Case Study: Tootsie Roll Industries

Case Study: Tootsie Roll Industries

I. EXECUTIVE SUMMARY

The report given is about a Chicago based company called Tootsie Roll Industries, Inc. Tootsie Roll Industries is an old company that has been manufacturing and selling candy for more than 110 years and has come a long way after a number of merger and acquisitions to add to the brands’ product line. The company currently operates in 30 countries. However, it is imperative that the company operations should be extended to other countries to make Tootsie Rolls a household name in every country.

 As an International Business Development Manager of this company, I have suggested expanding the company operations to Pakistan where the consumers look for newer products. And even though the local competition provides candies at lower prices, the lack of quantity and quality of the local candies has made them undesirable for the brand conscious middle and upper class of the country. Moreover, the imported chocolates of the companies Hershey’s, Cadbury, Nestle and Mars can not be afforded often by the lower middle and the middle class who also have desire to consume high quality sweets and chocolates.

The report discusses the company operations, target market, brands and core competencies. Then the report presents recommendations about the target country and comprehensively analyses and discusses how and why this country is suitable for expanding the company operations.

II. COMPANY ANALYSIS

Tootsie Roll Industries is a manufacturer of confectionery in the United States. Its best known products / brands have been Tootsie Rolls which are “chewy chocolate -flavoured candies” and Tootsie Pops, “hard candy lollipops filled with chewy chocolate-flavoured Tootsie Rolls”. Along with these, the company has added to its brands by acquiring other confectioners.

The company was established in 1896 by an Austriant immigrant called Leo Hirshfield who brought his own recipe when he came to America. He first started to produce Tootsie Rolls in a small store in New York City. In 1917, the company was called The Sweets Company of America, and in 1966, adopted its current name of Tootsie Roll Industries, Inc.

Since its inception, the company has expanded by acquiring several famous brands of confections such as Mason Division from Candy Corporation of America, Cellas' Confections, The Charms Company, The Warner-Lambert Company (excluding gum ; mints), Andes Candies, and Concord Confections. “Tootsie Roll Industries currently markets its brands internationally in Canada, Mexico, and over 30 other countries. The company's heaquarters are located in Chicago.”

The company has been operating successfully under the auspices of the married team of 87-year-old chairman and CEO Melvin Gordon and 75-year-old president and COO Ellen Gordon who control 80% of the company's voting power. The company has been known to use the same formula for over 100 years. Its Charms and Tootsie Pops brands make it one of the largest lollipop producers in the world.

According to Hoover’s Fact Sheet, Tootsie Roll Industries, Inc. has total of 26 competitors in the confectionary and candy industry in the countries in which it is operating. However, the most important ones are Hershey, Mars and Nestlé. [1]Mars is considered to be the industry leader manufacturing high quality and high energy brands such as Twix, Mars, Snickers, Milky Way, M;Ms, etc. that not only cater to the children but adults of all ages as well. Read about a ll the wrong moves

Customers/ Target Market

The company mostly targets the children and to some extent the younger population (teenagers) up to the age of 18. However, Tootsie also targets the adults as well for using its products in the offices, meetings, social gatherings, parties, and special occasions so that they become a family product rather than a child’s. Even though, candies and sweets are products that are primarily for the children, the products are used by and popular among all ages both young and old.

During the Korean War, Tootsie Rolls was very famous among the armed forces. According to them, Tootsie Rolls reminded them of their country America, and gave them hope and kept them alive during the war. US military has since been a major part of the loyal customers of Tootsie products. Tootsie Rolls has been a nostalgic reminder of home bringing them good memories about their country.[2]

Also, the brands such as Charms Family Fun and Child’s Play specifically cater to family occasions such as Halloween and birthday parties. Moreover, they do not cater to any specific income class; hence they are affordable and liked by affluent as well as the middle class.

Products and Services

The company is basically into manufacturing candies and confectionery industry. Tootsie’s core products are candies and confectionery items such as chocolates, toffees, caramel sweets, bubble gums, lollipops, jellies, cotton candy, etc. It has added to its original brand of Tootsie Rolls by mergers and acquisitions and has extended its product line and customer base since its inception.

Some famous brands manufactured and sold by the company are as follows:

1. Tootsie Rolls

Tootsie Rolls was the first product that was produced and sold by Leo Hirshfield in his small shop that brought the company fames. “Hirshfield hand rolled and wrapped his chewy, chocolate flavored creation and named the candy after his 5-year-old daughter, Clara, whose nickname was "Tootsie." Tootsie Roll was the first wrapped penny candy in America.”

Today, Tootsie Rolls are produced using the same basic recipe that was used by its creator over a century ago. About 62 million Tootsie Rolls are produced every day. Tootsie Rolls now come in a variety of shapes and sizes.

2. Tootsie Pops

Tootsie Roll Pops was the first lollipop with a soft chewy center. Over the years, Tootsie Pops have become part of American history. They have been featured on classic television programs and several motion pictures throughout the years. Tootsie Pops are the No. 1 selling lollipop and are very popular among the consumers.

3. Dots

The acquisition of the Mason Division of Candy Corporation of America added two famous "theater candies" to the Tootsie Roll candy family: Mason Crows and Mason DOTS. DOTS are one of the best-known brands of gumdrops in America.

