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CONTEMPORARYMARKETINGFORSUSTAINABILITY(CMS)
Assignment Topic ONLINE RETAILING IN SRI LANKA
Student Name
Reg. No.
December 2019Examination
Postgraduate Diploma in Marketing
Sri Lanka Institute of Marketing
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Assignment Marking Scheme
December 2019
Subject Contemporary Marketing for Sustainability (CMS)
Student RegistrationNumber 0000020067
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PostgraduateDiplomainMarketing
Individual Assignment December2019
Contemporary MarketingforSustainability (CMS)
Examination /Assignment Registration
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14th to 27th October 2019
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28th to 31st October 2019
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ONLINE RETAILING IN SRI LANKA
BACKGROUND
A significant number ofsellersinSri Lankacompetetogetintotheshoppingbasketsofmillions
of Sri Lankans throughonline retailingbusiness.Sri Lanka’smoderntradepenetrationisstillat
15% compared to the 30% amongst regional peers. The rising per capita income, a growing middle
class, rapid urbanization and changing consumption patterns can be considered as the
contributing factors for thegrowth ofmodern trade. The mainplayers in themodern retail trade
sector in Sri Lanka are Cargills Food City, Keells Super, Laugfs Sunup, Arpico, Lanka Sathosa,
Glowmark and SPAR.
Despite an over 30% internet penetration inthe countryandbeing amultibillion rupee industry
in Sri Lanka, online retailing has not really picked up. People buy electronics online, but they still
go through the hassle of grocery offline shopping. KeellsSuper.com has tried online retailing for
nearly two decades now, but it has not picked up as a major trend.
Online grocery shopping has its own set of benefits to the consumers. Consumers do not have to
worry about parking space when grocery shopping and having to carry heavy and bulky shopping
bagsback home when they can save theirtime andenergybyautomating their weekly grocery
list and getting it delivered to their doorstep.
You have been appointed as a digital campaign manager for astart-up business tosetupanonline
groceryshopping portal targeting Sri Lankans. Inyour role as a digitalcampaignmanageryou
have been requested to develop an effective digital strategy to grow the online grocery shopping
portal among the Sri Lankans.
TASK ONE
The company is planning to invest a significant amount ondigital communicationplatforms to
build the online shopping portal brand. It has identified the need to build a long-term digital
strategy to gainsuccess from the campaign.
I. Identify three (03) objectives for the online shopping portal
II. Conduct a comprehensive online competitor and consumer analysis
Guideline Note 01
In this task students must develop a brand name for the online shopping portal. It is important
that the students identify SMART objectives in respect to the online shopping portal and identify
its online competitors and target audience. When identifying the target audience students should
develop consumer personas along with the consumer journey.
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TASK TWO
The company has identified the importance of having a consistent brand
presence on all digital platforms and are wondering whether their presence
is needed in all available social media platforms.
I. Identify four (04) digital communication methods to reach out the target
audience to achieve the setobjectives.
II. Identify key digital/social platforms the online shopping portal must be
present, with suitable justification.
III. Develop a social campaign including content marketing and influencer
marketing to achieve setobjectives.
Guideline Note 02
Students have to identify suitable digital communication platforms to
promote the online shopping portal. These identified digitalcommunication
platforms should relate to the target audience and set objectives. Students
should be able to identify the proper social and digital platforms with
justifications. Finally students should come up with a campaign idea and use
content marketing and influencer marketing as two tactics.
IMPORTANT:
Pleaserefrainfrom copying-and-pasting information from the Internet or
another source and make sure to reference your work according to the
Harvard referencing format.
Word allocation for each
task
Task Content Weightage
Task one 50%
Task two 50%
Total ( word count 3000 – 3500) 100%
Note: Please refer the given assignment marking scheme all marks allocation
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Table of Contents
Executive Summary...................................................................................................................... 11
1 Introduction to Dailyneeds Lanka (Pvt) Ltd.......................................................................... 12
1.1 Objectives of Dailyneeds Lanka (Pvt) Ltd. .................................................................... 14
1.2 Consumer Analysis ........................................................................................................ 15
1.3 Overview of the Industry............................................................................................ 15,16
1.4 Media habbits and consumption background ................................................................. 16
1.5 Identifying and describing demographics of the customer......................................... 17,18
1.6 Market Segmentation...................................................................................................... 18
1.6.1 Market Segmentation Dailyneeds Lanka (Pvt)Ltd ................................................... 19,20
1.6.2 Customer Profile ....................................................................................................... 20,21
1.6.3 Customer Journy....................................................................................................... 21,22
2 Competitor Analysis .........................................................................................................22-27
2.1 Perceptual Map............................................................................................................... 27
2.2 Porter’s Five Forces........................................................................................................ 28
2.2.1 Bargaining Power of Customers ............................................................................. 28
2.2.2 Bargaining Power of Suppliers ............................................................................... 29
2.2.3 Threat to New Entrants ........................................................................................... 29
2.2.4 Threat of Substitutes ............................................................................................... 29
2.2.5 Competitive Rivalry................................................................................................ 30
3 Task Two ............................................................................................................................... 31
3.1 Marketing Paln of Dailyneeds Lanka(Pvt) Ltd. ........................................................31-33
3.2 Social media platforms Dailyneeds Lanka should present........................................34-36
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3.3 Social Markeing Campaign............................................................................................. 36
* Content Marketing................................................................................................... 37
* Suitable Storytelling to Dailyneeds Lanka (Pvt)Ltd................................................ 38
* Influencer Marketing.......................................................................................... 38,39
* Identifying social media influencers –Sri Lanka..................................................... 40
4 Conclusion.............................................................................................................................. 41
5 Referances.......................................................................................................................... 42,43
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Executive Summary
Dailyneeds Lanka (Pvt) Ltd. is an organization specializing in grocery retail, established in
Sri Lanka. dailyneedslanka has managed to identify the gap of the grocery retail market on
the online platforms since there is no reliable and successful online grocery retail store,
dailyneedslanka has decided has capitalize on that opportunity.
This report is a detailed description of the proposed plan and the strategy which will be
used in order to successfully enter the market and sustain in the market whilst obtain success
in the field. In order to effectively do so, the consumer and competitor analysis was
conducted to identify and evaluate the consumers and competitors and to formulate strategies
to gain a positive outcome for the betterment of the organization.
Moreover, this report also included a marketing plan since marketing is an integral part of
a business which is one of the key factors deciding the success of an organization in a
market.
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01. Introduction
Daily Needs Lanka Private Limited
Daily Needs Lanka Private Limited is a private limited company where two brothers and
an external investor own the company. The company was established on 2019. The sharing
ratio is to be equal amongst the three owners. The owners’ decided to form a private limited
company since the main advantage of this is limited liability. This means that owners’ will
not lose their personal assets in the case of bankruptcy of the organization. The
organization’s main asset is its website because it acts as the platform where trade can take
place at the convenience of both the customers’ and the organization. Moreover, daily needs
will also have a physical outlet in Colombo 02, so that it can satisfy and at the same time
encourage consumers who prefer offline shopping to switch to the online website.
The owners of the dialyneeds private limited are owned Sri Lanka’s leading agricultural
product exporting company. The company called dailyneeds agriculture is owned vegetable
farms in several locations in island wide. Especially most of their agricultural products been
exported to Europe countries including United Kingdom & France.
