ROAD-BLOCKS TO SUCCESS -OBJECTIVES

1
ROAD-BLOCKS TO SUCCESS -OBJECTIVES

• To understand why new products fail
• To develop concepts to prevent new product
  development failures

2
WHHERE DO NEW PRODUCTS FAIL????

• Failures during concept development
• Failures during product research and development
• Failures during scale-up
• Failures during manufacturing
• Failures during market evaluation
• Failures in channels of distribution
• Failures in consumer use

3
Why do new products fail

• There are many reasons for failure, but if we
  want to describe failure of new products in a
  single word it comes down to
• PEOPLE
• AND LACK OF UNDERSTANDING OF ALL ASPECTS OF THE
  PRODUCT , PROCESS AND PACKAGE REQUIREMENTS

4
WHY DO NEW PRODUCTS FAIL

• Inadequate consumer research
• Lack of management support
• Inadequate communications
• Inadequate documentations
• Inadequate training
• Technical reasons
• Legal reasons
• Cost of implementation too large

5
TECHNICAL REASONS

• Physical effects- thermal, mechanical, colloidal,
  theological
• Chemical and Enzymatic Reactions - Interactions
  among ingredients, flavorings, colorings
• Microbiological Activity - spoilage and
  pathogenic organisms
• Sensory Problems - taste, odor, texture, color
• Packaging System Problems - physical and barrier
  problems - package interactions

6
STEPS IN CONTROLLING PRODUCT FAILURES
7
DURING ALL PHASES

• COMMUNICATIONS
• COMMUNICATIONS
• COMMUNICATIONS
• KEEP ALL PARITIES INVOLVED AND INFORMED AT EVERY
  POINT IN THE PROCESS

8
CONCEPT DEVELOPMENT

• Make sure that you do a thorough job of market
  research
• Make sure that you product attritubes really meet
  the consumer need
• That the factors controlling them at lab, pilot
  plant and products are fully understood
• That the product can be made at full production
  scale through the complete distribution schedule
  without loss of attributes

9
DURING RD INCLUDING PILOT PLANT WORK

• Consider physical, chemical, microbiological,
  nutritional, sensory, packaging, shipping and
  consumer use factors.
• Involve pilot plant, manufacturing and packaging
  engineers at early stages of development
  process-product-package interactions

10
DURING RD INCLUDING PILOT PLANT WORK (CONT)

• Carefully train all pilot plant operators,
  develop QA and HACCP plans with QA staff.
• Develop manufacturing operating instructions
  based on pilot plant results, develop consumer
  use instructions.

11
DURING MANUFACTURING

• Involve QA staff in all phases of implementing QA
  and HACCP plans
• Finalize Detailed operation instructions - in a
  form understandable to all operators
• Train all operating personnel op operating
  instructions and the need (reasons) for
  compliance

12
DURING MANUFACTURING (CONT.)

• Finalize detailed sanitation instructions
• Train all sanitation personnel on sanitation
  operating instructions -- instructions and
  training may need to be in languages other than
  English
• Finalize detailed instructions for storage,
  warehousing and shipping

13
DURING MANUFACTURING (CONT.)

• Check on date of production, shipping and holding
  history, production records on ingredients used
  and amounts used.
• Microbiological examination - bacteria, yeast and
  mold counts pathogens as appropriate
• Production of pilot plant test lots -- follow-up
  thermal shock mechanical vibration shock testing
• Storage stability tests - 30 days at 0, 5, 25 and
  37 oC
• Sensory evaluation - flavor and aroma, color and
  texture
• All ingredients checked for compliance with
  specifications

14
DURING DISTRIBUTION

• Maintain retention samples for reference
• Establish and maintain shelf-life testing
  procedures
• Maintain a check of customer complains
• Review records of your total distribution system
  for possible technological problems
• Continually review repeat sales records
• Keep tract of competitors

15
WHAT WOULD YOU DO AS R D - IF

• YOUR NEW PROTEIN BAR
• Failed to achieve the projected 5 of the market
  share?
• YOUR NEW 2 ICE CREAM
• After being on the market for 2 months,
  quantitative descriptive analysis panel
  characterized off flavor as "phenolic" and
  "charcoal" mouthfeel as lacking in "creaminess"
• YOUR CHOCOLATE FUDGE TOPPING
• After shipping from the manufacturer to food
  stores, sporadically, lots of the topping
  packaged in 12 ounce glass jars showed separation
  into two phases - with an oily phase on top when
  held on the store shelf.-

16
TAKE HOME

• PRODUCT FAILURE CAN OCCUR AT ANY STEP IN THE
  DEVELOPMENT AND FINAL PRODUCT STAGE
• COMMUNICATIONS AND VIGILANCE ARE KEY FACTORS IN
  PREVENTING PRODUCT FAILURES