Premium Essay

Case Study for Kelloggs New Product from Market Research

In:

Submitted By wasiqdiwan
Words 2461
Pages 10
New products from market research

Curriculum Topics
• Market research
• Types of research
• Quantitative and qualitative
• Product development

Kellogg’s with a sales value of £68 million*. In 2003 the Crunchy

Introduction

Nut brand created a brand extension. This involved using the
The Kellogg Company is the world’s leading producer of cereals.

Crunchy Nut name to launch a new product called Crunchy Nut

Its products are manufactured in 18 countries and sold in more

Clusters. This variant has two varieties, Milk Chocolate Curls and

than 180 countries. For more than 100 years, Kellogg’s has been a

Honey and Nut. Both of them have enabled the brand to reach a

leader in health and nutrition through providing consumers with a

wider group of consumers. This brand extension is now worth

wide variety of food products. These are designed to be part of a

£21 million in annual value sales.*

balanced diet and meet the different tastes of consumers. Kellogg’s focuses on sustainable growth. This involves constantly looking

This case study focuses on the importance of market research

for ways to meet consumer needs by growing the cereal business

during the development and launch of Crunchy Nut Bites, a more

and expanding its product portfolio.

recent extension to the Crunchy Nut brand. The objective of this innovation was to provide a new flavour and texture for consumers,

Market research is a specific area of marketing that informs

helping Kellogg’s extend its share of the breakfast cereals market.

businesses like Kellogg’s about the things consumers need, how
*IRI sales data

best to design products to answer those needs and how to advertise those products to consumers. Market research goes beyond finding out what consumers are thinking today. It can identify what consumers might want in the future. In

Similar Documents

Premium Essay

Business Strategy

...Kellogg’s study case: * Mission: It defines what the company does, who it serves and how it serves. This is a formulated form of company`s goal, philosophy and characteristic. For Kellogg`s the quality was the key also the mission is to develop their product through the customers, consumers and communities. * Vision: This can be defined as a dynamic and compelling view at some point in the future. True the vision the company can see where it want to be and what Kellogg`s want to achieve in the future. Kellogg`s vision is ‘To enrich and delight the world through foods and brands that matter’ (Kelloggs). Regarding to our case study, Kellogg`s vision in India was to serve a bigger choice in the food industry and also apart of cereal they wanted to expand into snack and frozen foods in U.S. * Objectives: Kellogg`s objectives included such as support physical activity for the population, promote exercise, sponsor activities (studies). Kellogg became the main sponsor of swimming in Britain. Also they introduce food labelling which is providing an opportunity for the consumers to make decisions about the right balance of food. Kellogg is violently supporting but in the same it puts a lot of effort to protect their reputation. * Goals: Kellogg`s want to provide the consumers all over the world with simple and more suitable way of enjoying good health. * Core competencies: Core competence is important for any company. The firms has to follow the market needs and to...

Words: 3787 - Pages: 16

Free Essay

Business Decision Taking

...used by Kelloggs India Ltd.: 4 2.1: summarizing data: 5 2.2 Results from the summarizing data: 6 2.3 Measures of dispersion: 7 2.4 quartiles, percentiles, conelation coefficient 8 3.1 Using data from kellogg's business scenario, preparation a range of graphs 9 3.2: Use trend lines in spreadsheet graphs 10 3.3 The answer is delivered through attached Microsoft PowerPoint 10 3.4 Formal Business Report: 10 4.1Management information system: 11 4.2Presentation of a project pian for the Kellogg's case study for an 14 4.3Internal rate of return: 15 Referrences: 16 1.1 Preparation of primary and secondary data: Primary data: Primary data of Kellogg India Ltd. is collected from the primary sources like company own databases, company surverys, interviews. The data which are collected by thoe own researchers source or primary source is known as primary data(Dawes, 1971). The company generally gather its primary data from the existing customer perspective. Besides company accountant information regarding survey plays vital role in this case. Kellogg India Ltd. empahasizes more on primary sources than on the secondary sources of data. They use direct observatons, personal interview from customer as their primary data sources. Secondary data: Secondary data are the subsequent publication of primary literature(Kahnmean and Lovallo, 1993). The data sources from the third parties not company internal sources is used as secondary data to use in research by Kellogg India Ltd...