Furthermore, the name dailyneeds signifies Online Grocery Mart, since it is unique and
catchy and might be able to successfully obtain the attention of the customers from the
competitors who have already captured the offline grocery market, i.e. keells super, arpico
super centers, cargills, etc.
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Selected brand name: dailyneedslanka.lk
Daily Needs Agriculture Limited is one of the leading agricultural manufacturing and
exporting company in Sri Lanka since 2002. The company has interested to start online
grocery shopping website. Hence, dailyneeds will remain on the website name because its
well-known company name among Sri Lankan customers, because they have been supplied
fresh vegetables and fruits to all Sri Lankan major modern trade super market channels.
Specially, when selecting the business name (website name for online shopping) must
make sure the domain name is available or not. Without a domain name no presence on the
internet. As per the LK Domain Registry the selected website ‘dailyneedslanka.lk’ domain is
available for registration.
dailyneedslanka.lk wills more familiar name to the Sri Lankan consumers to fulfill their
daily grocery needs through convenience online shopping portal.
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1.1 Objectives of Daily Needs Lanka Private Limited
Objectives refer to the specific outcomes that an organization wishes to be achieved within
a period of time using the available resources (Business Dictionary, 2019). The
organizational objectives play a significant role in deciding its direction since employees will
work towards meeting this objective. Therefore, it is necessary that the organization sets
effective objectives. In order to do, the organization must comply with the SMART
Objectives Criteria which lays down five main criteria’s an objective must fulfill in order to
be effective (Professional Academy, 2019).
Source: http://gonderpr.com/smart-objectives-better-measure-pr-campaign-outcomes/
Since it is of paramount importance, using three SMART Objective Criteria, core
objectives of dailyneedslanka.lk were set.
 Increases of the brand name among the customers up to 25 % from the target
customers by 03rd quarter in 2019/20 financial year – Awareness
 Increase the time spent on the site up to 05 minutes by end of the 3rd quarter in 2019 –
Consideration
 Increasing the average order size (average revenue per basket/average spend) up to
LKR 1,500/- by end of 2019/20 financial year- Conversion
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1.2 Consumer Analysis
Consumers are the kings of the market. Therefore, it is important to first find out who are
the customers for dailyneedlanka.lk. Moreover, it is important to understand the customers
and analyze their needs and wants to provide the best solution. Hence, a consumer analysis
was conducted for dailyneedslanaka’s customers. A customer analysis refers to the process
where information about the customer is obtained via market research (MBA Skool, 2019).
The information could include needs of the consumer, target market and the demographics of
the customers. This information is very important to segment the market and formulate the
marketing plan.
Wheels of consumer analysis - Source: https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/11977-
consumer-analysis.html
There are certain steps that need to be followed to conduct an effective consumer analysis:
1. Overview of the industry
2. Identifying and describing demographics of the customer
3. Project future changes
4. Determine and describe consumer buying behavior
5. Competitive Analysis
6. Gap identification
1.3 Overview of the Industry
Sri Lanka’s online marketplace has been taking an inclining trend, which has opened up a
lot of opportunities for investor. In addition to this, the internet penetration of the population
Page|16
is at 34% in 2018 from 5.8% in 2008 (World Bank, 2019). The increase has been significant
over the decade and is known to grow further.
Source: https://www.slideshare.net/DataReportal/digital-2019-sri-lanka-january-2019-v01
In order to capitalize on this opportunity that has opened up, a new business venture
namely dailyneedslanka.lk, will enter the markets of the online grocery retail store. The
enterprise promises fresh, healthy and high-quality groceries to be delivered to the
customer’s doorstep hence making its entrance into the market more appealing than that of
the existing competitors of the market, i.e. keelssuper.lk, grocery.lk
1.4 Media habits and consumption back ground in Sri Lanka
In Sri Lanka for a nation that has 20.98 million populations and growing, here are some of
the facts and statistics about its internet and social media usage.
 7.13 million users use the internet
 6.2 million active social media users, 91 % of them access it through mobile devices
in Sri Lanka
 28.71 million mobile phone connections in Sri Lanka
 34 % of the total population are internet users
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 6 million people are engage with Facebook
 1.1 million people are having Instagram account
 980 thousand people are with LinkedIn
Source: https://www.slideshare.net/DataReportal/digital-2019-sri-lanka-january-2019-v01
1.5 Identifying and Describing Demographics of the Customer
Demographics are defined as the quantitative and qualitative aspects of the human
population (Business Dictionary, 2019). The quantitative aspects include composition,
density, distribution, growth, movement, structure of the population, etc. whereas the
qualitative aspects are more of the sociological factors such as education, social class, wealth,
etc.
 Income level: middle-high income earners
 Age: 18-34 (millennials) & 35-54 (GenX)
 Gender : Male & Female
 Education : High School Graduate or more educational
 Family : Consumers with 1 + children / two + adults in the family
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As per the statics published by Department of Census and Statistic, Sri Lanka age 60 years
and above groups show low computer literacy rates.
Source: http://www.statistics.gov.lk/education/ComputerLiteracy/ComputerLiteracy-2018Q1-Q2-final.pdf
1.6 Market Segmentation Industry
Market segmentation refers to the division of the market into separate segments on the
basis of different consumer characteristics, i.e. demographics – high income earners. These
segments include consumers who have similar traits, interests, needs and wants, etc. hence
may react similarly as a group to a marketing strategy. This is an important process as it
allows the organization to point out the potential customer group and choose a strategy that
satisfies them the best instead of focusing on each individual saving the organization
resources and time which may be put to efficient use for the betterment of the organization
(Track Maven, 2019).
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There different ways in which an organization may segment its market. The three most
common ways are (Small Business, 2019):
 Demographics
 Geographic
 Psychographics
1.6.1 Market segmentation of dailyneedslanka.lk
Understanding the importance of market segmentation, dailyneedslanka has segmented
their market to identify the group of potential customers. The market segmentation is
represented in the table below.
Market Segmentation of dailyneedslanka(Pvt) Ltd.
Demographics Geographic Psychographics
Income Level: Middle-high
income earners will be
targeted because they have
the affordability of the
services dailyneedslanaka.lk
plans to provide.
Age: 18-34 & 35-54 will be
the age group targeted by
dailyneeds.lk because it was
identified it is this age group
that makes grocery purchases
for the household. Moreover,
18-45 is age group that was
identified to use online
platforms, i.e. social media,
online banking, online
shopping, etc.
Online (Internet):
dailyneedslanaka’s main
service is online grocery
retailing, the consumers who
have access to the online
platforms.
Urbanized:
dailyneedslanka’s retail
outlet will be located in
Colombo, Sri Lanka which is
the most urbanized city of
the Sri Lanka. In the future,
urbanized cities could be a
potential investment since
majority of the target
population reside in
urbanized cities, i.e. Mt.
Lifestyle: Majority of the
individuals who have access
to the online platform do not
know how to access it
effectively. Therefore, the
individuals who have a
modern lifestyle surrounded
by growing internet presence
and online platforms, i.e.
social media.
Consumer Group: Both
locals and tourists will be
targeted by dailyneedslanka
Health Concerns: Recently
the market has been looking
for a healthy solution and
since dailyneedslanka
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Lavinia, Wattala, etc. (pick
up points will be allocated)
promises fresh, healthy and
high-quality groceries
because they have already
supplied fresh vegetables and
fruits to the market
1.6.2 Customer Profile
Customer profile refers to the description of customers of an organization based on their
demographics, backgrounds, hobbies and interests (Fit Small Business, 2019). The customer
profile plays an integral role for business that provides ongoing services, subscriptions, and
product-based services.
