A Scientific Step by Step Exercise for Food Ingredients and Customer Segments

Food businesses are full of attractive ideas.

Someone may suggest a new gravy, masala, seasoning, cooking base, filling system or ready-to-use ingredient. 

A customer may praise the idea. A distributor may say that the market is enormous.

A team member may point to a similar product selling somewhere else. 

An exhibition may create the impression that a new category is growing rapidly.

All this can be useful.

But none of it is sufficient for launching a product. Many food products fail not because they taste bad, but because one or more basic questions were never answered properly:

• Who will buy the product?
• How frequently will they buy it?
• What existing problem does it solve?
• Where will they buy it?
• How much will they pay?
• Can they understand how to use it?
• Will they buy it again?
• Can it be manufactured consistently?
• Can it reach the consumer profitably?
• Can the company communicate its value clearly?
• Can the business scale after the initial enthusiasm is over?

A strong product idea is therefore only the beginning.

Before launching any new food ingredient or entering a new customer segment, the company needs a disciplined evaluation process. This chapter provides such a process. It can be applied to:

• Primary spices
• Blended masalas
• Cooking gravies
• Tadka bases
• Curry bases
• Seasoning systems
• Fillings
• Chutney bases
• Marinades
• Bakery ingredients
• Beverage ingredients
• Institutional food ingredients
• Custom formulations
• Business-specific food production systems

Throughout this chapter, we will use a Cooking Gravy as the running example. The same questions, however, can be applied to almost any food-ingredient opportunity.

 ________________________________________

1. Begin with a Clear Opportunity Statement

Before conducting research, the team must describe the opportunity clearly.

A vague statement such as:

“Ready gravies have a good future.”

is not enough.

A useful opportunity statement should explain:

• The proposed product
• The intended customer
• The problem being solved
• The expected benefit
• The proposed usage situation

For example: 

“We want to evaluate a shelf-stable Dal Tadka Cooking Base for value-conscious working households that cook dal regularly but want better taste with less chopping, frying and preparation time.”

This statement immediately provides direction.

It tells the team:

• The product is a Dal Tadka Base.
• The customer is a working household.
• The cooking occasion is regular dal preparation.
• The problem is time, effort and taste consistency.
• The proposed format is shelf-stable.

Without such clarity, research becomes scattered.

The team may start talking to the wrong consumers, studying the wrong competitors and testing the wrong pack sizes.

The first discipline

Every idea should be written as a testable hypothesis.

The purpose of the exercise is not to prove that the idea is good.

The purpose is to discover whether the idea deserves further investment.

 ________________________________________

2. Define the Customer Precisely

The term “consumer” is often used too casually.

Two people may both buy food ingredients but have completely different needs.

A household buying a gravy base once a month is different from a restaurant using it every day.

A samosa maker is different from a hotel chef.

A factory worker cooking for four family members is different from a bachelor cooking alone.

The team should therefore define the customer using actual behaviour.

Useful questions include:

• • Does the customer cook at home or commercially?
• • How many meals are prepared each week?
• • How many people are served?
• • Who buys the ingredients?
• • Who cooks the food?
• • Who decides whether the taste is acceptable?
• • Is the customer price-conscious or convenience-conscious?
• • Is the purchase made daily, weekly or monthly?
• • Is the customer comfortable trying new packaged foods?
• • Does the customer have refrigeration?
• • Does the customer have access to modern retail or only local shops?

Cooking Gravy Example

Suppose the proposed product is a Fish Curry Base.

The potential customer could be:

• A migrant family cooking fish once a week
• A bachelor group cooking together
• A neighbourhood tiffin centre
• A small Bengali restaurant
• A factory canteen
• A fish retailer wishing to offer a cooking solution

These are not one market.

Each will require a different:

• Formulation
• Pack size
• price
• communication
• distribution route
• cooking instruction
• service model

The evaluation must therefore begin by selecting one priority customer, not by treating everyone as a possible buyer.

________________________________________ 

3. Estimate the Accessible Customer Base

Businesses often become excited by very large market numbers.

For example:

“There are millions of working households in India.”

That may be true, but it does not tell us how many customers the company can actually reach.

The more useful question is:

“How many suitable customers can we practically access during the first one, two and three years?”

