NYU Stern School of Business

Undergraduate College

MKTG-UB.0060.001 (C55.0060): NEW PRODUCT DEVELOPMENT

Fall 2011

Instructor Details

Farley, Michele

mfarley@stern.nyu.edu

203 226 5096

Available after class and by appointment

TBD

 

Course Meetings

MW, 11:00am to 12:15pm

KMC 4-60


Final Exam:

Schedule exceptions
    Class will not meet on:
    Class will meet on:

 

Course Description and Learning Goals

  INTRODUCTION:

New products and services are vital to all companies. Maximizing the success of new products and services can drive growth and shareholder value, lead to significant competitive advantage and leapfrog a company ahead of its competitors. However, innovation is risky and most new products fail in the marketplace. Often, failure is due to an ineffective process.  Thus, expertise in the design and marketing of new products is a critical skill for all managers, inside and outside of the marketing department. In this course, we first focus on the tools and techniques associated with analyzing market opportunities and then focus on designing, testing, and introducing new products and services. Both quantitative and qualitative approaches are covered. In particular, the course covers the new product development process, strategic opportunity identification, how to generate new product concepts and ideas, mapping customer perceptions, segmentation, product positioning, forecasting market demand, product design, market entry strategies, and testing. It emphasizes how to lead the organization in the process, incorporate consumers, customers and competitors into all of these aspects of new product development.

COURSE OBJECTIVES:

This course is designed to familiarize students with the principles and practices in the development, design, marketing and introduction of new products and services.  Specific objectives are:

  1. To understand the new product process.
  2. To learn how to integrate the customer and end-consumer into this process.
  3. To learn and apply the concepts and tools necessary through case examples and assignments.
  4. To actually use the new product development process by conceiving your own new product or service and an introductory launch plan.
  5. To participate in group work sessions and teams to become acquainted with the importance of teamwork and collaboration that is critical to new product success.

 

COURSE DESCRIPTION:

This course will introduce the new product development process and cover the three main areas of focus:

I.      Discovery - opportunity identification

II.     Design - concept and product design, development and evaluation

III.    Delivery - innovative approaches to product launch and introduction.

 It will include readings from a required text, relevant articles, illustrative actual examples, guest speakers from industry, and 6 case studies.

 

The course approach uses a combination of lectures, cases, group/team project, and class discussion.  Classes will be interactive and collaborative.  

 

Course Outline

     COURSE SCHEDULE:

This course schedule is tentative and may be revised due to availability of guest speakers.

New Product Development, Design & Marketing  - C55.0060.01 - Spring 2011

Date

Topic

Assignment

  September 6

Introduction to course

What is New Product Development and Why is it so important?


September 12

The New Product Development Process Principles of Success

Chapters 1 & 2

Form Project Teams & select project

I. Discovery - Opportunity Identification

September 14

Strategic Planning and Opportunity Identification for new products

Chapter 3

Project Team - proposals due

September 19

Opportunity Identification

Case discussion: Innovation at 3M

Prepare 3M case


September 21

Guest speaker

Project Team - assess market potential

September 26

Discovering Insights

Articles: P&G – New Model for Innovation

Read P&G article

September 28

Guest Speaker

Case: Dove: Evolution of a Brand

Prepare Dove case

Project Team - Insights

October 3

Framing Opportunity Areas

Role of Brand Strategy & Positioning

Chapter 16

October 5

Project Team presentations – Insights/Opportunity Areas

Project Team  - presentations

II.  Design - Concept and Product Design and Development

October 10

Columbus Day

 

October 12

Concept and Idea generation

Chapters 4 & 5

October 17

 

Idea generation and Innovation

Video: Ideo new product innovation process

Project Team - idea generation

October 19

Idea generation session

 

October 24

 

Concept development

Product and positioning

 

Chapter 9

October 26

                                   Guest Speaker

                        Concept evaluation techniques

Chapter 10

October 31

Project Team presentations – Concept Boards

Project Team - presentations

November 2

Product Design

Case: Apple – Design Thinking & Innovation

Chapter 13

Prepare Apple case

November 7

Guest speaker

Project Team – qualitative evaluation /refine concepts

November 9

Market Testing and forecasting

Chapter 11 & Chapter 18

IV.  Delivery - New Product Launch and Market Entry

November 14

Preparing a Launch Plan

Case: Red Bull/Judo in Action

Prepare Red Bull case

  November 16

 

Pricing, Packaging

Case:  Zythromax Z-Pac

Prepare Zythromax case

November 21

 

Integrated Marketing

Customer and Channel Marketing

Chapter 17

 

Thanksgiving Holiday

 


November 28

Guest speaker

Project Team – prepare launch plan

November 30

Innovation Marketing

Case: Virgin Mobile

Prepare Virgin case

December 5

Guest Speaker

Project Team – prepare new product presentations

December 7

NPD management - Inspiring the organization

Course wrap-up

Chapter 14

Project Team – prepare new product presentations

December 12

Project Team New Product Presentations

Project Team - presentationsDecember

December 14

Project Team New Product Presentations

Final Team Project report due

 

 

  

 

Required Course Materials

  Required materials:

During the semester we will discuss relevant articles from the Wall Street Journal, New York Times, Wired, Fast Company, Advertising Age and other relevant publications.  These articles will relate current events to the concepts taught in class.  I encourage you to bring articles also. 

