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Setting the Trend
Trends are an expression of emerging consumer needs, desires and values. Trends (not to be confused with the latest craze or fad) constantly influence and shape the products of tomorrow, some of which may forever change the marketplace. Going hand-in-hand with a trend is innovation. Fortunately, there have always been innovators in the world striving to come up with something different, something better. The music industry is a perfect example. Consumers have gone from listening to records, to eight tracks, to tapes, to compact discs, and currently, Apple is dominating the industry with the iPod and iTunes.
In order to take advantage of a trend and build your business, it is important to spot the trend early. Below are some trends that are expected to have an impact on new product development in the near future.
According to a 2007 study conducted by Stagnito’s New Products Magazine, the most important consumer trends when developing new food and beverage products are:
• Organic – 76%
• Energy – 73%
• Natural – 62%
• Ethnic – 59%
• Whole Grain – 54%
The following trends are predicted to impact CPG product innovation, according to studies conducted by Mintel and Information Resources, Inc. in 2007:
• Functional foods and beverages offering benefits of health and disease prevention
• Gourmet products
• Increase of products, services, marketing and merchandising toward children
• Environmental and social consciousness
• Increased healthcare needs of baby boomers
• Innovations in packaging
• Growth in teen market (home care and snacks)
• Innovations within breakfast category
• Refillable packaging
• Increases in portion control
• Brain-power foods
• Customized products
The hottest food trends, as noted by the National Restaurant Association, include:
• Bite size desserts – 83%
• Locally grown produce – 81%
• Organic produce – 75%
• Small plates/Tapas – 73%
• Specialty sandwiches – 71%
• Sustainable seafood – 65%
• Grass fed items – 65%
• Energy drink cocktails – 64%
• Salts (sea, smoked) – 64%
• Ethnic fusion cuisine – 64%
• Flatbreads – 63%
• Asian appetizers – 62%
According to the Marketing Corporation of America, the key rules for success in new product development are:
• Capitalize on trends that fit with brand equity
• Provide added value to the expanded target by addressing needs not previously met
• Leverage new or transferred technology
Trends with Beef
While the above trends cover the entire food and beverage industry, it’s important to take a look at trends specific to the beef industry as well. For instance, a recent trend has been muscle profiling. The exploration of the chuck roll successfully resulted in five new value added cuts that are currently being marketed across the country. In addition, due to the increasingly busy lives of American consumers, convenience products have become a recent trend as well. NCBA and Producer identified trends in beef:
• Convenience
• Health / Wellness
• Safety
• Quality
• Price
Which came first, the trend or the innovation?
Do consumer desires spark the innovation of new products, or, do innovative new products create trends that wouldn’t have existed otherwise? In either case, consumer acceptance is key, as 50% of new products fail in the marketplace. According to John Gourville of the Harvard Business School, innovators tend to overestimate the size of their market as well as the consumer willingness to adopt the innovation, even if it is an improvement. Innovation requires consumers to change their habits, which they are often reluctant to do.
Gourville identified four classifications of new products in his research:
1) Tinkering (low technological improvement, low consumer change)
Examples include toothbrushes with angled heads or cars with minimal improvements in mileage. Most new products fall into this category.
2) Unlikely Adoption (low technological improvement, high consumer change)
An example of this category is the Dvorak typing keyboard, which was designed to increase typing speeds. However, as most consumers are already well acquainted with the QWERTY keyboard, it was asking a lot of consumers to learn a new method.
3) Long Haul (high technological improvement, high consumer change)
Examples include the cell phone, satellite radio and TiVo. These are products that took a long time to work their way into consumer’s lives, but they are now here for the long haul.
4) Home run (high technological improvement, low consumer change)
An example of this category is Google, which is simple to use and a significant technological improvement.
When developing a new product, it’s important to determine which of these categories the product would fall into and develop strategies accordingly. Before launching a new product, prepare for a long haul, but aim for a home run. For more information about how BIG can help you start a new trend with beef, contact the appropriate person below:
Youth products, convenience products or new chuck roll cuts:
Steve Wald, Director, New Product Development, swald@beef.org
New Product Commercialization and Industry Partnerships:
Jim Ethridge, Director, New Product Industry Partnerships, jethridge@beef.org
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