MBA Marketing Keels

University of Wales Institute, Cardiff (UWIC)
Master of Business Administration (MBA)
“Brand Positioning”
Mistake of
JayKay Marketing Services (Pvt) Ltd
Prepared By:
Mohamed Mohideen Mohamed Rishard

UWIC/MBA/MT/12/02
Module Title: Marketing 1 (Individual Report)
Module No : MBA 403
Word Count: 2190 (Excluding Cover page, Acknowledgment, Executive
Summary, Table of Contents, References & Annexure)
“Brand Positioning” mistake of KEELLS SUPER
Acknowledgement
Apart from the exertions of me, the achievement of this report depends on the encouragement
and guide posts of many others. I take this opportunity to express my appreciation to the
people who have been subservient in the productive closing of this report.
A special thank belongs to Mr.Charitha Subasinghe, CEO of JK Marketing Services Ltd. The
true support that he provided truly assists the progression, and the co-operation is very much
indeed apprehended. And also special thanks to Mrs.Shivanthi Rajaratnam, Brand Manager
Keells Super, for the guidance and encouragement in giving all the supportive information
and suggestions.
My warm thanks to Keells Super Outlet Managers at Narahenpita, Mahabage, Marine Drive
and Kiribathgoda, who gave the fullest co-operation. Thanks also to Cargills Food city Outlet
Managers at Nawala, Wattala, Park Road and Kadawatha.
It is a pleasure to thank Mrs.Nilanthi D Silva of Nielsons Research Company for giving us

the related research information and documents, in order us to complete the task.
Great deals appreciated go to contributions of my Marketing lecturers in ICBT Campus and

also I would like to thank the ICBT program staff in helping us complete the program.
Last but not least, I would like to thanks all my colleagues in our group Transformers, for the
support Contribution and Hard work. The report would be nothing without the enthusiasm
from the group members. And it made me to realize the value of working together as a team
which was challenging. The program actually brought us together to treasure the true value of
friendship and respect of each other.
2|Page
Executive Summary
Every company has marketing campaigns to create tremendous new branding initiatives,
slogans, and commercials to gain competitive advantage from the modern trade market
leaders and captivating the consumer’s mindset. Sometimes these actions make the brands as
successful or mistake and lead to the downfall of entire brand.
This report explains the marketing mistakes om “Brand Positioning” done by Keells Super
brand which is administrated and managed under JayKay Marketing Services (Pvt) Ltd. This
was established in 1991 as a subsidiary of John Keells Holdings with employee’s strength of
1800. Currently it has 42 outlets and 6 franchise outlets under the brand “Super K”, also
Keells Super consist of over 12000 SKU’s and the newest addition is the brand “KEKO” for
apparel and fashion, also Kells Super brand equity worth Rs. 8 Billion. The vision is to be
one of the leading brands in retail in the region.
First in the report explanation given on the current retail and modern trade landscape with
financial KPI’s and market shares of major players in the modern trade market. And apply of
Porter’s five force analysis to the industry.
Then comes an audit of marketing function of JMSL and present consumer segment of keells
Super .then marketing mistakes been identified along with evolution of the blunder, and to for
the justification , a benchmark is done with the market leader along with a consumer
perception survey.
Then we illustrates the actions taken by JMSL to overcome the mistakes done by Keells
Super in different stages and followed by recommendations to re align its growth strategies
and generic strategies recover its position in the modern trade market and gain competitive
advantage.
3|Page
Table of Contents
Acknowledgement .....................................................................................................................2
Executive Summary ...................................................................................................................3
Table of Figures .........................................................................................................................5
1. Introduction............................................................................................................................6
2. Retail Market Landscape of Sri Lanka ..................................................................................7
3. Modern Trade Competitor Analysis ......................................................................................8
3.1. Turnover Vs Outlets comparison in 2010/2011 ..............................................................8
3.2. Modern Trade Market Share ...........................................................................................9
3.3. Porter’s 5 Force Analysis ................................................................................................9
4. Marketing Audit of JMSL....................................................................................................10
4.1. Strength and Weaknesses ..............................................................................................10
4.2. Present Target Consumer of Keells super .....................................................................11
5. Current Positioning map of Modern Trade in Sri Lanka .....................................................11
6. Marketing Mistake of Keells Super .....................................................................................12
6.1. Evolution of the Blunder ...............................................................................................13
6.2. Benchmarking with the Market Leader.........................................................................13
6.3. Research to Identify Consumer perception ...................................................................15
7. Measures taken by JMSL to defeat the mistake...................................................................16
7.1. Introduction of Elephant House Super Pola..................................................................16
7.2. Lower than Lowest Price Campaign .............................................................................17
7.3 Freshness & Quality Campaign......................................................................................18
8. Conclusion ...........................................................................................................................18
9. Recommendations................................................................................................................19
Bibliography ............................................................................................................................22
Annexure..................................................................................................................................23
1.JMSL Brief........................................................................................................................23
2. Positioning Errors.............................................................................................................23
3.Retai Markt Landscape......................................................................................................23
4. Turnover Vs Outlets comparison in 2010/2011 ...............................................................24
4|Page
Table of Contents cont..
5. Porters 5 Force Analysis ..................................................................................................25

