New Dairy Product Development

Dairy Industry-Centered New Product Development

Today, it is generally agreed that the supply chain is demand led and that market-orientation is crucial for companies (Grunert et al., 1996). These market-oriented businesses have committed to the continuous generation and internal dissemination of market intelligence relevant to the current and future needs of their customers, as well as to the continuous improvement of their responsiveness to such needs (Kohli and Jaworski, 1990). Typically, consumer panels and hedonic evaluations of food are generally performed to understand consumers' quality perception of food products, although further methods, such as conjoint analysis, which ranks different credence cues, or methods using willingness to pay combined with tasting are also applied (Fernqvist and Ekelund 2014). The establishment of methods for an effective, chain-wide integration of product development activities is an area where considerable improvement could be made, not only to benefit the implementation of consumer-led strategies but also food innovation management as a whole (Costa and Jongen 2006). The key stages in the formulation of consumer-led new product development (NPD) closely follow a market-oriented approach: need identification, idea development to address the need, product development to substantiate the idea, and the product's market introduction to communicate the fulfillment of a need (Urban and Hauser, 1993). An effective ability to translate subjective needs (e.g., healthy or convenience) into objective product specifications is essential for the satisfaction of consumer needs through the development of a new product. NPD can be seen as an organizational process in which information about the market and its actors is gathered, diffused, assimilated, and returned in the shape of a new product or service. Key stages in a consumer-led NPD process (Figure 4.2.3.1) ascribe the process to consumers (Costa and Jongen, 2006); however, the process puts heaviest emphasis on the innovation management competencies of the dairy company as an industrial actor. Therefore, in its planned nature, systematic orchestration of company actors and high-level of technological competence required by this process still holds considerable industry centrality.

The development of new junctional products is a challenging process, as the right combination of starters and substrates is needed for optimum nutrition and flavor development; furthermore, claims for health benefits require scientific evidence (see

The consumer-led new product development process (from Costa and Jongen, 2006)

Figure 4.2.3.1 The consumer-led new product development process (from Costa and Jongen, 2006)

An overview of the interlinked process and considerations in fermented beverage production and development (from Marsh et al., 2014)

Figure 4.2.3.2 An overview of the interlinked process and considerations in fermented beverage production and development (from Marsh et al., 2014).

Figure 4.2.3.2) (Marsh et al., 2014). Considering the costs of functional product development entailing clinical trials, innovation in the functional food market may need to become a collaborative effort between industry partners and academia (Khan et al., 2013).

 
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