Retail marketing - Keells Super

Student ID: FEVSB173, KOCJD191

Unit code: MKT2700D
Table of content
1.0 Executive Summary :
Individuals are continually going to go out on the town to shop. A ton of our exertion is simply,
how we make the retail experience an incredible one

Keells, a supermarket run by the ‘JKH Holdings’ family is the perfect shopping goal for the
whole family. Every one of their stores is focused on giving you simply the best without fail.
Keells has constantly demonstrated that they are one of the main organizations in the nation.
Their administrations are continually improved to meet the differing inclinations of each client.

This report depends on the showcasing, evaluating, and retailer systems utilized by the retailer to
confront the challenge effectively. Even though they are one of the biggest retailers, they face a
high challenge in the market. This report additionally incorporates the objective market,
showcase situating, estimating techniques, retail blend, correspondence blend, store format,
visual product, supportable upper hand and the components that influence this establishment.

As indicated by the client survey, it was discovered that Keells gives less consideration on their
outside plan and design. To confront the extreme challenges and increase a maintainable upper
hand, the referenced establishment ought to be worried about their negative inward factors.

On the off chance that Keells can diminish these negative elements, they would have the option
to pull in more clients and hold their current clients and consequently it will assist them with
succeeding over the long haul.

2.0 Company vision

John Keells’ group’s vision for a sustainable future, Keells Supermarkets launched their first two
solar-powered stores in Boralasgamuwa and Raththanapitiya in 2017 and later expanded to 11
stores.
Keells brand identity and store concept is ingrained in Keells’ belief of improving the
quality of life for the nation by providing innovative experiences, quality food and fresh
produce at the right price to our consumers.

3.0 Company mission statement

“As a part of Sri Lanka’s largest conglomerate, our mission towards reducing our carbon
footprint and setting an example as a socially and environmentally conscious company is in line
with the business’s long term vision of improving the quality of life for the nation”
Also as Keells changed from Keells to green Keells concept they planning to reduce the energy
reduction by 12% by 2020.
4.0 Company History:
The John Keells Group recently celebrated their 150 years of company growth and this company
had diversified into many other sectors and has accumulated large market capitalization.
[ CITATION Kee \l 1033 ]
Their Retail Sector comprises of Supermarkets and Office Automation arrangements. Keells
stores work with the center motivation behind improving the personal satisfaction for the country
and spotlight on accommodating life's normal needs with a world class retail understanding.

Nexus Mobile - a steadfastness program with the biggest part base for a non-telco organization,
is additionally part of the retail division offering some incentive options to its individuals at all
Keells Supermarkets island wide. JKOA drives the market in office computerization
arrangements with an item arrangement of incredibly famous brands.

K Choice is the own label exclusive to Keells Super. It has a history that returns to the time of
2009 where it was propelled with the scope of Pulses, and to date it has developed a wide
customer base
K Choice is resolved to offer its important clients a quality item at moderate costs. Every one of
our items convey a standard plan, essential, basic bundling, to guarantee all the cost investment
funds are given to the Customers. We have a scope of items under classifications, for example,
basic food item, chilled, and solidified, Household and Home-product. Every one of their items
are sourced from presumed providers in Sri Lanka and abroad, and through nonstop and
thorough quality checks we endeavor to give the best consistently and remain by their image
guarantee in serving the client, their most important resource.

5.0 Target market and Product Positioning

At the point when we consider Keells Super Center it gives everything under one rooftop. They
offer various kinds of items for various market sections. So thusly Keells Super Center will
utilize separated market procedure as their market technique. They will be excited about their
current clients, new clients and potential clients. This specific establishment will consider
following highlights while considering their objective market.

 Recognizable
 Significant
 Generous
 Reachable.

Keells supermarket always strives to serve to all types of people and to different
segmentations in the market and few of these could be identified as follows:

Demographic.

 Age – Baby boomers, teens and adults.

 Gender – Male and Female
 Occupation types – Employed and Unemployed
  Family life cycle – Single and Married
 Family income –Rs.25, 000 and above

Geographic

 Region – Western Province

 Population Density – Urban

Psychographic.

 Social class – Lower, Middle and Upper.