According to the services that will be provided by dailyneedslanka will be appealing to the
teenagers, young adults, adults and senior citizens who purchase grocery for their household.
The online platform is more focused towards the age group of 18 – 45 years since they are
the notable age group who have access to the internet platform and are willing to purchase
online due to the convenience.
Whereas the 45+ years old group is more used to the offline grocery shopping where they
can hand pick their groceries. To meet the needs of such customers, dailyneedslanka provides
the order pickup outlet which will be located in Colombo, Sri Lanka.
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1.6.3 Consumer Journey
Customer journey refers to the cumulative experience a customer undergoes when
interacting with an organization/brand (Survey Monkey, 2019). The customer journey is a
detailed description of how being a customer of the organization is like.
Dailyneedslanka.lk promises that the groceries will be fresh, healthy and of high quality
when purchased. Now the customers have a choice of making the purchase online and getting
it delivered at home or use online to ordering and can pick up from the store. This provides
more convenience to the customer due to the availability and convenience of the
product/service. Hence provides a good and positive customer satisfaction leading to a happy
customer which creates brand loyalty. It is dailyneedslanka’s core objective to provide the
products and service which serve the needs and wants of the customers the best in order to
maintain satisfied customers which is an important competitive advantage to the
organization.
E commerce is not just buying online. It is new way of doing things, of interacting with
products and brands. People don’t by things now, they buy experiences.
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Source: https://www.pinterest.com/pin/426997608400167812/
The Customer Journey Stages
 Awareness
This is first stage that potential customers are learns about the brand
 Consideration
In this stage, that customer has a need and the selected product or service can be a
potential solution. Then customer weighing pros and cons against other offers
 Conversion
This is the stage that, first order gets through the customer
 Retention
At this stage of the customer journey, either keep or lose the customer
 Advocacy
One of the important stages in the customer journey, for most the customer journey
ends after few purchases. The most engaged customers will become brand
ambassadors
02. Competitor Analysis
It is evident that dailyneedslanka will face competition in the market therefore it is
important to conduct a competitor analysis in order to analyze the competition and to identify
the opportunities and threats in the market to formulate an appropriate strategy to capitalize
on it. Competitor analysis refers to the assessment of the strengths and weaknesses of current
and potential customers (Entrpreneur, 2019). The competitor analysis is a critical part of the
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organization’s marketing plan since it enables the organization to identify how the
product/service is offered unique in order to attract the target market.
Grocery Pal
“Saving time for good things in life’’
Grocery Pal is an online grocery site www.grocerypal.lk launched by Lfinity Private
Limited, the digital business arm of Laugfs Holdings. It linked with Laughs super markets
and number of other major FMCG suppliers, with a wide variety of over 3000 products to
choose from and range of payment options. The site offers customers with the additional
convenience of sending in grocery lists via email or whatsapp and having the products
delivered to the customer’s doorstep.
Grocery Pal is targeting middle class and upper middle class customer segments and
catering to niche market. Grocery Pal’s competitive advantage is brand equity and reliable
sourcing partners. Furthermore, Grocery Pal offers organic vegetables and baked goods as
well. Their service currently stretches across Colombo 1 to 15 and surrounding suburbs up to
Wattala, Kelaniya, Malambe, Kottawa and Mt.Lavinia.
Considering the strengths of the Grocery Pal, it’s owned by Lfinity Limited, a subsidiary
of Laugfs Holding which is one of the largest diversified business conglomerates in Sri
Lanka. The company was financially strong and there are many pick up locations available.
Also strong supplier chains and strong presence offline and online will be the key strengths
of the company.
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Analyzing the digital marketing strategy of Grocery Pal, it’s active in all digital media
platforms including social media as well.
Source: https://www.youtube.com/channel/UChxCcCP-Zh65lVsTMI3_j6A
Source: https://www.facebook.com/grocerypal.lk/
Grocery Pal is week in building awareness in social media, especially on YouTube there is
only just 16 subscribers engaged with the Grocery Pal you tube channel. Also it has no
regular updates; last post was published two years back.
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Keels Super
Keelssuper.com is the e-commerce website introduced by keels Supermarket in 2002
which owned by John Keels Holdings, as the first only online super market in the country.
John Keels Holding PLC is a Sri Lankan blue chip conglomerate. As at today there are over
25,000 registered customers for keelssuper.com, and keels super is able to provide a
continues and consistent service to its shoppers both at home and abroad, enabling Sri
Lankans living in overseas to send a variety of super market goods to their loved once at
home. In 2013, keels super brings mobile shopping for the first time in its industry, adding
ease, and convenience to its shoppers.
Keels Super is targeting upper middle class and upper class customer segments. Keels
super’s competitive advantage is brand equity, reliable sourcing partners and own food
processing. Furthermore, Keels Super guaranteed the freshness of their vegetables, fruits and
meat products. Their service is currently available in several major cities in Sri Lanka.
Keels super is financially strong while it’s owned by John Keels Holdings PLC and there
are many super markets located in island wide.
Analyzing the digital marketing strategy of Keels Super, it’s very much strong in all digital
media platforms including social media with comparing the Grocery Pal.
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Source: https://www.youtube.com/user/KeellsSuperlk
Source: https://www.facebook.com/Keells.SL/
Comparing with the Grocery Pal, Keels Super is strong in social media. As per the face
book statistics, there over 217,000 + people like the Keels super face book page and over
218,000 + people follow the same.
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Keelssuper.com trafic overview – October 2019
Source: https://www.similarweb.com/website/keellssuper.com
2.1 Perceptual Map
A perceptual map is a tool which provides a visual representation of the customer’s
perceptions of the attributes of the organization, brand, product or service, etc. This allows
the organization to identify the perceptions of the customers about the strengths of the
organization in the market (Group Map, 2019).
The diagram below represents the perceptual map of dailyneedslanka and its main
competitors on the basis of price and quality of the products and services offered.
Price
Quality
High
Low High
Low
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2.2 Porter’s Five Forces
Porter’s Five Forces is a framework that identifies and analyzes the five main forces that
impact the competition of the industry (Chappelow, 2019). This framework allows the
organization to identify gaps, strengths, weaknesses, opportunities and threats. This is an
efficient tool to conduct a competitor analysis.
Source: https://www.slideshare.net/hitaksha/porters-five-forces-model-of-competitive-analysis
2.2.1 Bargaining Power of Customers – High
The bargaining power of customers is high because there are many key players, i.e.
keellssuper.com that offer similar services of online grocery retailing. This provides the
customers with more choices to satisfy a need/want. Customers are kings of any
organization/industry, hence providing leverage for the customer to be able to negotiate
terms and conditions.
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Consumers today are more sophisticated. Consumers are less commit to impulsive-buying,
yet are more willing to study about product features and evaluate their options before
purchasing online.
This can be mitigated by providing a unique product/service which will make them want to
purchase dailyneedslanka’s products and services instead of its competitors.
2.2.2 Bargaining Power of Suppliers – Medium
The bargaining power of suppliers is medium since dailyneedslanka. Since, corporates
conditions vary, whether the power is suppliers are strong should be determined accordingly.
But to survive in the online grocery retailing industry, keeping a close relationship with the
suppliers is imperative. Especially in the grocery industry suppliers have enough power to
regulate the industry.
