Marketing Strategy Of Cargills Ceylon

Executive Summery

Today marketing can grant wide collaboration which is become the most fundamental influencing factor that helps to create the “Globalization” where it helps to the business and trades in to an different era from the Barter System. In other terms marketing helps to people in order to find the exact product or service which may satisfy their needs and wants. Today this situation implemented as a career through a broad process of each and every organisation’s marketing department. Cargills Ceylon trust on that each consumers expectations are not matched other than to the power of marketing which can directing consumers expectations in to an one way because Cargills has create their own passion of marketing by being the “Mudalali” to reach to the consumer desires. Within the research discussion it’s demonstrate how the Cargills Ceylon (Food City Chain) achieve the sustainable competitive strategy by practicing the marketing definition through a actionable marketing mix including communication, creating, distributing, promotion and pricing in order to facilitate an exchange relationship with customers, channel partners and society.

Table of Contents

Executive Summery. 1

1.0 Introduction.. 3

2.0 Company Overview.. 4

3.0 Marketing Philosophy. 4

3.1 Product Strategy. 5

3.2 Distribution Strategy. 6

3.3 Promotion Mix. 7

3.4 Pricing Strategy. 8

4.0 Company Sustain Diplomacy. 9

5.0 Conclusion.. 10

6.0 Reference List 11

Appendix 1 (Supply Chain Of Cargills) 13

1.0 Introduction

Today the every organisation perspective for its vision is to create sustain and profitable environment in order to prove future accomplishments of its goals and objectives. Regard on that Marketing is a vital role which helps to an organisation from broad rangers. The marketing definition state that as iterative process where organisation works with and adapts to the market and then the process of communicating, promoting, distributing, creating and pricing products activities facilitate profitable exchange relationship with customers, channel partners and society (ECU, 2013). Today Cargills Ceylon Company transcend a strong marketing philosophy in order to capture its customers, channel partners and society by using a strategic marketing mix within the large accomplishment in the food and beverage industry.

The purpose of this report is to demonstrate how the Cargills Ceylon achieve success by practicing the definition of marketing that create the strong suitability strategy to being competitive to the other industries.  As a marketing manager of Cargills Ceylon, within this research discussion mainly its implies the operation of marketing philosophy by analyzing the production strategy, promotion mix, distribution and pricing strategy and company sustain diplomacy to create an exchange relationship relate to the units learning’s and understandings of different organisation philosophies in videos which can demonstrate the outcomes of the real world examples (IBM, Travelocity, Lonely Planet, Vans, Washburn Guitars, Jordan’s furniture, Harley Davidson and Ben & jerry).

2.0 Company Overview

The most branded shopping store Cargills Food City is the largest food city chain in Sri Lanka that becomes the most acceptable place for consumer choices. Cargill’s Ceylon (PLC) is a Sri Lankan corporate recognized in 1844 and built on a strong foundation of values and ethics. Its investment in retail has made the Cargills retail arm Cargills Food City and its unstoppable innovation on the foods including manufacturing brands such as Cargills Supremo , Cargills Magic (Ice-cream), Cargills Finest, Cargills Kist etc. Currently Cargills Ceylon consist more than 15 subsidiary companies leading its future sectoral growth. The sustainable strategy of Cargills directly influenced by its marketing department in order to accomplishment of the Marketing philosophy of the organisation to meet the needs of the consumers and to meet the organisation satisfaction by offering innovative and cost-effective products and services across the Sri Lanka (Cargills, 2012).

3.0 Marketing Philosophy

The sustainable growth of the Cargills is mainly influenced by the Strategic Marketing Philosophy of the organisation in order to expansive marketing vision to be a global corporate role model in community-friendly nationalized development, the marketing concept (Organisation Philosophy) has formed for the fundamental responsibility to generate the customer focus marketingto provide products that satisfying customer’s desires through a coordinated set of activities which tolerate organisation to accomplish its goals and objectives such as in Jordan’s Furniture store, they have providing a customer focused marketing philosophy where the every customer can enjoy and walking through the store with more different functions within attracting marketing concept (Tatelman, n.d.). There purpose of marketing philosophy is Cargills is to achieve the balance between produce more value for consumers and business markets against making profits for the organisation which has to adopt marketing orientation to work more effectively and efficiently than its competitors in order to generate competitive advantage. (Keells, Arpico Super centre etc.) (Cargills, 2012)      