 

Assessment Components

  COURSE GRADE:

Your course grade is based on the following:

 

  1. Class participation                                                 25%
  2. Case Exercises (individual)                                 30%
  3. Team New Product Project:                                 45%

                                    Presentations 30%             

    Project Paper 15% 

           

All students are expected to participate fully in both individual and group activities.  The class will contribute to evaluation of the group presentations, and your team members will evaluate your participation in group project activities.

 

1.  CLASS PARTICIPATION:

There will be plenty of time for you to contribute to class discussions. You’ll be graded based on your attendance and the quality of your contribution, not the amount of time you demand in the discussion. This means coming to class thoroughly familiar with the assigned reading and, therefore, prepared to raise questions, to open discussion, to identify topics of interest in the reading, and actively engage other students in the discussion.

 

2.  CASES:

Cases are descriptions of real-world business situations that provide opportunities to define and develop new product strategies. Case analyses will illustrate how new product concepts and tools apply to these complex situations. Analyzing cases promotes your decision-making capabilities by developing a process of thinking. Typically, there is no single “right” answer to a case, but there are many weak answers resulting from inadequate analysis. Case discussions also provide opportunities to develop your communication skills.

 

The success of our case discussions is largely up to you. Good case discussions involve interactions among students. My role will be to introduce the case, monitor the general direction to address key issues and then facilitate the discussion, rather than direct the discussion.  You collectively must raise relevant issues and discuss.  I will help synthesize the different perspectives and form a framework for decision-making.

 

Case discussions are based solely on the material presented in each case. Please do not collect any post-case information. Our emphasis will be on the decision-making process at the time of the case rather than on the decision outcome. Since managers must constantly make decisions without all the information they desire, being able to make decisions under these circumstances is a critical skill.

 

In preparing cases, assume that you are a marketing manager or outside consultant who has been given responsibility for the situation described in the case. Do not focus solely on a description of the facts in the case, rather focus on the following three factors: statement of the problem(s) or decision(s) to be made; description of your decisions or recommendations; supporting logic and analyses. Your recommendations should be based on quantitative and qualitative analysis of case data. Your analysis should anticipate potential objections to your recommendations and illustrate its superiority over alternative recommendations.

.

Case Assignments – Brief write up (Individual assignment)

There will be 4 required case write-ups (3M, Dove, Judo In Action, Virgin).   They should be a short write-up (1 to 2 pages, single spaced).  For each case, I will identify the 2 or 3 specific issues for you to adress (these will be posted on Blackboard at least a week in advance).  You will be expected to apply the concepts we have learned via readings, lectures and class discussions to prepare the following:

  1. Restate the issue/question
  2. Present your answer with supporting facts/rationale.  A paragraph for each element of the question may be appropriate.
  3. You should provide a brief Executive Summary up front, or a Conclusion at the end to summarize your net impression.

These write-ups should be done individually. You may discuss them with your group members prior to writing them up. But each of you should prepare your own write-ups.

 


3.  TEAM NEW PRODUCT PROJECT:

You will work with a group of 3 to 4 students throughout the semester following the new product development process and applying the concepts learned in the course.  Your objective is to follow the new product development process and prepare a compelling and well thought through New Product Proposal, which you will present to the class as if they are the management of the company and you are asking for their approval and funding. 

 

Key activities and due dates are:

 

Team New Product Project Schedule

9/14

Project Team proposal for new product opportunity (specific outline to be discussed in class).  The professor must approve all projects.

9/15 -10/4

Assess Market Potential and develop Key Insights and identify Opportunities

Prepare presentation

10/5

Project Team presentations of Insights and priority Opportunity Areas in class

10/6 - 10/30

Develop New Product Concepts (3-4)

Prepare presentation

10/31

Project Team presentation of Concepts to class

11/1 - 11/15

Qualitative research to get feedback to concepts

Refine best concepts

11/16 - 12/12

Prepare Launch plan

Prepare final  presentation

12/12

Final Presentations to class

12/14

Final Presentations to class

12/14

Final written Project Presentations due

 

Team New Product Project – Final Presentation:

The New Product Project will consist of a final Presentation of your team activities throughout the course of the semester.   It should be constructed as a presentation to the management of the company to gain approval of funding and the go-ahead for your new product launch.   It should be no more than 15 minutes in length and approximately 15 pages in a PowerPoint presentation plus attachments.

The components of the presentation follow. They will be explained in detail during the class, and I’ll be free after class, and by appointment to discuss any aspects you’d like clarified, or that you’d like my opinion on.

