[Document title]

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Assignment Brief

Scenario:

• ODEL is Sri Lanka’s largest fashion retailer with an unrivalled retail presence in the local
and international branded apparel sector. ODEL has an integrated portfolio of over 120
international fashion brands as well as a range of homegrown fashion labels retailed
across 33 ODEL stores, 47 exclusive branded outlets (EBOs) and 4 multi-brand Galleria
outlets in Colombo and other metropolitan regions. From design to distribution, ODEL
has end-to-end capabilities across the fashion value chain.

“Understanding marketing concepts and role of marketing as a business function”

• As a newly recruited Trainee in Marketing Department at ODEL, you are required to

investigate ODEL based on the various definitions and theories you have learnt about
Marketing and its importance in business, explain how would current and future
environmental changes / trends impact the role of marketing in business organizations.

• Critically assess the role of marketing in achieving company goals with a discussion on
how the mentioned issues would impact the overall organization; your views on
measures taken by the company and justification of your suggestions for improvement.
Executive Summary
'Odel' is a household name in the fashion and accessories sector, generating record footfalls of
both local and foreign clients. Odel PLC was purchased by Softlogic Holdings PLC and its
subsidiary, Softlogic Retail (Pvt) Ltd, in 2014. Softlogic Holdings PLC is a fast-growing
conglomerate in Sri Lanka, with revenues of over USD300 million throughout its operating
sectors of retail, information technology, healthcare, financial services, automobiles, and leisure.
Softlogic's apparel cluster has Sri Lanka's largest collection of worldwide branded garments and
fashion accessories. These branded items complement Odel's product line, giving customers a
one-of-a-kind shopping experience.

The main purpose of this study is to understand marketing concepts and role of marketing as a
business function. Odel believes in and work hard to ensure that the product, ambiance,
management, and innovation are not only effective but also evolving. This mindset remains the
driving factor behind their achievements. The company is built on a simple but effective
philosophy: a never-ending search for the best products and services, combined with exceptional
customer service that ensures client happiness and loyalty.
Table of Content
1.0 Background of ODEL PLC
1.1 History
1.2 Vison, Mission, Values
1.3 Organizational Structure, Products and Services
1.4 Achievements
1.5 Competitor Analysis
1.6 ODEL Marketing and Promotional tools

2.0 Marketing Environment Analysis

2.1 External Environment Analysis
2.1.2 Perceptual Map
2.1.2 Porters Five Forces
2.2 Internal Environment Analysis
2.3 SWOT Analysis

3.0 Applying Marketing Concepts to ODEL

3.1. Needs, Wants, Demands
3.2 Markets
3.3 Overview of Marketing Process
3.4The roles, responsibilities and competencies required in marketing

4.0 ODEL Organization Structure and different functions

4.1 The different roles of business units and the interrelationships
4.2 Societal Marketing concept

5.0 Recommendations and Conclusion

6.0 Reference
1.0 Background of ODEL PLC
1.1 History

ODEL PLC was founded in 1990 by Mrs.Otara Gunawardene who saw the potential of the
country’s liberal economy. The island was suddenly becoming a center of global fashion brands.
This was a time when the cheap labor market and ready-made garments became an essential part
of the island's economy. Due to the rapid growth of production, factories have started to
overflow their surpluses. This led to Otara Gunawardene selling the surpluses of factories in
addition to her modelling career. Her store is now a 36,000 square foot large department store.
And her passion for animals has turned her full-time job into a passion.

1.2 Vison, Mission, Values etc

During the 1980s, Sri Lanka's fashion industry was a far cry from what was happening in other
countries. The lack of international brands and prominent stores made it difficult for local
consumers to shop for quality products. The concept of Odel was not about buying clothes.
Instead, it was about making a lifestyle choice that's made for today's consumers (newsinasia,
2016). Its vision is to inspire the world and mission is to provide a complete mind, body and soul
experience as the premier fashion and lifestyle retailer promoting sustainable and unparalleled
levels of retail experience.

