The Aim of R and D

 The research and development process for new fresh cut products involves hundreds of questions that boil down to two all-encompassing issues: “will consumers like it?” and “will it make money?”

 Getting to those answers requires painstaking work involving R and D teams, marketers, engineers, scientists, retailers and others along the way asking and answering dozens of other questions.

 The process begins the moment someone comes up with an idea and then begins to test that premise.

 “In creating new products, we consider the market and menu trends, top selling salad dressings, and the needs of our loyal customers,” said Tristan Simpson, director of marketing for Ready Pac Foods. “We then develop new bench-top recipes that support the trends and needs, conduct testing sessions to refine the taste profile, and then (do) field product trials and shelf life tests before launching into market.”

 Beginning with profitability

 Many food companies conduct their R and D process by working from a proven methodology.

 At Safeway Fresh Foods, prospective new products go through a series of key action steps, said Sal Tedesco, co-owner of the company.

 The Safeway team will research consumer and culinary trends and brainstorm ideas against those trends. Then, still very early in the process, comes the issue of dollars and cents. Safeway builds a business case to define the product line, develop the cost of raw materials and manufacturing and then develop a project plan.

 The economic question must be answered to a company’s satisfaction before the process gets to the more-recognized aspects of R and D such as consumer focus groups.  

 “One of the first things you do is put pencil to paper,” said Bob Whitaker, chief scientific officer with the Produce Marketing Association (PMA), who has long experience in new product development. “You have to do your homework to understand what the price points are going to be. It’s very unlikely I’ll be able to go into a retailer with a salad priced at $12 per plastic container when I can’t see comparable prices near that product. So you start at what consumers are paying for this kind of a product and calculate backward.”

 Rolling out a winner

 Safeway Fresh Foods, guided by Tedesco family members Sal, Anna, Frank and Sam, used its R and D process to develop products such as its Grab and Go single serve salad offering. Safeway’s process includes early involvement of customers, suppliers and distributors.

 “We look at product gaps,” said Sal Tedesco. “How do we seize the opportunity and demand for healthy grab and go meal and snack options? We’re constantly challenging ourselves to think out of the box.”

 Ready Pac launched its single-serve salad line in 2003 with its Bistro Bowl Salads. Adding new products means the company’s R and D team works with club, retail and foodservice customers to evaluate new ideas and conduct consumer focus groups.

 “Taste, shelf life and quality are the critically important factors in our new product development process,” said Simpson. “We focus on specific lettuce blends and ratios and the continual blend of ingredients and dressing. In addition, we focus on optimum quality throughout the code date, and compatibility with our innovative packaging.”

 And the package is a big part of developing a successful fresh cut product. There’s much to consider: the ability of consumers to see the product, attractive and increasingly interactive labeling and the economics and mechanics of how the product fits inside the package.

 “In the fresh business, the eye eats first — so from the ingredients inside the package, to the package footprint and aesthetics, to the final label identification are all critical to the product’s success,” said Tedesco.

 Ready Pac’s philosophy of packaging R and D involves letting the customer see as much of the product as possible.

 “We showcase our recipes in clear, transparent packaging with limited labeling,” said Simpson. “This allows us to highlight what the product offers without relying solely on the labeling to communicate the messaging.”

 Because R and D has so many components, companies need to determine the point at which they know enough to launch a new product. A fresh cut company that serves foodservice customers does not necessarily have to conduct direct consumer testing. Other companies may want to launch only when their R and D process has yielded positive response from consumers.

 For Safeway Fresh, the decision to launch comes after a limited-time live market evaluation.

 “Our experience has been that a small market test for six to eight weeks usually provides good feedback to determine whether it is a go/no go for full product launch,” said Tedesco.

 Each new product needs to fit a company’s overall marketing philosophy and its best estimation of current and future consumer tastes.

 Ready Pac believes its specialty fits well with current trends and will continue to roll out product based on that model.

 “The single service salad segment is growing at 22 percent and we believe that it will be the primary growth engine for fresh-cut produce over the next three to five years,” said Simpson.

 For Safeway, new products are to be consistent with the motto “simplicity shines.” Consumers want fresh cut products with simple ingredients and that are fresh, portable and convenient.  After launch, the R and D process continues to monitor whether the product is meeting those goals.

 “R and D is involved with post-launch evaluation to work with operations and customers to make sure the product/program is meeting expectations, and if not, what revisions may be necessary,” said Tedesco.

 Lee Dean, editorial director



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