ENTREPRENEURSHIP

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THE NEW IMPROVED PRODUCT

There are many existing products in the market that are serving the needs and
wants of customers but not that well. The existing products are being tolerated
because there are enough features and attributes to make the customers want to
buy the product. However, there are enough “dissatisfiers” in the product to warrant
the introduction of new, improved versions, or modifications of the product such as
in the case of the Crunchy Bawang.

STUDY THE CASE EXAMPLE :

Case Example 2 :
CRUNCHY BAWANG - the Case of New Improved Product

Two entrepreneurs, Geraldine Domingo and Carla Ortega wanted to improve an

existing product, that is, the fried garlic in oil (FGO) otherwise known as “Cruchy
Bawang”. The product was commanding a higher price of P180.00 per bottle
although they thought it could be substantially upgraded.
The two entrepreneurs bought several bottles of the existing FGO and decided to
conduct taste tests and interviews at a school cafeteria of graduate students to
determine the positive and negative attributes and features of the product. One
hundred respondents were chosen during lunchtime. The respondents liked the
peculiar garlic taste (67%), its crunchiness and texture (92%), and the bottled
convenience it offered (56%). What they disliked about the product was its relatively
bland taste (74%) compared to fresh products, its oiliness (71%), and its food safety
aspects (38%) because there was no expiration date, no manufacturer’s name, its
poor packaging, and no details on the ingredients. Eighty nine percent said they
would buy the product while 11% said no. The preferred prices were between
P76.00 and P100.00 (74%), P100.00 to P125.00 (11%), P125.00 to P150.00 (8%),
P50.00 to P15.00 (5%) and P151.00 to P175.00 (2%)
In terms of usage, the entrepreneurs discovered that 33% used the FGO as rice
toppings while 67% placed it on their plates beside the viand. The entrepreneurs
also interviewed the buyers of the existing FGO by waiting for them near the store
selling the FGO. They found out that the buyers regularly bought the FGO to
enhance the taste of their cooked food. The buyers also did not like the oiliness of
the FGO and its high price, although the convenience seemed to make up for the
price.
The two processes allowed the entrepreneurs to conclude that : (1) there was a
good demand for the product; (2) the product could be improved by lessening the oil,
enhancing the taste, and coming up with a better package; and (3) customers could
buy a bigger volume if the prices were lower.
From the taste test and interviews of FGO buyers, the entrepreneurs plunged
into the product development stage. This consisted of three parts : (1) preliminary
testing; (2) establishment of specifications for the product; and (3) standardization of
the production process.

STAGES OF PRODUCT DEVELOPMENT

Part 1 : Preliminary Testing
Part 2 : Establishment of Specifications
for the Product
Part 3 : Standardization of the Production

Part 1 : Preliminary Testing

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 ENTREPRENEURSHIP
11:00 - 12:00 (TH, F) 2:00 - 3:00 (M, W)
In the first part, the entrepreneurs consulted food experts and read the literature
on food processes. They were told that, “fried garlic submerged in oil and sealed in a
bottle as a food system was very unstable.” They discovered that there was a need to
regularly replenish the cooking oil with fresh oil. There was also danger of
undercooking the inside portion of fried food. These findings and other such
recommendations propelled the entrepreneurs to conduct several experiments to
determine the following :
 the right garlic size and shape that would be the easiest to cook and the most
pleasing in appearance;
 The expected yield of FGO from one kilo of unpeeled garlic;
 the right frying temperature;
 the minimum peeling time for garlic; and
 the minimum mincing time for garlic

Part 2 : Establishment of Specifications for the Product

In the second part of product development, the entrepreneurs determined the
exact specifications for the product based on the raw material and the vegetable oil
to be used. The entrepreneurs choose four different options on the kind of garlic to
be used and two different options for the vegetable oil (after eliminating the very
expensive oils for cost reduction purposes).
In terms of methodology, the entrepreneurs gathered a panel of 25 food
technology students in their third and fourth year from a top university. The taste
test on the 25 panelists sought to determine the best color, odor, crunchiness, flavor,
and acceptability of the FGO by using the statistical Analysis of Variance or ANOVA
method. The ANOVA method tabulated the results of the taste tests and determined
whether there was a statistical difference in the mean scores revealed by the test
results. This was done by postulating the null hypothesis that there was no
difference among the mean scores of the different options tested.
From the product test, the entrepreneurs chose the desired garlic variety and the
appropriate vegetable oil. This part of the product-testing phase needed food
technologists’ expertise rather than consumers since they were more knowledgeable
on the technical aspects of color, odor, texture, flavor, and crunchiness. Moreover,
their taste buds were deemed more sophisticated because of their training and
exposure to different types of food and cooking styles.

Part 3 : Standardization of the Production Process

The third phase of product development involved the standardization of the
entire food preparation and cooking process. The entrepreneurs wanted to
standardize the frying time, the optimum oil usage and oil recycling frequency, and
the optimum soaking time in calcium choride. Again the results of the varios
experiments conducted by the entrepreneurs were subjected to a panel of food
technologists. The mean scores of the test results were tabulated and they were,
again, subjected to the ANOVA method to determine their statistical significance.
Finally, when the entrepreneurs were satisfied that they were able to determine
the best FGO to be produced and marketed, they then developed the whole FGO
production process. They divided this into three parts : (1) pre-frying stage; (2)
frying stage; and (3) post-frying stage. This work process allowed the entrepreneurs
to become more efficient in converting the production input into production output
by designing a good transformation process or throughput system.

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