adapted from a publicity letter from Dr Ian Warrington, CEO, HortResearch.
320 Food product development
The stages and approximate timing of the development of Pacific Rose are
shown in Table 7.1. This indicates the very extended time scale, arising from the
intervals necessary for the seedlings of each successive generation to grow so
that their fruit can be evaluated.
Plant breeders normally talk about development cycles and these have been
arbitrarily related to the PD Process. Because of the nature of developing apples
there is not an exact date for launch, but the market is expanded in a rolling
launch as the fruit becomes available.
7.1.2 Stage 1: Product strategy
Management decided that the existing varieties had been on the market for long
enough, and to provide an edge and a stimulus a new variety was needed. To
some extent this is a continuing search. But it gained added stimulus as the older
varieties were a bit stale, and market share would surely dwindle as the
competition sought to kindle its own novelties. Apart from the very broad
concept, a new apple, plant breeders thought back over the whole gamut of
experience with apple varieties. They tried to single out characteristics that
Table 7.1 Timetable for the development of Pacific Rose apples
1st cycle (product strategy)
Discussion from ‘Pacific’ markets of need for
blush apples
6 months Grown in glasshouses
20,000 seedlings
Expert selection
18 months
Grown in open ground 8000 seedlings
Selected on resistance to ‘blackspot’ and
‘powdery mildew’
2nd cycle (product design and process development)
Grown in fruit selection orchards 5000 seedlings
4 years
Selected on fruit characteristics
Grown on two sites 100–200 seedlings
Selected by plant breeders, pomologists,
2 years on fruit and growing characteristics
Judged for market suitability 10 seedlings
3rd cycle (product commercialisation and product launch)
1 variety selected
2 years Growing expanded
1993 Seedlings distributed to growers 1000 cartons
1994 Pomology developed, storage trials 5000 cartons
1995 Multiplied by commercial breeders/growers 22,000 cartons
1996 Commercial production 104,000 cartons
Case studies: product development in the food system 321
might be applied usefully to build a new creation. This was reinforced by market
insights such as possible gaps in present offerings, fashions as revealed by sales
trends, problems exhibited by present varieties, competitors’ activities, and so
on. They did not know exactly what was wanted but formulated a group of
attributes, built on a range of good qualities, and sought to assess these and
maximise them by selection from trial seedlings of defined types (cultivars).
For example appearance is a major purchase determinant, and so a target
colour and configuration were selected. In this case it was decided that the new
apple should be a ‘blush’ apple, one in which red and yellow colorations shade
into one another rather than uniform colour or stripes. Decisions were taken of
targets for sweetness, acidity, and acid/sugar ratio, flavour, fruit shape, texture
and crispness. Added are those properties that are central concerns to the
growers and handlers such as: disease resistance, yield and size consistency, and
keeping and storage qualities, and these must be optimised for all apples. A
major consideration was the time scale, commitment to perhaps 10–15 years of
work overall to build a new variety to commercial market success.
7.1.3 Stage 2: Product design and process development
The first cycle of selection was rapid screening of seedlings, from about 20,000
in glasshouses (six months) reduced to 8000 in the open ground nursery through
selection for resistance to blackspot disease (18 months).
In the second cycle, about 5000 per year, after selection for resistance to
powdery mildew, were planted out in the fruit selection orchards (4 years).
About 2% were selected for fruit characteristics and these were then carried
forward to the next cycle. A selection index was set up, and made into a scoring
regime. The various desirable attributes were first established and then scored by
members of the team as illustrated in Table 7.2, generally on a scale of one to
ten, with ten being most desirable. Table 7.2 shows the scores for one apple
cultivar. All those cultivars with an ‘overall quality rating’ less than seven, when
aggregated and averaged, were discarded.
In this particular case, the designation moved from a concept, to a tree
number, to the final name Pacific Rose (technically the variety name was Sciros,
marketed as Pacific Rose). The particular chosen characteristic factors, plus the
desirable and more general factors, were pursued through all the generations and
the selections. Some of these factors had sometimes, and regrettably, to be
traded off to a degree as the selections evolved. To cope with such problems
value hierarchies were established, and used to guide selection, and reviewed
from time to time.
7.1.4 Stage 3: Product commercialisation
As well as consumer and grower characteristics, consideration had also to be
given to vital genetic aspects. These included factors such as the heritability of
selected attributes such as mildew resistance, because at some stage large
322 Food product development
Table 7.2 BreedBase Report
Family A040 Seedling R04T119
Crop type Apple
Fruit shape Flat
Colour
Background colour Yellow
Overcolour Red
% Overcolour 0% |_________3____________________| 100%
Colour pattern Stripe
Colour intensity Light |______2_______________________| Heavy
Lenticel: Inconspicuous |_________3____________________| Very
Conspicuous
Flesh
Flesh colour Cream
Flesh firmness Soft |_____________________7________| Hard
Flesh crispness None |_____________________7________| Very
Flesh grittiness Soft |0_____________________________| Hard
Flesh flavour
Juicy Dry |________________________8_____| Very juicy
Sweetness Nil |_______________5______________| High
Sourness Nil |_______________5______________| High
Aroma Delicate |_______________5______________| Rich
Astringency Nil |0_____________________________| High
Bitterness Nil |0_____________________________| High
Skin
Skin thickness Thin |_______________5______________| Thick
Skin greasiness Dry |______2_______________________| Greasy
Skin texture Non-chewy |____________4_________________| Chewy
Skin flavour Not significant
Harvest Date 12/3/96
Storage Days 107
Weight 176 g
Maturity OK
Eating Quality Very good
Attractiveness Poor |_____________________7________| Very good
Overall quality Very good
Comments
Note: The numbers and comments inserted represent assessment of a particular seedling.
Source: From HortResearch, Goddard Lane, Havelock North, New Zealand.
Case studies: product development in the food system 323
numbers of plants will have to be propagated from the successful selection and
then established and grown in orchards. Although the key participants were the
plant breeders, it was thought to be very important that the scoring be done by a
wider-based group. For practical reasons in the initial stages it tended to be a
laboratory team but as soon as the earliest stages were completed a wider group
was used. The work was monotonous and repetitive so that team numbers are
limited but, by their working to a standard scoring system, numbers of selected
candidates were reduced to the order of one hundred.
For the Pacific Rose, these selections were then grown in duplicate on two
sites and the product apples held 100 days at 0 oC in a cool store and for 7 days at
ambient temperatures, to observe storage characteristics. Meetings were held,
bringing in other fruit scientists and ENZA staff to widen the vision, and
including fruitgrowers and supermarket operators to seek feedback, but still on a
largely local basis.
