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BTEC Diploma level 3 in Business Unit number: Unit 3 Assignment ttle: Chocoholic
Unit ttle: Introuucton to Marketng Deauline: 1103300316 Learnerss name: Daniil Chernat
P3) Describe how a selected organizaton uses marketng research to contribute to the
development of its marketng plans.
P3) Kelloggss is an American worlu-leauing cereal company, which has been prouucing cereals for more
than a 133 years. The companyss main focus is to grow contnually by improving their prouucts anu
extenuing the range of cereals. Kelloggss use market research to fnu out about their customer neeus.
The objectve is to expanu within the cereals market. For Kelloggss to create a new prouuct, it has to
come through four stages:
1. Primary research
0. Seconuary research
3. Creatng new prouuct
4. Forecastng sales
P3) External seconuary market research was useu by Kelloggss ; this hau been collecteu by the
research agencies Mintel anu Data Monitor. It gave them insights into changing trenus in the
cereal market. This then helpeu Kelloggss to come up with new foou iueas. Then Kelloggss trieu
out their best iueas with small focus groups to generate qualitatve research.
M2) Kellogg's useu Mintel anu Data Monitor to carry out their seconuary reserch. These was very
expensive anu Kellogg's hau to spenu a lot of money in oruer to conuuct a seconuary research.
Therefore, althgough the result were valiu, they were not cost efectve because of the high cost of using
these companies.
P3) This seconuary market research was very useful, because it showeu Kelloggss which prouuct
customers likeu the most, anu it also showeu the new trenu in the cereal market. The company learneu
the preference on the taste of cereals of their customers. Prety much Kelloggss uiunst have any
compettors, because Kelloggss have uone a lot of surveys with focus groups, also they have uone
questoners to see what people like the most, which is a felu trial. As well as uoing felu trial, Kelloggss
have uone panels, which gave customers a full uescripton of the new prouuct.
M2) Kellogg's has uone a lot of uiferent types of primary research at this stage. This research was
expensive anu Kellogg's hau to conuuct a lot of research in oruer to see what prouuct people likeu the
most. The reason why this research was so expensive is because Kellogg's hau to pay its workers to carry
out the research as secveral workers are neeueu for each focus group. Another uisauvantage of this
process woulu be taking a long tme to analyse the result of the research anu paying workers money, in
oruer to conuuct a research.
D2) In my opinion Kellogg's shoulu have conuucteu only one type of primary research with a
wiue range of people. This process woulu have saveu money for the company anu the results of
the research woulu have been collecteu anu analyseu quicker. I woulu reecomenu an internet
questonaire, because it is a very cheap methou.'Due to urastcally lower overheau, collectng
uata uoes not have to cost you thousanus of uollars (See source bellow). Also, this type of research will
take less tme, then conuuctng a felu trial. 'Rapiu ueployment anu return tmes are possible
with online surveys that cannot be ataineu by trauitonal methous '(htp:00survey.cvent.com0blog0market-
research-uesign-tps-00auvantages-anu-uisauvantages-of-online-surveys)'. This shows that using an online questonnaire
woulu be benefcial anu cost efectve for the Kellogg's.
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