Analyzing Food Industry and Product Development

The provided document is a collection of research papers and articles related to the food industry. It covers various topics such as the role of open innovation in new product development, the impact of ultra-processed food and drink industries on public health, and marketing strategies in the age of sustainable development. The document also includes information on centralized production control and the importance of self-regulation in the food industry to promote success and avoid public health failures.

FOOD AND BEVERAGE

Table of Contents
INTRODUCTION...........................................................................................................................1
Aim, policies, standards embedded in food and management system of KFC......................1
New Product Development Plan............................................................................................2
Design of food beverage management system of KFC..........................................................5
Importance of marketing, sales and promotion for KFC........................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Illustration Index
Illustration 1: New Product Development: Vegan Burger...............................................................4
Illustration 2: Centralised Production Control.................................................................................6

INTRODUCTION
Food and beverage industry in the country plays a vital role in serving edibles to
consumers. The industry contributes maximum to economy as it has maximum return in
comparison all other industry like, retailers telecom, manufacturing etc. The report will analyse
new product development plan of KFC vegan burger which comprises ingredients like,
chickpea's, sweet corn, fresh coriander, paprika, lemon, plain flour, lettuce, tomatoes and tomato
ketchup. KFC is among the leading food chain of UK and now its new vegan burger is focused
on serving food satisfaction to its health conscious customers. Further, the report will discover
the process which will be used by the company to serve product to consumers. Thus, the report
will outline the prices for each ingredient which is required to prepare product.
Aim, policies, standards embedded in food and management system of KFC
The aim of food and beverage industry is clearly defined and is almost same for every
company as it focuses on serving customer satisfaction keeping in mind the physiological needs
of food items, affordable prices, consumer friendly goods and services and enhancement of self
esteem. In addition, the main aim of KFC is to supply the food and beverages according to the
need and types of buyers (Alexande, Yach and Mensah, 2011).
The production, distribution, processing, labelling and packaging of food items in KFC
is regulated by various legislation's guidance and code of practices. These policies and practices
assist the food chain in maintaining the code of standards in order to satisfy consumers needs and
wants. The regulation by UK government are meant to maintain the healthy and safety
environment of country as it makes sure that the items are safe to eat and are prepared under
hygienic environment. The food and beverage legislation are enacted by Food standard agency
in order to provide guidance to the companies. There are various laws which assist the
management of KFC in maintaining the standards of edibles,
Food Regulation 1995: This ensures that the firm is following specific purity criteria of
production and ingredients (Akpoyomareand et.al., 2012). Moreover, the company is allowed to
innovate food products but with clear indication of food additives in the item and the use of
ingredient in preparation of food and beverage should have some set criteria of adding
ingredients. Beside, the act was amended several time according to requirement in which board
comprises various policies like, the companies will have to amend the tittles of food item which
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are for dietary and vitamin purpose, energy reduced foods, non cariogenic foods, items without
sugar and many more.
Standards
 This ensures that the consumer is getting adequate and appropriate information regarding
food and beverages.
 Establishes control for people over salt, sugar, and fatty products (Koplan and Brownell,
2010).
 Production under hygienic conditions in order to maintaining safety of food items.
New Product Development Plan
The product development plan of KFC is focused on healthy eating habits therefore the
company is launching, Vegan Burger. The firm is innovating this product specially for its health
conscious buyers. The vegan food range is the healthiest among all ranges across the Globe. It
allows the company to prepare food with various new innovations according to the demand of
consumers.
Aims: The ultimate aim of KFC with its Vegan burger is to make innovation in its burger
services and serve satisfaction to its health conscious buyer and to maximize its sales.
Competition: The motive of launching this new vegan food is to attain competitive
advantage over its biggest rivalries like Mc Donald's (Food Standards Agency 2002).
Product Concept: Under this, management will plan the innovative concept for launching
product in which it focuses on analysing and implementing changes according to taste and
preferences of consumer. Further, in this step, the company will focus on maintaining the code of
standards in order to stabilise market for new product. On the other hand the product concept of
KFC will be innovative according to analysed consumers taste and preferences.
Development: In this the business will focus on analysing the need of innovation like if
the company will have to make innovation in its existing burgers or will have to launch
completely new product.
Marketing: The new product development plan of KFC will also focus on various
marketing strategies which helps the firm in determining the requirements of buyers. Further, the
marketing team of company will make use of marketing strategy to monitor the functions of
rivalries and to determine the loopholes in new product development plan.
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Consumer needs: The most important part of KFC new product development plan is
evaluation of needs and wants of customers. According to the organisation, consumers plays a
vital role in innovating new products.
Food Production: The product will be prepared in a systematic manner keeping in mind
all the necessities which are quires for preparing Vegan food range. In this range of food KFC
will focus on preparing and boiling all the ingredients early and will process the complete burger
in front of consumers in its transparent kitchen management system. Further, the primary
production of Vegan Burger will be maintained to attain at least 50 percent reduction in
unhygienic and contamination practices in the organisation in order to promote and develop the
sense of eating healthy food among buyers.
Food service and packaging: In services and packaging, the food chain will focus on
making attractive presentation of its new Vegan Burger. In addition, if the product will be for
parcel and delivery, the management will focus on making use of environmental friendly
packaging resources like, paper bags and paper wrapping material. Apart from this the Vegan
food range is very transparent if prepared in front of consumers therefore the ultimate focus of
KFC will be to prepare food in front of consumers and will ensure timely food services.
Pattern for serving Vegan Burger: KFC do not serve its food services online but with this
new product development it will offer its services on both distribution channels that is Online
and Offline. On the other hand, the management will focus providing schemes and discount for
Vegan Burger in order to spread awareness among consumers about its new product.
Type of food services: It lies under Health concerns food services because in this the
management will focus on additive which comprise appropriate nutrients, calories and salads.
The Vegan food Range is chosen by KFC because it offers the company chance to innovate
healthy food products for its health conscious buyers.
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Pricing of Ingredients
Ingredients Price (Pound)
Chickpeas 2.15 £
Sweetcorn 1.13 £
Fresh Coriander 0.50 £
Paprika 5 £
Lemon 2 £
Plain Flour 4.12 £
Lettuce 1.15 £
Tomatoes 1 £
Tomato Ketchup 1.5 £
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Illustration 1: New Product Development: Vegan
Burger
Source: (Marangon, Tempesta, and Vecchiato, 2016)