Other brands

Other well-known brands are Tootsie Fruit Rolls, Frooties, Caramel Apple Pops, Junior Mints/ Junior Caramels, Charleston Chew, Cella Cherries, Charms, Andes, Blow Pops, Sugar Daddies/ Sugar Babies, Fluffy Stuff Cotton Candy, Double Bubble, Razzles, Cry Baby and Nik- L- Nip. Two more brands Child’s Play and Charms Family Fun are specifically for occasions such as Halloween, family gatherings, parties, Easter, Christmas, and any other social events. They contain assortments of all the famous brands of Tootsie Roll Industries.

Services

Services offered are online shopping by the individual customers, or bulk buying for retailers, or distributors.

Also, the website provides fun stuff for the children like comics, games, memories relating to a particular brand, recipes using Tootsie products, bubble blowing contests and the nutritional benefits of the products. The most popular is ‘How many licks?’ contest which sends certificates to the children for using the brand Tootsie Pops and for consuming lollipop after a certain number of licks.

Core Competencies

Company Resources

The company has many invaluable human and capital resources. One of the Tootsie’s corporate principles states that the company strives to acquire and retain the human resources of high caliber for each job. The company also manufactures its own products and has to continuously innovate to improve the quality of its products.

Moreover, the company has expanded its product line by mergers and acquisitions and by expanding its operations to Mexico and Canada and importing to 30 countries in different parts of the world. The main challenge faced by the company is intense competition for maintaining retail shelf space.

According to the Annual Report, 2006, Tootsie’s competitive advantage lies in its well-known brands which offer high volume sales for retailers and attractive values for consumers. Also, sales are high during Halloween, newer introductions (brand extensions) and social gatherings during which the Charms Family Fun and the Child’s Play are the most popular brands that are sold.

Capabilities

Tootsie Roll Industries has many strengths, which has helped the company maintain its favorable place and niche in the market. TRI has two main distinct competencies: its brand names portfolio and very effective production capabilities. Its brands portfolio is very wide and diversified and the length and the depth of the brand are very extensive. Also, Tootsie varies the ingredients to improve the quality and to reduce its cost.

The company has successfully maintained half of the market share of the industry. It has 50% of the taffy and lollipop market segment of the candy industry. Moreover, another strength is its access to distribution networks. Despite strong competition from the industry giants such as Mars, Hershey and Cadbury, its robust and established supply chain has helped Tootsie do well in the industry. The financials show that sales and the profits are increasing and the company is doing well.

Also despite its size, it has managed to get good shelf space in most retail and discount stores. It was able to capitalize on that to get good shelve space for the other products it sells, using Tootsie Roll’s distribution network. In addition to this, it can even adapt pretty well to external forces as the company can change the formula of its candies according to fluctuations in commodity prices in order to keep costs as low as possible.

The most important core competency is that it is oldest in the industry and has stuck to its original formal that was used by its creator. Also, the Tootsie Rolls was the first toffee that was wrapped. Since, then, it has tried to improve its packaging to reduce its costs and to improve the quality and freshness of the products.

Tootsie’s brands that are especially for occasions such as Halloween and family events, are very popular among the consumers and the sales during those times are higher. Also, Tootsie Roll is such a strong brand that it can be a distinct competency.

Another distinct competency can be manufacturing, because TRI is able to have extensively customized machinery built to increase production efficiency. This helps keep production costs low, and adapt to changes in supply and demand.

Also, the company outsources the functions that others can do cheaply and efficiently to reduce costs and to increase production efficiency. That is why Tootsie seeks to effectively avail vertical integration opportunities that come its way. Other core competencies are autonomous production, growing US and international markets and unique marketing.

Even though Tootsie’s sales are growing, it is not fully taking advantage of the growth of the potential in the market due to inadequate advertising. It’s advertising attempts are rather subtle and not so persuasive like other companies. It seeks to advertise its brands using jingles, movies, comics and cartoons. Even though, these marketing efforts are sufficient for increasing the revenues, they are not enough to fully exploit the market potential.

Tootsie Roll Industries Inc. must make marketing and innovation its core competency and top priority to compete with the industry giants like Mars, Nestle, Cadbury and Hershey. Moreover, the company should develop a long-term strategy to get competitive edge over others in this highly competitive industry.

Current operating capacity

Tootsie Roll Industries currently markets its brands internationally in Canada, Mexico, and over 30 other countries. The company's heaquarters are located in Chicago. According to the Annual Reprot 2006, the sales and profits of the Mexico Division are doing well. Also, reorganisation of the Canadian division has resulted in sales growth and increased profitability. Additionally, Tootsie’s export division, which reaches approximately 75 countries in Europe, Asia, and South and Central America, is experiencing increased sales and profits every year.

All the Tootsie brands are produced according to the demands. The highest production is of Tootsie Rolls: 62 million every day. Also, Tootsie Roll is also the biggest lollipop producer in the world.

