A

Project Report

On

“Kellogg Distribution ”

At
Aparna Marketing

By

Mrs.Sanghavi Bhosale

Under the guidance of

Mr. Rohan Dahivale

Submitted to

Savitribai Phule Pune University

In partial fulfillment of the requirement for the award of the degree of

MBA

Batch 2018– 2020

Through

Rajgad Institute of Management Research and Development, Pune

 DECLARATION OF STUDENT

This is to declare that I have carried out this project work myself in partial fulfillment of
the MBA Program of Savitribai Phule Pune University.

The work is original, has not been copied from anywhere else and not been submitted to
any other University/Institute for an award of any degree/diploma.

Date: - 28 / 07 / 2019 Signature

Place:-Pune Name: Sanghavi Bhosale

 DECLARATION OF GUIDE

This is to certify that the work incorporated in this Project Report “Kellogg Distribution
in Pune” submitted by Mr. Sanghavi Bhosale is his original work and completed under
my guidance. Material obtained from other sources has been duly acknowledged in the
Project Report.

DATE SIGNATURE OF GUIDE

PLACE: PUNE
 Acknowledgement
It gives me great privilege to show my deepest sense of gratitude to those people without
whom this project would have never been complete. These people, not only mentored me
but they also made it a point that this project becomes a classy piece of study and its only
their creative ideas, their mentoring, their constructive criticism and guidance that has
made the project really meaningful and a well thought out piece of literature.

It’s a privilege for me to express my deepest sense of gratitude to Mr. Rohan Dahivale,
my Faculty Guide from Rajgad Institute of Management Research and Development, my
mentor and undoubtedly the mainstay behind this project. It has been an out and out honor
to work under him. His versatile viewpoint and understanding of the subject matter, his
guidance’s, his constructive criticisms and above all the level of motivation and faith he
showed really made me to stay focused and work logically during the course of the study.
I sincerely thank our honorable director, Dr. D. B. Bharati for their valuable support.

Secondly, this entire live project owes to Mr. Nikhil Kulkarni my Industry Guide, Sir I
would like to thank you for giving us such an wonderful opportunity to work under you, at
the onset of our corporate career, you provided me with a very dynamic and challenging
project and your mentoring and guidance, your viewpoint towards looking at a particular
situation in diversified manner, your constructive criticism really helped me a lot in
understanding the case and working towards it and I will be really honored to work with
you again.

Thank you all

Mrs. Sanghavi Bhosale

Table of Contents

Chapter Chapter Page

Number Numbers
Executive summary: 1 page
1.1Outline of the Study each
1.2Objectives of the Study
1.3 Scope of Study/Significance of
1 Study
1.4 Need of the Study
1.5 Limitations of the Study

Company Profile / Organizational Profile 4 pages

2
Research Methodology 5 pages
3
Theoretical Concepts 20 pages
4
Data Analysis & Interpretation 25-30
5 pages
Learning of Students (Findings) 1 page
6
Contribution to Host Organization 1 page
7 (Suggestion / Recommendations)

Reference 1 page
8
Annexure 2/3 pages
Chapter No.1

Executive Summary
_____________________________________________________________

Kellogg is one of the leading companies in providing food items

(especially breakfast items and convenience food) to its customers
located worldwide. The company was established in 1906 in USA
and till now, it’s been following the philosophy of ‘improved diet
and improved health’.

As the world's leading cereal manufacturer, not only has Kellogg’s

been serving its customers at a national level, it has also been
able to successfully establish a worldwide network globally. Since
1938, Kellogg’s has opened manufacturing plants in United
Kingdom, Australia, Canada, and Asia. Kellogg’s’ products are
now manufactured in 19 countries and are sold in approximately
160 countries. It produces about 40 different types of cereals and
snacks, such as Kellogg's Corn Flakes, Rice Krispies, Special K,
Fruit n' Fibre, as well as the Nutri-Grain cereal bars.

Supply Chain Sectors

A business’ supply chain involves a chain of all activities, from

product development to delivering the final product to the
customer. Kellogg’s has been following a socially responsible
stance at all levels of its supply chain. At Kellogg’s, there are
certain processes that are undertaken in its supply chain
management system, and these activities make sure that the
product manufactured is made available to its ultimate consumer.

