Introduction:

Tastykakes was founded 90 years ago and it has been one of the most popular cake and snack bar of
Philadelphia. They had a great sale as they sell million of products in a single day. However, their
sales have been sluggish for past few years. Their top sales year was 2001, where they hit the sale of
$166 million with a profit of $6 million. Their CEO Charles Pizzi announced the launch of their new
innovative line extension. They observe that in last few years people are opted towards healthier
food options. By the late 1990’s there was an emerging trend of low carb products that satisfy
people who are diet conscious. By 2003 so many competitor companies have launched low carb
products onto their shelves that shows that this trend of healthy food products is nowhere going to
be end soon. They decided to launch low carb Tastykakes as their new line extension to compete
with the competitors in current trend situation. Their Chief Marketing Officer Vince Melchiorre said
If it becomes successful Tastykakes would be the first one to launch cakes as healthy option for diet
conscious people.

Karen Schutz joined Tastykakes as marketing manager after completing 20 years at Campbell Soup.
She was given the task of creating low carb cakes reality. The deadline given to her was short as they
want to launch this product in fall of 2004. Schutz has an experience of 20 years so she new what are
the challenges she is going to face. She knew it will take a year to 18 months to complete this task as
it requires product formulation, assessing shelf life, market testing and advertising planning. The
existing obstacle for her was that she must use the existing equipment and personnel.

John Sawicki, research manager gets first trial batches of low carb cookies to the headquarters for
private tasting by the managers and owner. Schrutz and her colleagues like the taste and they gave it
a code name “Greta Carbo”.

In January 2004, they started developing a low carb cookie, Melchiorre asked Schrutz if they can
make Greta Sugar free. Schrutz asked Sawicki if they can use the sugary content of milk and berries
and does not use any artificial sugar to make it taste better. He said he has to ask the people who
longer eat Tastykakes anymore due to its sweetness. He said it will be a nice idea to get those
audience back.

Things get excited when Schrutz decided that they can launch Greta a low carb chocolate cookie
earlier in June. Early batches of Greta low carb cookies bars contain only 7 carbs as compare to their
competitor Atkins Cookies. Sawicki get that low carb cookies and blueberry muffin to taste by
Schrutz and their co-workers. They liked the taste but Schrutz said that it shapes, and toppings
should be change as people like to eat things by their eyes. If it looks appealing people will buy it.
She emphasizes that product must have to look good.

They had to preview the doughnuts, muffins, and cookies at the upcoming March board meeting.
She noticed that doughnut mixed was not ready, blueberry sank in muffins, cookie bars needed icing
and they are left with few days. Somehow Sawicki pulled it all off. They were ready to serve all these
things in aboard meeting. The board thanked Schrutz and Greta team to come this far.

Schrutz got know from a supplier that so many people cannot consume maltitol as it causes
discomfort. They setup a board meeting where they decided that the usage of maltitol in low carb
products should be decreased as it could cause them fine as they are labelling their product low carb
and carb free.

A new cookie with polydextrose and glycerine. The portion size was reduced. They decided to label
their product as “sugar free” and “low carb” would be their second attribute. They named these
cookies “Sensables”. They will going to launch this product for diet conscious people as at has other
health benefits.

By May 12, Sensables were introduced to the sales managers. The team was unable to workout
problems with blueberry muffins as there was too much sugar in blueberries, so they were replaced
with orange and chocolate chip finger cakes. The rest of the items were plain and chocolate
doughnuts and the chocolate and chocolate chip cookie bars. Schrutz addressed “Sensables” no
sugar, low carb, and portion control product. She said that the product will hit the shelves on 15 July
She received a standing ovation. Jim Roche, district sales manager said that “this is the winner”.

After Sensables were introduced customer testing took place. After that it was decided that
chocolate doughnut will be dropped as customer did not like the taste. Chocolate chip finger cake
and cookie bars receive more appreciation from customers. More orange flavour added to the finger
cakes. After all the changes were made product line Sensables were launched on August 10 in
Philadelphia. The launched received coverage in news papers and on radio too.

Sensables process compare with new product process:

Tastykake’s Sensable product line did not follow all the new product development process.

In idea generation phase they were not aware with the current competition and like dislike of the
consumers. They were confused in idea screening as they were first going to launch “Greta” and
then they changed it with Sensables with more healthy products. Later they got to know about the
side effects of maltitol when they were in product development and reduced its use. They skipped
the step of business analysis for the product line of Sensables. They have changed multiple things at
the product development process. Firstly they were going to launch the product as low carb product
but later they changed it with no sugar product and set low carb as it’s second attribute to attract
more customers who are diet conscious and want healthy products. At market testing step they
dropped chocolate doughnut as customer did not like the taste. They add more orange flavour to
the orange chocolate finger cakes.