 

Final Presentation - Elements

  1. Assessment of Market Potential - Insights and Opportunities
    1. Summary of key Insights about the industry, competition, & unmet consumer needs, etc
    2. Implications for your new product opportunity
    3. Description of the opportunity area  (this should include a market structure chart with key market segments that shows where your new product will enter the market, the key benefits and attributes consumers of the category value most, and how your product will have a meaningful point of difference vs. its competitors.)
  2. 2-3 concept boards (examples to be provided), that will describe to consumers the key attributes and benefits of the new product idea, as well as the list of questions you asked consumers in your research.
  3. A summary of the reaction of consumers to your idea, what you learned from the research, and how you have refined the concept and adapted the product design as a result.
  4. A complete Product description including
    1. ·      Product benefit and added value relative to competition
    2. ·      Product attribute description, # of items in the line (flavors, colors, models, etc.)
    3. ·      Packaging description 
    4. ·      Naming recommendation & rationale.
  5. A branding recommendation and a brand positioning statement with rationale
  6.  Pricing recommendation relative to competition
  7. A memorable, overarching, integrated marketing message or tagline that describes the brand’s key point of difference & will be communicated in all marketing elements.
  8. A launch plan including marketing ideas that will create awareness & repeat purchase for the new product. Include which types of marketing elements will be most important.
  9. A 3 year sales forecast for the new product
  10. A sensitivity analysis in which you describe the greatest risks and upside opportunities for the new product.

 

FINAL PROJECT DUE DATE: December 14  (Turnitin and hard copies)

 

Group Projects

Guidelines for Group Projects

Business activities involve group effort. Consequently, learning how to work effectively in a group is a critical part of your business education.

Every member is expected to carry an equal share of the group’s workload. As such, it is in your interest to be involved in all aspects of the project. Even if you divide the work rather than work on each piece together, you are still responsible for each part. The group project will be graded as a whole:   its different components will not be graded separately. 

It is recommended that each group establish ground rules early in the process to facilitate your joint work including a problem-solving process for handling conflicts. In the infrequent case where you believe that a group member is not carrying out his or her fair share of work, you are urged not to permit problems to develop to a point where they become serious. If you cannot resolve conflicts internally after your best efforts, they should be brought to my attention and I will work with you to find a resolution.

You will be asked to complete a peer evaluation form to evaluate the contribution of each of your group members (including your own contribution) at the conclusion of each project. If there is consensus that a group member did not contribute a fair share of work to the project, I will consider this feedback during grading.

 

Grading

At NYU Stern we seek to teach challenging courses that allow students to demonstrate their mastery of the subject matter.  In general, students in undergraduate core courses can expect a grading distribution where: 

Note that while the School uses these ranges  as a guide, the actual distribution for this course and your own grade will depend upon how well  you actually perform in this course.

 

Professional Responsibilities For This Course

Attendance

 

Participation

In-class contribution is a significant part of your grade and an important part of our shared learning experience. Your active participation helps me to evaluate your overall performance.
You can excel in this area if you come to class on time and contribute to the course by:

 

Assignments

 

Classroom Norms

 

Academic Integrity

Integrity is critical to the learning process and to all that we do here at NYU Stern. As members of our community, all students agree to abide by the NYU Stern Student Code of Conduct, which includes a commitment to:

The entire Stern Student Code of Conduct applies to all students enrolled in Stern courses and can be found here:

Undergraduate College: http://www.stern.nyu.edu/uc/codeofconduct
Graduate Programs: http://w4.stern.nyu.edu/studentactivities/involved.cfm?doc_id=102505

To help ensure the integrity of our learning community, prose assignments you submit to Blackboard will be submitted to Turnitin.  Turnitin will compare your submission to a database of prior submissions to Turnitin, current and archived Web pages, periodicals, journals, and publications.  Additionally, your document will become part of the Turnitin database.

 

Recording of Classes

Your class may be recorded for educational purposes

 

Students with Disabilities

If you have a qualified disability and will require academic accommodation of any kind during this course, you must notify me at the beginning of the course and provide a letter from the Moses Center for Students with Disabilities (CSD, 998-4980, www.nyu.edu/csd) verifying your registration and outlining the accommodations they recommend.  If you will need to take an exam at the CSD, you must submit a completed Exam Accommodations Form to them at least one week prior to the scheduled exam time to be guaranteed accommodation.

 

Re-Grading

The process of assigning grades is intended to be one of unbiased evaluation. Students are encouraged to respect the integrity and authority of the professor’s grading system and are discouraged from pursuing arbitrary challenges to it.

If you believe an inadvertent error has been made in the grading of an individual assignment or in assessing an overall course grade, a request to have the grade re-evaluated may be submitted. You must submit such requests in writing to me within 7 days of receiving the grade, including a brief written statement of why you believe that an error in grading has been made.

 

Stern Policies

General Behavior
The School expects that students will conduct themselves with respect and professionalism toward faculty, students, and others present in class and will follow the rules laid down by the instructor for classroom behavior.  Students who fail to do so may be asked to leave the classroom. 

 

Collaboration on Graded Assignments
Students may not work together on graded assignment unless the instructor gives express permission. 

 

Course Evaluations
Course evaluations are important to us and to students who come after you.  Please complete them thoughtfully.

 

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