The supply chain has been divided into three sectors by the
industry:

Primary Sector:

This is where the raw material is provided to the company from

around the world.

Secondary Sector:

This is where the products are made using the raw material
supplied and shipped to wholesalers or stored in warehouses.
Tertiary Sector:

This is a service sector that companies in the secondary sectors

use to optimize or benefit business processes.

Different departments and functions coordinate and work together

throughout the supply chain system, including purchasing, quality
check, sales, transportation and distribution processes. It is part of
the business strategy of any business to consider how they would
get raw material from the best available source and how that raw
material would be used to manufacture a product.

As Kellogg’s is involved in food items business, it falls under the

category of secondary sector. It is important for the company to
get the best available material and make sure that the product is of
standard quality. Much more care is required in maintaining the
supply chain for food items businesses and it is necessary that
products are stored and transported effectively without incurring
any loss in the quality of the product.

Kellogg’s: A Secondary Sector Business

Kellogg’s possesses an organized and well equipped

transportation and storage system to ensure the products do not
spoil and reach customer in fine quality. They follow the lean
production system (also known as Toyota production system or
Just-In-Time production) to streamline processes and eliminate
waste. Kellogg Planning System (KPS), a large-scale linear
program, is used for operations, production, inventory and
distribution system. It helps the company in optimizing production
and inventory costs and budgeting.As determined above,
 Kellogg's is a secondary sector business. It obtains its raw
materials of wheat, corn, cocoa, rice and sugar from primary
suppliers around the world. These materials help make over 40
different breakfast cereals and snacks to sell to customers through
the tertiary sector. It is a large-scale manufacturer and stores
sufficient stocks to meet customer orders.

Large-scale manufacturers like Kellogg's need to consider many

different aspects of their operations:

 Where to locate the business

This could be near to the materials' suppliers. For example,

power stations are often sited near to coal sources to reduce
delivery costs. Frozen peas factories may be near farms to
ensure the product is fresh. Kellogg's ingredients are grown in
many countries. It is more important for its manufacturing sites
to be near to distribution channels and customers so products
can reach shelves quickly.

 Size and scale

They need large factories with adequate space for equipment

and production processes. They also need to accommodate the
frequent delivery of incoming materials and outgoing finished
goods.

 Where and how materials and finished goods are to be

stored until needed for sale
 As part of its manufacturing process, Kellogg's packages products
ready for immediate distribution.

 Where its customers are

Kellogg's does not sell its breakfast cereals directly to consumers. It

uses intermediaries like wholesalers, supermarkets, high street stores
and hotels. Transportation and storage processes occur between all
stages of the supply chain.

For example, Kellogg's largest UK production plant is at Trafford

Park in Manchester. Initially, one of its storage depots was 15
miles away at Warrington, however, Kellogg's moved this storage
to a new warehouse site in Trafford Park, only one mile away from
its production base. This provides specialist energy-efficient
warehousing of stock 24 hours a day.
1.1OUTLINE OF THE STUDY
Regardless of your business model, this intensive program will teach you how to design,
develop, maintain and manage productive go-to-market relationships that optimize the
customer experience. You'll be guided by some of some of the most highly regarded
authorities in the field and learn to use a proven framework to synergize marketing and
sales efforts, explore emerging technologies for increased efficiency and build productive,
mutually rewarding relationships with channel partners and customers that create and
sustain your competitive advantage.
This program delivers high-value content and practical tools applicable across a wide range
of channel structures and associated challenges: Consumer goods and services companies
selling through wholesalers and retailers. Business-to-business firms working thsrough
independent distributors and sales representatives. Retailers seeking to improve efficiency in
an increasingly competitive marketplace. Intermediaries seeking to preserve their role in an
increasingly fluid channel structure.
1.2 OBJECTIVES OF THE STUDY

Having the right supply chain management mix ensures

businesses have the right product, in the right place, at the right
time. Kellogg's manufactures the right products based on their
research into consumer needs. It manages the distribution
channels to place its products in stores. Its focus on cost-effective
systems ensures its prices remain competitive. It works with
retailers to improve promotion of its products. But what about
inventory management?

