INDIAN INSTITUTE OF MANAGEMENT CALCUTTA

PGDM: 44th & PGDCM 14th Batch Students

Term IV: 9th June –August 23rd 2008

Course: MK :Product Management

Instructor : Ramanuj Majumdar

Office Room: A 210

Phone:Extn 161; (Office) Cell no.92316-81665
Email:ramanuj @iimcal.ac.in

THE PRODUCT MANAGEMENT DECISION

Among the various Ps of Marketing, Product decision constitutes the most crucial one because it
determines company’s present top/bottom line and shapes its long term. Any conscious change in the
company’s product offering-be due to competition, market trends, change in consumer behavior or
new insight is generally known as product decision.

The success of any company lies in their ability to remain in the limelight of the market. In this sense,
their target customers should prefer to buy their offerings because of superior product portfolio and
perceived image. For instance, consumers all over the world are today familiar with the products
marketed by Toyota, Sony, Nokia, Honda, P& G, Cadbury, Mitsubishi, GE etc.

Likewise, visionary marketers in India have realised the importance of products’ core values, all
painstakingly built over the years and fine tuned them under dynamic market conditions.

Given the rapidly changing technological, competitive, social and overall market environment, the
product portfolio must be constantly monitored to reflect these changes, if the company is to remain in
a viable condition

The principal task of a product manager lies primarily on managing its existing product portfolio.
However, as a means to growth, they are also involved in rejuvenation or deletion of some existing
products and timely introduction of new products. In other words, Product Management function has
assumed a challenging task for any marketer.

Course Focus

The course will provide a forum to discuss emerging challenges faced to manage any product and
service in this turbulent Indian market condition.

It will explain key concepts like brand management, product positioning, creative advertising and
endorsement to influence product buying decision, innovative promotion decisions, Product Portfolio
Analysis & elimination rules.

During the course we shall take up a number of real life New Product Launch decisions in India. We
shall examine why some of these attempts are more successful than others. Professor shall present his
varied experience and research of evidences about how host of products are marketed in the Indian
Market. The class in the form of Group shall carry out live projects on various Product related issues
and analyse a number of products in Indian Market.

Contents
•The Macro Perspective:
The Indian Market –Emerging Panorama
• Product Management Concepts : A Review
• Diversity of Indian Market: A Segmentation Exercise
• Challenges of Rural Marketing in India
• Brand Value Maintenance and Product Modification
• Category Attractiveness and Competitor Analysis
• Evaluation of Product Portfolio and Elimination Strategies
• Developing Product Strategy
• Managing Retail and Modern Trade in India
• Pricing and Promotion Decisions
• New Media Scenario and Creative Advertising Decisions
• Analysis of New Product Launch
• Managing Products in India
• Marketing Investment Analysis for Product Management
• Marketing Challenges in the Foreseeable Future

Evaluation Criterion

i. Individual assignment: 30
ii. Group Assignment & presentation: 40
iii.End Term Examination: 30

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O.R. in Marketing [OM 219]

Instructors: Prof. S.D. Moitra
Courses Objectives:
This course will review selected operations research applications that have been useful in marketing
decision-making and show the potential of models in marketing. The emphasis will be on
understanding the modeling aspects and the related marketing issues. The focus will not be on any
particular theory in marketing nor on the details of solution techniques.

Course Description:
The topics covered will be:
-Marketing Decision Making and Modeling
-Consumer Behaviour & Market Segmentation
-Demand Analysis & Demand Forecasting
-New Product Design & Marketing
-Advertising and Promotion
-Pricing
-Sales Force Planning
-Distribution
-Models for E-Marketing
-Marketing Strategy and Competitive Response

The course will be taught through lectures, assigned readings and supervised projects.

Text: Marketing Models – Lilien, Kotler & Moorthy (Prentice Hall)

Reference: Marketing Engineering – Lilien & Rangaswamy (Addison-Wesley)

Building Models for Marketing Decisions- Leeflang, et.al. (Kluwer)

Course Grading:
In-class tests 40%
Take-home midterm 15%
Term Project 35%
Class Participation 10%
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Logistics and Supply Chain Management [OM 238]

Instructors: Prof. Balram Avittathur
Term IV

COURSE OBJECTIVES:

Supply Chain Management (SCM) is often described as one of the most powerful sources of
competitive advantage for firms in recent times. Unlike the compartmentalized manner of efficiency
and effectiveness (service) enhancement pursuit in traditional management, SCM attempts to
further enhance the same at the value chain level through higher focus on coordination and
integration among the various partners of the supply chain to provide greater value to the
customers. This course on Logistics and Supply Chain Management is designed as one that is
application-based and also attempts to integrate concepts covered in various courses. The pedagogy
is a mix of conceptual inputs, model-based analyses, and case studies.

