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Kellogg

In: Business and Management

Submitted By mahfuzhasan
Words 3452
Pages 14
Introduction
Decision making is a vital part of business. But without having the appropriate source of information it can’t be 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
Primary data is information collected for the specific purpose at hand (Kotler et al 2008: 334). Data that is collected by the analyzer himself is called primary data. It is the best mode for gathering information. Since this data is relatively fresh, it normally helps to make decision in a different way.
Secondary data is the data that already exists. This kind of data is collected by a third party and can be found in any type of media. It is easier to collect in comparison with primary data. Secondary data as a matter of fact, provides fundamental and rich insights into research study ( Avasarikar et at 2007: 3-8).
In this study author will rely only on secondary data. Because in order to help Kellogg making the right decision, he will have to study the data previously published and also have to compare it with the data he will collect himself.
First of all author will collect the secondary data from Kellogs website and then other sources like newspaper that reflects Kellogg’s actual position among the competitors. Data that will be collected from Kellogg’s website is crucial since it represents the ups and downs of the scenario and differentiate between the right and wrong decision taken by Kellogg. There will also be data on consumer behaviuor . Finally data on pricing will be collected from numerous trusted journals. After gathering enough information, the author will take a survey where he will compare the existing data with the fresh one. Author will also compare three existing products that is a serious threat to Kellogg’s. He will survey how Kellogg’s latest branding is working and also how much impression it has put in customers mind. Then he will take a survey on people’s opinion about people’s impression about Kellogg’s rivals. Thus he will be able to help in making the right decision.
1.2 present the survey methodology and sampling frame used
The list of three products that is Kellogg’s barrier to achieve market monopoly is called the sampling frame. Marico, Britania and Nestle are supposed to be the main rivals of Kellogg. Other companies will be ignored since they don’t represent the important share of neither cereal nor biscuit market. This three companies wll be considered the sampling frame. Here Marico and Britania is viewed as the local competitors and Nestle as the Global. All of them products in common that can seriously give Kellogg a hard fight. Since Kellog converted its attention from cereal to biscuit products, Britania and Marico should be taken into consideration. By analyzing these two brands market strategy, branding , pricing, the author can find the appropriate decision for Kellogg. Moreover author will analyze the strategy of Nestle. And then he will go after consumers. That will help him realizing how the other multinational companies are running their business in India. And Nestle has some quality cereal products those are a serious threat to Kellogg’s everlasting dominance in Indian market. Lets guess Britania has product ‘A’ that is the rival of Kellogg’s product ‘B’. Marico has product ‘C’ that is the rival of kellogg’s product ‘D’. Finally Nestle has product ‘Y’ that is superior to kellogg’s product ‘Z’ in terms of market share. Author will analyze all the situations.

Company Product Rival
Kellogg B A(Britania)
Kellog D C (Marico)
Kellog Z Y(Nestle)

1.3 design a questionnaire for a given business problem
Author will search for its rivals production capacity and behavior towards consumers. In this situation Questionnaire is a must needed tool. Author can gather this data only through making a reliable questionnaire. There should be wide list of questions on that list that will help him gathering information about everything of a company ranging from product Prduction capacity to customer behavior. The respondent should be selected carefully because their answers will mean a lot of thing. Personal interview with rivals companies’ employee shoul be arranged if possible. During the survey author will also gather customer’s view on Kellogg’s product, pricing, branding, and also why they like it and why they don’t.
They questionnaire has to be like this: 1. First of all it should introduce Kellogg and then tell the purpose of the servey 2. Then it should query about whether the respondent consume Kellogg product or not. 3. Then it shoul ask whether he or she prefers it or not. 4. If the answer is yes then move to number 9 5. If no then which one he/she prefers and why? 6. How he/she thinks it’s better than Kellogg. 7. How Kellogg can improve its product. 8. When he/she will prefer Kellogg product. 9. Will he/she hang on with Kellogg if Kellogg continues its current service?