Words: 3569 - Pages: 15

Premium Essay

Product Life Cycle

...Product Life Cycle Introduction The theory of product lifecycle is one of the key components in the subject of marketing study. After Vernon put forward the theory of product lifecycle in 1966, it is widely used by companies to design marketing strategies, predict longevity of products and make product management. This essay is divided into three sections. In the first section, several definitions of product lifecycle and one explanation of the course of product lifecycle are presented. In the second section, strengths and weaknesses of product lifecycle are analyzed to point out what is the proper situation of adapting the theory of product lifecycle. In the third section, two case studies are provided to illustrate how the theory of product lifecycle drives marketing strategies. The abbreviation PLC will be used for product lifecycle throughout this paper. Definitions In this section, a number of definitions of product lifecycle theory are provided and an outline of the stages of PLC is demonstrated. According to a prominent researcher in strategic marketing, the PLC is “a generalized model of the sales trend for a product class or category over a period of time, and of related changes in competitive behavior.” (Buzzell 1966; Brassington & Pettitt 2000) The definition states that PLC provides a basic model for organizations to manage products and that sales and time are the two factors to change the period of products. Another definition defines PLC as “ a concept...

Words: 1685 - Pages: 7

Premium Essay

Kellogs Case of Study

...a business to compete. However, a business must also be aware of why it is different to others in the same market. This case study looks at the combination of these elements and shows how Kellogg prepared a successful strategy by setting aims and objectives linked to its unique brand. One of the most powerful tools that organisations use is branding. A brand is a name, design, symbol or major feature that helps to identify one or more products from a business or organisation. The reason that branding is powerful is that the moment a consumer recognises a brand, the brand itself instantly provides a lot of information to that consumer. This helps them to make quicker and better decisions about what products or services to buy. Managing a brand is part of a process called product positioning. The positioning of a product is a process where the various attributes and qualities of a brand are emphasised to consumers. When consumers see the brand, they distinguish the brand from other products and brands because of these attributes and qualities. Focused on Kellogg, this case study looks at how aims and objectives have been used to create a strategy which gives Kellogg a unique position in the minds of its consumers. GLOSSARY Branding: process of managing brands by using the position of the brand to communicate a series of values to consumers. Product...

Words: 2352 - Pages: 10

Premium Essay

Marketing - Kelloggs India

...world. Kellogg’s entered India in 1994 and it took them a good 15 years for stability in the Indian markets facing initial problems and trying to change the Indian consumer’s mentality about the morning breakfast http://www.kelloggs.co.uk/company/history/howitallbegan.aspx About the assignment: (Refer Appendix 1) Growth strategy by Kellogg’s in India: Kellogg’s were successful to create a need for the product which was never a necessity for an Indian household. We will now discuss how the company managed to establish themselves with a dominant market share in the Indian market. 1.) Ansoff Matrix Ansoff Matrix was introduced to address the corporate strategy of the future. It delivers the perspective of growth options on the horizontal level and introduces the possibility of diversification. (Kotler, Berger & Bickhoff, 2010) http://www.ansoffmatrix.com/ Market Development: Market Development is capturing new markets with your existing products or services. (Lester, 2009) In a new market or to a new consumer, it will be a quiet a task to have them to believe in your product on launching (Meldrum, M & McDonald, M., 2007) especially, when a country is so fond of their traditional recipes. With the help of extensive market research Kellogg’s found out that there was no breakfast cereal trend in the Indian market. Hence they launched their flagship product ‘Cornflakes’. This was always going to be tricky as Indians love their hot breakfast. Kellogg’s had...

Words: 3792 - Pages: 16

Free Essay

Strategic Planning Process

...1.0 Introduction 1.1 Background Kellogg Company (often referred to as Kellogg or Kellogg's in its corporate logo, or even more formally as Kellogg's of Battle Creek), with 2011 sales revenue of nearly $13 billion, is the world's leading producer of cereal and a leading producer of convenience foods, including cookies, crackers, Toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and vegetarian foods. The company's brands include Kellogg's, Keebler, Pop-Tarts, Eggo, Cheez-It, Nutri-Grain, Rice Krispies, BearNaked, Morningstar Farms, Famous Amos, Special K, All-Bran, Frosted Mini-Wheats, Club and Kashi. Kellogg products are manufactured in 18 countries and marketed in more than 180 countries around the world. Its global headquarters are in Battle Creek, Michigan, USA. Kellogg trades under the ticker symbol NYSE: K. When preparing a strategy for success, a business needs to be clear about what it wants to achieve. It needs to know how it is going to turn its desires into reality in the face of intense competition. Setting clear and specific aims and objectives is vital for a business to compete. However, a business must also be aware of why it is different to others in the same market. This case study looks at the combination of these elements and shows how Kellogg prepared a successful strategy by setting aims and objectives linked to its unique brand. One of the most powerful tools that organizations use is branding. A brand is a name, design, symbol or...

