Aiden Swindells

Unit 3- Assignment 2- Market Research

How Kellogg’s use Market Research
Kellogg’s uses market research to decide on many of their new products. An example of a product
heavily influenced by their market research can be their ‘Crunchy Nut Bites’.

My Definition
Qualitative Market Research- qualitative research is primary research that is carried out first hand by
the company itself. This is normally done using interviews and getting customers and even people
who dislike the company to review a new product. This is normally conducted within small groups
and only travel expenses are covered. It is also the most reliable form of research as it is conducted
first hand.

Quantitative Market Research- quantitative research is secondary research that is carried out by
others making it second hand research and due to this, it may not be the most reliable source of
research. This can be from various different sources. One of these examples can be some
supermarket chains as they can record what people purchase (if they are club card members or their
equivalent), give them discounts, and even recommendations for other more organic or
environmentally friendly products. This is when Kellogg’s tries to persuade shoppers to buy Kellogg’s
as opposed to another brand of cereal such as Weetabix. They then can get a general overview on
what cereals are being purchased and by who and can then even offer them to review their new
cereal and voice their opinion.

Primary Research- primary Research is research that is conducted first hand by yourself. Kellogg’s
can do this by inviting customers to their headquarters and ask them to try their new and improved
products and even though there are costs, it is more reliable for them to conduct it first-hand due to
the reliability.

Secondary Research- secondary research is research that is taken from other sources and due to
this, they aren’t the most reliable type of research. An example of this can be how companies like
Kellogg’s can find out how their sales are doing by some companies like Tesco and they can even get
them to give vouchers to club card customers and encouraging them to buy Kellogg’s over another
brand.

Internet Definitions

Qualitative Research- is primarily exploratory research. It is used to gain an understanding of

underlying reasons, opinions, and motivations. It provides insights into the problem or helps to
develop ideas or hypotheses for potential quantitative research.

https://www.snapsurveys.com/blog/qualitative-vs-quantitative-research/

Quantitative Research-'Quantitative research is a formal, objective, systematic process in which

numerical data are used to obtain information about the world. This research method is used: to
describe variables; to examine relationships among variables; to determine cause-and-effect
interactions between variables.'

http://www.health.herts.ac.uk/immunology/Web%20programme%20-
%20Researchhealthprofessionals/definition_of_quantitative_resea.htm
Aiden Swindells

Advantages of market research

1) Targeted Issues are addressed. The organisation asking for the research has the complete control
on the process and the research is streamlines as far as its objectives and scope is concerned.
Researching company can be asked to concentrate their efforts to find data regarding specific
market rather than concentration on mass market.

2) Data interpretation is better. The collected data can be examined and interpreted by the
marketers depending on their needs rather than relying on the interpretation made by collectors of
secondary data.

3) How recent the Data is conducted . Usually secondary data is not so recent and it may not be
specific to the place or situation marketer is targeting. The researcher can use the irrelevant seeming
information for knowing trends or may be able to find some relation with the current scenario. Thus
primary data becomes a more accurate tool since we can use data which is useful for us.

4) Proprietary Issues. Collector of primary data is the owner of that information and he need not
share it with other companies and competitors. This gives an edge over competitors replying on
secondary data.

Disadvantages of Primary Market Research

1) High Cost. Collecting data using primary research is a costly proposition as marketer has to be
involved throughout and has to design everything.

2) Time Consuming. Because of exhaustive nature of the exercise, the time required to do research
accurately is very long as compared to secondary data, which can be collected in much lesser time
duration.

3) Inaccurate Feed-backs. In case the research involves taking feedbacks from the targeted audience,
there are high chances that feedback given is not correct. Feedbacks by their basic nature are usually
biased or given just for the sake of it.

4) More number of resources are required. Leaving aside cost and time, other resources like human
resources and materials too are needed in larger quantity to do surveys and data collection.
Aiden Swindells

Types of primary research

Observations
From observations the people conducting the observations can see how people use a certain
product. An example can be getting children to test out a toy to see what they do with it. This isn’t
the most reliable as they may be shy and not use it as they naturally should.

