Kellogg's New Product Ideas

Remember the days as a child when you used to go into the kitchen and couldn’t wait to eat a hearty bowl of your favorite cereal? Eating cereal is not just a pastime though or something that only children can partake in. In fact, according to a startling statistic, "Americans buy around 2.7 billion boxes of cereal each year" equating to roughly "14 pounds of cereal that the average person consumes annually" (Lake, 2014). The producer of a sizeable portion of that cereal is Kellogg's. Rice Krispies, Mini Wheats, and Frosted Flakes are just a few of the recognizable cereals that Kellogg's has out on the market today. With Cereal sales dropping in the past years though (Taylor, 2015), and with Kellogg's being one of the largest cereal brands in …show more content…
According to the textbook, the idea screening process allows the company to "eliminate ideas for new products" (Peter & Donelly, 2013) that would not necessarily be profitable to the organization while also "expand[ing] viable ideas into full product concepts" (Peter & Donnelly, 2013). During this screening, Kellogg's must consider the risk involved with introducing a new product idea. Kellogg's must analyze the strategic, market, and internal risks prior to making a determination on whether to move forward with the implementation of a new product. Kellogg's should evaluate the purpose of their organization in regards to the role the new product will play. Then, Kellogg's look to the market itself to analyze the demand for the product. Lastly, Kellogg's should reflect on the ability of the company to successfully develop and market this new product. Kellogg's slogan reflects the organization's purpose in providing the best each morning. Because of this, introducing a frozen breakfast food product line would directly align with Kellogg's purpose. Additionally, the market research presented in this paper alone reflects a demand within the industry for this new product line. Kellogg's vast size would ensure them the financial capabilities to streamline a frozen food product …show more content…
The goal of test marketing is to evaluate the potential of the produce and adjust accordingly. To perform test marketing, Kellogg's should release a limited amount of frozen breakfast food items in groceries nationwide. This test marketing works as a controlled experiment whereas the consumer is oblivious to the exercise (Peter & Donnelly, 2013). This creates a real-life buying situation which can be analyzed and addressed by Kellogg's