14 Aug The Situation Kelloggs: From Slumping to Thumping1 Kelloggs is the worlds leadin

The Situation
Kelloggs: From Slumping to Thumping1
Kelloggs is the worlds 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 Kelloggs, takes pride in being part of
the Kelloggs 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 and communities.
With such a large market share, one would think that Kelloggs
is untouchable. However, Kelloggs faced a slump in the market. Its cereal sales
were declining, and it had to face the challenge of getting out of its slump.
Kelloggs, therefore, turned to marketing research to identify the problem and
develop several potential solutions to increase cereal sales.
Kelloggs 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 preliminary 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
1) Name the symptom(s) that lead David Mackey, CEO of Kelloggs
to realize there was a problem. Select all that apply.
a) Growing trend in generic brands for cereal
b) Some of Kelloggs breakfast foods required too much
preparation
c) Cereal sales were declining
d) Growing demand for bagels and muffins
2. Which of the following best describes the difference between
symptoms and a problem. Select all that apply.
a)Symptoms are signals that alert the business there may be a
problem.
b)Problems are signals that alert the business there may be a
problem.
c) Problems are the factors that cause the symptoms.
d) Symptoms are factors that cause problems
3. What is/are the underlying problem/s in this case? Select all
that apply.
a) Kelloggs is targeting the wrong segment: kids
b) Competition for bagels and muffins is stiff
d) Kelloggs prices are too high
e) Kelloggs needs to introduce new products
4. What types of research design and information sources did
Kelloggs use to identify the problem(s)?
a) Exploratory
b) Descriptive
c) Casual
d) Both a and b
5. Which research method(s) were used to collect the data?
Select all that apply.
a) Experience Surveys
b) Case Analysis
c) Secondary Data Analysis
d) Experiments
6) Which of the following examples from the case (if any) are
forms of exploratory research?
a) Researchers conducted expert interviews
b) Researchers conducted secondary data analysis
c) Both a and b
d) Neither a nor b are examples of exploratory research
7. What type of information sources/data did Kelloggs use to
collect this information? Select all that apply.
a) Primary data
b) Secondary data
c) Pluralistic data
d) Both a and b
8. Suppose the researchers did conduct secondary data analysis.
Which of the following could be examples of information sources used in this
case?
a) Breakfast food industry journals, reports, and white papers
b) Tracking data of all breakfast foods sold by Kelloggs in the
past three years
c) Purchased syndicated data of all breakfast foods sold by top
breakfast food competitors in the past three years
d) All of the above are possible secondary information sources
9. If researchers did use tracking data of all breakfast foods
sold by Kelloggs in the past three years, which component of the Marketing
Information System (MIS) would that information represent?
a) Internal Records
b)Marketing Intelligence
c) Marketing Research
d) Marketing Decision Support System
Lets 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; Kelloggs may be targeting the wrong segment. As the market
researcher assigned to this case, you are asked to prepare the research
proposal for Mackeys approval.
First, you need to craft the research objectives.
10. Which of the following is a sound and complete research
objective to help Mackey determine whether or not Kelloggs is targeting the
wrong segment?
a) Conduct a study among consumers who eat breakfast at least
three times per week to measure attitudes and perceptions about consuming
Kelloggs cereals
b) Conduct in-store observations among consumers who eat
breakfast at least three times per week between the ages of 25-65 years old
c) 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 Kelloggs cereals using a
7-point agreement scale
d) 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 a solid objective that meets all 4 criteria, the rest of
the proposal/plan (design, methods, primary data method) should align with the
objective.)
11. Which research design would you recommend?
a) Exploratory
b) Descriptive
c) Causal
d) Pluralistic
With the research objective clearly defined and the appropriate
research design recommendation, you are now ready to suggest the appropriate
research methods.
12. Which research methods would you suggest in this case?
a) Focus groups
b) Depth interviews
c) Observations
d) Surveys
13. Based on the research method above, which data collection
mode should you use?
a) Quantitative data collection
b) Qualitative data collection
c) Internal data collection
d) Mixed mode data collection
Assume your recommended research method is a survey.