The assessment should include:

• Total number of target customers in the chosen geography
• Number located in accessible clusters
• Number served by available retailers
• Number reachable through factories, institutions or communities
• Number likely to try the product
• Number likely to repurchase
• Number required for commercial viability

Market Size Should Be Calculated in Layers

Total Potential Market

Everyone who could theoretically use the product.

Relevant Market

Customers whose cooking behaviour matches the product.

Accessible Market

Customers who can be reached through available channels.

Obtainable Market

Customers the company may realistically acquire within a defined period.

This prevents the team from confusing a large theoretical market with a realistic business opportunity.

Cooking Gravy Example

A city may have 500,000 households.

But perhaps only:

• 150,000 cook dal frequently.
• 60,000 belong to the intended value-conscious segment.
• 20,000 live near accessible industrial or residential clusters.
• 5,000 may be reached during the pilot year.
• 1,000 may become regular buyers.

The business plan should be built around the 1,000 realistic repeat customers, not the 500,000 theoretical households.

 ________________________________________

4. Study the Existing Cooking or Production Process

A food ingredient creates value only when it improves an existing process.

Therefore, the team must first understand how the food is currently prepared.

This cannot be done only through questionnaires.

The team should observe customers in actual kitchens.

For a household product, observe:

• Ingredient selection
• Washing
• Peeling
• Chopping
• Grinding
• Frying
• Cooking sequence
• Time taken
• Utensils used
• Wastage
• Cleaning
• Storage of leftovers

For a food business, observe:

• Batch size
• Labour deployment
• Ingredient measurement
• Preparation time
• Production bottlenecks
• Yield
• portioning
• waste
• quality variation
• skill dependence

Cooking Gravy Example

Before designing a Dal Tadka Base, the team should observe how households currently make dal tadka.

The existing process may involve:

1. Cooking dal.

2. Chopping onion.

3. Chopping tomato.

4. Peeling garlic.

5. Preparing ginger.

6. Heating oil.

7. Frying cumin.

8. Browning onion.

9. Cooking ginger and garlic.

10. Adding tomato.

11. Adding turmeric, chilli and coriander.

12. Cooking the masala.

13. Mixing it with dal.

The proposed product may remove eight or nine of these steps.

That is the real source of value.

Without understanding the present process, the company cannot explain what the new product improves. 

________________________________________

5. Measure the Strength of the Problem

Not every inconvenience is a market opportunity.

Consumers may complain about a process but still not be willing to pay for an alternative.

The team must determine whether the problem is:

• Frequent
• Important
• Frustrating
• Expensive
• Time-consuming
• Skill-dependent
• Difficult to avoid

The stronger the problem, the stronger the possibility of adoption.

A Simple Problem Test

Ask five questions:

1. How often does the problem occur?

2. How much time or money does it consume?

3. What happens if the problem is not solved?

4. What is the customer doing today to manage it?

5. Is the customer willing to pay for a better solution?

Cooking Gravy Example

A household may say that making Paneer Gravy is difficult.

But if paneer is cooked only once every two months, the problem may not generate regular sales.

Dal, on the other hand, may be cooked four or five times a week.

Even if the inconvenience is smaller, the high frequency may create a much stronger commercial opportunity.

This leads to an important principle:

A moderate problem occurring frequently may be more valuable than a serious problem occurring occasionally.

________________________________________

6. Understand the Existing Alternatives

The competition is not limited to products that look similar.

For a cooking gravy, competition may include:

• Fresh home cooking
• Dry masala
• Wet masala from a local shop
• Frozen gravy
• Restaurant takeaway
• Ready-to-eat food
• Instant noodles
• A simpler meal
• Help from another family member

For an industrial seasoning, competition may include:

• The customer’s existing recipe
• A local spice grinder
• An experienced cook
• A trader supplying loose ingredients
• A competing premix
• Manual blending inside the factory

The team should therefore ask:

“What will the customer stop doing, buying or using if this product is adopted?”

That is the real alternative being displaced.

Cooking Gravy Example

A Dal Tadka Base may not compete directly with another packaged gravy.

Its main competition may be.

“I already make tadka at home.”

The new product must therefore demonstrate why changing the existing habit is worthwhile.