COURSE OUTLINE:
Ssn Topic Reading Assignment/Case
1 Introduction to the course Chp. 1, 3
2 Inventory Management and Risk Pooling Chp. 2 Assignments 1, 2
3 The Supply Chain Game
4 The Value of Information Chp. 5
5 Capacity Planning under Uncertainty Sport Obermeyer
6 Managing Products with Short Lifecycles
7 Supply Contracts Chp. 4 Examples 4-3 to 4-15
8 Supply Contracts Chp. 4 Examples 4-3 to 4-15
9 Decision Models in SCM
10 Decision Models in SCM
11 Decision Models in SCM
12 Marketing Issues impacted by SCM
13 Supply Chain Integration Chp. 6 Dell Computers
14 Distribution Strategies Chp. 7 Examples 7-5 to 7-7
15 Strategic Alliances Chp. 8
16 Coordinated Product and Supply Chain Design Chp. 11 Benetton, HP
17 Procurement and Outsourcing Strategies Chp. 9
18 Global Logistics and Risk Management Chp. 10
19 Project Presentations
20 Project Presentations

EVALUATION:

Quizzes (4 x 5 marks): 20 (33.33%)

Project Work: 20 (33.33%)
End-Term Examination: 20 (33.33%)

COURSE TEXTBOOK:

Designing and Managing the Supply Chain (3rd Edition) by D. Simchi-Levi, P. Kaminsky, E. Simchi-
Levi and Shankar; Tata McGraw-Hill, 2008.
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Statistics - I [OM-101]
Instructors: Prof.Rahul Mukherjee, Prof.Sahadeb Sarkar, Prof.Kalyan Dutta
Coverage:
.Set Theory
.Probability Distributions
.Continuous Probability Distributions
.Correlation and Regression
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Statistics-II [OM-102]
Instructors: Prof.Sahadeb Sarkar, Prof.Rahul Mukherjee, Prof.Saibal Chattopadhyay
Coverage:
.Concept of random sampling
.Point Estimation
.Testing of Hypotheses
.Analysis of Variance
.Non parametric tests
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Operations Research [OM-103]

Instructors: Prof. Manabendra Nath Pal, Prof.Bodhibrata Nag, Prof. Subrata Mitra, Prof. Sanjeet Singh

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Production and Operations Management [OM-104]

Instructors: Prof. Ashish Chatterjee, Prof. Balram Avittathur and Prof. P.P. Datta
Course Code: OM-104

Course Instructors: Prof. Ashis K. Chatterjee (A205, X: 155), Prof. B. Avittathur (A309, X: 172) and
Prof. P.P. Data

Course Coordinator: Prof. B. Avittathur

COURSE OUTLINE:
Topic
1. Overview of Operations Management
2. Process Analysis
3. Efficient Planning of Production
Aggregate Production Planning
Line Balancing
Sequencing
4. Managing Inventory
5. Introduction to Supply Chain Management
Mid-Term Examination
6. Innovation, Design and Quality Management
7. Quality Control
8. Forecasting
9. Maintenance Management and TPM
10. Lean Production
JIT, Group Technology, FMS, CIM and CAM

Evaluation:
1. Mid-term Examination: 35 %
2. End-term Examination: 65 %
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Management Game [OM-211]

Instructors: Prof. Balram Avittathur, Prof. M.N. Pal

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Production & Inventory Control [OM-222]

Instructors: Prof.Ashish Chatterjee
Production & Inventory Control Functions; Aggregate Planning Models : linear, nonlinear, fixed cost,
convex and concave cost models, Heuristic and search decision rules; Aggregate Planning in mass
production and job shop situations; control technique for Aggregate Planning; Hierarchical
Production Planning: rationale, methods of disaggregation : Inventory planning and control :
Extension of Economic Order Quantity framework, Exchange curve concept and application, order
quantity with varying demand, Different inventory policies; Materials Requirement Planning :
concept and applications; Multistage Production and Inventory System : framework, reserve
inventory between machines, determination of base stocks at different stages; Industrial Dynamics;
Simulation for Controlling Production and Inventory.
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Management of Technology [OM-233]

Instructors: Prof. S.D. Moitra
Course Objective:
With the increasing emphasis on technology in many firms, management of technology has become
an important area. This course will cover the issues and concepts in the management of technology,
and provide an understanding of the links between technology, innovations, and management.

Course Outline:
- Concepts in technology management; nature of the technology-based firm.
- Organizing for innovation; the technologically effective enterprise.
- Ideation and generation of new technologies.
- The role and planning of R&D.
- Developing new technology-based products.
- Management of high technology and technology-based products.
- Market analysis for new technologies and products.
- Managing multigenerational technology.
- Analyzing technology trends.
- Strategic issues in technology management.

