New Beetle — Term Paper
Mission Impossible: Launch of the New Beetle[NEW BEETLE CASE STUDY]
At a time when American¶ were skeptical about the purchase of imported cars, due to lack of availability of spare parts and costly repairs, heightening, Germany¶s existing image problem in the market, Volkswagen introduced the Beetle in 1949 which turned out to be a phenomenal success and envisaged a cult- following by the 60s. However due to factors, such as Deutsche Mark appreciation, declining hatchback popularity, new environmental legislations all led to a dramatic decline in the sales of the Volkswagen Beetle. The sales after peaking in 1968, died out completely by 1981. Subsequently with a renewed focus to leverage a no. of value propositions from the old beetle such as strong heritage value, focus on unique driving experience and delivering German technology at an affordable value, the company decided to re-model the Beetle to incorporate design features such as ± honest, reliable, simple and original to design the New Beetle. After meeting with success through its initial promotional campaigns, the company¶s marketing manager Vanzura had decided to target the Baby boomers with a proposition aimed at µindulging in nostalgia. While rival companies spent upwards of 100 million dollars towards promotional budget, Vanzura would have to content with 25% of the typical budget size, which would further shrink if Vanzura would have to allocate dollars towards promotional expense of the New Passat which had debuted just 5 months ago. With this constraint on its budgetary resources, the company marketing manager set out to decide the marketing strategy to be followed for the new Beetle. y y To illustrate the development of target market segments To link the processes of market segmentation, market targeting & product positioning
2. PROBLEM IDENTIFICATION & ANALYSIS
The fundamental problem came down to targeting a broad customer base by advertising in the televisions or to position itself to cater to a niche category by advertising in the print media. The Old Beetle y Beetle was the most successful car model of its time, more than 21 million Beetles were sold. It was also a huge success in America and had become a true American icon. y The Beetle had a huge fan following in the new generation of Americans. It had become a symbol of individuality and personal style. y Beetle found a place in Disney movies as ³Herbie the love bug´, and also in the lives of the common American as a member of his family. A brief history of VW and Beetle After the launch of Beetle in America, which turned to be great success, VW of America was set up as a subsidiary to VW. A few car models were also launched like Rabit, Microbus and Karmann Gia sport coupe which were successful as well. However Beetle was still the leading car model for VW as it always contributed more than 65% sales (by volume) for VW till 1974. However, due to strengthening of Deutsche Mark, competition from cheaper Japanese brands VW saw its sales declining in US during 1970s. Due to recession in 1982, declining popularity of hatchbacks and inability to comply with the environmental legislation Beetle was withdrawn from the US markets. VW also took a hit and sales dropped to less than 50000 by 1993. In 1994 a campaign was launched to revive VW and a plan for relaunching Beetle in 1998 was also considered.
Bring back the Beetle ³What are you waiting for Doc? Bring back the Beetle. And hurry.´ This was the opening sentence of a letter to Dr Ferdinand Piech, Chairman Volkswagen AGBoard of management, which appeared in Chicago Tribune. This reflected the enthusiasm and the anticipation prevailing in the market for the New Beetle. But there were some challenges which were to be addressed before the launch. One of the major challenges was to remove the misconceptions about Beetle. Beetle was considered to be a ³toy car´. This image of Beetle needed a repair to ensure the New Beetle is looked upon as a ³Real, Driveable car´. The Beetle did have a segment of potential customers, i.e. the Baby Boomers, but for a sustained growth it also had to look beyond and exploit the appeal which Beetle had in other customer segments. Efforts to retain Baby Boomers were also required because the New Beetle was not a replica of the old Beetle. Thus positioning of Beetle was the key concern for VW. Positioning of the new Beetle with the backdrop of old Beetle¶s image & success coupled with a limited advertising budget was a challenging job and was considered as ³Mission : Impossible´ for a marketer. New Beetle: SWOT analysis Strength: The new beetle enjoys an iconic heritage; it is the successor of a car which enjoyed cult following among the mass and the elite alike during its hey-days. The strong brand image of yesteryears associated with the TYPE I Beetle definitely acts as one of its strength. In addition the new Beetle in today¶s age of technology leverages its strength of affordable German engineering to provide its users with the joy of a unique driving experience, which the owners can associate with it. And finally, its design principles ± honest, simple, reliable and original, which reinforce its penchant to use classic elements and basic shapes with the help of cutting edge technology and modern detail is symbolic of its spirit and historical strength. Weakness: One of the concerns which would keep the marketing unit busy at work would be the µtoy car¶ image which has been tagged to it in the market. However the case exclusively quotes that ³While many people saw the car as more of a toy, the New Beetle had its fair share of fans.