USC MKT 530: D.

BADAME
SUMMER 2014

UNIVERSITY OF SOUTHERN CALIFORNIA

MARSHALL SCHOOL OF BUSINESS
MKT 530 – NEW PRODUCT DEVELOPMENT
SUMMER 2014
RESIDENTIAL – WEDNESDAY– JKP 110 – 6:00 P.M. – 10:00 P.M. OR
ONLINE – SATURDAY MARSHALL TALK SESSIONS – 10:00 A.M. – 12:00 P.M.
____________________________________________________________________________________________
Professor: Dr. Diane M. Badame
Telephone: (213) 740-5053
Office: Bridge Hall, Room 307B
E-Mail: badame@marshall.usc.edu
Office Hours: By appointment
____________________________________________________________________________________________

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 into a cohesive, integrated plan for any new
product or service.
This course assumes that you have taken the core marketing course in the MBA program. If you have not taken a
graduate level marketing management class or do not have relevant experience, please discuss with the professor.

LEARNING OUTCOMES

Students will be able to:

1. Discover the importance of innovation and why it should be a key strategic initiative in an organization.
2. Learn the language of new product development (NPD).
3. Apply new product and service development constructs to business problems, exercises and cases.
4. Determine why new products fail or succeed and illustrate examples of each.
5. Enhance critical thinking, problem-solving, organizational, creative and analytical skills in the context of
new product development.
6. Develop a New Product Development (NPD) Plan for a new product or service concept by applying the
New Product Development (NPD) Framework.

REQUIRED READINGS
 Crawford, Merle and Di Benedetto, Anthony (2011). New Products Management (10th Edition). McGraw-
Hill/Irwin.
 Course Reader of cases and exercise.

RECOMMENDED OR ADDITIONAL READINGS

 Ulrich, Karl and Eppinger, Steven (2012). Product Design and Development (5th Edition). McGraw-Hill
Irwin.

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SUMMER 2014

 Bettencourt, Lance (2010) Service Innovation: How to Go from Customer Needs to Breakthrough Services.
McGraw-Hill Irwin.
GRADE BREAKDOWN AND EXPECTATIONS
The following 1000 point grading system will be utilized for the course:

TOPIC PERCENTAGE POINTS DUE DATE

OF GRADE (SEE COURSE SCHEDULE)
CLASS PARTICIPATION 10% 100 5/28 – 8/9
CASE WRITE UP 20% 200 6/11 – 8/2
NEW PRODUCT SUCCESS OR FAILURE ASSIGNMENT 10% 100 6/11 – 8/2
MID-TERM EXAM 25% 250 7/9 RES. AND 7/12 ONLINE
FINAL NPD PROJECT REPORT 35% 350 8/6 RES. AND 8/9 ONLINE
TOTAL 100% 1000

A detailed course schedule is shown on page 6. The Department of Marketing follows the grading policy of the
Graduate School of Business. For this course, the grading standard is an average of 3.5.

COURSE FORMAT
Students are expected to be prepared for all sessions and have completed the assignments and readings before each
class. Exercises, short and longer cases will be utilized to apply various aspects of new product development to
real world settings. Due to the condensed nature of this course in 11 weeks, it is critically important to keep up
with the assignments.

ATTENDANCE
Students are expected to attend all class sessions. Class discussions are an integral part of the learning experience
throughout this course. It follows that the frequency and quality of your participation in and contribution to these
discussions will have a direct and meaningful relationship to the value as well as the short and the long term
benefits you will derive from the course. Please notify me in advance if you are unable to attend any class
whenever possible.

LAPTOP OR OTHER COMMUNICATION DEVICES POLICY

To maximize the richness of the learning experience, eliminate distractions and to demonstrate the utmost respect
for all, you are expected to refrain from using laptops, smart phones, iPads or any other electronic devices during
class.

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 that includes case analysis 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. As an added benefit, class participation is a tool for means of
preparing you for this dimension of your career.
Cold calling will take place to encourage active participation and gain multiple perspectives and points of view to
achieve the level of richness of the learning experience each student expects from this course.
The grading of 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, I will address the following
questions:
 Does the participant attend class regularly arrive on time? Is the participant prepared?
 Do comments add to an understanding of the topic of discussion? Does the participant go beyond simple
repetition of case facts to include thoughtful and insightful analyses and conclusions?

