Analysis for Product and Services Innovation

2 Credits BU.430.730.xx Class Day/Time & Start/End date Semester Class Location Instructor Full Name Contact Information Phone Number: (###)###-#### E-mail Address: Office Hours Day/s Times Required Textbook Crawford, Merle and Di Benedetto, Anthony, New Products Management, 10th Edition, McGraw Hill Publishing, New York, 2010. Required Readings: Harvard Business Publications Coursepack Articles Article #594127: New Product Commercialization: Common Mistakes Article #695016: Product Development: A Customer-Driven Approach Article #BH505: The Secret to True Service Innovation Article #695051: Understanding User Needs Article #582055: Research Methods in Marketing: Survey Research Article #599110: Analyzing Consumer Perceptions Article #599112: Analyzing Consumer Preferences Article #590059: Conjoint Analysis: A Manager's Guide Article #505062: Forecasting the Adoption of a New Product Article #R1212H: Ways to Reinvent Service Delivery Article #9505075: Note on Innovation Diffusion: Rogers' Five Factors Blackboard (e-Reserves) Kelly (2002), Innovation Begins with an Eye, Cases Case #: 602175: Innovation at Progressive (A): Pay-As-You-Go Insurance Case #601138: Innovation at Progressive (B): Homeowners Insurance Case #DMI017: Braun: The Syncro Shaver (A) Case #DMI018: Braun: The Syncro Shaver (B) Case #500024: Brita Products Company

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Chapter 3 in The Art of Innovation

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Blackboard Site A Blackboard course site is set up for this course. Each student is expected to check the site throughout the semester as Blackboard will be the primary venue for outside classroom communications between the instructors and the students. Students can access the course site at https://blackboard.jhu.edu. Support for Blackboard is available at 1-866-669-6138. Course Evaluation As a research and learning community, the Carey Business School is committed to continuous improvement. The faculty strongly encourages students to provide complete and honest feedback for this course. Please take this activity seriously because we depend on your feedback to help us improve so you and your colleagues will benefit. Information on how to complete the evaluation will be provided towards the end of the course. Disability Services Johns Hopkins University and the Carey Business School are committed to making all academic programs, support services, and facilities accessible. To determine eligibility for accommodations, please contact the Carey Disability Services Office at time of admission and allow at least four weeks prior to the beginning of the first class meeting. Students should contact Rachel Hall in the Disability Services office by phone at 410-234-9243, by fax at 443-529-1552, or email: carey.disability@jhu.edu. Important Academic Policies and Services Honor Code Statement of Diversity and Inclusion Tutoring Carey Writing Center Inclement Weather Policy Students are strongly encouraged to consult the Johns Hopkins Carey Business School Student Handbook and Academic Catalog and the School website http://carey.jhu.edu/syllabus_policies for detailed information regarding the above items. Course Description Students investigate the implications of new product development and deployment with respect to the firms core competencies and as a source of innovation, differentiation, and competitiveness. Topics include the design and management of new product development life cycles including processes, outsourcing, distributed design, as well as the software and services needed for product/services introduction. The course focuses on the management of new product/service development processes in dynamic markets and explores cross- departmental interactions in maintaining company and product competitiveness. Course Overview This course focuses on the strategy for introduction of new products and services as well as specific market research techniques that are employed in the domain of new products. Most of marketing decisions require a mixture of qualitative insights and quantitative experimentation, and the world of innovation and new products involves an even greater degree of holistic thinking. This course primarily concentrates on qualitative and quantitative tools, equipping students with an understanding of ways to structure and perform analysis at early stages of innovation and product/service development. Student Learning Objectives for This Course All Carey graduates are expected to demonstrate competence on four Learning Goals, operationalized in eight Learning Objectives. These learning goals and objectives are supported by the courses Carey offers. For a complete list of Carey learning goals and objectives, please refer to the website http://carey.jhu.edu/LearningAtCarey/LGO/index.html. The learning objectives for this course are: 1. Understand the nature and scope of new product development decisions. 2. Master appropriate qualitative and quantitative techniques for new product development decisions. 3. Have the ability of evaluating the proposed new product strategy in terms of their ethical frames and behavioral feasibility.

