Product development with greater success

Declan McFadden,President SYMRISE Asia Pacific

How to Manage NewProduct Developmentwith Greater Success?

A Flavor House PerspectiveSingapore FHA 2012

What is the cost of a flavor in a newproduct development?What is the cost of a product’s flop?

FLAVOR & NUTRITIONOUR STRATEGY

AGENDA: HOW WE CREATEMARKET LEADERS

2. Consumer Insight

1. Lifestyle

3. Sensory science

6. Flavor & Conceptcreation

7. Concept testing

8. Brand specificcustomisation

9. Consumervalidation

Understand Develop Launch

4. Brand analysis

5. Flavor trends

TechnicalRestrictions

BrandStrategic Vision

Speed to market

PAGE 5

WHAT DOESTHE CONSUMER WANT?

PleasureHealth

LONGING FOR BALANCE: HEALTH & INDULGENCE

1. SYMRISELIFESTYLE RESEARCH

FAST…AND SLOW INTENSITIES IN ASIA

2. CONSUMERSKNOWING WHAT THEY WANT

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…through their dayconsumers search out

moments of holistichealth,

pure pleasure or a bitof both…

HOLISTIC

HEALTH

PURE

PLEASURE

… but the one thingthey will

never compromiseon is

great taste.

FUNCTIONALVALUE

NUTRITIONALBALANCE

NATURALQUALITY

AUTHENTICEXPERIENCE

EXCITINGSENSATIONS

HOLISTIC

HEALTHPURE

PLEASURE

MEAT VEGETABLE VANILLAsimply vanilla®

MINTthink mint®

CITRUSNaturally Citrus!® RED FRUITS TASTE

MODULATION

2. CONSUMERSKNOWING WHAT THEY WANT

Symrise interpretation

CONSUMER RESEARCHPARTNERSHIP WITH OUR CUSTOMERS

I consume instantnoodles by itself,

consuming nothingbefore or after meal,and with plain water

I consumeinstant noodlesalone and at

homeI consume instant noodlesbecause it is quick andconvenient to prepare

I consume the soupversion the most

2. CONSUMER INSIGHTSWHAT DO CONSUMERS SAY? (noodles in Asia)

3. UNDERSTANDING TASTESENSORY SCIENCE (Coffee example)

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BRAND 1 Sensory Spider Plot

0.0

2.0

4.0

6.0Instant Coffee

Ground Coffee

Roasted

Buttery

Cooked Sugar

Malty

Phenolic

Herbal

Cocoa

Condensed Milk

Milky

Creamy Mouthfeel

Thick Mouthfeel

Sweetness

Saltiness

Sour

Bitter

Astringent

CHINA

JAPAN

TAIWAN

KOREA

AUSTRALIAINDONESIA

THAILAND

MALAYSIA

PHILIPPINES

SINGAPORE

3. UNDERSTANDING TASTEINSIGHT TASTE PROFILING BY COUNTRY

Japan

Korea

ChinaTaiwan

AustraliaChina

Taiwan

RoastedGround Coffee

Burnt

NuttyCocoa

MilkyCreamy

Thick Mouthfeel

Cereal MaltInstant Coffee

Condensed Milk

Vanillin

Bitter

Caramelic

Buttery

PAGE 14

4. UNDERSTANDING THE BRANDStarbucks (Japan example)

rich

happy

trendy

espresso

Premium price

special treat

satisfaction

adultsindulgent

flavourful

4. UNDERSTANDING THE BRANDASSESSING FLAVOR GAPS & OPPORTUNITIES

Ginger

Coffee

Banana

Vegetables

Super Fruits

Blueberry

Citrus

Mint

PAGE 16

5. FLAVORS KNOWLEDGELINKING MARKET KNOWLEDGE TO TASTEEXPERTISE

Chocolate

Strawberry

Cheese

Nuts

Caramel

Char-grill

Cream

Rum

Mango

Honey

Maple

Brown Sugar

Acerola

Citrus

Tea

Yuzu

Herb

Soy/soymilk

Tea

Citrus

Yogurt

Spice

Chili

Wasabi

Sour fruits

Exotic flavors

WE CREATE MARKET LEADERS

2. Consumer Voices

1. Lifestyle

3. Sensory science

6. Flavor & Conceptcreation

7. Concept testing

8. Brand specificcustomisation

9. Consumervalidation

Understand Develop Launch

4. Brand analysis

5. Flavor trends

TechnicalRestrictions

BrandStrategic Vision

Speed to market

Coffee

Flavors

SYMRISESPECIALTIES

SYMRISENatural Aroma

Chemicals

SYMTRAPCoffee

Nature identical

Nature IdenticalNatural

Natural

Key Coffee Raw Material Palette

SYMTRAP COFFEE SPECIALITIES

6. FLAVOR & CONCEPT CREATIONWITH SYMRISE TECHNOLOGIES

HOLISTIC

HEALTH

PAGE 19

PURE

PLEASURE

Concept Creation

6. FLAVOR & CONCEPT CREATIONGETTING ALL EXPERTISE TOGETHER TOCREATE WINNING TASTE (examples)

COLAREGULAR

COLACHERRY

COLALIGHT

COLAZERO

COLA PLUSVITAMINS

7. CONCEPT TESTINGSCREENING WINNING CONCEPTS(Kids study examples)

8. CONCEPT VALIDATIONTHROUGH TASTING WITH CONSUMERS

PAGE 22

9. OUR PROMISETO OUR CUSTOMERS

We create taste consumers love…

ROLE OF SCSIN SYMRISE

COMMONLANGUAGE

Technical Language Marketing Language

Consumer LanguageBusiness Language

Are the products different?30 internal people, no training

A FEW HOURS

How do products differ?8-12 external panelists

Intensive training3 WEEKS

How much are the productsliked?

120 consumers, no trainingA FEW WEEKS

3 SIDES OFSensory & Consumer

Science

DISCRIMINATIVE TESTS DESCRIPTIVE TESTS CONSUMER TESTS

Triangle TestDuo Trio Test

Quantitative DescriptiveAnalysis (QDA)

EthnographyOnline surveysFocus Groups

Central Location Test (CLT)

QUANTITATIVE DESCRIPTIVE STUDYPRINCIPLE

DESCRIPTION OF ALLFOODS & BEVERAGES

MarketFlavordirections

Flavordirectionsofprototypes

Sensoryfingerprintsof foods/beverages

TRAINED PANELISTS(in Symrise: n=35)

CONSUMER STUDIESDIFFERENT TYPES

MEETING WITHCUSTOMER

IN HOUSEPROCEDURE

DEVELOPMENT

MARKET RESEARCHAGENCY SELECTIONCONSUMER FIELD WORK

IN HOUSEDATA

ANALYSIS

CREATE CONSUMERRELEVANT FLAVORS

DESCRIPTIVE STUDIESQuantitative Descriptive AnalysisTM

TRAINING MEASUREMENT

DESCRIPTORSDEVELOPMENT

DEFINITIONS&

REFERENCES

INTENSITY TRAINING

FINALMEASUREMENTS

QDATM

PANELPERFORMANCES

BOILED CHICKENWHITE MEATRAW GARLICPEPPER

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