Need for global expansion at this time
As the company’s International Business Development Manager, I would recommend the company to expand its operations and presence in other countries such as India, Pakistan, Bangladesh, etc. This is because there is another baby boom to come and there is a lot of potential for growth in the market. This potential is not being fully exploited by the company. Also the market in other countries is ripe for such products that are not expensive, affordable and are of high quality.

In this report, I recommend the executives of the company to expand its brands’ presence in Pakistan. Although, the manufacturing should not start right away until the consumers are aware of the brands and have become loyal to them.

III. TARGET COUNTRY ENVIRONMENTAL ANALYSIS

Demographic characteristics
Pakistan has a majority of younger population with increasing GDP and disposable income. Also with the awareness of family planning in the middle class, there are lesser number of members in a family thus, more disposable income is available for a person to spend. Hence, the children can spend money on their whims from time to time.

Moreover, there is an increase in the per capita income which is showing signs of emerging middle class. Hence, the rise in the incomes is making spending easier and many of the imported items affordable.[5]

The demographics of the country is also changing rapidly with over 60% of the population in the age bracket of 25 to 45 years old. The demographics of Pakistan show that there is more youth and lesser number of older members of the population. Also, since the awareness of the importance of the education is increasing, there are more educated youth who need jobs.

Hence, opening up a branch in Pakistan will prove beneficial for the company as well as for the population because it will fulfill the consumption needs of the population and also help in reducing unemployment.

Target location(s) description

The subsidiary for Tootsie Roll Industries should be opened in Karachi, Lahore and Islamabad because that’s where the affluent class of the Pakistani population lives. These people are brand conscious and also quality conscious and can afford to spend money on goods other than necessities of life.

Cultural characteristics

The culture of Pakistan is more family- oriented, even though it is changing nowadays due to influence from the foreign media. More importance is given to family affairs such as weddings and other get together. Also, other social gatherings occur at religious important days such as Eid. Most of the rich also dine out during Ramzan for keeping and breaking fasts at Sahar and Iftar times.

Hence, the company Tootsie Roll Industries can successfully market its family oriented brands such as Child’s Play and Charms Family Fun for Eid and other family gatherings.

Workforce characteristics
Since the demographics is changing and most of the population is falling in the age bracket of 25 to 45 years old and also because the awareness of importance of education is increasing, there is enough educated manpower and talent for the company to hire from the unemployed youth.

Relevant trade and investment policies and laws
Trade and investment related laws and policies are very favorable in Pakistan. The government of Pakistan is giving special incentives to all the companies in all the industries to come and invest in Pakistan.

Moreover, the infrastructure and investment policies are favorable so that the companies are attracted and earn a higher return on investment.

Politics and laws that may affect entry

The only things that may hinder the entry are unpredictable political and law and order situation prevailing in the country. Due to conflicts between the government and the judiciary and the media, entry of the company may be affected.

Another factor that might affect the entry is the religious sector that might find flaws with the haram ingredients and or with anything unethical related to the company.

Currency and financial market issues
The currency has been on a constant depreciation which might make the local ingredients cheaper. However, the financial institutions and the government of Pakistan do provide financial assistance to the entrepreneurs who want to invest to set up their business.

Also, investment banks, though they are in initial stage, have been set up to help the businesses to go public and earn mandates.

Market transitions and development issues
The market in Pakistan is still in developmental stage and is not yet mature. Therefore, there is lot of potential in the market for the upcoming entrants to exploit in the confectionary industry.

Moreover, since the per capita income is increasing the economy is becoming better; there is a lot of potential in the market to exploit. Also the consumers are becoming brand and quality conscious and the affluent class nowadays wants the imported items.

Hence Tootsie Roll can benefit a lot if it expands its operations in Pakistani region.

IV. TARGET MARKET ANALYSIS

Description of customers and characteristics
The demographics show that the population mostly falls in the age 25-45 yrs. Also, there are more children who are spoiled by their parents these days who prefer to provide for their children. Mostly both the parents are working these days so they tend to neglect their children and spend lesser time with them. Hence, they make it up by buying their children sweets of all kinds.

Moreover, snacks and sweets are popular with the teens and students who prefer sweet stuff to provide them with instant energy. Also, the consumers want good quality chocolate that is affordable as well and is not as expensive as the other imported chocolates.

Hence, Tootsie can grab the market quickly if it keeps its costs and hence prices comparable with the local confectioners such as Hilal and Candyland.

Estimation of market size

The market size of the confectionery industry comprises of the affluent and the upper middle class who can afford the imported chocolate, candy and sweets. However, if Tootsie can try to keep its prices low, the market size can also accommodate the lower middle class which also wants good quality sweets at lower prices.

Local competition analysis

The structure of the local confectionery industry in Pakistan is a little fragmented. The local industry comprises of some companies that are foreign such as Nestle and Cadbury which are manufacturing some of the brands in Pakistan. Other local companies such as Candyland, Hilal and B.P. are the well-known local companies in Pakistan.

Overall the industry is lead by the two major competitors Nestle and Cadbury who closely compete with each other. Besides these, Candyland leads the local companies in the industry and has given importance to quality in its products. The products very from sweets, toffees, caramel chews, chocolate bars of all kinds to marshmallows.

