Study on Market Potential with Special Reference to Kellogg’s

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Study on Market Potential with Special Reference to Kellogg’s

Introduction

1.1 About the topic/title

The topic given by the industry is To Study on Market Potential with Special Reference to Kellogg’s. Summer Internship Programme (SIP) is envisaged as a unique programme for talented college students across the country to get a real-time exposure in organization and to understand the customer behavior in preferring the products. The programme is designed to provide opportunity to students to interact with purchase manager/admin of the hotels/IT fields and to understand their shopping experience and as a result broaden their own learning on sales.

1.2 Objectives of the study

  • Survey regarding the performance of Kellogg’s products in Institutions
  • Placing of Kellogg’s products in IT fields by collecting and providing details of new customers
  • Convert the new customers as regular customers for Kellogg’s products

1.3 Nature and scope of the project

The research helps to understand the customer experience in preferring the Kellogg’s product and their level of satisfaction towards the product. It also helps me to create awareness about particular product of Kellogg’s where customers are not even aware of the product. By collecting details from IT fields and based on employees count, it helps to place the Kellogg’s product in their cafeteria.

1.4 About the project

The project was undertaken from April 22 to June 17 for 8 weeks. The first task assigned was to compare the Kellogg’s product with other competitors brand products by weight and price by visiting to super markets in and around Bangalore.

By visting to super market the major key learning are, the major competitors of Kellogg’s are Bagrey, Soulful, Quaker for Oats and Nestle. The prices of particular Kellogg’s product are high while comparing to other brand products. Moreover competitors other than Kellogg’s are offering as combo pack with discounted price.

The second task assigned was to take a survey regarding the performance of Kellogg’s product. From the survey taken from the existing customers, I understood that the performance of Kellogg’s product were good. In Likert scale format they had given 4 ratings out of 5 which signifies that the performance is good. Most of the customers are preferring to buy chocos, choco fills, corn flakes and wheat flakes. The customers are preferring to buy oats from Quaker because it had brand name for it. Kellogg’s products were preferred over other brands by many customers because of its good brand name. However, very few customers made a compliant regarding that the prices are too high.

The third task assigned was to collect the details of admin/cafeteria in charge and also the employees count in IT fields in and around Bangalore. From the data collected I conclude that most of the companies are having vendors and only limited number of employee are available. Some of them asked to send product variants and price list by mail.

Chapter 2. Industry analysis

2.1 History of the Company

The Kellogg’s company is an American multinational food manufacturing company headquartered in Battle Creek, Michigan, United States. In 1906, Will Keith Kellogg opened the “Battle Creek Toasted Corn Flake Company” with 44 employees. In 1914, Kellogg’s Corn Flakes was introduced in Canada. Later the Kellogg company spread all over the world and today Kellogg’s breakfast is available in over 180 countries around the world. In 1915, Kellogg introduced Bran Flakes, the first high fiber cereal followed by the introduction of Kellogg’s All Bran. In 1922, company is incorporated as the “Kellogg Company”. In 1930, Kellogg became one of the first companies to proudly display our cereal recipes and nutritional information on the boxes so it helps the consumers to knew exactly what they were eating. In 1994, Kellogg’s made landmark in India and presently it has been functioning more than 25 years. In 2006, the Kellogg’s company celebrated 100- year commitment to nutrition, health and quality. Due to its 100-year celebration they introduced Kellogg’s Special K Bars. In 2014, Pringles came to Kellogg’s before it was took over by PNG. The major products of Kellogg’s are cereals, cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, vegetarian foods. The subsidiaries of Kellogg’s are Kashi, Keebler Company, Bear Naked, and Rxbar.

