Kellogg Segmentation

From the invention of flaked cereal in 1894 at the Battle Creek Sanitorium, to the present day operations producing cereals in more than 15 countries and marketing its products in more than 160 countries. Kellogg operates a centralised distribution network in Australia, with the main warehouse located at Botany in NSW and a small warehouse in Perth, W. A. The NSW warehouse supplies local & export customers in all states other than Western Australia and supplies stock to the Kellogg warehouses in Perth and New Zealand.

Packaged product is moved in pallet modules (approximately 32 cases each) from either the Botany manufacturing plant (cereals) or the Charmhaven plant (snack foods) to the central warehouse. All products are dispatched from the Botany warehouse in hand stacked shipping containers. The goods are then stored in the warehouses. Customer’s orders are received from all areas of Australia. The orders are checked to ensure products are available and that credit conditions are met. The order details are then transmitted to the appropriate warehouse where the order is made up and delivery to the customer is scheduled.

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Bulk materials, such as sugar and bran, are delivered in specialised vehicles, which link up to a blow line at Kellogg. The product is then pumped up to large storage silos from where it can be discharged for production Other materials, such as packaging and non-bulk raw materials, are delivered on pallets and taken off trucks by forklift for use in the production area Kellogg has been providing food to the Australian community since 1924 when production began out of rented premises in Chippendale. By 1928 Corn Flakes proved so successful in the market that a new plant was built at Botany. keting managers and brand managers take responsibility for each brand’s advertising and promotion activities. Working closely with the advertising agencies, they develop creative marketing ideas to communicate the benefits of Kellogg’s® foods for the consumer. In fact, the image that most people have of the Kellogg Company comes directly from their efforts. From the promotion and trade marketing teams come the familiar items of Kellogg promotions including packaging, premiums and point of sale materials that consumers see in grocery stores. These services are part of the total marketing effort and connect the strategies of marketing and

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