DAVID ECCLES SCHOOL OF BUSINESS

UNIVERSITY OF UTAH

SYLLABUS

MARKETING 6800

Innovation and New Product Development

Fall 2002

Bill Moore	MW 12:25-1:45PM
Office: BuC 17	FAMB 205
Phone: 581-5023 (office)
(435) 649-8859 (home)
E-Mail MKTBM@BUSINESS.UTAH.EDU

COURSE OBJECTIVES

This course focuses on the process used to develop new and improved products and services. Discussions consider, marketing, operations, engineering, and management issues. Particular emphasis will be given to the following topics:

· Strategies to guide the new product effort,

· Managing product development,

· Ways to search for, define, and evaluate new product opportunities,

· Product development and testing, and

· New product launch.

PEDAGOGY

The course is case and project oriented. Most class sessions will be based on a discussion of the issues raised in that day's case(s). Additionally, students will work in a team to develop a new product idea and a marketing plan.

READINGS

The assigned readings should be completed before the class discussion of the topic. All readings appear in the book of readings.

CLASS PARTICIPATION GRADE

It is expected that you will read and thoroughly evaluate each case. Your grade for class participation is based on the quality of your discussion during these cases - both when you are called upon and when you volunteer. Absences, for any reason, will result in a zero for that day.  This may be made up by handing in a two-page case write-up within one week of the missed session or December 7 which ever comes first.

NEW PRODUCT DEVELOPMENT PROJECT

Teams of 3 to 5 students will work together to develop a new product concept of their choosing, including drawings and/or model, as well as a marketing plan. There will be considerable freedom in what you do, but you must interview or observe some customers before developing your idea and must perform one or more concept tests. See the associated note for more details.

GRADING

The grades will be weighted as follows:

Conjoint Analysis Project Conjoint Analysis Forecasting Project Multidimensional Scaling Project Pivot Table Project New Product Development Project Class Participation

5% 5% 5% 5% 40% 40%

MATERIALS

A photocopied textbook and a case packet are available in the bookstore.

DATA PROVISION

In addition to the academic work described above, students are required to spend about an hour participating in a consumer research study. This task is viewed as a course requirement and may contribute toward the student's understanding of data collection and manipulation techniques discussed in the course.