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CLASS PARTICIPATION (CONTINUED)

 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 a logical, concise and convincing
manner?
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 attend class and provide some proactive, positive contribution to class
discussions. A 0 rating will be awarded to those students who are absent or provide no or negative contributions.
During class sessions, I assume the responsibility of a facilitator with the purpose of encouraging discussion to
obtain all views and, secondly, to help pull together the prevailing views. Note that the direction and quality of the
discussion is the collective responsibility of the group, not my sole responsibility.
Ten (10) percent of the course grade or 100 out of 1,000 points will be allocated to class participation. Missing
class sessions will negatively impact your final grade. One missed session will reduce your final grade by 1.1
percentage points. There will be one free pass for this course in which the absence will not be counted against the
final grade.

CASE STUDIES
Cases are viewed not only as vehicles for developing analytical skills and for applying concepts and frameworks
introduced in readings and lectures but also as examples of the issues and challenges that are common to real world
settings. Some cases demonstrate successful implementation of objectives and strategies while others illustrate
those that failed. Oftentimes, we learn at least as much from failures as we do from successes.
The most relevant and recent case studies have been selected for each session. It should be noted, however, that
while those that reflect the current business environment frequently provide the best illustration, cases on most
topics presented in this course have not been published within the past year or so. As a result, a selection of the
best and most recent cases available will be utilized to maximize the learning outcomes of each class session.
As for exhibits utilized during case discussions, copyright laws typically prohibit the sharing of most materials that
support each case discussion. In those cases when such is not the case, I will make that material available to you
by request.
In preparing for cases prior to class, I recommend reading a case more than once. The first reading should give you
a sense of what the case is about and the types of data contained in the case. In subsequent readings, it is
recommended that you underline or otherwise mark up each case to easily identify important points relating to the
business and the situation. I encourage you to devote equal attention to the exhibits in the case as they contain
information that will be most useful in the development of a comprehensive analysis of each case.
Learning from a case is typically achieved in two steps. The first involves pre-class preparation that encompasses
the efforts to identify the problems and issues presented in the case, to select and apply the appropriate forms of
analysis (e.g., quantitative, logic, experience, conceptual) and, finally, to develop effective, comprehensive
solutions and recommendations, all of which you will be expected to complete before coming to class.
Additionally, you will be expected to substantiate your conclusions based on your analyses of the assigned case
during class discussions. Marketing strategies should be specific and support the overall objectives and
recommendations and incorporate relevant material presented in class assignments and/or case exhibits. The
second step is taken in the classroom during the discussion of the case as a variety of methodologies applicable to a
successful diagnosis, analysis, and solution to business issues, which at times will differ from yours, are introduced
and found to be equally appropriate solutions. Understanding others’ positions, learning from them and countering
and/or enhancing them with your own are a critical part of the learning experience. To do so, you must listen to
each other as well as speak. Only when you have defended your position can you fully understand its strengths and
weaknesses. There is rarely a single right answer for a case, just as there is rarely a single right marketing decision
in actual practice.

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The facts and research results must be analyzed, noted and subsequently followed by the application of sound logic
and reasoning to fully evaluate the manner in which the information provided affects the points in the case and will
influence your conclusions and recommendations. You are also encouraged to expand your analysis beyond the

CASE STUDIES (CONTINUED)

data in the case to formulate recommendations that, with the benefit of your additional analysis, will more
effectively address and/or resolve the business issues.
A typical request I will make during case discussions is to ask for recommendations. It is important to know that
the case method of learning does not typically provide the only answers. In most case discussions, there will not be
a single conclusion to be reached but, rather by design, several viable solutions that may be developed and
supported equally well.
While it is important to identify the purpose of the case in general terms, the most critical learning outcomes to be
derived from each case are to acquire the ability to develop solid analytical skills, gain an understanding of the
marketing principles that apply to the situation presented, evaluate the effectiveness of various alternatives in given
applications and to present well developed and solidly-grounded recommendations that are underpinned by strong
supporting evidence.