Words: 1518 - Pages: 7

Premium Essay

Kellogg Indian Experience

...Organization : Kellogg India Ltd Pub Date : 2001 Countries : India Industry : Cereals and Convenience foods Kellogg's Indian Experience: A Failed Launch In April 1995, Kellogg India Ltd. (Kellogg) received unsettling reports of a gradual drop in sales from its distributors in Mumbai. There was a 25% decline in countrywide sales since March1995, the month Kellogg products had been made available nationally.  Kellogg was the wholly-owned Indian subsidiary of the Kellogg Company based in Battle Creek, Michigan. Kellogg Company was the world's leading producer of cereals and convenience foods, including cookies, crackers, cereal bars, frozen waffles, meat alternatives, piecrusts, and ice cream cones. Founded in 1906, Kellogg Company had manufacturing facilities in 19 countries and marketed its products in more than 160 countries. The company's turnover in 1999-00 was $ 7 billion. Kellogg Company had set up its 30th manufacturing facility in India, with a total investment of $ 30 million. The Indian market held great significance for the Kellogg Company because its US sales were stagnating and only regular price increases had helped boost the revenues in the 1990s. | Launched in September 1994, Kellogg's initial offerings in India included cornflakes, wheat flakes and Basmati rice flakes. Despite offering good quality products and being supported by the technical, managerial and financial resources of its parent, Kellogg's products failed in the Indian market. Even a high-profile...

Words: 2655 - Pages: 11

Premium Essay

Kellogs

...Failed Launch |In April 1995, Kellogg India Ltd. (Kellogg) received unsettling reports of a gradual drop in sales from its distributors in Mumbai. There | |was a 25% decline in countrywide sales since March1995, the month Kellogg products had been made available nationally. | | | |Kellogg was the wholly-owned Indian subsidiary of the Kellogg Company based in Battle Creek, Michigan. Kellogg Company was the world's | |leading producer of cereals and convenience foods, including cookies, crackers, cereal bars, frozen waffles, meat alternatives, piecrusts, | |and ice cream cones. Founded in 1906, Kellogg Company had manufacturing facilities in 19 countries and marketed its products in more than | |160 countries. The company's turnover in 1999-00 was $ 7 billion. Kellogg Company had set up its 30th manufacturing facility in India, with | |a total investment of $ 30 million. The Indian market held great significance for the Kellogg Company because its US sales were stagnating | |and only regular price increases had helped boost the revenues in the 1990s. | Launched in September 1994, Kellogg's initial offerings in India included cornflakes, wheat flakes and Basmati rice flakes. Despite offering good quality products and being supported by the technical...

Words: 2645 - Pages: 11

Free Essay

Kellogg

...done properly. One can learn about various fields of business while taking decision. Four procedures of accurate information- gathering data, string data, creating useful information, and presenting them can also be learnt. Currently all the successful organizations use IT based data analysis. This type of data analysis has a lot of advantages. Kellogg India is an US based company focused mainly in cereal products. After the reconstruction of Indian market, it decided to expand its operation in this side of this world. It invested 35 million pound and implemented its western policy. Now after decade’s Ups and Downs, Kellogg is keen to control the lion’s share of Indian domestic market and wants to be the only player. While Kellogg still holds more than 60% share in India's Rs 700-crore organized breakfast cereal market and increased its overall sales 30% in FY12, it is now facing increased competition with multinational and home-grown players including PepsiCo, Marico, GlaxoSmithKline and Dr Oater entering the oats and muesli segments(New York Times 1998). That’s why now it’s going to take some vital decision that will reshape its market strategy. The author can examine a variety of data Sources. He can use any type of data and any type of method and also will use all the necessary tools to represent this work. However Author will clarify the whole data analysis process. 1.1 create a plan for the collection of primary and secondary data for a given business problem ...

