NEW PRODUCT DEVELOPMENT AT SCHWAN 1.

What are the factors that made Schwan focus extensively on innovative product development initiatives? Answer with reference to the companys expertise in the frozen pizza business and the changes taking place in the industry. The factors responsible for Schwan to focus extensively on innovative product development are as follows: Heavy competition was a major factor which led Schwan to provide a differentiation. The business potential for frozen food was huge, almost one third of the total food service. Cutting down on cost was a major factor to survive in the market , hence Schwan was forced to innovate on methods and products which could provide more value for money. The change in the lifestyle pattern of the consumers who preferred more of convenience and time saving also was another factor . Readiness of the market to accept the product. There was also a change in the consumption pattern of the consumers. The continuous innovation and research yielded the company with better technology like the rising crust which further was researched on to cash on more opportunities, and hence providing value addition to the consumer. The single serve segment lacked good quality this was an opportunity as Schwan was keen on providing good quality. 2. Explain how Schwan organised the new product development exercise for Red Baron Stuffed Pizza Slices. What hurdles were encountered while moving from the idea development stage to the concept-strategy formation stage? How were these challenge overcome? Schwan innovatively formed a team of internal experts and began the product development exercise through brainstorming sessions the team was also supported by cross-functional team members. The mixture team members from different disciplines brought in in knowledge with cooperation and coordination resulting in structured

ideas. The members were from different disciplines were kept well informed about the proceedings and were clearly informed of the design criteria. Smooth communication internally and externally was ensured. The teams discussions and ideas took shape into stuffed pizza slices. Some of the hurdles faced was: During the concept testing stage the model had to be reworked upon and modified frequently to accommodate necessary requirements. The dough for the pizza slices, the process flows involved, and the toppings Construction of a totally new product line based on the requirements.

The challenges or hurdles were overcome by the following ways: To add toppings the company used FOOD STARCH to help toppings stay for long. The slices were given a vented, triangular sleeve that made it possible for the crust to become crisp after being put in the microwave. And providing consumers with a choice of range of fillings. A new production line was set up. The coordination and cooperation of all departments coming together was a major strength which the company enjoyed. 3. Critically analyse the role played by Schwans cross-functional teams in developing Red Baron Stuffed Pizza Slices. In what way did the various teams contribute in the project? The cross-functional team included personnel from the following departments: Process Engineering (PE) Product Development (PD) Research and development (R&D) Regulatory affairs, sensory, applied research and culinary Manufacturing, sales and marketing, packaging services and corporate engineering department.

The combination of the cross functional team brought in more knowledge and ideas to the table; this helped in innovating the product to concentrate on and solve the problem faced then. The culinary team took absolute care regarding the taste and predetermined acceptable standards and other attributes, The regulatory team checked whether the regulatory standards are being met, market research team provided Schwan with insights, The cross-functional team together discussed the product being developed. The teams discussion and ideas took concrete shape in the form of triangular stuffed pizza slices. Thereafter the protocepts were developed. The protocepts were then made into prototypes with the help of the product development and product engineering department. 4. In the light of the fact that a majority of the new products fail in the market, how do you think Schwans efforts would fare? What issues do companies need to keep in mind while developing new products in order to minimize the risk of failure? Since Schwan understood the prevailing problem in the industry and has found innovative solutions and breakthrough technologies to cater these need it would surely be successful. The approach was research based . Schwan was able to create more value proposition and better quality, this was the concern then and hence it would fare well. Some issues that Schwan need to keep in mind is: The need for the product The consumer preferences and tastes The changing lifestyle Direct and indirect competitors Technological obsolescence and innovation Reducing costs Approximate estimation of demand. Educate consumers about the use of the prdoduct.