Then in the third cycle the best 10 out of 200 were selected for consumer
trials and finally characteristic clusters were assembled where 75% or more of
the panel opted for a particular attribute, such as acidity combined with
sweetness.
Finally, one variety was chosen by senior management for launching. Trials
were then run with selected supermarkets, taking about a thousand cases and
trying the market (3–5 years). Pomology work was accelerated, assessing the
required optimum growing environment and the hazards. Another important
consideration at this stage was naming. The final choice, after a good deal of
investigating and agonising, was Pacific Rose. This name seemed to have very
many positive overtones and manageable problems. (After its endorsement by the
market, it became the forerunner of a ‘Pacific’ platform of similar apples as the
general name and style were clearly found to be very attractive and distinctive.)
During the last two years or so of the commercialisation phase, as well as
being checked out locally, small parcels of fruit were dispatched on a trial basis
to agents overseas. ENZA has main agents in the UK, Belgium for the rest of
Europe, the USA, and in Singapore for the Asian market. These were used for
distribution, and also for market intelligence and feedback. The message from
these people was very positive. In fact from the marketing viewpoint it was
somewhat too positive and was too widely disseminated. This generated an
enthusiasm among growers in particular, which stimulated plantings. So in time
production threatened to flood the local market and in turn to push the overseas
market beyond its powers of initial absorption.
7.1.5 Stage 4: Product launch and evaluation
Finally the trees of the selected variety were multiplied to the extent that
commercial growers could enter into production of the quantities needed for
initially the launch, and then be ready for the full-scale farming, of a successful
new variety. Commercial quantities of the new apples were dispatched to the
overseas agents. They in turn fed them to wholesalers and retailers, initially
324 Food product development
selected as those, and in those areas, likely to be most receptive. It was
commented that little direct consumer testing was carried out, as results from
sample trials correlated highly with agents’ opinions which were quicker and
cheaper to obtain. The apples were then sent to the trade buyers in retail markets
and supermarkets.
The first great hurdle was to get them on the supermarket shelves: once on,
customer demonstration and tastings intensified their visibility. It was found that
the most receptive area was Asia, the next North America, with the UK a little
less enthusiastic. The rest of Europe tailed with comments seeking more
consistent fruit quality and more flavour. The customer balance settled to about
40% Asia, 30% North America, and of the remainder most to the UK. The quite
dramatic build up of production of Pacific Rose apples is shown in Table 7.3.
This also indicates the pressures that arose to move such rapidly increasing
quantities through the markets.
It was important to seek to safeguard, as far as possible, the commercial
aspects of the development. So plant protection rights were sought for the
variety. This essentially was so that the considerable costs of the development
could be recouped and also reasonable returns made on the investments of
resources and time. It became evident that this protection was significant. Even
lawsuits and cloak-and-dagger stuff followed, with some overseas competitors
seeking to cash in, unauthorised and without paying, on an obvious success.
It was evident early on that in order to maximise the returns it would be
desirable to have overall control of production and marketing. Enthusiasm had
brought large early production, with risks of drowning the market and on
occasion prices had to be shaded to clear fruit. In hindsight this served to spread
and deepen overall consumption, but at the time it looked like expensive
advertising if not just losses. Closer matching of production to market would
also have allowed more time for the details of growing the variety, with attention
to fruit quality and consistency, those prime demands of good supermarket
operators. The balance of production and demand is the great intransigent
imponderable of all agriculture, and the build-up of supply of Pacific Rose
created supply pressures which later variety releases will seek to reduce by
closer control of the growing of new varieties.
Another interesting further extension of the development was to seek out,
license and harmonise with selected overseas growers, particularly ones who
could produce to complement New Zealand production. For example, by
spreading some of the growing to the Northern Hemisphere, year-round
production was organised so as to even-out supply to satisfy and sustain
customer demand.
Table 7.3 Production of Pacific Rose apples (thousands of 10 kg cartons)
1992 1993 1994 1995 1996 1997 1998 1999 2000
0 1 5 22 104 120 173 353 950
Case studies: product development in the food system 325
Later, feedback from the markets was used as a base for the breeding of
further members of the variety, and so to build the offering and the acceptance
and the sales over an extended platform of similar, but distinguishable, apples.
The platform name, ‘Pacific’ was retained, moving to ‘Pacific Queen’ and
‘Pacific Beauty’ to differentiate newcomers as they appeared.
Domestic sales were built up simultaneously, but though important they were
only part of the overall business of the industry. They could also be used as a
vehicle for sizes, shapes and configurations less attractive to the main line
demand which could therefore be selective of premium fruit. So a national and
international market was established which became considerable and satisfac-
tory.
This example illustrates how a substantially long-term development of a
product with particular problems, those of setting up and evaluating a new
horticultural variety, still follows the general principles of product development.
One of the problems in developing new plant products for the consumer market
is the input of the consumers. At one time the marketing people and the breeders
decided that they knew what the market wanted and therefore all testing up to
the small test market was done by them or other people in the research station
and the company. In recent years, great efforts have been made to bring the
consumers in earlier. Obviously they cannot test the many hundreds of samples,
but they can determine the concept for the new product. Therefore it is to them
that the greatest effort is directed, trying to understand as precisely as possible
what it is that they might want from a variety which still has to be produced.
Then there is the slow process of selecting and building up fruit, recalling the
time consumed between selecting and actually growing the next generation of
apple.
Think break
1. Consumers determine market success – reflect on this statement, its accuracy
and its implications for fresh fruit product development.
2. Consider carefully and weigh the relative advantages and disadvantages of
using available local and expert opinion, contrasted with randomised consumer
research, in exploring the required eating characteristics, flavour and
appearance in the PD Process for fresh fruit.
3. This study is of a very long-term exercise for a corporate entity, with increasingly
limited product flexibility as the development progresses. What are the implica-
tions of this for product development management, organisation and operation?
4. How important do you think metrication is as a determinant in decision making in
the PD Process? Therefore, because metrication is often difficult, and
sometimes very difficult, how much management and technical effort should
be devoted to it relative to the exercise of less formal and more qualitative
judgement? Short term for a product? Long term for an organisation?
326 Food product development
7.2 Development of Thai mango products and their
competitive advantage in export markets
Mangoes are an attractive traditional fruit produced in quantity in Thailand.
