FOOD PRODUCT DEVELOPMENT
Mary Earle, Richard Earle and Allan Anderson
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About the book
About the authors
PREFACE
CONTENTS
Introduction
1. Keys to new product
success and failure
2. Developing an
innovation strategy
3. The product
development process
4. The knowledge base
for product
development
5. The consumer in
product development
6. Managing the
product development
process
7. Case studies:
product development
in the food
system
8. Improving the
product development
process
INDEX
Useful links
Feedback (email link)

Part I, Chapter 1
Keys to new product success and failure


1.2 Measures of product success and failure

If a company is to build a successful product mix and product strategy, there is a need to study the company's history and current performance and also the history and current performance of the industry and indeed of other industries. The food industry can learn from successes and failures in other industries. The measures for determining success and failure can be for:

     individual new products (financial, market, production, consumer
        acceptability, targets);
     product development projects (efficiency and effectiveness);
     overall product development programme (success rate, sales and profits
        from new products, innovation level).

The measures are detailed in Table 1.2.


Table 1.2 Measures for product development success and failure


Individual new product measures
Quantitative targets
Sales volumes and revenues
Market share
Profits
Financial performance

Qualitative targets
Product qualities
Customer acceptance
Competitive position against other companies' products
Extending or completing a product line
Aiding a promotional effort
General company benefits

Product development project measures
Efficiency in time and cost
Effectiveness in achieving product success

Overall product development programme measures
Comparison between old and new products
Number of new products in the last five years
Number of improved products in the last five years
Growth of market due to new product introductions
Proportion of sales related to new and improved products
Profitability of new products compared to old products
Contribution to net margins of new products

The effect on company innovation level
Newness of production technology compared with the industry norm
Newness of marketing technology compared with the industry norm
Newness of markets for the company's products
Innovative advance of company's new products on competing products
Customers' view of the company as innovative


Source: After Earle and Earle, 2000.


1.2.1 Individual product success

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Food Product Development. Copyright © 2001 Woodhead Publishing Limited.
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