Kellogg’s Use of Market Research
Deidre Heitmann Hughes
BUS4036 Marketing Research
U05a2 Enterprises Effectively Using Market Research
Kellogg’s is an over 100 year old company whose focus is primarily breakfast and snack foods with 36 brands under its profile (Kellogg's). Kellogg’s produces its products in 19 countries for distribution of their products in over 160 countries. Current Products for Kellogg’s includes cereals, cookies, snack bars, meal replacement drinks, crackers and other snacks. Key drivers for each of these include taste and convenience with packaging that is colorful, fun and attention grabbing. The market segmentation for the Kellogg’s brands falls under two primary categories; families with young children and those who are interested in nutritional foods and snack that help with weight loss or control. The company’s mission statement is, “To enrich and delight the world through foods and brands that matter.” The company’s strategy has been to brand itself as providing fast, convenient, good tasting breakfast foods and snacks that are nutritious. Kellogg’s enjoys strong brand recognition and retention with the company ranking number 29 out of the Interbrand top 100 global brands (The Top 100 Brands, 2012). Kellogg’s has a marketing team of over 100 senior marketers all over the world and the organization implements common working processes across the territories, however, they are careful to create their brand image and product flavors in harmony with the culture of each country. Kellogg’s diligently utilizes market research for every aspect of its business decisions from branding to new product development.
Kellogg’s Branding Market Research
Kellogg’s has very carefully crafted and maintained its market brand and to do this they are diligent conductors of market research. A successful and effective brand encourages brand loyalty and provides the company with distinction from its competitors. A solid corporate brand lends credibility to each of its products. Kellogg’s has largely been effective in developing both a solid corporate brand to serve as the umbrella for its product as well as developing brand identity to the products themselves. To tie its brands to the corporate umbrella Kellogg’s made the decision to change the branding design on its house of brands products (The Times 100 Business Case Studies). To gather market research on its brands Kellogg’s utilized primary research by surveying one thousand customers on the brands and the product designs. Specifically the company was looking for ease of shelf recognition, and clarity of the name and product. As a result Kellogg’s discovered that their strongest design was their “K” logo. This then lead to teams of designers who were tasked with incorporating the “K” into the packaging of the Kellogg’s individual brands. Again the company utilized market research to continue to gain feedback from consumers as to the success of their designs in order to avoid alienating consumers with drastically different designs that deceased brand recognition and perception. The company further connected their branding changes with consumers by launching direct mail campaigns that coincided with delivery of the new branding images as the products went to market. Kellogg’s New Product Development Market Research
Kellogg’s is a very market oriented company and as a result focuses heavily on identifying the needs of its customers. In 2011 the company generated an excess of $800 million in sales from new products (Kellogg Company 2011 annual report, 2012). Kellogg’s accomplishes this through the heavy use of market research in planning new product lines or extensions of existing product lines. As an example, when developing its Crunchy Nut Bites cereal brand extension Kellogg’s relied on primary research data and secondary research data (The Times 100 Business Case Studies). The...
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