2.1 Create information for decision making by summarising data using representative values:
The following charts represent the outcomes of the questionnaire. They will unveil all the answers and consumers behavior related to this assignment. The histograms have been derived from excel sheets.

Analysetheresults(from2.1)todrawvalidandusefulconclusionsforKellogg’s
The chart shows that people with low income usually have the same attitude towards all of these products. Since these products considered an expensive item for their male, they prefer ordinary brands. People with mid income prefer Britania’s product over kellogg’s. Though here Kellogg are also facing fierce competition from Marico’s products. But among the mid-income consumers Kellogg products perform well and they are way ahead of their competitiors among the upper income consumers. So it shows that People with heavy earning always prefer Kellogg’s products.

Now there is another chart that will compare Kellogg’s cereal products with Nestle’s.

The above chart shows that except for the average income group Nestlé’s product outbid Kellogg’s product in every circle. That stands for 45% of the market share whereas Kellogg’s one stands for only 15% of the market share. Data shows 40% of income group consumers regularly use Nestle product whereas 20% of them use Kellogg’s. It is also implied that 20% of the average income group uses Nestle product whereas 5% of them use Kellog’s. Next the mid income and upper income group. Both of them prefer Nestle so heavily that it seems like a reverse situation of Nestle Biscuits products where lower income group prefers others to Kellogg and upper income group regularly use them.

2.2 Analyse the data to draw valid conclusions in a business context:
To calculate the skewness of data distribution, we use the Coefficient of Skewness formula. If C of S is nearly +1 or -1, the popularity among consumers is highly skewed. In this case, we can see that both C of V of income and expected popularity are positive The distribution is skew to the right. Because the skewness of popularity among consumers is higher than the skewness of expectation so the expected salary is more spread out.

A suitable survey methodology in terms of population, sample and sampling methods that could be used to collect the Indian cereal market, consumers opinions on the different range available on the market is the different types of sampling methods, which are used to gathering information about a products. The alternative would be to test, measure or question every itemts of the market, this might be impractical because It could take too long, difficult to access all items in markets such as their local and international demand. it‟s too expensive and total market size may be unknown. Advantages of sampling; is that it saves time and money, and sometimes can be the only option. Disadvantages are that sampling error, this is when sample is not representative of total markets share, this bias can be computed and analysed. Non sampling errors, this is when missing data, defective questionnaires etc, these cannot be computed and analysed so sampling must be planned and carried out well.

2.3 Analyse data using measures of dispersion to inform a given business scenario: Cross table showing the distribution of data by consumers income and expected sale Count of expected salary Product’s performance
Consumers’ salary Marico Britania Nestle Kellogg 1000-20.000 53 6 0 0 0 >20.000-40.000 163 26 3 4 2 >40.000-60.000 92 23 1 8 0 >60.000-80.000 20 6 3 4 0 1 >80.000-100.000 15 3 1 0 1 Total 350 67 8 17 3 7 46

