UNIVERSITY OF SOUTHERN CALIFORNIA
Marshall School of Business
MKT 445: New Product Development & Branding
Fall 2005
Professor:
Deepa Chandrasekaran
Office:
Accounting Building
Telephone:
(213) 740-4797
Fax:
(213) 740-7828
E-mail:
dchandra@usc.edu
Office Hours:
T, Th 4-5 pm or by appointment at ACC 306K
USC Blackboard site: https://totale.usc.edu/
Text book web site:
http://highered.mcgrawhill.com/sites/0072961449/information_center_view0/
Description
New Product Development (NPD) planning processes and activities vary widely
across industries and organizations today. This course is designed to bring some structure
into the diverse and fuzzy world of new product management and branding. I will walk
you through the key aspects of a typical new product development planning cycle,
placing particular emphasis on marketing management issues and activities that
accompany the key phases involved in developing, testing, launching a new product,
service, or other marketing innovation, and developing unique branding propositions for
the same.
Objectives
1. Theory: The main aim of this course is to provide a comprehensive and integrated
framework for understanding the process of new product development and branding.
You will be exposed to concepts underlying the various stages of new product
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development and branding, as well as research insights from leading academic
journals.
2. Application: You will develop a better understanding of the theory only by applying
it. The classroom discussions, quizzes, assignments and the project are meant to
demonstrate the practical application of the concepts learnt in class.
3. Extension: You will truly master the concepts not just by learning the theory, or
applying the theory, but challenging the theory. Throughout the course, I will raise
red flags and counter-intuitive thoughts. I welcome you to do the same. In fact, the
grades for your class participation and assignments depend not only on your ability to
apply the theory, but also on your ability to challenge conventional wisdom.
Prerequisites
You must have successfully completed BUAD 307 - Marketing Fundamentals in
order to register for this course.
Course Materials
There are both required text books and supplementary hand-outs. Two books are
assigned as required readings- one for the section on New Product Management and one
for the section on Brand Strategy. Both of these books are contemporary and easy to read,
especially the second book.
Title: NEW PRODUCTS MANAGEMENT
Author: MERLE CRAWFORD AND ANTHONY DI BENEDETTO
Publisher: MCGRAW - HILL IRWIN EIGHTH EDITION
Hardcover/Paperback: H
Title: THE 22 IMMUTABLE LAWS OF BRANDING
Author: AL RIES AND LAURA RIES
Publisher: HARPER COLLINS PUBLISHERS
Hardcover/Paperback: P
I will distribute handouts such as journal articles and newspaper clippings from the Wall
Street Journal as and when required.
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Grade Distribution
Each student will be assigned a final grade for the course based on his/her
performance on the following components, weighted accordingly.
Component
Class participation
Assignments
Quiz (3*10)
Project
Preparation
Individual
Individual
Individual
Group
% of Grade
10 %
30 %
30 %
30 %
Note: Your course grade will conform to existing Marshall School grade
distribution guidelines for undergraduate elective courses.
Class Participation
Treat each class as a business meeting: be present, alert and ready to participate.
Please inform me in advance if you intend to be late or absent. Your class participation
points will be based on
1. Class attendance and on-time arrival
2. Volunteering answers to questions raised during class lectures and case
discussions
3. Providing both insightful comments that show an understanding of the concepts,
as well as divergent thinking and an ability to question conventional wisdom
4.
Bringing up relevant points of discussion in class based on insights from current
newspaper or magazine articles. I encourage you to ‘keep their eyes open’ and
identify trends, regulations and changing needs that shape the market place, and
share them with the class.
5. Interactions with the guest speaker
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Assignments
There will be two individual assignments scheduled during the course.
Assignment 1 involves your analyzing a new product. Further details are given after the
course timeline. Details of assignment 2 will be given during the semester. Here are some
common guidelines.
1. The title of the assignment, course name, professor’s name, your name and your
student number should appear on the cover page.
2. Papers received after the due date will be penalized at the rate of 10% for every
weekday that they are late, unless prior arrangements have been made with me, or
under unusual and unforeseen circumstances. If you are absent on the day that the
assignment is due, you may email it to me. I will be available during office hours to
review outlines of your assignments.
