Wake-Up Call 0425 Marketing Applications TOPIC OR UNIT OF STUDY Marketing Research and Information Management CONTENT STANDARD(S) AND OBJECTIVE(S) Identify sources of error and bias (e.g., response errors, interviewer errors, non-response errors, sample design) (Activity 1) Evaluate questionnaire design (e.g., types of questions, question wording, routing, sequencing, length, layout) (Activity 1) Assess appropriateness of marketing research for problem/issue (e.g., research methods, sources of information, timeliness of information, etc.) (Activity 1 & 2) Write executive summaries (Activity 3 & 4) INTRODUCTION Wake Up! That’s what businesses have to do when their products are no longer selling. Your company has to make money, but for some reason, you aren’t making any more money, you are making less. Kellogg’s cereal. You have to find a solution to this problem. Find a cereal that your customers will love to eat. ESSENTIAL QUESTION How do businesses use market research/questionnaires to improve market ratio or improve sales? INTEGRATION OF ACADEMICS, TECHNOLOGY, ENTREPRENEURSHIP To complete this project, students will use basic terms and concepts, to complete the following academic, technology, and entrepreneurship activities: 1. Academic activities – concept analysis, and critical thinking and writing skills; 2. Technology activities –use of MOS PowerPoint and Word; 3. Entrepreneurship activities – creating a new product, designing packaging, and working in groups to complete the process. STUDENT INVOLVEMENT IN PLANNING PROCESS Students will develop a product and complete market research based on their group decisions. TASK(S) Identify Teams & Discuss Market Research Strategies 30 min Discuss questionnaires and surveys, develop questions after reading Activity 1 60 min Design and Begin Conducting Market Research with Activity 2 90 min Analyze Market Research and Begin Product Design continuing Activity 2 45 min Identify Valid vs. Reliable Research continuing Activity 2 45 min Complete Design continuing Activity 2 60 min Discuss Executive Summaries continuing Activity 2 30 min Explain Cereal Concepts during Presentation continuing Activity 2 90 min RESOURCES http://travisrmartin.com/lesson-plans/marketing-lesson-plans/ TECHNOLOGY USE Computers, Websites listed above, Microsoft Word, and PowerPoint software. EVALUATION #1 – Activity 1 – Case Study n/a #2 – Activity 2 – Your mission – market research & production creation 125 pts Total points for these activities 125 pts Authentic assessments will be evaluated with the rubrics that are located on each activity TIMELINE Block scheduling-5 days, periods-10 days. This includes time for lecture, textbook readings, and discussions. Depending on student’s ability, extended time may be needed on some projects. Day 1 Assign Teams & Discuss Market Research Strategies 30 min Discuss questionnaires and surveys, question development 60 min Design and Begin Conducting Market Research 90 min Analyze Market Research and Begin Product Design 45 min Valid vs. Reliable Research 45 min Day 4 Completed Design Due at End of Period 60 min Discuss Executive Summaries 30 min Day 5 Presentation of Cereal Concepts 90 min CONCLUSION At the conclusion of this project, students will understand how to conduct market research, analyze the results of the research and use it to produce a new product or improve sales. They will summarize their result in an executive summary and present their concepts to the class in groups. Day 2 Day 3 Intro to Business Marketing Unit - Product Planning Case Study CASE BACKGROUND Kellogg's Quest for that Old Snap, Crackle, and Pop Despite the breakfast king's world-famous brands, tastes are changing and sales are flat. Can it come up with a winner? After several consecutive years of disappointing results due mainly to slumping breakfast-cereal sales, Kellogg (K ), the maker of Rice Krispies and Frosted Flakes, has leveled with investors. For most, the truth hasn't been easy to swallow. Most analysts who follow the company's stock rate it a hold or neutral -and they don't expect much, if any, market appreciation this year. "The company really lowered expectations substantially," says CS First Boston analyst David Nelson, who adds: "Kellogg finally fessed up to the magnitude of the problem. Recognizing it was a positive, but this company still doesn't provide a particularly exciting story." The woes at Kellogg begin and end with the ready-to-eat cereal business. Sales across the industry are declining. Since 1994, Kellogg's U.S. cereal sales have gone nowhere. Worse, the company has lost market share to rivals General Mills, Post, and Quaker Oats. Just recently, General Mills, the maker of Cheerios, surpassed Kellogg in total-dollar market share, even as major cereal companies saw slight sales declines, according to Information Resources & Marketing, a research company based in Chicago. General Mills now controls nearly 33% of the cereal market, vs. Kellogg's 30%. This is stunning considering that Kellogg has reigned supreme in this business for decades. Getting the cereal business moving will be a tricky proposition, but Gutierrez insists it can be done. It's hard to say how much untapped value remains in these old brands. Gutierrez, who has spent his entire career at the company, certainly knows the products. But he has been CEO less than two years and deserves a bit more time to demonstrate whether or not he can turn this company around. The company has been reducing its exposure to cereal for the past several years, selling snacks, such as Nutri-Grain breakfast bars, that can be consumed in a car or on the train, unlike cereal with milk. But, dry cereal still accounts for the overwhelming majority of Kellogg's $7 billion in annual revenue. Gutierrez is hoping his product development department can create a new cereal that will help propel growth in an industry that has gone soggy. (Case adapted by Mr. Martin from 2/16/01 BusinessWeek article) Kellogg’s Cereal Brands Kellogg’s Cereal Brands - Your Mission In this project you will be divided into teams of 3-4 to develop a concept for a new cereal to be sold by Kellogg’s. The project will require completion of three separate activities: I. Plan and conduct market research (surveys or focus group) II. Analyze data from your market research III. Create a cereal product that will complement Kellogg’s existing brands and be successful in the marketplace (based on your market research) a. In creating your cereal product, you will be coming up with an original brand name and package design Market Research Points 5 5 5 5 2 3 Content Points Earned Clear outline plan for market research Created survey 1—12 questions Survey Analysis completed (show this on a rough draft), ambiguous wording was changed, use plain language. Completed surveys (25) Define target market Define wants and needs of target market Total Points _____ of 25 Cereal Box Points 3 3 3 2 2 2 Content Points Earned Cereal Box attracts target market Cereal box shows market research analysis was considered Same media was used ( for example, one side is not markers, one computer generated, one crayons, etc) Contains Kellogg Logo Contains Nutrition label and ingredients Price is listed on UPC code Total Points _____ of 15 Executive Summary Points 6 6 6 6 6 6 4 Content Points Earned Introduction to the problem Background information that motivates your work Restate the problem in your own words. Be precise in explaining to the reader the question that your cereal answers Explanation (and justification) of assumptions (or what you thought the people would want in a cereal Brief description of you research Results A small table/graph/picture that is properly labeled that can explain the results. Describe what the visual image shows and tell us about your cereal Analysis Brief summary Tell the reader why your cereal is the solution to Kellogg’s problem. Discussion of improvements that could have been made No spelling or grammar errors Total Points ____ of 30 Presentation Pretend I am the head of Kellogg and you want me to choose your cereal to put on the shelves Points Content Points Earned 10 All team members participate 10 One slide tells about research and survey 10 One slide tells about the results and analysis 4 Include a picture of designed cereal box 4 Include Kellogg Logo 5 No spelling or grammar mistakes 5 Slides are creative, easy to read and understand 8 Presentation has continuity Total Points ____ of 55 pts Peer Evaluation Peer Name Grade 0 1 0 1 0 1 0 1 Name: Comment 2 2 2 2 3 3 3 3 4 4 4 4