MBA Assignment: International Marketing of Keells Super in Australia

This report provides a comprehensive analysis of Keells Super's international marketing strategy, specifically focusing on its expansion into the Australian market. The report begins with an introduction to Keells Super and its innovative approach in the Sri Lankan market, including the use of a mobile app and 3D modeling. It then utilizes Bowman's strategy clock to identify the product status and justifies the choice of Australia as the target country, highlighting the increasing demand for supermarkets and the opportunities presented by a busy consumer base. The report examines the competitive landscape, applies the Diamond model to assess country factors, and defines the target market, primarily working women and households. It also analyzes macro-environmental factors (political, economic, social, technological, environmental, and legal) and segments the market based on demographics, income, and behavior. The report concludes by selecting a segment and providing justification for the choice, followed by a detailed examination of the 7Ps of marketing, referencing relevant sources throughout the analysis.

Running Head: KEELLS SUPER 0
International Marketing

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Contents
Introduction about the Keells Super......................................................................................................2
Product status by using Bowman’s strategy clock.................................................................................2
Country chosen for the expansion of Keells Super................................................................................3
Status of competitiveness.....................................................................................................................4
Diamond model application to Keells....................................................................................................4
Target market for the Keells Super........................................................................................................4
Macro Environmental factors................................................................................................................5
Segmentation of Keells in the new market............................................................................................6
Selected segment..................................................................................................................................7
Justification of selected segment..........................................................................................................7
7ps of Keells Super................................................................................................................................7
References...........................................................................................................................................10

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Introduction about the Keells Super
John Keells Holding has the biggest listed Conglomerate in the Colombo Stock Exchange. It
has several businesses. Under this, Keells Super is new such business of it. Keells
Supermarket is the supermarket chain in Sri Lanka. Keells supermarket has done several
innovations in the Sri Lankan supermarket. It has introduced the first mobile app in the Sri
Lanka. This app has received well by the customers. In the last year, Keells has unveiled the
store concept and new brand identity in the Colombo (Weerasiri, 2015). It has brought new
features in its supermarket chain with the help of Whippet. Apart from the traditional designs
and sketches, 3D model has been used with the help of VR headset. It believes that it has not
only received the success by selling products but also by providing the better customer
service. It has also started the door to door service through which it tends to deliver the goods
at the doorstep. It also provides the extra customer service to some of the senior citizens and
mothers. These services are provided to those who are unable to prepare the foodstuffs for the
cooking.
Product status by using Bowman’s strategy clock
In order to identify the status of the product, Bowman strategy clock can be used.

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As per the Bowman strategy clock, it should adopt the lower price as well as focused
differentiation strategy. It is because while moving to the new country for the business,
customers will not easily purchase the product. They tend to purchase the product when the
firm if either offering at the lower price or ensuring some differentiation in its products.
Country chosen for the expansion of Keells Super
Australia as the country is chosen for the expansion of the operations of Keells Super. In
Australia, retailing supermarkets, demand for the lower price with better quality product is
also increasing. It is because retailing sector is also booming in Australia. However,
competition is also taking place in the retailing sector of the country. Keells Super still has
the opportunity to enter into the market through its innovative approach. Since the consumers
are busy, due to this they are demanding technology. This reason also presents the several
opportunities for Keels Super to ensure the demand of its store by ensuring the several
technological changes. It can ensure the delivery of the list of customers that is demanded by
them. It can also demand the several professionals by delivering their items at their working
area. It is true that Australian people are mostly working. Due to the working population, it
can target the working segment too in its retailing store (Mallik and Farhan, 2018). Due to the
busy schedule of people, it is not easy for them to go to the store and stand in queue. It has
led the Australian supermarket chains to adopt several innovative changes that will help the
customers across Australia.
Besides this, consumers of Australia also prefer to buy fresh products so that they can
consume the perishable products. By keeping this in mind, it has the opportunity to grow. It
can also appoint a person who will take the orders of different customers one day ago. On the
next next day morning, it can start delivery the products of consumers. This will help it in
ensuring the fast delivery of its products. In the recent time too, customers require the fast
delivery due to their busy lives. Coming up with the huge range of products with the online
delivery, it can tap the market with huge customers (Mcdonald and Wilson, 2016).
Australia is also said to be the foodie nation. This has increased the demand of restaurants
too. It can also ensure the tie up with the several restaurants by delivery its raw material. The
delivering of ingredients to these restaurants in lower price will increase the demand of its

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products. Besides this, it can also ensure the mobile phone contract by making the most of the
significant retail footprint.
Status of competitiveness
Diamond model application to Keells
Country status Opportunity
Demand conditions Increasing move toward the
online segment for the easy
access. Besides this, customers
also want the several products
under one roof.
It can also enter into the
fashion segment like other
supermarket chain.
Target market for the Keells Super
It is true that the retail supermarket is growing well in the market. It will ensure the target
market in two segments. In its first segment, the target market will be the completely
Target audience
 Working women
 Household segment
Competitors
 Woolworths
 Aldi
 Wesfarmers
Firm strategy and
rivalry
Huge competition
among existing
rivalry firms in
Australia
Factor conditions
 Availability of
skilled
employees
 Availability of
raw material
due to the
presence of
several
suppliers
Demand conditions
 Increasing
demand of
supermarke
t chains due
to the
presence of
several
products
under one
roof.
Government
 Presence
of
governm
ent
policies in
order to
assist the
retailing
supermar
kets.
Supportive
industries
 Presence
of several
locally
based
suppliers

