Idea creating contest

Idea creating contest '97

Make your ideas become part of Kellogg's future business

Product idea: Cereals for pets

1. Market characteristics

Food for pets

· Market size : worth £ 3 billion

· segmentation: huge segmentation, covering all tastes and possibilities of food consumption for pets

· growth: huge growth in all segments.

· buyer interest: healthy, high quality food for pets. Same meals as humans

· competitors:huge amount of competitors !

Results of the customer interviews:

Do you think this idea is a welcome variety for your dog ?

Definitely yes 55 %

Probably yes 25 %

Might or might not 10 %

Probably not 7 %

Definitely not 3 %

What benefits do you see ?

· quick to prepare 60 %

· variation in feeding the dog 53 %

· healthy food for the beginning of the day 72 %

Can you imagine to buy the product regulary ?

· yes : 73 % no: 27 %

What improvements would you suggest ?

· meat flakes instead of bran flakes

· bran flakes with pieces of meat

How often would you use this product?

· every day: 64 % often: 20% sometimes: 10 % never: 5 % don't know: 1%

(Þ there is a high potential )

What would be a reasonable price ?

· not more expensive than common dog snacks

Who would influence your decision in buying the product ?

· the dog (when he seems to like it)

· my husband

App5

2. Marketing assessment

Does the product fit in our marketing philosophy ? Þ Cereals, with a high quality and healthy ingredients are our philosophy, but mainly for humans! The image could be damaged when cereals for pets are sold under the same name. But it could fit in the strategy	Score: 10
Is there a potential market for this product ? Þ Yes. The pet food Market is expanding quickly.	Score: 10
Is there an appropriate share for this product ? Þ Yes.A share is there definitely but there is a strong competition with well known market leaders	Score : 2
Are there sustainable competitive advantages of the product? Þ Yes. There is no such product in the market. A niche could be built.	Score : 2
Are the costs for marketing manageable ? Þ No, there would be very high costs in marketing. Humans must be convinced, that they're not eating petfood	Score : 0 Total: 24 (go)

3. Production assessment

Are the resorces for production given? Þ no, new machines have to be used	Score : 0
Is an economical production given? Þ no, costs are high for additional machines, success is unclear	Score: 0
Are the costs of manufacturing manageable? Þ no, we have no experiences in producing pet food, (high failures) and high machine costs	Score: 0
Is the know how to manufacture the product given? Þ yes, the way to manufacture the products should be not so different from the ways we know.	Scoring: 2 Total: 2(kill)
Is it feasible without changes in production? Þ no, because cereals for pets and humans can't be manufactured on the same machines	Score : 0

4. R&D

Is this product easy to develop ? Þ no easy development, new area, other than human food!	Score: 0
Are there synergies with existing products ? Þ yes, There might be synergies, bust most products (sweetened cereals) can't be used !	Score: 2
Is the product fast to develop ? Þ No ! Long development times have to be considered	Score: 0
Are the resources to develop product given ? Þ No! New food chemists have to be employed, No Know-how in pet foods	Score: 0
Are the costs for developing manageable ? Þ No ! We don't know anything about the costs to be considered, but high development costs	Score: 0 Total: 2(kill)