As an aside as well as a word of advice, information you may gather regarding the strategies actually selected by
the firms in the cases should be incorporated into your recommendations with caution. Firms make many strategic
mistakes and strategies they actually pursue are often inferior to alternative strategies they could have chosen.

CASE ASSIGNMENT
A case will be assigned to each student between June 11th and August 2nd which is worth 20 percent of the grade or
200 out of 1,000 points. You will be asked to address to utilize the critical thinking framework (USC-CT) in your
write-up. Please see pages 7 – 10 for details.

NEW PRODUCT SUCCESS OR FAILURE ASSIGNMENT

To better understand the end results of new product launches, each of you will be asked to write-up a new product
success or failure on the product or service of your choice for a specific class session. This assignment is worth 20
percent of the total course grade or 100 out of 1,000 points. Late reports will be penalized ten (10) percent for
missing the deadline and ten (10) percent for each day thereafter. Please see page 11 for details of the assignment.

MID-TERM EXAM
A mid-term exam will be administered in class on Wednesday, July 9th or Saturday, July 12th. You will be asked to
read in advance The CW: Launching a Television Network case and be prepared to address key questions
pertaining to new product development during the exam. More details on the content and format will be discussed
in class. This exam represents 25 percent of the final grade or 250 out of 1,000 points.

NEW PRODUCT DEVELOPMENT PROJECT

You will be asked to form teams of 4 – 5 students to develop a new product or service using the New Product
Development (NPD) framework utilized throughout the course. Please see pages 12 – 15 for details. Please submit
your topics and team members to me by Wednesday, June 4th or Saturday, June 7th by email. This assignment is
worth 35 percent of the total course grade or 350 out of 1,000 points. Late reports will be penalized ten (10)
percent for missing the deadline and ten (10) percent for each day thereafter.
The grade for this assignment may be influenced by each team member’s contributions. If you believe
participation was disproportionate among team members, please complete the peer evaluation form on page 16 and
submit it at the time the assignment is due. All other team members will also be asked to complete the form.

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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 to achieve your personal objectives for this course.

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 MKT 530 – NEW PRODUCT DEVELOPMENT
COURSE SCHEDULE
SUMMER 2014

SESSION DATE TOPIC ASSIGNMENTS

1 5/28 INTRODUCTION AND THE Chapter 1 – New Products Management textbook
Residential, STRATEGIC ELEMENTS OF Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating
5/31 Online PRODUCT DEVELOPMENT Insights Case and Innovation at Timberland: Thinking Outside the Shoebox Case

2 6/4 THE NEW PRODUCTS Chapters 2 – 3

Residential, PROCESS AND Tastykake Sensables Case, pp. 55 – 57
6/7 Online OPPORTUNITY The New Product Strategy at Kellogg Case, pp. 86 – 87
IDENTIFICATION AND Colgate Max Fresh: Global Brand Roll-out Case
SELECTION NPD Project Topics and Teams Due

3 6/11 CREATIVITY AND THE Chapters 4 – 5

Residential, PRODUCT CONCEPT AND Aquafresh White Trays Case, pp. 122 – 124
6/14 Online FINDING AND SOLVING Campbell’s IQ Meals Case, pp. 147 – 148
CUSTOMERS’ PROBLEMS Positioning the Tata Nano (A) Case
First Case and New Product Success or Failure Assignments Due

4 6/18 ANALYTICAL ATTRIBUTE Chapters 6 – 8

Residential, APPROACHES AND THE Dell Computers (A) and (B) Cases, pp. 165 – 166, 236
6/21 Online CONCEPT EVALUATION Chipotle Mexican Grill Case, pp. 206 – 207
SYSTEM Product Innovation at Aguas Danone Case

5 6/25 CONCEPT TESTING AND THE Chapters 9 – 10

Residential, FULL SCREEN Concept Development Corporation Case, pp. 207 – 208
6/28 Online iPhone Exercise (in Course Reader)
Montreaux Chocolate USA: Are Americans Ready for Healthy Dark Chocolate?
Case

6 7/2 DESIGN Chapter 13

Residential. The Mini Case, pp. 331 – 332
7/5 Online Gillette Mach3 Case, pp. 335 – 337
Design Thinking and Innovation at Apple Case
Design Strategy at Samsung Electronics: Becoming a Top-Tier Company Case

