The Russian Presidential Academy of National Economy and Public Administration
BTEC Business Level 3
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BTEC Level 3 in Business Unit 10 Daniil Chernat
P2) Explain which of those market research methods have been used to make a marketnn
decision in a specifc business or situatonn
D1) Evaluate the market research methods used by a selected ornanizatonn
P2) Kellogg’s is an American world-leading cereal company, which has been producing cereals for more
than a 100 years. The company’s main focus is to grow contnually by improving their products and
extending the range of cereals. Kellogg’s use market research to fnd out about their customer needs. The
objectve is to expand within the cereals market. or Kellogg’s to create a new product, it has to go through
four of research:
1. Primary research
2. Secondary research
3. Creatng new product
4. orecastng sales
Kellogg’s was trying to develop a new product called ‘Crunch Nut Bites to improve Kellogg’s portolio of
products. Also, Kellogg’s conducted research before developing and launching the product.
P2) Stage one: In Kellogg’s market research plan, one of the methods hat Kellogg’s used was focus groups
for qualitatve research. The Kellogg’s primary research revealed four main elements about the cereal’s new
market.
New food ideas for the market
The potental for the trial of new food prototypes
The value of introducing new flavors and textures
Eliminaton of some ideas
Secondary market research used by Kellogg’s had already been collected by the research agencies Mintel
and Data Monitor. It gave them insights into changing trends in the cereal market. This then helped
Kellogg’s to come up with new food ideas. Then Kellogg’s tried out their best ideas with small focus groups
to generate qualitatve research. The qualitatve research would provide detailed informaton about
customer’s opinions and preferences towards a new product.
D1) This market research was very useful, because it showed Kellogg’s which product customers liked the
most, and it also showed the new trends in the cereal market. The company learned the preferred tastes in
cereals of their customers. Kellogg’s had no major compettors for the Crunchy Nut brand, because Kellogg’s
had completed a lot of surveys previously with focus groups, also they had conducted surveys to see what
people liked the most. This was a feld trial. Secondary research alone was not enough for Kellogg’s to make
any fnal decisions especially because the informaton from Mintel and Data Monitor may not have been
entrely appropriate to the informaton that Kellogg’s researchers were trying to collect.
As well as doing a feld trial, Kellogg’s have held panels, which involved experts discussing the products.
Kellogg’s could achieve compettve advantage by making sure that the new product they released was
Crunchy Nut Bites because customers were thinking that this new product is tasty and they would buy it on
regular basis.
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