The bargaining power of suppliers is comparatively low for the large supermarket chains
like Keels Super, Arpico and Cargills. This will enable those large super market channels to
enjoy discounts and other complimentary services which will result in economies of scale,
i.e. purchasing economies of scale, which enable the business to be more competitive.
2.2.3 Threat to New Entrants – Medium
The threat of new entrant is moderate since the grocery retail market is currently
dominated by key players, i.e. keells, that dailyneedslanka will be competing with. Due to the
high competition and the high level of investment required, not all investor can afford such
project.
This threat can be dealt with by increasing barriers to entry, such as competition, price of
products/services, patents, etc. The harder it is to enter the market, the safer the market share
of dailyneedslanka will be.
2.2.4 Threat of Substitutes – High
The threat of substitutes is high since there are other products/services provided by the
competitors providing a greater variety of choices for products/services hence choosing one
which satisfies those best.
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In order to attract the customers towards purchasing products/services from
dailyneedslanka, it should provide a unique product/service which will provide a unique
experience by the customer hence making dailyneedslanka’s products a more desirable
purchase.
2.2.5 Competitive Rivalry – High
The industry rivalry is high since the competition faced by dailyneedslanka is intense since
the competitors are all established firms of Sri Lanka which have established their presence
in the market of offline grocery shopping where the online grocery shopping hasn’t been a
great hit. Therefore, in order to successfully provide a unique and efficient online grocery
shopping platform it is important that dailyneedslanka capitalizes on the opportunities
identified in order to create a sustainable competitive advantage to remain competitive and
move forward of the competition.
to-us-companies/
03. Task Two
3.1 Marketing Plan of Dailyneeds Lanka (Pvt) Ltd.
Marketing is an integral part of an organization as it defines how the organization plans to
sell its products/service and attract customers to purchase their products/service. Therefore, it
is important to draft a marketing plan to ensure successful marketing. Marketing plan
outlines the marketing strategy of the organization within a set period of time, i.e. year,
month (Venngage, 2019). The marketing plan is important to draft before selling a product to
the market since it allows the organization to formulate an appropriate strategy to deal with
the target market.
In this case where dailyneedslanka is initiating online grocery retail store which is a gap
identified in the market since the competitors who have tried this concept have not gained
much success. Therefore, it is important to create the awareness in the market. Since it is an
online platform the main medium of communicating to the consumers is the use of
internet/online platforms.
Before selecting the suitable digital marketing communication methods to
dailyneedslanka.lk to reach out the target audience and to achieve the set objectives, below
are the most effective digital marketing methods worldwide in 2018.
Source: https://www.statista.com/statistics/190858/most-effective-online-marketing-channels-according- Page | 31
Page|32
In order to successfully create its presence, dailyneedslanka has chosen below four most
appropriate digital communication platforms to engage with the customers, spread awareness
of the brand and implement the marketing plan.
 Google Search adds
Search advertising is a powerful form of advertising because people who search on Google
reveal a lot about their intent when they search. Advertisers have ability to bid on key words
so that their ads show up when people are looking for exactly the kinds of things they sell.
 Email Marketing
Once targeted the email address for customers or potential customers distributing creative
email campaigns can be really effective at driving web site traffic and generating sales.
However, simply putting together an email is not going to cut it if not optimizing the email
for mobile devises. Most ecommerce customers check their inbox from their smart phones,
not from a desktop or laptop. Emails that get opened on mobile devises, otherwise it will be
waste of time and money.
 Content Optimization
Content optimization is the process of writing content in a way that it can reach the largest
possible target audience. The process of optimizing content should include making sure
associated key words are present. There are five steps to perfectly optimizing any content to
improve digital marketing.
1. Search and social media keyword research
2. Define buyer personas and buying cycle
3. Build trust by using the right words
4. Create quality of the content
5. Optimize engagement with visuals such as videos & images
Page|33
 Google display ads Facebook ads
Google display ads are the visual banner ads can see on advertising supported sites
everywhere. According to Google, the display network reaches over 90 % of global internet
users expanding across over 2 million sites.
Facebook ads are targeted to users based on their location, demographic and profile
information. Facebook’s most important is ad targeting option.
Achieve dailyneedslanka’s objectives using digital marketing methods
Awareness Consideration Conversion
Facebook ads Facebook ads Facebook ads
Google display ads Google display ads
Google search ads Google search ads
Direct placement ads
Email marketing
Mobile marketing
Content marketing Content marketing
Influencer marketing Influencer marketing
Page|34
3.2 Social Media Platforms that dailyneedslanka should be present
Source: https://sales-push.com/blog/top-5-tools-to-optimize-social-media-marketing/
Social media marketing refers to the process of using social media platforms to attract
traffic and attention. By using social media, dailyneedslanka can increase exposure and build
meaningful relationship with their target customers.
Social Media Platform Justification
Facebook Facebook is one of the largest social media
platforms which millions of users active at all
times. Therefore, creating a presence on Facebook
would increase the reach of its digital
communication to the customers. Moreover,
customers can use Facebook to follow the
dailyneedslanka page to be updated about
promotions, events, activities, etc. which allows
the business to directly engage with the customers
by taking their feedback into consideration and
providing feedback in order to satisfy the
customer’s need.
Page|35
Instagram Instagram is one of the growing social media
platforms which have been increasingly used for
online businesses and stores which allow
customers to purchase through Instagram itself.
Hence this is an ideal platform that
dailyneedslanka should establish its presence by
uploading pictures and stories of the upcoming
promotions, events and activities to spread
awareness as well as to enable the customers to
provide their feedback of their experience for
further improvements.
Twitter Twitter has been the social media where
organizations and celebrities have established their
active presence. Twitter can be used as an effective
platform to gather feedback and tweets (both
negative and positive) from customers about their
experience with dailyneedslanka. This provides the
opportunity to create a positive and healthy
relationship with the customers to make them feel
important, engaged and a part of the brand.
LinkedIn LinkedIn is a professional social media channel
and dailyneedslanka can reach professionals by
uploading pictures and stories of the convenience
and easy grocery shopping experiences.
YouTube In Sri Lanka, YouTube has over 2.5 million unique
daily visitors and approximately 6.5 million
monthly unique visitors in 2018 (YouTube stats,
June 2018) According to the stats, publishing
videos on YouTube and advertising on YouTube
will create more awareness to the dailyneedslanka
Page|36
Social Media Advertising Audiences 2019 – Sri Lanka
Source: https://www.slideshare.net/DataReportal/digital-2019-sri-lanka-january-2019-v01
3.3 Social Marketing Campaign
Source: https://jarvee.com/effective-steps-of-a-social-media-marketing-campaign/
Page|37
Social marketing campaign refers to the development and integration of marketing
concepts and other methods to influence the behaviors which will benefit the individuals and
the communities as a whole, for the greater social good (What Works, 2019).
In order to successfully develop a social marketing campaign to Daily Needs Lanka Pvt
Ltd, the two main techniques were used:
 Content Marketing
 Influencer Marketing
Content Marketing
Content marketing refers to the strategic marketing strategy where creating and
distributing valuable, relevant and consistent content to the customers in order to attract and
retain a clearly defined audience to drive profitable customer action (Content Marketing
Institute, 2019).
Source: http://mondo.marketing/wp-content/uploads/2013/10/
Page|38
The above figure represents the content marketing cycle which needs to be followed in
order to implement the content marketing strategy successful. An efficient content marketing
strategy would result in increased sales as clear and defined content would attract customers
to purchase products/services from dailyneedslanka.lk since they have been clearly notified
about the activity/event.