7 7/9 and SALES FORECASTING AND Chapters 11 – 12

7/12 FINANCIAL ANALYSIS AND Cradle-to-Cradle Design at Herman Miller: Moving Toward Environmental
Residential THE PRODUCT PROTOCOL Sustainability Case
Mid-Term Exam – The CW: Launching a Television Network Case with In-
Class Exam

8 7/16 DEVELOPMENT TEAM Chapters 14 – 15

Residential, MANAGEMENT AND Unsafe for Children: Mattel’s Toy Recalls and Supply Chain Management Case
7/19 Online PRODUCT USE TESTING Genzyme: The Renvela Launch Decision Case

9 7/23 LAUNCH Chapters 16 – 18

Residential, Wii Case, pp. 425 – 426
7/26 Online Hulu Case, pp. 445 – 447
Alpen Bank: Launching the Credit Card in Romania Case

10 7/30 LAUNCH MANAGEMENT, Chapters 19 – 20

Residential, PUBLIC POLICY ISSUES Clorox Green Works Case, pp. 526 – 528
8/2 Online AND COURSE REVIEW Cisco Systems: Launching the ASR 1000 Series Router Using Social Media
Marketing Case
Reversing the AMD Fusion Launch Case
Last Case and New Product Success or Failure Assignments Due

11 8/6 FINAL PROJECT NPD Project Presentations and Projects Due

Residential, PRESENTATIONS
8/9 Online
 CASE ANALYSIS USING CRITICAL THINKING – THE USC-CT FRAMEWORK

USC-CT: This critical thinking framework focuses on applying concepts, theories and formulas to advanced problem
solving and will be used for all case assignments. Critical thinking is one of the most desirable skills that employers
of MBA’s are seeking.

For each case analysis, please provide the following:

1. The case analysis using the USC-CT Framework.
2. The risks associated with each recommendation.
3. A brief summary of the case using bullet points.
4. A list of new product development questions you can anticipate being asked if you held a
marketing position in the case firm or were interviewing for a marketing position that would
require the use of new product development strategies that were covered in this case study.
5. Identify the lessons you learned from the assignment.

THE FIVE-STEP USC-CT FRAMEWORK AND PROBING QUESTIONS TO SUPPORT EACH STEP

U – Uncover the potential problems, challenges and opportunities vis-à-vis organizational goals.
Uncover the various potential problems, challenges and opportunities that should be explored in the
context of the case or business issue.
Use probes to further identify, define or clarify issues which could include, among other considerations,
the following:
 What is the nature of problems, challenges and opportunities and how does that relate to the
overall organizational goal/mission?
 Who are the stakeholders? Are there differing views on problems, challenges and opportunities?
 How did this situation arise? Is this a finite event or systemic? Root cause versus symptoms?
Interrelationship?
 Why is this important? What’s at stake? (e.g., Revenue? Brand image? Goals?)
 Where does this issue reside? (e.g., Marketing? Sales? Accounting? Finance? Combination?)
 When did the situation occur, when must it be resolved, is there a window of opportunity?

S – Select and prioritize the most critical problems, challenges, and/or opportunities.
Select the three to five most critical problems, challenges and/or opportunities. Prioritize and explain
rationale.
Use probes to aid in selecting and prioritizing the problems/challenges/opportunities which could include,
among other considerations, the following:
 Magnitude: Have you identified/evaluated how big each problem/challenge is vis-à-vis the goal?
 Quantifiable: Can we quantify their impact through some metric? What data would help to
quantify this impact? Have you assessed data needs, sought info, and applied the most
appropriate analytical method?

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  Non-Quantifiable: Are there other non-quantifiable issues we need to consider (e.g. gains and
losses in brand image, PR, stakeholder psychological commitment)?
 Interrelationships: Are these issues potentially interrelated? Might one (e.g. today's promotions)
impact another one (e.g. tomorrow's brand image)? Cause and effect?

C – Create a list of potential solutions.

