Kellogg Case Study Essay

soft look for establishes a conversation with consumers. It prompts consumer reaction to, for example, a sore(a) result desire and helps researchers understand what they think of it, how it makes them feel, why they find it interesting or not. Qualitative research may be obtained through focus groups, where amoderator catch up withs feedback from a group of six or sevenconsumers to the ideas shown to them. Those ideas may contactthe format of drawings or having new forage prototypes to examine. Quantitative research may usance questionnaires administered to large numbers of respondents. This allows statistical analysis, such as the calculation of a mean score or percentages. It aims to give a voice point of what consumers think of a new harvest-tide idea or a new (real) forage. It may involve the practise of surmounts, so numbers keep up associated with a particular meaning forexample, on a evaluation scale of 1 to 7, where 1 kernel very poor and 7 means excellen t. Crucially those numbers need to be interpreted to enable the business to understand theconsumers overall response.In addition, Kelloggs employ second gearary research which is existing research that has already been collected by other organisations. Sources of secondary data include books, journals, the internet and government statistics. commercialize research agencies collect a range of data which they process and use to provide organisations like Kelloggs with research. The benefits of secondary research be that it is faster and often less expensive than primary, although it may not always be acquitly related to the needs of a specific project. Information assembly discovery to selectionFor Kelloggs, the instal in which the information is gathered is as important as the type of information being gathered. In order to develop the new Crunchy clump Bites, Kelloggs undertook four distinct acts of research. wooden leg 1 DiscoveryInitial research aimed to identify a stri a of new food ideas that would besuitable for developing a new Crunchy eggs reaping.Secondary research from Mintel and Datamonitor was employ tofind forth virtually innovation trends in the cereal market. It was also used to find disclose about new products, flavours and foods from around the world. Food developers at Kelloggs used thisinformation to come up with a number of new food ideas.Focus groups were used to provide qualitative research. These were used to show consumers the new food ideas in the form of a number of different (real) food prototypes, including a mini crispy lattice product and a sappy triangle. The focus groups captured the attitudes and feelings of consumers towards the new foods. This primary research helped Kelloggs to find out how new product suggestions could be developed and still fit in with the Crunchy crank brand. It helped Kelloggs to establish what consumers were looking for in terms of electric potential new flavours and textures.The resul ts allowed Kelloggs to discard some ideas. Other ideas were appealing for consumers exclusively needed refining and further development. At the end of this stage, Kelloggs had a number of new food ideas that all seemed to appeal to consumers. confront 2 Selecting the best ideaThis stage aimed to select the best idea arising from the stage 1 research. Kelloggs put the ideas from the focus group on boards. The boards had pictures video display product ideas and a description of what the new product would be like. These boards were whence shown to a large group of representative consumers in a quantifiable survey. They were asked to rate those ideas against a number of scales, so Kelloggs could identify which product ideas consumers desire best or disliked.The quantitative data created specific statistical information that indicated that a new Crunchy Nut Bites idea was perceived as the most appealing amongst all the ideas time-tested. It established what proportion of people like d the new product idea enough to buy it. It also identify those product ideas that had the best or least sales potential.Information conclave development to launchStage 3 Crafting the idea into a complete new product at a time the best idea had been selected from stage 2, Kelloggs needed to make this idea become a real product. The CrunchyNut Bites food prototype recipe was refined using the feedback from another qualitative and quantitative survey.The qualitative research helped Kelloggs food technologists to explore the taste and texture of the new food idea in to a greater extent detail. Kelloggs needed to understand the eating experience of the consumer before a conclusion could be made about how to develop the recipe in more detail. Following this stage, four product recipes were developed and these prototypes were then tested with representative groups of consumers in a quantitative survey tosee which product consumers preferred. This enabled Kelloggs to select the best wi zard.Also, at this stage, the pack normal for the new Crunchy Nut Bites was developed. Several designs were developed aimed at giving the new product the similar look and feel as the rest of theCrunchy Nut family. The packaging designs were tested withconsumers, which enabled Kelloggs to select the final packaging design for Crunchy Nut BitesStage 4 Forecasting sales for the new Crunchy Nut BitesAt Kelloggs, both product has to undergo one final test prior to a new product launch. This is called the In Home Usage Test. The consumers are given the product to try for several days and this enables Kelloggs to capture how consumers interact with the product for the first time. At the end of the trial, consumers complete a report on what they thought of the food in the form of a questionnaire. This final survey measures how appealing the new product is to consumers and how likely they would be to buy it in real life.The data collected also helped to suppose a sales account for the n ew product for the first and second year in market. The forecast was used by the finance discussion section to set budgets, organise the supply chain and to schedule food production. Once the datawas analysed and the product concept tested, Kelloggs was able to make the strategical decision to go ahead with the new product. Production could then take place.ConclusionKelloggs used market research throughout the firm development process for a new product for the Crunchy Nut range, from the initial idea to the planning of production and delivery. During the earlier stages of research, consumer responses helped Kelloggs to explore very much of different ideas in an open way. It then crafted some ideas in more detail and screened those ideas with consumers to select the one which seemed to have the highest appeal.The idea became real by testing several recipes, refining the food prototype selected and developing the design for packaging.Once the food and packaging elements for the ne w product had been developed, the whole product was tested with consumers to ensure it met their needs. The data also provided a sales forecast to predict the first two years of sales of Crunchy Nut Bites. Crunchy Nut Bites has extended the Crunchy Nut family of products. In doing so it has brought new consumers to the brand and change magnitude its consumption. Kelloggs launched Crunchy Nut Bites in September 2008. Sales data shows it was one of the bestperforming brands to launch in the breakfast cereal kinfolk with a sales value of 6.9 million in its first effective year of sales.* This illustrates that the detailed market research undertaken during the planning stages was valuable. It helped to ensure that the product extension hit the spot with consumers straight away.