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    CASE-ANALYSIS JKMonzonB229

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    Shaina Aragon
    Kellogg's wanted to introduce a new cereal to increase its market share that was losing to competitors. It developed Nutrigrain, a cereal without sugar and high in nutrition made from grains. Nutrigrain was introduced in four varieties together without test marketing. Heavy promotion targeted adults through discounts and information packaging. Sales initially increased but then declined due to lack of repeat purchases. Kellogg's withdrew two varieties and replaced them, and later realized adults had little time for breakfast and still preferred sugary cereals.

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    CASE-ANALYSIS JKMonzonB229

    Uploaded by

    Shaina Aragon
    1K views2 pages
    Kellogg's wanted to introduce a new cereal to increase its market share that was losing to competitors. It developed Nutrigrain, a cereal without sugar and high in nutrition made from grains. Nutrigrain was introduced in four varieties together without test marketing. Heavy promotion targeted adults through discounts and information packaging. Sales initially increased but then declined due to lack of repeat purchases. Kellogg's withdrew two varieties and replaced them, and later realized adults had little time for breakfast and still preferred sugary cereals.

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    CASE-ANALYSIS_JKMonzonB229

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    Kellogg's wanted to introduce a new cereal to increase its market share that was losing to competitors. It developed Nutrigrain, a cereal without sugar and high in nutrition made from grains. Nutrigrain was introduced in four varieties together without test marketing. Heavy promotion targeted adults through discounts and information packaging. Sales initially increased but then declined due to lack of repeat purchases. Kellogg's withdrew two varieties and replaced them, and later realized adults had little time for breakfast and still preferred sugary cereals.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views2 pages

    CASE-ANALYSIS JKMonzonB229

    Uploaded by

    Shaina Aragon
    Kellogg's wanted to introduce a new cereal to increase its market share that was losing to competitors. It developed Nutrigrain, a cereal without sugar and high in nutrition made from grains. Nutrigrain was introduced in four varieties together without test marketing. Heavy promotion targeted adults through discounts and information packaging. Sales initially increased but then declined due to lack of repeat purchases. Kellogg's withdrew two varieties and replaced them, and later realized adults had little time for breakfast and still preferred sugary cereals.

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    © All Rights Reserved
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    of 2

    Carefully read the case below and answer the questions given:

    KELLOGG'S

    In the U.S. cereals are taken at breakfast time. Cereal manufacturing is an industry of great magnitude. Cereals
    are manufactured in various shapes, flavours and colours and the advertisement is directed at children. The
    leading manufacturers are Kellogg’s, General Mills, General Foods, Quaker Oats, and Champion. Kellogg’s
    share was constantly being eaten away by other manufacturers who were introducing new cereals. Kellogg’s
    therefore thought of introducing a new cereal, which they had not done for a long time. The cereals were not
    only consumed by children, but a substantial portion formed the adult market as well. Kellogg’s developed a
    new plan to come out with a cereal which would be tasty, nutritious, and free of sugar and made of grain. The
    cereal consisting of the above attributes was named “Nutrigrain”. These were available in four types. Nutrigrain
    Corn, Wheat, Barley and Rye. These were introduced together, and no test marketing was done to avoid
    competition. These Products were advertised heavily and targeted at adults. To promote the product further,
    discount coupons were freely distributed, which gave a cut of about 30 per cent in the retail price of the product.
    Coupons were also inserted in the Nutrigrain boxes’ so that customer would return to take advantage of these
    coupons, and make repeat purchases. A lot of information and advantages of consuming Nutrigrain was boldly
    printed on the packages for the information of the consumers. Proper display in the shelves of stores was also
    taken care of. Their efforts brought results, and the stores were loaded with orders and most adults started eating
    these cereals, because of promotion, curiosity, etc. After one year, the sales declined because there were very
    few repeat purchases. This started the extensive thinking as to where they had gone wrong. Consequently, they
    withdraw two of their brands—Barley and Rye. These were replaced by raisin and wheat varieties. They also
    found out later, that there was a shortage of time for the adults, which prevented them from having cereals. If
    they could get out of bed 10 minutes early and devote these ten minutes to breakfast, they would probably enjoy
    the cereals. They also found out that though people were clamoring for sugarless cereals, yet they loved to
    satisfy their palates with sugar coated cereals.

    Use the worksheet provided below to analyze the case.

    Case Analysis Worksheet

    “Kellogs Nutrigain”

    1. Should Kellogg’s have done test marketing and gradual product introduction? Explain why. (10 pts)

    Kellogg’s have done test marketing and gradual product introduction because it gives a day to
    day goods and most healthy products of which it contains the protein content rich in all the other dairy
    products. As I have seen in some Social Medias, they published more advertisement of which it attracts
    the more children by eating and other milk products. They also provide some cereals which it is more
    efficient and too good for health.

    2. How can you comment on the habits of the consumers and their preferences? (10 pts.)

    Kellogg’s welcomes social responsibility and notes the environment, advocating healthy
    lifestyles, and promoting diversity as its main responsibility. When it comes to baking, this is one thing
    that Kellogg’s knows and does best. And as a result, many products are in mature stage and are at a peak
    when it comes to profitability
    3. Suggest methods of increasing the market share of the adult market? (20 pts.)

     Recruit more baby-boomers because their market is growing and they are the most health
    conscious and wealthiest generation
     Increase their advertising towards Generation Z to establish customer loyalty
     Expand their snack catalogue so it is marketable to all age groups with all kinds of concerns and
    preferences
     Stay ahead of your competitors
     Develop a unique brand position
     Be available at all times, because social media is 24/7, consumers have come to expect
    immediate responses from brands, even nights and weekends.

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