2.2 Vision of the Company

To enrich and delight the world through foods and brands that matter

2.3 Mission of the Company

Our mission is to nourish families so they can flourish and thrive

2.4 Values of the Company

  • Integrity
  • Accountability
  • Passion
  • Humility
  • Simplicity
  • Results

2.5 Financial Status

The total net sales for the past 5 years is constantly growing and decreasing. The total net sale for the budgetary year 2018 is 13.5 billion (in dollars). The operating profit for the year 2018 is $1706. The total asset of the company for the past five years is constantly increasing. The total asset for the year 2018 is 17780 (in dollars). The company equity for the year 2018 is 2601 (in dollars). The Kellogg’s company has around 60% market share in breakfast cereal products whereas Pringles had 80% of market share. Kellogg’s revenue is ranked 3rd among its top 10 competitors. Over the last four quarters, Kellogg’s revenue has grown by 4.8%.

2.6 SWOT Analysis of the Company

Strengths

  • Product of Kellogg’s are manufactured in 18 countries and marketed in more than 180 countries
  • Great marketing initiative through various campaigns
  • Has a man power of over 30000 employees
  • Kellogg’s has a high brand recall and Top of Mind Awareness (TOMA) about breakfast cereal brand globally
  • Healthy food for all ages of people

Weakness

  • Prices of Pringles are very high because of imported goods
  • Kellogg’s choco bars are not available in India

Opportunities

  • Kellogg’s can diversify into other health snacks or in different departments like chocolate fields
  • Tie-up with hospital canteens can boost the sales of Kellogg’s product. Moreover it is a healthy product, patients also easily prefer the product

Threats

  • Increasing competition in readymade breakfast segment can reduce the business of Kellogg’s

2.7 STP of the Company

Segment

  • Food – cereal breakfast

Target

  • Family and children looking for healthy and tasty breakfast

Positioning

  • Quality, Trust, and good brand

2.8 USP of the Company

  • Parent Company
  • Kellogg’s
  • Category
  • Food Processing
  • Sector
  • Food – Cereal Breakfast
  • Tagline/ Slogan
  • Bring out best to you
  • USP

Kellogg’s is the first company to enter into readymade cereal breakfast segment

2.9 Product Portfolio & Competitors

Product Portfolio

  • Chocos
  • Chocos Moon & Stars
  • Chocos Duet
  • Chocos Ragi
  • Chocos Crunchy Bites
  • Chocos Shapes (Laddoo)
  • Chocos Fills
  • Corn Flakes (Original)
  • Rose Badam Corn Flakes
  • Kesar Badam Corn Flakes
  • Thandai Badam Corn Flakes
  • Corn Flakes with Real Almond & Honey
  • Corn Flakes with Real Honey
  • Corn Flakes with Real Strawberry Puree
  • Muesli Nuts Delight
  • Muesli Crunchy Fruit and Nut
  • Muesli Fruit Magic
  • Muesli No Added Sugar
  • Granola
  • Granola Almonds & Cranberries
  • Special K
  • Special K Multigrain & Honey
  • Special K Protein & Fibre
  • All Bran Wheat Flakes
  • Oats
  • Pringles (Any Varient)
  • Pringles Speciality

Competitors

  • General Mills
  • Mondelez International
  • Kraft Heinz
  • J M Smucker
  • Ingredion
  • Quaker Oats Company
  • Nestle
  • Conagra Foods
  • Tyson Foods
  • Britannia
  • Bagrey (Bangalore)
  • Soulful (Bangalore)

Chapter 3. Review of literatur

Customer Satisfaction

Customer satisfaction plays a major role for the company to build the sales and value of the brand. Generally customer satisfaction differs from people to people. Such type of satisfaction is ensured by satisfying the customers with their preference of goods and services. For this purpose they had to identify customer attitude towards different product and satisfy with their needs and comforts. (P.Pednekar, 2015).

This article mentions that every employee must understand customer expectations and provide a positive purchasing experience. SERVQUAL methodological approach and five dimensional model of Assurance, Reliability, Tangibility, Empathy and Responsiveness was applied to measure the customer satisfaction with the service quality of a product. (Rita, 2019).

The main objective of this paper is to contribute to the research by studying the models which have linkages between customer satisfaction, product quality and customer loyalty. From this the author had found that, product quality has positive impact on customer satisfaction and customer loyalty (Priyanka, 2018).