The course will be taught through lectures, readings, and supervised projects.

Texts:
Betz. F. Strategic Technology Management, McGraw-Hill.
Readings for OM 233 - Management of Technology, PGP Office.
References:
Burgelman, R.A., M.A. Madique, and S.C. Wheelwright - Strategic Management of Technology &
Innovation. Irwin.

Souder, W.C. and C.M. Crawford - Managing New Technology Development. McGraw-Hill.

Utterback, J.M. - Mastering the Dynamics of Innovation. HBS Press.

Twiss, B. - Managing Technological Innovation. Pitman.

Kocaoglu, D.F. (Ed) - Management of R&D and Engineering. North Holland.

Assessment:
In-class quizzes 30%
Take-home midterm 20%
Final (Project) 40%
Class Participation 10%
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Management of International Operations [OM-234]

Instructors: Prof. S.D. Moitra
Course name and code: Management of International Operations OM 234
Term PGP II. Term V
Course Coordinator: Prof. S. D. Moitra
Name of Instructor: Prof. S. D. Moitra
Course Pre-requisites: None
Restrictions on registration: None
Min. no. of students req. to offer course: None

Objectives:
In recent years, international operations have emerged as a topic distinct from other
production/operations management issues. The objective of the course is to address issues unique
to the internationalization of operations. These include location of facilities, logistics, sourcing
production/operations planning, choice of technologies, processes and products as well as
technology transfer. Each of these significantly affects operations in the international context and
each in turn is affected by the internationalization of operations.

Session Plan:
Description No. of Sessions
Internationalization of Operations
- International Operations Management
- Variations in Operating Practices
- Benchmarking International Operations 6
International Operations-Critical Issues - International Operations Planning
- International Facilities Location
- International Sourcing & Logistics
8
Internationalization of Technology
- International Technology Transfer
- Management of Global Products 3
Interfaces with other Functions
- Interface with Marketing
- Interface with R & D
- Interface with Communications 3

Texts: Globalization and Business - Daniels, Radebaugh and Sullivan.

Readings for Management of International Operations (PGP Office)

References: Schniederjans, M.J. – Operations Management in a Global Context

Flaherty, M.T. – Global Operations Management
Dornier, P-P. et al. – Global Operations and Logistics
Bartlett, C. A. & Ghoshal, S. – Transnational Management

Pedagogy: The course will be taught through lectures, class discussion of assigned readings,
bibliographic research, report writing, and supervised projects.

Evaluation method:
Quizzes (in-class): 40%
Mid-Term Assignment: Paper review 15%
End-term Assignment: Case study 30%
Class Participation: 15%
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Strategic Service Management [OM-242]

Instructors: Prof. B Avittathur, Prof. S Mitra
Strategic Service Management [OM 242]
Term VI, Post Graduate Programme

Course Instructors: Prof. B. Avittathur and Prof. S. Mitra

Course Co-ordinator: Prof. B. Avittathur

COURSE OBJECTIVES:

Service Management has assumed higher significance today than any time in the past owing to its
increasing contribution to the economy. The proportion of people employed in the service sector is
also increasing over time. This course is designed to impart the following to the students:

- Significance of services in today’s economy

- Understanding of challenges faced by service organizations
- Building competitive advantages through design of service delivery system
- Techniques for efficient and effective management of service organizations

Topics covered:
- Service Sector, Its Role in an Economy
Nature and Classification of Services
- Industry Analysis
- Service Strategy
- Managing Capacity and Demand
- Costing for Service Firms
- Managing Growth and Expansion
- Service Quality
- Achieving Service Excellence
- New Service Development and Process Design
- Service Encounter
- Service Facilty Location
- Service Facility Layout Planning
- Managing Waiting Lines
- Simulation
- Productivity and Benchmarking
- Service Organization and Culture
- Workforce Scheduling
- Managing Service Projects
- Project Presentation by Students

Course Textbook: Service Management by J.A. Fitzsimmons and M.J. Fitzsimmons, Tata McGraw-
Hill, Third Edition, 2001.

EVALUATION:

Cases and Assignments: 30%

Project Work: 30%
End-Term Examination: 40%
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Optimization Models for Industry [OM-246]

Instructors: Prof. Sanjeet Singh
Optimization Models for Industry[OM-246]
PGP-II, Term-IV

Course Co-ordinator: Prof. Sanjeet Singh

Course Instructor: Prof. Sanjeet Singh
COURSE OBJECTIVES:
Optimization is an essential tool in every project in every large-scale organization whether in
business, industry, engineering and science. Optimization models form a very important link
between the business input and the firm’s objective in the form of the output decision variables. This
course covers various formulation and solution aspect of different types of optimization models from
the modern industry.

