Qualitative and Quantitative Techniques - Essay Example

?Section Market Research, Qualitative and Quantitative Techniques: Discuss the purpose of market research in a market-oriented company such as Kellogg’s and also explain some of the differences between qualitative and quantitative research and that Kellogg’s requires both these research methods. The market research method is important for a market-oriented company due to various reasons. Market research prevents the company from taking wrong decisions regarding the launch of new products. This type of research is mainly done to determine the consumer’s needs, to reduce chances of failure while launching a new product and to estimate future trends. “Different kinds of market research need to be conducted during different periods in the life cycle of a company and those of a product” (Hewitt, 2011). For a market oriented company like Kellogg’s, market research adds business value and improves the company’s competitive advantage. Before launching a new product, Kellogg’s usually conducts a market research to understand the preference of consumers concerning new products and this helps them to reduce the chances of failure. The major difference between qualitative and quantitative research are that the qualitative one is subjective and the quantitative one is mainly objective. Inductive method is used in qualitative while the deductive method is used in quantitative research. The qualitative research is text-based whereas the quantitative one is number-based. The method used under qualitative research involves focus groups and in-depth interviews while surveys and structured interviews are the methods adopted in quantitative research. Qualitative research focuses on smaller groups, on the other hand, the quantitative one deals with larger groups. The former one spends more time for selecting subjects, while the latter takes more time on data processing. The data collected using qualitative research is unstructured whereas quantitative research collects structured data. “Kellogg’s has flourished through skilful marketing of good products, and by creating and sustaining a highly valuable brand name” (Kellogg’s: Revitalizing a valued character, n.d). Kellogg’s company faces the problem of innovation when compared to other competitors. Further qualitative and quantitative research is necessary to know the consumer preference and to increase the demand for commodities. Competition from other companies can only be reduced by introducing new innovative products, which is possible through market research. The problem of substitute goods is faced by the company, which can be tackled only through perfect knowledge about the market and this further increases the need for market research. To expand market internationally, the knowledge of foreign market is a must and so further qualitative and quantitative research is required. Section 2- Findings from marketing research: Critically analyze the 4 stages that Kellogg’s underwent in order to launch the new Crunchy Nut bites. Provide a critical analysis for each stage. Also provide 2 suggestions to improve Kellogg’s marketing research in this instance. Kellogg’s is concentrating on importance of market research during the launch and development of Crunchy Nut bites. Kellogg’s undertook four different stages of research in order to develop this new product. Stage 1: Discovery: Kellogg’s is a market oriented organization, wherein, market oriented means that the entire organization focuses on the needs of its customers. So, in order to find the needs of the customers, Kellogg’s has done a research to identify a set of new food ideas that would be appropriate for developing the new Crunchy Nut product. The company has also conducted secondary research to find out modern trends in the cereal market and to acknowledge new products, flavors and food from around the world. “Kellogg’s have a world-class food research and development facility, Kellogg’s food scientists, nutritionist and engineers turn wholesome grains and other ingredients into innovative foods” (Science and Research, 2011). Focus Groups- The main motive of using focus groups was to provide qualitative research. Qualitative data rather deals with opinions, feelings and attitudes unlike the quantitative one. This research method establishes a discussion with customers. The advantage of this method is that the users can experience the reaction of customers directly. Using this method would give advantage to the company to know in detail about the customers’ response and suggestions. Therefore, this enables the company to develop products, which would give greater satisfaction to customers. This research helped Kellogg’s to find out how new product suggestions could be developed and still fit in with the Crunchy Nut brand. It helped Kellogg’s to create what consumers were looking for in conditions of possible new flavours and quality. The results confirmed that certain ideas were attractive for customers but they needed refining, as well as some ideas were to be discarded. Suggestions: Maximum avoiding of