The role of trust is very important in developing and maintaining a good relationship between the customer and product. The author mentions that customer relationship is generally based on trust (Vikas, 2018).

Brand Image

The paper investigates the effect of brand image on purchase intention of the customers. Further, the study also shows that image is a moderator in the relationship between brand image and purchase intention (Zahid, 2017).

The author mentions that the purpose of this study is to explore the influence of brand extension, brand awareness, brand familiarity and customer attitude on brand image with regard to a specific product. Moreover the author finds that the variables brand extension, brand awareness, brand familiarity, and customer attitude contribute to the parent image (Le Tan, 2019).

The objective of this article is to investigate the relationships between brand image, brand personality and brand loyalty. The author found that there is significant relationship between brand image and brand loyalty and not with brand personality and loyalty (Hasnizam, 2017).

Customer Preference

This paper intends to study the preferences of customers when purchasing a product. The author conclude that the customer preference is generally based on the various attributes like type of company, product features, trust and other valued service. This study provides a holistic view of what customers expect from the industry and what the industry is prepared to provide (Biswajit, 2018).

This study investigates that in a product conceptualization customer preference plays a crucial role. This study aims at establishing an effective measure for evaluating demographic customer characteristic and detecting demographic customer difference in product conceptualization (Chun – Hsien, 2007).

Lead Generation

The article provides information on how to use effective techniques utilized by marketers today to increase the leads and generate revenues. The author also suggest from where to collect the source of leads and how to convert it (Keith, 2018).

The author insists how to generate the leads from the source available. He mention that social networking applications like Facebook, Linked In, Instagram etc can generate leads (Brett, 2017).

Chapter 4. Research methodology

4.1 Research design

Descriptive research

Descriptive research methods are generally – they portray circumstances. They don’t make exact forecasts, and they don’t decide circumstances and end results and they do not determine cause and effect. The main types of descriptive research methods are

  1. Observational Methods
  2. Case-study Methods and
  3. Survey Methods

4.1.1 Sampling

4.1.1.1 Size

The size of the total target population is 89 star hotels

  • Catering Service – 14
  • 3 star hotel – 20
  • 4 star hotel – 30
  • 5 star hotel – 25

4.1.1.2 Unit

The sampling unit is chosen from Bangalore

4.1.1.3 Area

The sampling area of 89-star hotels is chosen from in and around Bangalore like

  • Madiwala
  • Bellundur
  • Marathahalli
  • Whitefield
  • JP Nagar
  • Residency road etc

4.1.1.4 Method

The convenience sampling method is used here

4.1.1.5 Data Collection

The data collected here is primary data as this serve as a base for further analysis and investigations. The data is collected based on random sampling method as the customers are interacted randomly. As already said the data is collected through survey which is conducted with structured questions.

4.1.1.6 Tool of Analysis

Of all the star hotels, a separate quantitative analysis is done by using the tool MICROSOFT EXCEL. A comparative analysis was done between the hotels by using MICROSOFT EXCEL to find which type of hotel performs well in which aspect and also the loyalty and trust towards Kellogg’s was also evaluated.

Chapter 5. Analysis and interpretation

Qualitative analysis

The study is based on quantitative analysis for taking a survey regarding the performance of Kellogg’s products and to interpret the findings and results through a set of questionnaire.

