Macroeconomics

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Kellogg’s Frosted Flakes Marketing Research Proposal

Jose Andres Bermudez Martinez

Steve Ryan

MKT405

07/31/2022

Introduction

Kellogg’s is a worldwide manufacturer of food items in the US. With global sales of more than $14 billion, it is the world’s biggest cereal company. It is the second-largest maker of crackers, cookies, and savory snacks. Corn, oats, wheat, rice, and other grain products make frosted flakes, also known as cereal flakes. Since 1951, Frosted Flakes has become a staple of American breakfast menus (Zigu, 2011). In this paper, we propose a market research plan to resolve the challenge of high demand and competition that the Company is currently facing. In the subsequent section, I will review the problem our research intends to resolve and propose a market research strategy to determine and deal with the challenge.

Problem Statement

In response to increasing concerns over wellness and a healthy lifestyle, consumers worldwide are incorporating whole grain food items into their everyday routine and striving to increase their consumption of nutritious foods. This is boosting the market’s need for Frosted flakes. As a result, there is a rise in the market’s need for nutritious cereals and hygienic foods. According to research, throughout the projected 2022-2032, demand for cereal flakes is anticipated to rise at a CAGR of 6 to 7 percent (Cereal Flakes Market, n.d.). It is predicted that increasing emphasis on developing unique, flavor-forward, value-added cereal flakes would help the worldwide industry grow. Changes in consumption patterns, lifestyle changes, and population movement to urban and metro areas all impact the demand analytics for items that are ready to eat, whether they be cereals, baked goods, pastries, or any other kind of food. In the subsequent section, let’s review a research design we can utilize to conduct market research before developing a marketing strategy to resolve the problem. By developing a marketing research plan, we can better understand the customer needs, identify regions where demand is high, and who our potential customers are. This is critical to retaining our brand on top and keeping up with the stiff competition in the industry.

Target Market

The first step of a marketing research project is to determine the consumer population. As in the case of Kellogg’s brand, there are two key target markets: the influencers, who are the kids, and the buyers, who are the parents. Kellogg’s tends to have a certain target market for each of its goods. For instance, Kellogg’s Coco Pops is marketed to kids, Kellogg’s Special K is marketed to girls or women who are health aware, and Kellogg’s Corn Flakes is marketed to families.

Research Design

Objectives

Marketing research aims to identify challenges and opportunities to achieve marketing goals. The Kellogg marketing team may gather information and analyze pertinent facts using market research before focusing on increasing Frosted Flakes production to meet consumer demand. Below are some of the specific objectives that this market research intends to achieve:

1. One, the research intends to unveil new markets for Frosted Flakes across the globe. Increased advertisements and market surveys can help achieve this goal.

2. Help the Company better forecast sales volumes – Kellogg’s market research aims at identifying consumer patterns. It simplifies estimating the likely future sales volume that may be attained by developing new markets or introducing additional product lines.

3. Identify strategies to lower the marketing costs of the Company. Through thorough market research, we can now identify new cost-effective marketing techniques that demand the product is high. By doing so, the Company’s profitability and resources for scaling production to meet market demands will be more available.

Scope

The proposed range of Kellogg’s marketing research ranges from determining consumer needs and demands to measuring customer satisfaction. It covers products, consumers, pricing, sales, distribution, advertising, and forecasting of sales-related research.

Research methods

This paper proposes that the Company conducts both primary and secondary market research. Let’s review some of the most effective research methods we could employ to achieve the intended goals of Kellogg’s marketing objectives.

Survey

First, we identify target consumers of Kellogg’s Frosted Flakes and then use questionnaires to obtain more reliable results. Some of the proposed survey strategies for data collection include

· One-on-one interviews can be conducted as in-person surveys in busy places like malls. These let the study team distribute products, packaging, or advertising samples to participants and get quick responses. Although they are expensive, in-person surveys can result in a huge respondent rate of over 90 percent.

· Another efficient method for gathering information for market research from a larger audience is through mail surveys. Although they are far less expensive than telephone and in-person surveys, they only provide response rates of 5 to 15 percent. Even with their poor return, mail surveys are still a reasonable option.

· The questions included in the survey questionnaires will be open and close-ended. These questions will primarily focus on collecting data regarding consumer patterns, how they identified the product and their choices and preferences with the brand.

Focus Groups

Focus groups involve getting a group of people who fit the target demographic in one room, physically or virtually.  A moderator will guide the discussion to get participants to discuss issues regarding the Frosted Flakes, such as their buying patterns, preferences, price valuation, and how the product can be improved.

Analysis of Sales Data

Sales data is an element of the market research puzzle that can assist disclose a comprehensive view. In essence, it denotes the outcomes. When combined with other market research data, sales data aid in researchers’ understanding of cause and effect. It is also crucial to understand your clients’ demographics, purchasing patterns, and how they are evolving. This will only be available to customers, so bear that in mind. However, it would be a mistake to undervalue the importance of sales data.

Timeline

The proposed market research should last for 8-12 weeks, depending on the success rate of our research. The market research will consist of 15-30 interviews, 2-4 focus groups, and several survey strategies. However, if unexpected hurdles occur, we can extend the project to a maximum of four weeks. The greatest challenge will be recruiting participants for the primary research. Sales analysis can use data collected in the last two years and from the public.

References

Cereal Flakes Market. (n.d.). Www.futuremarketinsights.com. Retrieved July 30, 2022, from https://www.futuremarketinsights.com/reports/cereal-flakes-market

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Marketing Research: Objectives, Types, Steps, Methods. (2020, November 28). Penpoin.

Marketing Research: Objectives, Types, Steps, Methods

Zigu. (2011). Kellogg’s Marketing Mix (4Ps) Strategy | MBA Skool-Study.Learn.Share. MBA Skool-Study.Learn.Share. https://www.mbaskool.com/marketing-mix/products/16876-kelloggs.html

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