Tastykake Case Analysis

The text presented the different steps and phases used when developing a new product which was simple and easy to follow. However, the new product development process used by Tastykakes did not follow the linear sequencing of phases presented in the text. Most of the steps were overlapping, since a lot of the various departments were engaged in most phases at the same time. This method accelerated the company’s time to market the new product, even though it would normally be completed in one year and eighteen months.

Problem Statement

Tastykakes enjoyed nine decades of success in the snack business and experienced its highest sales year in 2001. However, because of the ongoing trends in the market the company is forced to reevaluate its strategies. Company sales have been stagnant for years and profits are falling because there are new products available on the market. The market has shifted towards healthier snack alternatives and was flooded with about 600 low carb products. Competitors keep constantly releasing new products and even the current customers are diverting their attention to other products.

Issues

a. Since the product is required to be launched by the fall, would the marketing manager be able to accomplish the task?

b. Will the existing equipment and personnel be able to complete the task on time?

c. The FDA’s announcement of its intention to monitor the usage of terms like carb free and reduced carb

d. Finding a sugar free alternative since maltitol has a number of side effects

SWOT Analysis

Tastykake has been operating in and around the Philadelphia area for more than nine decades. The company has enjoyed tremendous the success and is very popular among customers. The company has experienced high profit margins and is in excellent financial condition. Other strengths of the company include four product categories in the snack business, a strong management and marketing team and a loyal customer base. However, even though the company...