 Lifestyle – Innovator, Hardworking,
 Personality – keells customers are choosy in products. They always go for the superior
quality.

Buying behavior.

 Loyalty – Medium and strong

 Usage rate – Nonuser, medium and heavy
 Usage situation – Normal
 Innovativeness – Normal
 Benefit sort – Convenient purchaser and extreme purchaser

5.1 Market positioning.

Keells is one of the main store establishments in Sri Lanka. They have assembled the trust
among clients that they are the best hyper showcase in Sri Lanka, where the purchaser gets the
opportunity of purchasing each household thing under one rooftop. Because of the comfort and
proficient administration of Keells it has made a decent market request inside shoppers.

5.2 Marketing Strategy

Ansoff's Growth Strategies comprises of four phases, specifically: Market Penetration, Product
Development, Product Development, and Diversification. Keells supercenter can build up their
establishment by utilizing the above framework. For the most part they will consider Market
Penetration and Product Development.

Market Penetration – Directed towards the current clients utilizing a similar retailing position.
With the assistance of this technique, Keells super focuses can pull in clients inside a similar
objective market, hold their current clients and affecting them to visit frequently lastly to buy
increasingly more in each visit.

Item Development – This is the place Keells super focuses can acquaint new items with the
current market. By executing this technique, the accompanying establishment can make
development in the market and turn out to be first in the market by picking up the reasonable
upper hand.

6.1 Competitors and Competitive advantage

Keells Super focuses have built up a special upper hand contrasted with other general stores, for
example, Keels Super, Cargills and snickers. This establishment is unique in relation to different
contenders because of the accompanying angles.

•One-stop looks for the whole family.

•They offer an assortment of advantages to a wide range of their clients and extra advantages
during merry seasons.

•They are giving more advantages to the clients on their acquisitions and furthermore include
more in the celebration time frames.

•Their present-day grocery stores make a strongly suggested shopping goal for their current
clients, to less down the exercise in futility and exertion, and furthermore their rehearsing the
social market idea.

•Their choice of area depends ashore and space, and the closeness to the town for the comfort of
the clients.

•They vary from their rivals because of the utilization of a kind shading topics.

6.2 Recommendations which we can give to keells in order to gain sustainable

competitive advantage
•More open stopping offices.( more parking space)

•Provision of lift/Escalator offices for accommodation of client because of the nearness of

numerous floors

•Increase of offers staff to help clients in picking and purchasing items.

•Provision of alluring offers, for example, free dependability cards for clients who purchase
items higher than a pre-decided sum.

•Entertainment areas to engage clients and increment positive input.

• Expansion particularly in Southern, Northern and eastern regions in the nation.

7.1Factors affecting keells super
There are many factors that Keells have control of however at the same time there are factors
that Keells are unable to have control over these factors are as follows

Socio Cultural Factors

Changes in ways of life, customs, and qualities will influence the improvement of Keells super
focuses. It will be a serious issue over the long haul.

Geographic Location

This will be a significant point that the retailer ought to be excited about because opening an
Keells super in a country zone won't be a decent choice and it won't be a proficient and
successful establishment. In this way, subsequently, it is a vital factor that the retailer ought to
consider.

Climatic Changes

Climate changes tend to impact less on places such as supermarkets

7.2 Economic Factors

Employment:

The employment rate in a country can determine how much money is flowing through people to
make their purchasing decisions. Having a low unemployment rate is good for supermarkets such
as Keells as to people will purchase more as they have more cash

Inflation:

Inflation has been referred to as the persistent rise in the general price of goods and services.
Inflations rising means the purchasing ability of consumers will go down and inflation falling
means the ability to purchase increase of the consumers

Interest Rates:

Interest rates sometimes will result in making changes to consumer purchasing patterns, so the
retailers tend to bear the extra cost so this will be a disadvantage for the retailer
7.3 Competitive Pressures
This is a wild factor that straightforwardly influences the establishment. Keells supercenters
predominantly have five focused weights. To be specific:

 Industry Rivals
 The danger of new participants
 Bargaining intensity of the client
 Bargaining intensity of the providers

7.4 Industry Rivals

Keells Super focuses ought to be worried about their rivals since rivals, for example, Keels Super
and Cargills utilize numerous strategies all together pull in the potential clients. Keells Super
focuses should utilize creative strategies to draw in potential clients and furthermore to give an
extreme challenge.