Price plan for 3 persons
Each Portion Product Price
1 1 Vegan Burger with beverage £2.40
2 1 Vegan Burger with beverage £2.40
3 1 Vegan Burger with beverage £2.40
Combine for 3 persons 3 Vegan Burger with 3
beverages and 1 desert
(Brownie)
£ 7. 00
Hence, the new product development plan of KFC is clearly defined in order to
understand the market requirements and to attain competitive advantage. The appropriate plan
for food processing and distribution of services establishes the probability of identifying new
measures to monitor and control over business performance in order to accomplish determined
targeted and goals.
Design of food beverage management system of KFC
In Designing the new food product, the management will focus on ensuring basic
responsibilities which are as follows:
 Accomplishment of determined profit marketing and revenue generation (Moodie and
et.al.,2013).
 Keeping a check over advance in technology and taste and preferences of consumers.
 Using quality material for production of food items.
 Appropriate training and development of staff members under expertise (Koplan and
Brownell, 2010).
 Organising regular meeting and section head to understand the loopholes of management
system.
 Use of appropriate marketing and sale promotion strategy to create awareness about food
and beverages.
PRIMARY FOOD PRODUCTION PATTERN OF KFC
The foremost step of company when launching new product is Compliance with
standards enacted by Food stand agency to maintain safety and hygiene of edibles. The company
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will make use of centralized production method which segregates production and service
components in order to make systematic distribution activities. The management will make use
of this procedure because it assists in reducing the chance of cross contamination and
complexities of production process. It will help the company in synchronising flow of
information and material (Moodie and et.al.,2013). It will assist the food chain in scheduling
production and centralised the work order to avoid threats and interruption because of changes.
VEGAN BURGER METHOD
First the management will focus on listing and gathering all the raw material that
ingredients required to prepare Vegan burger which are, chickpea's, sweet corn, fresh coriander,
paprika, lemon, plain flour, lettuce, tomatoes and tomato ketchup.
 In raw processing the kitchen team will process raw material in to half baked as it takes
time to completely prepare the time at time of consumers orders.
 The process will be recorded finishing and will be assembled in order to make clear
record of raw baked and raw ingredients of Vegan Burger.
 After the consumer order all the ingredients will be assembled into one product and will
be serve to customers.
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Illustration 2: Centralised Production Control
Source: (Centralized production control, 2017).