________________________________________

7. Define the Exact Product Outcome

Customers do not buy ingredient descriptions.

They buy outcomes.

The team must clearly state what one pack produces.

For example:

“One 120-gram pouch makes Dal Tadka for four people.”

or:

“One 400-gram pack makes Fish Curry using 500 grams of fish.”

The outcome should clarify:

• Number of people served
• Quantity of main ingredient required
• Quantity of final food produced
• Additional ingredients needed
• Time required
• Cooking skill required
• Expected taste profile

Avoid Vague Product Claims

Statements such as:

• Rich taste
• Authentic flavour
• Premium ingredients
• Traditional recipe

may support communication, but they do not explain product utility.

A customer needs to know:

• What will this product help me prepare?
• How much will it prepare?
• What else do I need?
• How long will it take?
• What will it cost per meal?

________________________________________

8. Evaluate Usage Frequency

The team should estimate how frequently the product will be used.

Possible usage patterns include:

• Daily
• Several times a week
• Weekly
• Fortnightly
• Monthly
• Festival-based
• Emergency use
• Seasonal use

Usage frequency influences:

• Market potential
• Pack size
• pricing
• distribution
• shelf life
• communication
• repeat-purchase measurement

Cooking Gravy Example

A household may use:

• Dal Tadka Base: two to four times a week
• Egg Curry Base: once a week
• Fish Curry Base: once or twice a month
• Paneer Gravy: once a month
• Festival Korma Base: a few times a year

A lower-frequency product may still be viable, but it will require a larger customer base or higher value per purchase.

________________________________________

9. Determine the Right Degree of Completion

Food ingredients can be offered at different levels of preparation.

For example:

Ingredient Level

Only individual spices.

Blend Level

A dry masala formulation.

Partial Base

Spices plus some processed ingredients.

Complete Cooking Base

Onion, tomato, ginger, garlic, oil and spices.

Ready-to-Cook System

The customer adds only the main ingredient and water.

Ready-to-Eat Product

The final food is already prepared.

The team must determine how much work should remain with the customer.

More Complete Is Not Always Better

A more complete product may:

• Save more time
• Deliver better consistency
• Be easier to use

But it may also:

• Cost more
• Become heavier
• Require more complex processing
• Reduce flexibility
• Create stronger taste disagreement
• Increase packaging and transportation cost

Cooking Gravy Example

A Dal Tadka product could be:

1. Dry tadka masala

2. Spice paste

3. Onion-tomato tadka base

4. Complete cooked tadka with oil and ghee

5. Ready-to-eat dal

Each format serves a different need.

The team should not automatically select the most advanced format.

It should select the format offering the best balance of convenience, affordability and customer control.

________________________________________

10. Evaluate Taste and Cultural Fit

Taste is not universal.

The same product may be considered excellent in one region and unacceptable in another.

The team should assess:

• Chilli intensity
• Salt level
• Oil level
• sweetness
• sourness
• onion and garlic preference
• spice aroma
• gravy thickness
• colour
• texture
• regional authenticity

Cooking Gravy Example

A Fish Curry Base for Bihar may require mustard, garlic and strong chilli.

A Bengali version may require mustard oil and a different spice balance.

A Kerala version may require coconut and curry leaves.

A generic “Indian Fish Curry” may satisfy no one strongly.

The company must decide whether to create:

• A broad national taste
• Regional variants
• A neutral base with optional finishing ingredients
• Customer-specific formulations

Taste testing should therefore be conducted with the intended user, not merely with the company’s internal team.

 ________________________________________

11. Examine Ease of Use

A product may look simple to its developer but remain confusing to the user.

The team should observe whether customers understand:

• How to open the pack
• Whether to heat it first
• When to add water
• How much main ingredient to add
• How long to cook
• Whether salt is already included
• Whether oil is required
• How to store leftovers

The Unassisted Use Test

Give the product to a customer with only the proposed pack instructions.

Do not explain anything personally.

Observe whether the customer can produce the intended outcome.

If the product works only when a sales representative explains it, it is not yet ready for scale.

Cooking Gravy Example

Instructions such as:

“Add contents according to taste and cook appropriately”

are too vague.

A better instruction would be:

“Add the complete pouch to 800 grams of cooked dal. Add 200–300 ml water if required. Boil for three minutes. No additional salt or spices are needed.”