7.5 Threat of new entrants

New participants are constantly a risk to the current organizations. Keells very focus ought to be
alert about the new passages and their strategies all together remain their current clients.

7.6Bargaining power of the customers

Purchasers are value producers in these sorts of organizations on the grounds that there are numerous
comparative firms in the market. Keells super focuses ought to be worried about the costs of different
retailers and the value that the buyer willing and ready to continue the buy.

7.7 Bargaining Power of Suppliers

On the off chance that customers can drive costs down, providers can drive costs up. This control
is driven by the measure of providers, the uniqueness of the supplier's thing, and the entirety it
would get an association to adjust starting with one provider by then onto the following. Keells
super focuses should worry about the provider’s cost also.

7.8 Threats of Substitutes

This is additionally a significant danger that can influence the Keells super focuses. In the event
that the interest for the substitutes builds it will diminish the interest for the business items.
Clients are bound to change into less expensive items so consequently Keells Super focuses
ought to be worried about the costs of substitutes.

8.1 E-commerce and Technology

Keells Super has just made their online site to do exchanges on the web and convey the
merchandise requested by the shoppers. The customers who are having a bustling timetable will
consistently do the exchanges on the web and get their necessary merchandise. With the
improvement of innovation, individuals would prefer not to visit the superstores to satisfy their
necessary needs, they can do it while they are working or while they are home. This will likewise
draw in potential customers and hold their current customer base. Through this strategy Keells
Super can aim to gain a competitive advantage in this highly competitive market. [ CITATION
Kee1 \l 1033 ]

8.2 Technology
Keells Super has utilized the innovation productively and adequately. They have made portable
applications and numerous social sites to satisfy the desires of the buyers. They launched an app
in 2014 for customers to order online. They have even utilized CCTV cameras at the vehicle
parks to ensure customer vehicle safety. [ CITATION Dai14 \l 1033 ]

9.0 Retail marketing strategy

9.1 Retail format

Keells super retail format consist of stores that are on the main roads and other retail format is on
shopping malls being able to establish a store will attract a lot of people

9.2 location strategy

Keells super has various outlets arranged all through the nation. What's more, those outlets are for the
most part arranged by the main streets which permit extraordinary space for parking for the customers
and visibility

9.3 retail mix

A retail mix, defined, is the marketing plan put in place to address key factors such as location,
price, personnel, services, and goods. Retail Mix is also referred to as the “6 P’s”. [ CITATION
Ret \l 1033 ]

Product:
This includes all the types of products and brands that are available for the
consumers. Keells Super & the JKH Company offers a variety of ‘FMCG - Fast
Moving Consumer Goods’. Below, are a few brands listed under them:

Retail:
1. Krest
2. Fito
3. Elephant House – Milk, Sausages, Wonder
4. 2 Bar ice cream
5. Imorich ice cream
6. Farm House
7. ICE cubes

Plantation:

1. Tea small-holder factories PLC

 2. JKL 1870

Leisure :

1. Cinnamon Hotels & Resorts

2. Nature Trails
3. Walkers tours
4. Travel
5. Nature Odyssey

Information technology:

1. · Samsung
2. · Toshiba
3. · Hitachi
4. · ASUS
5. · Zhara –HS
6. · John Keells – disruptive minds
7. · XYZPrinting

Transportation :

1. · Cinnamon AIR
2. · Mack AIR
3. · AirFrance
4. · DHL
5. · Port of Colombo (SAGT)
6. · Air Asia
7. · Air taxi (Sri Lankan)

Properties :

1. · 7 Sense
th

2. · Cinnamon Life
3. · Kzone
4. · The Monarch
5. · John Keells Land

9.4 pricing strategy

Keells too Center is a retail business which gives items that clients need on a regular premise,
while additionally expecting to offer costs that are low and engaging enough to attract clients
inside to purchase. As indicated by the exploration Keells utilize the Everyday low valuing
technique as their estimating system. Where Keells purchase an enormous volume of product at
the most reduced cost from the providers.

