Novelty Bread narrates the success story of a bread manufacturing company belonging to a diversified group of medium sized family business. It can be used to illustrate the role of innovation in various aspects of business. The choice of the product mix itself is innovative. While the market leader, Modern Bread and the large number of small and tiny bakeries believed that bread had to be white, Novelty identified a latent demand for sweet bread and entered that segment and created a large base there. In order to ensure that they had high quality raw materials at reasonable prices, they integrated backward to manufacture wheat-based products. This case can be used to push innovation on the 4Ps of marketing.