Food Product Development and its influences

Social PressuresConsumer demandsTechnological developmentsEnvironmental concerns

Social influences are the factors that affect our behaviour and stem from the way we live. They might include our age, our gender, our community, our friends, our family and our peers.

Social Pressures The success of new food products will depend on the degree to

which changing social influences have been identified by food producers.

Data gathered by the Australian Bureau of Statistics (ABS) and major research organisations such as AC Nielsen, BIS Shrapnel and Roy Morgan Research provides information on social trends and consumers’ shopping habits.

Social trends and changing lifestyles include:◦ the age of the population◦ gender, with a greater number of working women and the changing role

of men◦ in food purchasing and preparation◦ life stage or household make-up, with smaller households and young

people choosing to live at home for longer◦ income levels and the relationship to food expenditure◦ education levels and social mobility of the population◦ an increased concern for the environment by consumers◦ a change in the population mix in terms of cultural diversity.

The aging population

◦ Higher disposable income (for some)> choose more premium products.

◦ Impact of the recession on disposable income> The current recession is also having an enormous financial and emotional impact on baby boomers. Many have seen their personal wealth and disposable income drop precipitously, forcing many baby boomers to postpone retirement and some previously retired boomers to re-enter the workforce.

◦ Ease of usage > Manufacturers should be thinking about innovations, such as packaging suitable for arthritic fingers and labeling suitable for aging eyes.

◦ Health concerns> As boomers age into their 60s and 70s, a growing number of shoppers are adjusting their diets to manage a range of ailments, such as high blood pressure and diabetes, and there is a growing concern about their weight.

Identify some of the current items available which address the needs for our aging population?

Needs - category Areas for NPD Food Product Examples

Nutrition/Health Heart Health, Salt intake, Fibre consumption, reduced cholesterol.

Skills and Ability

Housing

Physiological changes

Complete the handout for this topic- Case Study: Up and Go. Q1-5

Gen Y and Gen X consumers… Do some digging to find some facts!More concerned about image? Largely influenced by

advertising?Many are spending larger

amounts on gourmet/organic/ethically conscious/sustainable foods?

Cultural Diversity Increased cultural diversity has led to

much product development in Australia in the last 50 years.

Post War Immigration programs. In 2011, the Census revealed that

over a quarter (26%) of Australia's population was born overseas and a further one fifth (20%) had at least one overseas-born parent.

In less than 30 years, we have seen a major shift in our ethnic demographic structure, with the number of Australian residents that were born in Australia or England down seven percentage points to 78% from 1986 to 2011.

Little surprise to note, when rice and noodles are now key staples in our shopping trolleys, that there has been a signifi cant increase of Australian residents born in China and India.

International travel.

Identify some of the current items available which address cultural diversity in Australia ?

Cultural Groups

% in Australia Food Product Examples

English/Irish/Scottish/ Australian

20 % of overseas born70% total population (ancestry)

China 6.0 % of overseas born4.3 % total population (ancestry)

India 5.6% of overseas born2.0 % total population (ancestry)

Italian 3.5% of overseas born4.6 % total population (ancestry)

Vietnam 3.5 % of overseas bornhttp://www.abs.gov.au/AUSSTATS/abs@.nsf/7d12b0f6763c78caca257061001cc588/af5129cb50e07099ca2570eb0082e462!OpenDocument

Education and knowledge As a nation we are smarter – or at least more highly educated –

with the proportion of university qualified Australians having almost quadrupled since 1986, from 6% to more than 21%.

Food expertise, food knowledge and food experimentation are at unprecedented levels due to an explosion of food-related media.

Increased consumer awareness of health and its relationship to food> google, the gym junkie era, iphone apps to monitor diet etc.

Increased consumer awareness and of ‘sustainability’, ethical production and environmental impact of food production.

TASK: Read the article ‘Are you ready’ and answer the following questions. 1. How has the pressure of education and knowledge affected the

development of ready meal products?2. What are some of the other pressures or consumer demands that

have been discussed in the article?3. How the ready meal products address those demands?

