THE BRAND SEEMS FAMILIAR ??

OFCOURSE IT DOES…

DOES THIS PRODUCT SEEM FAMILIAR ??

OFCOURSE IT DOESN’T…

BUT IN ‘UK’ IT DOES…

LET ME TELL YOU WHY ??

BUT FIRST BEFORE THAT …

SOMETHING ABOUT KELLOGG’S

Kellogg is one of the world’s leading Producers of cereals. It has manufacturing facilities in more than 18 countries and sells its products in over 180 countries.

Kellogg’s offer a range of healthy and nutritious food Items. It aims to achieve sustainable growth by focusing on meeting the customer requirements.

This can be done by including more products in the portfolio of the company.

THE CASE

Since The Launch Of ‘Crunchy Nut Cornflakes’ In 1980 The ‘Crunchy Nut’ Has Become A Very Important Brand For Kellogg’s With A Sales Value Of £68 Million In UK.

However, in lieu of Brand Extension, two variants were launched under the ‘Crunchy Nut’ brand, namely, Milk Chocolate Curls & Honey and Nut

NOW, ON THE VERGE OF LAUNCHING YET ANOTHER EXTENSION BY THE NAME CRUNCHY NUT BITES, THEY INTEND TO EXTEND KELLOGG’S SHARE OF THE BREAKFAST CEREALS MARKET.

WHAT DO THEY NEED TO ACCOMPLISH THAT??

MARKET RESEARCH

Informs businesses about the things consumers need.

Finds out what consumers are thinking today.

Can identify what consumers might want in the future.

Reduces the risks for any NEW PRODUCT DEVELOPMENT (NPD)

Increases the likelihood that products will be well received by consumers when they are launched.

BUT HOW??

In a market where companies are often operating with aProduct Oriented approach

KELLOGG’s adopts a Market Oriented approach.

It is therefore essential that it identifies and anticipates changing consumer needs before the development of new products.

Market research adds value to businesses like Kellogg’s byidentifying consumers’ needs.

It helps Kellogg’s to plan ahead It focuses the business on the needs of its consumers.

An organization that does this can improve itscompetitive advantage.

PRIMARY RESEARCH-• Includes the data collected by interview with customer.• It prompt consumer reaction to, a new product idea and help

research understand what they think of it, how it makes them feel, why they find it interesting or not.

• Research use questionnaires administered a large number of respondents.

SECONDARY RESERCH-Sources of secondary data includes books, journals, and the internet and government statistics.

METHODOLOGY

METHODOLOGY

PRIMARY RESEARCH WAS FURTHER DIVERSIFIED INTO

QUALITATIVE RESEARCH - Establishes a conversation with consumers

- Prompts Consumer reaction, about the product, what they think of it, how it makes them feel

QUANTITATIVE RESEARCH - Obtained through focus groups - A moderator captures feedback from a group of six or seven consumers to the ideas shown to them.

- May use questionnaires administered to large numbers of respondents.

- Allows statistical analysis, such as the calculation of a mean score or percentages.

THE EXECUTION OF PLAN

STAGE 1 : DISCOVERY

Aimed at identifying a set of new food ideas suitable for developing new product.

Secondary research from Mintel and Datamonitor was used

Focus groups were used to provide new food ideas in the form of a number of different (real) food prototypes.

The results allowed Kellogg’s to discard some ideas.

At the end of this stage, Kellogg’s had a number of new food ideas that all seemed to appeal to consumers.

STAGE 2SELECTING THE BEST IDEA

This stage aimed to select the best idea arising from the stage 1 research.

Kellogg’s put the ideas from the focus group on boards and boards were then shown to a large group of representative consumers in a quantitative approach

Ideas were rated on a number of scales

It indicated that a new Crunchy Nut Bites idea was perceived as the most appealing amongst all the ideas tested.

It established what proportion of people liked the new product idea enough to buy it. It also identified those product ideas that had the best or least sales potential.

STAGE 3 CRAFTING IDEA INTO PRODUCT

Emphasis On Qualitative Research To Understand The Eating Experience Of The Consumer

Quantitative Survey Of The Four Finalised Recipes Enabling Kellog’s To Select Best One

Pack Designs Developed And Tested On CoNsumers To Select The Final Packaging Design For Crunchy Nut Bites

STAGE 4 FORCASTING SALES

‘In Home Usage Test’.

Consumers are given the product to try for several days

At the end of the trial, consumers complete a report on what they thought of the food in the form of a questionnaire

The data collected also helped to calculate a sales forecast for the new product for the first and second year in market.

finance department was able to set budgets, organise the supply chain and to schedule food production.

CONCLUSION

Kellogg’s launched Crunchy Nut Bites in

September 2008. Sales data shows it was one of the bestperforming brands to launch

in the breakfast cereal category with a

sales value of £6.9 million in its first full year of sales.*

This illustratesthat the detailed market

research undertaken during the planning

stages was valuable. It helped to ensure that the

product extensionhit the spot with consumers

straight away.