If Tootsie Roll Industries sets up its manufacturing operations in Pakistan, its cost effective production operations and diversified brands will provide the consumers with something new and different and of good quality at a lower price. Moreover, in my opinion, they will be more receptive to the comics, ‘How many licks?’ contest and other ‘value added services hat help in the marketing of the products. Also, the brands that cater to the social gatherings and occasions will help in the marketing and creating advocates for the company.

However, Tootsie Roll will face intense competition from Cadbury, Nestle, Candyland and Hilal which might create barriers to entry such as product diversity, lower prices, established distribution channels and brand loyalty among the consumers. Also, these brands are well known and the brand awareness is there. The marketing done by these companies may become aggressive and they might start offering promotions to increase their sales.

Therefore, Tootsie Roll needs to recognize the market niche and concentrate on producing newer products that are not offered by its competitors. For instance, its cotton candy might be a good idea because it is not available easily even in the supermarkets.

Estimated market share and sales expected

I am of the view that the market share and the sales will rise gradually. The market share may be 5-6% in the first year. But it is expected to rise with the brand awareness and brand loyalty. Customer satisfaction and creating advocates is a must right from the start to encourage repeat purchase. I recommend that Tootsie should first create market for its products in Pakistan, and then it should setup a manufacturing plant to increase its sales and fully exploit the market potential.

V.    STRATEGIC ALTERNATIVES

Alternatives for market entry
S.No.
Advantages
Disadvantages
1. Opening franchises of Tootsie that only sell Tootsie products

This might be a good idea if the demand is higher and the product category is diverse enough to attract lots of consumers everyday. This will provide and exclusive outlet for the consumers to visit if they wan Tootsie products.
However, this might prove to be expensive if the sales are slow. Also, it will give the lower middle class a wrong message that Tootsie products are for the rich class.
2. Finding a local exporter in the country to create the brand awareness in the local market

This will be beneficial for the company since it will help in creating brand awareness, loyalty and in obtaining feedback and in conducting market research for the feasibility study before making huge investments to bring production and marketing operations to the country.
However, this might also give the lower middle class a wrong message that Tootsie products are for the rich class because tne imported items are usually expensive and are bought by the upper and upper middle class people.

Moreover, since everything can be counterfeited easily in Pakistan, there is a threat from the counterfeit Tootsie brands n Pakistan. That is why the original Tootsie Roll will have to make itself unique for its consumers.
3. Setting up production and marketing operation in Pakistan

Setting up production in Pakistan will help lower the cost of production and hence the prices. This might increase the customer base and increase sales and market share.

Also the company can assure the consumers that local halal ingredients have been used.
This will require a lot of startup investment. Also, the company will have to continuously spend in innovation to improve the quality and diversify the products. This might increase the marketing expenses and the investment costs, thus raising the price of the product.

Alternatives for form of multinational corporation and relevant characteristics

The company could set up either production and marketing or only the marketing division in the country. However, this will call for heavy investment into the capital, machinery and in establishing the distribution channels. Also, it is expected that this expected entry might invoke a reaction from the existing local competitors.

Apart from setting up the company operations in Pakistan, the company may also offer to open a franchise in Pakistan. The franchisee must be chosen with care to determine whether it has enough funds for investing into the company operations and whether it imbibes the value system of the parent organisation.

Also, to create a strong demand for the brands before crating a company presence, the company can also find local importers from Pakistan who are willing to import considerable amount of the Tootsie Roll brands. This would help establish brand loyalty and brand awareness in the upper and middle class because physically creating a presence in the country. Moreover, this would benefit the company because the company will not have to make any hefty investments into the country and the distribution channel would be established prior to making an entrance into the country.

Marketing alternatives

The marketing practices that are followed by the parent company should be adopted. For instance, there should be jingles, comics, cartoons, and recipes for using these brands in newer ways so that the children are enchanted by the brands and become loyal to them. Also, there should be bubble-blowing contests and ‘How many licks?’ contests for the children that are held by the parent company. Moreover, these will help increase interaction between the company and the consumer and help gain feedback.

However, considering the literacy rate in Pakistan, the jingles, cartoons and comics may have to be translated to Urdu so that the population understands what is being said about the brand and retains the name of the brands for consumption. Using English might also convey a wrong message to the lower middle and lower income group that the brand might be for the rich only.

Human resources alternatives

Initially, during the stat of the marketing operations, there should be an expatriate manner sent to Pakistan to work with the locals to train them so that they incorporate the parent company’s principles, mission, vision and most importantly, marketing techniques such as the comics, cartoons and the ‘How many licks?’ contest. Once, the locals have been trained and the company has been established, an in-depth market research should be conducted under the auspices of the parent company or the expatriate manger to determine the feasibility of the setting up a factory for manufacturing the products using local products.

Extensive training should be provided to the local nationals who will be hired. They should be trained in the marketing techniques, handling finances, distribution, IT so that they send the company to new heights in the new country.

Organizational structure, control mechanisms, etc. that would be useful

The company should be structured in the same way as the parent company so that uniformity in everything is prevailed. The parent company Tootsie is organized according to the function. Then a small team in each function should be responsible for each brand so that they are dedicated to growth that brand and make it successful.

