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Food Industry Overview Cal State Northridge

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Those products would fill one-third or more of a typical grocery store! ... Coupons. Sampling. A COMPLEX PROCESS. Concept. Market. Introduction. Contract ... – PowerPoint PPT presentation

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Title: Food Industry Overview Cal State Northridge


1
Food Industry OverviewCal State Northridge
  • Rhondi Shigemura
  • Sr. Director of Product Development
  • Senomyx, Inc.
  • San Diego, CA

2
Agenda
  • Food Industry Background
  • Developing Foods to meet Consumer Demands
  • Product Development
  • Product Life Cycles
  • Product Development Process
  • Preparation for careers
  • Careers in the Food Industry
  • Careers in Nutrition

3
SENOMYX, San Diego CA
  • Senomyx is the leading biotechnology company that
    uses proprietary human taste receptors to
    discover and develop taste enhancers, taste
    modulators for the food and beverage industry
  • Programs include
  • Salt Enhancers
  • Sweet Enhancers
  • Natural High Potency Sweeteners
  • Umami/Savory Enhancers
  • Bitter Blockers
  • Natural Mint Flavors

4
FOOD INDUSTRY FACTS
  • 1,023b in annual sales
  • Approximately 51.5 Retail, 48.5 Away From Home
  • Highly Labor Intensive
  • Highly Diversified
  • Major Economic Multipliers
  • Stable Demand

USDA Economic Research Service, June, 2006
5
WHY STUDY CONSUMER TRENDS?
Four areas drive ALL consumer purchase behavior
regardless of demographics, psychographics, or
ethnicity
6
EXAMPLES OF THE FOUR AREAS
PLEASURE CONVENIENCE RTB - Cookies
CONVENIENCE NUTRITION Low-fat,
Low-carb Portable Microwavable
NUTRITION CONVENIENCE Olestra potato
chips
SAFETY Pasteurized shell eggs
HEALTH Phytosterols in Margarine
7
PRODUCT LIFE CYCLES
Success
Fad
Trend
Commodity
Annual Sales
Time
The challenge is to create successful products
that do not become commodities. But its hard to
tell the difference.
8
NEW PRODUCTS
  • More than 20,500 new SKUs for food and beverage
    products were introduced in 2005.Those products
    would fill one-third or more of a typical grocery
    store!

Stagnitos NEW PRODUCTS MAGAZINE - January, 2006
9
SOME WIN, BUT MANY LOSELite, Low fat Era
In 2005, sales of these products decreased
significantly did not result in benefits and
products did not meet consumer sensory
expectations.
10
WHY DO NEW PRODUCTS FAIL?
  • Failed consumer expectations
  • Promotional failure
  • Positioning failure
  • Timing Failure
  • Cultural Failure (Internal / External)
  • Technical Failure
  • Financial Failure

11
SOURCES OF GROWTH
Desired Growth
  • New Products
  • Acquisitions
  • New Markets
  • Line Extensions
  • New Uses for Existing Products

Profit or Sales
Break Even Line
Natural Growth
Time
12
STAGES OF PRODUCT DEVELOPMENT
  • Idea Generation
  • Prototype Creation
  • Market Testing and Strategy Validation
  • Further Product Development
  • Consumer Validation
  • Production Scale up
  • Market Introduction

Consumer Interaction
13
Idea Generation
  • ??????
  • It all starts with an idea
  • A GOOD IDEA

What needs or benefits will your product fill
and will people buy it?
14
Prototype Development
  • Some Physical Product Example of Your Idea
  • Recipe
  • Some tweaked product with the built in desired
    attributes

15
Market Testing and Strategy Validation
  • Put your prototype in front of your target
    consumer
  • See how they react
  • Do they like the flavor, benefits, texture,
    color, aroma?
  • What are they willing to pay for something like
    this?
  • Gather valuable feedback and .
  • Back to the lab

16
Further Product Development
  • Reformulate your product
  • Fix the attributes that the consumers didnt like
  • Improve the attributes that they did like
  • Validate processing, equipment, product stability

17
Consumer Validation
  • Go back to the consumer with this new and
    improved product
  • Gain acceptance
  • Do they like this new product?
  • How much are they willing to pay for it?
  • How many times a year will they buy it?
  • Will it replace something that they already
    purchase?