Cargill’s target market selection process involve in the specific manufacturing of its products which not aiming a specific segments of customers and Cargills target market including the every single customarily in order  to establish their needs and wants. Identifying the correct target market is the main access to implementing a success marketing strategy.(As an example according to the video, Harley Davidson targeting the “women motorcycling market” that may directly effect gender gap that influence the women’s’ active and individualism that were increased their targeted profitability (Targeting strategy). In 1996, 6.4% of bikes were for women. In 2003 every 1 of 10 goes for a woman (Harley Davidson, n.d.) As a strong motivational factor they had offer a powerful image as an “active woman” to buy the products and as an example BOQ. The effects of the marketing environment of cargills is essentially influencing by the competitive forces in brand competitors and product competitors such as the keels, elephant house etc (Cargills, 2012).

As a marketing manager in order to operates organisation within the marketing philosophy by understanding the definition, organisation believes that marketing as a iterative process that organisation has to works and through the strategic process of communicating, creating, distributing, promoting and pricing products activities to generate profitable exchange environment to its valued consumers, channel partners and to society in order to be successful in relationships which can influence the superior levels of Customer satisfaction, Profitability and Sustainability of the organisation.

3.1 Product Strategy

Today the sustainability of the Cargills is about the exact product which offered to its customers by controlling a comparative product strategy to its consumer and business markets. Cargills including convenience and shopping products more than the unsought and specialty brands by aiming end consumer needs. The competitiveness of their strategy mainly focusing core products, formal product and augmented product decisions where by understanding the customer behaviour of each levels. The product line (Cargills Magic- vanilla, chocolate, double delight, butter scotch etc) and the product mix (Width & Depth) is mainly including in productions such as Cargills Kist, Cargills Magic, Cargills Pharmaceutical etc. which are mostly influence the consumers to its production philosophy. The marketing department attentive that each product  life cycle can change the customer values and vital as planning tool and it consist different customer groups through adoption process that generate to forecast sales and allowing the business strategies to be planned in concert with the marketing mix to maximise the brand’s potential during each stage (Cargills, n.d.)

By focusing the organisationbranding strategy today it become the unique competitive aspect of Cargills by giving value to the buyers which influence their emotional involvement, interpretation and memory.[As an example Ben & Jerry product, branding  and packaging concept in order to provide super premium brands to the consumer they are differentiated and highly competitive in the market (Kelley, n.d.).]The Cargills Magic ice-cream consist strong brand loyalty between customers more than 10 years time and become one of the fastest growing ice-cream brand in Sri Lanka by offering 44 different flavours which enfeeble the brand’s vulnerabilityto competitors actions such as Elehant House, Kotmale etc.[ According to the video, Lonely planet’s has involved their branding concept to implement its global campaign within two hundred countries to attract the awareness from its customers (Lonely Planet, n.d.)Mainly Cargills developed with family branding by using the firms products with the same name such as Cargills Kist, Cargills Supremo, Cargills Finest Milca, Cargills Magic. In order to building and sustaining the brand through its organisation culture to create a competitive advantage within appropriate actions an behaviours also by internal implementation of customer service, operations , support and delivery can generate the organisation future through suitability strategy (Cargills, n.d.)

3.2 Distribution Strategy

Distribution process is the vital part of an organisation in order to make the products available to customer when and where they want to purchase them. Cargills is an one of the largest food supply chain and it is responsible by the Cargills Distributors Pvt Ltd. Cargills retail has expanded their outlets in to every district in the country and currently holding 194 outlets in island wide  and targeting to expand it 240 outlets in 2014 by achieving a highly profitable environment. Being competitive in the market Cargills mainly concern about the place by aiming three factors such as population, life style and income levels. Cargills maintaining warehouses and collecting centres in different location where one can be Mattakkuliya (Cargills, n.d.). By collecting their own through direct channels and that become an advantage for Cargills over competitors. Cargills distinctive supply chain strategies categorized in to branded products and perishable products. 

