Tag Archives: new products

When Innovation Takes Root

Have you ever wondered where the next breakthrough product idea comes from? Sometimes innovation isn’t about adding more technology, but rather completely rethinking the materials behind everyday products. Kimberly-Clark, the company behind brands like Huggies, Scott, and Cottonelle, has spent more than 20 years researching a new plant called hesperaloe as a potential replacement for wood fiber in paper products. After testing more than 70 alternative materials, the company believes it has found a promising option that could produce paper towels and toilet paper that are softer, stronger, and potentially less expensive to manufacture while using less water to grow.

For marketers, this story is about far more than paper towels. It highlights the long and often invisible journey from product research and development to commercialization. Companies rarely launch breakthrough products overnight. Instead, they invest years of scientific research, patents, pilot facilities, supplier partnerships, and product testing before consumers ever see a new item on store shelves. Kimberly-Clark has already invested hundreds of millions of dollars in this innovation, demonstrating the level of commitment required to create a product platform that could reshape an entire category.

Launching an innovative product also presents marketing challenges. How do you convince consumers to trust a material they’ve never heard of? What product benefits should marketers emphasize – performance, sustainability, price, or all three? Success depends on understanding customer needs while ensuring the product can be manufactured at scale and distributed efficiently. Innovation doesn’t end in the laboratory. It succeeds when research, engineering, operations, and marketing work together to transform a bold idea into a product consumers choose every day.

Discussion Questions and Activities

  1. What challenges might marketers face when introducing products made from an unfamiliar plant fiber such as hesperaloe?
  2. Why would Kimberly-Clark invest more than 20 years researching a new material before bringing it to market?
  3. Which product benefit would be most persuasive to consumers: improved performance, lower environmental impact, lower price, or something else?
  4. How do patents and proprietary technology contribute to competitive advantage during a new product launch?
  5. What risks should companies evaluate before commercializing a breakthrough innovation?
  6. New Product Launch Analysis. Working in small groups, identify another consumer product introduced within the past two years that features a new material or technology. Create a brief presentation including the customer problem it solves, the target market, the key marketing message, and why the innovation may or may not succeed.
  7. Innovation Pipeline Research. Use Kimberly-Clark’s Innovation and Sustainability resources to investigate how the company develops new products and materials. Identify one additional innovation the company is pursuing and explain how it aligns with its product strategy.
  8. Commercialization Challenge. Imagine your team is preparing to launch Kimberly-Clark’s first hesperaloe-based paper towel. Develop a brief commercialization plan that includes a target market, three key product benefits, a product name, a packaging concept, a promotional campaign idea, one potential obstacle to market adoption and how your team would address it.

Sources: Khan, Natasha (3 Aug 2026), The Paper in Your Paper Towel Is a Candidate for a Radical Overhaul, Wall Street Journal; Investing.com (3 Aug 2026), Kimberly-Clark Unveils Alternative Fiber Technology Platform, Investing.com.

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Soda Wars 2025: Is Pepsi Losing Its Fizz?

For decades, the “Cola Wars” were simple: Coke vs. Pepsi. But in 2025, the battlefield looks very different. Pepsi, once Coke’s fiercest rival, has slipped to fourth place in U.S. soda sales behind not only Coca-Cola, but also Dr Pepper and Sprite. What happened?

Part of Pepsi’s challenge is strategy. Coca-Cola slimmed down years ago by spinning off its bottling operations, freeing up money and attention for marketing and brand building. Pepsi kept its bottling business in-house and has been weighed down by trucks, warehouses, and complexity. Coke’s sharper focus has paid off: bigger ad budgets, leaner operations, and stronger brand loyalty.

But Pepsi’s decline isn’t just about Coke. Smaller challengers and new products are reshaping the market. Dr Pepper leaned into quirky flavors and TikTok buzz. Sprite reinvented itself with Gen Z-friendly campaigns and a new hit product, Sprite Chill. Meanwhile, health-focused upstarts like Olipop and Poppi are doubling sales with prebiotic sodas marketed as better-for-you alternatives. Even celebrities like Ben Stiller are entering the soda space, banking on nostalgia and personality-driven branding.