Create three to five potential solutions for each of the identified problems, challenges and/or opportunities.
Look for out-of-the-box solutions that provide unique opportunities for the firm.
Use probes to assist in the development of potential solutions which could include, among other
considerations, the following:
 Gather Solutions: What solutions might different stakeholder groups see as viable? What makes
them viable from this stakeholder's perspective? Is this a marketing, accounting, finance solution
or elsewhere? Combination of solutions? Don’t overlook a simple solution.
 Look for Unique Solutions: Knowing what's really motivating stakeholders, are there unique
solutions that haven't been considered?
 Foster Creative Thinking: What are ways to think creatively that will lead to unique value
propositions that are differentiable and not easily replicable? Each discipline has its own creative
tool box. Probes could include the following.
- Be Open-Ended: Continue to ask “what’s another option?” to generate alternatives.
- Change View: View issues from many perspectives (e.g. marketing, finance).
- Build Metaphors and Analogies: Select a metaphor, analogy or precedent. How did a
company in another industry solve this? What would Disney or Google do?
- Imagine a Future: List consequences of decisions and best/worst case scenarios.
- Play Competition: If you were the competition, how would you attack you?
- Rearrange: What if you substituted, modified, adapted, added/dropped elements?
- Eliminate Constraints: If resources and time were not issues, what would you do?
- Find Connections: Connect unrelated concepts (e.g. Zero calorie candy).
- Create Headlines: What action will make positive headlines? Negative headlines?
- Expand Solutions: What’s the practical, outlandish, trendy, non-trendy solution?
- Change Analysis: What’s another way/method/framework to analyze the data?
 Interrelationships. Are some solutions interrelated? Are some more viable in the short vs. long-
term?

C- Choose the solution(s) that has the potential to be most effective.

Choose the solutions for each problem, challenge and/or opportunity that have the potential to be the most
effective and provide the rationale that support those conclusions.
Use probes to provide more detail to the selected solution which could include, among other
considerations, the following:
 Magnitude: What is the potential impact of each solution?
 Quantifiable: What tangible gain/loss does each solution represents in revenue, profit, other? Have
you assessed data needs, sought info, and applied the most appropriate analytical method?
 Non-Quantifiable: Do solutions have intangible gains/losses or consequences? (e.g. Image).
 Resources: What resources might each solution require? (e.g. money, time, people).
 Pros/Cons: What are the pros/cons for each in the short vs. long term? Are they interrelated? How
would you handle a rebuttal?

T- Translate the solution into an effective implementation plan.

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Translate the solutions into an effective implementation plan identifying key steps that are required to
implement the solution to each problem, challenge and/or opportunity.
Use probes to address key steps that ensure success of each solution which could include, among other
considerations, the following:
 ID Steps: Have you identified the key steps toward implementing the solution(s)?
 ID Hurdles: Have you identified potential implementation hurdles (e.g. lack resources) and a
remedy?
 Unintended Consequences: Have you identified potential unexpected events that may result?
What’s the potential domino effect? Are you prepared for them?
 Final Check: Have you conducted a final check/critique of problem/solutions/implementation,
looking for logic flaws? Have you considered a third party review?

Questions to Consider Before Completing Case Analysis

1. Did you think of all of the potential problems and solutions to this case study in a more holistic
way?
2. Did you discover issues that weren’t obvious and not necessarily identified in the case?
3. What criteria did you use to prioritize the five most critical problems/challenges/opportunities?
4. How did you develop creative solutions?
5. If you were the marketing director for this company, what information is missing and what
outside information would you use to more effectively analyze the case?
6. What additional analytical directions/thoughts/methods could be used?
7. Did you develop more creative solutions by being forced to develop three to five alternatives for
each critical problem/challenge/opportunity?
8. What criteria did you use to assess which alternative solution would be most effective? Did you
think about the pros and cons of each?