3. Papers should be numbered, after the title page, and stapled in the top left hand corner
Quizzes
There will be three closed-book quizzes during the course. The quizzes will be for
20-25 minutes each, followed by the day’s scheduled lecture. The quizzes will cover
material from the lectures, cases, and assigned readings. They will consist of multiplechoice questions, fill-in-the-blanks and very short concept/ application based questions.
You are expected to take quizzes at the scheduled times. Consistent with University
policy, makeup quizzes will be given only if there is proof of illness or other emergency.
Term Project
Students will organize into teams of 4-5 members each and develop a new
product. Throughout the course, these groups will apply the concepts learnt in class to
this project. Teams will be asked to make one 5 minute presentation on the opportunity
identification and concept generation phase during the course of the semester. This will
keep you from completely back-loading your project.
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Mini-Case discussions
The course book contains several ‘mini-cases’ based on contemporary newproduct related events in the business world. Please read, analyze and be prepared to
discuss the cases marked in the schedule. The questions following the case summary in
the course book will serve as a catalyst for discussion on the concepts covered in the
lecture. The purpose of this is two-fold: One, to learn to apply the concepts to ‘fuzzy’
information, and Two, to practice the fine art of speaking in public. Articles may also be
assigned for discussion, and these will be handed out in the previous class session.
Extra Credit Policy
Please note that there are no opportunities to improve your grade through the
completion of extra credit work.
Academic Integrity
Students are expected to adhere to the standards of academic integrity that govern
students registered at USC. The use of unauthorized material, plagiarism, failure to cite
relevant work, communication with fellow students during an examination, attempting to
benefit from the work of another student, and similar behavior that defeats the intent of
an examination or other class work is unacceptable to the University. Where a clear
violation has occurred, the instructor may disqualify the student’s work as unacceptable
and assign a failing mark on the paper.
Students with Disabilities
Any student requesting academic accommodations based on a disability is
required to register with Disability Services and Programs (DSP) each semester. A letter
of verification for approved accommodations can be obtained from DSP. Please be sure
the letter is delivered to me as early in the semester as possible, not immediately
before any assignment or quiz. DSP is located in STU 301 and is open 8:30 a.m. – 5:00
p.m., Monday through Friday. The phone number for DSP is (213) 740-0776.
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Course advisory
All assignments are due at the beginning of the class on the due date specified.
Due dates are subject to change. Unexcused late assignments will not be accepted!
Additional readings may be added at the discretion of the instructor.
Unforeseen
circumstances may arise which mandate changes in the content of the course. Students
must be flexible and remain open to new avenues of inquiry. Returned paperwork,
unclaimed by a student, will be discarded after four (4) weeks and, hence, will not be
available should a student make an appeal following the receipt of his or her final grade.
Students are expected to adhere to the standards of academic integrity that govern
students registered at USC. Where a clear violation has occurred, the instructor may
disqualify the student’s work as unacceptable and assign a failing mark. The instructor
will adhere to the USC grading policy as it applies to this course.