´ Another weakness of the new Beetle was that it was one of the more expensive cars in the segment which was contrary to its customer¶s perception of affordability that they attached to its predecessor. However the main concern for the new Beetle was the limited advertisement budget at its disposal and the consequently low ad recall that emanated from it. Opportunities: Notwithstanding the above facts, there were several opportunities in the market for the new Beetle which it could take advantage of. The primary being the emergence of a new generation of fun loving consumers who wanted to express themselves by showing off to the world their car and the confidence associated with it. The nostalgia surrounding the car coupled with innovative promotions and attractive lease financing schemes all represent a favourable proposition for the marketing of the car. In addition, the new Beetle seeks to explore the revelation of people¶s love for round shapes using this as an opportunity to promote its simple yet modern designs. Threats: While the above discussion paints a rosy picture of the new Beetle, all isn¶t well with the car and/or the market in general. A decrease of 5% in the small car segment might be indications of a contract market. This coupled with the propositions of competition from Japanese auto makers, in terms of price and volume represents a growing threat which the new Beetle must look to effectively counter. In addition the loss of exclusivity of dealers meant that the dealers«.
Product positioning should ideally answers 3 questions: a) Who are the customers? Since Beetle itself has big target market comprising of the baby boomers & young drivers of age group 18-34 years old with diversified demography. But they have common characteristics such
as confidence, individualism and a desire to be centre of attraction. Also they love to drive German engine. b) What is the set of needs that the product fulfills? Beetle fulfills the desire to express individuality, superior driving performance with German technology and most important a people car with affordability and reliability c) Why is the product the best option to satisfy those needs? Seeing the history of Beetle and the legacy it has created there was no competitor in this segment. It was neither a small segment car nor a mid size car but the looks of the car put it in the small size car segment. No other brand was able to create the nostalgia that beetle has created with its design. Keeping the above factors the pricing needs to be kept in mind the affordability of the segment being targeted and the similarly the media for covering the Beetle will be a mass media and some extent of print media. If the car is positioned as the people¶s car then the pricing and media to be selected which will cater to the mass market. Since Beetle is falling in midsize segment the pricing of the car in this segment varies from $11,000 to $17,300 for a sedan. The base pricing of Beetle starts from $15,200 which can go upto $18,000 for the luxury model. Since this new Beetle is conceptualized based keeping Beetle spirit and sense of history with the blend of modern technology embedded in its features the recall of the new Beetle is immense.
The New Beetle
. VW hired a new ad agency, Arnold Communications, who was able to use psychographic segmentation to concentrate on what consumers the campaign should target. After almost pulling out of the U.S. market, VW wanted to revitalize its brand by making it relevant to the 1990’s driver. Since VW’s image and dealer confidence was diminished, Arnold decided concentrate on consumer/dealer perceptions of the VW brand. They held customer interviews, visited dealerships, and even drove the VW cars themselves. By doing this, they were able to fully understand the personality and lifestyle of VW consumers. Most importantly, they discovered that VW owners were adventurous people who liked to have more of an active role in driving. With all of the information that they gathered, along with creating a new product positioning and brand essence, Arnold came up with the “Drivers Wanted” campaign. I believe the success to this campaign was the actual slogan itself, which was created from a strategic segmentation strategy. It invites the consumer to be a part of VW and the experience of driving their vehicles. The slogan is motivational in the sense that it welcomes all consumers to join the VW family while satisfying their needs as drivers. After interviewing a diverse group of people about their past relationship with the original Beetle and a possible relationship with the New Beetle, Arnold found that the two potential target markets were the baby boomers and the new VW audience.