VI. REFERENCES

Tootsie Annual Report for the year 2006, Retrieved 20 June, 2007 from <http://www.tootsie.com/pdf/annualreport2006.pdf>

Tootsie Roll Industries website, Retrieved 20 June, 2007 <http://www.tootsie.com/history.html>

Company Information Tootsie Roll Industries, Inc., Retrieved 20 June, 2007 <http://www.sec.gov/cgi-bin/browse-edgar?filenum=001-01361&action=getcompany>

“Tootsie Roll Idustries: Company Report” Hoover's Fact Sheet , Retrieved 20 June, 2007 ;http://www.hoovers.com/tootsie-roll/--ID__11490--/free-co-factsheet.xhtml>

“Tootise Roll History ”, Retrieved 20 June, 2007 ;http://www.victoryseeds.com/candystore/confectioners/tootsie.htm;

“Tootise Roll Case internal and external analysis distinct competencies”, Retrieved 20 June, 2007 ;http://www.freeforessays.com/members/show_essay/Business-T-1-001001110101000.html;

Concord Confections Inc. Website, Retrieved 20 June, 2007 ;http://www.concordconfectionsinc.com/product/product.html;

Dubble Bubble Website, Retrieved 20 June, 2007 ;http://www.dubblebubble.com/;

“Tootsie Roll Industries”, Retrieved 20 June, 2007 ;http://www.answers.com/topic/tootsie-rolls?cat=biz-fin;

Economic Survey of Pakistan, 2004- 2006

Hilal Cofectionery Pvt Ltd. website, Retrieved 20 June, 2007 ;http://www. hilalcandy.com/productcategory.html;

VII.          APPENDICES

History of Tootsie Roll Industries Inc.

1896
Austrian immigrant Leo Hirshfield brings to the U.S. his recipe for a chocolaty, chewy candy, which he begins producing in a small store in New York City.

Hirshfield names the candy after his five-year-old daughter, whose nickname is "Tootsie."

1905
Tootsie Rolls are now produced in a four-story candy factory in New York City.

1917
The name of the company is changed to Sweets Company of America.  Sweets Company of America begins to advertise nationally.

1922
Sweets Company of America is registered with the New York Stock Exchange.

1931
The Tootsie Pop, consisting of hard candy on the outside and chocolaty, chewy Tootsie Roll on the inside, is invented.

1938
As the country emerged from the Depression, sales continued to grow. The company moves from its 35,000 square-foot space in New York City to a 120,000 square-foot plant in Hoboken, New Jersey. The installation of conveyor belt systems marks the appearance of mass production techniques.

1941
A 50,000 square-foot addition is built onto the factory.

1942
The candy is included in World War II rations and becomes highly valued by the armed forces for its ability to withstand severe weather conditions and give troops "quick energy."

1945
With raw materials released in greater quantities, production increases and quickly surpasses pre-war levels.

1948
William B. Rubin becomes President of the Sweets Company of America.

1950
In the early years of television, the company sponsors popular children's shows including Howdy Doody, Rin Tin Tin and Rocky & Bullwinkle.

1962
Melvin J. Gordon becomes Chairman of the company.

1966
The company's name is changed to Tootsie Roll Industries, Inc.

Tootsie Roll opens a Midwest facility in the Ford City Industrial Park on Chicago's southwest side.

1968
Tootsie Roll expands operations to include the Philippines and other areas of the Far East.

1969
Tootsie Roll expands operations into Mexico.

1970
Tootsie Roll expands operations to include Canada.

1972
In June, the company acquires the Mason Division of Candy Corporation of America. The acquisition adds two famous candy names -- Mason Dots and Crows -- to the Tootsie Roll family.

1978
Ellen Gordon is named President of Tootsie Roll Industries, Inc. At this time, she is the second woman to be elected president of a company listed on the New York Stock Exchange.

1985
Tootsie Roll acquires Cellas' Confections, Inc., a chocolate covered cherry manufacturer operating in New York City, since 1864.

1988
Tootsie Roll acquires the Charms Company. Combined production of the Tootsie Pop, Blow Pops, and Charms line of lollipops makes Tootsie Roll Industries, Inc. the world's largest lollipop producer.

1993
The company acquires the caramel and chocolate brands of Warner-Lambert Company, which includes Junior Mints, Sugar Daddy, Sugar Babies and Charleston Chew.

1996
Tootsie Roll celebrates its 100th anniversary.

1999
Junior Mints celebrates its 50th anniversary.

2000
Tootsie Roll acquires O'TEC Industries and begins to manufacture Fluffy Stuff Cotton Candy.

Tootsie Roll acquires Andes Candies. The Andes brand includes the Andes Créme de Menthe Thins, Cherry Jubilee Thins and Toffee Crunch Thins as well as a line of Mint Patties.

2002
Tootsie Roll celebrates is 100th anniversary of being listed on the New York Stock Exchange.

2003
Company production reaches more than 60 million Tootsie Rolls and 20 million Tootsie Pops each day.

2004
In August 2004, Tootsie Roll Industries acquires Concord Confections of Toronto, Canada, a market leader in the bubble gum category, known for exceptional quality. Concord Confections' products are sold primarily under the Dubble Bubble brand that was introduced in 1928 and are known throughout the world. Other Concord products include Razzles, Cry Baby and Nik-L-Nip.

