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Factors Influencing Product Development
Product development is an innovative activity designed to meet the changing consumer demands. It is becoming increasingly important in the dynamics of marketing environment. Product developers should be familiar with marketing, financial implications and logistics of introducing a new product into the competitive market. Moreover, they have to know how to undertake product development work from the customer's perspective. Products will have to be developed in response to a specific, clearly identified market opportunities. In addition to consumer demands, the driving forces behind new product development are peer competition, availability of new technology and alternate raw materials, and desire for novelty. Market fragmentation leads to developing different types of foods for various categories of consumers. As these are likely to intensify, the product life cycles are likely to shorten. Increase in the purchase power of sections of population, changing life styles, and increased emphasis on health and nutrition put pressure on processors to offer something new to the consumer. Science and technology in the food industry are increasingly defined by the demands and perception of the market place. To cope with such a situation the food industry has to resort to product development and innovation as a continuous activity. But, whatever may be the influencing force, remember it is always important to develop consumer oriented products. And how do we go about it? Read and find out.
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