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The New Beetle
. THE NEW BEETLE INTRODUCTION The Volkswagen beetle was born in the mid-1930’s in Germany by Ferdinand Porsche. It was initially known as the people’s car. Americans first had a glimpse of the beetle in 1949 when it entered the US market with its first model name-Type 1- Volkswagen for the beetle. It had a distinctive round shape, face-like front end and low price. Above all, it stood out from the overpriced and oversized domestic cars. It was popular with budget-minded students as well as drivers who sought to express their individuality. Volkswagen sales in the United States took a huge dip from 500,000 in 1973 to 50,000 in 1993. Volkswagen is re-launching its brand in America and is looking for ways to position the new beetle with one foot in the past and the other on the accelerator heading to the future. With its design work complete and initial positive reaction from the market, VW is now faced with the task of turning the excitement surrounding the car into actual sales. It has to have full knowledge about the current market forces, dynamics, consumer behavior and the market segments available. Marketing Problem Volkswagen is unclear of their target market. It has two segments of target audience; the baby boomers and Gen-X. Knowing they have the potential to attract both the baby boomers and Generation X, Volkswagen will need to evaluate both target markets’ preferences and lifestyles in order to come up with ways to promote the beetle. The product/brands.
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New Beetle Case Study
. 1. What are the various market targets for the New Beetle available to Volkswagen? Describe each both demographically and psychographically. What are the pros and cons of each option? What are the appeals of the New Beetle to each group? The targeted markets available for the New Beetle were the young drivers between age of 18-34 years old and baby boomers. -Young drivers (18-34 years old) The consumers in this target markets are mostly single and well-educated. They are fun and adventurous; they see driving more than just getting from place to place. They are confident and like to be the center of attention. The New Beetle has unique and non-conservative design that look “beautiful and interesting”; it is what the younger consumers like about the car. Also, the car is sold at a lower prices comparing to other European luxury cars. It is definitely more price-friendly and affordable to the young consumers. In addition, there was an existing marketing campaign targeting to a younger generation of drivers and product introduction such as the t spending even more marketing budget on the spirit of young drivers. Also “driver wanted” campaign shares similar attitude with the New Beetle, it captures the sprit of energetic and fun driving experience. Although the consumers in this group like the uniqueness of the car and relatively low price tag, most of them do not have past experiences of buying cars. It might take a lot of effort to sell a car to this targeted market than.
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New Beetle Assignment
. Assignment for Week 10 Jennifer Mininno 04/13/2012 1. What are the various market targets for the New Beetle available to Volkswagen? Describe each both demographically and psychographically. What are the pros and cons of each option? What are the appeals of the New Beetle to each group? The New Beetle target markets included VW new core audience of 18-34 and Baby Boomers. Gen-X audience: — Younger people (18-34), single or married without children, students or professionals — Enjoy active role in driving, challenging winding roads, not always obey to speed limits, see the car more than a way to get from one place to another. — Unique attitude towards life: well informed, adventurous, creative, confident, selfsufficient, experimenters. Pros: — Consistent with the VW overall target, which skewed to a younger, more affluent and more educated consumers — The design of the new Beetle (honest, simple, reliable, original, safe and high performance car) appeals to the Gen X audience. — They connect with the “fun” aspect of the car and with the individual driving experience: “My job is very conservative, but that’s not really the way I am. (…) But when I get out of work, I’m not that. I mean it’s fun, it’s a fun car.” — They connect with the social aspect of owning a car: how people look at me because of the car I drive? With the New Beetle consumers can express their individuality, their personality in a bold and confident way: “I see it for someone who is.
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New Beetle Case Study
. NEW BEETLE: A New Take on the Legendary | Marketing Management Case Study | Emir Sunay | 1. Target Audience for New Beetle New Beetle is the new model of Volkswagen which takes the classic elements and basic shapes of the old Beetle and combines it with the latest technology and modern detail. It is based on the latest Golf platform. Liz Vanzura, the marketing director for Volkswagen, significantly has to define a target audience for the New Beetle in order to successfully market the car within a limited budget. VW executives decided to make the brand important and relevant to the ’90s buyer. This new model should also be marketed aligned with this strategy. The general target audience of Volkswagen does not consist of a distinct group; but its users have several common personalities which are being adventurous, confident, creative and individualistic. They also enjoy active driving and challenging roads; therefore they are highly concerned about their cars’ driving characteristics. There are two distinct potential target audiences for the New Beetle, which can simply be defined as Generation X and Baby-Boomers. Generation X is the young adults in the country who are between the ages of 18 and 34. These people are more educated and more affluent compared to the average car buyer. Baby-Boomers is the generation which consists of people born between 1946 and 1964 in the U.S. Many members of this group has experiences with the old Beetle and they are likely to.