Source: Tootsie Roll Industries website, Retrieved 20 June, 2007 <http://www.tootsie.com/history.html>

Brands by Tootsie Roll Industries
1. Tootsie Rolls

This was the first  product that was produced and sold by Leo Hirshfield in his small shop that brought the company fames. “Hirshfield hand rolled and wrapped his chewy, chocolatey creation and named the candy after his 5-year-old daughter, Clara, whose nickname was "Tootsie." Tootsie Roll was the first wrapped penny candy in America.”

Today, Tootsie Rolls are produced using the same basic recipe that was used by its creator over a century ago. About 62 million Tootsie Rolls are produced every day. Tootsie Rolls now come in a variety of shapes and sizes.

In addition to its popularity with consumers of all ages, Tootsie Rolls have been a nostalgic reminder of home for our service men and women during every conflict since WWI. Tootsie Roll is one of the few century-old products with such a close resemblance to the original.

The new metallic wrapper, introduced in 2002, delivers more shelf appeal while delivering the same traditional taste. The production and packaging process have been automated by state of the art equipment and packaging technology. The shiny metallic wrapper is another page in Tootsie Roll's history of growth and innovation, with much more to come.

Tootsie Roll Mini Chews start with the chewy goodness of original Tootsie Roll. Soft Midgee shaped, bite size morsels are covered in real milk chocolate. They're perfect for snacking and sharing.

Contact your local Tootsie Roll Sales Representative today.
Tootsie Roll Mini Chews - "Your new favorite candy!"

2. Tootsie Pops

In 1931, the famous Tootsie Roll Pop was born. Tootsie Roll Pops were a revolutionary new confection, as they were the first lollipop with a soft chewy center. Over the years, Tootsie Pops have become part of American history. They have been featured on classic television programs and several motion pictures throughout the years.

Tootsie Pops are the No. 1 selling lollipop and are widely known by consumers trying to answer that age-old question: "Mr. Owl, how many licks does it take to get to the center of a Tootsie Roll Pop?" To date, Tootsie Roll has received many thousands of letters, each with a response unique to the author. The real answer may never be known!!

http://www.tootsie.com/trop_pop.htmlTootsie Roll Pops have just recently been offered in a new unique miniature size called Tootsie Pops Miniatures. These smaller versions of our regular size Tootsie Pop are perfect for giveaways and other reward occasions. Some people serve Tootsie Pop Miniatures as a warm greeting in their offices and homes or as a treat at parades.

3. Tootsie Fruit Rolls

Like their cousins, the Tootsie Rolls, chewy Tootsie Fruit Rolls are a luscious treat. Individually wrapped, bite sized Tootsie Fruit Rolls come in 5 flavors: Cherry, Lemon, Orange, Vanilla & Lime. They're available bagged, or by the piece at stores with bulk candy sections.

Tootsie Fruit Rolls are also available in Tootsie Roll's Child's Play Assortment of Tootsie Roll favorites. Many people put them in a jar or bowl at their workplace as a friendly welcome. Others keep a few on hand as a sweet treat for the little ones in their lives.

4. Frooties

Tootsie Roll Frooties are soft chewy candies that carry the taste of fresh fruit. Individually wrapped, bite-size Frooties were invented in the 1970's. They are one of the few penny candies still available in today's marketplace. They come in 9 fun fruity flavors: Banana-Berry, Green Apple, Grape, Smooth Cherry, Blue Raspberry, Fruit Punch, Pink Lemonade, Strawberry and Watermelon.

Frooties are sold in bags or by the piece at stores with penny candy sections. A handful of Frooties slip into a purse or pocket for a quick, on-the-go treat to satisfy any sweet tooth. In addition, Frooties are also a great parade crowd-pleaser.

5. Dots

In 1972, Tootsie Roll Industries acquired the Mason Division of Candy Corporation of America. The acquisition added two famous "theater candies" to the Tootsie Roll candy family: Mason Crows and Mason DOTS.

Today, delicious DOTS are one of the best known brands of gumdrops in America. DOTS come in three varieties, Tropical, Wild Berry and Original. Toostie Roll Industries produces more than 16 million Dots a day in their Chicago Plant.

Based on the popularity of Original DOTS, mouth-watering Wild Berry DOTS were introduced in 2000. Wild Berry DOTS are sweet, chewy gumdrops coated with tart, tangy flavor crystals that pack a sour punch.

Like a cool summer sea breeze, Tropical DOTS offer a refreshing variety of exotic flavors. In 2003, Tropical DOTS began sporting a new "ocean horizon" package and new, improved fresh flavors including island nectar, wild mango, grapefruit cooler, carambola melon, and paradise punch.

Crows were invented in the 1890's by confectioners Ernest Von Au and Joseph Maison. Originally, Crows were to be called "Black Rose", but the printer misheard the name as "Black Crows" and printed wrappers with the wrong name on them. The sweet, black licorice-flavored gumdrops are as delectable today as they were more than a century ago.