FOOD PROCESSING, SERVICES AND DISTRIBUTION
 This will ensure that the management is maintaining appropriate relation with partners
which assist the company in implementing safety management principles and plans.
 The food processing and distribution specially focuses on controlling risk in order to
promote safe production in the department (Enzing, C., and et.al., 2011).
TODAY'S CONSUMER
 In this KFC will focus on creating awareness about its Vegan Food Burgers in market
and specially to its potential consumers which are health conscious.
TOMORROW CONSUMER
 The company focuses on promoting food health and hygiene for buyers in order to serve
the idea of eating healthy food.
PRICING TECHNIQUES
In new product development, The KFC will focus on implementing the use of effective
pricing strategies which are as follows:
Market Penetration: This is the strategy in which the food chain will charge low prices
for its Vegan Burger and will further increase its price according to the demand (Steenkamp
2017).
Competitive pricing: In this, KFC will offer customers chance to earn loyalty points in
which it will set low prices according to its competitors like, Mc Donald's and Subway, which
will help the organisation in attaining competitive advantage over new Burger (Sharma, Teret
and Brownell, 2010).
Psychological pricing: This is the trick in which management will offer Vegan burger at
slightly low prices according to buyers requirement.
SALES PROMOTION
 In this the company will offer its new product at discounts or with some scheme to attract
the attention buyers in order to determine buying habits of customers.
 The technique will focus on encouraging customers to buy Vegan Burger, for which the
organisation will make use of promotional strategy like, attractive packaging, designing,
short term innovation etc.
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Importance of marketing, sales and promotion for KFC
Marketing Sales Promotion
In food and beverage industry
marketing plays an important
role in understanding the taste
and presences of consumers
In food and beverage
organisation, sales is
beneficial in establishing
effective control over
distribution services
(Alexande, Yach and Mensah,
2011).
In food and beverage company,
promotion assist the firm in
creating awareness about
products and services.
Marketing strategies and
research will assist KFC in
determining financial success
and performance due to its
new product development
strategy.
Encourages consumers to
prefer healthy food innovated
by food Chain.
Promotion will assist the
organisation in attaining
competitive advantage with its
new product development plan.
It will help in deriving
sufficient demand for Vegan
Burger.
In this KFC will aim at
promoting awareness about
healthy eating habits with its
new Vegan range.
For promotion the KFC will
adopt various techniques like,
attractive packaging and
advertisements (Sharma, Teret
and Brownell, 2010).
It provides the strategy of
monitoring the consumers and
competitors.
KFC will aim at selling its
Vegan Burger according to
segregated market and
customers.
The strategy will assist food
chain in creating awareness
about healthy food items and
reduces diet related diseases.
CONCLUSION
The report has summarized that the food and beverages industry in UK, is facing big time
competition and success. It stated the regulation and legislation which will be followed by KFC,
one of the leading food chain in UK for its new product development plan Further, it analysed
the product development plan of company for its New Vegan Burger which comprised,
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ingredients, pricing strategy for each person and for portion meals. The plan outlined that plan of
enterprise comprises basic factors of success like, aims, competitor market, product concept,
marketing strategies, consumer trends and labelling and branding of food items. Beside, the
report outline the new design of food management system which will be followed by
organisation to implement effective practices in its New product Development plan.
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REFERENCES
Books and Journals
Enzing, C., Pascucci, S., Janszen, F. and Omta, O., 2011. Role of open innovation in the short-
and long-term market success of new products: evidence from the Dutch food and
beverages industry. Journal on Chain and Network Science. 11(3). pp.235-250.
Akpoyomare, O.B., Adeosun, L.P.K. and Ganiyu, R.A., 2012. The influence of product attributes
on consumer purchase decision in the Nigerian food and beverages industry: A study of
Lagos Metropolis. American Journal of Business and Management. 1(4). pp.196-201.
Sharma, L.L., Teret, S.P. and Brownell, K.D., 2010. The food industry and self-regulation:
standards to promote success and to avoid public health failures. American Journal of
Public Health. 100(2). pp.240-246.
Moodie, R., Stuckler, D., Monteiro, C., Sheron, N., Neal, B., Thamarangsi, T., Lincoln, P.,
Casswell, S. and Lancet NCD Action Group, 2013. Profits and pandemics: prevention
of harmful effects of tobacco, alcohol, and ultra-processed food and drink industries.
The Lancet. 381(9867). pp.670-679.
Koplan, J.P. and Brownell, K.D., 2010. Response of the food and beverage industry to the
obesity threat. Jama. 304(13). pp.1487-1488.
Belz, F.M. and Schmidt‐Riediger, B., 2010. Marketing strategies in the age of sustainable
development: evidence from the food industry. Business Strategy and the Environment.
19(7). pp.401-416.
Yach, D., Feldman, Z.A., Bradley, D.G. and Khan, M., 2010. Can the food industry help tackle
the growing global burden of undernutrition?. American journal of public health.
100(6). pp.974-980.
Alexander, E., Yach, D. and Mensah, G.A., 2011. Major multinational food and beverage
companies and informal sector contributions to global food consumption: implications
for nutrition policy. Globalization and health. 7(1). p.26.
Marangon, F., Tempesta, T., and Vecchiato, D., 2016. Toward a better understanding of market
potentials for vegan food. A choice experiment for the analysis of breadsticks
preferences. Agriculture and Agricultural Science Procedia. 8. pp.158-166.
Online
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Food Standards Agency 2002. Food Additives Legislation. [Online]. Available through:
<http://webarchive.nationalarchives.gov.uk/20130802154246/http://food.gov.uk/
multimedia/pdfs/guidance.pdf>. [Accessed on 17th October 2017].
Centralized production control 2017. [Online]. Available through:
<http://www.manufactus.com/kanban?lang=en>. [Accessed on 17th October 2017].
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