Many Thai varieties have been produced, and from time to time overseas
varieties have been grown. In addition to the major local market, quite a
substantial export trade has grown up which is of economic importance to the
country. The export trade had grown up somewhat arbitrarily. So a clear
opportunity was perceived to look more systematically at what was available,
and to seek, using quantitative techniques, to describe and determine those
varieties that were most attractive to overseas customers, so that overseas sales
could be further expanded and marketing improved. It was product development
through systematic selection and improvement, with particular reference to
consumers and their preferences.
Planning of the development was a collaborative undertaking between the
Thai Departments of Agriculture and Agriculture Extension, researchers at Khon
Kaen and Kasetsart Universities, and large mango growers and exporters. After
discussion, the main brief for the study was determined as:
? select the most suitable ripe and fresh varieties for export to three markets,
Japan, China, and the Middle East;
? find the best potential distribution channels; and
? develop suitable brand names for the selected varieties.
This was to be based on consumer preference studies, and also supported by
characterisation of the chemical properties such as aroma and volatility, and
physical properties such as shape, and stone size and distribution, which would
be correlated with the consumer preferences. The outcome would then provide
information on the relationships between customers’ preferences and measur-
able attributes of the fruit, which could be used by growers, plant selectors and
breeders, and exporters and marketers, to develop the Thai mango export
industry.
7.2.1 Study design and development
Both to handle such a substantial project and to distribute tasks to appropriate
people, the study was divided into ten activities. Each activity was allocated to a
group of researchers, though some members were common to several groups.
They worked in appropriate localities, laboratories and departments, and under
the overall guidance of the Mango Project Leader. The activities are listed in
Table 7.4.
Five varieties of Thai mangoes, major ones being commercially grown, were
studied, along with two introduced varieties. Using the same batches of
mangoes, tests were carried out on the chemical properties, physical properties,
aroma volatiles and consumer preferences, correlating these with the measured
properties. These in effect combined into one aspect of the case study. Another
Case studies: product development in the food system 327
separate aspect looked at the best brand name and attribute descriptions, for
commercial and marketing purposes. Consumers studied were from Thailand,
Japan, China, Hong Kong and the Middle East.
For various practical reasons, principally availability of suitable subjects and
materials, the numbers of consumers testing varied in different parts of the tests.
There was always account taken of the statistical basis and needs of the study,
and the results were statistically assessed to justify the conclusions.
7.2.2 Study implementation
Selection of varieties
To start the study, a group gathered information on the varieties of mangoes that
were produced in Thailand and also overseas. These were then carefully con-
sidered with respect to usage, production technologies, transportation and storage
durability, and eating characteristics. The available literature was inspected, and
mango growers and the trade were canvassed to gain requisite information so that
the group could select the most promising varieties, those most likely to form the
basis of a viable and growing industry, for further investigation in detail.
Physical properties of the fruit
One group looked at physical properties which were fruit weight, fruit size, seed
size, seed weight and thickness, skin and flesh weight and thickness, skin and
flesh colour, and flesh texture.
Chemical analysis
Another group looked at chemical contents and measured moisture, total soluble
solids, acidity, sugar, beta-carotene (vitamin A). Also the sugar/acid ratios were
noted.
Chemistry of flavours
Flavour constituents were measured including sugars, acids and aroma volatiles.
For example, they showed the extent, as the fruit ripened, of the decline in the
Table 7.4 Mango product development study workgroups
1. Mango variety and industry survey
2. Physical properties – size/shape/colour
3. Chemical analysis – constituents/ripening
4. Chemical properties – analysis and flavour
5. Quantitative descriptive analysis – relationships of sensory attributes
6. Consumer preferences – shape/colour/texture/flavour
7. Consumer preferences – correlation with sensory/analytical
8. Consumer preferences – national likes/dislikes
9. Commercial – target markets/channels/distribution
10. Marketing descriptions – brand names/slogans/labelling
328 Food product development
sucrose content and the increase in fructose and glucose. Succinic acid was the
most prominent acid, while malic and citric acids were also important;
individual contents of these acids varied and could be used as indicators of
varieties. Aroma volatiles were measured by gas chromatography. Detailed
contents were explored, and the total volatile contents were found to vary with
varieties.
Consumer preferences
Consumer preferences to determine the degree of liking on a nine-point hedonic
(liking) scale, were carried out in a central location test, on varieties of Thai
mangoes using Chinese, Hong Kong, Japanese, Middle East and Thai
consumers, settled in Thailand. The objective was to select the best Thai
mango for export, based on the sensory characteristics most preferred by the
target consumers. The sensory characteristics used, for the fruit and the flesh of
the mangoes, were skin colour, fruit size, flesh texture and overall liking for the
flesh. Overall the results showed that the fruit shape, fruit aroma and skin
appearance were more highly correlated with overall liking than the other
attributes. A single variety emerged as the preferred one overall, though to some
extent rankings of mangoes varied with the attributes.
National preferences
The degree of liking and disliking for sensory characteristics of the ripe fruit and
the flesh of two varieties of the mangoes were explored with about 600 Chinese
and 400 Japanese tourists in Thailand. Attributes such as skin appearance, fruit
colour, fruit size and shape, flesh colour and flavour, and fruit aroma were
covered, as well as overall liking; using hedonic scales. From this emerged
attribute profiles for the varieties, and one variety preferred by both groups.
Systematic attribute relationship analysis
A systematic comparative technique known as quantitative descriptive analysis
(QDA) was employed by another group to look at six of the mango varieties and
to build associations between the sensory attributes of the varieties. The results
indicated that the difference among fully ripe mangoes was most pronounced on
the perception of fruit size, weight, thickness and fruit aroma strength. This
showed, for example, that the variety that was emerging as the preferred one was
the smoothest, juiciest and most tender, but not the biggest, heaviest or thickest,
nor did it have the heaviest fruit odour.
Conclusions about the fruit
Overall from these experimental results a variety emerged which on balance was
preferred by the majority of consumers from each of the countries sampled. The
preferred variety, both fruit and flesh, was the Num Dok Mai See Thong mango,
followed by Rad and Ma Ha Cha Nok. Additionally, and importantly, this choice
was for reasons that could be differentiated and substantiated. The sensory
results were supported by extensive information on the fruit, the flesh and the
Case studies: product development in the food system 329
association of desired mango attributes. The study results therefore provided
clear signals statistically based on consumer responses. The signals were to the
growers for plant selection and cultivation, to the trade for technical details in
handling, storage and exporting, and to the plant breeders for selection of
characteristics on which to concentrate and for further experimentation.
