MGMT 520 FINAL EXAM Week 8
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(TCOs G and I) In the 1930s, after immigrating to the U.S. from
a region in central Europe threatened by the onset of World War II, Luigi and
Maria Spongee opened a bakery in Chicago. They specialized in snack cakes.
Spongee Cup Cakes became so popular in the area that the family stopped being
actual bakers and became manufacturers/ food processors of the snack cakes on a
regional basis. After returning from the war, their son Steve completed college
and began working in television advertising in the early 1950s. Steve approached
his parents and his older brother Tom, who was now running the business, about
the possibilities of advertising and “going national.” The family liked the
idea and began advertising and expanding. In addition, to fuel the expansion,
they offered retailers price discounts and other incentives if they prominently
positioned the displays
set-up by Spongee rack
jobbers. By the 1960s, they were a national brand, controlling over 80 percent
of the snack food industry.
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