Competition and pricing continue to be top areas of concern for Food and Beverage businesses, and raw material costs persist as an ongoing worry. Yet, in spite of the challenges, the industries are optimistic predicting continued increases in sales, product offerings and workforces through product innovation and product development.
Brands compete for prime in-store location more than ever. For that reason, product innovation, time to market, accuracy and visual appeal are critical to achieve successful execution. Indeed, product development is an essential lever for competitiveness. Product innovation is one of the best means to add value to products, to get into new market places and to best answer consumers’ needs and wants. To lead competition, it is important for companies to evaluate their business models and offerings frequently enough and change them if needed.
Food and beverage businesses favor incremental product innovations. Most of the time product development consists of enlarging ranges, developing new formula based on an existing one, offering smaller or bigger sizes or adapting packaging.
Product development types
There are many types of product innovation. New product development is not only made through new product development and R&D management. Marketing and corporate innovations are important too (respectively 35% and 39% of the total volume of innovations) while « true product innovation » made through new product development are composed of new products launch (31%) and new processes (30%).
New products development sometimes mean new consumers, the ability to enhance or add new marketing claims or make a splash with a new line extension, and the possibility of reducing costs by altering ingredients, manufacturing processes, packaging or suppliers.
Lascom solution to improve new product development and reduce time to market
Reasons to improve time to market are numerous and attractive:
Time to Market
In this context, it is important to accelerate product development. Every company is racing to develop more products faster and be the first to launch them in the market. Time to market is a key to success in food and beverage. A head start on the competition is the best way to ensure a product’s profitability and the best place on shelf. Those companies who get their products to the shelf or in services too late are forced to compete at commodity price points and suffer poorer returns on R&D investments.
Lascom CPG provides a dedicated solution to assist food and beverage businesses in reducing their time to market. By optimizing the process from the marketing brief to new product launch, Lascom offers an efficient solution with the following features:
Advantages in product development:
- Accelerate product development:
- Creating or editing products
- Pre-formulation : Adding raw materials not listed in the database
- Quantities management ( in “per 100 grams”, in % or in “g / sales unit”)
- Control and optimize the ingredients’ composition and origins (bio and geographical)
- Calculate the nutritional facts and create the nutritional fact panels
- Risk analysis (list of allergens, GMOs etc.)
- Simulate raw materials, packaging and manufacturing costs
- Capitalize on the knowledge acquired (history management to track and reuse different tests)
Traceability and change impacts
The formulation tool provides more efficient R&D management and better traceability based on a centralized repository. R&D teams are even more aware of products specifications and nutritional labeling, two key factors in new product development.
The CPG formulation software tool can be used to properly manage R&D and examine all the impacts of any change, such as regulatory, packaging, nutritional labeling, product specification, customer specifications, costs, etc. and then develop simulated versions for validation and approval.
Access our guides and whitepapers for your industry :
- Agri-food compliance: a global phenomenon. How can we adapt to it ? – White Paper
- Collaboration as a Key to Success in Retail – White Paper
- What has changed due to INCO? – Infographics