Strategic Food Product Development In Terms Of Market Demand

Food product development is a business area that has decades of experience, best practices and strategies behind it. Those who work according to such well developed methods are most likely to achieve their market share. However, it’s never a good idea to design products without making a thorough assessment of industry trends

There are several major movements in the industry that are driving most production management. Weight management that is based on glycemic index, high fiber content and fat burners are receiving plenty of consumer interest. Overall, customers want healthier diets, so they are also seeking foods that are low in sodium.

The health of the heart is of enormous concern to most consumers, so the market is choosing products with vitamin E, a low level of additives and unnatural flavorants. They are also choosing recently hailed nutrient sources such as super foods, natural anti inflammatories and prebiotics.

MSG content and high levels of fructose and glucose are not acceptable to contemporary consumers. There is a powerful move towards niche flavors. Ice creams have spices added, drinks are flavored with nutty tastes and flower aromas are added to yogurt, beverages and sweets.

Those specializing in the development of product ranges require particularly potent leadership skills to control the product’s life cycle at every point. Adaptations need to be made at all stages so that the optimum amount of market share is retained. Strategies need to be built with a consideration to marketing requirements so that items are priced and distributed as the target market needs them to be.

Planning is integral to successful management of product life cycles. The pricing strategy needs to be governed from the perspective of marketing strategy as well as financing. There are many tactics involved in setting price, and if they are not defined by the target market, the item is less likely to attract the necessary market share.

Technological processes need to be considered in terms of how they will influence profitability and expense. Costs will need to be accounted for, since insurance, staffing, location and machines will be needed. Definitions of the item should be completed so that all information regarding packaging, pricing and attributes are kept in one place.

The attributes of products needs to include data about reusable components, as these may be used to reduce the price of producing other items. The diet industry is enormously competitive, so innovation is a core part of successful design. Knowledge of the current market will form a part of decisions, and allow managers to be responsive to changes in consumer demand.

The region’s income and economy play a role in the market appropriateness of an item. Regions with higher incomes have a greater demand for high value items. Consumer groups with reduced incomes are more interested in nourishment and low cost. Most of the international market lives on less than $10 daily. The majority can be catered for, which earns lower profits but high sales levels. Alternatively, larger returns per item can be won by selecting a high income consumer group. Food product development should always be done with plenty of consideration for the niche trends in the market, changes in demand and lifestyle alterations.

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