Marketing Management

Assignment Exam
Shahzaib Asim
20181-24813

ANSWER 1
In order to collect information regarding the market of cereals, Kellogg carried out both primary
and secondary research. Kellogg did this before bringing the product in the real market. For the
qualitative research they used focus groups as they focused more on primary research. This
helped Kellogg to know the attitudes and emotions of the consumers about the ideas of the
product. Because of making consumers participate in deciding the great idea for the product,
the response of consumers and their demand towards the product increased which was great
support for Kellogg to identify it correctly and easily. Furthermore, in the final phase they also
provided consumers with a new product so could be checked through test and Kellogg could
know how consumers interacted with the product .The best strategy used by Kellogg to collect
insight was by utilizing primary researchers and make consumers participate in picking the great
ideas for the product and as the result big sales came through of the company.

ANSWER 2

When a person thinks of diversification by bringing out new product to launch in existing
market, then it is vital to go for product line extension. This is because product line extension
gives more comprehensive information to the consumers about the existing brand or product
and there is less risk factor involved as it is well known to customers in the market. There is
less chance of high risk because existing product is already doing great in the current market .
So there is no need of market penetration. When we talked about Kellogg the company
launched a new product using line extension of crunchy nuts as crunchy nuts was bread and
butter of the company and they were earning high margins of profits. Due to this the risk of
new product launch of the same brand name became low. Since customers were already
consuming crunchy nuts. So it is concluded that due to existing brand the consumer will try the
product once and this may help company to generate profits from more secondary products
too. Eventually if new product launch gets successful then there is possibility that crunchy nuts
become secondary product of the company.

ANSWER 3

I have chosen coca cola as my fast moving consumer good (FMCG). Coca cola is well consumed
in the market of beverages. It is famous and well known product. I think through active
participation of the customers and gaining feedback are the two important actions to achieve
customer insight. Active participation can be done by involving customers in fun activities like
games and through feedback evaluation of customers’ likes and dislikes can be obtained. The
common insights we can get are taste, flavors and quantity of product. Keeping coca cola rival
competitor in the mind pepsi , coca cola has to meet demands and satisfies its customers in
every possible way. Consumers insight will let us know which flavors are mst liked by
consumers and how often they purchase it. These insights can be obtained through word of
mouth at the time of purchase. For example the stock of coca cola has to available over the
certain period of time in order to prevent customers leave store empty handed and a sales
representative has to there at the counter to facilitates customer at the time of purchase and at
that time he can ask questions from customers about customer they purchase. Any new flavors
launched can be tested through free samples attached to existing products. Moreover, due to
tough rival competition with pepsi , coca cola has to strengthen its customer retention strategy.
So customer insight is very important in all means for sales maximization and customer
retention.