dolution

Developing New Products and Services. Concept Test of a New Product

The responsibility of developing new products at Famoso Inc. lies at the corporate level. However, since Famoso Inc. philosophy is to integrate franchisees and make them feel as partners, the company motivates stores to bring new ideas to Famoso Inc.

In terms of product development, they have hired a new chef who is experimenting flavours and dishes. Two new menus are launched in a given year. One is launched in April/May and focuses on spring/summer flavours, placing special attention on the freshness of the dish. The second menu is launched in September/October, emphasizing fall/winter flavours, richer items, and soups. A key aspect of developing a new product is the accessibility, and the use of great ingredients.

As part of the innovation strategy, every restaurant partner goes to Naples for a 10-day trip (to visit winery, taste Italian mozzarella, experience Italian culture). Partners learn to be passionate about food, a very critical recipe for the success of Famoso Inc.

In order to engage consumers in the innovation process and co-create new products, Famoso Inc. launched the ‘Famoso Next top Chef’. Instead of Famoso deciding what customers want, they ask that customers submit recipes they would like to see on Famoso’s menu. Every month Famoso looks through the recipes and see trends and creations that inspire the company to expand the menu. The corporate chef Don Letendre tests selected recipes countless different ways until inspiration and culinary methods create a final product that is featured on seasonal spring/summer and fall/winter menus.

Questions

1. How could you classify Famoso Inc. innovations: as continuous or discontinuous?

2. Generate 3 ideas of a new Pizza for Famoso.

3. Assuming your idea has a business fit and that Famoso Inc. decided to develop it, how would you go about market testing using standard test markets?