CREATING NEW FOODS
THE PRODUCT DEVELOPER'S GUIDE
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Contents
About the book
About the authors
Preface
1. The product
development project
in the company

2. The organisation of
the product
development project

3. Product strategy
development: idea
generation and
screening

4. Product strategy
development: product
concepts and design
specifications

5. Product design and
process development

6. Product
commercialisation

7. Product launch and
evaluation

8. Summary: bringing
it together

8.10 Textbooks in
product development

Index of Examples &
Problems

Useful links
Feedback (email link)
CHAPTER 3
Product Strategy Development:
Idea Generation and Screening


3.6 PRODUCT IDEAS SCREENING

The aim in idea screening is to retain the successful ideas and eliminate the ideas which could be failures - much easier to write than to carry out in practice! If in doubt, keep the idea until more information is obtained. Idea screening can be based on tacit knowledge of the individual and of the company, with little new explicit information sought in or outside the company. But the aim in successive screenings is to build up the necessary information for the decisions to be made in a quantitative, objective way. Screening is both a reiterative and a progressive process, so there is a need to relate to the first screening even in the last screening in case the product description has changed and it no longer fits the screening criteria first set out.

The components in idea screening are product idea descriptions or concepts, screening factors and screening techniques. There is a need to have product idea descriptions that everyone involved in screening understands and is evaluating in the same way. The choice of screening factors is of course fundamental - obviously the direction of choice is strongly influenced by the criteria. Lastly the people who do the screening, and the techniques they use, affect the screening results.

3.6.1 Product idea descriptions

These must be clear and concise. They include:

      a clear description of the product;
      the use of the product;
      the target market segment;
      the relationship to the company's present products;
      the relationship to competing products.

For example, the new product idea in an ice-cream company could be a range of liqueur ice-creams. What is meant by a liqueur ice-cream - is it a liqueur flavour, or does it have drops of liqueur embedded in it? Is it targeted at sophisticated diners at home or in restaurants? Is it to be the top of the company's ice-cream range? Is the nearest competitor the specialty ice-creams made in high-class restaurants? Should problems be anticipated from sections of the community such as teetotallers or religious groups or will there be legal difficulties with excise duties?

The initial description is usually kept broad so that ideas on the product, the market and the technology can be continually studied, but there is a need to focus the idea in a certain direction so that the people involved are not taking off in too many directions at once. As the product idea builds from a product idea description, to a brief product idea concept, to the final product concept, to the product design specifications and to the product specifications, the focus is being narrowed all the time.

One product idea description for the liqueur ice-cream was: ‘a line of plain based ice-creams with little jellies containing concentrated liqueurs, aimed as a gift to be taken to dinner parties, sold through higher-class supermarkets’

3.6.2 Screening factors

The strong screening factors, with which the product idea must agree, arise from the project aim and the project constraints.

The overall aims of the company always take precedence over other factors. No matter how brilliant a product idea is in isolation, it is rejected if it does not fit with the company's business strategy, in particular the product strategy. There may be an outstanding product idea which may change the direction of the company's business strategy, but it has to be taken from the project ideas and directed back into the top management area. This product idea has to be viewed in its scale and suitability for the company, and decisions within the company must be taken at top management level.

The constraints identified at the beginning of the project are also important screening factors. A product may be dropped for many reasons: it does not meet the food regulations; there is not sufficient money to develop or to produce it; the managing director does not like it! The factors used in screening should be as objective as possible, but sometimes subjective decisions are made.


Think Break 3.8
Product idea descriptions and screening factors: liqueur ice creams

Develop two more product idea descriptions for the range of the liqueur ice-creams as discussed in 3.6.1 Product idea descriptions.

What screening factors could be used for these liqueur ice-creams which would reflect your society’s cultural and religious attitudes to the consumption of alcoholic drinks?

Some product screening factors are shown in Table 3.2.

Table 3.2 Factors for product screening

Marketing factors:
      Potential market size
      Compatibility of market image with company's product lines
      Relationship to competing products
      Compatibility with existing or specified market channels
      Access to suitable physical distribution systems
      Fits into an acceptable pricing structure
      Relationship to promotional methods and resources
      Marketing resources needed to produce success

Production factors:
      Compatibility with existing product lines
      Availability of processing equipment
      Availability of raw materials and ingredients
      Availability of technical skills to produce the product
      Availability of production time
      Agreement with any legal requirements
      Cost and availability of new resources required

Development factors:
      Knowledge needed for development
      Available knowledge and skills
      Available time and human resources
      Development funds needed and available
      Compatibility with existing strengths
      Development difficulties and risks of failure

Financial factors:
      Compatibility of development costs with financial resources
      Capital investment resources needed and available
      Finance needed and available for market launch and ongoing product support
      Profits or returns on investment required

Significant factors are many and these are just a few that often occur. The choice of screening factors depends on the type of ideas, the company and its resources, the company's environment and the level of innovation. There could be many factors but it is not humanly possible to use them all, so that the factors are ranked in importance and only the most critical chosen in the first screening, although others may be checked later. Factors can be rated as crucial, most important, important and minor.

Think Break 3.9
Product idea screening factors: fruit slice snacks


A bakery company is at present producing wrapped cakes to be sold in supermarkets on ambient shelves. It has decided to develop a line of fruit slices, such as apricot and almond, berry fruit and hazelnuts, which could be eaten by the consumer as snacks. The aim is to launch these products in supermarkets, mainly for adult consumers.

      Identify the factors that could be used in screening the product ideas.

      Rank the factors from most important to least important and give them ratings to show
      their relative importance.

      Divide the factors into crucial, very important, important and minor



PRODUCT IDEAS SCREENING PROCEDURES

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