7.2.3 Commercial aspects
Brand image
A strong brand name and image is commercially powerful, so one group was
given the task of carrying out consumer research that would enable these to be
created most effectively in the target markets. Brand names and brand concepts
on the fresh fruits in the market were collected from the literature, from the trade
by interviewing experts and exporters, from market observation, and from group
brainstorming. The brand concepts so obtained were then used to develop
questionnaires for the field survey. The design of artworks, building selected
brand names into logos, brand stickers and label materials for packages, was
then explored by a group of experts, and referred to the orchardists and
exporters. The survey showed that significant attitudes included health, nutritive
value, colour, convenience of buying, texture, ease of preparation and of course
price. The brand investigation showed that the sensory characteristics concerned
with the fruit were the most significant, followed by aspects concerned with the
consumer such as nutrition and price and prestige. Box 7.2 indicates the general
conclusions that arose from consideration of the brand name image. From this
work the preferred brand name that emerged was ThaiMango, and the selected
slogans ‘Your Fresh Taste’ and ‘The Fresh Taste’.
Market channels
Another group investigated distribution channels. Their interest took in the
target markets:
? potential physical distribution channels;
? patterns of marketing of mangoes;
? volumes and values of these products; and
? potential market channels and the role of fresh mangoes.
Information came from documents, opinions of exporters and mail surveys of
importers. Patterns of distribution and delivery investigated included land, sea
and air transport. Channels of sales to agents, to trading companies, to
institutions, to retailers such as supermarkets, convenience stores and fresh
markets, to domestic consumers and to institutions were all investigated. Finally
management and financing alternatives, such as joint venture companies, were
identified. These patterns of trade often differ from one country to another, and
so it was necessary to look in detail at these in each of the countries.
Government regulations were very important. Applicable regulations took many
forms and included inspection, treatment and certification measures, and also
330 Food product development
fiscal rules such as entry taxes and tariffs which were generally specific to each
country.
7.2.4 Launch
The equivalent of the launch for this case study was a combination: of
presentations of results and conclusions, of publicity, and of consequent action
by officials and by the various elements of the mango trade.
Box 7.2 Mango brand name research conclusions
The results from a literature review, and observing both local and overseas
commercial fruit brands, showed that the important concepts of creating
brand name are the source of fruit, good quality, good taste, freshness,
nutritious properties and relation to the environment. From interviewing Thai
managers and exporters, the important concepts of creating brand name
should be merit (goodness), scale, enterprise or company name, and levels of
quality.
Experts said that ‘no one has created a brand name which is unique and
relates to the mango. Most brands have been created for remembering,
without adequate concern for the mango characteristics. However brand
names may or may not be necessary because they also depend on the selling
system.’
Marketing experts suggested that the brand name should be easy to
pronounce and remember, the brand mark should be a Thai-identified
symbol, and the slogan should relate to buying decision factors.
Attitudes to mango and buying decision factors of Chinese, Japanese and
Middle East tourists were surveyed. The results showed that they think of
mango in the following ways:
– Mango consumption is good for health
– Mango is nutritious
– Mango is suitable to consume at anytime
– Mango is suitable for everyone
– Mango is available at all times
– Mango is suitable for consumption in every season
– Mango consumption indicates good taste
– Mango is a worthwhile gift
Positive buying decision factors included: without toxic substances, smell of
the fruit, taste, colour of the fruit, price, convenience to buy, texture,
nutrition, ease of consumption, and availability at anytime.
Source: From Ngarmsak, 2000.
Case studies: product development in the food system 331
The first presentation was to the Mango Round Table, on which were experts
from the Thai Departments of Agriculture and Agriculture Extension, from
Kasetsart University, from large mango orchard owners, and from exporters.
After the presentation, and based on the results of the study, the Mango Round
Table made the selection of two varieties for the top markets, and allowed one
other variety with selected grades only. Subsequently the work was presented to
the public, including media and other exporters and orchardists, and it led also to
the formation of the Mango Growing Association of Thailand. Other meetings
were called, at which planning was started for extension of the areas of
production and for continuation of the research. So this product development has
injected a new dimension into the mango export programme for Thailand.
7.3 Industrial products: PD Process and management for
whey proteins
The New Zealand dairy industry is basically a farmers’ cooperative. Within it
there are dairy companies which process the milk, and they are represented on
the NZ Dairy Board which markets the dairy products worldwide. There are
several subsidiaries but two important marketing companies are New Zealand
Milk Ltd and Whey Products New Zealand Ltd. The latter is responsible for
marketing milk proteins as industrial products. There are several industrial milk
protein categories, for example, caseins and whey proteins; these are divided
into further categories according to their properties and also their uses.
Think break
1. Many product development programmes are conducted, sometimes with
successful outcomes, using little or no consumer research. They rely instead on
historical data and expertise and experts, to provide market predictions. Review
the case for and against this approach.
2. One of the problems in consumer research for the food industry is to secure a
true ‘population’ sample. In this case some use was made of expatriates and
tourists rather than home residents for the sampling. To what extent might this
make the results skewed in some way and less valid?
3. Producers of raw materials, and in particular agricultural raw materials, have
some special difficulties with new product development. To what extent do you
feel that their needs can be fitted by a standardised PD Process, and to what
extent might it be better for them either to have a standard process of their own,
or to set up ad hoc processes with each particular situation?
4. This and many other consumer surveys reveal cultural differences, which should
be taken into account in the PD Process as they may influence the success of
the outcomes. Reflect on whether cultural differences should, or need to,
influence the management of product development, and if so in what aspects?
332 Food product development
Traditionally whey is the liquid remaining when curd for cheese making has
been strained off, taking a proportion of the milk proteins. It contains a number
of useful constituents including lactose or milk sugar, a little fat and the whey
proteins, together with nearly 20 times their weight of water. In manufacture of
whey powder, both the lactose and the water can be separated from the proteins.
Because the proteins are not a single entity they themselves can be fractionated.
So, specific protein fractions can result, each with special characteristics. These
specific fractions can be characterised in terms of physical, chemical, functional
and nutritional properties that offer the potential for new food products
(Huffman, 1996).
Product development, in this case, lies in the scope for both designing the
processing, which can include separation of protein fractions and other
manipulation, and in finding worthwhile markets. Thus the product concept is
essentially technologically defined as technical product characteristics and
processing capability. The first of these uses the knowledge that whey proteins
have been shown by research to be nutritionally important and desirable in the
human diet, and the second the capacity to produce in quantity a range of these
proteins to a close functionality specification. These protein products have then
to be tailored in the PD Process to meet the needs of a market, which is
identified and explored.