irrelevant questions while communicating with consumers. The suggestions given by the customers should be implemented appropriately. Stage -2: Selecting the best idea: As the sub-heading suggests, the aim of this stage was to select the best idea arising from the stage 1 research. A quantitative survey was conducted to rate the ideas against a number of scales, the boards were then shown to a large set of representative consumers in this quantitative survey that would help the company to identify which product ideas the consumers liked best. This stage is very important, because this is about selecting the best idea regarding the product and implementing it. Suggestions: Try to implement the best idea chosen by the consumers as well as the company. After selecting the best idea, try to show maximum justice and try to take maximum effort. Stage 3: Crafting the idea into a complete new product: This stage is about creating and shaping the idea into an absolute new product. The Crunchy Nut Bites recipe was refined using various feedbacks from qualitative and quantitative survey. The qualitative research helped food technologists to investigate the taste and quality of the new food plan in extra detail. In order to understand the eating experience of the consumer, four recipes were developed and those samples were then tested with representative groups of consumers in the quantitative survey to find which product the consumers have chosen. According to the choice of the consumers, Kellogg’s was selected the best one. The pack design for the new Crunchy Nut Bites was developed at this stage. Kellogg’s has developed a pack design, which has the same look and would make the customers feel that this product is from the Crunchy nut family. The package would also attract the customers as the pack design was chosen by the representative consumers. Suggestions: Creating and shaping of the idea should be strictly evaluated by the authorities The package of the product should be innovative and colorful. Stage-4: Forecasting sales for the new Crunchy Nut Bites: After completing all these processes, the product goes through the “In Home Usage Test” previous to launch. “In Home usage Test means a type of research where respondents are given a product to use in their homes as they normally would” (Thomas, 2011). The consumers tried the product for a couple of days and finished a report outlining their analysis and observations. This would be calculated as the product’s demand and sales possibility. This data would also help to measure a sales estimate for the product’s initial years in market. After this process, Kellogg’s then sets budgets and plans the supply chain as well as the food production. Section 3- Findings from Marketing Research: From the analysis of this case study as well as the BBC Documentary on Kellogg’s launching, the new Coco Pops Brand critically discuss the following findings through Kellogg’s market research: 5 changes on Kellogg’s customer needs, wants, expectations and trends. The customers wanted to reduce the sugar level of Kellogg’s cereals and the company plans to do so in due time. “At present Coco Pops contain 35% sugar. After the reduction the level will go down to 29.75 %.” (Kellogg's announces cut in sugar in its cereals, 2010). But still, it is almost double the amount of 15% recommended by the Food Standards Agency. 1. Most customers believe Kellogg’s products to provide a healthy breakfast and think these products to be nourishing for their children. 2. More people switched to Kellogg’s with the aim of losing weight and being healthy. 3. Trial of Kellogg’s new product, Nature’s Pleasure, muesli cereal increased by 140%. 4. The nutritional value of Kellogg’s products has increased its popularity among the people. 5 changes on Kellogg’s Product attributes or characteristics. 1. “Kellogg’s Corn Flakes the originals, crispy flakes made out of sweet corn” (International Marketing Mix of Kelloggs Cornflakes, 2001). After the invention of cornflakes, innovations were made by adding sugar, salt, malt, vitamins and iron. 2. Kellogg's Crunchy Nut Corn Flakes has a variety of products like Crunchy Nut, Crunchy Nut Clusters Milk Chocolate Curls, Crunchy Nut Nutty and Crunchy Nut Feast Chocolate Curls. 3. Kellogg’s introduced Special K as a healthy meal that contained wheat, barley ans milk ingredients, which would help in losing weight. 4. Kellogg’s introduced new flavors like chocolate, fruits, honey, vanilla etc. 5. The company also began to produce healthy candies like Rice Krispies Squares, Chewy Marshmallow, Rice Krispies Cereal and Milk Bar etc. 5 changes in marketing or advertising at Kellogg’s since inception 1. In 1914, with the initiation of pasteurization of milk, the ready to eat cereal business developed, to move along with a developing market, Kellogg’s company changed one of their marketing techniques as they adopted and developed new products, packaging and marketing innovations to fit consumer needs. 