There has been some speculation over the years about the availability of Kellogg's cereal, as well as other top brand cereals. It seems that these competing companies are doing what they can to win your business over. However, it is important to understand that these companies do not always reach their market share targets due to other factors. In this article, we will look at some of the challenges that face the cereal industry, as well as the competitive advantage of the small-scale farmer and rancher.
First, in recent years, cereal sales have declined in response to cheaper products from generic companies like Salesco and Weardale, both of which have created breakfast cereal blends for people who want a more expensive product without paying the premium price. In response to this, Kellogg's released their All Day Breakfast series. While it has met with a lot of criticism, especially from health experts, one cannot overlook the fact that this cereal provides an excellent and economical breakfast option. So, one question we might ask is what is the hold up? Is this the end of the road for Kellogg's breakfast cereals?
No, it's not, but it may very well be the beginning of the end for this particular brand. Two of the biggest customers for Kellogg's products are Wal-Mart and Target. If you look at retail sales of cereal, you will find that Target is the largest purchaser, with Wal-Mart coming in second. As the competition increases, retailers are looking to alternative avenues. Many companies have looked to wholesalers as a way to increase their market share.
So, how does one increase his market share without increasing costs and shipping costs? One of the options available to them is to focus on value added ingredients such as whole grains and corn instead of fillers. The problem here is that corn and wheat are more expensive than many of the cheaper alternatives available. Also, it takes more processing steps to add these ingredients and to get them to where they need to be to sell in volume. This costs more money and, as a result, retailers are reducing their supply of corn and wheat.
This reduction in supply can reduce the profit margin for cereal. However, one thing that can offset some of this cost is an increase in product variety. By offering more varieties, cereal companies can take their share of the market. The increased market share gives them a larger percent of the market for those cereals. So, one of the key things to do is increase their cereal market share.
There are a number of ways to do this. One way is to source their cereal wholesale to a distributor that has access to the type of bulk cereal produced by Kellogg's. If the distributor can source this type of cereal then all of the savings you make will go back to you. Some of the other ways to increase your market share are to increase your marketing efforts and your promotions.
A great way to increase your distribution capabilities is to get an agreement with a grocery store chain. Grocery stores usually carry a large supply of cereals and a lot of them carry Kellogg's brand. By entering into a distribution agreement with the grocery store, you can get even more of their stock. You can also buy a huge amount at one time. Once you get even more, you can start selling it in bulk at wholesale prices.
When you buy wholesale you can save a lot of money. You can get the product delivered directly to your business or warehouse, which saves on your storage costs. By buying in bulk, you can get a much lower price than you could by buying alone. The most important thing to do is to make sure that you get the wholesale price. By knowing the wholesale price you are able to negotiate to get a better price than you would anywhere else. When you get even more of the product, you can either resell it to other companies or just use it as-is to replace whatever you just bought from the grocery store.