Clarity improves the success rate.

 ________________________________________

12. Select the Right Pack Size

Pack size is not simply a packaging decision.

It affects:

• Affordability
• servings
• purchase frequency
• consumer understanding
• shelf life after opening
• product wastage
• retailer stocking
• transportation
• manufacturing cost

The team should test more than one size.

Questions to Examine

• Is the product intended for one meal or multiple meals?
• How many people are normally served?
• Is refrigeration available after opening?
• Does the customer prefer small cash purchases?
• Does a larger pouch improve value?
• Does a smaller pouch make packaging cost disproportionately high?
• Can leftover product be used safely?

Cooking Gravy Example

A household Dal Tadka Base could be tested in:

• 60 grams for two people
• 100–120 grams for four people
• 200 grams for a larger family
• 400 grams for shared accommodation or small food businesses

The smallest pack may appear affordable but may carry excessive pouch and retort cost.

The largest pack may offer good value but create an unaffordable purchase price.

The best pack size is therefore determined through total economics and usage behaviour.

 ________________________________________

13. Determine the Acceptable Price

Consumers often give unreliable answers when asked:

“How much would you pay?”

Some give a very low figure because they want the product to be cheaper.

Others give an encouraging figure because they want to please the researcher.

Actual purchase behaviour is more reliable.

The team should test several price points in real selling situations.

Price Must Be Evaluated at Four Levels

Pack Price

The immediate amount paid.

Cost Per Serving

Pack price divided by the number of people served.

Cost of the Complete Dish

Product cost plus the main ingredient and other additions.

Cost Compared with the Existing Alternative

Home preparation, restaurant purchase or another ingredient solution.

Cooking Gravy Example

Suppose a 120-gram Dal Tadka Base costs ₹60 and serves four people.

The ingredient cost is:

₹15 per person.

If it replaces onion, tomato, ginger, garlic, oil, spices and part of the cooking effort, the comparison should not be made only against a ₹10 masala sachet.

The correct comparison is with the full cost and effort of preparing the tadka.

________________________________________

14. Calculate Complete Consumer Value

A product does not have to be the cheapest option.

But it must offer enough value.

Value can include:

• Better taste
• Less preparation time
• Lower wastage
• Reduced fuel use
• Fewer ingredients to buy
• Easier cooking
• Lower skill requirement
• Consistent results
• Ability to prepare a dish not otherwise possible
• Avoidance of restaurant expenditure

The team should identify which two or three benefits are most important.

Trying to communicate ten benefits usually weakens the message.

Cooking Gravy Example

The primary value proposition for a Dal Tadka Base may be:

“Better Dal Tadka in five minutes, without chopping onion, tomato, ginger or garlic.”

The farmer story, premium spices and preservative-free processing may strengthen trust, but they should not hide the main benefit.

________________________________________

15. Identify the Buying Place and Buying Moment

A good product can fail if it is not available where and when the customer needs it.

The team should determine where ingredients are normally purchased:

• Kirana shop
• Supermarket
• Wholesale market
• Factory canteen
• Workplace counter
• Labour colony retailer
• Weekly market
• Online platform
• Distributor
• Food-service supplier
• Direct company sales

The buying moment also matters.

Purchases may happen:

• Daily
• During evening return from work
• Weekly
• After salary payment
• At the beginning of the month
• Before festivals
• During emergency meal planning

Cooking Gravy Example

A Dal Tadka Base aimed at factory workers may sell better:

• At a shop near the factory gate
• In a residential cluster
• Through a workplace demonstration
• Around salary-payment dates

It may perform poorly in premium supermarkets even if the target market is large.

Distribution should follow existing consumer behaviour rather than expecting the consumer to adopt a new buying journey.

________________________________________

16. Understand the Decision-Making Unit

The buyer, cook and eater may be different people.

For example:

• The husband may purchase the product.
• The wife may cook it.
• The children may judge the taste.
• The elderly family member may object to packaged food.

For a business customer:

• The owner may approve the purchase.
• The chef may use the product.
• The procurement person may negotiate the price.
• The customer may decide whether the result is acceptable.

The product must satisfy all important participants.

