Network distribution at Kellogg Company

            The company Kellogg’s came into being in 1900’s in US. The company is one of the leading food selling companies. Their food items contain breakfast items as well as snacks. The company has several followers and customers from all over the world. The company still follows the strategy of improved diet and improved health. Kellogg’s sell cereals and other breakfast items not only in US but everywhere around the globe. The manufacturing units are present in Asia, Canada, Australia, UK and USA.

        The products are manufactured in nearly 19 countries and are distributed in 160 different countries around the world with the help of their vast distribution network. The company has approximately 40 types of cereals and snacks including Kellogg’s corn flakes, Special K, Fruit n’ Fiber, Rice Krispies and Nutri grain cereal bars with several other products.

        The planning system of the company is known as Kellogg’s planning system (KPS). It is a large scale, multinational company with vast production and distribution program. An operational unit of KPS decides where the products will be manufactured and will be distributed to. Smart strategy of KPS to have a monthly detail of the company provides better outlook to design a budget, and to take expansion and distribution decisions. Operational KPS helps to reduce the cost of production, distribution and inventory.

        Channel of distribution is a powerful strategy of marketing. It is designed in such a way that customers are connected to the products and the company producing those products. Distribution strategy of every company is designed on the basis of behavior and consumption of customers. Sales are increase when location of market is distributed this is the reason why Kellogg’s have manufacturing units in 19 countries.

        According to a report submitted by Kellogg’s in 2015, sales increase when system is geographically expanded which clarifies the reason of worldwide distribution, several units of manufacture and launch of first café by Kellogg’s in Sydney. There are three main levels of supply chain, most evenly distributed. It is divided in 3 sectors. Primary sector is the sector to which raw material is transferred from all around the world.

        Secondary sectors include regions where products are manufactured, raw material is supplied and then products are packaged and then exported to everywhere around the world. Third sector is mainly the business sector; it is used by secondary sectors to benefit the business process. Kellogg’s is involved in food business, and comes under the heading of secondary sector and tertiary sector. They assure best quality product making and distribution, it is important for business to store products carefully and perform effective distribution.

        Kellogg’s has the best distribution strategy which is requires to do effective business in this world. The choice of distribution is intensive; all of the products are widely and readily available. They have distributed their products not only big shopping hubs like Walmart, Tesco etc. but also at local shops and at college vending machines.

        K-special and nutria grain bars are most common treats among young girls and women. Kellogg’s have kept itself up to date by joining social media, having contest, use of coupons etc. in order to increase the sale and demand. Having partnership with business experts increases the business, customer and environment in order to achieve goal of specialization by expanding supply and making it cost effective and accessible. (Wordpress.com 2018)

Reference of Network distribution at Kellogg Company

Wordpress.com. 2018. Distributional Channelling By Kellogg’s. https://mpk732t12016clusterb.wordpress.com/2016/05/16/distributional-channelling-by-kelloggs/.