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4. Have the ability to interpret and deliver the proposed solution and develop compelling yet balanced arguments for the recommendations. Attendance Policy Attendance and class participation are part of each students course grade. Students are expected to attend all scheduled class sessions. Each class will include opportunities for teams to work together. Failure to attend class will result in an inability to achieve the objectives of the course. Excessive absence will result in loss of points for team participation. Regular attendance and active participation are required for students to successfully complete the course. Course Requirements Readings The readings are listed below on the schedule of topics. The textbook is a worthwhile source of material and you are required to read the chapters. Case Studies Please turn in hard copies of case assignments at the beginning of class on the date that the case is to be discussed. Quantitative and Internet Exercises Individual exercises are designed to have you apply some of the basic concepts that will be developed in class. There will be one quantitative exercises, covering project selection and and perceptual maps. There is also an internet exercise. These exercises are to be completed independently. New Product Application Project The team project requires the students to come up with a new product idea, evaluate the idea, and provide launching decisions/plans. Creative ideas and insightful analysis are more important than actual success of the new product. There are several important parts of the project Perceptual Mapping and Customer Problems, Ideation and Concept Development, and Analytical/Conjoint Analysis. Teams of 4-5 students are recommended. Project Deliverables In the final week of class, teams will make presentations of their projects. The length of presentations will depend on class size. The presentations should succinctly communicate the present situation, the key research findings (including support for the research findings, not just statements of them), and proposals for next steps. Presentations should be submitted electronically on the scheduled day of team presentations. A written report is also due by Class #8. Please turn in an electronic copy of the report via e-mail, and bring a hardcopy to class. In appendices, please include supporting document, if any, such as survey questionnaires and data analysis. Grading Attendance and Class Discussion (10%) Attendance and participation are part of the course grade. Participants are expected to attend all scheduled class sessions. Each class will include opportunities for teams to work together. Failure to attend class will result in an inability to achieve the objectives of the course. Excessive absence will result in loss of points for team participation. Full attendance and active participation are required for students to succeed in this course. If you skipped a class, it is your responsibility to make up whatever you may have missed. Case Analysis (20%) We will have 3 cases in this course, the first case will be group work and the next 2 will be individual cases. Each student must submit the group case, but just one individual case at your own choice.

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Quantitative and Internet Exercise (20%) - individual assignments Group Project (35%) This part of the grade will cover everything in the report, such as the background research on the selected brand, the integration of the research findings and the proposals based on your research. 1. Perceptual Mapping and Customer Problems (30%) 2. Ideation and Concept Development (30%) 3. Analytical Application - Conjoint Analysis (30%) 4. Peer Analysis (10%)

Project Presentation (15%)

Important notes about grading policy: The grade for good performance in a course will be a B+/B. The grade of A- will only be awarded for excellent performance. The grade of A will be reserved for those who demonstrate extraordinarily excellent performance. *The grades of D+, D, and D- are not awarded at the graduate level. Grade appeals will ONLY be considered in the case of a documented clerical error.

Copyright Statement Unless explicitly allowed by the instructor, course materials, class discussions, and examinations are created for and expected to be used by class participants only. The recording and rebroadcasting of such material, by any means, is forbidden. Violations are subject to sanctions under the Honor Code.

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Tentative Course Calendar *The instructor reserves the right to alter course content or adjust the pace to accommodate class progress Class Content Week 1 Introductions and Syllabus Review Project valuation and selection Chapter 1-2 Articles New Product Commercialization: Common Mistakes New Product Development: A Customer Driven Approach The True Secret to Service Innovation Week2 Opportunity identification I (qualitative approach) Chapter 5 Articles Understanding User Needs Research Methods in Marketing: Survey Research Ways to Reinvent Service Delivery DUE -- Team Case: Innovation at Progressive (A) and (B) Week 3 Opportunity identification II Perceptual mapping Chapter 6 Article Analyzing Consumer Perceptions Innovation Begins with an Eye Week 4 Week 5 Opportunity identification III Conceptual development and testing New Products Analytical Tools: Conjoint Analysis, Trade Off Analysis, Dimensional Analysis and Relationship Analysis Chapter 9-10 Chapter 7-8 Articles Analyzing Consumer Preferences Conjoint Analysis: A Manager's Guide DUE: Quantitative Problem Due Week 6 Market Testing and Sales Forecasting Chapters 11, 15 & 18 Articles Researching and Monitoring Consumer Markets Forecasting the Adoption of a New Product Note on Innovation Diffusion: Rogers' Five Factors DUE: Brita Case Week 7 Product Launch and Launch Management Chapters 16-17 DUE: Case: Braun A/B Case DUE: Internet Exercise Week 8 1) Project Presentations Project Presentations Reading