Their main distribution strategy include in Direct Marketing where processing through own wholesaling and own retailing using the Pull Strategy  by promoting directed consumer to stimulate consumer demand by using advertising and publicity consumer incentives. The distribution system of Cargills is unique for them because the Millers ltd involve to the system not as third party as their own distribution section (Figure 01, Appendix 01) where it creates the customer relationship management CRM system to exploit the information from supply chain partners to help all channel members to make strategic marketing decision in order to develop and sustain desirable customer relationship (Cargills, n.d.). The logistics management of Cargills has developed in order to achieve its supply chain objectives by considering the time, place, possession and form utilities of the channels. The different case in Travelocity positioning in order to provide the search engine marketing to the consumers travelling and the network marketing has become new and different experience today. (Glueck, n.d.)

 

3.3 Promotion Mix

 Communication is the primary strategic tool that Cargills has implemented to promote its innovative products to the consumer and business markets. In order to promote its products, Cargills involved mainly with the integrated marketing communication (Communication Mix) tools such as advertising, personal selling, sales promotion, product placement and public relation. Advertising is one of a primary aspect of Cargills in order to use mass media to publish its new innovation focusing on the product advertising and comparative advertising such as aiming seasonal price cutting, sales discounting items (vegetable prices, End-consumer products) by using radio, television and mainly newspapers are become strategic location (Product Placement) to accomplish the product’s target market.by considering the promotion aspect of VANS (Shoes) they are focusing sportise younger generation through online, TV and outdoor advertising to interact the target market using event and cause marketing (Stanger, n.d.).

 In order to create and maintain the favourable relationship Cargills and its stakeholders company accesses with the Public relation tactics by using mainly news (press) releases, press conferences about up-coming events and new product launches such as Cargills Kist products etc. which can facilitate to maintain a positive public visibility and to build the corporate image and goodwill among on organisation’s publics (Cargills, 2012). Today word of mouth is a most influencing tactic that cargills has repeating its customers through their successive production philosophy. As an direct inducement, by offering added value or incentive for the cargills products to resellers, sales people or consumer Sales promotion tool(discount offers) is an major function by offering more than millions of promotion acts (As an examples Coca Cola Free Tumbler With Two 1.5L Bottles, Monthly Best buy promotions) in order to generate profitable environment for the organisation (Cargills, 2012).

3.4 Pricing Strategy

Today the main price market competition between Cargills and Keells has affected the most consumers’ awareness. Cargills involve strategic pricing techniques in order to control the better production cost and target market of the organisation as well as to the changers of the competitors actions. Being the low cost sellercargills maintain effective pricing strategy comparing to the Keells, Arpico and Sathosa by providing flexibility and standardise product to its customers. The major advantage is that Cargills generate distinguishing brands from the competition within their differentiate features (Finest), promotions (Monthly Best Buy), packaging and the quality (Cargills, n.d.)According to the Ben Abel, VP Marketing, Washburn they are promise to customers that each guitar represent the finest quality at possible price which are compatible with the different retail price levels (MSRP) (Abel, n.d.).

The pricing objectives of the organisation provide the higher quality products at a reasonable price to the consumers which can effects the customer interference and response where the Cargills consumers are more value and price conscious in order to concern the quality and low price aspects of product. In order to sustain the organisation philosophy Cargills engage in Competition-Based pricing which can help to accomplish the pricing objectives of increasing organisation profit and market share. By comparing to the other competitors such as Keells and Arpico super centre their pricing strategy combining with the periodic and random discounting which offers the “Monthly Best buy” system by reducing prices of certain items. The success of the Cargills is the Penetration Pricing which creates a long-term attentiveness mostly in rural area (Cargills, n.d.)

4.0 Company Sustain Diplomacy

 The behind the scene of sustain marketing philosophy ofCargills is vital in order to create the strong relationship with its customers, channel partners and society. The strategic implementation of the iterative marketing process of the Cargills enhanced the profitable exchange relationship in order to accomplish and maintain customer relationship and supply chain process such as the IBM has create their sales people in order to give satisfiedsolutions to its customer needs (IBM, n.d.).Theirforwarding steps in to the sustain the organisation vision and culture in long-term by offering unlimited capacity of benefits to its customers and to the society marketing process has generate the ingenious and innovative diplomacy to the organisations (Cargills, n.d.)

