KELLOGG'S: CASE STUDY

Kellogg's: Case Stud



Kellogg's: Case Study

Question 1 - Marketing Concepts at Kellogg's

1. The Relationship Marketing Ladder for Coco Pops Choc 'N' Roll Cereal

Relationship marketers mention the "relationship ladder of customer loyalty".

[Ladder of Customer Loyalty]

The ladder for “Coco Pops Choc 'N' Roll Cereal” sets different types of customers in accordance with their height of loyalty. The ladder's primary step contains "prospects", which is, persons who have not bought “Coco Pops Choc 'N' Roll Cereal” so far but are about to buy in the future. The next is the following steps of "customer", "client", "supporter", "advocate", and lastly "partner". (Baloglu 2008, 159-166)

The objective of the relationship marketing ladder is to "assist" customers of Kellog's to be as high up the ladder as achievable. This typically engages offering more tailored product just like “Coco Pops Choc 'N' Roll Cereal” and giving service quality which goes beyond customers' hopes. Kellog's must expect to keep customers to the extent that systems in place assist to support the customer to go to advocate stage. (Calder 2008, 54)

2. Customer Perceived Value for “Special K Protein Meal Bar Chocolatey Chip”

Customer perceived value (CPV) means that Customers are going to purchase from the company that they perceive as presenting the maximum perceived value. CPV is the distinction between all the expenditures of any product and the supposed alternatives and the potential customer's assessment of all the benefits.

Customer perceived value

We can link “Special K Protein Meal Bar Chocolatey Chip” to customers health and life creating strong Customer perceived value. Consumers will not understand that the costs of making for Kellog's are quite small. Therefore, as the production cost for the product can be only a small number of dollars, the perceived value of the product be far more.  (Calkins 2005, 85)

3. Types of Needs, Wants and Demands for Kellogg's customers

The following are types of needs, wants and demands for Kellogg's customers. The company's portfolio of brands catering to the emerging health conscious consumers would fuel its profitability and strengthen its presence in the future.

The growth in interest in healthier lifestyles has allowed Kellogg's Special K to connect deeply with the concerns and motivations of consumers seeking to control their weight.

By developing a range of brand extensions Special K has been able to increase its ability to meet a wide range of different consumer needs with respect to their weight management aims.

Increasingly Special K is engaging consumers online via its website. In particular the “Special K Challenge” diet has been taken online and linked in with online tools and information in order to encourage consumers to interact with the brand regularly.

Special K has been strong in understanding the reasons why consumers use online communities and has therefore developed highly appropriate online content and services to meet the needs of these people.

Question 2 - Market Research at Kellogg's

Before launching the Coco Pops Choc 'N' Roll Cereal, the market research has great importance for Kellog's as it is a market-oriented company. Marketing Research is the systematic and objective classification, collection, analysis and ...