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Quantitative Exercise: Perceptual Mapping Exercise & Decision Analysis Innovation and New Product Development Johns Hopkins University In this exercise, you will analyze restaurants and see how customers perceive them on specific attributes. You do not need any software to perform this analysis, for I have given you all the necessary information, output that I produced from conjoint analysis. Your data contains subject responses to questions below: We would like to ask how you would rate some restaurants on certain aspects. How much do you agree or disagree that the statement... <Attribute> describes <restaurant>? Would you say it describes this restaurant extremely well, very well, somewhat well, not very well, or not well at all? The attributes rated were: has some healthy menu options, has a variety of food choices, fast service, modern, and tasty. The restaurants rated were: 1. Quiznos 2. McDonalds 3. Burger King 4. Primanti Brothers 5. Subway 6. Panera Bread 7. Wendys Next we are going to ask about your preferences for restaurants that you might visit to obtain a brief lunch on a workday. We are going to mention two restaurants at a time, and ask you which one of those two you prefer. When making your decision, you should consider all aspects of these restaurants that are important to you, not just those that we have asked you about today. Out of the next 10 brief lunches you will have at either < restaurant A> or <restaurant B> if these were your only two choices, how many times out of 10 would you get your lunch at < restaurant A>? In this exercise you will be looking at how students perceive these restaurants. The data will be used to create a perceptual map for these seven restaurants. The restaurant perceptual map is a graphical representation of students perceived similarities and differences between restaurants. Perceptual maps are used to determine the number of issues (or factors) that are important to consumers. They are also used as an aid to determine the issues or factors that help define a market and the perceived market position of firms within the market. 1. Discuss how to decide how many dimensions you should consider in your analysis. Univariate F ratios: Attribute F ratio ---df--1 healthy 8.00 6, 6 2 variety 6.60 6, 6 3 fast 19.40 6, 6 4 modern 24.33 6, 6 5 tasty 5.40 6, 6 Variance Accounted For By Principal Components %Variance Cum % 1 56.67 56.67 2 28.96 85.63 3 10.88 96.51 4 2.64 99.14 5 0.86 100.00

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Discrimination For Each Dimension F ratio Cumulative Percentage 1 44.79 58.42 2 22.49 87.75

Although you may or may not have found that more dimensions are important in your analysis of the restaurant market, we will focus on two of the most important dimensions in the market for questions 2 through 4. 2. First, focus on the attributes. The modern attribute tends to be positively correlated with which other two? And the fast attribute is negatively correlated with which attribute? Discuss any implications these correlations have on the respondents mental categorizations/structure of these restaurants. 3. Next, focus on the positions of the restaurants in relation to the attribute vectors. Which restaurant is the most modern? Which is the restaurant with the slowest service? What does the graph indicate that respondents are seeking when going to the restaurant with the slowest service? Which is healthier, Primantis or McDonalds? 4. McDonalds (McD) and Burger King (BK) are clearly close competitors, being plotted on top of one another. Which restaurants are the closest competitors to Subway?

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Internet Assignments Part I: Opportunity Identification/Selection Product Development & Management Association (http://www.pdma.org): Follow the links to the on-line newsletter, Visions. Browse the titles of articles in the current issue and recent back issues and select one that seems interesting and relevant. Prepare a summary of the article. Be sure to discuss how the article is relevant to material covered in this course. Product Development & Management Association (http://www.pdma.org): Follow the links to the OCI (Outstanding Corporate Innovator) award. Check out the list of recent winners, and do a little on-line research to find out more about one or two of them. What do they do to achieve excellence in product innovation? Product Development Institute (http://www.prod-dev.com): Follow the links to the StageGate system. Write a short summary about Stage-Gate and how it works. How do firms benefit from following a systematic new products process? (You may get additional information at the related website, http://www.stage-gate.com.) Kelloggs (http://www.kelloggs.com): Explore the Kelloggs site and get information on its new products. Based on what you see, what appears to be the corporate strategy of Kelloggs driving new product development? Would you say there is a move away from the core cereal business to some extent? Rubbermaid (http://www.rubbermaid.com): Rubbermaid has had an excellent track record in the development and launch of new products. Check out its most recent new product launches. What are the characteristics of its newest products? What seems to drive new product development? Try to sketch out Rubbermaids Product Innovation Charter. 3M (http://www.3m.com): 3M has almost been synonymous with product innovation for a century. Explore this website, noting its historical product innovations as well as its newest products. What keeps a firm like 3M consistently successful with new products for so many years? What appear to be the product drivers and market drivers of new product development at 3M? Part 2: Concept Generation Campbell Soup (http://www.campbellsoup.com): Check out Campbells newest products. How does Campbell appear to generate ideas for its new products? How might Campbell apply some of the concept generation techniques discussed in the text? Morton Salt (http://www.morton.com): Check out Mortons newest products. How does Morton take one of the most mundane of products, salt, and seemingly generate a neverending supply of new products? New Pig Corporation (http://www.newpig.com): New Pig is a very innovative firm in the business of industrial spill cleanup, and an Outstanding Corporate Innovator award winner. Check out their range of products and services, and their newest products. How would you say they generate new product concepts? Landor Associates (http://www.landor.com): Check out Landors client firms and select two or three for which they developed a new corporate identity. How does a firm like Landor generate ideas for corporate identity makeovers? IDEO (http://www.ideo.com): What services are provided by IDEO? How does a firm like IDEO constantly generate innovative new ideas and concepts? Judging from the website, what seems to keep a firm like IDEO creative?