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The New Beetles Case
. What are the various market targets for the New Beetle available to Volkswagen? Describe each both demographically and psychographically. What are the pros and cons of each option? What are the appeals of the New Beetle to each group? There are two main target audiences for the New Beetle — baby boomers and younger generation (18- to 34- years-old). The customers were demographically diverse like gender, life cycle, occupation or education etc. but share some common psychographic characteristics. Demographically: The baby boomer had family and children and stable job. The younger generation was single or married without children, having unique and active lifestyles. Psychographically: he baby boomer had strong emotional connection with Beetle and young people saw Beetle as a representative of their personality. They both appreciated an inspiring design and German engineering. For baby boomers, Pros: 1. They had strong emotional tie with the old Beetle. The new Beetle was considered as reminds of cherished memories and made them nostalgia. 2. They had been working for many years, so that they could afford the price of at least $15,200. 3. Print advertising could reach baby boomer most cost-effectively. Cons: Since baby boomers were having a family, they probably preferred larger car like SUV or minivan. For younger generation, Pros: 1. They thought Beetle is fun and had the connection with Beetle such as personality or dream. 2. They.
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. STUDY OF THE VOLKSWAGEN NEW BEETLE [pic] MKTG Principles of Marketing TABLE OF CONTENTS Abstract Introduction Product concept Development of the Volkswagen New Beetle New Beetle adoption Marketing throughout the product life cycle Beetle brand Findings Conclusions Reference list Abstract *** “The Beetle is different, it makes you feel different. It is like a magnet”, — Volkswagen Chairman, Ferdinand Piech (Keith Naughton and Bill Vlasic, 1998) *** The present paper is the case study of the Volkswagen New Beetle from the marketing perspective. The thesis will analyze the product concept, and examine the New Beetle in terms of the concept in question. The purpose of the paper is to identify the issues in the application of theory with regard to the New Beetle as a product, describe the function and operation of this element of the marketing mix in Volkswagen, as well as to review the status of the identified issues in the reviewed company. The paper will consider the introduction of the New Beetle to the market and examine the respective phases of the product development. The thesis will also examine the adoption of the New Beetle as a product, overview the product lifecycle and the issues with regard to the Beetle brand. Overall, New Beetle is unique from other cars and can be the good example of the successful product development and adoption. The Beetle Brand is a.
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. com/doc/52123169/ExMBA-2010-13-33-Beetle-Case-Study — Imp ————————————————- INTRODUCTION At a time when American¶ were skeptical about the purchase of imported cars, due to lack of availabilityof spare parts and costly repairs, heightening, Germany¶s existing image problem in the market,Volkswagen introduced the Beetle in 1949 which turned out to be a phenomenal success andenvisaged a cult- following by the 60s. However due to factors, such as Deutsche Markappreciation, declining hatchback popularity, new environmental legislations all led to a dramatic declinein the sales of the Volkswagen Beetle. The sales after peaking in 1968, died out completely by 1981.Subsequently with a renewed focus to leverage a no. of value propositions from the old beetle suchas strong heritage value, focus on unique driving experience and delivering German technology atan affordable value, the company decided to re-model the Beetle to incorporate design features such as ±honest, reliable, simple and original to design the New Beetle. After meeting with success throughits initial promotional campaigns, the company¶s marketing manager Vanzura had decided to target theBaby boomers with a proposition aimed at µindulging in nostalgia. While rival companies spent upwardsof 100 million dollars towards promotional budget, Vanzura would have to content with 25% of thetypical budget size, which would further shrink if Vanzura would have to allocate dollars.