Usually, businesses tend to keep inventory levels high so as to

meet uncertain and quick demands of its customers. However,
keeping high inventory is always costly for them. This is why many
retailers want to hold limited stocks of products to reduce
warehousing costs.

This is why Kellogg's uses a system called Just-In-Time to provide

an efficient stock inventory system. Just-In-Time means that just
enough products are made to fulfill orders and limited stock is
kept. Thus, it is imperative that Kellogg's gets the balance right at
each section of the supply chain. Late deliveries or the failure to
deliver due to a lack of products may make retailers buy from
competitors. Furthermore, Kellogg’s also aims to reduce lead time
to preempt uncertain customer demands and control excessive
costs.
1.3 SCOPE OF THE STUDY
1.4 NEED OF THE STUDY
1.5 LIMITATIONS OF THE STUDY

1. Since this is a special activity, there was some restriction to share information.

2. Summer internship project was confined for the period of 60 days only.

3. Some data is confidential due to we cannot take actual figure for to do proper research
study.

4. Time constraint was one of the major limitations.

Chapter No. 2

Introduction to the
Organization
_____________________________________________________________
2.1 INTRODUCTION TO ORGANIZATION:
2.2 ORGANIZATIONAL STRUCTURE:
Chapter no. 3

Research Methodology
_____________________
3.1. RESEARCH METHODOLOGY

3.2 DEVELOPING THE RESEARCH PLAN

3.3 PRIMARY DATA COLLECTION

3.4 SECONDARY DATA COLLECTION

3.5 RESEARCH PLAN IMPLEMENTAION, DATA COLLECTION &

ANALYSIS

3.6 DATA INTERPRETATION, FINDINGS & RECOMMENDATIONS

3.7 RESEARCH PROBLEM/STATEMENT OF PROBLEM

In the production company where this case is taken, PRZ is continuous manufacturing
process industry mainly having two types of powder are formed namely PZ60 and BCZ.
Both are manufacture from insert grade and mining grade respectively. Insert grade is
nothing but metal cutting tool which is of tungsten carbide material and mining grade
means mining tools, commonly called as dull bits. Monthly requirement of PZ60 is 32 Ton
and BCZ is of 18 Ton .i.e. total monthly production is of 50 Ton but it is difficult to reach
at 50 Ton in a month. So the problem is to find out the area of scope to meet the monthly
requirement with existing set-up.
3.8 Research Design

SN Parameter Description
1 Type of research Descriptive & Exploratory Research
2 Nature of Research Qualitative & Quantitative
3 Research Instrument Structured Questionnaire
4 Survey period 15 may to 15 July 2014
5 Type of product Telecom Service
6 Method of data collection Sample Survey Method
7 Universes Population of Dhankawadi
8 Population All People who residing at Pune city
10 Sample Elements People residing in Pune city.
11 Sampling Method Non Probability convenience Sampling and
proportionate stratified sampling.
12 Sources of data collection Primary and Secondary sources
13 Primary sources Structured questionnaire, observation,
interview and field survey
14 Secondary sources Book, Journal, Articles, Magazines
15 Measurable scale used Nominal, Ordinal, Interval scale.
16 Question Type Close ended, multiple Responses, Ranking
and Differential scales
17 Rating Scale Likert Scale
18 Data interpretation Though Graphs, descriptive statistics and
inferential statistics
19 Statistical Tool Percentage and Simple graphical method
20 Statistical software Package Ms Excel
3.9 RESEARCH PROCESS IN FLOW CHART
Chapter No. 4

Theoretical Background
_____________________________________________________________
4.1 REVIEW OF RELATED LITERATURE
4.2: THEORETICAL CONCEPTS
Chapter No. 5

Data Collection,
Data Analysis and
Interpretation
_____________________________________________________________
5.1

5.2

5.3
Chapter No. 6

Learning from the Project

(Findings)
_____________________________________________________________
6.1

6.2
Chapter No. 7

Contribution to the Host

Organization
_____________________________________________________________
7.1 RECOMMENDATIONS

7.2 CONCLUSION
Chapter No. 8

References
_____________________________________________________________
References
ANNEXURE