  1. Observation: The customers are mostly preferring to by Chocos, Muesli and Corn Flakes. Crunchy Granola has no good place in market. Only very few customers are buying all the products.
  2. Observation: The products that customers preferred most are Chocos, Muesli and Corn Flakes
  3. Observation: Among all products of Kellogg’s Chocos, Muesli, Choco fills and Corn Flakes are going well.
  4. Observation: The customers are mostly aware of Kellogg’s products through Distributors rather than Advertising
  5. Observation: Good brand and People’s choice plays a major role in preferring Kellogg’s
  6. Observation: Most of the customers are preferring to buy Bagrey and Quaker. Most of the customers are buying Quaker Oats because it has good brand name over than Kellogg’s
  7. Observation: The customers are mostly not aware of the products like Special K, All Bran, Crunchy Granola
  8. Observation: The Kellogg’s products are preferred by all the people including Indians, International and Business Clients
  9. Observation The consumption of Kellogg’s product for a month is approximately 5 to 10 kg’s by most of the customers
  10. Observation: Most of the customers said that Brand Image plays a major role in recommending the products
  11. Observation: However there are few customers are dissatisfied with the price, most of the customer said that they are satisfied with the price.
  12. Observation: The customers are highly satisfied with the service provided by the Kellogg’s and there are no compliant regarding the service of Kellogg’s
  13. Observation: By providing samples Most of the customers are ready to buy Special K, All Bran and Crunchy Granola
  14. Observation: All the customers said that the overall performance of Kellogg’s products are satisfied and highly satisfied
  15. Observation: From the leads collected I had converted 1 as hot lead and 6 as warm leads while others 55 remain as cold leads

Chapter 6. Conclusion

By this research I can conclude that the customers are really satisfied with the Kellogg’s products and service. This research work concludes by giving some suggestions and recommendations which can be done by Kellogg’s in order to meet the customer expectation and satisfaction. Also I can understand at what levels the customers are aware of the products like Special K, All Bran and Crunchy Granola. Even though some customers said that the prices are high but they prefer to choose Kellogg’s because of good brand and quality. While in lead generation some of the IT fields are ready to purchase the product and also asked me to send the proposals through mail.

Products customer prefer

Column1 Chocos Choco fills Muesli Oats Corn Flakes All Bran Crunchy Granola 62 35 57 12 50 25 8 Products

Count in Numbers

Products going well

Column1 Chocos Choco fills Muesli Corn Flakes 60 30 52 43 Products

How Aware of Kellogg’s

Series 1 Advertising Distributors 25 64 Count in Numbers

Why Kellogg’s over other Brands

Sales Brand Image Customer Preference Company Contract Product Quality 35 30 14 10 Other Brands Customer Prefer

Series 1 Bagrey Nestle Soulful Quaker Not mentioned the Name 25 14 13 22 15 Brand’s Name

Count in Numbers

Awareness of Special K, All Bran, Crunchy Granola

Column1 Yes No 34 55 Types of People Prefered

Series 1 Business Clients International Clients Indians All 15 10 10 50 Consumption of Products in Kg’s

Column1 2 to 5 5 to 10 10 to 15 15 48 26 Count in Numbers

Brand Image

Sales Very Important Important Some what Important 29 45 15 Satisfaction of Price

Series 1 Highly Satisfied Satisfied Neutral Dissatisfied 14 49 16 10 Count in Numbers

Satisfaction of Service

Sales Highly Satisfied Satisfied 55 34 Ready to buy Special K, All Bran, Crunchy Granola

Series 1 Yes No Provide Samples 19 25 45 Satisfaction of Product

Sales Highly Satisfied Satisfied 29 60 Lead Generation

Series 1 Total Leads Cold Leads Warm Leads Hot Leads 65 43 14 8 Types of Leads

Count in Numbers

Timeline of the Histroy of the Company

Series 1 Start of the Company Corn Flakes Introduced Bran Flakes Introduced Incorporated as Kellogg’s Display information on boxes Landmark in India Special K bars Introduced Pringles take over 1906 1914 1915 1922 1930 1990 2006 2014 Years

Net sales over the past 5 Years

Column1 2014 2015 2016 2017 2018 14580 13525 12965 12854 13547 Years

In Dollars

Net operating profit for the past 5 years

Series 1 2014 2015 2016 2017 2018 1693 1268 1483 1387 1706 Years

In Dollars

Products customers buy from Kellogg’s

Count in Numbers Chocos Choco fills Muesli Oats Corn Flakes All Bran Crunchy Granola All 70 40 67 22 55 38 17 5

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