MKT 530 New Product Development and Branding Strategies

USC MKT 530: D. Badame

Tu/Th 3:30 – 4:50 p.m.

JKP 210

UNIVERSITY OF SOUTHERN CALIFORNIA

Marshall School of Business

MKT 530 – New Product Development and Branding Strategies

Fall 2008

Tuesday/Thursday 3:30 – 4:50 p.m.

Location: JKP 210

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Professor: Dr. Diane M. Badame

Telephone: (213) 740-5053

Office: Accounting Building, Room 228

E- Mail:

Office Hours: Tuesday/Thursday 5:00 – 6:00 p.m. and by appointment

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Reasons to Take This Course

A successful new product does more good for an organization than anything else that can happen. Over $100 billion are spent annually on the technical phase alone. This course provides you with an understanding of why organizations continually need to innovate and bring to market products and services that clearly distinguish themselves from the competition by offering higher value to specified target markets. You will learn how to most effectively develop and implement a new product or service to an existing or potential target market.

Course Description

New product development encompasses a myriad of processes and proven methodologies. During the course, you will learn how to assess and evaluate the quality of different models and techniques through case analyses, exercises and class discussions. You will learn how to write an effective New Product Development (NPD) Plan that integrates all of the components of new product development and branding into a cohesive, integrated plan for any new product or service. You also will learn about brand development and its impact on marketing strategies and brand equity.

Course Prerequisite

This course assumes that you have taken the core marketing course in the MBA program. If you have not taken a new product development marketing class or do not have relevant experience, please discuss with the professor.

Learning Outcomes

Students will be able to:

1. Develop a real-world New Product Development (NPD) plan for a new product or service concept by utilizing key new product development processes, theories and concepts and professionally present these recommendations in class.

2. Apply specific new product or service development and branding constructs to the thorough analysis of each case.

3. Enhance problem-solving, critical thinking, organizational, creative and analytical skills.

Required Readings

§ Crawford, Merle and Di Benedetto, Anthony (2008). New Products Management. Irwin McGraw-Hill.

§ Course Reader of cases and selected articles.

Grade Breakdown and Expectations

The following 1000 point grading system will be utilized for the course:

Topic / Percentage of Grade / Points / Due Date
(See Course Schedule)
Class Participation / 10% / 100 / 8/26 – 11/25
New Product Success Assignment / 10% / 100 / 9/16 – 11/20
Product Failure Assignment / 15% / 150 / 9/11
Individual Case Assignment / 25% / 250 / 10/9 – 11/18
NPD Project / 12/2 and 12/4
- Write-up / 35% / 350
- Presentation / 5% / 50
Subtotal / 40% / 400
Total / 100% / 1000

A detailed course schedule is shown on page 4. The Department of Marketing follows the grading policy of the Marshall Graduate School of Business. For this elective course, the grading standard is an average of 3.5.

Attendance

Attendance is expected. Your ability to benefit from the course and contribute to the class is largely dependent upon your attendance during class meetings.

If you are unable to attend class on any occasion, please notify the professor in advance, where possible. Moreover, you will be responsible for everything covered or announced in class on that day.

If you miss more than three class meetings during an elective class, the professor may deduct points from the final grade.

Class Format

Class sessions will be devoted to summarizing major new product development and branding concepts and then probing, extending and applying these concepts to exercises and cases utilizing a great deal of interactive discussion. Discussions focused on concepts, cases and applications will be utilized to maximize learning and provide a forum in which new product development processes, successes, failures and branding concepts and theory are applied to real world experiences. It is assumed that all students by being prepared for each class will actively contribute to each session to maximize the learning experience. You may be cold called in class to explain a concept, answer a question, defend a point or apply some course material to real world applications.

Class Participation

Class participation is an extremely important part of the learning experience of this course because the richness of the learning experience is dependent upon the degree of preparation by all students prior to each class session. Additionally, a course focused on case analyses requires students to prepare cases and offer their analyses in the class. Thus, by definition, class participation is an important part of your grade.

