Distribution Strategy:

 Kellogg’s a Global Company and serving a worldwide has a large range of supply
chain with manufacturing plants in nearly eighteen countries.
 The marketing and selling of the products is achieved nearly in one hundred and
eighty countries.
 Kellogg’s believes that greatest opportunities for growth is to expand geographically
as well as into new, high-potential channels of distribution. One example for this is
launch of Kellogg’s first ever café in Sydney is their latest geographical expansion.

Intermediaries:
 Kellogg’s has been implementing the Intensive distributional strategy to gain
control of the market by providing assortment within its product category.
 It has achieved good saturation coverage using every available outlet ranging from
local corner shops to huge supermarkets i.e., Dmart.
 To meet the intensive distribution strategy Kellogg’s follows 3-level consumer
marketing channel.

Manufaturer Wholesaler Distributer Retailer Consumer

Channel Power:
To reach the consumers at proper time and place the company has also opened warehouses
that keep a well-stocked supply of products that are quickly and efficiently dispatched when
required.
 Kellogg’s also believes reliance on retailer is critically important as it promotes &
builds a good relationship between consumers and its products.
 It uses Reward power on retailers by providing initiatives that add value for the
retailers.
 It also uses the concept of Pull Strategy i.e., use of coupons, contests and other
discounts to boost its purchases.

Logistics:
 Kellogg’s possesses well-designed transportation systems as well as an organized and
equipped storage system to ensure that products do not spoil and reach the customer
in fine quality.
 They adhere to the lean production system (Just-In-Time production) to streamline
processes and eliminate waste. In addition, Kellogg Planning System (KPS) is used to
optimise its operations and monitor effectively its inventory and distribution systems.
  The supply chain of Kellogg’s is divided into three sectors:

1. Primary Sector:
In this Sector, Raw material is provided to the company from around the
suppliers.
2. Secondary Sector:
In this sector, Products are made using the raw material used and shipped to
the wholesalers or stored in warehouses.
3. Tertiary Sector:
This is a service sector, which the company uses to optimize or benefit
business process. E.g. Customer services.

Digital Channel revolution:

 Kellogg’s also offers great spatial convenience by selling cornflakes through e-
commerce site to reach more customers.
E.g.: Amazon, Big-basket, blinkit.