Important dates for Fall 2005
19-Aug
22-Aug
August 22-26
5-Sep
9-Sep
9-Sep
11-Nov
November 24-26
2-Dec
December 3-6
December 7-14
December 15-January 8
Last day to register and settle without late fee
Fall semester classes begin
Late registration and change of program
Labor Day, university holiday
Last day to register and add classes
Last day to drop a class without mark of “W,” except for
Monday-only classes, and receive 100% refund
Last day to drop a class with mark of “W”
Thanksgiving recess
Fall semester classes end
Study days
Final examinations
Winter recess
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Schedule Overview
No. Date
Day
1
23-Aug Tuesday
2
3
Content
Introduction to the course, overview of
new products and innovation domain
25-Aug Thursday New product success/ failure
New product process overview
Reading : CB-Ch 1, 2
30-Aug Tuesday Corporate strategies in NPD
Reading: CB- Ch 3, Handout
4
1-Sep
Thursday Opportunity identification and the
Product Innovation Charter
Reading: CB- Ch 3
5
6-Sep
Tuesday
6
8-Sep
7
13-Sep
Tuesday
8
15-Sep
Thursday
9
20-Sep
Tuesday
10
22-Sep
Thursday
11
27-Sep
Tuesday
12
29-Sep
Thursday
13
4-Oct
Tuesday
14
6-Oct
Thursday
15
11-Oct
Tuesday
16
17
13-Oct
18-Oct
Thursday Guest speaker from 3M
Tuesday Test marketing and launch planning
Reading: Ch 16 , 17, 18
Creativity techniques
Reading: CB- Ch 4, up to page 92,
Appendix B, C
Thursday Concept development
Reading: CB- Ch 4, from pg 92,
Appendix A, B, Ch 5, pg 117-120
Problem-based ideation, and
Voice of customer
Reading: Ch 5, Hand-outs
Problem-based ideation (cont’d)
Reading: Ch 5
Positioning and perceptual mapping
Reading: Ch 6, Appendix B
Conjoint analysis
Reading: Ch 7
Concept Testing
Reading: Ch 9
Project evaluation and financial analysis
Reading: Ch 8, 10, 11
Product protocol
Reading: Ch 12
Product quality and design
Reading: Ch 12, 13
Product use testing
Reading: Ch 15
Activity
Case 1: Merck
Reading discussion:
TiVo
Case 2: New
product strategy at
Kellogg
NPD Team
formation and
Industry
Case 3: Concept
generation in toy
industry
Case 4: Campbell's
IQ meals
Project progress
report 1
Case 5: Wolverine
car wash
Quiz 1
Case 6: G5 doll
Assignment 1 due
Case 7: Product use
testing for new
consumer nondurables
Case 8: Pepsi-Kona
and Pepsi-One
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18
20-Oct
19
25-Oct
20
27-Oct
21
1-Nov
22
3-Nov
23
8-Nov
24
10-Nov
25
15-Nov
26
27
17-Nov
22-Nov
28
29
30
24-Nov
29-Nov
1-Dec
Thursday Product adoption and diffusion
Reading: Handouts
Tuesday Life cycle management issues
Reading: Ch 19, 20
Thursday NPD strategies for emerging economiesFortune at bottom of pyramid?
Reading: Handout
Tuesday Introduction to branding and brand
equity
Reading: CB-Ch 16, Handout
Thursday Brand positioning and values
Reading: 22 laws- Ch 5, 6, 8, 11,12, 22
Tuesday Branding elements
Reading: 22 laws- Ch 9,16,17
Thursday Strategies for building and measuring
brand equity
Reading: 22 laws- Ch 3, 4, 7, Handout
Tuesday Brand architecture
Reading: 22 laws- Ch 1, 2,10,13,14,15,
Handout
Thursday Guest speaker from Toshiba
Tuesday Managing brands over time
Reading: 22 laws- Ch 19, 20, 21
Thursday Thanksgiving holiday- No class
Tuesday Project presentations
Thursday Project presentations and course wrapup
Project progress
report 2
Quiz 2
Assignment 2 due
Quiz 3
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Individual Assignment 1 – Hindsight is 20/20 in New Product Development
Due Oct 6, 2005
Select a new product that was recently either unsuccessfully/successfully
introduced into the marketplace on either a test market, regional, national, or international
basis.
1. Classify the product on the degree of newness dimension (Booz, Allen and Hamilton
classification). Describe the product’s attributes and benefits.
2. Why do you believe the organization developed the product? Where do you see the
product’s fit with the firm competencies and market opportunities?
3 a. If the product chosen is a market failure, either through an interview with a company
executive or through secondary sources (business-oriented publications or the Internet),
or, through your own reasoning and any available outside information, summarize the
key reasons for the Failure of the new product in the market. Weigh the factors in order
of importance. Could the product have succeeded if mistakes had been corrected?
3 b. If the product chosen is a market success, either through an interview with a company
executive or through secondary sources (business-oriented publications or the Internet),
or, through your own reasoning and any available outside information, summarize the
key reasons for the Success of the new product in the market. Weigh the factors in order
of importance. Were any mistakes made which, if avoided, could have meant an even
more successful new product?