6. JMSL, Keells Super Audit ...............................................................................................26
7. Expansion of Cargills .......................................................................................................26
8. Consumer Research Information......................................................................................27
9.Elephant House Super Pola ...............................................................................................28
10. Lower than Lowest price campaign ...............................................................................28
Table of Figures
FIGURE 1.MARKET OVERVIEW ....................................................................................... 7
FIGURE 2.MODERN TRADE COMPETITOR ANALYSIS ......................................................... 8
FIGURE 3.MODERN TRADE MARKET SHARE .................................................................... 9
FIGURE 4. JMSL STRENGTH & W EAKNESSES ............................................................... 10
FIGURE 5. CURRENT POSITIONING MAP OF MODERN TRADE IN SL................................... 11
FIGURE 6. MARKET SEGMENT ...................................................................................... 12
FIGURE 7. KEELLS FINANCIAL PERFORMANCE .............................................................. 13
FIGURE 8. CARGILLS FINANCIAL PERFORMANCE ............................................................ 14
FIGURE 9. CONSUMER RESEARCH DATA ...................................................................... 15
FIGURE 10. FIRST EHSP AT W ELLAWATTA ................................................................... 16
FIGURE 11. LOWER THAN LOWEST PRICE CAMPAIGN ..................................................... 17
FIGURE 12. FRESHNESS & QUALITY CAMPAIGN ............................................................. 18
5|Page
1. Introduction
This report has been written to illustrate the marketing mistake, which is “Brand Positioning”
done by JayKay Marketing Services (Pvt) Ltd on the their brand KEELLS SUPE for
company profile refer Annexure 1. The objective of this report to identify the mistakes faced
by Keells Super and also critically evaluates current issues which were lead to the blunder
and analysis of market and consumer behaviour, use corrective measures to overcome the
current situation and provide recommendations in order to gain competitive advantage over
the other super market chains in Sri Lanka .
DeChenatony and McDonald define brand as “A successful brand an identifiable product,

service, person or place, augmented in such way that the buyer or user perceives relevant,
unique added values which match their needs most closely. Furthermore, its success results
from being able to sustain those added values in the face of competition.” (DeChernatony,
1998)
Brand positioning can be distinct as an action of creating a brand to present in such a manner
that it occupies a unique place and worth in the consumers mind. There are various
positioning errors such as under positioning, over positioning, confused and double
positioning. See Annexure 2
6|Page
2. Retail Market Landscape of Sri Lanka
MODERNTRADE
MARKETGROWTH 34%
Figure 1.Market Overview
Source: (Lanka, 2010/2011) Central Bank Annual report 2010/2011