Story telling is a great tool to create an emotional response in target audience. It can make
them feel humor, anger, sadness, hope, inspiration and more. A storytelling is important
because it can make people feel something and can make them take action.
Suitable story to dailyneedslanka.lk
Story: The family living in close to Dehiwala including husband, wife and 02 kids aged 5
and 8. Husband went to aboard for better future of their family. His wife was managed entire
grocery shopping needs by offline. Every week she went to the supermarket. Suddenly, wife
was met an accident and then she want to get the help of walker due to injury on her leg.
After that, she unable to visit supermarkets to buy grocery needs. One day she noted the
advertisement published on the Facebook by Daily Needs Lanka Pvt Ltd about the online
grocery shopping and she was decided to order all grocery needs through dailyneedslanka.lk
and she was experienced good customer service with the best prices. After that, she was
purchased all their grocery needs through dailyneedslanka.lk and she recommended it to her
friends, relatives and neighbors as well.
Published on: YouTube and Facebook
Influencer Marketing
Influencer marketing is a strategy which is a hybrid of the modern and traditional
marketing strategies where the idea of celebrity endorsement was taken and applied into the
modern trend of content driven marketing campaigns (Influencer Marketing Hub, 2019). The
influencer collaborates with the brand creating awareness of the millions watching the
influencer on online platforms such as social media.
Page|39
An influencer is an individual, or group of individuals who have expertise or a social
influence over a respective field. Dailyneedslanka needs to be cautious about who it chooses
to carry out the influencer marketing since the influencer will promote the brand and
becomes its face. If the influence has a negative social profile, then the brand will get a
similar tainted perception from the customers. Therefore, the influencer should be:
 Knowledgeable in his/her respective field
 Significant social influence on social media (i.e. 10,000 active followers)
 Positive image in society
Source: https://www.smartinsights.com/online-pr/influencer-marketing-effectiveness/
According to a recent study carried out, it was found that influencer marketing has been
effective with 35% for very effective and 45% for effective, cumulatively adding up to a
whopping 80% of positive results. Therefore, it is an appropriate strategy to meet the
organizational objectives.
Page|40
 Identifying Social Media Influencers – Sri Lanka
Media Platform Influencers Followers Video Views
You Tube
1.Ape Amma
2.Wasthi Production
3.Chanux Bro
805 K
742 K
570 K
147 M
102 M
50 M
Media Platform Influencers Fans
Facebook
1.Kumar Sangakkara
2.Mahela Jayawardane
3.Hemal Ranasinghe
4.5 M
1.3 M
0.3 M
Media Platform Influencers Followers Video Views
Twitter
1.Kumar Sangakkara
2.Mahela Jayawardane
3.Russel Arnold
349 K
144 K
124 K
1.3M
1.0M
0.5M
According to the above mentioned statistics, it has recommended to run dailyneedslanka’s
social media campaign with Mahela Jayawardana (Kumara Sangakkara already been
involving to promote keels super) in Facebook.
Also on YouTube, highly recommended to conducting the campaign with Ape Amma
YouTube channel and with Wasthi Production. Especially wasthi production has the talent to
gain more reach and attention from the age group of 18 to 34.
Page|41
04. Conclusion
In conclusion, this report has derived that identifying gaps in a market and capitalizing on
them effectively can cause many opportunities and create success for an organization.
Although before capitalizing it is important to analyze the gap and its feasibility. Upon
critical analysis of the different aspects viewed and discussed earlier in this report about
dailyneedslanka.lk entering the online grocery retail market is an opportunity with immense
potential. However, it hasn’t been executed well before therefore it is important to analyze
the mistakes of the competition and make sure the organization doesn’t repeat them.
Overall, this plan is feasible and will contribute significantly towards meeting
organizational objectives. However, before proceeding into implementation, it is important to
conduct investment appraisal to analyze the financial performance of the project and if it will
be a profitable investment for the betterment of the organization.
Page|42
05. References
Business Dictionary, 2019. [Online]
Available at: http://www.businessdictionary.com/definition/objective.html
[Accessed 4 November 2019].
Business Dictionary, 2019. [Online]
Available at: http://www.businessdictionary.com/definition/demography.html
[Accessed 4 November 2019].
Chappelow, J., 2019. Investopedia. [Online]
Available at: https://www.investopedia.com/terms/p/porter.asp
[Accessed 6 November 2019].
Content Marketing Institute, 2019. [Online]
Available at: https://contentmarketinginstitute.com/what-is-content-marketing/
[Accessed 7 November 2019].
Entrpreneur, 2019. [Online]
Available at: https://www.entrepreneur.com/encyclopedia/competitive-analysis
[Accessed 6 November 2019].
Fit Small Business, 2019. [Online]
Available at: https://fitsmallbusiness.com/customer-profile-template-examples/
[Accessed 06 November 2019].
Group Map, 2019. [Online]
Available at: https://www.groupmap.com/map-templates/perceptual-map/
[Accessed 6 November 2019].
Influencer Marketing Hub, 2019. [Online]
Available at: https://influencermarketinghub.com/what-is-influencer-marketing/
[Accessed 7 November 2019].
Marketing Mix, 2019. [Online]
Available at: https://marketingmix.co.uk
[Accessed 6 november 2019].
Page|43
MBA Skool, 2019. [Online]
Available at: https://www.mbaskool.com/business-concepts/marketing-and-strategy-
terms/11977-consumer-analysis.html
[Accessed 4 November 2019].
Professional Academy, 2019. [Online]
Available at: https://www.professionalacademy.com/blogs-and-advice/what-are-smart-
objectives-and-how-do-i-apply-them
[Accessed 4 November 2019].
Small Business, 2019. [Online]
Available at: https://smallbusiness.chron.com/top-ways-segment-marketing-54167.html
[Accessed 6 November 2019].
Survey Monkey, 2019. [Online]
Available at: https://www.surveymonkey.com/curiosity/map-customer-journey-keep-
customers-happy/
[Accessed 06 November 2019].
Track Maven, 2019. [Online]
Available at: https://trackmaven.com/marketing-dictionary/market-segmentation/
[Accessed 6 November 2019].
Venngage, 2019. [Online]
Available at: https://venngage.com/blog/marketing-plan/
[Accessed 06 November 2019].
What Works, 2019. [Online]
Available at: https://www.whatworksinyouthhiv.org/strategies/social-media-and-marketing-
strategies/strategies-social-marketing-campaigns
[Accessed 6 November 2019].
World Bank, 2019. [Online]
Available at: https://data.worldbank.org/indicator/IT.NET.USER.ZS?locations=LK
[Accessed 4 November 2019].