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The Asian Long Horned Beetle
. The Asian Long Horned Beetle Introduction The sustained existence of our environment and ecosystem is quickly being diminished and depleted by invasive species. Invasive species can be thought of as non-native, or alien species to a specific ecosystem that immediately causes economic or environmental harm or even harm to human upon introduction (7). This is concerning not only to our well being, but also on a macro-spectrum, our environment. In time where global warming and industrialization are already challenging the preservation of the biodiversity of ecosystems, invasive species are becoming an increasing threat to environments and ecosystems. A species that has recently threatened and destructed many states including Massachusetts, New York, and Ohio, is known as the Asian Long-Horned Beetle. The Asian Long-Horned Beetle attacks many species of trees, including “poplars, maples, elms, and mulberries” and has a primary impact on street trees (5). Although the beetle is no bigger than an inch, it definitely packs a punch, causing massive and widespread destruction, which costs several hundreds of dollars to be spent per infestation. Background on the Asian Long-Horned Beetle The Asian Long-Horned Beetle is a native to Asia and was introduced to the United States in 1996 from “wood pallets and other wood packing material accompanying cargo shipments from Asia” (7). The Asian-Longhorned beetle is a tiny creature that is measured to be 1 to 1.5 inches in length and.
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. ” this means the animal is not natural to the habitat, while some invasive species are not a problem, most are. A few species that are attacking the forests are the, Asian Long-Haired Beetle, Emerald Ash Borer, and Mountain Pine Beetle. The Asian Long-Haired Beetle (ALB) is currently found in New York, New Jersey, Illinois, Massachusetts, California, and Ohio. ALB is native to eastern China, Japan and Korea. The species was accidentally introduced into the United States, being first discovered in New York in 1996. Adult ALB can be seen from late spring to fall depending on the climate. The predominant reproductive cycle is one year, with winter most commonly in the larval state. Females chew “oviposition sites” in the bark of trees to lay eggs in. One beetle can lie anywhere from 35 to 90 eggs. Larvae hatch within 10-15 days and tunnel under tree bark and bore into healthy trees, they feed on living tree tissue during spring. After emerging, adult beetles feed on the exterior of trees for 2-3 days and then mate. Adult beetle are active only during summer and early fall, then they perish, living a one-year life cycle. ALB spread by natural means, such as flying. Since adult beetles, and larvae both feed on trees, they cause them to become hollow, and the tree eventually dies. The beetle also has the potential to damage industries such as, lumber, maple syrup, nursery, commercial fruit, and tourism, which accumulates to over $41 billion in losses. At this time, the.
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Volkswagen Reserch Paper
. The Volkswagen Beetle The Beetle Volkswagen is an old car that has been around for decades. The first Beetle was made by Adolf Hitler in Germany in the year of 1938. That makes this car over 75 years old. They prices the first Beetle at $106 on average to an average family. Not like the cars at the time, it had an engine that could go over 100km without using more than 7 liters of gasoline. For that reason it was presented the nickname “the people’s car”. Now, the Beetles have been modified to be different. Since there are so many different models in different years, I chose one that when I think beetle, I think the Volkswagen New Beetle GL Hatchback 2b. Most people don’t know what it is called but see the picture below to get a good idea. This particular car has a 1984cc, 2 liter in-line 4 engine with 82.5 mm bore, 92.8 mm stroke, 10 compression ratio, and overhead cam, three valve per cylinder, air-cooled and with a torque of 122ft at 2600rpm. As well as a horsepower of 115mph at 5208rpm. Also, this car goes 21 mpg on city roads and 28mpg on the highway with a 14.5 gallon tank. For this particular car, the pricing varies. If you want a brand new, 2015, beetle, the price would average at about $24,993. If you were to get a used, 2000, beetle, the price would average at $3920. Now, the oldest beetle you can get is from 1998, still, that is over 15 years old. Anyway, it wouldn’t be as long as you think. The average for that year and model of the beetle would be $2953.
