Situational analysis & integrated communication plan for Keells Super.

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Contents
1.0 Introduction...................................................................................................................................2
2.1 The organization culture has influenced on role of Internal Communication .....................3
2.2 How it has allocated the available resources for internal & external marketing. ...............4
2.3 The effectiveness of its Internal Communication....................................................................4
3.0 Characteristics of Keells Super Brand......................................................................................6
3.1 Developing a Creative Brief .......................................................................................................7
3.3 Brand Building..............................................................................................................................8
4.0 Communication Objectives at Keells Super ............................................................................9
4.1 Integrated Marketing Communication Plan. ..........................................................................10
4.2 Internal and External Stakeholder relationship.....................................................................13
2.0 Organization Summary.............................................................................................................14
List of Reference, Bibliography and Web sites............................................................................15
Appendix 1 ........................................................................................................................................16
Appendix 2 ........................................................................................................................................17
Appendix 3 ........................................................................................................................................18
Appendix 4 ........................................................................................................................................20
Appendix 5 ........................................................................................................................................21

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To - Senior Management
From - Marketing Executive
Subject – Situational analysis & integrated communication plan for Keells
Super.
Date - 22.11.2015
1.0 Introduction
This report is prepared in order to assess the productivity of the currently
implemented communication strategies and based on the findings, to outline
the integrated communication plan of Keells Super for the next financial year.

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2.1 The organization culture has influenced on role of Internal Communication
Internal
Communication
Channel
Objective
Audience /
Frequency
Type of Information
exchange
-Letters / Memo
To inform/
Convey a
message
-All Internal User -Mostly HR related information
-Medium
Frequency-
-Contracts / Promotions
To inform/
Convey a
message
-Internal competitions
-Thought of the day
- Motivational Messages
-Health tips
-CSR
-Inter-company vacancies
-Internal Emails -All Internal User -Key performance recognitions
-Employee designation
Changes
-Special product promotions
-Birthday Reminders
-Inter Company Sport Updates
-High Frequency- -New Appointments
-Notice Boards
Convey a
message soon
-All Internal User -Upcoming events/ Promotions
are posted-Low Frequency-
-Intranet
To inform/
Convey a
message
-All Internal User -Inter-company vacancies
-Thought of the day
-The group recognitions and
rewarding
-Medium
Frequency-
-CSR
-Townhall meeting To inform
-All Internal User
-Communicate the key
Messages to Internal staff
-Medium
Frequency-
KS internal communication is mainly focused on effectively managing the cultural shift the
company is undergoing due to the recent management change. Internal communication is
playing a vital role in getting the employee aligned with the new corporate identity and
also to make the employees more engaged with achieving the organizational goals in order
to increase the productivity and deliver better customer experience. Internal emails are
used by all the employees to communicate with each other as well as the customers and
other external stakeholders. Management uses the internal email service to officially issue
special notices and circulations. As employee newsletter is displayed at the main notice
board within the premises and also emailed to all the employees on a weekly basis and
contains internal
competitions, motivational
messages, health tips, key
performance recognitions,
employee designation
changes, special product promotions etc.