Life stage and Income availability Our family units are smaller and more likely to have both partners working to accommodate the rising costs of living and economic uncertainties that are key concerns for many Australian families.

Young households are shrinking as the number of children in a typical family drops to one or two.

But older households are expanding as teenage and young adult children increasingly remain in the family home until their mid-20s and beyond.

households headed by a person aged 48-49 spend $3,548 more on food and non-alcoholic beverages each year than the average Australian household.

Young couples without children have the highest disposable income. These groups are seeking more affordable products and are most likely to purchase private label.

Lower income groups usually seek to purchase luxury items.

Shoppers aged 18-34 are the group most likely to shop exclusively at speciality stores, with some spending more than $400 per week on seafood, cheeses, olives and cured meats

Complete the handout for this topic- Activity 7.3 Income availability Q1-5

GenderThere are 11% more women in the workforce

since 1986. Women are working longer and more women are

returning to the workforce after having a family. Men are contributing more to household chores,

but women typically are still the primary shopper, food preparer and cleaner.

Reduced preparation, convenience items, ready meals, semi prepared items.

Women working has resulted in an increase in household income enabling higher priced convenience items.

E.g semi prepared vegetables and salads, ready prepared soups, meals.

Complete the handout for this topic- Activity 7.2 Gender Q 1-5

Food Product Development and its influences

Social Pressures

Consumer demandsTechnological developmentsEnvironmental concerns

Consumer demands are the concerns and drivers for the need, desire and

purchase of products often as a result of social pressures and environmental

concerns.

Health ConcernsGrowing understanding of the

links between diet and disease. (Social pressure - education)

Consumers are looking for products that will have a positive benefit to their health.

Low fat, Low KJ, Reduced sugar or sugar alternatives,

FUNCTIONAL FOODS – foods that provide a health benefit beyond that of basic nutrition, e.g omega 3 fortification, pre/probiotics, plant sterols.

Foods for healthHealth Concern 3 Food Product Examples for each

Obesity

Type 2 Diabetes

High Cholesterol

Hypertension

Digestive Health

Promote a healthy heart

Promote Brain health

Functional FoodsFoods that provide a health

benefit beyond that of basic nutrition.

Functional Foods- Chapter 13 review questions, 1-20.

Checkpoints questions 109

ConvenienceAustralia’s population is predominantly urban

(currently 89 per cent of the population and growing)and this is largely responsible for the increased demand for convenient processed foods.

Australian urbanites are regularly using nearby supermarkets as the ‘local fridge’, making 3-4 trips per day. They have a growing preference for frozen, easily prepared meals, to suit their ‘time poor’ urban lifestyles.

Increased amount of time spent in work and transit. Increased smaller one or two person households.

Convenience foods and takeaway are increasing in sales.

Environmental considerationsDue to the social pressure of increased awareness and education…

Environmental factors are things that help reduce the impact of food production on the environment and might cause someone to choose to buy a product. For example, locally produced food doesn't have to be transported as far, so less CO2 is produced. This means there is less of an impact on the environment.

Ethical factors are things that can be seen as morally right. For example, buying fair trade food which provides farmers with better working conditions.

Examples Fair trade food production aims to provide fair prices and better working

conditions for farmers and farm workers. Farm assured means that the farms and food companies meet high standards of

food safety and hygiene, animal welfare and environmental protection. Food miles means the distance that food travels from where it is grown to where it

is bought. This is an environmental concern because of the CO2 emissions from transport.

Free range is a method of farming where animals are allowed to roam freely. Genetically modified food is grown with genetic manipulation technology. Some

people consider this a risk to the environment and choose GM-free products. Organic foods have been grown without the use of chemical fertilisers or

pesticides. Seasonal foods means foods that are in season. Choosing these reduces food

miles Sustainability is food production that aims to preserve the world's natural

resources for future generations.

Environmentally and ethically conscious productsConcern Environmen

tal or Ethical?

