Caselet Assignment $($A$)$

Problem Definition Step of the Marketing Research Process

Roll NoMS$23$AO$60$

Name Preethi.P

The Situation

Kellogg's is the world's 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\mathrm{.}4$ billion and a market share of more than $30$ percent. David Mackey, CEO of Kellogg's, takes pride in being part of the Kellogg's 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 Kellogg's is untouchable. However, Kellogg's faced a slump in the market. Its cereal sales were declining, and it had to face the challenge of getting out of its slump. Kellogg's, therefore, turned to marketing research to identify the problem and develop several potential solutions to increase cereal sales.

Kellogg's 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.

THE MARKETING RESEARCH DECISION

Q$1$: What is the management decision problem facing Kellogg's?

Ans$\mathrm{.}1$: What should be done to increase cereal sales

Q$2$: Define appropriate marketing research problems that Kellogg's needs to address, and break them into its components.

Ans. $2$: How many problems? $3$

Problem $1-$Determine and compare the Sales of and the Kellogg's cereals w$.$r$.$t$.$ other competitors factors affecting them?

Components for Problem $1$:

$Cl-$ Who are the target Aarket? customer

C$2-$What are their demographic and psychographic Can they be segmented $?$

$4$