If you have a great idea for a new food product, you might be wondering how to turn it into a profitable business. Scaling up from a small batch to a mass production can be challenging, but not impossible. In this article, we will share some key steps to ensure your new food product can be scaled for mass production in the context of agribusiness.
Before you invest time and money into scaling your new food product, you need to validate that there is enough demand and potential customers for it. Market research can help you identify your target market, their preferences, needs, and pain points, as well as your competitors and their strategies. You can use various methods to conduct market research, such as surveys, interviews, focus groups, online platforms, or secondary data sources. Market research can also help you determine the optimal price, packaging, and distribution channels for your new food product.
Understanding customer needs is paramount in product development to ensure that what is delivered truly addresses a customer's problem or fulfills their needs. Failing to do so can result in the creation of a product that falls short of expectations and lacks market relevance. When a product is not a solution to a customer's problem or need, it not only wastes valuable resources but can also damage a company's reputation and credibility. By thoroughly understanding customer needs, businesses can align their product development efforts with real-world demands, creating solutions that resonate with their target audience.
The world is fortunate to be replete with talented packaging professionals. Scaling a safe food product that is demanded by consumers from small to mass is highly achievable from a science and engineering perspective. The associated economics can be anticipated and managed reasonably well. The biggest challenges often come down to a chicken and egg balancing act over 5 main possible outcomes: - starts and stays small - becomes moderate - Ramps and fades - steady Eddy large - fails If only we could know in advance which of these results we were planning for. Consumers make juries look rational, there are many surprises lurking. The key is to engage supply partners with real knowledge and thought leadership in the needed areas.
Social Media for Food Product Validation In the age of digital technology, the power of social media cannot be understated when it comes to validating a new food product idea. It serves as an invaluable platform for market research, enabling you to connect directly with potential customers, gather insights, measure interest, and refine your product concept before making substantial investments. This guide will take you through the steps of creating a sample social media account, sharing your food product idea, and collecting feedback.
Market research has severe limitations. If Henry Ford had asked people what they wanted for better transport they would have said “a faster horse” (not a motorcar).
Strategic Planning based on facts based management is must for sustainable business. Strategic planning must be based on facts based with proper analysis of data collected. If and when required mid term modification to be done for long term planning. Quality of products and process is equally important
Once you have a clear idea of what your customers want and what your competitors offer, you can start developing your new food product. Product development involves creating a prototype or a minimum viable product (MVP) that meets the basic requirements and expectations of your target market. You can use different tools and techniques to design and test your new food product, such as brainstorming, prototyping, sensory evaluation, shelf-life testing, or consumer testing. Product development can also help you refine your product features, benefits, and value proposition.
Finding the right balance between speed to market and impactful innovation is crucial for success. Going back to the whiteboard and being open to making adjustments at any stage of the innovation cycle is important to ensure that the final product meets the needs and preferences of consumers. MVP allows for fast development and testing among early adopters. This helps gather feedback which can inform further iterations and improvements. Furthermore, the user testing methodology used should be agile, adapting to the product being tested. For ex staple products with lower brand loyalty, traditional methods like In-Home Usage Testing may not provide significant insights unless the product offers distinct features that set it apart.
Testing with consumers is critical. Early validation to make sure the product is resonating with customers is pivotal - use early feedback to iterate, refine and enhance to meet the market need.
Another important step to ensure your new food product can be scaled for mass production is to comply with the relevant regulations and standards in the food industry. Regulatory compliance can affect various aspects of your new food product, such as its safety, quality, labeling, packaging, nutrition, allergens, or environmental impact. You need to be aware of the laws and regulations that apply to your new food product in the markets where you plan to sell it, and obtain the necessary approvals, certifications, or licenses from the authorities. Regulatory compliance can also help you avoid legal risks, fines, or recalls.
To scale your new food product for mass production, you also need to optimize your production process and make it more efficient, consistent, and cost-effective. Process optimization involves analyzing and improving the different steps and factors involved in making your new food product, such as the ingredients, equipment, methods, recipes, time, temperature, or waste. You can use various tools and techniques to optimize your production process, such as lean manufacturing, six sigma, Kaizen, or automation. Process optimization can also help you increase your productivity, quality, and profitability.
Another key step to ensure your new food product can be scaled for mass production is to manage your supply chain and ensure its reliability, flexibility, and sustainability. Supply chain management involves planning and coordinating the flow of materials, information, and money from the suppliers to the customers. You need to establish and maintain good relationships with your suppliers, distributors, retailers, and other stakeholders in your supply chain, and monitor and control their performance, quality, and costs. Supply chain management can also help you reduce your risks, inventory, and environmental impact.
The final step to ensure your new food product can be scaled for mass production is to develop and implement an effective marketing strategy that can attract, retain, and satisfy your customers. Marketing strategy involves identifying and communicating your unique selling proposition (USP), brand identity, and value proposition to your target market, and persuading them to buy your new food product. You can use various tools and techniques to create and execute your marketing strategy, such as segmentation, targeting, positioning, marketing mix, or digital marketing. Marketing strategy can also help you increase your sales, market share, and customer loyalty.
Market research failures leading to unsatisfying solutions have been witnessed in various industries. One notable example is the launch of "New Coke" by The Coca-Cola Company in 1985. Despite extensive market research indicating a preference for a sweeter cola taste, when New Coke was introduced, it faced massive public backlash and rejection from loyal Coca-Cola consumers. The disconnect between the research findings and consumer sentiment illustrated that the research might have missed the emotional attachment customers had to the original product, emphasizing that understanding the emotional and psychological aspects of customer preferences is as crucial as purely quantitative data.
Here something to share: How Netflix stole the attention with its campaign for Lupin One of the most watched series on Netflix, which tells the adventures of a thief inspired by the literary character of Arsène Lupin. On the occasion of the third season, released on October 2023, Netflix launched an original and brilliant marketing campaign, based on the theft of jewels from luxury brands. They created posters that mimicked the visual codes of luxury jewelry and watch brands, such as Rolex, Cartier, Chanel and Hermès, but replacing the name of the brand with that of the series and implying that the jewels had been stolen by Lupin which were displayed on the streets of Paris during Fashion Week. BRILLIANT!