3 Food Product Examples for each

Fair Trade

Free range

Organic

Sustainable

Technological developmentsNew processing systems

◦ High pressure Processing◦ Microencapsulation◦ Separation or membrane technology

New packaging ◦ New systems: e.g Modified Atmosphere

Packaging, Aseptic packaging, Vacuum packaging. ◦ Consumer demands- tamperproof, single serve

convenience, easier use (eg. ring pull cans)◦ Manufacturers reducing costs, weight and

investing in more recyclable options due to social pressures.

High pressure processing

High pressure processing is a method of cold pasteurisation that preserves food by subjecting it to intense pressures to kill microbes, such as yeasts, moulds and bacteria, while maintaining the fresh qualities of the food. ◦ Retains physical and sensory properties (little significant change to flavour) and no

deterioration from heat treatment.

◦ Inactivates microbes

◦ Retains nutritional value

◦ Chemical preservatives not required

◦ HPP cannot be applied to all products. It can be used on foods with high acid content. It is not suitable for low acid products such as milk, vegetables or soups because the process is not able to destroy spores without the use of heat

ABC TV Inside Business Preshafoods finds way to ease the squeeze 4 October 2009

http://www.abc.net.au/insidebusiness/content/2009/s2704252.htm

Read the article on ‘Preshafruit’ and answer the questions.

Read Chapter 14 page 250-254 Food Solutions. Q 11-20

Microencapsulation Technology where small particles of an active or

functional ingredient are contained in a minute capsule.

The ingredient being ‘encapsulated’ in a fine film enables masking the flavour or odour.

Can protect ingredient from being exposed to air and causing deterioration to product.

Ingredient is ‘stable’ during baking or freezing. Once consumed, the capsule ‘melts’ and

releases its health beneficial contents. Read Chapter 14, Page 255-256 food solutions.

Q 21-25.

Examples are◦ Fish oil capsules. These are microencapsualted but not

put in to other food products this size!

◦ However the capsules can be so tiny that they are then put in to bread (Tip Top DHA Omega 3 Bread), juice, margarine or yoghurt!

◦ Iron fortified in foods such as dairy which would normally cause a negative chemical reaction in the product. https://www.youtube.com/watch?v=aQHRX7Lt1A8

Membrane Filtration This processing enables separating the chemical

components of products without changing them.

Ultrafiltration: Milk is pumped over membranes which have tiny holes holding back large particles such as protein, fat, calcium, but allowing the smaller molecules of water and lactose through. (remember this is permeate!)

◦ https://www.youtube.com/watch?v=Dmt7OqHix-g

Reverse Osmosis: Milk is pumped over small holes which only allow water to pass through, leaving milk solids behind. .

Milk solids’ refers to the dried milk powder left after all the water is removed from liquid milk. It is similar to the milk powder you buy at the supermarket and can be full-fat or non-fat (skim).

Non-fat milk solids are often used to give a richer ‘mouth feel’ to low-fat yoghurts, milks and ice creams without adding any fat. 

Read Chapter 14, page 256-258 Food Solutions. Q 26-30.

Packaging techniques: Modified Atmosphere Packaging (MAP)

System that modifies or changes the composition of the internal atmosphere of a food package in order to improve the shelf life.

The inside of the package is replaced with a gas or mixture of gases so that oxygen is excluded or greatly reduced.

© Glenis Heath and Laurel Tully 2011

Packaging techniques: Aseptic Packaging

A process where a sterile liquid or semi sterile liquid is put into a sterile container in a sterile environment.

The package is then sealed airtight to protect the product from microorganisms.

Allows for transportation and storage of perishable items for up to six months or more without refrigeration.

Made from 3 layers: Paper, polyethylene plastic and aluminium.

Question: What are the advantages of aseptic packaging?

© Glenis Heath and Laurel Tully 2011

Product Development Companies strategize to grow their business and to do so

they develop a number of types of products. Innovative products are brand new however they have a

large risk of failure. This could be detrimental to the company if they are not financially strong, however also if they tap in to an ‘untouched’ market they can then dominate share.

