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New products from market research

Curriculum Topics
• Market research
• Types of research
• Quantitative and qualitative
• Product development

Kellogg’s with a sales value of £68 million*. In 2003 the Crunchy

Introduction

Nut brand created a brand extension. This involved using the The Kellogg Company is the world’s leading producer of cereals.

Crunchy Nut name to launch a new product called Crunchy Nut

Its products are manufactured in 18 countries and sold in more

Clusters. This variant has two varieties, Milk Chocolate Curls and

than 180 countries. For more than 100 years, Kellogg’s has been a

Honey and Nut. Both of them have enabled the brand to reach a

leader in health and nutrition through providing consumers with a

wider group of consumers. This brand extension is now worth

wide variety of food products. These are designed to be part of a

£21 million in annual value sales.*

balanced diet and meet the different tastes of consumers. Kellogg’s focuses on sustainable growth. This involves constantly looking

This case study focuses on the importance of market research

for ways to meet consumer needs by growing the cereal business

during the development and launch of Crunchy Nut Bites, a more

and expanding its product portfolio.

recent extension to the Crunchy Nut brand. The objective of this innovation was to provide a new flavour and texture for consumers,

Market research is a specific area of marketing that informs

helping Kellogg’s extend its share of the breakfast cereals market.

businesses like Kellogg’s about the things consumers need, how *IRI sales data

best to design products to answer those needs and how to
advertise those products to consumers. Market research goes
beyond finding out what consumers are thinking today. It can identify what consumers might want in the future. In this way market research helps a business to make more informed choices. This reduces the risks for any new product development (NPD). It also increases the likelihood that products will be well received by consumers when they are launched.

Kellogg’s launched Crunchy Nut Cornflakes in the UK in 1980.

Sustainable growth: Developing the
business to meet the needs of
consumers today, while respecting the
needs of future generations.

New product development (NPD):
Term used to describe the processes
involved in creating a new product.

Sales value: The value of sales made
over a fixed period of time.
Brand extension: The use of a well
known brand to launch a new and
complementary product.

GLOSSARY

Since then, it has become one of the most important brands for

Variant: Alternative to the core product
introduced by the maker of the brand.

EDITION

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Kellogg’s | New products from market research

53

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Why carry out market research?

Of the hundreds of products launched every year in consumer
goods markets, very few reach significant market share. In order

Many organisations are described as product orientated. This

to reduce risks, market research is, therefore, essential.

means they develop a product and then look for a market to sell to. Kellogg’s is market orientated. This means that the whole

A product extension is a less risky way of increasing market share

organisation focuses on the needs of its consumers. It is therefore

by providing consumer products with new features under an

essential that it identifies and anticipates changing consumer

existing brand. New product extensions give more choice to

needs before the development of new products.

consumers and help them to feel more favourably about the
existing brands.

Product orientated
Product orientated

Market orientated
Mar et orientated

See
Seeking a market
f th product
for the
dt

Building bu iness
Building a business
around the needs of
around...
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