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Unit 10 Market Research in Business - P2
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Unit 10 Market Research in Business - P2
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Kojar Ahmed Unit 10 - P2In this report, I will be talking about Kellogg’s and what different market research methods they use
to make marketing decisions within a selected situation or department. I will talk about the methods
of primary research used and mention how they helped in the development, as well as talking about
secondary market research methods and their benefits to a business like Kellogg’s. I will also mention
what qualitative and quantitative data and mention how they complement each other, as well as
giving a few advantages and disadvantages of each. Lastly, this report will conclude with a summary
of all the research methods used and how they have helped the business become successful.
Kellogg’s is a UK cereal brand that is responsible for many of the known products on the shelves
today, such as Coco Pops, Frosties, Rice Krispies and many others, all of which have been developed
through some kind of market research and have gone through a product development stage.
Kellogg’s was founded on the 19th of February 1906 by Will Keith Kellogg and today is worth around
$65.87 million with its main headquarters being located in Battle Creek, Michigan.
Kellogg’s has never been one to shy away from trying new things, they demonstrate this by regularly
developing their products and coming up with new ideas in order to gain as much brand recognition
as possible, this has evidently been successful as Kellogg’s always seems to be one step ahead of its
competitors like Nestle, Kraft and General Mills.
When Kellogg’s set out to create a new Crunchy Nut brand extension, they were first tasked with
conducting market research that would make it as successful as possible. The best type of research
used for this kind of product development is primary market research, as it would be impossible to
find secondary market research about a product that is still in development. Although primary
market research is usually more expensive and time consuming than secondary market research,
primary market research is the best to use because they can tailor any questions asked in their
interviews, questionnaires, surveys etc. to the actual product itself, and even receive some feedback
on some existing products in order to develop them further.
One method of primary market research that can be used is a survey, this can be conducted either on
the street by staff or through the post where consumers are encouraged to provide their feedback
then send the surveys back. Surveys are an effective market research method to use because they
provide invaluable qualitative data that can easily be read by anyone with minimal training. Surveys
are also relatively cheap to conduct as long as Kellogg’s is willing to invest the time in printing the
surveys and positioning staff on the street. By looking at the results of a survey, Kellogg’s can find out
if the public are open to a crunchy nut type product, or how much they are willing to pay for it.
Another option for primary market research is to use piloting to give the public an idea of what the
product looks and tastes like, as well as providing some consumer interest and recognition. Piloting is
when a business temporarily releases a product for a short amount of time to get a general idea of
the public opinion and response. Different types of piloting could include setting up stalls in
supermarkets where they provide free samples to consumers. The advantage of using a method like
piloting is that consumers have had direct contact and experience with the product, giving their
comments and feedback more credibility. Unfortunately, piloting has the potential to be extremely
expensive, especially if it doesn’t pay off, wasting both valuable time and money. If Kellogg’s decides
to pilot their product to consumers, it may also take some time to get their results back, as time is
needed for the consumers to use and make their mind up about a product.
The last method of primary market research that can be used by Kellogg’s is focus groups. Focus
groups are a group of individuals that have been specifically picked out which Kellogg’s believes best
represents their target market. Focus groups are a primary research method which can be used to
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