Page|44

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  • 1. CONTEMPORARYMARKETINGFORSUSTAINABILITY(CMS) Assignment Topic ONLINE RETAILING IN SRI LANKA Student Name Reg. No. December 2019Examination Postgraduate Diploma in Marketing Sri Lanka Institute of Marketing
  • 2. ASSIGNMENT CHECKLIST & DECLARATION This document is intended as a guide to check and improve your assignment. Review your assignment together with the specific guidelines and criteria (marking schedule) that are mentioned in the programme handbook given to you. You are expected to confirm that your assignment fulfils the below requirements. Please tick (√) in the cages as necessary. Student Name Registration No ( As per registration book ) Cover page with relevant colour code of the stage Stage 1 – Blue Stage 2 – Green Stage 3 – Pink Assignment checklist & declaration form ( This sheet) Assignment marking scheme is attached Assignment sheet is attached Table of contents Body of the assignment References Course fee paid in full (coaching/registration/exam and membership) Exam registration completed Assignment emailed to relevant email address (Youwill receive anautomated replyof receipt fortheassignment.Ifyouhavenot received the automated reply, please verify with course coordinator. The soft copy is only a reference document that will not be considered as an assignment submission) I’m fully aware that anymisleading information provided in the above checklist will lead to the rejection of myassignment. I, the undersigned, confirm that I have read and understood the statement about plagiarism which is outlined in the students’ handbook. I confirm that the work that I have submitted accompanying this report is wholly my own, and that any quotations or sections of text taken from the published or unpublished work of any other person is duly and fully acknowledged therein. Signature: Date:
  • 3. Assignment Marking Scheme December 2019 Subject Contemporary Marketing for Sustainability (CMS) Student RegistrationNumber 0000020067 Criteria Marks Allocated Awarded Aligning to the purpose of the assignment 20 Someoftheansweraddresses tothepurposeofthequestion 1-5 This has addressed the purpose of the assignment 6-10 Has addressed the purpose of the assignment coherently 11-15 This has addressed the purpose of assignment comprehensively 16-20 Clarity of expression 20 An attempt to organize in a logical manner 1-5 Satisfactory showing of logical manner and organization 6-10 Shows higher level of Carefully and logically organized 11-15 Shows coherent structure with clearly expressed ideas 16-20 Using examples/evidences 20 Shows a little use of examples 1-5 Some use of examples. Some evaluation attempted 6-10 Some use of examples. Well evaluated 11-15 Shows appropriate examples are fully and reliably evaluated 16-20 Critical analysis of concepts, theories, conclusions 20 Demonstrates limited evidence of critical analysis 1-5 Demonstrates some critical analysis of relevant theory 6-10 Demonstrates application of theory through critical analysis 11-15 Demonstrates application of critical analysis well integrated 16-20 Following assignment guidelines 20 Limited follow-up of assignment guidelines 1-5 Some level of follow-up of assignment guidelines 6-10 Good display of adherence to assignment guidelines 11-15 Excellent adherence to assignment guidelines 16-20 Total 100 Special Remarks Signature of the Examiner
  • 4. PostgraduateDiplomainMarketing Individual Assignment December2019 Contemporary MarketingforSustainability (CMS) Examination /Assignment Registration Period 14th to 27th October 2019 Examination / Assignment Registration Grace Period 28th to 31st October 2019 Assignment SubmissionPeriod 04th to 10th November 2019 Late Submission Period 11th to 17th November 2019 Assignment Acceptance time period Weekendand Weekdayfrom 9.00amto 3.00pm Presentation Date N/A Email address to send soft copy cms.pgd@slim.lk
  • 5. GUIDELINES ASSIGNMENT SUBMISSION:  You are required to register for examinations / assignments within the above given period. Assignments will not be accepted if you have not registered for the exam/assignment.  Assignments should be submitted to SLIM within the Assignment Submission Periods indicated above.  Assignments will not be accepted after the late submission period under any circumstances.  SLIM will issue an acknowledgement slip upon the submission of your assignment and it must be retained bythe student asproof of submitting the assignment. ASSIGNMENT COVER PAGE:  Attached cover page format should be used, printed inthe relevant colour (Stage 1- Blue/Stage 2-Green/ Stage3-Pink). THE ASSIGNMENT MARKING SHEET should be attached after the cover page followed by the Assignment checklist & declaration form. A SOFT COPY of your assignment should be sent to the above mentioned email address for which you will receive an automated reply of receipt of the assignment. If youhave not received the automated reply, please verify with course coordinator. The soft copy is only a reference document that will not be considered as an assignment submission. IMPORTANT NOTES  If you havenotsubmitted the assignment" yourresults for the respective subject will appear as “Fail” in the final grading.  In case of absence at the examination, the student has to re-do the assignment in order to pass the subject inthe next examination.  IfyouareastudentofanAccredited StudyCentre, youcansubmittheassignmentto the accredited study centre and presentation date and time will be notified to the centre once all assignments arereceived bySLIM Home and SLIM website.  Present university students are allowed to submit the assignment without attending lectures since they register as self-study students. However, they have to attend individual presentation sessions.  Refer student deliverables indicated below for specific details about assignment submissions and presentations.
  • 6. ONLINE RETAILING IN SRI LANKA BACKGROUND A significant number ofsellersinSri Lankacompetetogetintotheshoppingbasketsofmillions of Sri Lankans throughonline retailingbusiness.Sri Lanka’smoderntradepenetrationisstillat 15% compared to the 30% amongst regional peers. The rising per capita income, a growing middle class, rapid urbanization and changing consumption patterns can be considered as the contributing factors for thegrowth ofmodern trade. The mainplayers in themodern retail trade sector in Sri Lanka are Cargills Food City, Keells Super, Laugfs Sunup, Arpico, Lanka Sathosa, Glowmark and SPAR. Despite an over 30% internet penetration inthe countryandbeing amultibillion rupee industry in Sri Lanka, online retailing has not really picked up. People buy electronics online, but they still go through the hassle of grocery offline shopping. KeellsSuper.com has tried online retailing for nearly two decades now, but it has not picked up as a major trend. Online grocery shopping has its own set of benefits to the consumers. Consumers do not have to worry about parking space when grocery shopping and having to carry heavy and bulky shopping bagsback home when they can save theirtime andenergybyautomating their weekly grocery list and getting it delivered to their doorstep. You have been appointed as a digital campaign manager for astart-up business tosetupanonline groceryshopping portal targeting Sri Lankans. Inyour role as a digitalcampaignmanageryou have been requested to develop an effective digital strategy to grow the online grocery shopping portal among the Sri Lankans. TASK ONE The company is planning to invest a significant amount ondigital communicationplatforms to build the online shopping portal brand. It has identified the need to build a long-term digital strategy to gainsuccess from the campaign. I. Identify three (03) objectives for the online shopping portal II. Conduct a comprehensive online competitor and consumer analysis Guideline Note 01 In this task students must develop a brand name for the online shopping portal. It is important that the students identify SMART objectives in respect to the online shopping portal and identify its online competitors and target audience. When identifying the target audience students should develop consumer personas along with the consumer journey.