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. chase the new Volkswagen Beetle driving down the street. He cannot fit through due to his weight. Bolt goes to the mirror, and sad music begins playing. The scene changes to Bolt standing at the top of the stairs with a tennis ball in his mouth. He drops the tennis ball and a classic upbeat song starts playing. Bolt begins a rigorous exercise program to lose weight. He continues exercising as the seasons pass. Once again, Summer’s arrived. Bolt hears the Volkswagen Beetle and darts out of his doggie door and successfully chases it down the street. The commercial not only advertises a new Volkswagen Beetle, it suggests improved appearance, success and, high social status are attached to ownership. Spinning off of the popular 2011 Volkswagen Passat commercial, which features Darth Vader, along with a debate between characters from Star Wars, spreads their message to fans of the movie. Choosing a classic song guarantees recurrent thoughts of the commercial. Volkswagen connects with the audience in multiple ways, such as; most people want to lose weight, and like dogs, music, success, and Star Wars. Driving the new Volkswagen Beetle will make the owner look and feel fabulous. Watching Bolt climb stairs, lift weights, run, swim, and diet over the next year so he can fit through the doggie door to chase the new body style of the Volkswagen Beetle conveys the main message of the advertisement (“The Dog Strikes Back”). Volkswagen depicts owning the new body.
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. Technology is becoming more advance each day. In the article, Cyborg Beetle, written by Michel M. Maharbiz and Hirotaka Sato, the military is developing small robots that can be used as spy equipment that can fly inside caves and barricaded rooms to send back information about people and weapons inside. The Cyborg Beetles will also be functional in major disasters that happen throughout the world. For example, if people were enclosed in a cave, the Beetles could bring back information like how many victims are trapped inside or the medical state of the people trapped inside. The article provided quality information on the capabilities and history of Cyborg Beetles, why Beetles where chosen for the experiment, and if these Cyborg Beetle should be used as military spy weapons. The author went through a few possibilities such as dragonflies and ordinary houseflies. They realized that the dragonfly body was too fragile for this experiment and the housefly body was so small that it would take a nanosurgeon for the implant to be necessary (Maharbiz, M. M., Sato, H. 2010).They wanted to place wires to control how the insect wings moved and cameras to see anything. The author used the book called “The Biology of the Coleoptera,” which is a classic guide to the world of beetles written by R.A. Crowson in 1981 (Maharbiz, M. M., Sato, H. 2010). The book provides ample information on a variety of beetles and gave the authors important information such as the size that range from one.
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Bark Beetle Management
. Bark Beetle Management Over 41.7 millions of acres of conifer forests have been affected by the bark beetle, since 1997. Since, bark beetles are native insects not subject to eradication and need to be managed as integral parts of the ecosystem. The U.S. Forest Service strategy is a direct control approach, focused on three primary goals: human safety, forest recovery, and long-term forest resiliency, according to the “Western Bark Beetle Strategy,” published on July 11, 2011. The Forest Service and the Natural Resources Conservation Service is undertaking an effort to battle the bark beetle problem as a joint task force. Coordination will occur with State and federal agencies alongside with civilian partners to determine the risk to human safety, communicate the risks to the public, and leverage available partner capacity and funds to increase the scope of projects. With the integration and support from specific programs like Recreation, Road Management, Trail Management, Forest Health Protection, Hazardous Fuels, Facilities Maintenance, Forest Management, Vegetation Management and Salvage Sale, approximately $138 million in agency and supplemental appropriations is expected to fund the overwhelming toll the beetles have inflected on the forests. Hazard Rating System: Because outbreaks usually develop in mature to over mature forests, especially in lodgepole pine, large reserves of these forests pose a constant hazard in areas climatically favorable to the.
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. Flour Beetles Inhibition of flour beetle egg-hatching via refrigeration Abstract A demonstration of the scientific method is presented. Samples of flour are stored at various temperatures to determine if cold storage inhibits flour beetle egg hatching. Introduction I received a bread machine one year for Christmas. I never seem to have yeast, flour, eggs, and extra add-ins like caraway seeds or whole-wheat flour all fresh and available in my kitchen at the same time. One day while at the grocery store, I stopped and bought some baker’s yeast so I could make some bread. I knew I had flour, eggs, garlic and rosemary at home; so with the purchase of yeast I would be all set to make some foccacia bread – my favorite. I got home and proofed the yeast, started the bread by mixing an egg, oil and water, and then measured out the flour. As I poured the flour into the machine I noticed some dark specks. When I took a closer look, I found that the specks were actually bugs! Gross! Where the heck did those bugs come from? Am I such a lousy housekeeper that my cabinets are filled with bugs? It turns out that the bugs in the flour are flour beetles. The eggs may already be in the flour when you buy it at the store (Lewis et al., 1997). If you leave the flour at room temperature for a long enough time, with enough warmth and humidity, the eggs.