14. What type of survey would you suggest in this case?
a) Longitudinal
b) Cross-sectional
c) External
d) Both b and c
15. What type of panel would you recommend using for this
survey?
a) Continuous panel
b) Discontinuous panel
c) Recurring panel
d) None of the above
16. What are the final pieces of information needed to complete
your research proposal?
a) Budget
b) Timeline
c) Summary of key findings
d) Both a and bThe SituationKelloggs: From Slumping to Thumping1Kelloggs is the worlds 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 Kelloggs, takes pride in being part of
the Kelloggs 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 and communities.With such a large market share, one would think that Kelloggs
is untouchable. However, Kelloggs faced a slump in the market. Its cereal sales
were declining, and it had to face the challenge of getting out of its slump.
Kelloggs, therefore, turned to marketing research to identify the problem and
develop several potential solutions to increase cereal sales.Kelloggs 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 preliminary 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 Questions1) Name the symptom(s) that lead David Mackey, CEO of Kelloggs
to realize there was a problem. Select all that apply.a) Growing trend in generic brands for cerealb) Some of Kelloggs breakfast foods required too much
preparationc) Cereal sales were decliningd) Growing demand for bagels and muffins2. Which of the following best describes the difference between
symptoms and a problem. Select all that apply.a)Symptoms are signals that alert the business there may be a
problem.b)Problems are signals that alert the business there may be a
problem.c) Problems are the factors that cause the symptoms.d) Symptoms are factors that cause problems3. What is/are the underlying problem/s in this case? Select all
that apply.a) Kelloggs is targeting the wrong segment: kidsb) Competition for bagels and muffins is stiffd) Kelloggs prices are too highe) Kelloggs needs to introduce new products4. What types of research design and information sources did
Kelloggs use to identify the problem(s)?a) Exploratoryb) Descriptivec) Casuald) Both a and b5. Which research method(s) were used to collect the data?
Select all that apply.a) Experience Surveysb) Case Analysisc) Secondary Data Analysisd) Experiments6) Which of the following examples from the case (if any) are
forms of exploratory research?a) Researchers conducted expert interviewsb) Researchers conducted secondary data analysisc) Both a and bd) Neither a nor b are examples of exploratory research7. What type of information sources/data did Kelloggs use to
collect this information? Select all that apply.a) Primary datab) Secondary datac) Pluralistic datad) Both a and b8. Suppose the researchers did conduct secondary data analysis.
Which of the following could be examples of information sources used in this
case?a) Breakfast food industry journals, reports, and white papersb) Tracking data of all breakfast foods sold by Kelloggs in the
past three yearsc) Purchased syndicated data of all breakfast foods sold by top
breakfast food competitors in the past three yearsd) All of the above are possible secondary information sources9. If researchers did use tracking data of all breakfast foods
sold by Kelloggs in the past three years, which component of the Marketing
Information System (MIS) would that information represent?a) Internal Recordsb)Marketing Intelligencec) Marketing Researchd) Marketing Decision Support SystemLets 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; Kelloggs may be targeting the wrong segment. As the market
researcher assigned to this case, you are asked to prepare the research
proposal for Mackeys approval.First, you need to craft the research objectives.10. Which of the following is a sound and complete research
objective to help Mackey determine whether or not Kelloggs is targeting the
wrong segment?a) Conduct a study among consumers who eat breakfast at least
three times per week to measure attitudes and perceptions about consuming
Kelloggs cerealsb) Conduct in-store observations among consumers who eat
breakfast at least three times per week between the ages of 25-65 years oldc) 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 Kelloggs cereals using a
7-point agreement scaled) 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 findingsNext, 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 a solid objective that meets all 4 criteria, the rest of
the proposal/plan (design, methods, primary data method) should align with the
objective.)11. Which research design would you recommend?a) Exploratoryb) Descriptivec) Causald) PluralisticWith the research objective clearly defined and the appropriate
research design recommendation, you are now ready to suggest the appropriate
research methods.12. Which research methods would you suggest in this case?a) Focus groupsb) Depth interviewsc) Observationsd) Surveys13. Based on the research method above, which data collection
mode should you use?a) Quantitative data collectionb) Qualitative data collectionc) Internal data collectiond) Mixed mode data collectionAssume your recommended research method is a survey.14. What type of survey would you suggest in this case?a) Longitudinalb) Cross-sectionalc) Externald) Both b and c15. What type of panel would you recommend using for this
survey?a) Continuous panelb) Discontinuous panelc) Recurring paneld) None of the above16. What are the final pieces of information needed to complete
your research proposal?a) Budgetb) Timelinec) Summary of key findingsd) Both a and b

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