Unit 10 Report: Kellogg's Market Research and Marketing Decisions

This report examines Kellogg's market research practices, specifically focusing on the Crunchy Nut brand extension. It details the use of both primary and secondary research methods, including focus groups, quantitative surveys, and home usage tests. The report highlights how Kellogg's utilizes market research to gather consumer insights, refine product concepts, and make informed marketing decisions. It explores the value of qualitative and quantitative data in understanding consumer preferences, establishing product sales potential, and developing effective packaging. The analysis demonstrates how market research is essential for reducing the risks associated with launching new products and ultimately contributing to the success of the Crunchy Nut brand, resulting in significant sales. This report provides a comprehensive overview of Kellogg's market research strategy, illustrating its impact on product development and marketing outcomes.

Georgina Arnold P2 Unit 10
Explain how different market research methods
have been used to make a marketing decision
within a selected situation or business
KELLOGG’S MARKET RESEARCH-
Kellogg’s is the leading producer in cereals and its products are sold in
over 180 countries and made in 18 different countries. Kellogg’s has
been a leader in health and nutrition by providing consumers a wide
variety of food products for more than 100 years. Kellogg’s focuses on
developing the businesses to meet the needs of consumers today
while respecting the needs of future generations. This is known as
sustainable growth.
Market research is a specific area of marketing that informs Kellogg’s
about the consumers wants and needs, how to design the products and
how to advertise them. It does not only show what consumers want
now but also what is wanted for the future. Market research adds value
to the business by identifying consumers’ needs. Launching a new
product is a risky strategy and market research is essential in order to
reduce risks.
CRUNCHY NUT BRAND EXTENSION- PRIMARY AND SECONDARY
RESEARCH
Kellogg’s commissioned primary research in order to extend the brand
of crunchy nut. This research will be collected first hand by the
company. The information they collect will be specific to the project.
Although it is more expensive and time consuming it is a more reliable
and is specific for the project.
Primary research data may include qualitative and quantitative data
and both are valuable in understanding the wants and needs of the
consumers. Qualitative data is based on opinions, beliefs attitudes and
intentions. Quantitative data is based on statistics and data.
Kellogg’s would also have carried out secondary research. This
research is quicker than primary research. However it does have its
disadvantages and a major one is that it is not as relevant or specific
to the project.
MARKETING DECISIONS

Georgina Arnold P2 Unit 10
Kellogg’s wanted to identify a new food ideas in order to develop a
crunchy nut product. They used a main primary research technique to
collect data. They used focus groups which meant that could show the
consumers the new food ideas in the form of different (real) food
prototypes. The group captured and attitudes and feelings of the
consumers and meant they could see how the products still fit with the
crunchy nut cereal. It also means that they can establish what flavours
and textures. They used a lot of secondary research and used a market
research company such as Mintel. They used Mintel to find out the
cereal trends in the market. Using Mintel as a secondary research
technique also meant they could see the worldwide trends. These
techniques allowed Kellogg’s to discard some ideas and knew what
they needed to do in order to improve and further develop the
products.
When selecting the best product they asked potential consumers to fill
in a quantitative survey. They were asked to rate the product on a
number of scales so they could see what products people liked and
disliked. The survey established that a high proportion of people asked
liked the product enough to buy it. It also meant Kellogg’s could see
what products have good sales potential.
The next stage involved again using a focus group and panel. They had
prototypes of the products and they got people to taste them to see
what they enjoyed. They collected people’s opinions (qualitative). At
this stage they also developed the packaging for the product. The aim
was to continue the themes of the crunchy nut cereal box.
The final type of research Kellogg’s used was a “Home usage test”.
This meant that consumers were given the product to try at home for
several days to capture how they interact. At the end of the trial they
were asked to complete a questionnaire. This showed how appealing
the product is and how likely they would be to by the product. The
information collected will help towards there sales forecast. Once the
finance department had set budgets, organised suppliers and
scheduled food production it meant that production could start.
Kellogg’s used market research throughout the development of a new
crunchy nut product which meant that they could explore different
ideas form the very start to the very end. The marketing of the new
product was key and if this didn’t happen Kellogg’s wouldn’t have had