The main development group was the New Zealand Dairy Research Institute
at Palmerston North, which also has overseas laboratories including one in
California, and which is a substantial research and development unit of the NZ
Dairy Board. To supplement their technical resources and skills, they worked
with Massey University through the Food Technology Research Centre on
technology, including product evaluation and model testing, and through the
Chemistry Department on ion exchange resins. They cooperated with regional
companies of the NZ Dairy Board in the USA, Europe and Japan particularly for
market assessment, and with a dairy company, Kiwi Dairies Ltd, on aspects of
the processing. Coordination was strategically vital, because of the long
development period and so many groups involved in the development, and was
effected by Whey Products New Zealand Ltd, another NZ Dairy Board
subsidiary. The sequence of the development and the activities of the different
groups are shown in Fig. 7.2.
7.3.1 Stage 1: Product strategy development
In the pre-design and development phase it was necessary to assemble
knowledge, tacit and written, from a variety of sources within the various
parties. This included:
? On the technical side –
(a) heat behaviour of whey proteins,
(b) properties and potentialities of ion exchange resins, which could
separate even more tightly defined protein constituents,
Case studies: product development in the food system 333
Fig. 7.2 Whey protein isolate time line.
(c) expected functional properties of various fractions that might be
prepared, and
(d) existing or achievable manufacturing processes which might be
challenged or improved by new ingredients.
? On the marketing/commercial side –
(a) selected market, its demands, characteristics and expected growth,
(b) available raw material, whey, its increasing supply and competing uses,
(c) expected financial returns and their stability,
(d) security of the process against competitive inroads if the project proved
successful,
(e) anticipated profitability of the venture.
So on the market side, the originality and the prospective impact of the product,
and its critical formulation were established, together with its relation to
technical advantages and to market imperatives. The NZ Dairy Board’s
international marketing network was used together with the vertically integrated
structure which gave access to a very wide range of expertise to work with
existing and potential customers, and to find what they wanted and would buy.
On the processing side the use of ion-exchange resins for whey protein
manufacture had been limited and small, worldwide, so extension of this was an
essential part of the scheme and its costs had to be investigated and firmed up.
From these preliminary investigations the product concept emerged as:
? unique, competitively robust, acid beverage component powder;
? high-protein, low-lactose/cholesterol/fat;
? made from a wholly natural product, whey.
This would be designed for the expanding sports market in the USA, Europe and
Japan. It would be produced by a process for which the basic data were
predictable or accessible, the necessary technical developments should be
achievable, and the raw materials were available. The venture should be
profitable.
7.3.2 Stage 2: Product design and process development
A number of critical product qualities emerged from the product concept that
required process investigation and development. Although some whey protein
powders had been made previously, they were a substantial distance from the
demanding specification that was deemed necessary for the proposed product
concept. This was for a higher (90%) protein content, and for much reduced fat and
lactose. To achieve these, increased use could be made of membrane separations.
These would be used to remove the larger fat globules, but ran the risk of carrying
some protein with the fat that would reduce the yield. So it was necessary to
investigate preliminary modification of the flocculation of the fat globules before
the microfiltration steps. Lactose, being a small molecule, would pass through the
membranes with the protein, but it could be broken down into simpler sugars using
336 Food product development
enzymes. Then came exploration of the ion exchange by which, after altering the
acidity, the protein could be fastened and removed from the liquid whey on the ion-
exchange resin and then subsequently unfastened and detached from the resin by
altering the acidity again. All of these steps required careful exploration so that
they would not only work in the laboratory, but also could be designed for full-
scale plant operation, controlled sufficiently tightly to meet the specifications, and
then transferred to a working factory for manufacture.
Along with the chemical composition, perhaps the most vital element of the
product specification was the functional properties of the product, those
properties that would make it uniquely suitable for its intended use and clearly
superior to the competition. Important properties were:
? very high solubility in acid solution, so that a clear, high-protein liquid with
an acidic taste would result on dissolving the powder;
? sufficiently bland flavour of its own so that added flavouring can determine
the taste of the drink; and
? demonstrated nutritive value because it is this that convinces athletes of
performance-enhancing potential.
All of these had to be built into a process that could adjust to a natural raw
material, fresh milk, that varies compositionally throughout the dairying season,
and still continue to produce from it large quantities of whey protein isolate to
the very tight specification under which it would have to be sold.
7.3.3 Stage 3: Product commercialisation
An early survey of the market had indicated that there was a real opportunity in
the acid beverage market for drinks, which at the same time as satisfying thirst,
offered on a credible base increased endurance or performance to sports people.
A prime key target was the USA, a large wealthy market where sports and
exercise were widespread and glamorous. Investigation showed a potential
business that could grow to over $10 million of sales annually. Samples were
prepared and sent for assessment to markets in the USA, Europe and Japan.
These confirmed the concept of initial concentration on the USA and that the
financial outcomes should be favourable. A strategy was prepared to pursue a
staged plant development programme so that production and demand could
increase in parallel.
The Food Technology Research Centre set up a model beverage system,
developed by the New Zealand Dairy Board’s North American subsidiary, and
this was used to screen further samples as they emerged from the technical
programme. They were also screened in the prospective markets in North
America and elsewhere. Feedback from the screening was used to guide the
continuing product and process developments. The feedback also confirmed
good market acceptability for the product. With that, the directors of Whey
Products New Zealand Ltd approved sufficient capital expenditure for a
manufacturing plant at the site of one of the major operating dairy companies.
Case studies: product development in the food system 337
There was a great deal of design and planning to be undertaken, some of the
plant being more or less standard equipment but some of it requiring novel
features including high precision in operating and control detail. Engineers were
engaged to design and to build and commission the required plant, which
incorporated new and proprietary technology to meet demanding specifications.
Final development of the ion exchange process was continued to meet the
necessary deadlines. Also work was continued on aspects of the product protein
functionality that was so critical to success on the market. Activities had to be
undertaken in parallel and in sequence, and the necessary information, and a
satisfactory trial product, had to be available as and when needed to move
smoothly to the ensuing steps of the programme.
Coordination of the entire project was from Whey Products New Zealand
Ltd. It was able to call on the vertically integrated New Zealand dairy industry
as might be needed from time to time. The team included expertise in customer
requirements, marketing, protein chemistry, ion-exchange technology and
technical aspects of proteins for acid beverages, industrial whey powder
manufacture, and product evaluation and model food system testing. A full
manufacturing scale plant was built, installed and commissioned. Production
duly started on time and on budget.