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2.2 How it has allocated the available resources for internal & external marketing.
KS has currently assigned the responsibility of internal communications to management,
marketing and HR division and has assigned resources and funding towards internal
communications from each divisional fund. A graphic designer is assigned to create
content and maintain the newsletter and the notice boards as well as on-premises signage.
An investment has been made on new CRM implementation with enterprise social network
and is expected to increase employee conversation, productivity and customer satisfaction.
Effectively implementing and managing change within KS needs good investigational and
analytical skills as well as expertise since the business model of the overall company is
complex and highly customer oriented. The change managers should be well organized
and should possess good interpersonal skills to properly coordinate with all the versatile
employees and
divisions. Corporate
management needs to
be aligned with the
change management
process with leadership
and strict enforcement
where needed.
2.3 The effectiveness of its Internal Communication
Employees are also encouraged to find their respective balance of “life” and “work” whilst
the KS, at a corporate and at a business level, encourages and facilities opportunities to
find the right balance. KS creates opportunities to realize employees’ work-life balance
through its Sports Club, Volunteer program for CSR activities that offers its employees the
ability to look beyond work and reach the community and embrace and engage in areas of
personal interest.
KS is continuously working towards introducing
innovative and effective ways of employee
communication and employee awareness. The
importance of communication top-down, bottom-up,
and lateral in gaining employee commitment to
organizational goals has been conveyed extensively through various communications
issued by the Chairman-CEO and the management. Whilst employees have many
opportunities to interact with senior management, the Group has created formal channels
for such communication through feedback as listed below.
KS recognizes that HR is an appreciating asset bringing continuing returns and constitutes
the catalyst for world class performance. As an organization having the Vision of building
businesses that are leaders in the region, all processes and systems seek to unleash the
potential of all its assets, including that of its people, to the optimum. The philosophy in the
KS is to be an “Equal Opportunity Employer”; and does not discriminate on the basis of
gender, race, nationality, age, social origin, disability, religion, or any other basis. The
performance centric culture, which has been a cornerstone of the group’s success, ensures
that employees performing at the same level will be treated alike. As another aspect of
continuous employee engagement, all employees undergo regular appraisals to receive

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feedback on their performance. The performance management policy requires bi-annual
formal feedback to be provided to the executive cadre and to all others at least once a year.
While formal feedback is a scheduled occurrence, the performance-centric culture of the
JMSL encourages and facilitates constant and regular employee feedback at all levels.
Following such surveys, JMSL engages focused discussion groups in reviewing the
highlighted areas of concern and considers the discussion JMSL’s suggestions where
relevant and appropriate. Experience has confirmed that this has contributed to significant
improvements in the employee perceptions of the KS particularly in respect of practices,
policies and behaviors that build credibility, respect and fairness.

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3.0 Characteristics of Keells Super Brand
Keells Super brand has characteristics of a widely expanded retail network is one of the
leading supermarkets in Sri Lanka. Keells Super partnered with a number of local and
global industry leaders and operates as the leading supermarket chain for those local and
global brands within the company which give the Keells Super brand
Brand Identity Prism model of the Kepferer’s (2012) as below;
 Physique - Keells Super brand can be rated the second most valuable Brand in Sri
Lanka and the most valued retail brand in the island according to research
conducted by Brand Finance Lanka. This brand can be points as trustworthy,
consistent, ample range of products provider. This includes the high competence,
high service, high built quality and high durability of the products and the services
which Keells Super offers. Keells Super has been recognized for its modernization
in taking super marketing to the masses. It has also earned the highest Brand
Equity. Keells Super has successfully promoted its offerings based on this high-end
premium physique.
 Personality of the brand can be noted as active, service oriented, constant ample
ranged intellectual brand high level of veracity. By maintaining this personality,
company has managed to battle off a number of cost leaders, new entrants, etc.
and remain as the mist favored chose which the customers can place their trust
upon.
 Keells Super brand is associated with local and global industry leaders such as
Hayley’s, Unilever, Coca Cola, Elephant House, Nestle, etc. as Keells Super
premium customers which foe on to show the strong Relationships Keells Super
with different kind of stakeholders. These highly valued relationships are used in all
kinds of communication activities to reinforce the brand image which the most
competitors does not have to lavishness to,
 The Culture of Keells Super brand drives from the organization itself which focuses
on customer experience above all else which includes the quality standards of the
brand offering and the operational processes as well as the people. Skillful
employment together with high-end information and the technological tools along
with optimized processes help Keells Super to deliver a better customer experience
than all of its competitors.
 Keells Super customers tend to identify themselves are patronizes of the cutting
edge service providers and as efficient users of energy in relation to the brand while
projecting premium satisfaction. The ‘premium brand’ perception (Reflection) helps
differentiate the brand with majority of the competitors with a promise of quality
guarantee.
 Lastly, the Self-Image the customers of Keells Super conceive in relation to the
brand creates a major competitive advantage for the brand. When a customer
choose Keells Super brand, they feels as part of the three decades of service
excellence and pioneering achieved by the company