Keells utilize moderately low markup costs, gaining a lower benefit rate for each thing. Keells
has fabricated their notoriety and their customer bases by reliably selling an expansive scope of
items at less expensive costs than their rivals. Staple goods that utilization regular low valuing
techniques will in general handle huge volumes of products. Keells ought to be worried about the
contender's cost so as to pick up the feasible upper hand and pull in the potential clients toward
their product.

10.0 customer loyalty

Customer Relationship Management (CRM) essentially alludes to practices, innovations, and

techniques that associations use to manage and separate customer collaborations and data all
through the customer life cycle, with the goal of upgrading business associations with clients,
helping client maintenance and driving deals development.

These frameworks are proposed to gather information on customers over different channels or as
purposes of contact between the customer and the association through the association's site, web-
based life stages, live visits, hotlines or advertising materials. Such frameworks permit staff
individuals to access data, for example, buy history, interests, purchasing inclinations, individual
data and concerns and so on of their clients, with the goal that they can make the purchasing
experience a wonderful one.

While considering the client relationship with the executives at keells super, any reasonable
person would agree that they are doing amazingly well. The store's online site, notices,
magazines and pamphlets and so forth give all the data that a client would search for while
scanning for potential buy things. Which settles on the buy choice a simple one. Externally,
however, after entering clients will have the option to see inside data of items (markdown offers)
being shown all through the store. Again, making the shopping experience an advantageous and
useful one.
11.0 Communication mix
Communication is an integral part of the retailer’s marketing strategy. Primarily, communication
is used to inform the customers about the retailer, the merchandise and the services
It is believed that every brand contact delivers an impression that can strengthen or
weaken the customer view of the company

1) Advertising
2) Sales Promotion
3) Public Relations
4) Personal Selling
5) Direct Marketing

11.1 Advertising
Publicizing as a major aspect of showcasing has three primary destinations; update, impact and
rehash. Furthermore, that should be possible by concentrating fundamentally on the
accompanying, who are we and what do we do? What are our items? How would we persuade
clients to buy our items?

Advertising is done for many reasons as to the main objective is to make sure the customers
know about the products, and to have a good brand image with the customers as they know that
when they come to the store that they are buying from the best possible store that they can buy
the products from this means Keells will have to have a good relationship with the customers in
order to gain this trust sometimes this can be long term or short term considering how effective
the advertising of the Keells company is,

As it's clear that john Keells group as being there for over 150 years and has built a good
reputation among the customers and during the past years Keells has used many advertising
methods such as

Broadcast Advertising – Television & Radio

Keells uses many celebrities to publicize themselves.

Kumar Sangakkara is a brand ambassador for JKH.

Digital Advertising – Internet, mobile phones, media

devices etc.

they use social media platforms such as Instagram, Facebook to reach out to their customer base.

11.2 Sales promotions

Sales promotion can be a method of attracting the customers to the keells supermarket and also
this will persuade customers to make repeat purchases from keells as they think that keells will
always offer goods at a lower price with many offers.

Sales promotions can be long term or short term depending on the product however most
supermarkets tend to keep sales promotions only for a short period of time in order to make the
customers buy the product and or the test new products that are similar.

It's also very important for supermarkets such as Keells to give offers in order to stay competitive
with supermarkets such as Cargill’s and Arpico. A few promotion methods used are stated below:
 Discounted/ Marked down items
 Loyalty cards – Nexus
 BOGOF
 Discounting bakery items with 50% after 8pm
12.0 Mystery Shopping

12.1 ‘Bricks and Mortar’ store (Physical presence)

Keells Super initially had a red themed outlet store with vibrant ‘red’ all over. They soon
rebranded themselves with the ‘go-green’ concept which won many awards overseas and the
store concept is ingrained in Keells’ belief of improving the quality of life for the nation by
providing good quality food and fresh produce though innovation and experience.

This new concept brought in more customers since it included a bakery, a pharmacy, a tuk-tuk
featuring special products and a light ambience which was easy on the eyes and Keells made sure
to provide vast parking space for all customers. The shelves were always filled with new
products and organized in a manner which will make the customer buy another thing or two
rather than purchasing just that one product. Keells super mainly uses ‘Green and White’ colors
for their decorations and the shelves are always updated and checked thoroughly to check for
expiration dates. Whichever items closest to being expired are presented upfront with a marked
down or discounted price (50% off).