7.3.4 Stage 4: Product launch and evaluation
From late 1995 sales promotion information was fed to the chosen market. This
was essentially beverage manufacturers. It was expedited through the close
relations the NZ Dairy Board subsidiaries overseas had built up with leading
beverage manufacturers and with major food processors. Shipments of product
were started in about October 1995 so that commercial quantities would be
available to US customers in 1996. A major promotion was as a featured product
at the (US) Institute of Food Technologists’ annual meeting at New Orleans in
March 1996 where a group from New Zealand, including technical and
marketing staff, was available to explain and demonstrate the product. There
was extensive advertising in the food trade literature, and in handouts (see Box
7.3). An article on technical features of the product appeared in the American
journal, The Food Technologist, in February 1996, setting out the background to
the manufacture, and explaining the functional properties of the product,
particularly those that were seen to offer major advantages.
The results of this were seen in the sales of 100 tonnes, all of the available
product, in 1996. Confidence from this success led to the stepping up of production
facilities and capacity towards 700 tonnes per annum at the first site, and the
planning of expansions to 1000 tonnes annually. Financially, the returns were
significant in lifting the value of standard whey protein concentrate from around
NZ$4000 per tonne to around NZ$15,000 per tonne. Although the production costs
were of course higher, and the development costs to this point were over NZ$1
million, the overall returns for the industry were very satisfactory from what, not
too many years earlier, had been seen as almost a waste stream.
338 Food product development
Development was continued into both product quality and manufacturing
improvements. It came from the technical product and process developments,
which continued, and was augmented by comment and experience from
customers. A reliable product was built up, with a good market. Whey protein
isolate has continued to be a successful major product. As well as being the first
of other specialised whey products for the New Zealand Dairy Board, it has, as
an ingredient, itself made possible new and innovative products for many
beverage and food manufacturers.
Box 7.3 New Zealand Milk Products unveils whey protein
isolates
To meet the growing interest in and demand for whey protein isolates, New
Zealand Milk Products will be introducing the whey of the future at IFT
(Institute of Food Technologists’ Annual Meeting): ALACEN Whey Protein
Isolates.
ALACEN Whey Protein Isolates are more than 90% high-purity protein,
with less than 1% fat. In addition to superb nutrition, they provide excellent
functionality – complete solubility plus acid and heat stability with a bland
flavour. Clear RTD beverages benefit from ALACEN Whey Protein Isolates’
unique transparency in solution, and foods requiring stringent nutritional
labelling benefit from the WPI’s low fat and low lactose levels. The instant
versions of ALACEN Whey Protein Isolates are ideal for applications such as
dry-mix beverages.
Source: Adapted from New Zealand Milk Products NEWZ.
Think break
1. Discuss whether this whey protein isolate product was market- or technology-
driven. Was this important? Do you consider it made any difference to the
development pattern? To the launch?
2. Why do you think the promotion was largely directed to food technologists?
Could other promotional targets have been usefully added? Substituted?
3. List the major criteria you think are essential to success in the health food
market. Taking your local environment, do you think that a product such as this
one would be successful, and why? What developments in the local culture
might make it more successful?
4. What special features can you instance that distinguish food ingredient
development from that of other food products?
Case studies: product development in the food system 339
7.4 Consumer products: new products and a new platform in
variety sauces
For a large food manufacturer with an established market and reputation, a
continuing line of new products is a vital dynamic element in strategy for growth
and the future. Wattie Industries had been built up over about 30 years as the
largest food processing company in New Zealand with also a substantial export
business. It had a varied line of products including canned and frozen lines, and
a major market share with a solid, quality, customer base. But its success and
size then attracted various manipulations and reorganisations, over quite some
years, and ultimately the international US company, H.J. Heinz, bought it.
Today trading under the name Heinz Wattie’s Limited it has become an
important part of their international production resource with particular
emphasis, outside of its local market, on Australia and Japan.
The activity in Hastings, New Zealand, located over three sites, employs
about 1800 people at peak and for example annually produces about 40,000
tonnes of canned soups, baked beans and spaghetti for Heinz, Australia, and
about 200,000 tonnes totally. It operates the largest hydrostatic cooker in the
world, and the current canned food production rate is about half a billion units
per year. A current major growth driver is the Japanese market; about NZ$100
million has been spent on the plant in the last five years, much of it on sorting
and handling equipment but also on up-to-date processing facilities. They have a
product development team on site of over 40. The scene is of a large production
unit of a large multinational company looking for new consumer food products
on selected international markets.
The new product chosen was a line of speciality, variety sauces, and an
outline of the PD Process that was used is shown in Table 7.5.
7.4.1 Stage 1: Product development strategy
In mid-1997 it was decided to look for a new sauce product to modernise the
brand and open a new platform. At the time, the company had two basic tomato-
based sauces with wide sales and a commanding market share, and some hot
meal sauces packed in cans. There was nothing on offer in a more up-market,
adventurous, range. Brainstorming produced the creative idea from which was
born a concept and an advertising campaign; the product was then developed to
fit the concept. So a brief emerged for a ‘modern, quirky, fun sauce, of premium
quality flavours to enhance experience and add some spice to life.’ It could be
benchmarked to potential competitors, and targeted to enter a smaller, highly
fragmented market which at the time in New Zealand displayed 300 separate
products from 31 brands. A different product was needed; more up-beat and up-
market with several variants and designed to fit the concept. Six flavours were
started, and the original six, with some slightly altered benchmarks, were what
finished as market products. For a company that had built its reputation on
dependable quality, everyday, best-value, products, it was a major marketing
340 Food product development
excursion. It was also a substantial challenge to their traditional formulation and
packaging patterns though it seemed it would not present too many new
problems in production. The brief therefore demanded an unusual product,
justified unusual packaging, and cried out for an unusual brand name. It was a
new platform in an extended environment.
The brief was assigned to a product manager from the marketing group, and
presented to a product development team on 7 July 1997. The required time
scale was very short, four months.
7.4.2 Stage 2: Product design and process development
Major innovative issues arose in formulation, including product characterisation
and scaling up from batches of a few litres at the laboratory stage, through about
500 litres in the pilot plant to the thousands of litres in the batches in the
production plant. Maintenance of the chosen desired flavour balance from the
initial concept recipes to plant formulation involved much careful experimenta-
tion. The maintenance of final acidity after processing was critical to keeping
quality and was difficult, especially with some of the sauces. Problems arose in
Table 7.5 Activities in sauce PD Process
Product brief: 7 July 1997
Product strategy – inception of initial concept – preliminary product development work
and planning – formulation of product development brief and project plan.
