CPGmatters: Kellogg Enhances Package Designs Using Virtual Shopping Platform
Through a special arrangement, presented here for discussion is an excerpt of a current article from the monthly e-zine, CPGmatters.
Kellogg Company is enhancing the packaging of its breakfast cereals by leveraging the consumer insights gathered through virtual shopping. One of the brands to benefit from this cutting-edge methodology is Kellogg's Smart Start, a heart-healthy cold cereal that's low in sodium to help lower both blood pressure and cholesterol.
"Awareness was somewhat low because it was a relatively young brand and because the heart-health category was already crowded with brands such as Cheerios, Oatmeal Crisp and Quaker Oatmeal, among others," said Brian Seel, associate manager of market research for Kellogg Company. "Beyond awareness, a key barrier to trial was skepticism of the taste. Finally, qualitative research found that the packaging had been criticized as being too 'medicinal' and lacking in warmth."
"The Smart Start package needed some work," he said.
For solutions, Kellogg turned to Decision Insight for its virtual shopping platform called SimuShop that enables product manufacturers to test options on the shelf.
A panel of qualified consumers was selected and a scenario was set up for a shopping trip. A combination of text and video cues set the context for an online shopping experience. Video takes shoppers from the parking lot into the grocery store and into the breakfast aisle. They can click on products for more information such as size, nutrition and price and to make a purchase. Consumers could buy or not buy any product, or even walk away without any purchase (this determines the "walk-away" rate).
For Kellogg's Smart Start, designers developed four versions of the package that aimed to stand out more on the shelf, present a warmer feel, and generate more trial. But Kellogg opted not to rely on traditional methods of research that essentially involve side-by-side comparisons of packages, "what-if" changes in design, or expensive, full-scale in-market testing. Instead, it turned to testing using a virtual shopping platform for a more efficient and less costly form of research that provides the same output as an in-market test.
At the center of the virtual research was a four-part hierarchy of measures consisting of Sales, Shelf Presence, Brand Equity, and Aesthetic Appeal.
The research can also involve a combination of qualitative and quantitative exercises. After respondents have gone through the quantitative survey and virtual shopping, they can be intercepted by a live moderator for a one-on-one chat. The moderator drills down more deeply into their likes and dislikes about package design.
"Decision Insight has used the shopping platform for several years now," said Mr. Seel. "In our Smart Start test, we have the validation that it does work. Our brand and sales teams have embraced it. This is a methodology that our management trusts."
Discussion Questions: What do you think of using virtual shopping programs around packaging versus traditional methods of research such as traditional side-by-side comparisons?