ERP-supported target costing approach in the gastronomic new product development process

This study aims to address the new product development process for food and beverage businesses, which constitute one of the essential components of the tourism sector, from a cost management perspective, with the objective of developing a model that integrates an ERP-supported target costing approach into the process. Accordingly, a sequential multiphase mixed method design was adopted. The new product development process was carried out through four main stages: market research, development and standardization, consumer testing, and cost analysis. In the market research phase, interviews were conducted to determine consumer trends, define product specifications, identify appropriate raw materials, and assess price expectations. In the development and standardization phase, three prototypes were developed using the specified raw materials, and the product's standard recipe was created based on the selection of the most suitable prototype by trained panelists. In the consumer testing phase, a sensory evaluation was conducted with the participation of untrained panelists to determine the product's appeal level, purchase preference, and price expectation. In the cost analysis phase, the target selling price, target profit, and variable target cost were determined, and a production scenario for 30 portions was developed. These data were integrated into the ERP system to enable detailed cost calculations within the framework of the target costing approach. Subsequently, the variable actual cost of the product was compared with the variable target cost, and the difference was analyzed. The results indicated the necessity of optimizing unit variable costs in order to achieve the target cost. Accordingly, changes were made to the material components of two semi-finished products used in production, and a new production scenario was created reflecting these modifications. In this scenario, not only the raw materials but also the direct labor time (DLT) was reorganized, aiming to reduce costs through process optimization. As a result, a new product development model tailored to food and beverage businesses was proposed. Given the stages followed and the procedures implemented, this research qualifies as an R&D project.