You will offer your opinions in a group setting many times in your business career and evaluating class participation is a tool for preparing you for this dimension of your career. To foster a class environment that has active participation, 10 percent of the course grade or 100 points will be allocated to class participation.

Grading class participation will be based on the student’s willingness to actively participate and the quality of the comments expressed, not necessarily quantity. When evaluating participation, your professor will attempt to

answer the following questions:

Class Participation (Continued)

§ Does the participant attend class regularly and show up to class on time? Is the participant prepared?

§ Do comments add to an understanding of the marketing concept, situation, analysis, or recommendations being discussed? Does the participant go beyond simple repetition of case facts to include analysis and conclusions?

§ Is the participant a good listener? Are the points made relevant to the discussion? Are they linked to the comments of others? Is there a willingness to interact with other class members?

§ Is the participant an effective communicator? Are concepts presented in concisely and convincingly?

A class participation rating of 2, 1 or 0 will be given to each student based on his or her contributions during each class. A 2 rating will be awarded to those students who provide excellent contributions to class discussions. A 1 rating will be awarded to those students who provide proactive, positive contributions to class discussions. A 0 rating will be awarded to those students who do not attend class, do not participate in class discussions or provide negative contributions.

No Laptop or Other Communication Devices Policy

To ensure the richness of the learning experience, eliminate distractions and demonstrate the utmost respect for all students and the professor, laptops, iPhones, cell phones, Blackberrys and any other communication devices will not be allowed during class.

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 the professor as early in the semester as possible. DSP is located in STU 301 and is open 8:30 a.m. – 5:00 p.m., Monday through Friday. The telephone number for DSP is (213) 740-0776.

Academic Integrity

Students are expected to adhere to the standards of academic integrity that govern students registered at USC. The use of unauthorized material, 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. It is often difficult to distinguish between a culpable act and inadvertent behavior resulting from the nervous tensions accompanying examinations. Where a clear violation has occurred, however, the professor may disqualify the student’s work as unacceptable and assign a failing mark on the paper.

Returning Graded Paperwork

Returned paperwork, unclaimed by a student, will be discarded after four weeks and, hence, will not be available should a grade appeal be pursued by a student following receipt of his/her grade.

Professor/Student Interaction

If at any time during the course you have questions regarding the preparation of assignments or other course-related issues, please do not hesitate to contact the professor to arrange a mutually convenient time to meet.

My philosophy is to create a community of learners whereby I facilitate discussions in which we construct knowledge together. Additionally I will give you as much feedback as you would like to help you become better new product development marketers and achieve your personal objectives for this course.