  • 7. Page|8 TASK TWO The company has identified the importance of having a consistent brand presence on all digital platforms and are wondering whether their presence is needed in all available social media platforms. I. Identify four (04) digital communication methods to reach out the target audience to achieve the setobjectives. II. Identify key digital/social platforms the online shopping portal must be present, with suitable justification. III. Develop a social campaign including content marketing and influencer marketing to achieve setobjectives. Guideline Note 02 Students have to identify suitable digital communication platforms to promote the online shopping portal. These identified digitalcommunication platforms should relate to the target audience and set objectives. Students should be able to identify the proper social and digital platforms with justifications. Finally students should come up with a campaign idea and use content marketing and influencer marketing as two tactics. IMPORTANT: Pleaserefrainfrom copying-and-pasting information from the Internet or another source and make sure to reference your work according to the Harvard referencing format. Word allocation for each task Task Content Weightage Task one 50% Task two 50% Total ( word count 3000 – 3500) 100% Note: Please refer the given assignment marking scheme all marks allocation
  • 8. Page|9 Table of Contents Executive Summary...................................................................................................................... 11 1 Introduction to Dailyneeds Lanka (Pvt) Ltd.......................................................................... 12 1.1 Objectives of Dailyneeds Lanka (Pvt) Ltd. .................................................................... 14 1.2 Consumer Analysis ........................................................................................................ 15 1.3 Overview of the Industry............................................................................................ 15,16 1.4 Media habbits and consumption background ................................................................. 16 1.5 Identifying and describing demographics of the customer......................................... 17,18 1.6 Market Segmentation...................................................................................................... 18 1.6.1 Market Segmentation Dailyneeds Lanka (Pvt)Ltd ................................................... 19,20 1.6.2 Customer Profile ....................................................................................................... 20,21 1.6.3 Customer Journy....................................................................................................... 21,22 2 Competitor Analysis .........................................................................................................22-27 2.1 Perceptual Map............................................................................................................... 27 2.2 Porter’s Five Forces........................................................................................................ 28 2.2.1 Bargaining Power of Customers ............................................................................. 28 2.2.2 Bargaining Power of Suppliers ............................................................................... 29 2.2.3 Threat to New Entrants ........................................................................................... 29 2.2.4 Threat of Substitutes ............................................................................................... 29 2.2.5 Competitive Rivalry................................................................................................ 30 3 Task Two ............................................................................................................................... 31 3.1 Marketing Paln of Dailyneeds Lanka(Pvt) Ltd. ........................................................31-33 3.2 Social media platforms Dailyneeds Lanka should present........................................34-36
  • 9. Page|10 3.3 Social Markeing Campaign............................................................................................. 36 * Content Marketing................................................................................................... 37 * Suitable Storytelling to Dailyneeds Lanka (Pvt)Ltd................................................ 38 * Influencer Marketing.......................................................................................... 38,39 * Identifying social media influencers –Sri Lanka..................................................... 40 4 Conclusion.............................................................................................................................. 41 5 Referances.......................................................................................................................... 42,43
  • 10. Page|11 Executive Summary Dailyneeds Lanka (Pvt) Ltd. is an organization specializing in grocery retail, established in Sri Lanka. dailyneedslanka has managed to identify the gap of the grocery retail market on the online platforms since there is no reliable and successful online grocery retail store, dailyneedslanka has decided has capitalize on that opportunity. This report is a detailed description of the proposed plan and the strategy which will be used in order to successfully enter the market and sustain in the market whilst obtain success in the field. In order to effectively do so, the consumer and competitor analysis was conducted to identify and evaluate the consumers and competitors and to formulate strategies to gain a positive outcome for the betterment of the organization. Moreover, this report also included a marketing plan since marketing is an integral part of a business which is one of the key factors deciding the success of an organization in a market.
  • 11. Page|12 01. Introduction Daily Needs Lanka Private Limited Daily Needs Lanka Private Limited is a private limited company where two brothers and an external investor own the company. The company was established on 2019. The sharing ratio is to be equal amongst the three owners. The owners’ decided to form a private limited company since the main advantage of this is limited liability. This means that owners’ will not lose their personal assets in the case of bankruptcy of the organization. The organization’s main asset is its website because it acts as the platform where trade can take place at the convenience of both the customers’ and the organization. Moreover, daily needs will also have a physical outlet in Colombo 02, so that it can satisfy and at the same time encourage consumers who prefer offline shopping to switch to the online website. The owners of the dialyneeds private limited are owned Sri Lanka’s leading agricultural product exporting company. The company called dailyneeds agriculture is owned vegetable farms in several locations in island wide. Especially most of their agricultural products been exported to Europe countries including United Kingdom & France. Furthermore, the name dailyneeds signifies Online Grocery Mart, since it is unique and catchy and might be able to successfully obtain the attention of the customers from the competitors who have already captured the offline grocery market, i.e. keells super, arpico super centers, cargills, etc.
  • 12. Page|13 Selected brand name: dailyneedslanka.lk Daily Needs Agriculture Limited is one of the leading agricultural manufacturing and exporting company in Sri Lanka since 2002. The company has interested to start online grocery shopping website. Hence, dailyneeds will remain on the website name because its well-known company name among Sri Lankan customers, because they have been supplied fresh vegetables and fruits to all Sri Lankan major modern trade super market channels. Specially, when selecting the business name (website name for online shopping) must make sure the domain name is available or not. Without a domain name no presence on the internet. As per the LK Domain Registry the selected website ‘dailyneedslanka.lk’ domain is available for registration. dailyneedslanka.lk wills more familiar name to the Sri Lankan consumers to fulfill their daily grocery needs through convenience online shopping portal.
  • 13. Page|14 1.1 Objectives of Daily Needs Lanka Private Limited Objectives refer to the specific outcomes that an organization wishes to be achieved within a period of time using the available resources (Business Dictionary, 2019). The organizational objectives play a significant role in deciding its direction since employees will work towards meeting this objective. Therefore, it is necessary that the organization sets effective objectives. In order to do, the organization must comply with the SMART Objectives Criteria which lays down five main criteria’s an objective must fulfill in order to be effective (Professional Academy, 2019). Source: http://gonderpr.com/smart-objectives-better-measure-pr-campaign-outcomes/ Since it is of paramount importance, using three SMART Objective Criteria, core objectives of dailyneedslanka.lk were set.  Increases of the brand name among the customers up to 25 % from the target customers by 03rd quarter in 2019/20 financial year – Awareness  Increase the time spent on the site up to 05 minutes by end of the 3rd quarter in 2019 – Consideration  Increasing the average order size (average revenue per basket/average spend) up to LKR 1,500/- by end of 2019/20 financial year- Conversion
  • 14. Page|15 1.2 Consumer Analysis Consumers are the kings of the market. Therefore, it is important to first find out who are the customers for dailyneedlanka.lk. Moreover, it is important to understand the customers and analyze their needs and wants to provide the best solution. Hence, a consumer analysis was conducted for dailyneedslanaka’s customers. A customer analysis refers to the process where information about the customer is obtained via market research (MBA Skool, 2019). The information could include needs of the consumer, target market and the demographics of the customers. This information is very important to segment the market and formulate the marketing plan. Wheels of consumer analysis - Source: https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/11977- consumer-analysis.html There are certain steps that need to be followed to conduct an effective consumer analysis: 1. Overview of the industry 2. Identifying and describing demographics of the customer 3. Project future changes 4. Determine and describe consumer buying behavior 5. Competitive Analysis 6. Gap identification 1.3 Overview of the Industry Sri Lanka’s online marketplace has been taking an inclining trend, which has opened up a lot of opportunities for investor. In addition to this, the internet penetration of the population
  • 15. Page|16 is at 34% in 2018 from 5.8% in 2008 (World Bank, 2019). The increase has been significant over the decade and is known to grow further. Source: https://www.slideshare.net/DataReportal/digital-2019-sri-lanka-january-2019-v01 In order to capitalize on this opportunity that has opened up, a new business venture namely dailyneedslanka.lk, will enter the markets of the online grocery retail store. The enterprise promises fresh, healthy and high-quality groceries to be delivered to the customer’s doorstep hence making its entrance into the market more appealing than that of the existing competitors of the market, i.e. keelssuper.lk, grocery.lk 1.4 Media habits and consumption back ground in Sri Lanka In Sri Lanka for a nation that has 20.98 million populations and growing, here are some of the facts and statistics about its internet and social media usage.  7.13 million users use the internet  6.2 million active social media users, 91 % of them access it through mobile devices in Sri Lanka  28.71 million mobile phone connections in Sri Lanka  34 % of the total population are internet users
  • 16. Page|17  6 million people are engage with Facebook  1.1 million people are having Instagram account  980 thousand people are with LinkedIn Source: https://www.slideshare.net/DataReportal/digital-2019-sri-lanka-january-2019-v01 1.5 Identifying and Describing Demographics of the Customer Demographics are defined as the quantitative and qualitative aspects of the human population (Business Dictionary, 2019). The quantitative aspects include composition, density, distribution, growth, movement, structure of the population, etc. whereas the qualitative aspects are more of the sociological factors such as education, social class, wealth, etc.  Income level: middle-high income earners  Age: 18-34 (millennials) & 35-54 (GenX)  Gender : Male & Female  Education : High School Graduate or more educational  Family : Consumers with 1 + children / two + adults in the family
  • 17. Page|18 As per the statics published by Department of Census and Statistic, Sri Lanka age 60 years and above groups show low computer literacy rates. Source: http://www.statistics.gov.lk/education/ComputerLiteracy/ComputerLiteracy-2018Q1-Q2-final.pdf 1.6 Market Segmentation Industry Market segmentation refers to the division of the market into separate segments on the basis of different consumer characteristics, i.e. demographics – high income earners. These segments include consumers who have similar traits, interests, needs and wants, etc. hence may react similarly as a group to a marketing strategy. This is an important process as it allows the organization to point out the potential customer group and choose a strategy that satisfies them the best instead of focusing on each individual saving the organization resources and time which may be put to efficient use for the betterment of the organization (Track Maven, 2019).