(Nielsen, 2011) A.C. Nielsen Research Data 2011
For more illustration on the retail market landscape please refer Annexure 3
7|Page
3. Modern Trade Competitor Analysis
3.1. Turnover Vs Outlets comparison in 2010/2011

Source: Cargills PLC and JMSL Financial Reports
2010/2011 Turnover in LKR Bn & No.of Outlets
Laugfs Sunups
Arpico Super
Keells Super
Cargills Food
0 50 100 150 200

Cargills Food Keells Super Arpico Super Laugfs Sunups
Turnover Bn 29 10.2 10.1 3.1
Outlets 163 42 11 25
Outlets
Figure 2.Modern Trade Competitor Analysis
As per the above KPI’s extracted from the presentation,please refer Annexure 4. for
highlights.
8|Page
3.2. Modern Trade Market Share

The below graph illustrates the market shares of the key super market chains in the country.
Being the market leader Cargills have the highest market share 49% and followed by Keells
Super with 16% market share. The closest competition for Keells super is Arpico, which is a
hyper market.
Source: Cargills PLC and JMSL

Modern Trade Market Share Financial Reports
14.8%
4.7% Cargills
Keells Super
49%
Arpico
15.5%
Laugfs Sunups
other
16%
Figure 3.Modern Trade Market Share
3.3. Porter’s 5 Force Analysis

As we analyse the total industry by using Porters 5 force analysis overall modern trade
industry is extremely high, this can be explained as follows (Porter), Annexure 5.
9|Page
4. Marketing Audit of JMSL
4.1. Strength and Weaknesses

From the Marketing audit we have reviewed the current objectives, strategies and
performance of JMSL in order to improve them in future.
Figure 4. JMSL Strength & Weaknesses
As per the situational analysis of JMSL the main strength is that they provide 2 years
internship programme to work in Keells Super through NAITA vocational institute and they
get paid an allowance, and the second is International consultancy obtained from Tesco and
Wal-Mart.
The crucial weakness is the high staff turnover, this is due to employees leave the company
after obtained the training and to move or head hunted, and this scenario applicable to the
industry as well, and the other is the decline of market share , the main reason for this is the
growth of Cargills with increasing outlets. for other Strength and weaknesses see the
Annexure 6.
10 | P a g e
4.2. Present Target Consumer of Keells super

Upper Class
 Earning more than Rs.100K a month.

 Metropolitan statistical areas
 Always use a vehicle to do the day to day shopping needs
 Industrialist, businessman and Top executives.
 English speaking consumers.
Upper-Middle Class
 Earning more than Rs.50K a month.

 Often use a vehicle for shopping
 Executives and Educated professionals
5. Current Positioning map of Modern Trade in Sri Lanka
Value addition &

Quality
L H
L Price
Figure 5. Current Positioning map of modern Trade in SL
11 | P a g e
Positioning has been defined as “the place a product occupies in a given market, as perceived
by the relevant group of customers; that group of customers is known as the target segment of
the market” (Yoram, 1984)
National census department has segmented the modern trade market as follows;
Slow Growth
Uppe class 20% of the Population
50% of National Income
Growing Market
60% of the Population
40% of the National “Value for
Income
Middle Class Money
mindset”
-Earning less
Than Rs.50K
-Average jobs
Lower Class And education.
-Large in
Numbers.
Source: National Census
-More focus on
Department 2010 To be converted Day to day
Needs
Figure 6. Market Segment
6. Marketing Mistake of Keells Super

As per the above ,Keells Super positioned as a high quality, premium super market chain and
trying to come close to the low price market segment without changing their position in
consumer’s minds. Because of this Wrong perception Created by confused positioning.
On the other hand Cargills enjoy the position as market leader by catering to the rising market
segment in terms of “Value for money, convenient shopping”.
12 | P a g e
6.1. Evolution of the Blunder

