Deckard – watch out!
New software aimed at CPG innovators
FDA tightens noose
Gates gives $25m to biofortification plan
Think global, act local
Line extension blues

Innovation

Deckard – watch out!

Japanese researchers have moved several steps nearer making Blade Runner a reality. Compact humanoid robots, so mobile and graceful in motion that they might be called beautiful, and capable of performing karate and sumo exercises featured at the CEATEC show in Japan 2003

Wind River Systems is showing morph 3, a compact humanoid robot with 13 sub-cpus (central processing units) in addition to its main processor. Some 138 pressure sensors and 30 compact motors allow morph 3 not only to walk on two feet, but also perform karate forms, back flips and defensive positions.

The special talent of HOAP-2, Fujitsu's humanoid robot, is the Chinese martial art called taijiquan. HOAP-2 accurately simulates human movement and can control its balance and perform difficult feats such as standing on its head and stamping on the ground like a sumo wrestler.

In a less physical vein, owners of PFU's MARON-1 home robot can send it instructions by cellular telephone to monitor homes and operate electronic appliances while they are away. No more turning back to check if you’ve turned off the stove or shut the fridge door.

In a multi-tasking sign of the times, Sohgo Security Services’ C-4 security robot acts as both visitors’ guide and after hours security guard.

Banryu, a robot jointly developed by Santo Electric and tmsuk walks on four legs and has sensors to detect smells, sounds, temperature and the presence of people, as well as a 360-degree rotating camera. Banryu will alert its owner in the event of emergencies while out of the home. Woof woof.

New software aimed at CPG innovators

US-based software house Sopheon has brought out a version of its flagship product development software system, Accolade version 5.0, which is tailored for companies in the food and beverage, paper products and specialty chemical industries.

The new product portfolio management system helps users prioritise projects to ensure they are investing resources in the right product ideas. It also helps balance product development risk and reward within and across brands.

The latest version has more than 36 new or enhanced features, including industry-specific research centres, that support assessment of product ideas and increase the quality of "go/kill" portfolio management decisions. Other tools aid in project prioritisation and corresponding alignment of resources, and new document routing and tracking features enable compliance with US Food and Drug Administration regulation 21 CFR Part 11 and other regulatory standards.

Each research centre provides access to patent, market, technical, regulatory, supplier and other information from print and Web-based industry journals, online databases, industry associations and scientific publications pertinent to the targeted industry. It also offers access to a network of external technical and business experts with subject matter knowledge specifically relevant to the user’s vertical focus and related areas. Expert how-to tips and methods guide novice researchers while advanced users can access sources directly. Research centres are available for the food and beverage, chemical, and paper industries, and Sopheon will create custom research centres for other markets.

Accolade’s best practice content contains an updated from Product Development Institute founder Robert Cooper, creator of the Stage-Gate process. Companies can adapt this to their own standards and needs.

Regulation

FDA tightens noose

The US Food and Drug Administration will insist that food importers register their suppliers and that they tell the FDA of imminent landings a day before they land.

These new rules, part of the FDA’s effort to comply with the US’s new Bioterrorism Act, will make life tough for food firms. National Food Processors Association (NFPA) boss John Cady says the rules some 400,000 local and foreign firms to register before the end of the year. He added the FDA had removed some of the unintended victims of the rules, such as private homes and schools that hold cookie sales to raise funds for charities.

“We have already scheduled several seminars, both in the US and abroad, to help food companies understand how these new requirements affect them, and to ensure full compliance by our industry," Cady said.

Nutrition

Gates gives $25m to biofortification plan

Bill Gates’s charitable foundation will give $25m to the International Food Policy Research Institute (IFPRI) to fight malnutrition with new plant breeding technology.

The grant will support HarvestPlus, a global research initiative to breed and disseminate crops that provide higher levels of micronutrients such as iron, zinc, and vitamin A. Gates Foundation director David Fleming said "Vitamin and mineral deficiencies, which contribute to the deaths of millions of children each year, can be easily prevented by adding just a few key nutrients to staple foods."

Malnutrition contributes to over half of child deaths in the developing world. The UN estimates nearly one-third of the world's population suffers from deficiencies in micronutrients.

HarvestPlus director Howarth Bouis added  "Biofortified crops have the potential to transform the health of these communities by allowing them to grow crops that are naturally fortified with essential micronutrients." The first target crops include rice, wheat, maize, beans, cassava, and sweet potato. 

Consumers

Think global, act local

New research just out suggests that the adage, "think global, act local" still has value, despite globalisation. This is true if only because shopping habits are different in different countries, even neighbours such as France and Germany, say ACNielsen and SupermarketGuru Phil Lempert.

The average French household spent about $5,106 at retail in 2002, with the Swiss a little behind at $4,865 and the Italians third with $4,382.

Hongkongese spent a miserly $8.08 per shopping trip but enjoyed retail therapy every 1.2 days, about the same as German and Italians. Chileans bring out their purses once every 5-7 days, and Australians avoid the malls for up to four days at a stretch. But then almost all (96%) hit the malls.

Germany and the UK have very similar annual spends, but very different shopping habits. British shoppers have much bigger baskets ($24.07 vs. $15.04) while German buyers shop almost twice as often [every 2.8 versus 1.6 days] and spend 9.4% more.

ACNielsen says more frequent shoppers often become more promotion-aware, highly sensitive to temporary price reductions [TPRs]. Continuous exposure to products and price points enables them to make more informed buying decisions and to spot deals and promotions. But this also means less planned shopping and more impulse buys.  

Marketing

Line extension blues

Only a quarter of line extensions grow the brand, says new ACNielsen research.

Line extensions, such Kit Kat Chunks, are a popular way for brand owners to extract more value from the brand name, even as the number of brand names shrinks. But research into the performance of 80 line extension launches over several years showed that nearly 25% of them failed to grow the total franchise.

There are four reasons. The first is consumer perceptions of substitutability. The more differentiated the line extension is from the other products in the brand franchise, the better opportunity for overall franchise growth.

Second, the transaction size of the line extension. Line extensions that shrink the franchise are often sold in smaller sizes or generate fewer units purchased on each occasion than the parent brand.

Third, the more money “borrowed” from the parent brand to support the extension, the less likely the extension is to grow the franchise.

Fourthly, if a line extension “steals” shelf space from the main brand, the franchise as a whole will shrink.