If a company feels it needs to respond to competition as one brand may have a ‘monopoly’ on the product, they may develop a ‘me too product’. An example of a monopoly is Aeroplane Jelly, where cottees no longer have a place in the Australian market.

A company may also want to extend their already existing business and may develop a product similar to the original with some variation. This is called a line extension, and it carries much less risk as much of the work has been done and consumers are already familiar or loyal to the brand.

Types of Product DevelopmentLine Extensions:

◦ Are products made with a variation to an extension to an existing range which has already been successful and established brand loyalty.

◦ Changes are normally made to the ingredients, flavour, chemical properties, size, weight or the way the product is packaged.

◦ Benefits are that they increase company profits, share of market and expand their target market. They are more cost effective and there is less risk of failure compared to innovative products.

What are the line extensions to these favorites?

Types of Product DevelopmentMe Too’s:

◦ Products that replicate characteristics of existing successful products in the market, by a competing manufacturer.

◦ A company releases a ‘me too’ to rival the successful product and compete for market share.

◦ Benefits are that there is already a defined need or market for the product. As a result they don’t need to carry out market research (A large cost!). Also there is less risk and they are cheaper and quicker to produce than new innovative products.

What are the me too’s available to these favorites?

Types of Product DevelopmentInnovations:

◦ Products that are completely new and unique to the market and have never been seen before.

◦ They are often as a result of new technologies resulting in new ingredients, new processing or new packaging techniques.

◦ Innovations are the most risky to develop as they are costly to produce and there is a greater risk of failure if they are not accepted by consumers.

Some innovations of present and past…

https://www.youtube.com/watch?v=vVsBbtLO4UE https://www.youtube.com/watch?v=vO-52WfsnyU https://www.youtube.com/watch?v=2OogNQMXHYM

Product Development Process. Why?

The aim of the product development process is to minimise the chance of product failure and to maximise profits by creating a product that meets consumer demographics and needs, food consumption and shopping behaviour, and market trends or market gaps.

Despite the planning and constant reflection that takes place during the product development process, only about 25 per cent of all new products created are actually successful.

Manufacturers need to be aware of consumer needs and wants, current and future food trends, and products that have already been created by other manufacturers with similar markets.

Product Development Process

Like the design process, new products go through a series of stages before being released into the market…

Product Development ProcessTask: Read your allocated ‘section’ of the product development process and summarise what happens at this stage using your textbook and the stirfry sauce example.

You will share your summary in 5 minutes to the class.

Product Development:Market Research/Idea generation Every business, company or food developer should :

◦ Understand consumer demographics – that is, who the consumers are, their ages, gender, average income and typical purchasing behaviour

◦ Understand where the product fits into the current market situation◦ Know who the competitors are and what they offer◦ Investigate the wants and needs of your target market or markets◦ Understand social trends and influences that can create opportunities.

This type of research is commonly called market research. researching a competitor’s range conducting consumer interviews that determine buying and usage habits and Attitudes seeking employee feedback or brainstorming within the company analysis of food consumption or food preparation trends — greater use of ethnic cuisines, increased concern for

health, increased environmental concerns, and changed demographics such as an ageing population census data industry market research reports. Trade journals Point of Sale Data

http://foodsouthaustralia.com.au/guide-to/consumers/market-research/

Product Development:Design Brief Once an idea for a new product is proposed, a design brief is

established. It clearly defines the aims and intentions of a new product, and the specifications (considerations and constraints) required.

The aim can include information such as:

◦ the type of product required

◦ the method of processing

◦ the raw material

◦ the target market or demographic

◦ details about competition

◦ the expected selling price of the product. Constraints can relate to the product, the way it is made

and promoted, and the environmental impact of its production. For example:

◦ Product needs identified through market research regarding the flavour, appearance, texture, nutrient content, ingredients to be used, storage method, method of use, packaging, safety features and method of opening required.