Questions to Ask

• Who first discovers the product?
• Who pays for it?
• Who uses it?
• Who approves repeat purchase?
• Who can reject it?
• Who influences others?

This becomes particularly important for communication and product trials.

________________________________________

17. Evaluate Communication Feasibility

Communication should be treated as an independent evaluation pillar.

A technically excellent product may fail if customers cannot quickly understand:

• What it is
• Why they need it
• How to use it
• Whether it is trustworthy
• Whether it provides value

Modern communication is complicated.

Consumers face:

• Too many products
• Conflicting health claims
• Limited attention
• Low trust
• Multiple languages
• Different literacy levels
• Digital misinformation
• Advertising fatigue

The team should therefore evaluate whether the product can cross the communication barrier.

Communication Questions

• Can the product be explained in one sentence?
• Can the benefit be understood within ten seconds?
• Can it be demonstrated visually?
• Does the product name explain the use?
• Can a retailer explain it correctly?
• Can one customer explain it to another?
• Can instructions be understood without technical knowledge?
• Can the message work in the local language?
• Can communication be delivered economically?
• How many exposures are required before purchase?

Cooking Gravy Example

A weak message may say:

“Advanced retort-processed culinary flavour solution.”

A stronger message may say:

“Complete Dal Tadka for four people. Add it to cooked dal and boil for three minutes.”

The first describes technology.

The second describes consumer value.

________________________________________

18. Assess Trust and Credibility

Packaged wet food may create concerns that do not arise with dry spices.

Consumers may ask:

• Does it contain preservatives?
• Is it safe without refrigeration?
• Is it stale?
• Is the oil good?
• Are real onion and tomato used?
• Is the product vegetarian?
• Is the company trustworthy?
• Why does it have a long shelf life?

Trust cannot be created only through claims.

It may require:

• Clear ingredient declarations
• Demonstrations
• Factory transparency
• Farmer stories
• Certifications
• Known community representatives
• Retailer recommendation
• Trial packs
• Consumer testimonials
• Simple explanation of retort technology

The Role of Farmers

Farmer participation can strengthen the product story.

For example:

“The coriander used in this cooking base is sourced directly from partner farmers.”

This can reinforce:

• Authenticity
• traceability
• quality
• fairness
• transparency

However, the farmer story should support the central value proposition.

The customer must first understand what the product does.

________________________________________

19. Examine Farmer and Raw-Material Linkages

Food-ingredient companies should evaluate whether farmers can become part of the supply system.

Questions include:

• Which ingredients can be sourced directly?
• Are suitable farmer groups available?
• Can the required varieties be cultivated?
• Can quality specifications be communicated?
• Is traceability possible?
• Can pesticide use be managed?
• Can the farmer receive a better or more stable realisation?
• Can the company obtain more consistent quality?
• Is direct sourcing commercially practical?
• Which ingredients must still come through mandis or traders?

Direct farmer sourcing need not begin with the entire requirement.

Even a carefully selected portion can help build:

• Learning
• traceability
• supply relationships
• communication content
• future procurement capability

The purpose should be to improve the value chain, not merely create attractive optics.

________________________________________

20. Assess Technical Feasibility

A successful kitchen recipe is not automatically a commercially viable product.

The team must determine whether it can be manufactured safely and consistently.

The technical assessment should include:

• Ingredient compatibility
• Processing method
• heat treatment
• pH
• moisture
• viscosity
• particle size
• oil separation
• colour stability
• aroma retention
• microbiological safety
• packaging suitability
• shelf life
• transport stability

Cooking Gravy Example

Retort processing may affect:

• Fresh aroma
• onion texture
• tomato colour
• spice intensity
• oil separation
• gravy thickness

A gravy that tastes excellent before retorting may taste flat or overcooked afterwards.

Product development must therefore include the complete commercial process, not only kitchen trials. 

________________________________________

21. Evaluate Manufacturing Complexity

Every additional ingredient and process step creates operational consequences.

The team should study:

• Number of raw materials
• Number of suppliers
• Cleaning requirements
• preparation time
• frying and browning
• grinding
• mixing
• batch size
• heat processing
• filling
• sealing
• retorting
• cooling
• quality checks
• yield loss
• labour dependency

A product with twenty-five ingredients may offer excellent taste but become difficult to standardise.