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household segment. Under this segment, the main target will be the working women because
they mostly purchase the household groceries and products. In addition to this, it will also
target the youth by starting several healthy drinks and chocolates. In this way, it will be
engaged mainly in the day to day necessity items by targeting the household segment. By
targeting the working people, Keells will continue to enhance the loyalty and offer innovative
things to customers and a great retail experience.
In the recent time, most of the customers like to shop online. Due to this, it will expand its
wing in the online shopping. This will ensure the services faster and save the time of
customers. It will also lead to the increment in the demand of its store. It will therefore listen
to the several customers who want the simple, in store and online shopping. It is found that
the online shoppers that it has targeted of mostly women. Integration and digital innovation
will be the part of Keells Super. This strategy will be made in the target market in order to
satisfy the customers. By looking at the entire digital advances, it will ensure an enriched as
well as satisfying larger customer base (baker, 2016).
Macro Environmental factors
Political factors: in the current time, political conditions truly affect the retailing industry in
Australia. due to this, John Keels will ensure of all the government regulations while moving
to Australia. In addition to this, government of Australia has also come up with the
competition policy that eliminates the competition among major players. Besides this,
government in Australia is also stabilised that will help the Keells super in doing its business
effectively.
Economic Factors: economic conditions also affect the company in positive as well as
negative way. Several fluctuations occur in the economy sometimes. Due to this, consumers
also do not spend too much money (Richard and Devin, 2016). In such a case, it hampers the
growth and productivity of the firm. Besides this, fluctuations in the exchange rate of
currency also tend to affect the retail industry to a larger extent. In this way, Keells Super will
ensure the knowledge of economic fluctuations in proper manner.
Social factors: In the recent time, Australia customers are moving more toward the
technology. Due to this, several retailing supermarket giant have adopted the various

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technological advancement. Besides this, customers are also demanding more greener and
healthier life cycle. Due to this, it becomes essential for the retailing supermarket to fulfil the
corporate social responsibility. Social factors also includes the religion, gender, norms, sex
and population size. The entire factors keep on changing due the changing demanding.
Australian retailing industry is also booming due to the increasing demand of customers
regarding healthy things (Dolnicar, Grün and Leisch, 2018).
Technological factors: in the present time, technology has taken the wings in every industry.
several technological changes are also coming up in the retailing industry that pushes the
competitors to come up with more innovative idea. Innovation and creativity at the same time
has become the essential part of the retailing industry. Due to the increasing competition too,
industries in order to grow more are ensuring technological changes. Due to this reason only,
many strong players has adopted the several technologies in order to satisfy the needs of the
customers. Several organisations also started the scan & go technology so that customer does
not have to wait for long time in queue (Tandon, Kiran and Sah, 2017). In Australia,
smartphone technology and mobile payment have the great potential in transforming the
shopping experience of customers. In this way, technological changes are essential in the
retailing industry.
Environment factors: In the recent time, several rules and regulations are made by the
government to ensure the smooth functioning of the country. Government of Australia has
also banned the plastic bags that tend to affect the business. Due to this, Keells Super will
also ensure the same in order to run its business effectively (Tidd and Bessant, 2018).
Legal Factors: In Australian retailing business, government has made the several laws and
policies. Due to this, Keells will also require to work on its own policies. At the same, safety
as well as health laws will also be formulated so that employees will provided the best
working environment to work.
Segmentation of Keells in the new market
Segmentation means dividing the whole market into the several sections depends on the
several criteria. Segmentation is also done by using several criteria. Under the demographic
segmentation, it will mainly target the women and household people. Therefore, women will
be the main market in segmentation. In the income segmentation, it will target the higher as

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well as idle class people. It is because household is necessity of the entire people whether
they are rich or poor.
Under the behavioural segmentation, it has targeted those people who have the tendency to
do the grocery shopping in bulk. In addition to this, it has also included those customers who
want more profit form the products. On the bulk purchasing of its products, it will ensure the
proper discount so that customer are able to make purchase at one time. It has targeted then
household segment or working women. Due to this, it has also included the online selling
(Khan, 2014).
Psychographic segmentation: Keells Super will provide the products to such people who
really want to make purchase their grocery shopping in lower price with best quality. Due to
this, its retailing products are for those people who are really busy and could not make time to
go to the store. Due to this, it will appoint a person who will help it in delivering the order of
customer at their home.
Selected segment
Segmentation base Sub segment Justification
Demographic Working women and household
segments.
It is because Australian mostly
have working women who
either prefer to shop once in a
month or ensure the online
buying.
Behavioural It has targeted those customers
who have the tendency to shop
products in bulk
It will give the easy selling of its
products.
Justification of selected segment
By using the MASDA model, Keells will select the segment. MASDA stands for measurable,
accessible, substantial, differentiable, and actionable. The segment that is chosen in the market can
be measured by the number of sales, as well as easily accessible due to the presence of online
segment. Besides this, it also has higher potential. In addition to this, it can also take actions if its
sales goes down.
7ps of Keells Super
Product: It will include the different product categories. By offering the affordable food
products, it will ensure the premium quality. The entire products will also be sourced from
the trusted suppliers after doing the proper research. It will include several products such as

