Page 160 - Cambridge IGCSE Business Studies

Cambridge IGCSE Business Studies Section 3 Marketing

However, postal surveys are often seen as ‘junk mail’ and thrown away. Th is

produces a very low response rate. The results of postal surveys might also contain bias

TOP TIP because only those people with a real interest in the subject of the survey bother to reply.
Make sure you know the
advantages and disadvantages of
each method of market research, Online surveys
as well as when they should be Many businesses now use the internet and their own websites to carry out surveys.
used. Think about the type of The main advantage of online surveys is that they cover a very wide

company wanting the information
geographical area – anyone with internet access can take part. Also, the results are
and how much time and money
it might have, as well as what it typed into an online questionnaire and can be instantly collected and analysed.

needs the information for. The main limitations of online surveys are similar to those for postal surveys.
They are often seen as ‘electronic junk mail’ and the risk is that only those with

a real interest in the subject take part and the results cannot be relied upon as
representing the views of the whole population.

CASE STUDY Kellogg’s Crunchy Nut brand extension

Kellogg’s development of a new Crunchy Nut

brand extension.
For the development of Crunchy use to provide organisations like
Nut Bites, Kellogg’s used differ- Kellogg’s with research.
158
ent methods of research includ- Following the completion of both
ing both primary and secondary primary and secondary research
methods. Kellogg’s developed four prod-
Focus groups were used to uct recipes and these prototypes
provide qualitative research. were then tested with representa-
This primary research helped tive groups of consumers. This
Kellogg’s to fi nd out how new enabled Kellogg’s to select the
products could be developed and best one. The packaging designs
what consumers were looking for were also tested with consumers,
in terms of new fl avours and tex- which enabled Kellogg’s to select
tures. At the end of this research, the fi nal packaging design for
Kellogg’s had a number of new Crunchy Nut Bites.
food ideas. Kellogg’s launched Crunchy Nut
In addition, Kellogg’s used Bites in September 2008. Sales
Market data shows it was one of the best
secondary research.
Kellogg’s packaging research agencies collect a range performing brands to launch in
of data which they process and the breakfast cereal market.

Source: Adapted from http://businesscasestudies.co.uk/kelloggs/new-products-from-
market-research/conclusion.html#ixzz2VeucP8Bn

TASK

a What is the difference between primary research and secondary research?
b Identify one advantage and one disadvantage of secondary research.
c Why do you think Kellogg’s used focus groups in its market research?
d Identify and explain two benefits to Kellogg’s of test marketing.