The team should ask:

“Does every ingredient and every process step create enough value to justify its complexity?”

Simplification should not damage product quality, but unnecessary complexity should be removed.

________________________________________

22. Establish Quality Standards

Taste cannot remain entirely dependent on one chef or product developer.

The company must convert sensory expectations into measurable standards.

Possible standards include:

• Salt percentage
• pH
• viscosity
• colour
• oil percentage
• pack weight
• moisture
• spice level
• particle size
• aroma profile
• serving yield
• heat penetration
• microbiological limits

A reference sample may also be maintained for sensory comparison.

Cooking Gravy Example

A Red Gravy may require standards for:

• Colour intensity
• tomato flavour
• onion browning
• oil separation
• chilli level
• thickness
• finished yield after dilutions

Without defined standards, batch consistency will become difficult as production grows.

________________________________________

23. Test Shelf Life Under Real Conditions

Shelf life should not be based only on ideal laboratory storage.

Products may face:

• High summer temperatures
• Humidity
• Rough transportation
• Poor retail storage
• Exposure to sunlight
• Extended distributor inventory
• Delayed consumer use

Testing should observe:

• Safety
• flavour
• colour
• texture
• oil separation
• pouch swelling
• seal integrity
• aroma loss
• consumer acceptability

Cooking Gravy Example

A product may remain microbiologically safe for twelve months but lose its fresh spice aroma after six months.

Legally safe and commercially acceptable are not always the same thing.

The intended shelf life should therefore reflect both safety and eating quality.

________________________________________

24. Calculate Full Product Cost

The company should calculate the total cost before deciding the selling price.

Costing should include:

• Raw materials
• Processing loss
• labour
• fuel
• utilities
• packaging
• retort processing
• secondary packaging
• quality testing
• storage
• transportation
• distributor margin
• retailer margin
• sales commission
• sampling
• promotion
• returns
• expiry
• compliance
• administrative overhead
• company contribution

A product may appear profitable when only ingredient and manufacturing costs are considered.

But distribution and customer acquisition may make it unviable.

Cooking Gravy Example

A ₹60 pouch may contain only ₹18–₹22 of ingredients and processing.

However, after adding:

• Pouch
• retort
• carton
• freight
• distributor margin
• retailer margin
• sampling
• unsold inventory

the contribution may become very small.

The team must calculate economics through the complete value chain.

________________________________________

25. Assess Channel Economics

Every participant in the channel must have a reason to support the product.

The team should understand:

• Distributor margin
• Retailer margin
• credit period
• minimum order
• delivery cost
• shelf space requirement
• product rotation
• expiry risk
• return policy
• retailer explanation effort

A product that requires extensive retailer education but provides a small retailer margin will receive little attention.

Alternative Channels

For some products, conventional distribution may not be the best starting route.

Possible alternatives include:

• Workplace sales
• Factory clusters
• community distributors
• direct institutional sales
• subscription models
• local food-business clusters
• company-operated counters
• online repeat ordering

The objective is not to use every channel.

It is to identify one channel that can demonstrate repeatable customer access.

________________________________________

26. Evaluate Competitive Differentiation

The team must identify what makes the product meaningfully different.

Possible differentiation may come from:

• Taste
• convenience
• pack size
• price per meal
• regional formulation
• ingredient quality
• farmer sourcing
• preservative-free processing
• customisation
• technical support
• labour saving
• better yield
• reduced wastage
• production consistency

The difference should be noticeable and valuable.

The Ten-Second Test

Can the team explain why the product is different within ten seconds?

For example:

“This is not another Dal Masala. It is a complete cooked tadka 

containing real onion, tomato, ginger, garlic, oil and spices.”

That distinction is understandable.

Claims such as “premium quality” are not sufficient because almost every brand makes them.

________________________________________ 

27. Examine Defensibility

A good product may be copied.

The company should therefore assess what will protect the business over time.

Possible forms of defensibility include:

• Unique process knowledge
• direct farmer relationships
• regional formulations
• customer-specific recipes
• strong community access
• manufacturing capability
• trusted brand
• technical service
• proprietary cost and usage data
• retailer network
• training systems
• continuous product improvement

A recipe alone is rarely a durable advantage.

