The New Product Development Process.ppt

The New Product Development Process Food Marketing Economics ApEc 4451/5451 Fall 2008 October 30, 2008 Dennis Degeneffe Research Fellow The Food Industry Center Successes Lunchables Pizza, Nacho Lunchables Progresso Soup (National Expansion) Green Giant Create-A-Meal! Mc Chicken Sandwich McDonald’s Biscuits Louis Rich Carving Board Kraft Healthy Favorites Donrus Baseball Cards Oscar Mayer Light Hot Dogs Cold Cuts Oscar Mayer Fat Free Hot Dogs Cold Cuts Select Slices Oscar Mayer Deli Favorites Gorton’s Fish Filets Veggie Burgers Lessons Body Buddies Protein Plus Cereal Donut Cereal Saluto Pizza Reintroduction Tom’s Potato Chips McRib Sandwich McSteak Sandwich Billy Bologna International Sausage Paul Prudhomme’s Cajun Magic Meats Louis Kemp Sirimi Veggie Nuggets Progresso Pasta Favorites Why Introduce New Products? The Case For Introducing New Products Growth Capacity Utilization Competitive Position The Case Against Introducing New Products Difficulty in Identifying a Really New Idea High Odds of Failure* High Cost of Failure “Cannibalization” of existing business. Therefore the New Product Development Process is a Means of Infusing Creativity and Managing Risk. New Product Development Process A systematic approach that increases the odds of success. Opportunity Identification Business tracking A. C. Nielsen IRI Usage Data NET, Menu Census MRI Trend data Yankelovich Monitor Datamonitor Everyday life Datamonitor Mega-Trends Convenience – Quick meals Health – 90% of Americans feel improving health is important Age Complexity – Greater spending power among children/teens Gender Complexity – Blurring of traditional gender roles Lifestage Complexity – Empty nesters, boomerang children Individualism Customization Sensory Comfort Connectivity 1994 Strategic Insights at Pillsbury Mom’s life is a hassle 9-5 job No time to plan or prepare meals Fussy kids Off to soccer practice Important to get kids to eat vegetables Kids won’t eat vegetables Stress guilt Opport