COLLEGE OF NATURAL SCIENCE
CENTER FOR FOOD SCIENCE
Course: food product development
Prepared by Abel Afework .
INTRODUCTION
Product development is a critical process that
drives innovation, customer satisfaction, and business growth.
By understanding customer needs, designing and testing
products, and launching them effectively, businesses can create
value and stay ahead in the market.
Product development is a systematic process that includes:
9 steps and the last two steps are :
Marketing & Commercialization
Launching and Post-Market Evaluation
Marketing & Commercialization
Marketing is the process of promoting and selling
products, services, or ideas to target customers.
It involves understanding customer needs, creating value,
and building relationships to drive sales and brand loyalty.
Commercialization is the process of turning an idea or
product into a viable business.
It involves scaling managing distribution, and generating
revenue to make the product or service sustainable and
profitable.
Cont,
Marketing and Commercialization are drive
business growth by:
Identifying market opportunities.
Creating value for customers.
Turning ideas into profitable products/services.
Ensuring long-term business success.
Branding & Storytelling
Branding is about creating a distinct identity for a
company, product, or service.
The goal is to make the brand recognizable, trustworthy,
and memorable.
Storytelling is the art of using narratives—real or
imagined—to connect with people emotionally.
In marketing, it’s used to communicate a brand’s values,
mission, and personality in a way that resonates with
customers.
Pricing Strategies
Pricing Strategies are methods businesses use to set the
price of their products or services.
They help balance profitability, customer value, and
competitive positioning.
Common Pricing Strategies:
Cost-Based Pricing
Value-Based Pricing
Competitive Pricing
Penetration Pricing
Skimming
Distribution channel
A distribution channel is the path a product or service takes
from the manufacturer to the final customer.
It determines how efficiently and effectively the product
reaches the right people at the right time
Actors of a Distribution Channel
Producer
Wholesalers
Retailers
End Customer
Types of Distribution Channels:
Direct Distribution: The company sells directly to
customers (e.g., online, through a company store).
Indirect Distribution: The company uses intermediaries
like wholesalers or retailers to sell the product.
Multichannel: Using multiple channels (online, in-store,
mobile) to reach customers.
This helps to ensure the product is available where and
when customers want it, while keeping costs low and
maintaining control over the customer experience.
Promotion and Advertising
Promotion is the process of encouraging people to buy a
product, service, or idea.
It’s a key part of marketing and involves various strategies
to attract customers and drive sales.
Advertising is a type of promotion that uses paid
media (like TV, radio, online ads, billboards, or social
media) to reach a target audience and communicate a
message.
cont
It’s a targeted, measurable way to promote a product or
brand.
Components of Promotion:
Advertising
Sales Promotions
Public Relations
Personal Selling
Direct Marketing
[Link] and Post-Market Evaluation
Launching refers to the process of introducing a new
product, service, or idea to the market.
It involves planning, marketing, and execution to ensure
the product is well-received and successfully reaches its
target audience.
Steps in a Product Launch:
Market Research
Product Development
Marketing Strategy
Sales Strategy
Launch Event or Campaign
Customer Feedback
[Link]-Market Evaluation
Post-Market Evaluation is the process of assessing the
performance of a product or service after it has been
launched.
It helps businesses understand what’s working, what’s not,
and how to improve the product or strategy.
Activities in Post-Market Evaluation:
Sales Analysis
Customer Feedback
Market Response
Performance Metrics
Product Improvement
Significance of Launching and Post-Market Evaluation
Significance of Launching and Post-Market Evaluation
Launching is about getting the product out there and
creating initial demand.
Post-Market Evaluation is about learning from the
market and making informed decisions for future growth.
Together, they form a complete product lifecycle that helps
businesses launch successfully and continue to
improve over time.
Cont.
Monitoring consumer response is the process of tracking
and analyzing how customers react to a product, service, or
marketing campaign.
It helps businesses understand what is working, what is not,
and how to improve the customer experience.
This is a key part of market research and customer
feedback management.
Cont.
Monitoring consumer response is essential for
understanding how customers perceive your product or
service.
It helps you make informed decisions, improve the
customer experience, and stay competitive in the market.
Metrics to Track
Customer Satisfaction
Net Promoter Score
Customer Retention Rate
Feedback Volume
Sentiment Analysis
Improving a Product Based on Consumer Feedback
Customer feedback is a powerful tool for continuous
improvement. By listening to what customers say and
doing, businesses can refine their products, enhance the
user experience, and build long-term success in the mark
Improve a Product Based on Consumer Feedback
Collect Feedback
Analyse the Feedback
Prioritize Improvements
Implement Changes
Communicate with Customers
Monitor and Iterate
Cont
Why Consumer Feedback Matters After Launch
Identifies issues: Helps spot problems that may not have
been apparent during development or testing.
Builds trust: Shows customers that the company values
their input and is committed to improvement.
Drives innovation: Encourages new features, better design,
or improved functionality.
Supports long-term loyalty: Customers are more likely to
remain loyal if they feel heard and valued.
Expanding in to new market or product varaition
Expanding into new markets and introducing new product
variations are essential strategies for growth, innovation,
and long-term success.
By listening to customer feedback, conducting thorough
research, and adapting your offerings, businesses can stay
competitive and meet the evolving needs of their
customers in new and exciting
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