Title: Food Industry Overview Cal State Northridge
1Food 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
3SENOMYX, 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
4FOOD 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
5WHY STUDY CONSUMER TRENDS?
Four areas drive ALL consumer purchase behavior
regardless of demographics, psychographics, or
ethnicity
6EXAMPLES 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
7PRODUCT 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.
8NEW 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
9SOME 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.
10WHY DO NEW PRODUCTS FAIL?
- Failed consumer expectations
- Promotional failure
- Positioning failure
- Timing Failure
- Cultural Failure (Internal / External)
- Technical Failure
- Financial Failure
11SOURCES 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
12STAGES OF PRODUCT DEVELOPMENT
- Idea Generation
- Prototype Creation
- Market Testing and Strategy Validation
- Further Product Development
- Consumer Validation
- Production Scale up
- Market Introduction
Consumer Interaction
13Idea Generation
- ??????
- It all starts with an idea
- A GOOD IDEA
What needs or benefits will your product fill
and will people buy it?
14Prototype Development
- Some Physical Product Example of Your Idea
- Recipe
- Some tweaked product with the built in desired
attributes
15Market 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
16Further 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
17Consumer 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?
18Production 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
19Market 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
20A 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
21Career 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
22Career 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
23Careers 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
24How 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
25How 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