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 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.


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

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.

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 satisfactory.

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 implications 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?