BEYOND FORMULATION AND PROCESSING

1
BEYOND FORMULATION AND PROCESSING

• PACKAGING
• LABELING
• NAMING
• PRICING
• DISTRIBUTION AND SHELF-LIFE

2
LABELING

• LEGAL REQUIREMENTS
• NAME
• COMPANY ADDRESS
• NET WEIGHT
• INGREDIENT LABEL
• NUTRITIONAL LABEL
• PERFORMANCE LABELING
• ATTRACTIVENESS OF LABELING

3
THE PACKAGE

• MUST PROTECT THE PRODUCT
• MUST BE PORTABLE
• MUST BE FUNCTIONAL
• STORABLE
• EASY TO OPEN
• EASY TO RESEAL
• CLEAR INSTRUCTIONS FOR USE

4
THE PACKAGE (CONT.)

• MUST PROVIDE FOR INGREDIENT LABELING
• MUST PROVIDE FOR NUTRITIONAL LABELING
• MUST COMMUNICATE PRODUCT BRAND

5
THE PACKAGE (CONT.)

• MUST DIFFERENTIATE PRODUCT FROM THAT OF THE
  COMPETITOR
• MAY BE CENTRAL TO THE ENTIRE PRODUCT DEVELOPMENT
  VENTURE LUNCH BUCKET, ASEPTIC PACKAGING
• MUST BE ATTRACTIVE!!!!

6
PACKAGE TESTING

• USE OF FOCUS GROUPS
• USE PROJECTED IMAGE TO DETERMINE PACKAGES ABILITY
  TO IMPACT CONSUMER
• IN STORE SIMULATION
• SEMATIC DIFFERENTIAL RATINGS TO ASSESS ABILITY OF
  PACKAGE TO COMMUNICATE PRODUCT ATTRIBUTES

7
PRODUCT PERFORMANCE TESTING

• BASED ON IDENTIFICATION OF MAJOR ATTRIBUTE
• BASED ON IDENTIFICATION OF SAFETY FACTORS
• BASED ON IDENTIFICATION OF SHELF-LIFE FACTORS

8
TESTING METHODS

• PERFORMANCE TESTS ARE GENERALLY NOT RESEARCH
  TESTS
• NEED TO BE SIMPLE, LOW COST AND PROVIDE ESSENTIAL
  INFORMATION
• NEED TO ESTABLISH FREQUENCY OF TESTING AND
  TOLERANCES FOR RESULTS

9
PRODUCT NAME

• NAME MUST BE EASY TO PRONOUNCE AND REMEMBER
• NAME MUST NOT HAVE ANY NEGATIVE CONOTATIONS
• FIT THE MARKET STRATEGY OF THE MANUFACTURER
• NOT ALREADY BE TRADE MARKED

10
NAME DEVELOPMENT

• QUALITATIVE OR QUANTIATIVE
• USE OF CONSUMER RESEARCH
• USE OF LINGUISTIC CONSULTANTS
• NEED TO DEFINE CRITERA FOR NAMING THE PRODUCT
  WHAT IS THE MOST IMPORTANT?

11
PRICING THE PRODUCT

• HOW PRICE SENSITIVE IS THE GENERAL AREA IN WHICH
  THE PRODUCT WILL COMPETE?
• NEED TO ASSESS PRICE/QUALITY ATTRIBUTES
• THE MORE INNOVATIVE THE PRODUCT, THE LESS CAPABLE
  CONSUMERS ARE TO EVALUATE PRICE/VALUE
  RELATIONSHIPS

12
PRICING METHODS

• QUALITATIVE APPROACHES ARE OF LIMITED VALUE
• NEED CAREFULLY CONSTRUCTED QUANTITATIVE METHODS -
  SUCH AS PRICE/ELASTICITY CURVES
• ANALYSIS OF VARIANCE RANKING DATE TO DETERMIN
  IMPORTANCE OF ATTRIBUTES AND HOW MUCH CONSUMER
  WILL PAY FOR EACH ATTRIBUTE

13
MORE PRICING

• CRITICAL TO ALL PRICING DECISIONS IS IN MARKET
  EXPERIENCE, WHERE PRICE LEVELS CAN BE EVALUATED
  AND ADJUSTED TO REFLECT SUCH FACTORS AS
  COMPETITIVE ENVIRONMENT, COUPON AND DISPLAY
  ALTERNATIVES AND THE RESULTS OF PROMOTION SCHEMES

14
PRODUCT PERFORMANCE

• WHAT TO CONTROL?
• WHAT TO MEASURE?
• HOW TO DO IT?
• RESULTS MUST BE INTERPETED WITH CARE

15
TAKE HOME

• MANY FACTORS MUST BE CONSIDERED BEYOND JUST
  FORMULATION AND PROCESSING -INCLUDING
• LABELING
• PACKAGING
• NAMNG AND PRICING
• PRODUCT PERORMANCE