Analysis of Business Environment Doc
Added on 2020-12-10
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Executive SummarySoftlogic Glomark is one of the upcoming branded shopping destination whereas theSri Lankan consumer can experience the variety of global branded products andservice quality. But still the Glomark is in the development phase owning a very littlemarket share compared to other market leaders. As a developing brand Glomark has to utilize company resources and competencies togain a higher market share with a growth rate in future. Company has a diversifiedproduct portfolio with numerous product range available. With the 25 yearsexcellence in Sri Lankan market of Softlogic group Glomark will be able to increasethe market growth with customer intimacy. Following report evaluates the current position held by the Glomark in modern tradeindustry and forecasted marketing objectives for two years up ahead. Company needto leverage the advancements of social and economic factors in Sri Lanka whileinvesting their assets and competencies at the right market combination with valuedcompany offering. 1
Table of Contents1Introduction......................................................................................................................51.1Retail sector..............................................................................................................61.2Softlogic modern trade supermarket chain (Glomark)..............................................72Market overview of the Modern Trade industry..............................................................82.1Current market situation of Glomark........................................................................92.2Analysis of Business environment...........................................................................112.2.1PESTEL analysis for Glomark...........................................................................112.2.2SWOT analysis for Glomark.............................................................................133Current marketing mix of the Glomark...........................................................................154Current STP mix of the Glomark.....................................................................................165Marketing objectives of Glomark for next 02 years........................................................185.1STP for the new marketing objectives.....................................................................195.1.1Segmentation..................................................................................................195.1.2Targeting.........................................................................................................195.1.3Positioning......................................................................................................196Ansoff Growth Matrix.....................................................................................................207Marketing mix of the new marketing objectives............................................................217.1Product...................................................................................................................217.2Place........................................................................................................................217.3Price........................................................................................................................217.4Promotion...............................................................................................................218Activity plan....................................................................................................................229Marketing Budget...........................................................................................................2310Sales forecast for the next two years..............................................................................2411Forecasted P/l for the year 2020/2021...........................................................................2512Monitoring and Control..................................................................................................2613References......................................................................................................................272
1Introduction Softlogic Holdings PLC is a well renowned dynamic conglomerate in Sri Lanka over25 years of excellence. It implemented its operations in 1991 as a softwaredevelopment company. After number of decades it has been evolved to a well-established local business firm with various strategic alliances being the localfranchisee for multinational trademarks such as Samsung, Nokia, Levis, TommyHilfiger so forth. Softlogic group is having employment base over 8,000 withgenerating turnover of more than USD 300 MN. Total revenue for the year 2018 hasbeen increased from 25% compared to 2017 financial year with the number of aroundRS. 12,000 Bn.[ CITATION CSE18 \l 1033 ][ CITATION Sof19 \l 1033 ]Softlogic Holdings can be derived into 06 different sectors that are enforced withmultiple strategic business units under each. Those are Healthcare sector, ICT sector,Retail chain, Finance services, Leisure Destinations and Automobile sector. Differentstrategic business units are consisted under above with vast number of brands and substrategic business units with its own unique customer value proposition and marketingstrategies. Company structure of the Softlogic Holdings PLC,3Softlogic Holdings PLCICTRetail Healthcare Financial Automobiles leisure
1.1Retail sector Under this sector Softlogics Holdings provide multinational brands with moresophisticated product variety ensuring customer satisfaction. Company is following amulti brand along with a multi-channel strategy enhancing Sri Lankan retailerconsumer lifestyles and shopper experience. With number of reputed world classbrands retail sector is targeting on mass market and favorable niche market segments.Retail sector of the Softlogic Holdings has contributed Rs. 21 Bn revenue to the groupwith 16% profit increment in the financial year 2018. There are consumer electronics brands such as Whirlpool, Panasonic, and Nokia etc.Under branded apparel category the Softlogic Company is owning Odel and otherglobal brands as Levis, Puma, Adidas, Galleria and so forth. Further ahead there arehouse hold furniture as well as office equipment items available with Softlogic. Underretail sector Softlogic Holdings PLC possess the franchisee ownership for BurgerKing in Sri Lanka which is worlds’ second largest hamburger processing company.Sri Lankan economy has been occupied vast development after the war crisis whichended by year 2009. Current economy is a consumer driven economy which has a50% contribution from household consumption for the GDP in year 2017. Recordshows that consumer market has been increased by 6% over past five years withuprising disposable income of consumers. With the identification of above criteria,company decided to enter for the modern trade industry of Sri Lanka with retailsupermarket chain. [ CITATION CSE18 \l 1033 ]4
1.2Softlogic modern trade supermarket chain (Glomark) Since the country is currently at the upper edge of lower middle income consumerneeds and wants will be diversified in future. Also with the impact of development intechnological aspects and urbanization in the country modern trade industry of the SriLanka is about to gain a robust development with changing lifestyles of consumers.With these identification company implemented its modern trade supermarket chainsubsidiary as Glomark. The first outlet started its operations at Delkanda with variousproduct range of grocery items including global brands, pharmacy, electronics andfurniture equipped with self-check-out counters. [ CITATION Sof18 \l 1033 ]Glomark being an inspirational supermarket chain it has unique vale proposition forcustomer as wide range of global products available with more convenient and speedycustomer service powered with self- checkout counters, Wi-Fi inside the premises andhome delivery service. Those assets would provide a competitive advantage for theGlomark over other modern trade retail shops. Glomark has taken up the customerexperience to a new dimension with sophisticated shopper experience providing theminternational level experience. As it has been mentioned above rapid growth inconsumer market and changing lifestyles of consumers will uplift Glomark with along term stable growth in FMCG sector as well. Moreover Glomark will be fullyfledged with technological aspects as it is intended by the company to implement ane-commerce platform for the subsidiary. Glomark widened its product depth with theinitiation of Glomark essentials: a mini type of Glomark located at selective locationsas Asiri Hospitals Colombo and Asiri Kandy Hospital along with Delkanda, Kottawaand Kurunegala Glomark Supermarket outlets.[ CITATION The19 \l 1033 ]5
2Market overview of the Modern Trade industry Mainly there are two types of trades as General trade: small scaling retail shops whichare traditional grocery shops catering to small regional customer segments (familyowned grocery shops) and second is Modern trade: larger scale shops most commonlyknown as supermarkets or hypermarkets equipped with numerous FMCG goods andwell organized level customer satisfaction. As above figure intends larger portion of Sri Lankan consumer market is still ownedby less organized grocery stores while less portion of modern trade is owned by fewsupermarket chains. Upcoming future modern trade share will be intensified declininggeneral trade share. Cargills Food City, Arpico, Kells, Laughs are prominentsupermarket chains that has been in the industry for years. Nearly around 80% of themarket share is dominated by Food City, Keells and Arpico. Glomark and SparInternational are two recently launched supermarket chains in the Sri Lanka. Rivalryin the industry is intensified with distribution strategy (locations and outletappearance), supplier strategy and service provided strategies. 6Consumer retail marketGeneral Trade (Coverage around 30%)Number of grocery stores as proprietory and family businessesModern Trade (Coverage around 15%)FoodCity, Keells, Arpico, Laughs, Glomark, Spar International, Sathosa
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