Balancing the marketing mix through creative and innovative strategies
A Kellogg's case study

Page 3: Marketing strategies and market research

The marketing strategy of a company sets out its overall aims and objectives through a detailed plan. For many businesses a key objective within the strategy will be to increase profits and gain market share.

One of Kellogg’s marketing objectives is to get its products into as many households as possible by providing new ways to make a positive impact on people. To achieve this objective Kellogg’s needs to undertake detailed market research to understand and test the market for customer preferences.

Kelloggs 19 Image 7In a groundbreaking initiative Kellogg’s created and implemented a Crunchy Nut (CN) restaurant in 2012, and again in 2013, which invited consumers to a unique ‘outdoor’ experience to taste new products and actively engage with the Crunchy Nut brand.

 

 

“You are invited to enter the Crunchy Nut restaurant – at your own risk! Inside you can enjoy one of the eight irresistibly tasty options from the menus with a choice of juices to compliment your food.”

Located at the Manchester Arndale shopping centre, the 2013 restaurant served 9,049 customers over a 12 day period. Many customers were surprised that everything was free of charge, over 8000 50p-off coupons were distributed, and the redemption rate of those coupons exceeded the industry average. Customers were invited to leave feedback on their experience through the use of social media channels, as part of Kellogg’s digital marketing strategy. The use of Facebook and Twitter enabled Kellogg’s to reach almost a million people.

As part of the event, the CN restaurant ran a Twitter competition and offered a specially designated Wi-Fi code to encourage Facebook/Twitter usage:

‘Both Facebook and Twitter were used to amplify the UK Crunchy Nut Restaurant experiential activity’.

Feedback from one of the event managers indicates that it was a very positive experience for customers:

‘Consumers constantly made comments on their shock that they were being given a free bowl of cereal. The overall look of the stand impressed many people with them thinking it was a proper eatery and queuing up expecting to pay’.

Kelloggs 19 Image 6As a result of this initiative, £10,000 in media value was delivered across social channels and 2m shoppers were exposed to the CN restaurant, which has enabled the company to conduct further and more diverse market research into its products.

Kellogg's | Balancing the marketing mix through creative and innovative strategies

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