Kellogg Company Research Tools
Introducing a new product into the market can be a very challenging process for organizations with competing businesses of the same target market.In order to understand consumer needs, purchasing behavior, and market niche, product and consumer analysis is studied in many forms of research.Introducing a new product allows a company many ways to understand consumers and to identify a variety of marketing opportunities.As Kellogg Company introduces a new nutrition cereal bar into a market of high powerful brand products, the company must first raise the interest of consumers already associated with the brand itself.
Kellogg Company understands that consumers are moving towards a trendier way of eating breakfast that consists of on the go consumption such as bagels and snack bars.
Picking up on this trend, Kellogg acquired Lender’s Bagels, the nation’s biggest bagel maker, and the cereal giant has also entered the nutrition bar segment with its Nutri-Grain Bar (AllBusiness, 1998).While competitors like Quaker Oats Company and General Mills start to become vulnerable to the change in breakfast consumption, Kellogg performs various studies and research to introduce the nutrition bar into the market and hope to stay ahead of competing trends (Kellogg Company, 2009). Market research can vary from a simple consumer survey card to more complex as a nationwide survey of sampled participants. With Kellogg introducing the new Kellogg;s Nutrition Cereal Bar, it’s important for the company to use research tools to implement the new product.Kellogg Company will use four research tools that will work best as the company introduces a new product. Included are primary research, secondary research, qualitative ethnographic research and in-store promotions and field trials.
Comparing and Contrasting Research Tools Primary research is research that is customized for Kellogg Company’s particular needs by using proven approaches like analyzing sales trends and other internal company data from which the company can gain insight about the target market. Primary research delivers more specific results based on statistical methodologies.Kellogg can research sales trends among comparable products in more detail to see what has and has not worked for other companies (Aaker, Kumar & Day, 2007). Kellogg will use primary research information that has been collected from consumers by way of surveys and interviews. Primary research data will allow Kellogg to find out about the likes and dislikes of consumers, and what triggers will motivate the primary market to accept a new product. Although primary research may be time consuming and costly, it helps management understand what products can be tailored to fit consumer needs.Secondary research will also be used in Kellogg Company’s research.
The types of secondary information that Kellogg can gather include external data, trend reports, market statistics, and consumer buying behavior. In-store promotions and field trials will allow Kellogg’s to see what consumers think of the new product’s taste, look and over all new idea. Secondary research is often a quick and cost effective way of gathering data that is required while attempting to gain an understanding of the target market into which a company plans to introduce a new product.The qualitative research method involves a researcher working with a small cross section of consumers, observing and listening to discussions relating to brand, packaging, products and advertising as they relate to a specific company. Qualitative research helps a company to identify consumer perception and to understand the reasons behind consumer purchasing decisions. Kellogg will able to use qualitative research to develop new concepts of family brand products and support consumer observation by finding solutions to ensure that the brand and product design is consistent with the Kellogg family of other products.The qualitative ethnographic research will be used in the in-store promotions because Kellogg will be observing consumer behavior in the market setting.
This allows the company to gather more accurate details from consumers regarding preferences, attitudes, behaviors and customer interaction (Aaker, Kumar & Day, 2007). In-store promotions and trails also allow Kellogg to ask consumers questions about what they are looking for in a nutritional cereal bar, and to give the consumers a free sample, coupon or mail-in rebate.In-store promotion and field trials will also allow Kellogg to encourage consumers to try the new product. Product packaging and placement serve as important factors when conducting in-store promotions because such areas are vital for consumers to experience new features and brand attributes. Allowing consumers to try a product prior to making a purchase helps them to base their purchase decisions on taste and nutritional benefit. While all the research tools discussed will benefit Kellogg Company as the new nutritional cereal bar is launched, some will produce more meaningful results than others.Being a food product, Kellogg management will surely gain the most insight into consumer attitudes and the target market through in-store promotions and field trials.
This research method allows consumers to taste, touch and view the new product in the market setting, providing pure results from field observation and data collection. In addition, the opportunity to distribute samples, coupons and mail-in rebates allows Kellogg to gain new customers during the research phase rather than at the point of product launch into stores.In the case of Kellogg Company’s launch of the new nutritional cereal bar, primary research could prove to be too costly and time consuming as compared to other research methods. Though an important and beneficial research method, using secondary research, qualitative research and in-store promotions and field trials will allow Kellogg to quickly gain the valuable information needed to launch the new product without the extra time and expense associated with primary research methods. Marketing research is a key factor in launching new products.Market research provides an understanding of the size of a target market and if new products will resonate with consumers. Kellogg Company has continued to explore the consumption habits of busy consumers to identify how the company’s products fit into their daily lives (Kellogg Company, 2007).
Kellogg Company plans to launch a new nutritional cereal bar that will attract new customers to the healthy and tasty brand, while continuing to be a consistent profitable market force for retailers.References Aaker, D. , Kumar, V. and Day, S. (2007). Marketing research (9th ed. ).
Hoboken, NJ: John Wilay & Sons, Inc. AllBusiness. (1998). With sales declining and cereal consumption waning, Kellogg launches functional food line. Retrieved August 16, 2009, from http://www. allbusiness. com/retail-trade/food-beverage-stores/738242-1.
html Kellogg Company. (2007). Kellogg Company: A historical overview. Retrieved August 17, 2009, from http://www. kellogghistory. com/history. html Kellogg Company.
(2009). Kellogg’s new products. Retrieved August 17. 2009, from http://www2. kelloggs. com/Product/NewProducts. aspx