Food product development Summary:
Food Product Development:
Factors which impact on food product development.
External factors (macro environment) that impact on food product development, including the:
All business organisations are affected by external forces which are outside their control. Success depends on the way you understand and manage the impact of these external factors, to allow you to prepare for any threats to your business, and to make the most of any opportunities.
External factors include:
Relates to the local economy where your business operates.
If you are an exporter you have to consider economic factors in the country where you aim to sell your product.
The state of the economy, such as growth or recession affects employment and wages, and consequently consumer confidence and willingness to spend.
Interest rates are part of the economic environment. Low interest rates encourage growth and investment; high interest rates mean that it will cost you more if you need to borrow money to develop your product e.g. new machinery.
The value of the Australian dollar in relation to overseas currency has an effect on imports and exports. A low currency exchange rate for the $A adds to the cost of imported ingredients and machinery, but it also means that Australian products are less expensive for overseas consumers so that you have an advantage on the export market.
The world of commerce is the marketplace where goods and services are exchanged for money. The commercial environment is where your new product will be put to the test.
To succeed you need to know your competitors, who they are, their products, prices and marketing strategies.
Analysing the competition could...