An exploratory study of the new product development process utilized by selected consumer companies in the canned goods food industry

New product development involves high risk, significant investment of time and money, complexity, and a high failure rate. Yet, most businesses find that new products are necessary for the firm's survival, and that their development forms an important part of company strategy.; This study was an exploratory investigation of the new product development process used by consumer companies in the canned goods food industry. It had two objectives: (1) to determine what factors best distinguish between successful and unsuccessful product development, and (2) to evaluate the effectiveness of new product development in the canned goods food industry.; Questionnaires were sent to the individual responsible for the new product development program in one hundred selected companies. The response rate of 35.4 percent was tested for nonresponse bias.; Nonparametric statistical analyses (the Wilcoxon Matched Pairs Test) were used to determine if differences existed between successful and unsuccessful product development processes. Discriminant analyses were employed to select those factors (variables) that were the best predictors of successful product development, and to study the differences between the two groups--successful and unsuccessful product development. A summary of the results follows: (1) The surveyed companies generally accepted some type of formal product development process, although there were deficiencies in the execution of the process in a number of firms. (2) Successful product development depended on quality execution of all steps in the product development process, with special emphasis given those factors that were found to be crucial to successful product development. (3) While variations in the new product development process were apparent, significant similarities in the approaches to new product development were also evident. Different companies emphasized different approaches to the process, but there were common steps that all companies applied systematically. (4) Product success depended more on quality execution of the steps involved in the company's unique approach to the development process than it did on any particular approach undertaken.