◦ Resources or abilities of the company – for example, processing constraints, Financial and environmental constraionts, governmental or marketing constraints.

Product Development:Criteria for Evaluation

• A list of questions based on the considerations, constraints and aims is created to guide the formation of the prototypes and new product.

• This ensures the process doesn't deviate from the aim of the design brief.

• The role of these evaluation criteria is to enable the company to evaluate the prototype and also the final product to determine whether the prototype and the final product meet the needs outlined in the design brief.

Product Development:New product ideas Ideas are generated in response to the brief. Ideas

can be generated through company brainstorming, surveying consumers, analysing existing products and analysing trends.

Ideas are then ‘screened’ to assess the ideas against the specifications. Most of the ideas are discarded as they have too many associated constraints. This screening ensures that only 2 or 3 products with the potential to succeed will be developed further.

Product Development:Prototype DevelopmentAt the end of all of the planning, preliminary

versions, or trial models of a product, usually a scaled-down form can be created. This is called a prototype.

The prototype allows companies to determine◦ What final ingredients will be required and their

correct proportions. ◦ If the product is acceptable to consumers by

completing market testing before full scale production.

◦ Changes that need to occur to the recipe, sensory properties or nutritional properties.

◦ If the skills and equipment needed are available ◦ An estimation of total production costs

Product Development:ProductionTrial Production: If the new product

passes the tests in the prototype stage, a trial is conducted. The role of the trial is to help the company to determine whether they can reproduce the prototype in full-scale production.

Full Scale Production: If the trial is successful, full-scale production begins so that the product can be released on to the market.

Product Development:Packaging and LabellingThe package often is what sells the

product so it is important for manufactures to get it right.

Packaging considerations often include◦ Its functional ability in storing the food

safely and at optimal quality.◦ Its visual appeal to attract purchase◦ Its information to communicate to the

consumer◦ Its legal requirements (FSANZ)◦ Its environmental or financial impact

Product Development:Marketing and Product launch The role of the marketing stage is to encourage consumers

to try the product and then to become repeat purchasers through promotion of its benefit to them.

The product is normally marketed to the target group (identified in the market research) the product is intended for.

Marketing strategies include

• Free give aways or tastings

• Media campaigns- T.V, Radio, Internet, Print

• Sponsorship of key events (e.g sport) or programs (e.g Masterchef)

• Discount promotions in the store

http://aso.gov.au/titles/ads/aeroplane-jelly-song/clip1/

https://www.youtube.com/watch?v=CMPjosWvZtE

Product Development:Evaluation This stage involves answering the previously established

criteria for evaluation questions to ensure the product has met all the requirements of the brief. The evaluation will include 4 main areas.

Product evaluation: the physical and sensory properties are evaluated at the prototype and trial stage.

Production evaluation: where the process engineer review all stages of the production, including the resources used, equipment suitability, technical expertise requirements of staff and the HACCP system.

Economic evaluation: an evaluation of the anticipated costs and likely profits over several years to ensure product is economically viable.

Market Evaluation: where the marketing campaign is evaluated and its success in reaching the target market and driving sales. Market evaluation is then ongoing as both companies and retailers ensure the product is reaching the sales targets. If the product maintains success, it can maintain its position in the market, however products which do not sell are very quickly deleted from the supermarket shelves.

HomeworkWatch the two videos on the wiki

for product development. Food Solutions Chapter 12 Q 1-

30

The Design Process/ Product Development.

Qualitative/ Quantitative

Monday

HomeworkAnalysis: Food Solutions Chapter

12 Q 31- 40 Functional Foods: Food Solutions

Chapter 13 Q 1-20

Supermarket and web research task Activities and questions to

support SAC. Reward those who do the task.

Extra readinghttp://www.futuredirections.org.a

u/publications/food-and-water-crises/1631-consumption-patterns-and-food-demand-in-australia-to-2050.html

http://www.jimcarroll.com/2011/06/food-industry-trends-2011-report-from-a-keynote/#.U-wArl7lduY