1.3 Organizational Structure, Products and Services

Odel PLC is a multi-channel retailer that offers a variety of apparels, including tops, t-shirts,
dresses, shorts, jackets, and trousers. It also offers a variety of accessories, such as hair
accessories, belts, sunglasses, watches, and accessories for both men and women. This company
has branches in Rajagiriya, Moratuwa, Maharagama, Kohuwala, Panadura, Colombo and Mount
Lavinia, Sri Lanka and the headquarters is located in Rajagiriya, Sri Lanka. Odel PLC is a
holding company that engages in the leasing and management of retail spaces, the manufacturing
of garments, and the supply of branded apparel. It also provides information technology
infrastructure and services. It operates in two functions, namely, Fashion Retailing and Property
Investment.
1.4 Achievements

Otara has long been interested in giving back to the community on several levels, including for
people and animals. Her individual dedication has now expanded to a bigger scale. Otara and her
team believe in the ability of business to do good and continue to work actively in this regard,
using Odel's status as a catalyst for change. Many organizations have praised her work and
bestowed titles on her, including the Zonta Award for "Woman of Achievement" (2002), the
SAARC Woman of Achievement Award (2000), the Ten Outstanding Young Persons (TOYP) of
Sri Lanka Award (2000), and Entrepreneur of the Year (2000). (2000).

1.5 Competitor Analysis

Thilakawardena Nolimit Kelly Felder

Company Company Thilakawardhana is Nolimit features a Kelly Felder was
Profile Highlights founded on the variety of created in 2007 and
concept of a Sri Homeware and is based in
Lankan department Lifestyle products. Colombo, Western
store that is easily Its showrooms, are Province.
accessible. and have positioned in
expanded our product major cities
line to include throughout the
garments, island.
accessories,
appliances, mobile
devices, and more.
Key Price and Easily accessible Quality of the
Competitive diversification of branch network products
Advantage products and services
Target Marketing Large market Relatively large Same target market
Market Information including all sectors market than as ODEL
of the society based ODEL
on economic and
social criteria
Market Share HIGH MEDIUM LESS
Marketing LESS MEDIUM HIGH
Strategy
Pricing Product LESS MEDIUM EQUAL
Distribution Information HIGH LESS EQUAL
 Channels
Strengths SWOT More target audience, Price, Wide Attractive Store
Information Pricing Branch Network designs, High
quality products
and services, High
ratings on review
websites
Weaknesses Quality of the Quality of the Limited
products, Less CSR products Limited diversification of
services products and
services, Strong
Existing
competitors,
Limited
Geographical reach
Opportunities New Services More Online Brand awareness,
(mobile, logistics) engagement More online
engagement
Threats Lack of technology Demographic Strong competitors
Social deviance like Odel and
due to Muslim Gflock
dominance in the
executive branch

According to the research, ODEL has a significant competitive edge in a number of areas,
including superior product, brand equity, globalization, assets, and business contacts. In
comparison to its competitors. However, it is clear that the other two competitors have
experience with pricing tactics, and ODEL will need to devise a strategy to appeal to that
market.

1.6 ODEL Marketing and Promotional tools

Promotions, social media interactions and Advertising are the main tool of marketing and
promotions of ODEL. They introduced loyalty card in propagating repeat purchases. The annual
ODEL fashion show is another way they promote their latest trends, new collections of the local
and international brands. in addition they conduct special campaigns on Facebook Twitter and
Blogger to promote Animal day, Mother’s Day, Father’s day, Awrudu, Christmas and
Halloween.
2.0 Marketing Environment Analysis
2.1 External Environment Analysis
2.1.2 Perceptual Map
Perceptual mapping is a visual representation of a brand's, product's, or service's position
in comparison to its competitors. Positional mapping is another name for it.

ODEL now has a medium cost and a large market share in the total industry. The main
participants in the market are generally spread out across a range of price points. To make
ODEL a superior brand in the retail business by delivering high-level management
brilliance. As a result, positioning is done by taking into account the administration and
benefits of the merchandise providing, as well as the pricing.
 2.1.2 Porters Five Forces
Five Forces Impact Description
High Medium Low
Bargaining Power of Because of ODEL's prominence in the market
Suppliers and the large sums it purchases from
suppliers, suppliers are unwilling to pass up
the opportunity to supply such a pioneering
buyer.

There are about 1000 providers and 200 or

more industrial facilities in the area, all of
which supply Odel with a mind-boggling
range of things, giving Odel the power and
options.

Odel has its own assembly facilities.

Bargaining power of There is a high level of progress toward new
Buyers options, and there are a few increasingly
popular apparel stores on the island, such as
Hameedias, Crocodile, Levis, Roma Four, and
Place of Design, that sell comparable items
with little or no difference and are also located
in a few areas.