Topics Covered:
Linear Programming Models in Finance
- Asset/liability cash-flow matching
- Short term financing, dedication
- Arbitrage detection using linear programming

Data Envelopment Analysis for Decision Making

- Assessing organizational efficiency in multi-branch organizations
- Input/output oriented CCR optimization models.
- Improving the performance using DEA

Introduction to Quadratic Programming

- The quadratic programming problem
- Optimality conditions; Interior point methods

Portfolio Optimization Using Quadratic Programming

- Approximation for the general portfolio analysis
- Optimal quantitative approach of bond indexation
- Recovering risk-neutral probabilities from option prices

Multiobjective Decision Making

- Pareto optimality for multiobjective decision making
- Weighted sum approach for joint optimization of many objectives of a firm
- Multiobjective simulation optimization
- Multiobjective portfolio optimization

Decision Making through Nonlinear Programming Models

- Introduction; Nonsmooth optimization: subgradient methods
- NLP optimization models for volatility estimation

Dynamic Programming Models in Finance

- Abstraction of the dynamic programming approach
- DP optimization models for option pricing
- DP models: structuring asset-backed securities

Energy Policy Planning using Bilevel Programming Models

- Introduction to bilevel optimization
- Energy policy planning using bilevel optimization models
- Optimization models for energy-economy-environmental interaction in a general equilibrium
framework

Integer Programming Models in Finance

- Integer programming models for industrial auctions
- Constructing an index fund
- Integer programming optimization with minimum transaction levels

Network Models; Min Cost Flow & Multicommodity Flow Problems

- Introduction to network optimization problems
- Network, min cost flow models for transportation problems
- Multicommodity flow problems for information convergence

Optimization Models for Manufacturing planning and Control

- Production planning optimization models
- Demand planning: lost sales/back orders
- Multiple locations and resource planning optimization
- Multi-item capacitated lot-sizing optimization

Optimization Models for Marketing

- Cross functional decision making using optimization models
- Product line design optimization

Optimization Models for Forestry Industry

- Strategic planning: land allocation optimization
- Forestry operational planning and decision making models
- Addressing environmental/spatial concerns using optimization

Optimization of Telecommunication Networks

- Designing large-scale telecommunications networks
- Access and backbone network design optimization
- Capacitated survivable backbone network design optimization
- Optimization issues in quality of service

Applied Optimization in Agribusiness Management

- Farm and agribusiness optimization
- Farm firm development
- Policy optimization models to analyze the effect to agricultural and resource polices on the
agricultural economy

Optimization in Aero Space Industry

- Multidimensional dimensional assignment optimization
- Trajectory optimization

Optimization Models in Financial Services Industry

- Optimization models for market equilibrium analysis
- Optimization models for financial risk management

Optimization Models for Oil and Gas Recovery

- Underground oil production optimization models
- Development planning and management of petroleum reservoirs using optimization models
- Optimization of field development scheduling and well placement design

Optimization in Rail industry

- Optimization problems for infrastructure planning and track maintenance
- sizing of fleets of locomotives and railcars
- Optimization problems for train scheduling, service frequency planning, freight routing

Models in Urban and Air Transportation

- Optimization models under static/dynamic information processes
- Dynamic assignment for the load matching problem
- Optimization models for booking control, crew pairing and aircraft fleet
- Multiperiod optimization models for airline overbooking

Reference Books/Articles:
1. Panos M. Pardalos and Mauricio G. C. Resende, Handbook of Applied Optimization, Oxford
University Press, 2002.
2. Gerard Cornuejols and Reha Tutuncu, Optimization Methods in Finance, Cambridge University
Press, 2006.
3. Derek W. Bunn and Erik R. Larsen, Systems Modelling for Energy Policy, John-Wiley, 1997.
4. W. W. Cooper, L.M. Seiford and K. Tone, Data Envelopment Analysis, Kluwer Academic Press,
2000.
5. R. K. K. Ahuja, T. L. Magnanti and J. B. Orlin, Network Flows: Theory, Algorithms and
Applications, pearson education.
6. Panos M. Pardalos and Mauricio G. C. Resende, Handbook of optimization in telecommunications,
Springer, 2006.
7. J. S. Aronofsky, The use of mathematical model in underground oil production, Management
Science 8: 394-407(1962).
8. R.E. Chatwin, Multiperiod airline overbooking with a single fare class, Operations Research 46(6):
pp. 805-819.

Evaluation:
Mid Term: 40%
End Term: 40%
Project: 20%

Note: Please note that above course contents and evaluation plan may change in a particular year.
For the actual course contents/session plan and evaluation plan for the current year kindly contact
PGP Office.
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