The stronger business may come from combining the product with relationships, service and knowledge.

________________________________________

28. Conduct Concept Testing

Concept testing takes place before the final product is ready.

The company presents the idea and observes whether customers understand it.

The concept test should examine:

• Problem recognition
• product understanding
• perceived usefulness
• expected price
• usage occasion
• concerns
• comparison with current practice

Cooking Gravy Example

A concept may be presented as:

“A complete cooked Dal Tadka Base containing onion, tomato, ginger, garlic, oil and spices. Add it to cooked dal and boil for three minutes.”

The researcher should then ask the customer to explain the product back in their own words.

If customers misunderstand the idea, communication or product design may need revision.

________________________________________

29. Conduct Product Testing

Product testing should take place with actual target users.

The test should record:

• Taste acceptance
• aroma
• colour
• texture
• ease of use
• portion adequacy
• cooking success
• family response
• price acceptance
• intention to use again

The product should be tested in comparison with:

• The customer’s normal preparation
• One or more competing alternatives
• Different formulations
• Different pack sizes

Internal company tasting is useful, but it cannot replace customer testing.

________________________________________ 

30. Conduct the Paid Trial

Free samples create interest, but they do not prove demand.

People often praise food products when:

• They receive them free
• The developer is present
• They want to be polite
• They face no purchase risk

A paid trial provides stronger evidence.

The price may initially be subsidised, but the customer should make a real purchase decision.

The team should record:

• Number of people approached
• Number willing to buy
• Price paid
• Number who actually used the product
• Number satisfied
• Number who requested it again

This separates curiosity from purchase intent.

________________________________________ 

31. Measure Actual Repeat Purchase

Repeat purchase is one of the strongest indicators of product-market fit.

The team should not rely only on statements such as:

“I will definitely buy it again.”

It should observe whether the customer actually returns.

The repeat-purchase period depends on usage frequency.

For example:

• Daily-use product: two to four weeks
• Weekly-use product: six to eight weeks
• Monthly-use product: three to six months

Information to Record

• Date of first purchase
• Date of use
• Date of second purchase
• Number of packs purchased
• price paid
• channel used
• reason for repurchase or non-repurchase

A product generating high trial but weak repeat should not be rushed into expansion.

________________________________________

32. Conduct Household or Kitchen Observation

Researchers should observe at least some consumers using the product in real conditions.

This often reveals issues that interviews miss.

For example:

• The user adds too much water.
• Only half the pouch is used.
• Salt is added unnecessarily.
• The product is stored incorrectly.
• Family members find the taste too strong.
• Instructions are not read.
• The pack is difficult to open.
• The serving claim is misunderstood.

Such observations can improve:

• Formulation
• instructions
• pack size
• communication
• pricing
• product name

Real kitchens are often more useful than conference-room discussions.

________________________________________

33. Conduct a Channel Pilot

A product should be tested through a limited number of carefully selected channels.

For example:

• Five kirana shops
• Two workplace locations
• One community distributor
• One online ordering group
• A small number of food-service customers

The pilot should measure:

• Sales per outlet
• customer enquiries
• retailer willingness
• repeat purchase
• inventory rotation
• payment delays
• returns
• communication problems
• channel cost

The purpose is not to create large sales immediately.

The purpose is to understand how the product moves through the market.

________________________________________

34. Evaluate a New Customer Segment Separately

Sometimes the opportunity is not a new product but a new customer segment.

For example, a company may wish to move from households to:

• Local Food Businesses
• HORECA
• factory canteens
• cloud kitchens
• institutional kitchens
• bakeries
• namkeen manufacturers

The company should not assume that the same product, pack and selling method will work.

For every new segment, evaluate:

• Customer need
• buying volume
• buying frequency
• quality expectation
• customisation
• credit requirement
• decision maker
• service requirement
• communication method
• pack size
• technical support
• gross margin
• payment risk

Cooking Gravy Example

A household may need a 120-gram pouch.

A small cloud kitchen may need a 1-kilogram pack.

A restaurant may require a 5-kilogram pack with custom viscosity.

A local food business may want its own recipe converted into a standard cooking system.

The core product may be related, but the business model is different.

________________________________________

35. Create a Weighted Evaluation Score

To compare several opportunities, the company can use a weighted score.