Look at the table above, we can see that almost the Income level of consumers
Of Indian cereal market . With 350 Billion total market value, the number of international brands like Nestle and Kellogg will influence the number of the other culture back-ground so we cannot see the relationship between the local product and the international product correctly.
Cross table showing the distribution of Kellog’s products data by gender and Income Count of income Gender Expected salary Male Female 20.000-40.000 97 125 >40.000-60.000 53 85 >60.000-80.000 19 22 >80.000-100.000 7 16 >100.000-200.000 5 4 >200.000-800.000 0 4 Total 206 292 Look at the table above, we can see that at the different salary from less than £20,000 to £100,000 the number of male and female is similar (because there are more female than male here). But the female are tend to expect use more Kellogg’s product than the Male. There are 8 females have the Kellogg’s products from over £100,000 to £800,000 per year while there‟re only 5 males who want to have the Kelloggs products over £100,000 per year. May be the male are much more cautious about spending on food items than the female so they just expect the lower outcome than the female. 2.4 Explain how quartiles, percentiles and the correlation coefficient are used to draw useful conclusions in a business context: Quartile: „Quartile represents the middle value between two quarters of a distribution‟ (Dransfield, 2003). The lower quartile is the value between the first and second quarter of the distribution. The upper quartile is the value between the third and fourth quarter of the distribution. The middle quarter is called median. Percentile: Percentiles are values that divide a sample of data into one hundred groups containing equal numbers of observations. For example, 30% of the data values lie below the 30th percentile (Easton and McColl, 2010). Coefficient: the coefficient of variation measures the spread of a set of data as a proportion of its mean. It is the ratio of the sample standard deviation to the sample mean. It is often expressed as a percentage (Easton and McColl, 2010). Quartiles, deciles, and percentiles divide a frequency distribution into a number of parts containing equal frequencies. According to the 50% consumers use their kellogg’s each year above £40,000 and 50% of spend per year below £40,000. The items are first put into order of increasing magnitude. Quartiles divide the range of values into four parts, each containing one quarter of the values. Again, if an item comes exactly on a dividing line, half of salary of consumers counted in the group above and half is counted below. Similarly, deciles divide into ten parts, each containing one tenth of the total frequency, and percentiles divide into a hundred parts, each containing one hundredth of the total frequency. If we think again about the median, it is the second or middle quartile, the fifth decile, and the fiftieth percentile. If a quartile, decile, or percentile falls between two items in order of size, for our purposes the value halfway between the two items will be used. Other conventions are also common, but the effect of different choices is usually not important. 3.1 Produce graphs using spreadsheets and draw valid conclusions based on the information derived:
The line chart shows the trend which took place in sales of Indian Biscuit markets during the four-year period from 2003-2006. As we can see in the chart, the trends of two markets were contradictory. Firstly, in 2003 there was a big different between the sales of products to lower income group an upper income group because the other sales was 10 times higher than the domestic sales with £80,5m and £8,4 m, respectively.

However, in 2004 the export sales sudden plunged significantly from £80,5m to £37,4m and continued to go down in subsequent years and remarkable decrease to £1,8 m in 2006 while the domestic sales from 2003-2006 were erratic a little bit but in general it still remained stable, from £8,4 m in 2003 to £13,8 m in 2006. It can be said that Kellogg has found the stability in Biscuit market but they were losing their place in the Cereal markets although they used to be successful before with the high sales. So it‟s necessary that the company needs to attach more special importance to the international market by some prosper strategy and plan in marketing or in the quality of product in order to affirmed the company’s brand and attract more foreign partner.

3.2 Create trend lines in spreadsheet graphs to assist in forecasting for specified business information:

The chart above illustrates the use of a third order polynomial and projects a significantly higher 30-period outcome of the sales information. The forecasting problem is integral to a fledging company such as Kellogg. Yet, many senior executives, managers, and administrators have difficulty interpreting the meaning of a given time-series forecast based on methodology alone in the business information. We have used the forecasts generated by each method are quite different from each other. Moreover, the methods depicted above illustrate only a small sampling of the We have used the forecasts generated by each method are quite different from each other. Moreover, the methods depicted above illustrate only a small sampling of the most common time-series forecasting techniques in use today. Other forecasting methods include such techniques as autoregressive moving averages, generalized autoregressive conditional heteroskedastic methods, multivariate forecasting methods, and a long list of other advanced techniques in frequent use by companies.

3.3 Prepare a business presentation using suitable software and techniques to disseminate information effectively :
Power Point, Excel will be the medium for the presentation to the CEO and other high ranking officers of the company. The author chose this medium because Power Point is powerful, easy-to-use presentation software that is part of the Microsoft Office suite of products.