6. Child’s Play

Tootsie Roll Child's Play brand features an assortment of all of Tootsie Roll Industries top selling items in one bag. This brand was introduced during the 1985 Halloween season and quickly became the top selling kids variety bag.

Each Child's Play bag contains our most popular items: Tootsie Rolls, Tootsie Pops, Mason Dots, Tootsie Flavor Rolls and Tootsie Snack Bars. Child's Play variety bags are available in bags sized from 15 ounces all the way up to and beyond 4 lbs.

7. Caramel Apple Pops

Tootsie Caramel Apple Pops were introduced in 1995 to rave reviews and was an immediate hit with children and adults of all ages.

Tootsie Caramel Apple Pops offer a unique combination of delicious green apple hard candy and a chewy caramel soft candy. The eating experience closely resembles that of a traditional caramel apple.

8. Junior Mints/ Junior Caramels

Tootsie Roll Industries acquired Junior Mints from the Warner-Lambert Company in 1993. The product was developed by James Welch and launched into the market in 1949. Welch named the candy specifically after his favorite Broadway stage performance, Junior Miss.

Junior Mints with its chocolate covered, creamy mint, center, are a popular item in theaters and at home. Tootsie Roll Industries produces over 15 million Junior Mints a day.

Junior Caramels are a rich blend of Milk Chocolate and soft, easy to chew caramel. Bite sized caramel centers are covered with just the right amount of chocolate and are ideal for snacking and sharing with friends of all ages.

9. Charleston Chew

Tootsie Roll Industries acquired Charleston Chew from the Warner Lambert Company in 1993. The Charleston Chew was originally launched in 1922 by its previous owner, the Fox-Cross Candy Company, and was named after a dance craze in full swing at the time, the Charleston. Currently, Charleston Chew bars are offered in, strawberry, chocolate, and vanilla flavors. Many people still freeze these bars and crack them to enjoy them.

In 1998, Tootsie Roll introduced a bite size Charleston Chew called the Charleston Mini Chews. These smaller pieces deliver the same great taste as the full size vanilla flavored Charleston Chew. The Mini Chews have become irresistibly popular with kids of all ages.

10. Cella Cherries

In 1985, Tootsie Roll Industries acquired Cella's Confections, Inc., a manufacturer of premium chocolate covered cherries that have been popular since 1864.

Cella's cherries are a high quality chocolate covered cherry with a 100% liquid center. Cella's not only are an excellent gift item but can be found at checkouts as well.

11. Charms

Tootsie Roll Industries acquired the Charms Company in 1988. The Charms products consist of Blow Pops, Charms Squares, Charms Flat Pops, and Zip-A-Dee Mini Pops.

Charms Flat Pops come in a variety of flavors, as well as Sweet, Sweet & Sour and Sour and the newest flavor offering, Fluffy Stuff Cotton Candy.

During seasonal times, you can also find Charms Pops available in several unique shapes. These include, Dead Heads, Pumpkin Pops, Santa Pops, Valentine Heart Pops and the Easter Pops.

The original Charms Co. offering was the Charms Squares. Still sold today, this item has been especially popular with America's armed forces.

12. Andes

Originally founded in 1921, Andy's Candies produced a variety of boxed chocolates, which were sold on the store premises. As the business grew over the years, a factory was built and the name changed to Andes Candies.

In 1950, the Crème de Menthe candy piece was added to the Andes stores' product line. This three-layer mint has remained the foundation of the brand and today is the #1 After Dinner Mint on the market.

Over the years Andes has expanded to include a variety flavors and packages including the popular Cherry Jubilee, Mint Parfait and Toffee Crunch Thins. Andes Crème de Menthe flavor can be found in a number of different packages including our new 14 pc. convenience pack and larger 25¢ piece.

Recently, Andes has become a well-known ingredient in many items. Many retailers across the country are stocking Andes Crème de Menthe Ice Cream, Cake Rolls and Cookies. In the fall of 2003, Andes Crème de Menthe Baking Chips were introduced. These chips have the same great taste as traditional Andes and maintain our famous 3-layer design.

13. Blow Pops

Charms Blow Pops are the original 2 in 1 candy treat with flavorful hard candy outside and a large bubblegum center inside. They are sold individually or in bags at retailers across the country. Known for their great taste, the Charms Co. produces many unique flavors of Blow Pops such as Blue Razz Berry, Black Cherry, Kiwi Berry, Way 2 Sour as well as assorted flavor boxes.

14. Sugar Daddies/ Sugar Babies

Initially developed in 1925 by the James O. Welch Co. and called the "Papa", the product was designed as a rich milk caramel on a stick for easy handling. In 1932 the name was changed to Sugar Daddy to suggest a wealth of sweetness. It has since become a well-known product to consumers of all generations. To this day the Sugar Daddy pops continue to deliver long-lasting caramel enjoyment.

Following the success of the Sugar Daddy, the James O. Welch Company introduced Sugar Babies in 1935. Being part of the family, the product is based on caramel, too. But in contrast to the Sugar Daddy pops, the Babies come in a bite-sized, pan-coated chewy form. Having been on the market for almost 70 years, Sugar Babies enjoys a high degree of brand awareness.