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3.1 Developing a Creative Brief
The business to business and sales business to customer, word of mouth as the most
important branding method could be used as the active branding method of Keells Super.
Based on the same, the customer facing divisions of the company which are ample range
of products, customer care, nexus promotions, loyalty programs, marketing campaigns, and
special services divisions could be used for branding communications.
As analysis on the current situation of the Keells Super brand can be seen sections [3.1]
of this report. It is highly important to identify the customer perceived value of the brand’s
value proposition and the current customer insight of the Keells Super brand. Identifying the
major strength and weakness of Keells Super would help to build upon the strengths and
minimize the effects of the weakness on the campaign.
Defining the objectives would be the next step. Keells Super’s vision is about Improve the
quality of life of the nation giving affordability to all. Marketing objectives for the upcoming
financial year are to grow and empower this category of customers to being ‘advocates’ of
the supermarket, increase annual income by 21% through strengthening relationships,
awareness and loyalty with the existing customers, increase the acquisition volumes of the
low active customers, and acquire new customers. Communication objectives are to focus
achieving these marketing objectives while staying aligned with the vision.
The target audience in this case is dual as the branding method is through B2C and B2B.
It is important to mention the strategies used by Keells Super in achieving the desired
growth and brand development such as the brand extension, market penetration,
segmentation, targeting and the brand positioning compare to competition. The creative
developers can used these strategies to align the creative communications appropriately.
The KPI’s are to be defined based on the monetary objectives as well as based on the
DAGMAR model (Colley, 1961). The times frame of the whole campaign to be decided
based on the campaign budget allocated and authorities by the corporate management.
The final approval will be given by the Chairman and the MD of the company.
The message which to the communicated is of grave importance, as discussed above the
focus area should be in ensure the anticipated messages and the delivered message are
same as the human factor of the brand communication method discussed can influence the
end message as a result the message should be clear and should communicate the
positioning of the brand clearly to the targeted audience using applicable collaterals online
and offline. When developing the appeal of brand communications, it is important to keep
in mind the instructive level of the audience and the nature of the overall value proposition.
The product offered through the Keells Super brand are highly customer centric therefore a
rational appeal such as communication, slice of life, demonstrational and comparative
appeal would deliver the message to the target audience.

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3.3 Brand Building
This section should be summarizing how customers and staff see our overall brand. The
brand reviews need to give a complete picture of the brand. The section together with the
information on range, future trends, customer profile, changing consumer habits,
community & trust, detail on the shopping trip and focus on understanding the key issues
will ensure the brand review helps to deliver the right inputs into the brand plan.

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4.0 Communication Objectives at Keells Super
Keells Super vision is Building businesses that are leaders in the region. The corporate
vision is to “building businesses that are leaders in the region” the enduring mission “to
improve the quality of life of the nation, giving affordability to all”. Corporate objective is to
develop a business with sales of 100 billion per year (Big Hairy Audacious Goal). This
includes increasing employee satisfaction and employee lifestyle, strengthen relationships
with existing suppliers and build relationship with new suppliers while increasing the total
value provision for all the suppliers, achieve the annual turnover growth 20% billion.
Annual marketing objective of Keells Super for 2015 are defined to match the corporate
objectives. Foremost ones are to be precise the volume of the low active customer sales by
80% average of 20% of overall sales should be from new acquisitions; gain 15%
approximate market share; add at least one more product supplier targeting the mid-range
markets; customers to actively engage with the brand through social media, email and the
CRM solutions; maintain a minimum breakeven ROI with every campaign; achieve over
90% customer satisfaction rating; differentiate & strengthen the existing positioning and
brand value.
Keells Super’s current Communication objectives should be looked ahead achieving
marketing objectives
 Strengthen the perceived brand image with 50% target market during the year.
 Provide information about the brand value and offerings.
 Inform of new product launches and product upgrades.
 To successfully penetrate the retail industry market by generating awareness and
brand building preference by 30%
Envisioned Future objectives
 The customer’s first choice for affordable everyday items
 Develop food and non food ranges that are the benchmark for Choice, Simplicity
and VFM
 Operate express stores to Hypermarkets, getting right for our communities
 Serve first for customers
 Will be the most loved retailer.
Keells super is expecting to see an increase in inquiries, leads, customer engagement
through telephone, email and social media, number of lately acquired and reactive
customers, increased sales volumes for low performing customers. In order to achieve the
above objectives while enhancing the corporate reputation Keells Super has identified a
few communication tools.
Social Media is one of the major important tools that will be used to achieve the above
objectives and increase the brand reputation as it’s one of the imminent tools as well as it
will bring high ROI to the company. Keells Super enables two-way conversation on social
media and its customers which helps to build customer satisfaction, brand trust, perceived

