New Product Development at Schwan Food Company- Innovation through Communication

            
 
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Case Details:

Case Code : MKTG082
Case Length : 17 Pages
Period : 1952-2003
Pub Date : 2004
Teaching Note : Available
Organization : Schwan Food Company
Industry : Food & Beverages
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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An Effort Well-Rewarded Contd...

More importantly, many of the new products introduced by Schwan were reportedly doing well in the US market. Red Baron Stuffed Pizza Slices got off to a very good start with customers across the US taking to them in a major way. In an industry where 75% of the new products launched failed, this was indeed appreciable.

Industry observers were unanimous in their opinion that Schwan had taken the exercise of new product development to never-before heights. Schwan sources too agreed that its customer-centric approach towards developing new products was a unique one in that it involved the entire company as well as certain external parties.

Darci Eckerman (Eckerman), the National Brand Manager for the Red Baron brand, had this to say about the product development efforts behind the Red Baron Stuffed Pizza Slices, "This is the most significant and innovative of Red Baron's products to date. The product is a prime example of long-term strategy and teamwork."

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Background Note

About Schwan

Schwan was started as Schwan's Home Service (SHS), an ice-cream home delivery business in March 1952 by the Marshall-based (in Minnesota, US) Marvin Schwan (Marvin). The primary motive for starting this venture was to help Marvin's family dairy business survive in the wake of unfavorable changes in the regulatory set-up.

Focused efforts on the part of the family helped SHS grow rapidly. In 1965, Marvin started selling frozen pizza as well from the ice-cream delivery trucks to expand his product portfolio.

The frozen pizza business proved to be very successful and Marvin decided to further explore the possibilities in this area.

In 1969, SHS acquired a pizza factory in Salina (Kansas) and started selling pizzas to retailers as well as to institutional buyers such as schools, universities and hospitals.

Over the next three decades, the company grew largely through the acquisitions route.

The SHS label marketed frozen pizzas under three brand names: Tony's, Freschetta and Red Baron. The Red Baron range was introduced in 1976 as an umbrella brand to offer 'throughout the day' snacking solutions to customers...

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5] 'Red Baron Soars with Teamwork,' www.foodprocessing.com, April 2003.

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