MKT 530 – New Product Development and Branding Strategies Course Schedule

Fall 2008

Class / Date / Topic / Assignment /
1 / 8/26 / Part One – Overview and Opportunity Identification/Selection
The Menu and The New Products Process / Chapters 1 – 2 (pp. 23 – 35) of New Products Management textbook
The 12 Different Ways for Companies to Innovate article /
2 / 8/28 / IDEO Product Development Case /
3 / 9/2 / The New Products Process (Continued) and Opportunity Identification and Selection / Chapters 2 (pp. 35 – 52) and 3 and The New Product Strategy at Kellogg Mini-case – pp. 75 – 76
4 / 9/4 / Creating Breakthroughs at 3M e
Innovation at 3M Corporation (A) and (B) Case
5 / 9/9 / Part Two – Concept Generation
Preparation and Alternatives and Problem-Based Ideation / Chapters 4 – 5 and Campbell’s IQ Meals Mini-case – pp. 128 – 129
NPD Project Proposals Due
6 / 9/11 / New Product Failure / New Product Commercialization: Common Mistakes
Introducing . . . The XFL! Case
Product Failure Assignment Due
7 / 9/16 / Analytical Attribute Approaches / Chapters 6 – 7 and Dell Computers (A) Mini-case – pp. 146 – 147
New Product Success Assignments Begin
8 / 9/18 / Zipcar: Influencing Customer Behavior Case
9 / 9/23 / Part Three – Concept/Project Evaluation
The Concept Evaluation System and Concept Testing / Chapters 8 – 9 and Nokia Mini-case – pp. 215 – 216
10 / 9/25 / Innovation at Progressive (A) and (B) Case
11 / 9/30 / Nestlé Refrigerated Foods (A): Contadina Pasta & Pizza Case
12 / 10/2 / No Class
13 / 10/7 / The Full Screen, Sales Forecasting and Financial Analysis and Product Protocol / Chapters 10 – 12 and WiLife, Inc. (A) and (B) Mini-cases – pp. 233 – 234 and 282 – 283
14 / 10/9 / XM Satellite Radio (A) Case
First Possible Case Write-up
15 / 10/14 / Pepcid AC: Racing to the OTC Market Case
16 / 10/16 / Part Four – Development
Design / Principles for User Design of Customized Products
Chapter 13 and iPhone Mini-case – pp. 312 – 314
17 / 10/21 / Braun: The Syncro Shaver (A) and (B) Case
18 / 10/23 / Development Team Management / The New Product Development Imperative
Chapter 14 and Ford Mondeo Mini-case – pp. 343 – 344
19 / 10/28 / LePetit Chef Case
20 / 10/30 / Product Use Testing / Innovation in Services: Corporate Culture and Investment Banking
Chapter 15 and Product Use Testing for New Consumer Nondurables – pp. 366 – 367
21 / 11/4 / Bank of America (A) and (B) Case
22 / 11/6 / Part Five – Launch
Strategic Launch Planning and Implementation of the Strategic Plan / Chapters 16 – 17 and Wii Mini-case – pp. 403 – 404
23 / 11/11 / Eli Lilly: Developing Cymbalta Case
24 / 11/13 / Market Testing and Launch Management / When Growth Stalls
Chapters 18 – 19 and Pepsi-Kona and Pepsi One Mini-case – pp. 453 – 454
25 / 11/18 / The New Beetle Case
Last Possible Case Write-up Due
26 / 11/20 / Branding Strategies / Innovation: Brand It or Lose It and Leveraging the Corporate Brand
Chapter 20 and Hybrid or Hydrogen Vehicles at General Motors Mini-Case
Last New Product Success Assignments
27 / 11/25 / Course Review / Connect and Develop – Inside Procter & Gamble’s New Model for Innovation
P&G Japan: The SK-II Globalization Project Case
12/27 / Thanksgiving – No Class
28 / 12/2 / Final Project Presentations / NPD Project Presentations
29 / 12/4 / Final Project Presentations / NPD Project Presentations and Papers Due

Summary of Dates and Key Deliverables

Date / Deliverable
Tues., 9/9 / NPD Project Proposals
Thurs., 9/11 / Product Failure Assignments
Tues., 9/16 – Thurs., 11/20 / New Product Success Assignments
Thurs., 10/9 – Tues., 11/18 / Case Analysis Assignments
Tues., 12/2 and Thurs., 12/4 / NPD Presentations
Thurs., 12/4 / NPD Papers

Product Failure Assignment

Due: Thursday, 9/11

Project Overview

The failure rate for new products has hovered around 80 percent for several decades. This suggests the value of studying this enduring and costly marketing problem more intensively. To accomplish this, students will select a product/brand that entered the marketplace (US or global) within the past year, and subsequently failed. “Failure” is defined broadly and includes situations in which the product (1) has been withdrawn from the market, (2) achieved only a fraction of its pre-launch sales forecasts, or (3) remains unprofitable. Students should not select situations that are covered in HBS cases.

Project Report Preparation

Using conceptual material covered in class, prepare a diagnostic “product autopsy” that identifies and weights the factors that contributed to the product’s failure. First, explain the apparent marketing logic and related factors that provided the impetus for the development of your focal product or service failure. Then, in order of impact,

identify each failure factor, and explain how it contributed to the product’s demise or underperformance. Your written analysis should be no more than three single-spaced pages in length, excluding any supportive materials. This assignment is worth 15 percent of the course grade or 150 points out of 1,000.

Evaluation Criteria

1. Analytic comprehensiveness