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fresh vegetables, fruits, beauty and health products, stationary, clothes, household goods, as
well as electronic products.
Price: It will keep the prices low in order to build the strong market base. The best quality at
the cheap price will be ensured so that every customer can afford the products. The charging
of lower price will be done so that it is easy for Keells Super to enter the market. Due to the
high completion too, it will keep the prices low (Venter, Wright and Dibb, 2015).
Place: It will ensure the opening of its stores in different regions of Australia. The opening of
different retail outlets will aware about the brand of Keells Super. Besides this, the
procurement of all the products will be done in bulk from several suppliers. Further, it will be
stored in the warehouse in order to maintain the same quality of its products (Gajanayake,
Gajanayake and Surangi, 2011). It will also ensure the very less wastage of its products at the
time of transportation of goods.
Promotion: In order to enter into the new market, it will sue the advertisement so that people
will come to about its supermarket chain. In addition to this, it will also sue the different
promotional channels for attracting the customers. It will also start the different offers where
customers will able to purchase the products in lower price every week. The communication
of such offers will be done through the newspaper. In addition to this, advertisement through
electronic, print as well as display media will also be done (Reimers, Chao and Gorman,
2016).
People
It will hire the competent and skilled employees who can work better in the organisation. in
each department, it will keep the leader which will assist in the better working of every
worker. The primary purpose of the Keells Super is to hire more and more people from
Australia. This will also help it in increasing the opportunity at Australia. Due to this, it will
also pay attention to the process of hiring by ensuring the recruitment of competent and
skilled people. It will also ensure the training of its employees so that they can ensure the
proper communication with its customers. It will also adopt the Destination Zero Policy in
which zero harm will be caused to the employees as well as environment.
Process: Under the supermarket chain of Keells Super, the primary motive is to use the
consumer friendly methods. It will include the providing of quick billing service as we;; as

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supportive and friendly staff. It will also ensure the customer feedback regularly so that it can
make changes accordingly. Similarly, based on the feedbacks of customers, it will make the
changes in its future processes.
Physical evidence: Keells Super will ensure the eye catching and clean stores so that
customers will also found the hygiene at the time of making their purchase. Under its
supermarket, products will be placed in such a manner so that it will be easy for the
customers to easily find out the products. Due to this, it will use the website and mobile app.
It will be easy to operate as well as attractive. It will also make use of posters so that it will
prove to be effective for the customer to search for any product that they want.

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References
Baker, M.J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.
Chanaka, U., Wijeratne, A.W. and Achchuthan, S., 2014. An assessment of retail service
quality: an empirical study of the RSQS in Sri Lankan supermarkets. developing country
studies, 4(3), pp.78-90.
Dolnicar, S., Grün, B. and Leisch, F., 2018. Market Segmentation Analysis. In Market
Segmentation Analysis (pp. 11-22). Springer, Singapore.
Gajanayake, R., Gajanayake, S. and Surangi, H.A.K.N.S., 2011, March. The impact of
selected visual merchandising techniques on patronage intentions in supermarkets (study
based on Colombo district). In Proceedings of the second international conference on
business and economic research(pp. 1130-1154).
Khan, M.T., 2014. The concept of'marketing mix'and its elements (a conceptual review
paper). International journal of information, business and management, 6(2), p.95.
Mallik, A. and Farhan, S.N., 2018. Customer Centric Approach Using 7ps of Marketing
Mix. International Journal of Innovative Knowledge Concepts, 6(11), pp.136-149.
McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit
from them. John Wiley & Sons.
Naseri, M.B. and Elliott, G., 2011. Role of demographics, social connectedness and prior
internet experience in adoption of online shopping: Applications for direct
marketing. Journal of Targeting, Measurement and Analysis for Marketing, 19(2), pp.69-84.
Reimers, V., Chao, C.W. and Gorman, S., 2016. Permission email marketing and its
influence on online shopping. Asia Pacific Journal of Marketing and Logistics, 28(2),
pp.308-322.
Richards, C., & Devin, B. (2016). Powerful supermarkets push the cost of food waste onto
suppliers, charities. The Conversation, (29).

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Tandon, U., Kiran, R. and Sah, A., 2017. Analyzing customer satisfaction: users perspective
towards online shopping. Nankai Business Review International, 8(3), pp.266-288.
Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. United States: John Wiley & Sons.
Venter, P., Wright, A. and Dibb, S., 2015. Performing market segmentation: a performative
perspective. Journal of Marketing Management, 31(1-2), pp.62-83.
Weerasiri, R.A.S., 2015. A Study on Service Quality and Customer Satisfaction of
Supermarkets in Sri Lanka. Sri Lanka Journal of Marketing, 1(2), pp.36-46.