Threat of substitution As previously said, clients have a variety of

options from which to choose.

However, the most important advantage that

ODEL has is the reputation that they have
gained by providing high-quality merchandise,
which has allowed them to thrive in the
commercial center. While other design chain
markets can distribute global brands such as
Gucci, Prada, and Armani, their target market
is currently unique

Threat of new Because of the impact of online life and the

entrance end of the common conflict, the retail
industry in Sri Lanka is expected to grow. As
a result of this development, major
organizations and brands like as Marks and
Spencer may be enticed to enter the market.

Threat of inter rivalry Hameedias, Crocodile, Levis, Roma Four, Place

of Design, Fashion Bug, Marvelousness, and so

2.2 Internal Environment Analysis
Inventory management
Choosing Right Mix
Access to Capital
Customer Loyalty
2.3 SWOT Analysis
on. are the major participants in this market, with
some of them showcasing well-known brands
such as Levis, Reebok, and Adidas. Some of them
just promote well-known brands for which they
are approved distributors on the island for brands
that have created their image in the marketplace.
Each of these competitors offers a similar product
with little to no differentiation for customers. As a
result, the business has become embroiled in a
value war.
Inventory management is a crucial issue at a
large retail store. It is impossible to have the
proper amount of inventory in all brands.
It's all about having the correct blend of
everything in the retail industry. However, no
matter what steps are taken, this will not be
possible. Because this can only be
accomplished by studying the past and
forecasting the future. Because this isn't always
done perfectly. This has led to being a key
issue.
The retail industry is continually changing,
which necessitates the use of capital. Interest
rates have risen as a result of changing
exchange rates. Capital access has become a
major concern.
It's a difficult responsibility to keep clients happy
throughout the process. Because you must keep
up with the ever-changing fashion trends. As a
result, customer loyalty has become a major
concern.
 Strengths Weaknesses
 A wide range of products  Premium Pricing
 Unique Identity for all brands within  Women’s clothing line is mainly
the store focused of high fashion.
 It has an organized business structure  20% Ladies clothing line fabric
 It offers quality clothing bought in local markets.
 Large number of outlets  Taxation Hurdles
 Strong financial performance
 High brand recall
 Recognized advertising throughout
the years.
 Effective Supply chain
 Well trained and motivated sales /
backend employees

Opportunity
 Focus on expansion to improve
profitability.
 E-commerce as a platform
 Enhancement of Loyalty program
 Changing mentalities of Sri
Lankan customers
 Celebrity Endorsements
Threats
 Evolving fashion trends
 E-commerce allows new entrants
 Intense competition
 Exchange rate fluctuation
 Increased Competition
3.0 Applying Marketing Concepts to ODEL
3.1. Needs, Wants, Demands
Odel PLC satisfies the basic concept of need on a number of levels. The physical need of clothes
is satisfied through retailing. Some parties purchase Odel products to show their luxurious living
standard in front of society, this is an act of esteem, where the esteem need is satisfying. Embark,
a subsidiary of Odel, provides people with the opportunity to tend to helpless dogs, allowing
individuals to realize their self-fulfillment need.

A want is a step ahead of a need. It is mainly dependent on the perception of the individual.
Unlike needs, wants are very subjective. Odel has taken the basic need of clothing and has
created countless products to satisfy it. Launching different clothing collections each season
(new year, summer, Christmas etc.) is a classic example of how the basic marketing concept,
want, is applied at Odel. Marketing products for dogs (collars, dog couches, chew toys etc.) is
another practical application.

A demand is created when a customer is willing to pay for a particular product. (Demand =
Willingness to pay (want) + Ability to pay). In the case of Odel demand is mostly from high end
customers who are willing to and have to ability to pay a hefty price for the perceived luxury
brand. The prestige of owning, quality, trend like nature and fashionableness of the products is
what primarily drives demand for Odel.

3.2 Markets
A market is a gathering of people who are willing to purchase something. It's a public gathering
place where goods are offered and sold. Focusing on a specific consumer group from the total
market by the producer to sell his products or introducing his product to the selected consumer
group itself can be stated as market or target market in marketing. The size of the marketplace
depends on how many people are willing to participate in the exchange. A marketing campaign
is a set of activities that help consumers trade. These include identifying potential buyers and
selling products and services that satisfy their needs.