Keells Super and Cargills was started an era where super markets percieved as a place for
upper class and luxury shopping. Then Cargills was adopted the market penetration strategy
and caputered the growing market with “Lowest price” campaign (see Annexure 7) and
acquisitions of Park & shop chain and Sentra chain,
The Arpico and Laugfs entered to the modern trade market providing more competitive
environment for Keells Super. Result of this Keells got stuck in the upper market segment ,
the reason for this was not forecasting the growing market segment, but Cargills used this
opportunity and started to capture the market share.
6.2. Benchmarking with the Market Leader

Since Cargills is the market leader, and Keells was losing market share , we taken the
financial KPI’s of each of this super markets to benchmark . As extracted from the
presentation the below data illustrates the Keels financial performance. (Reports, 2011)
Source: JMSL Financial Reports
Figure 7. Keells Financial Performance
13 | P a g e
However Cargills identified the correct target market and shifted to right market position and
became market leader in the modern trade market.
Source: Cargills PLC Annual Report

(PLC, 2011)
Figure 8. Cargills Financial Performance
As per the above data figure 7 Keells is struggling to make profits even though the revenue
was increasing, this is due to wrong market positioning. In 2008 during the recession period
in the country, Keells made 21% revenue increase and growth in profit by penetrating to new
markets and “lower than lowest price campaign”.
14 | P a g e
6.3. Research to Identify Consumer perception

Because of continues decline in profits and market share Keells Super conducted a survey to
analyse the retail market and consumer perception. The consumer research was carried in
various Keells Super and Cargills outlets (see Annexure 8) in Colombo and suburbs.
Source: Market Research
Figure 9. Consumer Research Data
The results were Cargills got ratings only for Price aspects where Keells Super rated above
than Cargills on qualitative aspects.
Also through the research it has been identified that Keells Super current customers are
families, who shopping average 8 to 10 times a month is 42%. Out of the balance 58% most
of the shopping will be done by males and it’s been identified as 52%.
15 | P a g e
7. Measures taken by JMSL to defeat the mistake

Keells Super tried different strategies to change the position and the perception it had by
modern trade consumers. Those are as follows;
7.1. Introduction of Elephant House Super Pola

To overcome the blunder, Elephant house super pola was initially introduced in 2003 to
attract the lower end and middle class market and also to compete with Cargills. Refer
Annexure 9.
Apart from the above reasons EHSP to failed due to un trained staff where Super pola staff
was outsourced to Abans, where staff was not well trained and another reason is Super pola
had only 2800 SKU’s where an average super market need to have minimum of 7000 SKU’s.
Due to all these issues EHSP was withdrawn from the market after 18 months operation.
Figure 10. First EHSP at Wellawatta
16 | P a g e
7.2. Lower than Lowest Price Campaign

The main objective of this campaign to communicate to the consumers that Keells Super is
not an “over priced” super market but a super market that caters to the common man. Refer
Annexure 10.
Figure 11. Lower than Lowest Price Campaign
After the campaign in 2008 the following were

the results;
 Increased the customer base from 87,000 to

181,000 and Revenue increase of 21% and
Rs.7 Mn Profits see figure 7.
17 | P a g e
7.3 Freshness & Quality Campaign

While Keells super was running the lower than lowest price campaign there was a
misunderstanding among consumers due to the lowest price introduced and the quality was
compramised, because of this “Freshness & Quality” campaign was introduced. And this was
also to safeguard the existing market on the price war of “Quality & Value”.
Figure 12. Freshness & Quality Campaign
8. Conclusion
As to conclude , Keells Super has taken many actions to overcome the blunder , the price
war , increasing competition and losing market share, by introducing EHSP is the first action
by JMSL and it was also become a blunder because of not focused on the correct segment,
then lower than lowest price campaign was carried out , the results were positive towards
Keells super where they actually gained a 100% growth on consumers switching. and the
result of this Keells gained profit and revenue increase. But Keells could not keep up the
price promise for long-term ,due to this the customer base drop to 50,000 and lost of profits
as well see figure 7. Due to this continuous blunder and failure of Keells Super we have made
some recommendations to regain its position and also to gain long term competitive
advantages in the modern trade market.
18 | P a g e
9. Recommendations
The first recommendations proposed based on Ansoff and Perter’s Generic strategies practice
and applications are;
1. Re-Launch “Super Pola” or introduce a fresh retail brand to carter to the

