KELLOGG'S

Kellogg's Marketing Research

Table of Contents

TASK A1

Types of Market Research2

Different Market Research Methods and Different Marketing Situations2

TASK B5

Market Research Type5

Secondary- Quantitative Market Research5

Decision-Making Processes5

Business Plan7

Reasons for Choosing the Particular Method8

Research8

Sample8

Strengths9

Brand portfolio9

Scale9

Leading Market Position10

Strong product innovation creates sustainable growth11

Strong results in tough economic and macro environment11

Weaknesses12

Underinvestment12

High debt levels12

Lack of scale as compared to peers12

Dependence on few customers for major portion of revenues13

Product recalls hampering brand image13

Opportunities14

Emerging markets14

Health and wellness14

Growing global breakfast cereals market15

Threats16

Product recalls16

Price wars16

Stringent regulations16

Soft consumer spending in the mature markets of the US and Europe17

Intense competition and changing global retail scenario18

Secondary Internal Research (annualreport2010.kelloggcompany.com)18

Primary External Research19

TASK C20

Figure 1: Your position in the company20

Figure 2: New products are dominated by line extension and product promotion21

Figure 3: Popularity of private labeled cereals is increasing due to high cost of branded products22

Figure 4: The demand for health food markets & products is higher23

Figure 5: Customers are affected by the change in price (service charges)24

Figure 6: Promotional activities increase the sales of the company by a greater extent25

Figure 7: Kellogg is particularly weak in hot cereals, with only a 3% share of the French hot cereals market. This is clearly an area in which Kellogg can expand.26

Figure 8: Kellogg is absent from the UK market for hot cereals as well. Hot oats for breakfast while a quintessentially Scottish breakfast choice still has considerable scope for growth in England27

Figure 9: Birth rates have a significant impact on sales of children's breakfast cereals28

Figure 10: Depressing sales of children's breakfast cereals in mature markets is also a growing concern over sugar levels in brands marketed at children.29

Figure 11: With the exception of the US market, Kellogg is not active in granola/muesli bars among the top 10 best-performing markets.29

TASK C31

Push Forward In Emerging Markets32

Replicate US Success Elsewhere33

Consider Hot Cereals33

Consider New Launch in Children's Breakfast Cereals33

References34

Appendix36

Kellogg's Marketing Research

TASK A

Market research has been classified as a type of descriptive research (type of conclusive research that has as main objective the description of something, usually the market characteristics or functions) as well as are: studies of participation, sales analysis studies, imaging studies, among others (Aaker 2006: pp. 15-19).

On the other hand, note that the terms market research and marketing studies are often used interchangeably. However, in trying to distinguish some books separately, according to this theory, market research and market study itself is a type of marketing research and studies such as advertising, consumer and others (Aaker 2006: pp. 15-19).

However, regardless of the current research on their classification and synonyms, it is important that marketers consider the following: Market research is a marketing activity that is intended to help a researcher to make decisions in specific market situations. For example, to develop a sales forecast (for 1 year, 1 semester or a specific season) the marketer needs to know the current size of the target market, and for this, researcher needs market research to help us make this important data (Labroo 2006: pp. 374-385).

Given the above, it is logical to say that marketers should have good knowledge about what a ...