15. Fluffy Stuff Cotton Candy

In the early days, cotton candy was sold primarily at fairs and exhibitions and was limited to immediate consumption due to its very short shelf life. Today however there is Charms "Fluffy Stuff", a one of a kind cotton candy made into multi-flavored pillows and packed into various sized packages. "Fluffy Stuff" is produced and packaged in our state-of-the-art production facility without being touched by human hands until you open the package and have your first flavorful taste. We produce "Fluffy Stuff" cotton candy in moisture-resistant and air-tight bags for an enhanced shelf life and fresh taste that's available all year! Now everybody can enjoy the "taste of the fair" whenever they want throughout the year.

Charms "Fluffy Stuff" comes in 0.6 oz., 2.1 oz., and 3.1 oz. bag sizes and is available at leading supermarkets, drug stores, and mass merchants.

16. Charms Family Fun

Family Fun is an assortment of Charms Blow Pops, Sweet Pops, Zip-A-Dee-Doo-Da Pops, Sugar Babies, and Sugar Daddy available primarily during Halloween. Family Fun comes filled with those brand name favorites in either 27 oz. or 3 lb. bags and represents an excellent value choice in sugar confectionery.

17. Double Bubble

Dubble Bubble is a brand of bubble gum invented in 1928 by Philadelphia-based Fleer. Walter E. Diemer--an accountant at Fleer--enjoyed experimenting with recipes during his free time. In an interview a few years before his death he said "It was an accident". In 1937, the gum went on the market nationally. The gum only holds its flavor for a short time, then it becomes flavorless; however, it is when the gum is flavorless that it is best for blowing bubbles.

It featured a comic strip that came with the gum starting in 1930, featuring twin brothers Dub and Bub. They were replaced by a new character named Pud in 1950.

Dubble Bubble was distributed in rations during World War II. In 1945, Fleer extended the line to apple, grape, and watermelon flavors. In 1954, the company began sponsoring bubble gum blowing contests--which grew in popularity and were eventually televised. In 2000, this spirit was resurrected when Concord Confections (which bought Dubble Bubble in 1998) began a nationwide bubble gum blowing contest for children aged 12 and younger in Wal-Mart stores across America. The Wal-Mart contest ended in 2006 and was replaced with an online contest.

Dubble Bubble was introduced as the first five-pack of gum in 1957, and began selling gumballs in 1999. The gum is sold in 50 countries.

In 2003, Dubble Bubble celebrated its 75th anniversary.

The brand was acquired by Chicago-based Tootsie Roll Industries in 2004, as part of its purchase of Concord Confections. Concord Confections ranks as one of the world's leading manufacturers of bubble gum and candy products.  Concord Confections is renowned in the confectionary market for leading edge innovation and incredible product breadth. Concord Confections has many world-renowned brands.

18. Razzles

Razzles are small pellets of "candy" that once chewed, mix to turn into chewing gum. Originally introduced in 1966, with an advertising slogan and jingle of, "First it's a candy, then it's a gum. Little round Razzles are so much fun." The original flavor was raspberry. They were named after a fictional flavor, Razzleberry that was planned but never panned out.

Concord Confections was formed in 1986, and sometime after that date acquired the Razzles brand. Additional fruit flavors were added to raspberry. Most recently, a "tropical fruit" pack was added to the product line. Tootsie Roll Industries acquired Concord Confections in 2004.

The candy is shown and consumed by two of the main characters in the film 13 Going on 30

19. Cry Baby

Cry Baby is a brand of extra sour bubble gum manufactured by Tootsie Roll Industries, Inc. Their claim to fame is their incredibly sour coating, which disappears shortly after the gum is chewed. The name comes from the fact that the gum is so intensely sour that it is not uncommon for one's eyes to water upon first tasting it.

They come in the following fruit flavors: Lemon , Cherry , Apple , Berry , Orange and Watermelon.

20. Nik- L- Nip

Nik-L-Nip is a brand of juice confection that comes in a variety of fruit flavors, marketed by Tootsie Roll Industries. The fruit flavored juice is found inside small, bottle-shaped wax, which you chew on, much like the popular wax lips.

Nik-L-Nip is also the name of an indie-rock band out of Pennsylvania that hit the west coast in the early nineties and the east coast and Canada in 1995.

Source: Tootsie Roll Industries website, Retrieved 20 June, 2007 <http://www.tootsie.com/history.html>

[1] “Tootsie Roll Industries”, Hoover’s Fact Sheet, Retrieved 20 June, 2007 < http://www.hoovers.com/tootsie-roll/--ID__11490--/free-co-factsheet.xhtml >
[2] Tootsie Annual Report, year 2006, Retrieved 20 June, 2007 <http://www.tootsie.com/pdf/annualreport2006.pdf>
[3] Tootsie Roll Industries website, Retrieved 20 June, 2007 <http://www.tootsie.com/>
[4] “Tootsie Roll Case internal and external analysis distinct competencies”, Retrieved 20 June, 2007 from <http://www.freeforessays.com/show_essay/Business-T-40484.html>

[5] Economic Survey of Pakistan, 2004- 2006

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Case Study: Tootsie Roll Industries. (2018, Jan 31). Retrieved from https://phdessay.com/case-study-tootsie-roll-industries/

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