Decision: Acceptance to proceed as a Project by Product Manager
Product design: 9 July 1997 to 1 October 1997
Product design and process development – preliminary surveys and ball park costings –
recipe formation, assessment and refinement – laboratory and ingredient and engineering
assessment and experimentation – preliminary packaging – label information – cooking
procedures – quality assessment and control procedures – to a full product and process
specification.
Decision: Assessment and approval of plant related expenditures and project continua-
tion.
Factory trials: 25 September 1997 Finished product assessment: 29 September 1997
Product commercialisation – factory trials – feedback and attention to shortcomings and
problems – trial samples prepared and checked – factory operational planning –
marketing planning – sales forecasts – final costings.
Decision: Acceptance of formal specifications and Approval to proceed to launch, by
Senior Management.
Production: Started 22, 23, 24 October 1997 Launch approval: 22 October 1997
Launch: November 1997
Product launch and evaluation – factory production – presentation to sales and trade –
marketing of products.
Review and continuation – feedback from sales, marketing, retailers – review of lines –
withdrawal of less successful items and planning of additional items on the platform –
further development and launches.
Case studies: product development in the food system 341
aspects such as sauce viscosities and behaviour of starches and thickeners, in
separation of constituents such as oils in emulsions on standing, and liaison with
and checking of suppliers to secure ingredients with low mould counts so that
product shelf lives would be adequate. But the solutions were not so obvious and
needed a good deal of laboratory and pilot plant work to find them.
Intensive action commenced on preparing the commercial products. Six
separate and attractive sauces finally emerged in the initial platform. These had
all to be formulated and set up to give a full product specification for production.
This work started on 5 August and continued through that and the following
month, reaching agreed products and plant procedures on 12 September.
Packaging and package design presented special problems. In the available
time, it was not possible to design and make new bottles, so after exploring all
possibilities, long fat-necked bottles, from a line of soft drink bottles that were
available to the manufacturer, had to be used. Bottle capping with a hot fill
containing recognisably large ingredient pieces had to be explored and
accommodated, labels needed designing, and a deep anti-tamper sleeve
organised. This deep sleeve turned out to have an additional advantage: the
capability of the filler was somewhat limited but the deep label concealed any
variation it produced. The different sauce varieties had slightly different specific
gravities and all bottles were filled to the same nominal volume. This meant that
the customers for the heavier varieties received a systematic advantage, or, put
another way, the company was consistently giving away product with the
heavier sauces, providing a strong inducement for the further development in
due course of a more precise filler. Also, following on a product demonstration
to the trade, it was decided to move the bottle tray configuration from 4 C2 3to5
C2 2, so as to improve display, and this required a last minute reorganisation and
redesign of the corrugated board trays and cartons and their assembling lines. So
packaging was a busy scene.
There were effectively three teams in the group working on the project; the
product manager’s team (in Auckland), and the product technology and
packaging technology teams in Hastings. Their work had all to be coordinated
and combined, drawing on the full knowledge of all members of the staff with
appropriate expertise. Cooperation over a wide range of people and skills was
excellent and contributed very substantially both to the successful outcome and
to the speed with which it was reached.
7.4.3 Stage 3: Product commercialisation
Product factory trials were conducted, starting on 25 August, using members of
the development team along with other local staff, as they were available.
Innovation was needed to move from a substantially manual process line to a
much more automated one. Some ingredients presented problems, for example
plum pulp to maintain the desired consistency for a high-class product. There was
extensive testing of the factory product, with the necessary adjustment of detailed
procedures and formulation and ingredients to reach the texture, appearance and
342 Food product development
flavours desired for the product. Quality assessment and statistical process
control procedures, that were substantially available, could be adapted and
changed in detail to accommodate the special features of the new products.
Major attention continued to be devoted to the packaging. The hot-filling of a
sauce with particulates into a difficult necked glass bottle was a new experience
for the team, as was providing the deep plastic-wrapping round the screw caps.
This involved checking and upgrading of skills and equipment, and careful
attention was required to the glass capper and the in-line labeller. Finished
product assessment could finally be undertaken by 29 August.
During this time there had been major activity on the marketing side. One
very significant issue was the generic name of the new product platform sauces.
That finally chosen was suggested by design consultants, and was ‘A Bit on the
Side’. The choice was the subject of some controversy. It was a departure from
the tradition of largely straightforward descriptive titles. As a new adventurous
product, displaying zip to a younger adventurous age group the title needed pep;
but so much? In the event it was the platform name chosen, along with
appropriately spicy individual sauce names incorporating rather minimal
description, on mildly funky but clear labels, to maintain both interest and
distinction for each of the six sauces.
7.4.4 Stage 4: Product launch and post-launch evaluation
The platform name was also strongly incorporated, and somewhat suggestively,
in the publicity for the product. This was mainly by prominent billboards in the
largest New Zealand (Auckland) market, just prior to and during the actual
launch. It used a clever stratagem suggesting all manner of eager candidates for a
‘Bit on the Side’; initially without revealing that a sauce was involved at all, and
then completing the billboard by adding a picture of the labelled bottle, as
illustrated in Fig. 7.3. The promotion certainly aroused curiosity and drew
Fig. 7.3 ‘Bit on the Side’ sauce.
Case studies: product development in the food system 343
attention. The implication was that the competing sauces were everyday. These
new Heinz Wattie’s products were for ‘experiential’ eating as illustrated in Box
7.4, which it was hoped would carry buying forward into repeats, and towards
habits. There was also some limited TV advertising, featuring on brief cookery
clips but at a very prime time spot. It was all well targeted. Sales of the new
products rose rapidly, within three months, to brand leader, and the products have
held a prime position on the New Zealand market since that time. Obviously a
gap in the market was correctly identified, and filled, by satisfying products.
A subsequent development was the withdrawal of two of the sauces. These
two were closest to the volume-market, and to Heinz Wattie’s previously
existing sauces which so many customers had found to be adequately satisfying.
Perhaps there was not enough differentiation from these still very popular, and
cheaper, products. To add to the offering and coverage however, more new
flavours were added to the platform, giving the range indicated in Table 7.6.
After two years’ success in New Zealand, ‘Bit on the Side’ sauce, with four
products in the range, was introduced to the Australian market. After trials, the
recipes had been modified and the flavours adapted to meet different consumer
expectations. There was some both qualitative and quantitative consumer research.
