7 Tips on Launching Your New Food Product
The food product industry is highly competitive, but trends are always changing with consumer eating habits so there is always room for a newer, tastier and less expensive food products. Many food entrepreneurs create a product and market it, only to find that they should have taken their time to follow a step-by-step planning approach to make sure that their costs are not too high or that the local health or zoning department doesn't shut them down.
Instructions
- Research your local and state food production and distribution laws, including the zoning laws for your intended manufacturing facility.
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List all your ingredients and the steps involved in preparing your new food product. Include the tools you need and the services you will employ to prepare and distribute your product.
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Write a production plan. This should include your ingredient sources and costs, volume break points, manufacturing steps and how they will be accomplished and facilities and storage needs with timeframes relating to product delivery. Also include your use of tools and equipment, and make notes for future needs.
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Write a marketing and distribution plan that includes packaging, which is how you create an image for your product. Consider distribution factors for your food product, which should be targeted toward your specific consumer base and where they shop.
- Create financial projections. Include the cost of production per unit of product, product wholesale and suggested retail price per unit, marketing costs, administrative costs, facilities costs and insurance costs.
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Design marketing materials for your wholesale distributors and for your target consumers. A marketing package contains production, price and dietary information; consumer brochures and samples. Your distribution team should give these packages to end-retailers such as store managers and food supply companies.
- Perform test production runs and taste testing in local stores and at events before you announce your launch with marketing materials. Have your tasters fill out recommendation forms so you can prove to store owners that your product will sell in their stores. Taste tests are great ways to market your product.
