Bush Boake Allen Essay

1981 words - 8 pages

Bush Boake AllenExamine the problems surrounding BBA by identifying the characteristics of BBA's traditional product development cycle and business model, while keeping in mind traits to the Spice Industry.Product Development Cycle:In general flavor development process is initiated by a customer order or by BBA itself trying new flavor to market. The sales or marketing people act as a bridge between R&D department and customers during the process of flavor development. In a typical project a sample flavor can be delivered in seven days and the tricky part is getting the feedback from customers. It is frustrating for the sales people to get a feedback after three weeks asking for a change. The complete process goes back and forth to development team and customers. Also, on an average about 5-10% of all development requests would eventually be accepted by customer. Traditionally in the flavor industry all the R&D expenses are borne by flavor makers like BBA. Most of the flavors are customized to specific requests by the customers and involves a huge amount of time and resources investment by flavor makers like BBA. The development process impacts multiple departments such as marketing, regulatory, quality control, management. This increases the cost of flavor production to BBA and apart from that to maintain a strong market presence flavor makers need to respond quickly to customer requests.Market Trends • Increasing price pressure from food manufactures leading to erosion of flavor prices. • Increasing costs of raw materials. • Increasing globalization with emerging international market opportunities. • Increasing need for automation and operational efficiencies. • Consolidation through mergers and acquisitions (less F&F companies). Technological Changes in the Market In the last decade, prices in the F&F industry have been pushed down consistently by large manufacturers leading many companies to automate (at least certain processes) operations in order to cut costs. Additionally, advances in technology have allowed for more sophisticated analytical techniques as nuclear magnetic resonance, chromatography, and mass spectrometry to identify all components present in a given sample. Although it would be impossible to exactly replicate the flavor and smell of a strawberry for example (due to variances in ripeness, variety, region, etc.) basic nuances such as "woody", "leafy", or "jam-like" could easily be adjusted to balance the desired flavor. Legal/Regulatory Issues All flavors worldwide were subject to regulation by equivalents of the U.S. Food and Drug Administration and other state and local regulatory agencies. In some countries, one also needed to register all samples with the government- just because two or three ingredients were safe did not mean that combining them would prove safe. Complying with the regulations however had not been problematic and had not impacted the company's earnings or...

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