Words: 3452 - Pages: 14

Premium Essay

Food Marketing

...Food Marketing Policy Issue Paper Food Marketing Policy Issue Papers address particular policy or marketing issues in a non-technical manner. They summarize research results and provide insights for users outside the research community. Single copies are available at no charge. The last page lists all Food Policy Issue Papers to date, and describes other publication series available from the Food Marketing Policy Center. Tel (860) 486-1927 Fax (860) 486-2461 email: fmpc@canr1.cag.uconn.edu http://vm.uconn.edu/~wwware/ fmktc.html No. 17 October 1998 Jawboning Cereal: The Campaign to Lower Cereal Prices by Ronald W. Cotterill Food Marketing Policy Center University of Connecticut Food Marketing Policy Center, Department of Agricultural and Resource Economics, University of Connecticut, 1376 Storrs Road, U-21, Storrs, CT 06269-4021 Jawboning Cereal: The Campaign to Lower Cereal Prices by Ronald W. Cotterill Abstract This article introduces the Forum by explaining the sequence of events related to the jawboning campaign and subsequent reductions in cereal prices. It also introduces the main issues on the vigor of competition and pricing that are analyzed in subsequent papers. Jawboning as a public policy strategy is assessed and found useful in certain circumstances such as those in the breakfast cereal industry in the mid 1990’s. The jawboning campaign was effective in advancing price competition in an industry that successfully resisted repeated antitrust...

Words: 5234 - Pages: 21

Premium Essay

How Can Kellogg's Do Better in India

...How can Kellogg’s do better in India? What were the mistakes it made? ABOUT KELLOGS: Kellogg is $13.2 billion multinational food manufacturing company with its headquarters in Michigan, USA. It has manufacturing units in 18 countries and markets its products in over 180 countries. Brand Kellogg’s a global successful player serving packaged breakfast items across globe. Kellogg’s ventured in India in 1994. On its arrival, it created a new category of branded breakfast cereal products. Since then the journey for Kellogg’s has been far from easy, actually it has been so tough that it has found itself to be one of the biggest brand failures in India. In this article let us study what went wrong for the global brand, what mistakes it made and going forward what should be its strategy. Breakfast Cereal Industry: The Industry was pegged at Rs 150 crores way back in 1995 during early days of Kellogg’s. Today, this new category created by Kellogg’s is pegged at Rs 500 crores. Cornflakes account for 80% of the market, rest is shared by Oats, Muesli and Wheat Porridge. Kellogg has 70% market share i.e. 350 crores. The category has grown by only 8.4% per annum over the last 15 years. The figures are testimony to the fact that Kellogg's effort to change the breakfast habit of the Indian people, has not had as much success as it hoped for. Cornflakes for breakfast is somethings we as Indians are not used to and making us leave our idli’s, dosas and parantha’s for cornflakes...

Words: 1800 - Pages: 8

Premium Essay

A Financial Ratio Quarterly Trend Analysis of Kellog Co.

...FIN 6406 A Financial Ratio Quarterly Trend Analysis of: Kellogg Co. Stock Symbol: K Listed on NYSE Exchange Prepared for: Dr. Edward Lawrence Department of Finance Florida International University In partial fulfillment of the requirements of Course: FIN 6406 By: Ana Carolina De Obaldía Rogemif Fuentes Cesar Giovanni Santos Fábrega Introduction For this project we decided to choose Kellogg’s Company (NYSE: K) to elaborate a financial quarterly trend analysis because it is a big, stable company with 108 years in the market and its products are sold in more than 180 countries worldwide. The ready to eat cereals first appeared in the late 1800’s when a group of vegetarians wanted to expand their food options and decided to create the wheat and corn flakes. It wasn´t until 1906 that Kellogg’s Co. entered the market and has stayed latent through many generations until these days. It is interesting that it survived two world wars and the depression of the United States in the 1930’s. Being this long in the market also means that they have known how to evolve in this world with constant changes, adapting to the behavioral changes in people and their likes remaining competitive and appealing. It is more of a mature company rather than growing company and has many brand-loyal customers. Regarding the sources of information consulted for this report, we used some financial websites to get the financial statements of Kellogg’s and its main competitor General Mills, which we will...

