The Situation Kellogg: From Slumping to Thumping Kellogg is the world’s leading producer of cereal and a leading producer of convenience foods; including cookies, crackers, toaster pastries, cereal bars, frozen waffles, meat alternatives, pie crusts, and cones, with 2010 global sales of about $12. 4 billion and a market share of more than 30 percent. David Mackey, CEO of Kellogg, takes pride in being part of the Kellogg company because of the consistency of the decisions that are made within the company to promote the long-term growth of the business, as well as serve the needs of their people ND communities.
With such a large market share, one would think that Kellogg is untouchable. However, Kellogg faced a slump in the market. Its cereal sales were declining, and it had to face the challenge of getting out of its slump. Kellogg, therefore, turned to marketing research to identify the problem and develop several potential solutions to increase cereal sales. Kellogg used several tasks to identify the problem. The researchers spoke to decision makers within the company, interviewed industry experts and conducted a review of available data.
Several important issues came out of this relaying research. Current products were being targeted to kids. Bagels and muffins were winning for favored breakfast foods. High prices were turning consumers to generic brands. Some other information also came to light during the research. Adults want quick foods that require very little or no preparation. Follow Up Questions Name the symptom(s) that lead David Mackey, CEO of Kellogg to realize there was a problem. Select all that apply.
Growing trend in generic brands for cereal Some of Kellogg breakfast foods required too much preparation Cereal sales were declining Growing demand for bagels and muffins This case was prepared for class discussion purposes only. The problem scenario is hypothetical and has been developed from a case by Nearer Malory (2002), Basic Marketing Research, Prentice Hall. Which of the following best describes the difference between symptoms and a problem. Select all that apply. Symptoms are signals that alert the business there may be a problem.
Problems are signals that alert the business there may be a problem. Problems are the factors that cause the symptoms. Symptoms are factors that cause problems What is/are the underlying problem/s in this case? Select all that apply. Kellogg is targeting the wrong segment: kids Competition for bagels and muffins is stiff Kellogg prices are too high Kellogg needs to introduce new products What types of research design and information sources did Kellogg use to identify the problem(s)? Exploratory Descriptive Casual Both a and b Which research method(s) were used to collect the data?
Select all that apply. Experience Us raves Case Analysis Secondary Data Analysis Experiments Which of the following examples from the case (if any) are forms of exploratory research? Researchers conducted expert interviews Researchers conducted secondary data analysis Neither a nor b are examples of exploratory research What type of information sources/data did Kellogg use to collect this information? Select all that apply. Primary data Secondary data Pluralistic data Suppose the researchers did conduct secondary data analysis.
Which of the following could be examples of information sources used in this case? Breakfast food industry journals, reports, and white papers Tracking data of all breakfast foods sold by Kellogg in the past three years Purchased syndicated data of all breakfast foods sold by top breakfast food competitors in the past three years All of the above are possible secondary information sources If researchers did use tracking data of all breakfast foods sold by Kellogg in the past three years, which component of the Marketing Information System (MIS) would that information represent?
Internal Records Marketing Intelligence Marketing Research Marketing Decision Support System Let’s assume David Mackey agrees with the problem assessment and wants to conduct additional research at one point in time among a large sample group to provide information to help him potentially solve one of the business problems; Kellogg may be targeting the wrong segment. As the market researcher assigned to this case, you are asked to prepare the research proposal for Mackey’s approval.
First, you need to craft the research objectives. Which of the following is a sound and complete research objective to help Mackey determine whether or not Kellogg is targeting the wrong segment? Conduct a study among consumers who eat breakfast at least three times per week to measure attitudes and perceptions about consuming Kellogg cereals Conduct in-store observations among consumers who eat breakfast at least three times per week between the ages of 25-65 years old
Conduct an online survey among consumers who eat breakfast at least three times per week and are between the ages of 25-65 years old to measure attitudes and perceptions about consuming Kellogg cereals using a 7-point agreement scale Conduct a series of depth interviews among consumers who eat breakfast at least three times per week and those who do not eat breakfast at least three times per week and compare the findings Next, you need to recommend the appropriate research design to meet the objective above. (Hint: Creating a research proposal/plan is a build-upon process.
Once you have solid objective that meets all 4 criteria, the rest of the proposal/plan (design, methods, primary data method) should align with the objective. ) Which research design would you recommend? Causal Pluralistic With the research objective clearly defined and the appropriate research design recommendation, you are now ready to suggest the appropriate research methods. Which research methods would you suggest in this case? Focus groups Depth interviews Observations Surveys Based on the research method above, which data collection mode should you use? Quantitative data collection Qualitative data collection Internal data collection
Mixed mode data collection Assume your recommended research method is a survey. What type of survey would you suggest in this case? Longitudinal Cross-sectional External Both b and c What type of panel would you recommend using for this survey? Continuous panel Discontinuous panel Recurring panel None of the above What are the final pieces of information needed to complete your research proposal? Budget Timeline Summary of key findings CEO of Kellogg, takes pride in being part of the Kellogg company because of With such a large market share, one would think that Kellogg is untouchable. However, Kellogg faced a slump in the market.