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reliability of Keells Super, loyalty of the customers as well as helping to increase brand
conviction and conversion.
Advertising - Keells advertising in the past has been arbitrary. However KS still employs
this method. The reason this method is being used is because in the past, Keells Super has
not really had a plan about its future marketing campaigns. These campaigns have always
been ad hoc based on what other promotions its competitors use. The effectiveness is
measured in two ways, by measuring the difference of sales when compared to the
previous month’s promotion, or by measuring the sales versus the previous years. KS is
now trying to come out of this method of work since ad hoc promotions just portray a weak
company that can only copy its competitors and not come up with anything original. More
planning is currently taking place for 6 – 12 months in advance so that mistakes of previous
campaigns can be studied along with the mistakes of its competitors and develop a more
streamlined and effective campaign.
In the case of Keells Super, industry magazine advertising, business directory advertising,
online PPC advertising, hoardings, street sign advertising, digital display advertising, POS,
and newspaper advertising can be identifies as feasible.
PR is an important part of the marketing mix for consumer brands as it serves to educate
the customers on new products and new services as well as establishing a level if trust in a
brand.PR strategies used by Keells Super is Newsletter publication, online blog
publications, exhibition, special events and sponsorships.
Direct marketing is yet another tool which can be used in the forms of email marketing,
direct mailing, SMS marketing, corporate website and landing pages, etc. By using a
marketing automation solution either separate or integrated within the CRM is important in
order to ensure the audience received the one message throughout all the communication
channels which in return adds value to the Keells Super brand and its corporate reputation.
4.1 Integrated Marketing Communication Plan.
This is a concept of marketing communications planning that recognizes the added value of
a comprehensive plan that evaluates the strategic roles of a variety of communication
disciplines – for example, general advertising, direct response, sales promotion and public
relations – and combines these disciplines to provide clarity, consistency and maximum
communications impact.
“Marketing Communication Planning Framework (Fill, 2013)”
 Context Analysis:
The purpose of compiling a context analysis is to determine and understand the key
marketing and communications drivers which are likely to influence (or are already
influencing) a brand (or organization) and either help or hinder its progress towards

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meeting its long term objectives. Existing Porter’s Five Forces and SWOT analysis, PEST,
Current Marketing Strategies, and STP (please refer to the appendix)
 Promotional Goals & Positioning –
Corporate goals
1. One of the major corporate goals of Keells Super is to successfully penetrate the
Sri Lankan retail market by generating awareness and brand building preference by
80%.
3. To stimulate new life insurance accounts by 15% by offering incentives to life
insurance agents.
Communication goals
1. Building awareness of town programs, charity programs among the target
audience.
2. Encouraging increased stakeholder participation on specific issues
Competitive positioning
Differentiate from competitors by offering superior customer service and to be the
customer’s first choice for affordable everyday items.
Further discussed in [3.1]
 Promotional Strategies (3Ps)
Push strategy
 The main aim of the Push strategy is to get the product into the hands of buyers
with little advertising. This strategy involves personal selling to acquire a customer.
Useful for manufacturers seeking distributor for product promotion. Creates product
exposure in potentially large retail environments. Push strategy is not suitable for an
insurance company.
Pull strategy
 With Pull strategies, marketing efforts are ultimately directed at the consumer or end
user and are loaded with a lot of promotional offers to support the campaign. If
companies add on advertising into this strategy then the cost of marketing
associated with this approach can usually be quite high.
Profile strategy

