Cereals-Kellogg and Food Retailing - Research Paper Example

? Food Retailing Contents Introduction 3 Major commodity 3 Agricultural production 3 Food marketing 3 Value added components 3 Main ingredients and define 4 Supply Chain 4 Manufacturing/ processing 4 Storage/ Delivery 5 Supply chain of the company 5 Analysis 6 SWOT 8 Recommendation 8 Reference 8 10 Introduction The project aims to put more light on the food retail industry and discuss about the particular product and its importance in the food industry. It aims to gain a better understanding of agriculture production, the product and the food system. Thus for further understanding, the product that is chosen is cereals-Kellogg. Major commodity The major commodity is Cereal and the product to be discussed is Kellogg. Cereal forms an important part of the food industry. Kellogg contains cereal like fiber and whole grain. Cereals are the world’s most important sources of food industry. US is the largest production of cereals, the average production per 1000 metric tons in the US is 334,554 in the year 2001. The output of cereal globally is expected to be 2219 million tons in the year 2009, 2008 experienced a decreased by 3% (UN News, “UN News Centre”). Agricultural production Food marketing Value added components The value added components of the product Kellogg’s consists of some important cereals which are essential is day to day of life for all age group. Kellogg consists of cereals like whole grains, fiber, minerals and vitamins. Main ingredients and define The main ingredients in Kellogg’s contain fiber, whole grain, vitamins and minerals. Fiber is considered to be healthy for hearts. A diet which is high in fiber ensures all around wellness of the family. According to the Institute of Medicine, recommendation on fiber is mainly based on age and gender. But it seems like people fall short to achieve the goals as most of the people are losing out the benefits of fiber such as promoting good digestive and keeping the heart healthy. Therefore in order to help the people to overcome such issues, Kellogg have introduced delicious cereals such as All-Bran, Corn pops, Raisin Bran and other such products which aims to provide good and excellent sources of fiber (Kellogg’s, “Nutrition”). Whole grain has been defined by American Association of Cereal Chemists also known as A.A.C.C., whole grain consists of ground, intact, flaked or cracked whose main components i.e. anatomical components includes the germ, bran and starchy endosperm which are present in the same proportion as in intact caryopsis (Marquart & McIntosh, p.138) . Supply Chain Manufacturing/ processing The Supply chain encompasses all the activities which are associated with the transformation and flow of the goods from raw materials to the end users. In the global supply chain management the manufacturing and distribution facilities are scattered all around the world. Figure 1: Supply Chain of Cereals (Source: Radrigue, “The Geography of Transport Systems”) Storage/ Delivery The above figure explains the supply chain process that takes place in case of cereals. The cereals are processed and manufactured and then they are stored and distributed on to the stores. The cereals are packaged properly with proper label and then they are transported to the retailers. Supply chain of the company Kellogg’s is a well known brand and delivers all the essential requirements for the day to day activities of life through its product. The business primarily focuses on creation of profit but also keeping the environmental and social impact to a high importance. Kellogg’s believes that by acting responsible through supply chain through which the company aims to reduce energy as well as emission in the manufacturing and also distribution and improving the packaging of the product. Kellogg’s supply chain consists of three sectors which are the primary, secondary and the tertiary sector. The process includes a range of agencies which includes the quality, research, sales, purchasing, distribution and transport. As an essential part of the company business strategy Kellogg’s have realized the importance of transportation and storing the products effectively. It organizes transportation and storage of the materials and finished products in order to minimize the cost and other environmental impacts. In the supply chain process there includes various numbers of areas where the waste from manufacturing can be identified and eliminated. Lean production is used by Kellogg’s for their required outcome and desired result of eliminating waste (The Times 100, “The Supply Chain”). Analysis The SWOT analysis is done in order to know the organization strength, weaknesses, opportunity and threats of its product or the organization and by this analysis a company would know how to overcome its weaknesses and eliminate the risk of threat. It makes clears as to the level of competition from its competitors and so on. The following is the SWOT analysis of Kellogg’s. SWOT Recommendation It would be recommended to Kellogg’s as per the SWOT Analysis to adopt a pricing strategy of its own so that it can follow its own pricing strategy as per the requirements. It can reduce the prices of its product and also reduces the cost. Kellogg’s follows an effective supply chain system and ensure to reduce waste and protect the environment. It is recommended to extend the cereals lines or its product which it has not done for the past few years. Since the competition is tough the company should keep on introducing new products which would be beneficial to the customers and also keep it ahead from its competitors. Thus Kellogg’s should concentrate on its product and pricing strategy. Reference Kellogg’s. Fiber and Whole Grain. 2011. Nutrition. 5 March 2012 < http://www.kelloggs.com/en_US/the-benefits-of-cereal/fiber-and-whole-grains.html> Marquart, L. & McIntosh, G. Whole grains and health. John Wiley & Sons. 2007. Radrigue, J. P. Cereals Supply Chain. 2012. THE GEOGRAPHY OF TRANSPORT SYSTEMS. 5March, 2012 < http://people.hofstra.edu/geotrans/eng/ch5en/conc5en/cerealssc.html> The Times 100. The Supply Chain. 2012. Supply chain from manufacturing to shelf. 5 March 2012 < http://businesscasestudies.co.uk/kelloggs/supply-chain-from-manufacturing-to-shelf/introduction.html> UN News. Global cereal production continues to reach unexpected highs – UN report. No Date. UN News Centre. 5 March 2012 < http://www.un.org/apps/news/story.asp?NewsID=31024> Read More