lower end market by.
 Re-launch super pola as generic touch targeting the rural, suburban of the
country, without making the same error made in 2003 with EHSP.
 Segment and target market, such as lower end and middle class where they
shop their products weekly and value for money mind essential products not
the luxury products.
 Keells should create a warfare with Cargills par with their activities.
 Communication should be clear to consumers , if not might lead again to
failure. also create an atmosphere to feel as local with staff trained to use lame
language with consumers and local .
 Since we recommend opening up at least 100 super pola outlets island wide
JMSL need average 20Million per outlet, so JMSL can go in to an IPO to raise
the funds.
 Since the JKH is the logistic partner for Lanka IOC, they can open up super
pola on their fuel stations. Currently Lanka IOC have about 150 outlets around
the country covering major towns.
2. Penetrate and defend the existing market share by

 “Keells Super” should be further foreground to be the best in retail brand with
values and highest quality such as HSBC credit card payments, bakery and
pay or buy Union Assurance insurance policies.
 Increase the shopping variety’s of “K choice” private labels , where currently
it has on 87 labels.
 take measure on acquisition strategies to acquire Laugfs Super and other
small super market chains.
19 | P a g e
 Tune up the online shopping arm which is E-Tailing by fresh home delivery
with more geographical coverage, where currently in Colombo only with 1%
market share and it can be increased more by widening its delivery coverage
and tie up other online shopping site like “Kapruka”. Also advertise and
educate people on online shopping and the benefits for the consumers such as
time saving.
 Offer special discounts according to the consumer buying pattern.
3. Open New super market under the name “Keells Extra”

 This will be a new super market for the existing market under with a new
brand identity with benchmarking Tesco outlet strategy.
 Introduce a high end luxurious hyper market specifically cater to upper class
segment such as Tesco Extra, with this limited number of outlets with high
health conscious organic foods with eco friendly environment, also sell
imported global brands to cater to the Expatriates and for the consumers who
live in luxury apartments and condominiums in Colombo.
 Also essentially carry out test marketing prior to launch these one stop shops
and super pola.
20 | P a g e
4. Become the Cost Leader

 Increase the direct sourcing both local and imported; such as going to the
suppliers directly this would be advantage on provide supplies to super pola
and Keells extra.
 Since the JKH logistics have alliance with North and East , they can get the
best sourcing of Vegetables, Rice, Dairy and fresh from these areas by
maintain a proper supply chain management.
 Also strength the supply chain with modern technologies such as low
inventories and real-time merchandizing.
 Through the CSR arm of JKH “John Keells Foundation” can start
sustainability in various parts of the country such as adopting a fishing village
or farming.
 Use existing database of NEXUS loyalty card members to offer tailored
promotions and track their consumer buying patterns.
21 | P a g e
Bibliography
DeChernatony, L. a. (1998). Creating Powerful Brands (2 ed.). Oxford: Butterworth
Heinemann.
Lanka, C. B. (2010/2011). Annual Report.
Nielsen, A. (2011). Research Data.
PLC, C. C. (2011). Annual Report. Colombo: Cargills Ceylon PLC.
Porter, M. E. Competitive Strategy. In Techniques for Analyzing Industries and Competitors.
Reports, J. F. (2011). Colombo: JayKay Marketing (Pvt) Ltd.
Yoram, W. (1984). Going to market:new twists for some old tricks. Wharton Magazine (4).
22 | P a g e
Annexure
1.JMSL Brief
The company profile of JMSL is a subsidiary of John Keells Holdings established in 1991;
main function is administration and management of “Keells Super” super markets, currently
42 branches and 6 franchised outlets with “Super K” brand. Current employee force is 1800
and 12000 stock keeping units in outlets. Most recent adaptation of JMSL is to move towards
apparel and fashion under the brand “KEKO”. The brand equity of Keells Super is Rs.8
Billion currently and the Vision is to be one of the leading brands in retail in the region.
2. Positioning Errors
This is where the customer has a blurred and unclear idea of the brand.
Under Positioning This occurs when customers cannot readily identify the brand and its
features.
Where the consumers have too limited awareness of the brand, this happen
Over Positioning when organizations try to create idea of the product in the mind than the
actual product attributes.
Confused Positioning This is where consumers have a confused opinion of the brand.
Double Positioning Where in which consumers do not claims of the brand.
3.Retai Markt Landscape