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 In profile strategy, it is important that the awareness, perception and attitudes held
by stakeholders towards the organization need to be understood, shaped and acted
upon. This can be accomplished through continual dialogue, which will lead to the
development of trust, commitment and a strong relationship. This is necessary in
order that stakeholders act favorably towards the organization and enable strategies
to flourish and achieve the business objectives.
 Coordinated Promotional Mix - Discussed in [4.0]
 Scheduling
 Resources
 Implementation, Control and Evaluation.
Extended
Mix
Deal Seekers High Rollers Corporate
Product
Stock availability on items
on discounts and
promotions
Product range of high
end brands
Overall quality of
items/product range
High quality on
freshness for
vegetables, fruits, meats
and seafood…
Place
45 outlets & expanding Convenience of parking Efficiency of delivery of
vouchers/ Hampers to
office premises
Online purchasing with
door step delivery
Price
Lowest price in
comparison to
competitors on certain
produce range
Willing to pay for quality,
choice and exclusivity
Require value for money.
Price is not the key focus
Price skimming method
is used
Promotion
Advertising- Television,
Radio & Hoarding
Print Media- Weekend
newspapers both in
Sinhala & English
medium, Magazines
Discounts on the
minimum of
LKR500,000/- worth
vouchers purchased
Sales promotions-
Discounts & rewards such
as Super Saver, Best
Deals, Nexus-discounts
on essential items etc.
Sales promotions- Card
for birthday along with a
fruit basket
Special discount for
Nexus Loyalty &
corporate cards
A2 boards/leaflets
displaying the relevant
offers/Point of sale
material/Tabloid
Points and benefits for
Nexus Loyalty card
People
Cashier incentive
programs to keep the staff
motivated at the counters
making less errors
Attracting, developing,
motivating and retaining
well trained Supervisors
to handle this customer
segment
Training outlet
Managers to understand
the importance of building
relationships with this
segment of customers
and constantly visiting
and keeping informed of
any special discounts
Well trained Cashiers Paying reasonable
wage, and roster
adequate days off
without taxing staff with

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4.2 Internal and External Stakeholder relationship
Internal stakeholder
From a social perspective the Keells Super identified likely impacts to its internal
stakeholders – its workforce, and to its external stakeholders – customers, suppliers and
the community. While risks and impacts vary for each stakeholder group, the Keells Super
identified areas such as attracting and retaining necessary skills, cultivating good labour
relations, ensuring product responsibility, health and safety of customers as key focus
areas, in order to mitigate the impact of these risks.
(Refer appendix 6)
over time
Process
Focus on the mechanism
by which the service is
delivered including
business policies for
service provision
Standardization Key-account-
management
Systems to be updated on
the relevant discount
percentages
Complaint monitoring
system
First-time-right service
Customization Corporate customer
surveys.
Physical
Evidence
KS logo is a unique to
identify the Super market
Cleanliness of KS Vouchers with clear
expiry date and
conditionsUniforms of the KS staff (Vegetables, Fish &
Meat counters display)
Gondola displaying all
items on discount
Web site for online
shopping and delivery