3.4 Prepare a formal business report:
December 13, 2013
Ms. Leonore Fielding
Vice-President of Operations
Kelloggs India,
India.
Dear Ms. Fielding
The report which you requested, represents our research regarding the survey publications at cereal market in India. This report contains an analysis of current market condition in India and provides a future strategies needs for your company. In the future action plan in our report we provided the results of our research not only within the company but also in the national and international level. We are especially grateful to the Kellogg’s staff, in particular the members of the communications group, for their honest cooperation’s.
Hence, I look forward to discussing our recommendations with you and will be happy to meet with you and your staff regarding our report and its exciting findings.
Sincerely
Mr. X
4.1 Use appropriate information processing tools
All kind of business organizations (both national and international) require information for following purposes
* Planning
* Controlling
* Recording transactions
Good quality information is needed to fulfill those purposes mentioned above. There are three types of information. 1. They are Strategic 2. Tactical and 3. Operational information.
Strategic information is used for planning the organization’s long term objectives and Goals. Here the senior managers are involved in this types of planning. It is both quantitative and qualitative but the future cannot be predicted.
Tactical information is short and medium term planning in which productivity measurements are included. It based on quantitative measures and prepared regularly. It is generated internally and external component are limited.
4.2 Prepare a project plan for an activity and determine the critical path:
This section shall contain, either directly or by reference, plans for the supporting functions of the software project. Supporting functions include (but may not be limited to): • Software quality assurance, • Verification and validation plans, • Production support and operational support functions.
4.3 Use financial tools for decision making
Financial tools underlie any process of intelligent decision making. Most families seeking to reform their financial habits focus on tactics rather than strategy. These are two different terms that are often confused. Tools refer to a long-term plan with set criteria for success. Tactics are shorter term plans that are used to push forward to the goals laid out by the strategy. A tactic might be something like deciding to cut down on energy usage to reduce electricity bills.
Conclusion:
In Business Decision Making, we use variety of sources to collect data so that we can make an accurate decision by analyzing different cost of business. We also apply a wide range of techniques for analyzing those data such as use of different kind of graphs which show the business how to draw valid conclusions based on the information and thus lead to a formal business report. In addition, the management information systems use a lot of calculations and diagrams to suggest suitable information tools for different levels of the organization.

References:
Abrahamson, E. (1996). "Managerial fashion." Academy of Management Review.
21(1):254-285 [online] available from http://www.jstor.org/pss/258636 [12 May 1996
Aaron,S., (January 23, 2009). "Scrum Product Manager / Product Owner Roles and
Responsibilities". PM Hut[online] available from <http://www.pmhut.com/scrum-product-manager-product-owner-roles-and-responsibilities> [21 November 2009]
Cagan, M. (2008). Inspired: How To Create Products Customers Love. SVPG Press; 1st edn Hahn, G. J., Hill, W. J., Hoerl, R. W. and Zinkgraf, S. A. (1999) The Impact of Six Sigma
Improvement-A Glimpse into the Future of Statistics, The American Statistician, Vol. 53,
No. 3, pp. 208-215.
Haines, S (2008). The Product Manager's Desk Reference. McGraw-Hill; 1 edition
Lawley, B. (2009). The Phenomenal Product Manager: The Product Manager's Guide to
Success, Job Satisfaction and Career Acceleration. Happy About Press. Miriam Jordan (1998) ‘Foreign Rivals Spur India's Homegrown Firms’, New York Times[online] available from <http://www.nytimes.com/1998/02/05/business/worldbusiness/05iht-compete.t.html> [5 February, 1998]
Turban, Efraim (2002), Electronic Commerce: A Managerial Perspective New Jersey: Prentice Hall
Pp. 56-62
Peppers, D. and Rogers, M. Ph.D. (2008), Rules to Break and Laws to Follow New Jersey: Wiley.
Pp. 23-29
Pine, B. J. II; Gilmore, J. (7/1/98), "Welcome to the Experience Economy", Harvard
BusinessReview.
<http://www.itu.dk/courses/DIDE/E2006/downloads/welcome_to_the_experience_econo my.pdf> [Accessed 26th Jan, 2012]
Kotler, P. Amstrong, G. Wong, V and Saunders, J.(2008) Principles of Marketing. New Jersey: Prentice Hall

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Kelloggs

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Kelloggs

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