INDIVIDUAL CASE ASSIGNMENT

Due on the Date the Case is Discussed in Class –Wednesday, June 11th – Saturday, August 2nd

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Cases have been assigned to apply integrated new product development and branding concepts to real world business
situations and enhance your analysis, critical thinking and problem-solving skills. The learning from a case comes in
two ways. The first involves pre-class preparation that encompasses the ability to diagnose case problems and issues,
to select and apply appropriate forms of analysis (e.g., quantitative, logic, experience, conceptual) and to make
decisions about case solutions. Each student should make a decision about what should be done before coming to
class and be able to document that solution on the basis of analysis.
The second part of learning from cases comes from realizing that other people do not always diagnose, analyze, and
solve problems the way you do. Understanding others’ positions, learning from them and countering them with your
own are a critical part of the learning experience. To do so, you must listen to each other as well as talk in class.
Only when you have tried to defend your position can you fully understand its strengths and weaknesses. There is
rarely a single right answer for a case, just as there is rarely a single right marketing decision in actual practice.
Analysis is more than noting that certain facts pertain to one of the central points around which the case is being
analyzed. The facts must be noted, but then reasoning must be applied to determine how and in what way these facts
affect the points in the case.

Information regarding the strategies actually selected by the firms in the cases should be incorporated with caution.
Firms make strategic mistakes when ineffective strategies are executed that are inferior to alternative strategies that
they could have chosen.

Individual Case Write-up Assignment

You will be assigned to prepare a case analysis write-up on one of the following seven cases that will be covered
between Wednesday, June 11th and August 2nd:
 Positioning the Tata Nano (A) – Due 6/11 or 6/14
 Product Innovation at Aguas Danone – Due 6/18 or 6/21
 Montreaux Chocolate USA: Are Americans Ready for Healthy Dark Chocolate? – Due 6/25 or 6/28
 Design Strategy at Samsung Electronics: Becoming a Top-Tier Company – Due 7/2 or 7/5
 Cradle-to-Cradle Design at Herman Miller: Moving Toward Environmental Sustainability – Due 7/9 or 7/12
 Genzyme: The Renvela Launch Decision – Due 7/16 or 7/19
 Alpen Bank: Launching the Credit Card in Romania – Due 7/23 or 7/26
 Reversing the AMD Fusion Launch – Due 7/30 or 8/2
Please utilize the USC-CT Framework and use the case questions that can be found in the Course Reader the page
before the case or in the PowerPoint slides for the evening the case will be discussed as a guide when writing up the
case assignment. The length of the paper is to be no longer than 12 single-spaced pages, excluding exhibits. This
write-up will be 20 percent of the grade or 200 out of 1.000 points. The case is to be handed in at the end of the class
in which the case is discussed. Late papers will not be accepted.

Grading
The following criteria will be utilized to grade the case analyses:
1. U – Uncovered the potential problems, challenges and /or opportunities
2. S – Selected and prioritized the most important problems, challenges and/or opportunities, including rationale
3. C – Created a multitude of potential solutions
4. C – Chose the most effective solution(s), including rationale for selection
5. T – Translated into an effective implementation plan
6. Risks associated with recommendations
7. Case summary
8. New product development questions

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 NEW PRODUCT SUCCESS OR FAILURE INDIVIDUAL ASSIGNMENT
Due June 11th – August 2nd

Project Overview
The failure rate for new products has hovered around 30 – 80 percent for several decades. This suggests the value of
studying this enduring and costly marketing problem more intensively. To accomplish this, you are asked to select a
product/brand that entered the marketplace (US or global) within the past eight years, 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.
Alternatively, you may select a new product that has been successful. “Success” is defined broadly and includes
situations in which the product has (1) exceeded expectations, (2) achieved significantly above its pre-launch sales
forecasts or (3) gained a great deal of positive public relations. You should not select situations that are covered in
cases for this course.

Evaluation Criteria
1. Target market and need for product or service
2. Situation analysis – what went right or wrong regarding the industry/market, competition, company
capabilities, positioning, and/or the 4 P’s
3. Metrics of success
4. Marketing implications and recommendations

Project Report Preparation

Using the evaluation criteria listed above, identify the primary target market and the need that it met or was intended
to meet, analyze the situation to determine what went right or wrong, discuss metrics that determined its failure or
success and then state your marketing implications and recommendations on what you would have done differently to
have made the product successful or more successful.
You will be assigned a given date to complete this assignment. You may be asked to briefly discuss your findings in
class on the night the paper is due. Your written analysis should be approximately three single-spaced pages in
length, excluding any supportive materials. This assignment is worth 10 percent of the course grade or 100 points out
of 1,000.

