Tasty Foods
Tasty Foods
Case Summary (Roxana):
Tasty Foods Corporation was founded in 1995 by Henry Abercrombie. The corporation is a food conglomerate that has major product lines including cereals, frozen dinners, canned sodas and fruit juices. Abercrombie founded the company with a small inheritance and with the idea of producing instant hot cereal. The firm’s hot cereal proved to be a success and was well accepted by the consumers. Over the years it grew by its acquisitions and product innovation ideas, expanding considerably over the last 40 years. In addition, Abercrombie proved to be an excellence business person that had a lot of vision and was very business-savvy. When Abercrombie’s health started deteriorating, he decided to hire his daughter, Abigail Abercrombie, with plans to have her succeed him eventually as president of the company.
Abigail, a Harvard MBA graduate, was hired as a management trainee. She has her own vision about the future of the company which includes introducing new product lines aimed at the athletically-inclined and health-conscious population, in order to maintain the company’s market position.
Since the company’s financial position is still strong, Abigail believes it is the perfect time to enter this market because of recent trends towards healthy lifestyles, especially for low fat and low sodium products and high energy drinks. She firmly believes that the company must follow these trends to avoid losing revenues and market position.
For these reasons Abigail and the Marketing and Development departments decide to launch a new athletic drink called “High Energy”. After it was developed they found that it contained 5 grams of fat per 8 ounce serving. Considering this value to be high for the target market and realizing it was late in the game to redo the formula, it was decided to launch a “lite” version of the energy drink after an acceptable market share was established. The new “lite” version would contain less calories
Case Summary (Roxana):
Tasty Foods Corporation was founded in 1995 by Henry Abercrombie. The corporation is a food conglomerate that has major product lines including cereals, frozen dinners, canned sodas and fruit juices. Abercrombie founded the company with a small inheritance and with the idea of producing instant hot cereal. The firm’s hot cereal proved to be a success and was well accepted by the consumers. Over the years it grew by its acquisitions and product innovation ideas, expanding considerably over the last 40 years. In addition, Abercrombie proved to be an excellence business person that had a lot of vision and was very business-savvy. When Abercrombie’s health started deteriorating, he decided to hire his daughter, Abigail Abercrombie, with plans to have her succeed him eventually as president of the company.
Abigail, a Harvard MBA graduate, was hired as a management trainee. She has her own vision about the future of the company which includes introducing new product lines aimed at the athletically-inclined and health-conscious population, in order to maintain the company’s market position.
Since the company’s financial position is still strong, Abigail believes it is the perfect time to enter this market because of recent trends towards healthy lifestyles, especially for low fat and low sodium products and high energy drinks. She firmly believes that the company must follow these trends to avoid losing revenues and market position.
For these reasons Abigail and the Marketing and Development departments decide to launch a new athletic drink called “High Energy”. After it was developed they found that it contained 5 grams of fat per 8 ounce serving. Considering this value to be high for the target market and realizing it was late in the game to redo the formula, it was decided to launch a “lite” version of the energy drink after an acceptable market share was established. The new “lite” version would contain less calories