Based on the above research information Modern Trade market share is just 16.4% compared
to the Traditional trade market share 83.6%. It is a huge opportunity for Keells Super to enter
to the untapped markets with different strategies which will be proposed in the
recommendations. And also the modern trade market is growing annually with 34% which
means more consumers are shopping through supermarkets and new chains are been also
introduced ,such as Arpico, Laufs and Sunup. However from the above information we can
see there is a huge growth potential for Keells Super in the modern trade market.
23 | P a g e
4. Turnover Vs Outlets comparison in 2010/2011
2010/2011 Turnover in LKR Bn & No.of Outlets
Laugfs Sunups
Arpico Super
Keells Super
Cargills Food
0 50 100 150 200

Cargills Food Keells Super Arpico Super Laugfs Sunups
Turnover Bn 29 10.2 10.1 3.1
Outlets 163 42 11 25
Outlets
The fastest growing super market chain is Cargills which has 163 outlets; the second follower
is Keells Super with 42 outlets and followed by Arpico super centre and Laugfs. By analysing
the above information it is clear that is even though Cargills have a faster growth but their
turnover is lower when compared with higher number of outlets it has , on the other hand
where keells Super have only have 42 outlets but the turnover is high.
24 | P a g e
5. Porters 5 Force Analysis
HIGH
Threat of
new
entrants
HIGH HIGH Industry is

Extremely
Bargaining Industry Bargaining High
power of power of
suppliers Rivalry customers Competitive
Threat of
substitutes
HIGH
 Industry Rivalry – such as large number of Super markets, Slow market Growth, High
Fixed costs, Low levels of product differentiation.
 Threat of New entrants – Economies of scale, less restrictions to open a super market,
little brand franchise.
 Bargaining power of Customers – Concentrated, mare choices for consumers.
 Threat of Substitutes – Traditional shops and other mum & pop shops.
 Bargaining power of suppliers – suppliers concentrated, powerful consumers, cost to
switch suppliers.
25 | P a g e
6. JMSL, Keells Super Audit

STRENGTHS WEAKNESSES
1. Joh Keells brand strength worth Rs.65 1. tremendously high rivalry within the industry
Billion. 2. Very high staff turnover over the Keells
2. Extremely motivated and trained staff. Super as well as in the industry, which is
3. Conveniently located to cater the target 120% per annum.
market. 3. Price has become the main differentiator
4. Strong IT backbone with SAP. above all the other attributes.
5. Extra high quality and hygiene products 4. Decrease in market share of keells super from
6. Consultancy from International experts such 25% to 17% and rapid growth of Cargills and
as Tesco and Wal-Mart. Arpico.
7. Trading up consumers by following other
players.
7. Expansion of Cargills
Source: Cargills PLC Annual Report
26 | P a g e
8. Consumer Research Information.
The Consumer research was carried out in following locations and done for 100 consumers
KEELLS outlets- Narahenpita, Mahabage, Marrine drive and Kiribathgoda
Cargills outlets – Nawala, Wattala, Park road and Kadawatha
27 | P a g e
9.Elephant House Super Pola

