Kellogg's conducted extensive market research to develop a new product extension for their popular Crunchy Nut cereal brand. They began with secondary research to generate new product ideas, then used focus groups and surveys to evaluate concepts. The best performing idea was for Crunchy Nut Bites. Further qualitative and quantitative research helped refine the product design and packaging. In-home product trials were used to test consumer response and forecast first-year sales. The new Crunchy Nut Bites product launched successfully in 2008, becoming one of the best performing new breakfast cereals based on its sales performance in the first full year. The detailed market research process helped ensure the product extension was well-received by consumers.

1. New products from market research
A Kellogg's case study
Presented by : Lakhani Sameer G. Submited By : Dr. Ashish Mehara
Subject : Marketing Management
College: International agri-business management institute(Anand)
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2.  Kellogg is one of the world’s leading Producers of
cereals. It has manufacturing facilities in more than 18
countries and sells its products in over 180 countries.
 Kellogg’s offer a range of healthy and nutritious food
Items. It aims to achieve sustainable growth by focusing
on meeting the customer requirements.
 This can be done by including more products in the
portfolio of the company.
Mission Statement:
"Quality Products For A Healthier World"
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3. India Entry- 1990’s
• India an opportunity land.
• Newly opened economy for the West.
• Attractive huge population base, over 950 million
inhabitants.
• New, unexplored, untapped market.
• Invested 65 million INR initially.
• Launched iconic brand Corn Flakes as the first offering
in 1994.
• Had a 53% market share on the 150 million INR Indian
market.
• Cereal breakfast segment was growing at 4-5%
annually.
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4. Product of
Kellogg's in
India
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5. THE CASE
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7.  Since The Launch Of ‘Crunchy Nut Cornflakes’ In 1980 The ‘Crunchy Nut’ Has Become
A Very Important Brand For Kellogg’s With A Sales Value Of £68 Million In UK.
 However, in lieu of Brand Extension, two variants were launched under the ‘Crunchy Nut’
brand, namely, Milk Chocolate Curls & Honey and Nut
 Now, On The Verge Of Launching Yet Another Extension By The Name Crunchy Nut
Bites, They Intend To Extend Kellogg’s Share Of The Breakfast Cereals Market.
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8. WHAT DO THEY NEED
TO ACCOMPLISH THAT??
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9. MARKET RESEARCH
Informs businesses about the things consumers need.
 Finds out what consumers are thinking today.
 Can identify what consumers might want in the future.
 Reduces the risks for any NEW PRODUCT DEVELOPMENT (NPD)
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11. In a market where companies are
often operating with a
Product Oriented approach
KELLOGG’s adopts a Market
Oriented approach.
It is therefore essential that it
identifies and anticipates changing
consumer needs before the
development of new products.
Market research adds value to
businesses like Kellogg’s by
identifying consumers’ needs.
 It helps Kellogg’s to plan ahead
 It focuses the business on the
needs of its consumers.
An organization that does this can
improve its competitive advantage.
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12. PRIMARY RESEARCH-
 Includes the data collected by interview with customer.
 It prompt consumer reaction to, a new product idea and help research
understand what they think of it, how it makes them feel, why they find it
interesting or not.
 Research use questionnaires administered a large number of respondents.
SECONDARY RESERCH-
 Sources of secondary data includes books, journals, and the internet and
government statistics.
METHODOLOGY
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13. METHODOLOGY
Primary Research Was Further Diversified Into
 QUALITATIVE RESEARCH
- Establishes a conversation with consumers
- Prompts Consumer reaction, about the product,
what they think of it, how it makes them feel
 QUANTITATIVE RESEARCH
- Obtained through focus groups
- A moderator captures feedback from a group of six or seven consumers to the ideas shown
to them.
- May use questionnaires administered to large numbers of respondents.
- Allows statistical analysis, such as the calculation of a mean score or percentages. 13

14. THE EXECUTION
OF PLAN
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15. STAGE 1 : DISCOVERY
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16.  Aimed at identifying a set of new food ideas suitable for
developing new product.
 Secondary research from [market research publications]Mintel and
Data monitor was used
 Focus groups were used to provide new food ideas in the form of a
number of different (real) food prototypes.
The results allowed Kellogg’s to discard some ideas.
 At the end of this stage, Kellogg’s had a number of new food ideas
that all seemed to appeal to consumers.
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17. STAGE 2
SELECTING THE BEST IDEA
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18.  This stage aimed to select the best idea arising
from the stage 1 research.
 Kellogg’s put the ideas from the focus group
on boards and boards were then shown to a
large group of representative consumers in a
quantitative approach
 Ideas were rated on a number of scales
 It indicated that a new Crunchy Nut Bites idea
was perceived as the most appealing amongst
all the ideas tested.
 It established what proportion of people liked
the new product idea enough to buy it.
 It also identified those product ideas that had
the best or least sales potential.
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19. STAGE 3
CRAFTING IDEA INTO PRODUCT
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20.  Emphasis On Qualitative Research
To Understand The Eating
Experience Of The Consumer.
 Quantitative Survey Of The Four
Finalized Recipes Enabling Kellog’s
To Select Best One.
 Pack Designs Developed And Tested
On Consumers To Select The Final
Packaging Design For Crunchy Nut
Bites.
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21. STAGE 4
FORCASTING SALES
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22. ‘In Home Usage
Test’.
 Consumers are given the product to
try for several days
 At the end of the trial, consumers
complete a report on what they
thought of the food in the form of
a questionnaire
 The data collected also helped to
calculate a sales forecast for the
new product for the first and
second year in market.
 finance department was able to set
budgets, organise the supply chain
and to schedule food production.
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23. CONCLUSION
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24. Kellogg’s launched Crunchy Nut Bites in September 2008. Sales data
shows it was one of the best performing brands to launch in the
breakfast cereal category with a sales value of £6.9 million in its first full
year of sales.*
This illustrates that the detailed market research undertaken during
the planning stages was valuable. It helped to ensure that the product
extension hit the spot with consumers straight away.
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25. References
• (1.) http://www. adage.com
• (2.)http://www.learnmarketing.net
• (3.) http://en.wikipedia.org/wiki/marketing
research
• (4.) http://www. kelloggs.com
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