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Simmons Market Research Bureau (http://www.smrb.com): Follow the links to Correspondence Mapping. Check out their sample positioning map. What is correspondence mapping? What does the map represent, and how might it be used in concept generation?

Part 3: Concept/Project Evaluation National Family Opinion (http://www.nfow.com): Check out this website. What support does NFO offer the new product developer, both at concept evaluation and elsewhere in the new products process? Product Development Institute (http://www.prod-dev.com): Follow the links to the NewProd model. According to this website, what are the most important precursors to product success? How can the NewProd model be used to screen and select potential new product projects? Expert Choice (http://www.expertchoice.com): What is the Analytic Hierarchy Process (AHP)? Check out the information provided on AHP in this website and summarize how it works. If desired, download a test version of AHP and try it out. What might be a couple of drawbacks in using AHP for product project selection? QFD Institute (www.qfdi.org): Explore this website and summarize what QFD does for the firm. What advantages does it offer? How does it effectively capture the Voice of the Customer? What might be a couple of drawbacks of QFD? Part 4: Development Corporate Design Foundation (http://www.cdf.org): Follow the links to the on-line newsletter, @Issue. Browse the titles of articles in the current issue and recent back issues and select one that addresses some aspect of product design. Prepare a summary of the article. Discuss the important role of design in the success of the product discussed in your article. A Gallery of Bad Designs (http://www.baddesigns.com): This website collects bad designs of all different types, including poorly-designed products. Select two or three of the badlydesigned products as identified on this website. Describe their problems and how they could easily have been rectified. What could have been done to avoid these problems? Procter & Gamble (http://www.pg.com): Explore the P&G site and figure out how they test the likely market acceptance of their newest products. Is this an effective method? What are its pros and cons? What do you think of some of the newest products under consideration? NewProductWorks (http://www.newproductworks.com): Follow the links to the Hits and Misses. Here you will see recently launched products and informed comments on whether they are likely to succeed or not, as well as recent and classic new product failures. Do you agree with the opinions expressed on the site regarding the recent product launches? Indicate how you might product-use-test two of the more recent products, following the steps in the text. Part 5: Launch Namestormers (http://www.namewave.com): Check out Naming Services, Naming Software, and Do-It-Yourself Naming. Prepare a short summary of the dos and donts of product naming. How does the naming software work? Go through one of the simulations and summarize how computer-assisted name selection works. ACNielsen (http://www.acnielsen.com): Check out this website, and scan the range of support products provided by ACNielsen. What tools does ACNielsen provide the product

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manager that enables him/her to manage the launch of a new consumer non-durable product? Information Resources, Inc. (IRI) (http://www.infores.com): Check out this website, and scan the range of support products provided by IRI. What tools does IRI provide the product manager that enables him/her to manage the launch of a new consumer non-durable product? NPD Group (http://www.npd.com): The NPD Group provides detailed information on a wide range of consumer products. Select a product category of interest, and summarize the kind of information provided. How might this information be used by product managers during new product planning or launch? Mountain Dew (http://www.mountaindew.com): Follow the links to the Code Red product. How is this product promoted? It was hugely successful in the weeks and months following its launch. What might account for this success? How is its launch plan different from the less-successful Pepsi Kona product referenced in the case at the end of Chapter 20? Michigan Lawsuit Abuse Watch (http://www.mlaw.org): Follow the links to the wacky warning labels. Incredibly, all of these are real examples. Have we become too litigious a society? Do we really need all of these labels, or a warning on our coffee cups telling us the coffee is hot? In your opinion, where is this all leading? Organizations Product Development & Management Association: American Marketing Association: Corporate Design Foundation: QFD Institute for the Advancement of Quality Function Deployment: SRI International (developers of the VALS questionnaire for lifestyle segmentation): Consumer Product and Safety Commission: Food & Drug Administration: http://www.pdma.org http://www.ama.org http://www.cdf.org http://www.qfdi.org http://future.sri.com/vals/valsindex .html http://www.cpsc.gov http://www.fda.gov