COURSE OUTLINE

Wed Aug 21	Discussion: Introduction
	i. Introduction to course ii. Primary causes of new product failure iii. New product development process
Read:	Chapter 1 - Introduction to New Product Development.
Mon Aug 26	Topic: New Product Development Process
Case:	Associated Instruments Corporation: Analytic Instrument Division 9-689-052
Questions:	1. Summarize the major events in the 77000 project up to this point. How well has that project been managed so far? What did the team do right and wrong? 2. What has been the role of management and the various functional areas in the project? What was done well and what could have been done better? 3. What should Hoffenberger do about the issues facing him? Specifically what decisions should be made about price, injection molding, value analysis, and extended warranty.
Assume:	To simplify and standardize calculations, assume 1987 annual market share will decrease by 0.2% every month that a new product is not on the market (e.g., a market share loss of .6% for a three month delay), but 1988 market share will be unaffected, i.e. no gain as suggested on page 16, note A.1.b.
Wed Aug 28	Discussion: Strategic Focus
Read:	Chapter 3 - Strategic Concerns: Focus
Wed Sept 4	Topic: Product Platforms and Aggregate Product Plans
Case:	We've Got Rhythm! Medtronic Corporation's Cardiac Pacemaker Business 9-698-004
Questions:	1. Review Medtronic's history. What were the root causes of its troubles? 2. Describe Medtronic's current new product development process. Which of the improvements in the product development process were most instrumental in turning the company around? 3. What elements of Medtronic's approach could be applied in other businesses? 4. Evaluate the nature of senior management in the implementation of the product development system. Where does top management need to be intimately involved?
Mon Sept 9	Team work day: Project Planning
Wed Sept 11	Discussion: Concept Generation - Search for New Product Ideas:
Read:	Chapter 4 - Concept Generation
Mon Sept 16	Discussion: Project Planning and Idea Generation
Wed Sept 18	Project meetings - Project Planning and Preliminary Analysis
Assignment:
Mon Sept 23	Topic: Consumer Behavior
Case:	Consumer Behavior Exercise (A - F) 9-596-039 - 9-596-044
Questions:	Conduct a 30 to 60 minute depth interview on the product and topic assigned to you. Summarize your interview in one or two pages.
Wed Sept 25	Topic:
Case:	IDEO Product Development 9-600-143
Questions:	1. How would you characterize IDEO’s process, organization, culture and management? 2. Should IDEO accept the Visor project as it is (on a dramatically reduced schedule)? Should it try to persuade Handspring’s management to change its aggressive launch schedule? Or should it simply decline the project? Consider this from both the IDEO and Handspring perspectives.
Mon Sept 30	Discussion: Search for New Product Ideas: Conjoint Analysis
Read:	Chapter 6 - Conjoint Analysis
	Pivot Table Assignment is Due Today
Wed Oct 2	Discussion: Search for New Product Ideas: Multidimensional Scaling
Read:	Chapter 5 - MDS
Mon Oct 7	Case: Conjoint Analysis
Case:	Clark Material Handling Group-Overseas: Brazilian Product Strategy (A) and (B) Condensed 9-590-081
Questions:	1. What decisions did Richards need to make? 2. What was learned from the research reported in the first 12 Exhibits (i.e., everything prior to the follow-up simulations discussed on page 10 of the case)? What would you do based on this information? 3. What do the simulations suggest Clark should do? 4. If Hyster had access to the same simulations, what would it do? 5. How have the simulations expanded the value of the report?
Wed Oct 9	Discussion: Concept Tests
Read:	Chapter 8 - Concept and Product Testing
Assignment Due:	Final Conjoint Assignment is Due today.
Mon Oct 14	Topic: Concept and Product Testing
Case:	General Foods Post Division (A) 9-510-008
Questions:	1. What was known about PC-33 going into each test? What were the major unknowns? What should GF try to learn from each test? 2. What did GF learn from each test? What changes should GF have made to each test? 3. What should GF do now? Are the potential economics of the business good enough to justify continued effort? What market share is needed to earn a reasonable profit?
Wed Oct 16	Discussion. Concept testing for your projects
Mon Oct 21	Team meetings
Wed Oct 23	Topic: Managing Product Development Projects
Case:	NEC 9-693-095
Questions:	1. How successful has NEC's packaging engineering group been? What is it doing right? Where does it need to improve? 2. How is the industry evolving and how will this affect the packaging group? 3. Construct a development schedule through 2000 and allocate people across projects NEC should undertake. Assume that head count will grow no faster than in the past.
Read:	“Where No Computer Has Gone Before," Business Week, Nov 25, 1991 and "Call it Superbig Blue," Business Week, June 29, 1992.
Mon Oct 28	Discussion: Product Planning and Setting Product Specifications
Read:	Chapter 7 - Product Planning
Assignment:	Final MDS Assignment is Due today.
Wed Oct 30	Topic: Product Planning
Case:	Citibank: Launching the Credit Card in Asia Pacific (A) 9-595-026
Questions:	1. Should Citibank launch the card product? If you do not introduce the card, what would you do? 2. How should it be positioned? 3. What countries should it enter and in what order? How should Rana Talwar market the card internally?
Assumptions:	To increase comparability of analysis, assume 1) the approximately $60 cost per acquisition in Table A holds for all countries, 2) the $25 cost per card in the next to the last line on page 9 is really cost per customer, and 3) the revenue per customer shown in Table B holds for those same income classes in other countries.
Mon Nov 4	Discussion Sales Forecasting and Planning
Read:	Chapter 8 Concept and Product Testing (pp1-4) Nestlé Refrigerated Foods 9-595-035 pp 5- 9 (first paragraph) and related tables. Chapter 2 Product and Market Evolution (pp.22-26)
Wed Nov 6	Discussion: Marketing Plans for projects
Mon Nov 11	Project Meetings - Design Review
Wed Nov 13	Topic: Sales Forecasting with Trial and Repeat Models
Case:	Nestlé Refrigerated Foods 9-595-035
Questions:	1. Using the BASES model in Exhibit 9, forecast sales for the two pizza options. Notice that the top box scores are very different for Contadina users and non-users. On page 14, Nestlé's MRD cautions that parent brand usage may vary from 5% to 25%. Make forecasts based on several penetration scenarios. 2. What do you learn from all of the other exhibits? Is this a good opportunity? What are the strengths and weaknesses of the pizza concept? 3. How would you compare the pizza opportunity to the pasta opportunity? Why was the pasta so successful? 4. Would you launch the pizza?
Mon Nov 18	Discussion: Managing Development
Read:	Chapter 10
Wed Nov 20	Topic: Planning Development
Case:	BMW AG: The Digital Auto Project (A) 9-699-044
Questions:	1. What are the competitive challenges in the automobile industry in 1997 and beyond? How is BMW affected? 2. How has BMW's product development process evolved? Why does BMW's management feel there is a need to slash development time by 50%? 3. Is senior management giving the organization enough time to carry out these changes or is it moving too slowly? What are the risks of moving too quickly or too slowly? 4. As Peter Ratz, what would you recommend? Provide specific recommendations regarding BMW's styling process and the role that CAS should play?
Mon Nov 25	Discussion: Product and Market Evolution
Read:	Chapter 2 - Product Evolution (pp. 1-22)
Wed Nov 27	Topic: Product Planning and Forecasting - a Technical Innovation
Case:	Rogers Communications, Inc.: The Wave 9-597-050
Questions:	1. How does the convergence of television, telephone, and computing affect the future of cable television and Rogers? What benefits will convergence deliver? To whom will it deliver them? 2. What is the likely size of the market for high speed Web access in Newmarket over the next three years? On what factors does your forecast depend? 3. What should Roger's introductory strategy and budget be?
Mon Dec 2	Topic: Managing Development: Different Contexts
Case:	Living on Internet Time: Product Development at Netscape, Microsoft, Yahoo!, and NetDynamics 9-697-052
Questions	1. What are the similarities and differences between the four approaches to product development? What drives these differences? 2. A friend has come up with a great video game idea. The game is aimed at high school and college students and allows them to play against opponents on the Internet. The software would allow them to build cities in cyberspace, trade with each other, wage war, and engage in a variety of other activities. Your friend has experience in writing game software, but would like you to design a process for taking the idea to market. Assume that you have funding to hire enough (12 or so) software developers, and any equipment you might reasonably need. You should specify the sequence of project phases, gates, and milestones, as well as any specific methodologies (user needs, contextual analysis, etc.) that you think you should use. Your process design should define the sequence of major activities. This should be sketched on a piece of paper.
Wed Dec 4	Discussion: Summary
Finals Week	Design Fair Wed Dec 12, 8:00-10:00AM or Thurs Dec 13, 10:30AM – 12:30PM