The staff at Keells super is friendly and happy to help a customer find whatever product they
came looking for. This is good quality
and customer satisfaction maintained
by JKH.

12.2 Website

Keells supercenter released its new

website for online shopping for the
customers to make their shopping
experience to feel much more
comfortable while staying at home.
This website is made with easy user interference which makes it easy to understand how to
purchase products online through the website.
They have also decided to go with colors such as green and white to give it a greener look as the
new theme of Keells has been, being more environmentally friendly compared to all the other
supermarkets which give them an edge in the market.

Moreover, Keells has decided to give more offers through the online website which persuade
customers to make online purchases via them or via a third party such as Kapruka.

Here is an example of how the explanation is given by Keells website itself on how to use the
app.

12.3 Benchmark against the two main competitors’ Website

Keells Super’s main competitors are Arpico and Cargills food city. These three leaders run the country
with massive market capitals. In comparison, however, the prices also tend to be the same. We have
checked out the price of ‘Cheddar Cheese’ in all 3 supermarket chains and the results are as follows;

keells – Rs.975 Cargills – Rs.828 Keells – Rs.975

Cargills have an ongoing promotion these days hence the price of this product is cheaper than the rest of
its competition, if not it would have been the same as the rest.

Moreover, the official page of Keells Super happens to be more vibrant and inviting, followed by the
Keells webpage but the Cargills webpage lacks design and looks unappealing. It’s just a leaflet which
stretches down with no ‘search bar’. Keells will surely retain its customer base since good standards are
met.

12.4 Mobile
Keells super have developed an app which is accessible via android and apple. They launched this app in
2014 itself and with thus new app, the customers can order online through their main website, check up
on their loyalty card discount ‘ Nexus’, and also get the location to the nearest Keells Super outlet via
google maps. It also enables customers to contact that particular branch immediately with the touch of a
button. [ CITATION Dai141 \l 1033 ]

13.0 Recommendations

13.1 Image building activities

13.2 Customer retention

14.0 Future retail market strategy

Keells Supermarket right now, one of Sri Lanka's biggest and driving industries thus needs to
rival different goliaths like laugfs super and Cargills. The explanation keells is so mainstream
among clients is a result of the immense item assortment that they offer (all under one rooftop).
Of the considerable number of outlets, the one in association place is the most visited one.
Essentially because of the way that it is situated in a profoundly populated territory encompassed
generally by their objective market. At present, there is a gigantic inflow of outsiders to the
country and if keells to stand out for the deals will evidently support notwithstanding giving
them a lead over their competitors. On the off chance that they can by one way or another add a
social perspective to their items that would go about as a contributing element to pulling in
voyagers as it will give them a conventional and novel experience. Also, I will ideally give keells
the bit of leeway they are searching for.

14.1 Future development opportunities

Eco -friendly supermarket environment:

Natural contamination is a huge issue we face today. Despite the fact that keells have stepped up and give
reusable/biodegradable packs to maintain a strategic distance from the utilization of plastic, it has not
taken off as arranged thus numerous outlets despite everything utilize plastic sacks. Measures ought to be
taken to guarantee that the proposed arrangement experiences effectively as it will likewise bring about
great PR for the organization.
Loyalty card programs

Keells has introduced many new ways to keep a good relationship with the customer and one of them can
be keells introducing the nexus card, however, when this card was issued customer contact number and
name was collected, this information can be taken into an advantage such as sending a message to all the
customers who are registered under nexus on what types of offers the keells supermarket is giving on
daily basis

Customer convenience

Keells can use uber service or corporate with a company such as uber to extend their market, by
delivering a service such a uber, having a service such as this will give a competitive advantage over the
competitors such as Cargill and laugh super

14.2 Strategic recommendations

•Maintaining industry dominance by advancing and persuading both the unwavering and new
customers to repeat buys

•Using web-based life right now as a technique to get across advancements, new updates, and
fresh debuts, and so forth.

•Expanding the outlet by making more noteworthy dares to give customers the greatest
experience.

•Maintaining a well-arranged and advantageous condition to energize the two representatives and
clients to carry on in the business premises joyfully.