For the individual assignment, there is an upper limit of 3 pages of text with 12
point font and standard one inch margins, a maximum of 2 extra pages for tables or
graphs or other supporting material (use at least a line and 1/2 spacing) and 1 extra page
for references.
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Evaluation Criteria
1. Content: Thoroughness of research, accuracy of answers, application of concepts
learned in class, originality of ideas, logic and persuasiveness of causal analyses
2. Organization, appearance, references
3. Communication clarity
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New Product Project
Steps
1. Trend spotter: Select an industry. Spot a market opportunity by reading
newspapers/articles and keeping your eyes open. For instance, there could be
significant technological advances, different usage situations such as a growing
trend among people to eat ‘food on the go’, external threat/opportunity such as the
entry of Asian firms into the appliances industry, changing cultural patterns
among urban youth, new user groups such as the Urban singles, or the rich retired
and so on.
2. Problem-based ideation: Alternatively, you can observe people having
difficulties/frustrations in performing an everyday task. For instance, spilling food
on clothes while eating on the go, or difficulties in developing digital images.
3. Product Innovation Charter: Observe the fit to the competencies of your
organization, and identify a likely product opportunity. Develop a Product
Innovation Charter for this opportunity.
4. Concepts: Use the concept generation technique of your choice to develop
variations of the basic concept with respect to different product form, features,
benefits, positioning, and customer target. Write down 3 to 5 written concepts.
Briefly explain the logic by which you narrowed down your 3 to 5 concept
finalists, and also the concept generation technique that you used to come up with
each of these concepts.
5. Testing: Each team member can interview 5 prospective customers to obtain their
reactions to the 3-5 alternative concepts.
Explain your research sample and
procedures, and describe consumers’ overall reactions, specific likes and dislikes,
confusion, and purchase intentions.
6. Evaluation: Evaluate the concepts based on the consumer reactions, firm
characteristics and market opportunities, and select the winning concept.
7.
Marketing Mix: Describe the general elements of the marketing mix (branding,
pricing, packaging, distribution and promotion), paying special attention to the
branding elements. Describe the consistency, or lack of, in the positioning with
respect to all these elements.
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8. Testing and Launch: Describe briefly whether you are likely to conduct product
testing or test marketing, and if so, when, to whom and where? What are your
launch management strategies?
9. Summary: In one paragraph, summarize why this product is likely to succeed/fail
in the market place.
Format
Your paper should be organized in the form of the steps generally followed in
new product development. Preface the body of the paper with the Title page (Include the
full title of your project, your names, the course number, professor's name, and the date),
Table of contents and an Executive summary, not exceeding one page. Include an
appendix for tables and figures and a complete list of references.
Each section in the body of the paper should not be more than 2 pages
typewritten, double-spaced text in length, and the entire paper should not exceed 15
pages of typewritten, double-spaced text (for four students), plus title page, table of
contents, introductory section (objectives, overview, logic and structure of your paper),
references, appendices, any exhibits, and other supporting materials that you might wish
to include
Evaluation Criteria
1. Quality of concept development and evaluation research
2. NPD marketing strategy comprehensiveness
3. Thoroughness of research (Use of primary and secondary research sources)
4. Organization and clarity
5. Communication quality of alternative NPD concepts, and evaluation
6. Team presentations of report
7. Peer evaluation report
Progress Reports
On Sept 6, 2005, please submit the team name, industry and team members. You
are free to change the industry subsequently if you need to, but please inform me. Twice
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during the semester, you will be asked show the extent of progress in the project. On
Sept 20, 2005, each team will make a short 5 minute presentation on the perceive market
opportunity and core NPD idea, and possibly on various concepts generated.
On Oct 25, 2005, a one page progress report is due on what has been done to date,
expected time line for completion of the project, and any special issues.
These progress reports are not graded, but are useful to get early feedback.
On Nov 29 and Dec 1, each team will make a 15-20 minute presentation of their
new product project. Each member will present a section of the presentation. On Dec 8,
the teams will submit the project reports. Late submissions will not be accepted.
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