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 NEW PRODUCT DEVELOPMENT (NPD) PROJECT
Presentation and Project Due on August 6th or August 9th

Project Overview
This project is designed to enhance both students’ learning and professional market value through direct, hands-on
experience with the key managerial activities that are involved in moving a new product, service, or other marketing
innovation from its early inception through the development stages that help refine and optimize it. Students work
with a variety of analytic and creative tools at each NPD development stage. The output of the process is a new
product planning document that summarizes the nature and rationale for the project, alternative product or service
concepts, consumers’ reactions to each concept, the subsequent marketing strategy and tactics and a self-evaluation of
the strategy’s overall soundness. You will work in project teams of 4 – 5 individuals. Initially project teams will
likely consider several, often quite different NPD projects. To make your final selection, be opportunistic, and
consider factors such as the availability of relevant secondary information, your access to primary information
sources (e.g., industry players and experts), your ability to locate prospective customers and obtain feedback from
them, time-frame implementation issues and your personal interest in a particular product or service category or
brand. Topics and team members are due on Wednesday, June 4th which can be emailed or handed in to me in class.

NPD Project Report

The final NPD written report should include all the following elements to total approximately 15 – 20 pages,
excluding exhibits. All reports should begin with a Table of Contents and use footnotes at the bottom of each page
using APA format. Please see NPD Project Report Outline on pages 14 – 15 for details.

1. Executive Summary
This summarizes your NPD “story” and highlights the key aspects of your marketing strategy and
recommendations

2. NPD Opportunity Identification and Situation Analysis

This describes your basic innovation idea in a product innovation charter (PIC) and what industry,
competitive, consumer and other factors support its potential for success. This section presents an
abbreviated 3-C and 4-P analysis of the product or service category you seek to enter as well as a value
chain and expanded SWOT to include strategies to maximize strengths and opportunities and mitigate
weaknesses and threats.

3. Concept Generation
Once your team has selected a general NPD idea to pursue, it is highly likely that various alternative
possibilities exist with respect to different features, benefits, positioning, and customer target. Use your own
logic to identify the most important alternatives, then represent these variations on your basic concept
through the generation of between 3 and 5 written concepts. Briefly explain how you selected your 3 – 5
concept finalists, and include the written concepts as exhibits in your report.

4. Concept/Project Evaluation and Testing

Each student team member needs to interview 5 prospective customers to obtain their reactions to the
alternative concepts. This report section explains your research methodology, including questionnaire, and
describes results including consumers’ overall reactions, specific likes and dislikes, purchase intentions and
other metrics.

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 NEW PRODUCT DEVELOPMENT (NPD) PROJECT (CONTINUED)

5. Development and Strategy Soundness Evaluation

This section presents your critical evaluation of the validity of your plan’s underlying assumptions,
including a perceptual map, and a feasibility analysis that identifies must criteria and uses profile sheets and
scoring models to assess its vulnerabilities, the risk that is involved and its prospects for success and for
producing a sustainable advantage.

6. Recommendations
This section includes all recommendations for the project including target markets, revenue, profitability,
market share and marketing mix objectives, marketing strategies, a profit-and-loss statement,
implementation plan and contingency plans if objectives are not met or exceeded.

Evaluation Criteria
1. Analysis and assessment of the NPD opportunity
2. Quality and analysis of the alternative NDP concepts
3. Quality and comprehensiveness of the NDP concept development and evaluation research
4. Comprehensiveness and quality of the NPD strategy soundness evaluation
5. Comprehensiveness, quality and soundness of the recommendations
Your team will present your findings during a presentation on Wednesday, August 6th or Saturday, August 9th. It is
strongly encouraged to develop prototypes, if feasible, to be included in your presentation. Details will be discussed
in class. This assignment is worth 35 percent of the course grade or 350 out of 1,000 points.

Peer Evaluations
If team contributions were not equal while preparing and presenting the assignment, please complete the project peer
evaluation form on page 16. If one form is handed in at the end of the class in which the presentation is given, all
other team members will be asked to complete the form. Unequal contributions may affect the individual grade of
this assignment. If no peer evaluation forms are completed, it will be assumed that contributions were equal among
team members.
Please submit in advance hard and soft copies of the PowerPoint presentation. Hand in peer evaluation forms the day
the presentation is given if deemed appropriate. The NDP Project write-up is due during the last class session on
Wednesday, August 6th or Saturday, August 9th.

