Jorge Nolasco and Jason Ilarraza
Operations and Supply Chain Management
Naval Postgraduate School
February 28, 2013
This Case study is based on Jelly Belly and the actions taken by the founder, to grow the Company, and loose the company to Goelitz Inc. The focus of the case study will address Jelly Belly's strategy and sustainability, strategy and capacity management, and sales and operational planning.
At 18 David Klein was in business selling popcorn with his uncle while attending UCLA. He worked his way through law school by selling popcorn. David decided not take the bar exam but pursue a career he was captivated by, making and selling candy. David Kline a quirky and creative candy maker has invented over 450 types of candy. His most famous candy was Jelly Belly.
David first opened and operated a wholesale nut and raisin business and attained experience and a reputation in the Los Angelos Area with local distributors of nuts, raisins, and candies. While operating and maintaining the wholesale nut and raisin business, David developed a gourmet jelly bean, he coined Jelly Belly. Jelly Belly’s competitive dimension was quality. David’s vision was to create a high-end jelly bean, with a premium quality, flavor, and a unique shape. David created the original 8 flavors in 1975.
David approached Herman Goelitz, president of the Goelitz Candy Inc., a generational candy business, founded in 1869, primarily known for fine candy corn, with a business proposal for production of the Jelly Belly. Mr. Goelitz began business with David and began the production of the 8 flavors David had created in 1976. The first flavors were Very Cherry, Tangerine, Lemon, Green Apple, Grape Jelly, Licorice, Root Beer, and Cream Soda.
David was familiar with the successful main stream marketing strategies of McDonalds and Burger King. He created the Jelly Belly logo, in bright yellow and red. Soon after,