Each criterion may be rated from 1 to 5.

The weights can be adjusted according to the business.

The weighted score should support judgement, not replace it.

Suggested Interpretation

• 80% and above: Strong candidate for a controlled launch

• 65%–79%: Promising, but improvements are required

• 50%–64%: Continue only as a limited pilot

• Below 50%: Do not proceed in the present form

________________________________________

36. Identify Fatal Conditions

A high average score should not hide a fatal weakness.

Certain failures should stop or delay the product regardless of the total score.

Possible fatal conditions include:

• Food-safety risk
• Unstable shelf life
• Unacceptable taste
• No workable distribution route
• Consumer price above the acceptable level
• Negative margin after channel costs
• Product instructions not understood
• Very weak repeat purchase
• Unreliable raw-material supply
• Excessive credit or payment risk
• Major regulatory barriers

These should be treated as mandatory gates.

________________________________________

37. Establish Go, Improve, Hold and Stop Decisions

The evaluation should lead to one of four decisions.

Go

The product has demonstrated:

• Real need
• acceptable product performance
• paid demand
• repeat purchase
• viable economics
• workable channel
• scalable manufacturing

Improve

The opportunity is strong, but changes are required in:

• Taste
• pack size
• price
• instructions
• communication
• channel
• formulation

Hold

The product may be relevant in the future, but market readiness, technology or channel conditions are not yet favourable.

Stop

The product does not solve a strong enough problem or cannot achieve acceptable economics.

Stopping a weak idea is not a failure.

It is a successful outcome of disciplined evaluation.

________________________________________

38. Maintain an Evidence File

Every product evaluation should create a permanent knowledge record.

The file should contain:

• Opportunity statement
• customer definition
• market estimates
• interview notes
• kitchen observations
• product formulations
• trial results
• cost sheets
• photographs
• communication tests
• paid sales
• repeat-purchase records
• channel feedback
• technical reports
• final decision

This prevents future teams from repeating the same assumptions and mistakes.

It also creates institutional knowledge.

________________________________________

39. Separate Facts, Assumptions and Opinions

Every evaluation document should identify three types of information.

Fact

Supported by verified data or observation.

Example:

“Thirty-two of the fifty test households used the complete pouch during the first cooking occasion.”

Assumption

A reasonable estimate that still requires testing.

Example:

“We assume that the average household may purchase two pouches per month.”

Opinion

A judgement expressed by a team member, customer or expert.

Example:

“The distributor believes the product can sell well in industrial areas.”

Opinions are useful, but they should not be presented as facts.

This simple discipline can prevent teams from getting carried away by confident statements.

________________________________________

40. The Final Evaluation Question

After completing the entire exercise, the company should be able to answer one question clearly:

Does this product solve a frequent and important food-preparation or production problem for a clearly defined and practically reachable customer, at a price the customer will repeatedly pay, through a channel that creates sustainable value for the customer, supplier and business?

For a Cooking Gravy, this may become:

Can this gravy help the intended household or food business prepare a desired dish more easily and consistently, at an acceptable total meal cost, and will the customer buy it repeatedly after experiencing the result?

If the answer is supported by actual evidence, the product may be ready for a controlled launch.

If the answer depends mainly on enthusiasm, assumptions or free-sample appreciation, more work is required.

________________________________________

Final Perspective

Food-ingredient companies should not become product-launching machines.

They should become problem-identification and solution-validation organisations.

The objective is not to launch the maximum number of products.

The objective is to identify a smaller number of products that:

• Solve real problems
• Fit actual cooking behaviour
• Can be clearly communicated
• Deliver measurable value
• Generate repeat purchase
• Can be manufactured safely
• Can reach customers profitably
• Can improve over time

Cooking Gravies provide a useful example because they combine:

• Consumer behaviour
• culinary science
• wet ingredients
• spices
• packaging
• food technology
• communication
• distribution
• affordability

But the same evaluation discipline applies to every food ingredient.

A spice blend, bakery premix, seasoning, filling, marinade or production system should not be launched merely because the formulation is ready.

It should be launched only when the market, product, communication, technology and business model have all been tested together.

That is the difference between launching a product and building a sustainable food-ingredient business.