Interviews
They can interview the general public to get an opinion on one or two certain issues as they
shouldn’t waste too much time with the public as they will be hesitant to take part in the interview.

Surveys
They can carry out surveys in town centres and outside stores to get the opinion of the general
public.

Analysis
Analysis involves collecting data and organising it into different trends and opinions and settling for
the majority of decisions.

Types of secondary research

Information available on the internet
This information is easily obtained and is free which is a positive also. However, some of this
information can be outdated however.

Books
Another can be books due to the fact they have the valid information necessary for practical use.
However, there will be a lack

Newspaper articles
The newspaper articles can be very helpful a lot of the time as some of the information is very recent
and relevant sometimes. This doesn’t pop up very frequently though (the information).

Market Research Uses

There are many uses of market research with one of these uses being brand awareness to see if their
marketing is working well and up to par with their expectations and worth the money, they are
putting in. using this information they can then make critical decisions on what is next. Thus
meaning are they going to boost advertising or are they going to lower the marketing budget and
maybe even discontinue a product. An example of Kellogg’s discontinuing a product can be their
banana frosted flakes, which were discontinued due to the very little awareness of the product.

Another way market research is used can be to see the customer satisfaction of a new and/or
improved product and will take both criticism and praise and make decisions from the best source of
criticism being the consumer. One way Kellogg’s have done this can be their crunchy nut bites, which
Aiden Swindells

were praised well by the consumers and has, took the cereal market by storm making a huge £81.6
million, which was even down by £7.6 million.

another thing they want to test out is to see if their pricing is up to scratch compared to other
cereals there about the same price range and see if they are up to scratch with their competitors.
They can check this using quantitative research from companies such as Tesco and Asda as they
monitor the sales and can offer vouchers and discounts accordingly using the club card service (and
others equivalent).

Another use of market research can be to see the elasticity or pricing and for example how much
someone on average would spend on cereal and what would be their limit of spending. Kellogg’s
uses this to compare their pricing with competitors and stay up to date to see if their has been any
inflation of some kind. They would use this information to then release a product and set up it’s
pricing.

One more use of market research can be to see if their advertising is being promoted frequently on
television and billboards by asking the public if they have seen the advertisements and if so what do
they think and has that tempted them into buying it.

Market Research Constraints

Even though there are little constraints, sometimes these constraints can prove to be challenging to
some companies. One of these constraints can be how sometimes it can be costly to carry out their
qualitative research, as they have to pay for travel costs and other things like that and for some
companies they can do this freely due to having these high budgets. However even though they are
costly they are overall more reliable than quantitative data. However, it is definitely more cost
effective to use quantitative data, as it is normally free or very cheap.

Another constraint of market research links directly into the previous one being the reliability of the
data. The best data is qualitative data as it is carried out first hand meaning there should be no
anomalies within the data. However, smaller companies may have to use quantitative as it is cheap
and they cannot normally afford to carry out their research first hand.

Another constraint can be their time constraints due to the fact a lot of companies need to act first
before another company can be doing the exact same of work that you’re doing and put a much
bigger dint in the market. A lot of the time the research is done to fit what the company want to do
in a fiscal year and after the market research is conducted they will plan what's going to happen
being when or if it will be released. In addition, how long it is going to take it to be advertised after it
has been confirmed to have released.

Next, another constraint can be the fact that market research can be very time consuming and a is
why when approached in public a lot refuse to partake in these surveys. Some of the public may also
answer the questions wrong purposefully so they can continue with their day. This is why it is
important to keep the questions short so the people partaking will give more genuine and honest
answers and will be a much better contribution to the market research if it was to fill out a page long
survey with the relatively high chance of the answers being dishonest.

There are also some legal constraints such as the Data Protection Act (1998) which a good example
of a law that has a number of implications for market researchers collecting and holding personal
data. For instance, researchers must ensure that the data they obtain is kept secure, is only used for
Aiden Swindells

lawful purposes so basically used for nothing other than for market research purposes so not giving
away personal information. They also make sure it is kept for as long as it is necessary. It must be
made clear that the data is being collected for research purposes and the consent of participants
must be obtained.