•Running charity programs as per the new age's advantage zones.

14.3 Operational recommendations

•Technology can be used further to associate the customers with the business, while additionally giving
significant updates accordingly inferring that every customer is basic to the business.

•Other than limiting to the metropolitan areas, for instance, Colombo, Galle and Negombo, it can develop
its associations in common districts concentrating on various customers. Authority can
•Conducting an investigation into nearby things is one approach to accomplish all customers at present.
Sri Lankans and voyagers are pulled in with standard thoughts and things that show the uniqueness of our
Lankan lifestyle.

be appointed to the locale overseers to make significant progressions that can permit them to arrive at
clients around there and help make that significant business connect.

•An included preferred position for keells is to give new encounters to clients through the presentation of
new items.

•The staff can be prepared continually to adjust to present-day client needs and give the most ideal client
assistance just as one of a kind encounter.
14.4 Advancing the keells super chain growth

Keells can develop its outlets more wherever all through the country more than before by
concentrating on the objective market completely. Furthermore, it can recognize the zone where
client traffic is high however there isn't a current outlet. They can likewise use the system of
spring up stores or deals which quite often ensure business help.

14.5 Promotional activities

There are many promotional methods when promoting products and service these can be called above the
line promotion and below the line promotion however in this generation, it has identified that using both
these will be less effective than social media so it’s very important for a company such as Keells to keep
their social media promotional activities up to date as there seem to be more people using social media as
a promotional method
15.0 Conclusion

16.0 References
 MYSTERY SHOPPERS REPORT

DATE: 27 January 2020

nd

STORE: Keells Super

LOCATION: 208, Bellantara Road attidiya

TIME: 11.00- 2.00

MYSTERY SHOPPING DONE BY: Vimukthi Sheran Fernando , chamith Vithanage.

Store Appearance & Cleanliness Yes/No

Was the store’s outside appearance attractive – Did the store have curb No
appeal?

Was the window display inviting and attractive? No

Did the outside appear to be clean – clear sidewalks, clean windows and No
doors, etc.?

Was the store’s inside clean and attractive? Yes

Was the store easy to shop and well-organized? Yes

General Comment

All in all was quite satisfactory.

Employee Behaviour Yes/No

Were you acknowledged by an associate within 30seconds of entering the Yes

store?

Did the associate/team member smile? Yes

Did the associate/team member ask what you were shopping for today? Yes

Did the associate/team member offer you help? Yes

Did the associate/team member offer you an additional item? No

Did the store clerk ask good questions to find out what you were looking for? Yes

Was the store clerk knowledgeable about the merchandise? Yes

Was the employee’s appearance appropriate to the nature of the store? Yes

Was the checkout experience positive?

Did the associate/team member provide a pleasant closing comment (“Have a Yes
good day,” “Thanks for shopping with us,” “Thank you,” etc.)?

Did the cashier mention the loyalty/rewards program by name during your Yes
transaction?

General Comment

The employees were helpful but not too invasive. But as we entered at a time that was not overly
crowded, it is possible that customer - employee interactions could differ from what we
experienced.

Merchandise Yes/No

Was the store merchandise arranged in an orderly & neat manner? Yes

Are products well identified and labelled with prices? Yes

What is your overall opinion of the merchandise selection? Satisfactory

Is merchandise neatly displayed? Yes

Is there a good variety and selection of products? Yes

Are the prices competitive with other retailers in the area? Yes

Is the quality of merchandise the highest available for the price? Yes

General Comment

The store layout was very good and was easy to shop around. The merchandise was very neatly
arranged and was orderly placed by colour, design. They had removed all the expiry products
and replaced it with brand new products. The price was competitive they had some products with
low prices compared to their competitors. The quality of fresh food items was excellent and it
smells really good and fresh.

The Path to Purchase Yes/No

 Was every item you wanted to purchase

available? If NO, please list unavailable item(s). Yes

 Was an alternative offered to the item not found?

-

 How long did your transaction take from the time

you reached the counter until you received your 5 minutes ( not including the time to
receipt? (mm:ss) become a loyalty card holder)
 What was the number of registers staffed when
you got in line? 5 counters were available (including
a “less than 10 items’ counter)