For marketers, the lesson is clear. Competition is no longer just “big vs. big.” A strong distribution system matters, but so do brand positioning, innovation, and the ability to connect with consumers’ changing values, whether that’s health, fun, or belonging to a cultural moment. Today’s soda aisle shows how brand strategy, innovation, and cultural relevance decides who wins and who fizzles out.

Discussion Questions and Activities

  1. How has Coca-Cola’s decision to spin off its bottling operations helped its brand stay strong?
  2. What factors explain why Dr Pepper and Sprite have overtaken Pepsi in market share?
  3. How do health-focused startups like Olipop position themselves differently than legacy soda brands like Coke and Pepsi?
  4. What risks and opportunities come with celebrity-led brands like Stiller’s Soda? Watch Ben Stiller’s ad for his new soda here https://www.youtube.com/watch?v=6WwWg0Hf38Y.
  5. If you were Pepsi’s CMO, what would you do next to regain market relevance?
  6. Brand Battle Map. Students create a product perceptual map of major soda brands, plotting them by “traditional vs. health-conscious” and “mass-market vs. niche,” then discuss positioning strategies.
  7. Ad Campaign Remix. In groups, students redesign a past Pepsi ad campaign to target Gen Z more effectively.
  8. Startup Pitch. Students role-play as founders of a new soda brand, pitching their product’s positioning, target audience, and marketing strategy to the class.

Sources: Miller, Merlyn (23 Sep 2025), Ben Stiller Is Launching a Soda — and We Got a First Taste, Food and Wine. Wainer, David (12 Sep 2025) If Pepsi Wants to Win, It Has to Play Coke’s Game, Wall Street Journal. Roche, Calum (30 Jul 2025) Pepsi’s free fall to 4th place in the Soda Wars: These 3 soft drinks now top the list in the U.S., Diario, AS. Doering, Christopher (8 Jul 2025) Olipop doubles down on health claims as Pepsi, Coke enter better-for-you soda space, Food Dive.

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Tesla Robotaxi launches in Austin

Instead of an Uber or Lyft, have you opted for a driverless rideshare vehicle like Waymo? These services are available in just a few select cities like LA and Phoenix currently, but more are planned and competition is heating up. After a decade of promises to bring its version to the public, Tesla unveiled the Robotaxi this weekend. But it is a very small launch, just a dozen vehicles operating in a limited geofenced area of Austin, TX and available only to invited Tesla enthusiasts so far. These early rides are available for just $4.20 and safety monitoring personnel will ride along in the front passenger seat for the time being.

Waymo is the market leader in this industry, recently reaching over 10 million paid rides with an impressive safety record compared to human drivers, but it is still not profitable. How will the Tesla version compare? It features an advanced version of FSD, or Full Self-Driving, employed on its Model Y vehicle for this version of the Robotaxi. While Alphabet’s Waymo and Amazon’s Zoox use a combination of cameras, radar and lidar (detection using lasers), Tesla uses cameras only in a less expensive implementation. All three also use remote monitoring of vehicles.

Tesla has had a challenging year with its primary business of electric vehicle manufacturing facing declining sales, in part because of controversial activities of its CEO Elon Musk but also growing competition. Analysts believe that autonomous driving can be a bright spot for the future, and Musk has been claiming that within two years there will be a million Robotaxis on US roads. How? A software enhancement could enable private Model Y owners to transform their cars into vehicles-for-hire while they are at work or on vacation.

How likely is this level of growth? Would you rent out your Model Y if you had one?

Activities:

  1. Ask students: Have you been in a driverless vehicle? Would you ride in one in Austin right now?
  2. Have students look up a couple of reviews for Tesla Robotaxi online. An article on The Verge has some interesting responses:  https://www.theverge.com/news/690846/tesla-robotaxi-first-reaction-austin. How would you rate the launch? What changes might have improved it?
  3. Ask students to form small groups and create a SWOT analysis for the Tesla Robotaxi. Some research will be necessary. Do you predict success for this venture?

Sources: Peterson, Becky, (22 Jun 2025) Tesla’s Robotaxis Are Here: What You Need to Know, Wall Street Journal. Condon, Bernard, (22 Jun 2025) Would you hail a ‘robotaxi’? Musk bets cabs will give Tesla a lift after boycotts and sales plunge, APnews.com.

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