18
Production Scale Up
  • Ensure the product is scale able at a large
    production level
  • Runs on current equipment
  • Process engineering
  • It is safe
  • Meets processing requirements
  • Meets Regulatory guidelines
  • Develop the pretty package
  • Does it meet costs?
  • Shelf life testing

19
Market Introduction
  • Launch the Product
  • Buy all the raw materials
  • Manufacture the product
  • Ship/distribute the product
  • Get it into the consumer hands
  • Marketing campaigns
  • Coupons
  • Sampling

20
A COMPLEX PROCESS
Product Development
QA / QC
Purchasing
Legal
Package Design
Final Product Specifications
Prototype Development
Prototype Development
Materials Sourcing
Regulatory Compliance
Materials Specification
Materials Costing
Engineering Scale-up
Materials Testing
Intellectual Property
Nutritional Label
Product Costing
Supplier Due-Diligence Costing
Material Specification
Manufacturing Compliance
Storage Testing
Transactions
Contract Manufacturing
Environmental Compliance
Equipment Specifications
Technical Service
Market Introduction
Concept
Warehousing Distribution
Advertising
Consumer Testing
Financing
Sales Brokerage
Waste Disposal
Product Testing
Budgeting
Label design
Operations
Project Valuation
Competitive Analysis
Production
Pricing
Concept validation
Investment Criteria
Process Specification
Promotion
Manufacturing
Market Research
Financial
Sales Marketing
21
Career Options within the Food Industry
  • RD
  • Product Development
  • Research
  • Packaging
  • Process Engineering
  • Menu Development
  • Commercialization
  • Regulatory
  • Analytical Chemistry
  • Quality Assurance/Manufacturing
  • QA manufacturing
  • Food Safety
  • Microbiology
  • Vendor Management
  • Sanitation
  • Supply Chain, Purchasing
  • Manufacturing, management
  • Academia
  • Teach
  • Research
  • Consult

22
Career Options within the Food Service Industry
  • Restaurants, Chains
  • Menu Development
  • Product Development
  • Nutritionist or Dietician
  • Public Health
  • Marketing/Sales
  • Quality Assurance, Food Safety
  • Restaurant Manager
  • Food Distribution
  • Purchasing
  • Other
  • Information Specialist
  • Writer
  • Nutrition or Foods Writer
  • Weight loss counselor

23
Careers within the Nutrition
  • Nutrition
  • Registered Dietician, Health Maintenance
    Organizations
  • Menu Development hospitals/health
    centers/schools/care centers/social meal programs
  • Education, Academics
  • Life Coach
  • Nutrition Packaged Foods Corporation, Chain
    Restaurants/QSR, Restaurants
  • Health, Nutrition, Foods Focused Companies
    Jenny Craig, Weight Watchers, E Diets, Curves, 24
    Hr Fitness, Other fitness clubs and programs
  • Technical Writers
  • Research, Clinical Trials
  • Pharma Sales
  • Holistic health care/nutritional therapy

24
How Can You Prepare?
  • Use internships with business to expose to
    non-technical disciplines
  • Read.outside technical resources (list
    available)
  • Expose oneself to multi-discipline activities
  • Take business related coursework
  • Sharpen Skills and Abilities
  • Communication (written, verbal, presentation)
  • Ability to organize and analyze information
  • Computer skills (Word, Excel, PowerPoint, MS
    Project)
  • Problem solving, interpersonal skills

25
How Can You Prepare
  • Interact and network within various professional
    organizations
  • IFT, Southern California Institute of Food
    Technologists
  • ADA, American Dietetics Association
  • Womens Food Service Roundtable
  • RCA, Research Chefs Association
  • NRA, National Restaurant Association
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