Also, there are a number of guidelines, laid down by such organisations as the Market Research
Society, that, although not legally binding, encourage organisations to behave ethically as it can give
researchers as a whole a bad name and due to this councils may be more redundant to let them park
up and obtain their market research.

One more constraint can be the ethical problems such as using animals or animal fur which many
people are against and while it is not illegal it is ethically wrong and many may flock to protest
making them pressure groups which will protest for what is morally correct.

https://www.tutor2u.net/business/reference/marketing-research-limitations-and-constraints

https://www.slideshare.net/mobile/DitaKovarikova/ethical-issues-in-marketing-research

P4

75% want more children’s sandwiches

Specific- use 10 small loaves of bread to cater for children or even adults who would prefer a smaller
portion. They should also only make sandwiches with basic fillings so they don’t branch out too
quickly.

Measurable-they should measure how many children’s sandwiches they sell over a period of time
before they make a decision.

Achievable- if they sell around 30 in a month they can then continue to decide if it will be a
permanent option in their bread selection.

Realistic- they can make around 30 sandwiches, as they are brand new and there will not be too
many flocking to try, as children may prefer the standard size of sandwich.

Timescale-they can make a judgement to bring this in after a month’s time if the sales are up to their
standards and necessary to add.

82% want the shop to be open longer

Specific- employ more staff or get current workers to partake in more shifts.

Measurable-see how many customers come in after the extended hours.

Achievable- if there is around 10 customers coming after the standard hours then they should
extend the shop times and employ more staff and/or get current staff to work longer.

Realistic- they can stay open till half 10 to cater for some who may finish work late.

Timescale- they can make this judgement after a month of staying open for these extended hours.
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65% said the staff were unfriendly

Specific- put the stuff on communication courses

Measurable- give customers surveys to see how they feel about how the staff act towards
themselves.

Achievable- if there is an improvement in customer morale then there is no need to fire staff
members.

Realistic-if there is no improvement after the communication courses then a select few should be
fired for staff with better attitude.

Timescale-see what happens after two months before a decision is made.

50% said that the contents of the sandwiches could be fresher

Specific- get more locally produced fresh goods from local bakeries as it will improve the general
local economy.

Measurable- after they invest in new bread get the staff to ask them if they prefer the new locally
produced bread and see from there if there is any compliments and go from the compliments to
make a decision.

Achievable- if there is a notable difference in customer morale then adopt the new bread and maybe
even advertise to attract new or old customers

Realistic-they can get less fresh bread with better quality than their standard bread they use.

Timescale-they can judge this over a weeks’ time as that is enough time to gather customers’
opinions.

80% said they would prefer wraps

Specific-add wraps to their choices of items of bread and other items.

Measurable- see if it is a popular option over a span of two months. If they sell around 50 then it is a
popular option

Achievable- they can put a set amount of their income for produce into the wraps if they are doing
well

Realistic-Make more wraps with basic fillings such as chicken and ham as it may be too much to
branch out into lots of different flavours so they should keep their options basic as it may be too
much to give the customers an overload of options

Timescale-hey can see how the wraps sell over a course of two months giving both a ball cancer time
to try it and also promote it to customers.
Aiden Swindells

P5

There are certain groups of people that are chosen to test out some of Kellogg’s new products. This
is because a lot of the time when they release a new product they want it to cater to those who
maybe have lost an interest in Kellogg’s and maybe don’t like their products as there could be a
chance it doesn’t cater to them anymore. This could be because of their religion or ethnic beliefs
such as then fact they may be vegan or vegetarian. Kellogg’s want to cater more to getting a wider
array of different customers both from the past and the future. They may have released a vegan
friendly product and want them to try it as that is a factor that will stick out well as a group of
vegans (for example) can be a good general overview on the product as it will be tested by vegans
and what better market research can be vegans themselves. They also may add the fact that his was
tested by vegans maybe with a slogan such as” for vegans tested by vegans”. This is very marketable
as kinder have also down the same by getting their kinder chocolate bar tested by mothers of
children to judge if it will be fine for kids to have.