 The marketing philosophy of Cargills starts from a single seed in a farmer’s field to homes and hearths halfway across Sri Lanka Cargills brings ideas together to help satisfy the customers’ needs. The main organisation competitive advantage drive through the agribusiness model that achieved global identification for linking farmers and entrepreneurs to the market during a sustainable and comprehensive value creation process and the differentiate of its product categories (Cargills, 2012). To succeed that challenge they collaborate with the customers to create better products and services, streamlines, supply chain, reduce cost and move goods to every corner of Sri Lanka which that the exchange relationship has to be strong and accurate. Being innovative and helping to the farmers to get higher yields from fewer acres by learning to be flexibility in marketing their harvest.The sustainability strategy is to make corporate social responsibility an important part of everything they do. It is company-wideobligation that channels theircapability and knowledge to create sustainable value for every direct and indirect stakeholder that organisation touch (Cargills, n.d.)

5.0 Conclusion

 The discussion illustrate within an every single step of a Cargills Ceylon organisation philosophy provide successful understanding of its marketing strategies that may investigate the final result of successful maintenance in customer relationship management which above research discussion has made. The comparative marketing environment in Cargills has accomplished its marketing mix including the product, price, place and promotion through generating sustain competitive advantage to its competitors and to provide and facilities profitable exchange relationship with customers, channel partners and society which can gain the future organisation economy harmony and prosperity.

As outcomes suggest by analysing videos and the unit learning’s that the every organisation contents its unique marketing strategy which can motivate and influence the other competitors in order to maximise its profit and productivity to meet specific predetermined objectives. As an key point every marketing department of an organisation has a responsibility to be critical in evolution of the marketing strategies which can develop and sustain its future marketing philosophy.

6.0 Reference List

1.    Washburn Guitars. [Video file]. (n.d.). Retrieved Ausgust, 21, 2013, From:http://blackboard.ecu.edu.au/webapps/portal/frameset.jsp?tab_tab_group_id=null&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_584004_1%26url%3D

2.    Cargills Ceylon (Pvt) Ltd. [n.d.]. Retrieved August 2013, from: http://www.cargillsceylon.com/Default.aspx

3.    Cargills Ceylon (Pvt) Ltd. Annual Reports 2012/2011. Retrieved August 2013, from:  http://www.cargillsceylon.com/InvestorRelations/downloads/annual_reports/Cargills_Annual_Report_2012.pdf

4.    International Business Computers [Video file]. (n.d.). Retrieved August 18, 2013, from : http://blackboard.ecu.edu.au/webapps/portal/frameset.jsp?tab_tab_group_id=null&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_584004_1%26url%3D

5.    Jordan’s Furniture.  [Video file]. (n.d.). Retrieved August 26, 2013, from : http://blackboard.ecu.edu.au/webapps/portal/frameset.jsp?tab_tab_group_id=null&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_584004_1%26url%3D

6.    Harley Davidson [Video file]. (n.d.). Business Markets and Buying Behaviour. Retrieved August 05, 2013, from; http://blackboard.ecu.edu.au/webapps/portal/frameset.jsp?tab_tab_group_id=null&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_584004_1%26url%3D

7.    Repositioning Travelocity [Video file]. (n.d.). Retrieved August, 23, 2013, from :http://blackboard.ecu.edu.au/webapps/portal/frameset.jsp?tab_tab_group_id=null&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_584004_1%26url%3D

8.    Lonely Planet [Video file]. (n.d.). Marketing Research and Information System. Retrieved August 05 2013, from:http://blackboard.ecu.edu.au/webapps/portal/frameset.jsp?tab_tab_group_id=null&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_584004_1%26url%3D

9.    Ben and Jerry Social Responsibility. [Video file]. (n.d.).Retrieved August, 21, 2013, from :http://blackboard.ecu.edu.au/webapps/portal/frameset.jsp?tab_tab_group_id=null&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_584004_1%26url%3D

Vans leverage Athletes. [Video file]. (n.d.).Retrieved August, 29, from : http://blackboard.ecu.edu.au/webapps/portal/frameset.jsp?tab_tab_group_id=null&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_584004_1%26url%3D