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Study on Market Potential with Special Reference to Kelloggs
Introduction
1.1 About the topic/title
The topic given by the industry is To Study on Market Potential with Special Reference to Kelloggs. 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 Kelloggs products in Institutions
- Placing of Kelloggs products in IT fields by collecting and providing details of new customers
- Convert the new customers as regular customers for Kelloggs products
1.3 Nature and scope of the project
The research helps to understand the customer experience in preferring the Kelloggs product and their level of satisfaction towards the product. It also helps me to create awareness about particular product of Kelloggs 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 Kelloggs 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 Kelloggs 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 Kelloggs are Bagrey, Soulful, Quaker for Oats and Nestle. The prices of particular Kelloggs product are high while comparing to other brand products. Moreover competitors other than Kelloggs are offering as combo pack with discounted price.
The second task assigned was to take a survey regarding the performance of Kelloggs product. From the survey taken from the existing customers, I understood that the performance of Kelloggs 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. Kelloggs 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 Kelloggs 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, Kelloggs Corn Flakes was introduced in Canada. Later the Kellogg company spread all over the world and today Kelloggs 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 Kelloggs 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, Kelloggs made landmark in India and presently it has been functioning more than 25 years. In 2006, the Kelloggs company celebrated 100- year commitment to nutrition, health and quality. Due to its 100-year celebration they introduced Kelloggs Special K Bars. In 2014, Pringles came to Kelloggs before it was took over by PNG. The major products of Kelloggs are cereals, cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, vegetarian foods. The subsidiaries of Kelloggs 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 Kelloggs company has around 60% market share in breakfast cereal products whereas Pringles had 80% of market share. Kelloggs revenue is ranked 3rd among its top 10 competitors. Over the last four quarters, Kelloggs revenue has grown by 4.8%.
2.6 SWOT Analysis of the Company
Strengths
- Product of Kelloggs 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
- Kelloggs 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
- Kelloggs choco bars are not available in India
Opportunities
- Kelloggs can diversify into other health snacks or in different departments like chocolate fields
- Tie-up with hospital canteens can boost the sales of Kelloggs 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 Kelloggs
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
- Kelloggs
- Category
- Food Processing
- Sector
- Food – Cereal Breakfast
- Tagline/ Slogan
- Bring out best to you
- USP
Kelloggs 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 dont make exact forecasts, and they dont decide circumstances and end results and they do not determine cause and effect. The main types of descriptive research methods are
- Observational Methods
- Case-study Methods and
- 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 Kelloggs 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 Kelloggs products and to interpret the findings and results through a set of questionnaire.
- 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.
- Observation: The products that customers preferred most are Chocos, Muesli and Corn Flakes
- Observation: Among all products of Kelloggs Chocos, Muesli, Choco fills and Corn Flakes are going well.
- Observation: The customers are mostly aware of Kelloggs products through Distributors rather than Advertising
- Observation: Good brand and Peoples choice plays a major role in preferring Kelloggs
- 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 Kelloggs
- Observation: The customers are mostly not aware of the products like Special K, All Bran, Crunchy Granola
- Observation: The Kelloggs products are preferred by all the people including Indians, International and Business Clients
- Observation The consumption of Kelloggs product for a month is approximately 5 to 10 kgs by most of the customers
- Observation: Most of the customers said that Brand Image plays a major role in recommending the products
- Observation: However there are few customers are dissatisfied with the price, most of the customer said that they are satisfied with the price.
- Observation: The customers are highly satisfied with the service provided by the Kelloggs and there are no compliant regarding the service of Kelloggs
- Observation: By providing samples Most of the customers are ready to buy Special K, All Bran and Crunchy Granola
- Observation: All the customers said that the overall performance of Kelloggs products are satisfied and highly satisfied
- 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 Kelloggs products and service. This research work concludes by giving some suggestions and recommendations which can be done by Kelloggs 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 Kelloggs 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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