Words: 4831 - Pages: 20

Premium Essay

국제 마케팅 케이스

...IntMk-CStud-4.qxd 26/05/2005 14:05 Page 563 section 4 case studies cases 4.1 Wal-Mart’s German Misadventure 4.2 Handl Tyrol: Market Selection and Coverage Decisions of a Medium-sized Austrian Enterprise 4.3 Blair Water Purifiers to India 4.4 A Tale of Two Tipples 4.5 Kellogg’s Indian Experience 4.6 Strategic Alliances in the Global Airline Industry: from Bilateral Agreements to Integrated Networks 4.7 GN Netcom in China 4.8 IKEA: Entering Russia 4.9 The ‘David Beckham’ Brand 563 571 574 583 586 590 594 599 604 case 4.1 Wal-Mart’s German Misadventure I don’t think that Wal-Mart did their homework as well as they should have. Germany is Europe’s most pricesensitive market. Wal-Mart underestimated the competition, the culture, the legislative environment. — Steve Gotham, retail analyst, Verdict Retail Consulting, October 20021 We screwed up in Germany. Our biggest mistake was putting our name up before we had the service and low prices. People were disappointed. — John Menzer, head of Wal-Mart International December 20012 ‘Don’t look now:’ low prices all year round! With thanks to Walmart 563 IntMk-CStud-4.qxd 26/05/2005 14:06 Page 564 section 6 case studies section 4 German blues For the world’s largest retailing company, Wal-Mart, Inc., the German market was proving difficult to crack. By 2003, even after five years of having entered Germany, Wal-Mart was making losses. Though Wal-Mart did not reveal these figures, analysts estimated...

Words: 33872 - Pages: 136

Free Essay

Anything

...ALICE M. TYBOUT AND JULIE HENNESSY TiVo As Brody Keast, TiVo’s senior vice president of marketing, pored over research reports and market forecasts, his excitement grew. In one report Odyssey Research concluded, “We have never seen a product test better in terms of consumer intent to purchase.” A report from AC Nielsen Vantis was equally enthusiastic, noting, “Of forty-four consumer electronics concepts we have tested, we’ve never had a product test as high in what we call the trifecta: intensity of liking, new and different, and need fulfillment.” TiVo’s market prospects seemed even brighter than Keast had dared to hope. At the same time, Keast recognized that the TiVo launch would need to be managed carefully. The company’s goal was extremely ambitious: it hoped to revolutionize how Americans watch television and become a central player in the emerging interactive TV industry. Competitors such as ReplayTV had similar products and designs on the future, so TiVo’s success was far from guaranteed. Keast believed that the product positioning at launch would play a key role in determining who would win the race to personalize television viewing. The Vision Americans have a love/hate relationship with television. In all, 98 percent of the country’s 100 million households own at least one TV. On average, each household has 2.4 TVs and spends seven hours and fifteen minutes per day viewing television. In 1999, 78.1 million households spent $34.4 billion to receive cable TV service...

Words: 3022 - Pages: 13

Premium Essay

Hula Hupps

...Using new product development to grow a brand Introduction 1 2 Kellogg’s and the marketing mix With annual sales of more than £4.5 billion, Kellogg’s is the world’s leading producer of cereal products and convenience foods, such as cookies, crackers and frozen waffles. Its brands include Corn Flakes, Nutri-Grain and Rice Krispies. Managers can decide when to make key changes to a core product by analysing its position within the product life-cycle. Life-cycle analysis accepts that products have a finite life, and analysts chart a product’s performance through several phases, from its launch through various phases of growth until it reaches maturity and eventually decline. A product’s life cycle may last only a few months (e.g. with a fad, or In a rapidly changing and competitive business environment, it is not easy to predict: ◗ ◗ ◗ future trends in consumer tastes and preferences competitors’ actions market conditions. Kellogg’s is a global organisation. Its products are manufactured in 19 countries worldwide and sold in more than 180 countries. In an uncertain world where the organisation’s strategy is to focus on products and brands that are either the market leader or in a strong second position the company believes that this focus upon core and successful products enables it to provide consistent and reliable returns and rewards for its stakeholders. craze) or, as with Special K, for many years. Although it was a successful product, Kellogg’s recognised...

Words: 1953 - Pages: 8