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2.0 Organization Summary
Jaykay Marketing Services (Pvt) Ltd (JMSL) is wholly owned subsidiary, under which the
Keells Super (KS) supermarket chains in the country which has been in operation for the
last 20 years and has focused on offering the best in range, quality products and services
to their customers reaching out to a cross section of Sri Lankan consumers. KS
supermarket chain is fully owned by the John Keells Holdings group, a highly diversified
public quoted conglomerate with a rich history and heritage in Sri Lanka. KS’s culture of the
organization is build upon the organization norms, believes, the corporate vision & mission
etc as below;
The only Multi-Merchant loyalty Program in the country which focuses on key lifestyle of KS
consumers touch points of the Sri Lankan customer is Nexus
Networks. This acquired 100% ownership for a consideration of
Rs.48 million
The retail
industry is
combination of B2B and B2C behaviors.
B2B comes in when the suppliers sells
goods to the supermarkets. However, the
primary nature of the business at the KS is
selling and serving the end customers. This
B2C is not only selling of products but components such as service, freshness, quality also
a part of such customers. This market can be identified as direct selling or direct marketing,
whereas the product is taken for final consumption by the customer.
Currently the market share is dominated by Cargils due to the
high number of outlets opened island wide. There is a close
competition between Keells & Arpico. Arpicos’s key focus is on
developing a unique niche in hyper market, attracting the high
basket value customers in the main cities of Sri Lanka. When
comparing the prices of general FMCG’s across it should be
noted that prices are largely similar and the differentiation
comes through the product-promotions and other special promotions run by each
supermarket. As such, the convenience factor of Arpico offering a much wider range of
goods under one roof and ample parking facility provides a distinct advantage from its
competition.
Determinant Particulars
Core Purpose Improve the quality of life of the nation giving affordability to all
Values Excellence, Caring, Innovation, Integrity and Teaching Others
Vision Big Hairy Audacious Goal (BHAG)
Turnover LKR RS 18 Billion
Profitability LKR RS 237 Million (Before the Tax) 372 Million (After the Tax)
Number of Stores 46 Supermarkets
Number of Employees 2000 Employees
Nexus Membership
Base
280,000 Members
Wide Range of
Products
Groceries, essentials, meats, vegetables, fruits, bakery, diary,
household, toiletries & home-ware such as liner, books,
stationary, pharmacy & beauty at selected outlets
Segmentation,
Targeting & Positioning
The middle and upper classes of Sri Lanka where the main
focus on the low prices on essentials which are mainly targeted
at the mass-market. (Deal Seekers, High Rollers & Corporate)

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List of Reference, Bibliography and Web sites:-
Reference
1. Egan, J: Relationship marketing- third edition, exploring relational strategies in
marketing (Chapter 2 – Relationships in marketing)
2. Egan, J: Marketing Communications
3. Colley, RH, (1961) Defining Advertising Goals. New York, Associate of National
Advertisers
4. Fill, C. (2013) Marketing Communications. 6th
edition. United Kingdom, Pearson.
5. Kaplan AM., Heinlein M (2010) Users of the World, unite! The challenges and
opportunities of social media. Business Horizons Vol53 (1), [online];
http://dx.doi.org/10.1016/j.bushor.2009.09.003 (Accessed on 19 November 2015)
6. Kepferer. JN. (2012) the New Strategic Brand Management: Advanced Insights and
Strategic Thinking. 5th
edition. London, Kogan Page.
7. Kotler, P and Armstrong, G (2011) Principles of Marketing. 13th
edition. New
Jearsey, Prentice Hall.
Web Sites
http://www.keellssuper.com
http://www.assignmenthelp.net/assignment_help/the-ladder-of-loyalty.php
http://www.wikipedia.org
http://www.keells.com/super-markets.html
www.facebook.com/Keells.Super
http://www.keells.com/loyalty.html
http://www.nexusmobile.lk/
http://www.keells.com/annual-reports.html
http://www.elephanthouse.lk/annualreport/CCS-Annual-Report-2014-15-Final.pdf

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Appendix 1
Our people vision is based on 3 building blocks; inspired people, caring for people and
leadership. These building blocks translate to our HR vision of “More than just a
workplace…”

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Appendix 2
1. SWOT Analysis – Keells Super
According to Armstrong (2004), “SWOT analysis a strategic planning technique used to
appraise the strengths, weaknesses, opportunities, and threats concerned in an activity or
in a business venture”. Author has used the tool to understand the inside of Lucky and to
analyses the internal Environment of the organization.
Strengths
Strong leadership held in the corporate level and
among the strategic employees
Well organised sales and distribution network to carry
put promotional activities.
Maintain technical improvement in the production
level.
Favourable research and development capabilities.
Setting up management information system.
Keells Super is renowned from the millennium year
2000s.
High trust among the general public due to the
existence of the business and quality
standards maintained over the years
Opportunities
Free trade agreement with countries.
New market opportunities in north east
area due to the end of war.
Less land and labour resources in north
east areas.
Boost in the economic growth.
Unmapped markets
Less strict regulations related to investors.
Weaknesses
Depending on single supplier for essential raw
materials creating supplier sovereignty.
Limited land resources in Colombo and suburbs.
Unavailability of energy saving approaches.
Poor waste disposal techniques.
Lack of cost reduction approaches.
Threats
Possibilities of foreign markets entering the
market.
Some products constraints with close competition
due to pricing strategies.
arket dominants may enter and cater the market in
particular products and promotions.
SWOT Analysis