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 NPD PROJECT REPORT OUTLINE

1. Executive Summary - A brief synopsis (preferably one page) of the NDP Project that provides highlights of the
situation analysis, target markets, objectives, strategies, and financial expectations.
2. NDP Opportunity Identification and Situation Analysis – The product innovation charter (PIC) and relevant
background data on the industry, competition, customers, the company, value chain and the resulting expanded
SWOT analysis that supports the NDP opportunity
 Product Innovation Charter (PIC)
 Background
 Focus
 Goals/Objectives
 Guidelines
 Industry/Market
 Industry/Market size
 Trends
 Technological changes
 Legal/Regulatory issues
 Competition
 Major players in the marketplace
 Competitive strategies
 Market shares (if available)
 Value Chain
ˉ Partners who are included in the value chain (i.e., suppliers, distributors, retailers, etc.)
ˉ Groups that have some influence on the customer experience (media, government, activist
organizations, etc.)
 Customer
 Customer needs/perceptions
 Current primary and secondary target markets
 Trends
 Company
 Description, core competencies of the firm and current revenues and profits
 Positioning
 Marketing mix for applicable products and/or services
1. Product/Service
2. Place – distribution
3. Promotion – integrated marketing communications
4. Pricing
 Expanded SWOT
 Strengths
 Weaknesses
 Opportunities
 Threats
 Strategies to maximize strengths and opportunities
 Strategies to mitigate weaknesses and threats

NPD PROJECT REPORT OUTLINE (CONTINUED)

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© Badame, 2014. All rights reserved.
3. Concept Generation
 Top 3 – 5 Written Concepts (shown in Exhibits)
ˉ Rationale for selection
ˉ Written concepts for primary target market, features, benefits and positioning

4. Concept/Project Evaluation and Testing – Results of your research on alternative concepts.

 Research Methodology
 Summary of Results
ˉ Overall reactions
ˉ Likes and dislikes
ˉ Purchase intentions
ˉ Other metrics

5. Development and Strategy Soundness Evaluation – Assessment of the soundness and validity of the
underlying assumptions of the recommendations.
 Validity of Underlying Assumptions
ˉ Perceptual map
 Feasibility Analysis
ˉ Identification of must meet criteria
ˉ Use of profile sheets to justify recommendations
ˉ Use of scoring models

6. Recommendations - Desired accomplishments for 2015.

 Target Markets – Clearly and specifically define the primary and secondary target markets in terms of
demographics, geography, psychographics, etc.
 Objectives – Overall and specific objectives for the 4 P’s.
 Revenue
 Profitability
 Market share
 Product
 Place – distribution
 Price
 Promotion
 Marketing Strategies – Defined strategies on how objectives will be accomplished.
1. Product/Service to include positioning
2. Place
3. Promotion
4. Pricing
 Projected Profit-and-Loss Statement – Detailed P&L statement for 2015, including assumptions and
at least two previous years of financials if available with best case, worst case and most likely scenarios.
 Implementation Plan – A pert chart outlining the timeline and persons responsible for recommended
tactics for plan period.
 Contingency Plan
 Measurements and processes to insure that the plan is monitored and evaluated.
 Alternative strategies to be implemented if objectives are not met or exceeded.

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© Badame, 2014. All rights reserved.
 NEW PRODUCT DEVELOPMENT PROJECT PEER EVALUATION

Please complete the following project peer evaluation form for the NDP Project assignment. Divide 100 points
among your team members in accordance with their contribution to the team project. Include yourself in the
distribution of points. For example, if your team had four team members and each member contributed equally to the
project, the team members would each earn 25 points. If your team members did not contribute equally, then give
each person the number of points that you feel fairly represents each member’s contribution to the completion of the
assignment.

Team: __________________________________________________________________________

NDP Project Topic: ____________________________________________________________

Your Name: _____________________________________________________________________

Names of Team Members Points

Total 100

Comments: Please feel free to comment on the contributions of individual team members to the team project.

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