Professional Documents
Culture Documents
Introduction
Food manufacturers strive to meet the changing needs of food consumers who
are increasingly demanding new and better products. It is no longer possible
for a company to rely solely on its existing products. If a company will not
provide new product developments (NPDs) there are plenty of competitors that
will do their best to fill the gap. Allyson (2000) identifies the large number of
product innovations and extensions launched in European countries during
1999. These included 791 desserts; 241 fruit and vegetable products; 796
prepared meals and 360 innovations using fish. Many manufacturers are
therefore actively involved in the development of new food products and in the
extension or enhancement of their present products.
An evaluation of NPD literature highlighted the fact that there are numerous
descriptions of what constitutes a new product. Whether new food product
developments are ``new'' to the world or ``new'' to a manufacturer is very much a
matter of interpretation.
Manufacturers and theorists use the term NPD to describe a range of
product developments, however, there is little consensus as to what actually
constitutes a ``new product''. Fuller (1994) believes a broad definition is the most
useful and should encompass either the development and introduction of a
product not previously manufactured by a company or the presentation of an
British Food Journal old product into a new market. However, he does believe that the definition
Vol. 105 No. 7, 2003
pp. 460-476
should not be applied too rigidly. Kotler et al. (2001) take the view that a new
# MCB UP Limited
0007-070X
product should include only original products or product improvements and
DOI 10.1108/00070700310497246 modifications that the firm develops through its own research and development
efforts. Booz, Allen & Hamilton (1982, p. 8) were responsible for undertaking An evaluation of
important and highly original work into product development and estimated NPD activities
that, ``Only 10 per cent of all new products introduced over the last five years
were truly innovative or new to the world''. They conducted a longitudinal
study among a number of companies and, from the data collected, concluded
that the majority of products launched by manufacturers could be aligned
within one of the six categories shown in Table I. 461
If these classifications of NPDs are a true reflection of actual practice, then
the introduction of ``new'' products is quite rare. Innovation and the
introduction of new food product developments are essential to food
manufacturers in order that they can gain competitive advantage and be
successful in the marketplace. The drive to gain advantage has resulted in a
spirited response by manufacturers and retailers alike, and they have become
resourceful and ingenious in the manner in which they develop and promote
products as ``new''.
As stated by Booz, Allen & Hamilton (1982), only 10 per cent of products are
``new to the world'' and it therefore follows that 90 per cent are not. Often a
manufacturer offers ``a new product line'' which is not new to market, but rather
is new to that manufacturer. The products will, in all probability, still go
through a development process, which is why manufacturers are inclined to
refer to them as ``new developments''. The utilisation of other manufacturers'
ideas is not new. Indeed, Kotler et al. (2001) refer to the practice of producing
similar products as those of ``imitators'', and these are often retailers making
look-alike own brands. This is seen as a way of getting around the high risks
and costs of NPDs, in that ``me-too'' products give the manufacturer an
opportunity to enter a proven market already developed by someone else. The
grocery retail sector is a significant area of economic activity in the UK and
such is the competition for business that retailers are always on the lookout for
Company A
Company A is a producer of frozen desserts, ice-cream and ice lollies and
employs some 230 people, which does increase to meet seasonal demands. This
464 manufacturer undertakes the following types of product development.
Company B
Company B is a producer of chilled and frozen meat/meat products and
employs 60 people.
Company C
Company C is a producer of frozen microwaveable snacks which employs 70
people and undertakes the following type of developments.
{ } { }
Percentage profit Yes Linked Yes Linked
Turnover Yes Linked Linked
Contribution to costs Yes Useful Not Linked
generally
considered
Why would you withdraw a
product?
Lack of sales Yes Yes Yes
Lack of profit Yes Yes Yes
Retailers request Yes
Relationship with customers? Limited Limited
Relationship with retailers? Strong Strong
Relationship with ingredient Strong Strong Strong Strong Table II.
suppliers? Case-study overview
References
Allyson, L.S. (2000), `` `Innovative' products introduced in Europe'', Marketing News, 10 April,
pp. 19-20.
Ambler, T. and Styles, C. (1997), ``Brand development versus new product development: towards
a process model of extension decisions'', Journal of Product & Brand Management,
Vol. 6 No. 1, pp. 13-26.
Balm, G.J. (1996), ``Benchmarking and gap analysis: what is the next milestone?'', Benchmarking
for Quality, Management and Technology, Vol. 3. No. 4, pp. 28-33.
Booz, Allen & Hamilton (1982), New Products Management for the 1980s, Booz, Allen &
Hamilton Inc., New York, NY.
Campden and Chorleywood Food Research Association (1996), Symposium Proceedings, Frozen
Food: Meeting the Challenge, 2-3 November 1995.
BFJ Collins-Dodd, C. and Zaichkowsky, J.L. (1999), ``National brand responses to brand imitation:
retailers versus other manufacturers'', Journal of Product and Brand Management, Vol. 8
105,7 No. 2, pp. 96-105.
Dacko, S.G. (2000), ``Benchmarking competitive responses to pioneering new product
introductions'', Benchmarking: An International Journal, Vol. 7 No. 5, p. 324.
Department of Trade and Industry (DTI) (2001), available at: www.dti.gov.uk
476 Fuller, G.W. (1994), New Food Product Development: From Concept to Marketplace, CRC Press,
Quebec.
Hanna, N., Ayers, D.J., Ridnour, R.E. and Gordon, G.L. (1995), ``New product development
practices in consumer versus business products organisations'', Journal of Product and
Brand Management, Vol. 4 No. 1, pp. 33-55.
Harvey, M. (2000), ``Innovation and competition in UK supermarkets'', Supply Chain
Management: An International Journal, Vol. No. 1, pp. 15-21.
Kotler, P., Armstrong, G., Saunders, J. and Wong, V. (2001), Principles of Marketing,
3rd European ed., Pearson Educational Limited, Harlow.
Rudolf, M.J. (1995), ``The food product development process'', British Food Journal, Vol. 97 No. 3,
pp. 3-11.
Samli, A.C. and Weber, J.A.E. (2000), ``A theory of successful product breakthrough
management: learning from success'', Journal of Product & Brand Management,
Vol. 9 No. 1, pp. 35-55.