To overcome the blunder, Elephant house super pola was initially introduced in 2003 to
attract the lower end and middle class market and also to compete with Cargills.
Initially it was open on premier locations such as Wellawatta, Union Place, Borella where
most of the high class consumers shop, first mistake was choosing the wromg location, this
was confused the consumers further, because Elephant House brand had sophisticated image
on consumers. So wrong communication was created in the market and consumers , another
reason EHSP to fail was the Union issues.
Apart from the above reasons EHSP to failed due to un trained staff where Super pola staff
was outsourced to Abans, where staff was not well trained and another reason is Super pola
had only 2800 SKU’s where an average super market need to have minimum of 7000 SKU’s.
Due to all these issues EHSP was withdrawn from the market after 18 months operation.
10. Lower than Lowest price campaign
28 | P a g e
After the Elephant house super pola was withdrawn from the market Keells Super was
continuously losing the market share and losing profit, so after 5 years Keells came out with
the tactical campaign “Lower than Lowest Price” in 2008 to attack the Cargills “Lowest
price” campaign.
29 | P a g e

MBA Marketing Keels

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MBA Marketing Keels

Uploaded by

Copyright:

Available Formats

University of Wales Institute, Cardiff (UWIC)

Master of Business Administration (MBA)

Mohamed Mohideen Mohamed Rishard

It is a pleasure to thank Mrs.Nilanthi D Silva of Nielsons Research Company for giving us

Great deals appreciated go to contributions of my Marketing lecturers in ICBT Campus and

Table of Contents cont..

5. Porters 5 Force Analysis ..................................................................................................25

DeChenatony and McDonald define brand as “A successful brand an identifiable product,

2. Retail Market Landscape of Sri Lanka

Figure 1.Market Overview

Source: (Lanka, 2010/2011) Central Bank Annual report 2010/2011

3. Modern Trade Competitor Analysis

3.1. Turnover Vs Outlets comparison in 2010/2011

2010/2011 Turnover in LKR Bn & No.of Outlets

0 50 100 150 200

Figure 2.Modern Trade Competitor Analysis

3.2. Modern Trade Market Share

Source: Cargills PLC and JMSL

Figure 3.Modern Trade Market Share

3.3. Porter’s 5 Force Analysis

4. Marketing Audit of JMSL

4.1. Strength and Weaknesses

Figure 4. JMSL Strength & Weaknesses

4.2. Present Target Consumer of Keells super

 Earning more than Rs.100K a month.

 Earning more than Rs.50K a month.

5. Current Positioning map of Modern Trade in Sri Lanka

Value addition &

6. Marketing Mistake of Keells Super

6.1. Evolution of the Blunder

6.2. Benchmarking with the Market Leader

Source: JMSL Financial Reports

Figure 7. Keells Financial Performance

Source: Cargills PLC Annual Report

Figure 8. Cargills Financial Performance

6.3. Research to Identify Consumer perception

Source: Market Research

Figure 9. Consumer Research Data

7. Measures taken by JMSL to defeat the mistake

7.1. Introduction of Elephant House Super Pola

Figure 10. First EHSP at Wellawatta

7.2. Lower than Lowest Price Campaign

Figure 11. Lower than Lowest Price Campaign

After the campaign in 2008 the following were

 Increased the customer base from 87,000 to

7.3 Freshness & Quality Campaign

Figure 12. Freshness & Quality Campaign

1. Re-Launch “Super Pola” or introduce a fresh retail brand to carter to the

2. Penetrate and defend the existing market share by

3. Open New super market under the name “Keells Extra”

4. Become the Cost Leader

Lanka, C. B. (2010/2011). Annual Report.

Nielsen, A. (2011). Research Data.

PLC, C. C. (2011). Annual Report. Colombo: Cargills Ceylon PLC.

Porter, M. E. Competitive Strategy. In Techniques for Analyzing Industries and Competitors.

Reports, J. F. (2011). Colombo: JayKay Marketing (Pvt) Ltd.

3.Retai Markt Landscape

4. Turnover Vs Outlets comparison in 2010/2011

2010/2011 Turnover in LKR Bn & No.of Outlets

0 50 100 150 200

5. Porters 5 Force Analysis

HIGH HIGH Industry is