But the situation was rather different from that in New Zealand. There was a more
advanced variety sauce market, better developed. There was TV promotion at the
launch. But the market impact was substantially less than that in New Zealand.
Analysis attributed this to the proliferation of sauces available in Australia and the
segmentation of the market, to the campaign not building adequate initial
awareness, and to the range offered being not large enough on the shelves there to
Box 7.4 Wattie’s gets saucy
Business category manager, Rose France, says the market was ready for the
new range with cheeky perceptions.
The time was right for a product and presentation with an identity of its
own . . . We wanted to produce something that was fresh, innovative and
a little bit of fun to appeal to a new generation of Wattie’s consumers –
the 18 to 35 year olds and families with older children . . . Product
development required enormous patience – it’s a trial and error process
that involves endless cooking and tasting before testing and Bit on the
Side tested very well within its target group . . . Handling the glass
bottles and neck seal was a first for the company and the results really
come down to a great team effort . . . We wanted something that was
truly unique and differentiated our product – but while there might be
slight innuendo about the name, it’s really about reinforcing the way the
sauces should be used and adding extra zest to the tastebuds.
Source: From a Heinz Wattie’s house magazine.
344 Food product development
impact sufficiently. Also it did not have the local momentum of the Wattie’s brand
that had helped carry it forward in New Zealand. The launch and subsequent
history showed less impact and yielded smaller market share.
Overall the development has had success, both for itself and for indications of
new avenues for further product lines. The impressively tight timetable, which
was achieved by the product developers, is shown clearly in Table 7.5. Market
share in New Zealand has been well retained, the line is established on the
supermarket shelves, and occupies a new slot for Heinz Wattie’s. There are
intentions to carry the concepts and lines forward to the Japanese market.
7.5 Some brief comments on the case studies
These case studies were selected to illustrate the PD Process in different but
common food industry situations. They are not typical in that no one case is ever
typical, but they show and demonstrate much that has been considered in this
book, reinforce the claims that the concepts are practical, and briefly set out the
way in which real product development problems have been handled.
The first case study looked at a fruit, fresh apples, that is quite a major
commodity, moving from New Zealand to world markets with relatively little
Table 7.6 Heinz Wattie’s ‘Bit on the Side’ sauce range
New Zealand: Launched 1997 – Sweet Chilli, Java Satay, Oriental Plum, Spicy Tomato,
Gourmet BBQ (later deleted), Ketchup later deleted
Added, 1999 – Sweet Mustard, Spiced Apricot, Cracker Cranberry
Added 2000 – Cool Mint, Absolutely Apple, Salsa (four varieties)
Australia: Launched 2000 – Sweet Chilli, Oriental Plum, Java Satay, Gourmet BBQ
Added 2000 – Del Gourmet BBQ
Think break
1. Heinz Wattie’s put the four new salsa products on to the existing product
platform. Would it have been more effective to have started another product
platform?
2. How do you see that further innovations could be built from this on to a new
product platform?
3. This was an extremely fast, major product development, from brief to launch.
What do you consider the essential elements allowing this to be achieved?
What, if any, additional activities might have been able to improve the outcome?
4. If you were asked to launch a similar product on your home market, how would
you go about it?
Case studies: product development in the food system 345
processing. For fresh fruits, product development into new varieties can be a
powerful tool in gaining and retaining market share, and the aim of the project
was to develop a new type of apple which could lead to a number of varieties. A
great deal of expertise had been built up and this substantially guided the project,
though it was appreciated that this has vulnerabilities and increasingly inputs
from the consumers are being sought. Modern technology has opened up
possibilities for more organised and sophisticated technical developments for the
growing processes, but this type of product development has special features of
its own and in particular a long time scale which many food companies would
find very hard to contemplate.
The second case study looked also at a fruit in which the primary concerns
were to bring better returns from a significant export trade. Being very much a
consumer product, the work was largely based around modern statistical
techniques of consumer research. The study met two major objectives. One was
to guide the shorter-term decision making in seeking a product that made the
best of available fruit and its organisation on to the markets. The other was to
generate information that can be used in the longer term to guide possible future
breeding and improvement of the fruit lines.
The third case study demonstrated a step in a continuing programme for the
generation of new and more valuable specialised food ingredients from a major food
raw material. In this, highly sophisticated processing was employed, which had to
be developed so that it was successful not only in production but also in the market.
The basic information came from the literature, and this was further generated and
extended, and industrially implemented, by the development technologists. There
was much technical work to be done, both technical development in the product and
in the processing, and in the technical sales. There were also quite major design and
commissioning to be undertaken and with them capital expenditures, and marketing
development. The resulting high-grade, highly specified ingredient had to be
produced and exported to match into expensively promoted manufactured foods
with elaborate and demanding acceptance criteria.
The fourth case study was a more typical one of a food manufacturer, a large
well-established one, wishing to diversify into a new product and product
platform. In this case the information employed was largely in-trade and in-
house. A substantial product development and marketing organisation was in
place, but there were still plenty of challenges. They included the designing of a
rather different product and product image, the setting up and handling of
packaging with problems new to this factory, the industrial line reorganisation
needed, the possibility of adventurous marketing which was cleverly exploited,
and, not the least, a very tight time scale.
7.6 Acknowledgements
Grateful acknowledgement is made to the sources of information for these case
studies. In particular, sincere thanks for their time and trouble to: Dr Ian
346 Food product development
Warrington, CEO, and Mr Allan White, Portfolio Manager for Pipfruit New
Varieties, of HortResearch; Mr Tim Allen, New Product Development Manager,
of ENZA; Dr Tipvanna Ngarmsak, Mango Project Director, of Khon Kaen
University; Drs Allan Anderson, CEO, and Mark Pritchard, of The New Zealand
Dairy Research Institute; Mr Gerry Townsend, Product Development Manager,
and Ms Suzanne Weston, Product Development Technologist, of Heinz
Wattie’s.
7.7 References
EARLE, M. & EARLE, R. (2000) Building the Future on New Products
(Leatherhead: Leatherhead Food R.A. Publishing).
HUFFMAN, L.M. (1996) Processing whey protein for use as a food ingredient.
Food Technology, 50(2), 49–53.
NGARMSAK, T. (2000) Development of Mango Products and Their Competitive
Advantage in Export Markets (Bangkok: Thailand Research Fund –
translated from Thai).
Case studies: product development in the food system 347