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Appendix 3
2. Porter’s 5 forces of Keells Super
 Threats of New Entrance
The threat of new entrance is very low in retail industry. The industry is very mature and it
has successfully reached economies of scales.
 Time and cost of entry
 Specialized knowledge
 Economies of scale
 Cost advantage
 Technology protection
 Barriers to entry
 Bargaining power of Suppliers
These requirements connect to buyer and supplier relationships in Keells Super.
Suppliers, who are powerful, can influence on the retail industry.
 Number of suppliers
 Size of suppliers
 Uniqueness of service
 Ability to substitute
 Cost of Changing
 Bargaining Power of Buyer
The buyer power affect customers have on a Keells Super. Generally, buyer power
difficult to break, the relationship to the producing industry is near to economist term
which is a market has more suppliers and one buyer.
 Number of customers
 Size of each order
 Differences between competitors
 Price sensitivity
 Cost of changing
 Threat of Substitute
Substitute products refer to additional industries because products demand affected by
change price of a substitutes product and more substitute products become available.
 Cost of Change
 Substitute performance
 Intensity of Rivalry among Competitive

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Traditional economic model, competition among the Keells Super drives profits to zero.
However, competition is not perfect and firms are not unsophisticated passive price
takers.
 Number of Competitors
 Quality difference
 Switching costs
 Customer loyalty

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Appendix 4

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Appendix 5
Strategies Tactics
Actions
Internal strengths Internal weaknesses
1. First & only supermarket
to offer online services &
m-commerce
2. Efficient, well trained
friendly staff
3. Loyalty card (Nexus)
which gives KS a loyal
customer base
4. KS is a subsidiary of a
leading blue chip
conglomerate
5. Spacious isles for easy &
convenient shopping
6. First supermarket to
introduce gap scanning
7. Efficient category &
supply chain
management
1. Manpower shortage at
store and operational level
2. Perceived conception that
KS prices are higher than
competitors
3. Backward integration –
KS’s biggest competitor
Cargils directly purchase
from the farmers hence are
able to give a better
discount than Keells on
fresh products
4. Diversified into the clothing
& accessories which is a
failure
5. Storage issues at outlets
External opportunities SO strategy WO strategy
1. Growing sector of
restaurants/ hotels require
a bulk selling channel
2. Investments by foreign
governments in agriculture
help KS to improve fresh
range/ new sourcing line
3. Increase use of social
media which gives the
opportunity to create
brand awareness in a cost
effective way
4. Infrastructure development
gives the opportunity to
venture out of Colombo
city
 Use the parent
company’s resources to
promote the brands and
services
 Better discount structure
for the Nexus loyalty base
 Target potential
customers and increase
market share
 Beat competition and offer
best prices through direct
sourcing from farmers
 Recruit staff with the
correct attitude
 Negotiate better margins
from supplier and offer the
lowest prices to consumer
External threats ST Strategy WT strategy
1. Competition from
government funded
supermarket (Budget
allocation for Sathosa
expansion approx. 500
million)
2. VAT of 12% for entities
earning over Rs.500
million
3. Indications of possible
 Although KS is the
supermarket innovator to
Sri Lankan market,
Cargils provides lowest
prices to acquire
customers
 Finally health but there is
low social media
engagement which needs
attention.
 Due to followers take the
lead in product benefits,
switching behavior of
consumers are high.
 When government
increases the tax, burden
is passed on directly to
consumers

[CIM-IC-DEC15-38456903]
22 | P a g e
increases in electricity
tariffs affect margins

Situational analysis & integrated communication plan for Keells Super.

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Situational analysis & integrated communication plan for Keells Super.