2. In 1923, Kellogg’s wheat flakes was introduced. Kellogg’s continued to expand into new markets. “In 1920’s they brought new marketing innovations. A mail-in-promotion made battle creek, Michigan a household word when millions of youngsters clipped and mailed in Kellogg’s boxtops for stuff-yourself nursery Rhyme rag dolls” (Kellogg in the beginning, 2007). 3. Kellogg’s created “Tony the Tiger” as their cereal icon, Tony often appeared in American advertisements as an animated character in a live-action world. “Tony the Tiger first appeared in commercials for Frosted Flakes in 1952 and has been going strong ever since” (Tony the Tiger Biography, 2011). 4. In the 1960’s, a broad variety of marketing techniques were introduced by Kellogg’s. Five cereals, namely: Kellogg’s Froot loops, Kellogg’s Apple Jacks, Kellogg’s Frosted Mini-wheats, Kellogg’s Bran Buds and Kellogg’s croutettes were introduced in the market. 5. Kellogg’s became the first cereal company to voluntarily list the amount of sugar in its cereals on the side panel of its packages. This was the strongest decade of growth in the history of ready-to-eat cereal consumption. It all happened in the 1970’s “In the meantime, the company continued increasing its information programmes for schools, health organizations, and consumers, and established a committed consumer relationships department that today responds to thousands of enquiries a year about the Kellogg Company's products and practices” (The 50s, 60s and 70s, 2011). 5 new Kellogg’s brands introduced after market research and why: Kellogg’s have launched several brands after conducting the market research. There are several brands, which had gone through a detailed market research process before launching new products into the market. “These are few brands included in that list Kellogg’s Corn Flake Crumbs, Kellogg’s rice Krispies treats –original bars, Kellogg’s Special K Bar Blueberry, Kellogg’s Eggo Minis Home style waffles, Kellogg’s Frosted Krispies cereal” (497 Products Found, 2011). 3 Marketing research techniques used in this case: The three marketing techniques used in this research are as follows: 1. Qualitative method: It comes under the primary research method. It is concerned with evaluating things rather than counting, creating in particular approximation of averages and differences between groups. This research method creates conversations with consumers and by making use of this method, the company can acknowledge the response of all consumers, so it enables them to develop products according to the consumers taste. 2. Quantitative method: This method is also part of the primary research method. It depends less on interviews, observations, focus groups, individual reports and case studies. This research method concentrates more on the collection and analysis of mathematical data and statistics. 3. Secondary research: Secondary research is a common research method used in the business or marketing industry. “Secondary research involves processing data that has already been collected by another party. With this form, researchers will consult previous studies and findings such as reports, press articles and previous market research projects in order to come to a conclusion” (What is Secondary Research?, 2011). In this case, Kellogg’s has used secondary research that is using the existing data, which was previously collected by other organizations. Reference List Hewitt, J., 2011. Purpose of Marketing Research. [Online] eHOW. Available at: http://www.ehow.com/about_4779336_purpose-marketing-research.html [Accessed 30 May 2011]. International Marketing Mix of Kelloggs Cornflakes, 2001. [Online] GRIN. Available at: http://www.grin.com/e-book/105325/international-marketing-mix-of-kelloggs-cornflakes [Accessed 30 May 2011]. Kellogg in the beginning, 2007. [Online] Kellogg Co. Available at: http://www.kellogghistory.com/timeline.html [Accessed 30 May 2011]. Kellogg’s: Revitalizing a valued character, n.d. [Online] Kellogg. Available at: http://www.pcukraine.org/materials/downloads/1190885707_Kellogs_Case_-_James_Surovec.rtf [Accessed 30 May 2011]. Kellogg's announces cut in sugar in its cereals, 2010. [Online] BBC News Health. Available at: http://www.bbc.co.uk/news/health-10857335 [Accessed 30 May 2011]. 497 Products Found, 2011. [Online] Kellogg NA Co. Available at: http://www2.kelloggs.com/ProductSearch.aspx?page=1 [Accessed 30 May 2011]. Science and Research, 2011. [Online] Kellogg Nutrition. Available at: http://www.kelloggsnutrition.com/about-kellogg-nutrition/science-research.aspx [Accessed 30 May 2011]. Thomas, JW., 2011. Marketing Research Glossary – I. [Online] Decision Analyst. Available at: http://www.decisionanalyst.com/Glossary/IGlossary.dai [Accessed 30 May 2011]. The 50s, 60s and 70s, 2011. [Online] Kellogg. Available at: http://www.kelloggs.co.uk/company/history/50s60sand70s.aspx [Accessed 30 May 2011]. Tony the Tiger Biography, 2011. [Online] Kidzworld. Available at: http://www.kidzworld.com/article/5732-tony-the-tiger-biography [Accessed 30 May 2011]. What is Secondary Research?, 2011. [Online] marketresearchworld Available at: http://www.marketresearchworld.net/index.php?option=com_content&task=view&id=810 [Accessed 30 May 2011]. Read More