It is safe to say that Odel has become successful in securing a solid market space. However, as
mentioned earlier its market mostly comprises of high-end buyers. Odel is constantly on its toes
to keep the market engaged and interested in their products, by constructing attractive physical
shopping outlets and maintaining a website for customers to shop online.

3.3 Overview of Marketing Process

The magic of ODEL's progress method and its ability to reliably categorize its image while
remaining in sync with the changing seasons and patterns. Excursions to ODEL from various
locations — Public exhibitions and shopping capitals, which are the glory of Sri Lanka's retailing
scene, influence and shape the motivation in the goods providing and advancements that ODEL
outlines every year. ODEL's public relations activities have set the bar for adjacent merchants
and have sparked great interest among Colombo's youth. For example, ODEL's Christmas
marketing campaign is greatly anticipated, and it is the main retailer that goes all out to enhance
the Christmas spirit. Every year, crowds of people come to Ward Spot's flagship store to see
what ODEL's theme for the best shopping season is.

ODEL has always been ahead of its competitors in terms of marketing. The goal of the
marketing team could be clearly seen in the various promotional activities that the company has
been carrying out. They have launched various sub-brands namely such as Luv SL, Embark, and
Backstage. These are designed to provide better living conditions and support the adoptions of
stray dogs. Most of the stores are in Colombo. It invests in the latest in-store merchandising
technology and training its staff members to maintain a high level of service. The Odel brand is
now more than just a name. Its diverse product range and global reach is expected to create
greater heights of profitability and brand recognition.

3.4 The roles, responsibilities and competencies required in marketing

ODEL has a dedicated sales and marketing group. The sales group is divided into B2B and B2C
target clients, while the marketing group completes the showcasing activities to achieve the
advertising aims. ODEL has established a 24-hour client hotline to assist clients, as well as an
online emotionally helpful network.
4.0 ODEL Organization Structure and different functions
A structure depends on the organization objective and strategy. one of the goals in Odel is to
create business opportunities and to provide value for the shareholders. ODEL has a flat
structure. it has a short chain of command and a wide span of managerial control. ODEL
communication structure facilitates a greater level of communication between employees and
management. They tend to be more democratic and of a greater level of innovation.
Communication is usually faster more reliable and more effective. In decision making, Odel is
more flexible and adaptable and takes the right decision. The level of flexibility means decisions
are made on "as needed" basis which makes it easier to serve the client.

Customers can also connect through social networks such as Facebook YouTube Google Plus,
and Twitter. in addition, the database about that office to the customers through advertising in
different medicines papers and the frequently update the websites on social media. Odel always
welcome their customers' views, opinions and feedback of the service which can be send to their
website.

Odel strives to offer its customers more than just the shopping experience. it aims to offer a
hassle free sophisticated and memorable shopping experience. Today consumers not only
demand quality but also demand the product and services to be delivered quickly. In that case,
Odel focuses primarily in queue psychology which is a good method to manage and eliminate
the customer waiting time. As mentioned Odel has various segments based on product type and
they put a cashier for each store segment. in addition, Odel has created special waiting areas for
children to play.

Societal Marketing concept

According to the societal marketing idea, a corporation should make good marketing decisions
by taking into account consumers' demands, the company's requirements, and society's long-term
interests while making marketing decisions. It advocates for long-term marketing, as well as
socially and environmentally responsible marketing, that serves current consumer and business
requirements while simultaneously protecting or improving future generations' ability to meet
their own.
Odel’s embark brand as discussed above is a prominent CSR marketing idea which is against
animal cruelty and finding shelter for stray dogs. Luv SL includes a range of home grown
products in the fashion, accessories, souvenirs and household to promote the traditional, tropical
Sri Lankan culture and local entrepreneurs.
5.0 Recommendations and Conclusion

Odel is a highly customer oriented company which is rich in quality and style. it features most
up-to-date fashion available in the industry. Odel has become well recognized in the local and
international customer base for that remained is unique styles of its products and services. they
are innovative marketing strategies emphasizes the company’s objective vision mission and
values. Odel is in a relatively higher level based on product quality brand equity globalization
and business contacts when compared with its competitors. However, it is recommended that
Odel needs to devise a strategy with regard to pricing tactics in order to touch a broad market
audience with different income levels.
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