©foodforum.org.uk 2000All rights reserved
|
| |
|
|
NPD
|
Own label v branded NPD
|
Case File 1
|
Case File 2
|
Issues and values
|
Making use
|
Resources
|
Being a Food Product Developer 1
About new product development (NPD) People who work in New Product Development (NPD) come from varying backgrounds, but a passion for food is essential. It is only fairly recently that higher education courses have been developed for those who specifically wish to enter this field of work.
The skills and qualities needed to work in food product development are:
Those who work practically 'hands on' with food are part of a larger organisational structure that includes: These people work together to ensure that products are developed that are successful, attractive, profitable, safe and within the law. It is difficult always to 'get it right' in NPD and only a small percentage of those products launched actually survive this competitive market. Many branded products suffer from supermarket own label copies that may appear very shortly after they are launched. The patenting of ideas, product names, packaging and processes is now common industrial practice. The approach of different companies to NPD varies, although there are many common aspects. This can be demonstrated by looking at 'own label' versus 'branded' products.
About own label v branded NPD On the other hand, with a completely new, branded product a novel idea may result in a new company being set up to develop and manage the product or a technological advance. In-depth market research will take place, along with technological research if necessary, to ensure that the idea can be put into practice eg. a new bespoke factory may be needed. Quorn (the mycoprotein developed by Marlow Foods) is such an example, as is the New Covent Garden Soups. (Click here to look at this case study.) A pool of experts are brought together, either as full time employees or on a consultancy basis. The team will include packaging designers, marketeers, product development, technical and commercial managers. However good the product idea, it is not sensible for it to be launched without this strong background of highly trained professionals to support it. The success of 'Sunny Delight' (an orange drink) is proof of this. It contains little fresh juice and is mostly water and sugar, but it has become a highly purchased product because of clever marketing. Such a branded product could be in development for two to three years before launch.
About Case File 1
Name:Sarah Lee Sarah's job in 2000 is very different to when she started work for the company ten years ago. She works in The Food Centre (previously called the Home Economics department) whose role has evolved to meet the changing world of food retailing. In 1990 all product development was supplier led and few, if any, ideas were generated from within the company. Now the product development role is carried out within the Food Centre, which gives Sainbury's more control over its products. From two Home Economists in 1990, the department now has a Development Manager, three Development Home Economists and three Development Chefs, all of whom are involved with the development of 'own brand' products and initial ideas generation. They are also responsible for on-pack information, egs. cooking and storing instructions, serving suggestions. The sheer volume of NPD needed to support a retailer the size of Sainsbury's is impossible for one department to carry out, so buyers have dedicated NPD personnel who work with their suppliers. Buyers are employed for their commercial awareness, negotiation skills and business knowledge, rather than their knowledge of food.
The Food Centre is marketed to the rest of the company as a Centre of Food Excellence and takes a role in developing food awareness, eg. every week a team of buyers, NPD staff and a development chef eat out at a new or exciting restaurant and bring ideas back into the business. The Food Centre has two other departments to support its work. These are Quality Control (to monitor the quality of products being sold) and Sensory Appraisal (used at all stages of new product development, competitor comparisons and in monitoring product quality). A 'Search & Re-apply Programme' was started in 1997 to take Sainsbury's teams around the world researching product ideas that would be re-applied back in the UK. Trips have included Singapore, Malaysia, Australia, America, France, Spain and Japan to look at foods and consider their possible applications to the home market. The current deli programme concentrates on London for its inspiration, as one of the gourmet capitals of the world.
Sarah was asked to be involved with development of ideas for the deli counter because:
Her job was to organise a tour of top London delicatessens for NPD managers. This was in order to research new ideas for the instore deli's and the Sainsbury's Special Selection range. Delicatessens that would provide inspiration for the team included Tom Conran's Deli Diner and Harvey Nichols Fifth Floor food store. After the tour, buyers discuss the products they have seen and decide how they can bring ideas to Sainsbury's to make the necessary innovative changes. This involved sampling many of the products seen, researching suppliers or briefing them to copy and develop ideas for an 'own brand' version.
You may have noticed recent TV adverts, showing the chef Jamie Oliver, making use of Sainsbury's new 'try before you buy' scheme at the deli counter. This encourages shoppers towards the deli counter to sample foods before deciding whether to buy them. It may also encourage them to be more adventurous with new and unusual ingredients. Sarah is involved in raising awareness about changing and emerging food trends in other ways. She may be asked to give presentations on specific areas of interest to company buyers and marketing staff. Such presentations do not necessarily result directly in the generation of new product ideas, but may inspire development at a later date. Their main purpose is to increase understanding of the market for those involved in the company's product development activities. Recently, Sarah made a presentation on the snack food market. Eating 'on the go' has become an important market for ready-to-eat snack products. Some supermarkets have experimented with snack stalls at the entrance to their store, so that people can purchase snacks to eat whilst doing their shopping. WH Smith has recently teamed up with Marks & Spencer to sell its snack foods in selected stores, eg. Kings Cross train station. This means that, for the first time ever, M&S sandwiches (a leading brand) can be bought in outlets other than their own stores. This is convenient for customers since they can buy them in the same place as their newspapers and magazines. NPD within the retail context is not just about developing ideas for new products, but also new ways of making use of ingredients found in store.
Sarah's most famous project to date has been the development of recipes for the 'Simply Take...' television advert campaign that was supported by a team of celebrities. The recipes featured in the adverts showed consumers how to use and combine ingredients available in the store simply and effectively. These are still being requested today, eight years after the campaign ended! Many retailers produce their own magazines that provide the consumer with information about food generally, and their products specifically. One aspect of Sarah's job is to write for the Sainsbury's '0-5 Club' magazine and their website where information, egs. on children's food and nutrition or what's new in store this month, can be communicated to consumers.
For Sarah, working for a retailer as a product developer often means having an input at various stages of the development process and working on numerous projects, but rarely seeing a product right through from ideas generation to the supermarket shelf. In some respects this may be frustrating, but it also means that the work is very varied. Although Sarah has worked in her current post for ten years, her job has changed so much that she still finds it challenging and exciting.
About Case File 2
About issues and values New product development is a commercial activity. It's fundamental purpose is to make money for the company in a very competitive market. The strategies and tactics used encourage consumers to spend money on one company's products, rather than on those of the competition. These products are presented to consumers as the solutions to their every need and preference. But how far does NPD really address the needs of the consumer? Certainly a product is unlikely to be commercially successful unless it addresses consumers' needs and preferences. Products are designed to be as consumers want them to be and popular products are likely to be more profitable for retailers and manufacturers. To what extent is NPD a means by which the industry's own needs are served? Does it simply respond to consumer needs, or actively shape and influence them?
Making use of the case study - things to think about and do
Further useful resources ©foodforum.org.uk 2000. All rights reserved
|
|
About Sarah Lee, Product Development Home Economist, Sainsbury's plc, the retailer 'own brand' context