This is how market segmentation is introduced as it segments the market into different types of
people wether this be ethnicity, religion or even weight to reduce sugar in many things such as
Frosties which has had sugar reduced to help combat issues involving weight as this has been a
problem for many cereals due to the ‘excessive’ sugar inside of them.

M2

COST EFFECTIVENESS

Kellogg’s use market research the very high majority of the time. This is because they believe the
consumer is always correct and always pay the cost for that valuable opinion.they believe the most
reliable opinion is the characteristics of customers. This is cost effective as the validity is the most
reliable it can be as it is conducted both recently and first hand. The cost will not be a huge problem
for Kellogg’s and them using market research primarily is why they contributed massively to the
cereal market making an impressive £81.6 million with their many products such as cornflakes and
crunchy nut to name the biggest two.

One of the best cost effective types of research can be just a survey with non biased
questions as it seems like you are almost forcing them to tick yes. An example of a question
could be “you like Kellogg’s right”?. Due to them wanting relevant and reliable information
this must be avoided.
Aiden Swindells

Validity of the data

Validity is used to determine whether research measures what it intended to measure and to
approximate the truthfulness of the results. Researchers often use their own definition when it comes to
what is considered valid. In quantitative research testing for validity and reliability is a given. Valid data
is vital to do market research as it is possible with invalid data that you may get the research
completely wrong. This is why it is important to carry out multiple types of research such as surveys
to get a balanced overview on what the public think or want.

It is important however to make sure the surveys and interviews are both short and in the most
natural environment there is to ensure the results are as reliable as possible.to ensure validity is
present it is better to make the environment as natural as possible as some may act anxious or shy
and maybe even try to copy others opinions in an interview of some kind.

https://www.linkedin.com/pulse/importance-validity-reliability-marketing-research-havish-
madhvapaty

D2
Kelloggs uses their market research extremely well but there could be more things done to improve
that validity. One of these things can be to stay away from street surveys as much as anything else.
This is because although it’s a cheap option there are many people that do not want to be hassled
and if they do agree to partake in the survey it may be unreliable as they want to finish quickly and
don’t want to write in detail. If they are to still use the street surveys they should at least Male them
very basic questions and/or just tick yes or no options as people will feel more inclined to take part
as it is only a minimal task.

Another way they could improve the validity can be by possibly choosing another third party
organisation to go through and collect the research needed. Kellogg’s uses Mintel which specialises
in market research and is responsible for the findings of Kellogg’s research. The one downside can be
the fact that mintel charges them money for their services and it could be better to find a cheaper
alternative if it came to the fact the people higher up believe they can find better for a cheaper price
(or any improvement really). To improve upon this they could hire someone from the company
instead of hiring someone externally as there will be less confusions. Another thing which is not as
realistic but definitely possible can be the fact that as workers are writing down many of the points
concluded by the Mintel worker it is not primary research and thus has a small chance of brig
unreliable.

One more way Kellogg’s can be justified to make better decisions on their market research can be to
make sure they use screening as it makes the sample more representative and see what target
groups don’t affiliate themselves with Kellogg’s and even possibly find out why this is. This can range
from religion to age as some products may not be suitable for older people such as corn flakes as
they are crunchy and may strain an older persons gums as they have weaker or no teeth at all. If
they use this more they can better devise a product to release that caters to their non target groups
religion or situation.
Aiden Swindells

The goals of your market research influence your objectivity. Rather than proving something or
showing that your approach is correct, your surveys and research activities should be aimed at
finding out information and gathering data in a neutral but specific fashion. For example, a survey to
show customers will pay more for higher quality might ask, "Will you pay more for better quality?"
The survey may get a high percentage of positive replies but is not valid because it is neither neutral
nor specific. As a result, it doesn't deliver the information you need to develop an effective strategy.
It is more neutral and specific to ask, "How much more will you pay for leather instead of plastic?"