Round, flat, seeded, plain, crowned with cheese, or cut into croutons, bagels form the basis of every menu item at Finagle A Bagel. “So many other shops will just grab onto whatever is hot, whatever is trendy, in a ‘metoo’ strategy,” observes Heather Robertson, the director of marketing, human resources, and research and development. In contrast, she says, “We do bagels—that’s what we do best. And any menu item in our stores really needs to reaffirm that as our core concept.” That’s the first of Finagle A Bagel’s marketing rules. In addition to its retailing activities, the company wholesales its bagels in bulk to hospitals, schools, and other organizations. It also wholesales a line of Finagle A Bagel–branded bagels for resale in Shaw’s Market stores. Whether selling wholesale or retail, the company is always hunting for new product ideas involving bagels.

1. Does Finagle A Bagel apply all seven phases of the new product development process when working on a new menu item such as the jalapeno-and-cheese bagel? Explain.
2. Do you agree with Laura Trust’s assessment that adjusting prices based on store location can backfire? What arguments can you offer for and against Finagle A Bagel raising prices in higher-rent stores?
3. Finagle A Bagel is both a wholesaler and a retailer. Which of these two marketing intermediary roles do you think the company should develop more aggressively in the next few years? Why?
4. Should Finagle A Bagel continue to spend nothing on media advertising and rely instead primarily on sales promotion techniques such as samples and coupons?