6 Food product development can be used: firstly companies are grouped according to location, size and type of processing, and secondly by company factors such as technical expertise, product needs and service needs. It is important that both the product and service needs are recognised in segmentation for industrial product development. Food service is divided into two broad groups- commercial and institutional; but of course there are important internal segments in these such as large chain fast food companies, fine food restaurants, family restaurants(Schaffner et al 998). The segmentation strategy depends on the company's overall business and marketing strategies. But it is important that the market segments are clearly recognised in developing gro products for product strategy 1.1.3 Food products and processing technology Food products in the past have often been grouped according to their preservation technology frozen foods, canned foods, chilled foods, dried foods, ambient foods. For example milk products are grouped asfresh, UHT (ultra-heat treated), canned, dried; fruits as'fresh, canned, dried, frozen. The main reason for this grouping was that the preservation method was dominant in processing, distribution and retailing, and therefore to change the preservation method was a major undertaking in resources. The first three, freezing and chilling, are thermal processes controlling food quality by temperature and time. Non-thermal processes, controlling water activity, atmospheric gases and packaging, preserve dried and ambient foods. In recent years, there has been increased interest in non-thermal preservation of food for example by irradiation and by high pressures(Knorr, 1999). Both processes have arisen in an effort to avoid damage to food quality in processing, but both have their own difficulties Products are also grouped according to processing technologies such as baking, extruding and fermentation, and according to the form of the food such as liquids, emulsions and powders. This is useful because it recognises the basic technologies and the knowledge of them in the company. If the greatest knowledge in the company is in emulsions, then the product groups include cooking oils, salad dressings, margarines, ice creams, sauces, and new products can be developed from basic emulsion knowledge. Other typical groupings are bread, rolls and cakes, biscuits and crackers; confectionery; sauces and pickles A new process technology can start a family of products and indeed several families of products. For example, extrusion technology was the basis for many new snack products from flavoured, puffed snacks to muesli bars. Knowledge of products and processing is important in product development because it can lead to major innovations- the 'new-to-the-world products 1. 1. 4 Nutrition and health An important grouping is related to the function of the products in nutritio health. Provision of calories has dominated the food industry for many firstly the basic need was to provide calories and then in recent years, the push tocan be used: firstly companies are grouped according to location, size and type of processing, and secondly by company factors such as technical expertise, product needs and service needs. It is important that both the product and service needs are recognised in segmentation for industrial product development. Food service is divided into two broad groups – commercial and institutional; but of course there are important internal segments in these such as large chain fast￾food companies, fine food restaurants, family restaurants (Schaffner et al., 1998). The segmentation strategy depends on the company’s overall business and marketing strategies. But it is important that the market segments are clearly recognised in developing groups of products for product strategy. 1.1.3 Food products and processing technology Food products in the past have often been grouped according to their preservation technology – frozen foods, canned foods, chilled foods, dried foods, ambient foods. For example milk products are grouped as ‘fresh’, UHT (ultra-heat treated), canned, dried; fruits as ‘fresh’, canned, dried, frozen. The main reason for this grouping was that the preservation method was dominant in processing, distribution and retailing; and therefore to change the preservation method was a major undertaking in resources. The first three, freezing, canning and chilling, are thermal processes controlling food quality by temperature and time. Non-thermal processes, controlling water activity, atmospheric gases and packaging, preserve dried and ambient foods. In recent years, there has been increased interest in non-thermal preservation of food for example by irradiation and by high pressures (Knorr, 1999). Both processes have arisen in an effort to avoid damage to food quality in processing, but both have their own difficulties. Products are also grouped according to processing technologies such as baking, extruding and fermentation, and according to the form of the food such as liquids, emulsions and powders. This is useful because it recognises the basic technologies and the knowledge of them in the company. If the greatest knowledge in the company is in emulsions, then the product groups include, cooking oils, salad dressings, margarines, ice creams, sauces, and new products can be developed from basic emulsion knowledge. Other typical groupings are bread, rolls and cakes; biscuits and crackers; confectionery; sauces and pickles. A new process technology can start a family of products and indeed several families of products. For example, extrusion technology was the basis for many new snack products from flavoured, puffed snacks to muesli bars. Knowledge of products and processing is important in product development because it can lead to major innovations – the ‘new-to-the-world’ products. 1.1.4 Nutrition and health An important grouping is related to the function of the products in nutrition and health. Provision of calories has dominated the food industry for many years: firstly the basic need was to provide calories and then in recent years, the push to 6 Food product development