  • 18. Page|19 There different ways in which an organization may segment its market. The three most common ways are (Small Business, 2019):  Demographics  Geographic  Psychographics 1.6.1 Market segmentation of dailyneedslanka.lk Understanding the importance of market segmentation, dailyneedslanka has segmented their market to identify the group of potential customers. The market segmentation is represented in the table below. Market Segmentation of dailyneedslanka(Pvt) Ltd. Demographics Geographic Psychographics Income Level: Middle-high income earners will be targeted because they have the affordability of the services dailyneedslanaka.lk plans to provide. Age: 18-34 & 35-54 will be the age group targeted by dailyneeds.lk because it was identified it is this age group that makes grocery purchases for the household. Moreover, 18-45 is age group that was identified to use online platforms, i.e. social media, online banking, online shopping, etc. Online (Internet): dailyneedslanaka’s main service is online grocery retailing, the consumers who have access to the online platforms. Urbanized: dailyneedslanka’s retail outlet will be located in Colombo, Sri Lanka which is the most urbanized city of the Sri Lanka. In the future, urbanized cities could be a potential investment since majority of the target population reside in urbanized cities, i.e. Mt. Lifestyle: Majority of the individuals who have access to the online platform do not know how to access it effectively. Therefore, the individuals who have a modern lifestyle surrounded by growing internet presence and online platforms, i.e. social media. Consumer Group: Both locals and tourists will be targeted by dailyneedslanka Health Concerns: Recently the market has been looking for a healthy solution and since dailyneedslanka
  • 19. Page|20 Lavinia, Wattala, etc. (pick up points will be allocated) promises fresh, healthy and high-quality groceries because they have already supplied fresh vegetables and fruits to the market 1.6.2 Customer Profile Customer profile refers to the description of customers of an organization based on their demographics, backgrounds, hobbies and interests (Fit Small Business, 2019). The customer profile plays an integral role for business that provides ongoing services, subscriptions, and product-based services. According to the services that will be provided by dailyneedslanka will be appealing to the teenagers, young adults, adults and senior citizens who purchase grocery for their household. The online platform is more focused towards the age group of 18 – 45 years since they are the notable age group who have access to the internet platform and are willing to purchase online due to the convenience. Whereas the 45+ years old group is more used to the offline grocery shopping where they can hand pick their groceries. To meet the needs of such customers, dailyneedslanka provides the order pickup outlet which will be located in Colombo, Sri Lanka.
  • 20. Page|21 1.6.3 Consumer Journey Customer journey refers to the cumulative experience a customer undergoes when interacting with an organization/brand (Survey Monkey, 2019). The customer journey is a detailed description of how being a customer of the organization is like. Dailyneedslanka.lk promises that the groceries will be fresh, healthy and of high quality when purchased. Now the customers have a choice of making the purchase online and getting it delivered at home or use online to ordering and can pick up from the store. This provides more convenience to the customer due to the availability and convenience of the product/service. Hence provides a good and positive customer satisfaction leading to a happy customer which creates brand loyalty. It is dailyneedslanka’s core objective to provide the products and service which serve the needs and wants of the customers the best in order to maintain satisfied customers which is an important competitive advantage to the organization. E commerce is not just buying online. It is new way of doing things, of interacting with products and brands. People don’t by things now, they buy experiences.
  • 21. Page|22 Source: https://www.pinterest.com/pin/426997608400167812/ The Customer Journey Stages  Awareness This is first stage that potential customers are learns about the brand  Consideration In this stage, that customer has a need and the selected product or service can be a potential solution. Then customer weighing pros and cons against other offers  Conversion This is the stage that, first order gets through the customer  Retention At this stage of the customer journey, either keep or lose the customer  Advocacy One of the important stages in the customer journey, for most the customer journey ends after few purchases. The most engaged customers will become brand ambassadors 02. Competitor Analysis It is evident that dailyneedslanka will face competition in the market therefore it is important to conduct a competitor analysis in order to analyze the competition and to identify the opportunities and threats in the market to formulate an appropriate strategy to capitalize on it. Competitor analysis refers to the assessment of the strengths and weaknesses of current and potential customers (Entrpreneur, 2019). The competitor analysis is a critical part of the
  • 22. Page|23 organization’s marketing plan since it enables the organization to identify how the product/service is offered unique in order to attract the target market. Grocery Pal “Saving time for good things in life’’ Grocery Pal is an online grocery site www.grocerypal.lk launched by Lfinity Private Limited, the digital business arm of Laugfs Holdings. It linked with Laughs super markets and number of other major FMCG suppliers, with a wide variety of over 3000 products to choose from and range of payment options. The site offers customers with the additional convenience of sending in grocery lists via email or whatsapp and having the products delivered to the customer’s doorstep. Grocery Pal is targeting middle class and upper middle class customer segments and catering to niche market. Grocery Pal’s competitive advantage is brand equity and reliable sourcing partners. Furthermore, Grocery Pal offers organic vegetables and baked goods as well. Their service currently stretches across Colombo 1 to 15 and surrounding suburbs up to Wattala, Kelaniya, Malambe, Kottawa and Mt.Lavinia. Considering the strengths of the Grocery Pal, it’s owned by Lfinity Limited, a subsidiary of Laugfs Holding which is one of the largest diversified business conglomerates in Sri Lanka. The company was financially strong and there are many pick up locations available. Also strong supplier chains and strong presence offline and online will be the key strengths of the company.
  • 23. Page|24 Analyzing the digital marketing strategy of Grocery Pal, it’s active in all digital media platforms including social media as well. Source: https://www.youtube.com/channel/UChxCcCP-Zh65lVsTMI3_j6A Source: https://www.facebook.com/grocerypal.lk/ Grocery Pal is week in building awareness in social media, especially on YouTube there is only just 16 subscribers engaged with the Grocery Pal you tube channel. Also it has no regular updates; last post was published two years back.
  • 24. Page|25 Keels Super Keelssuper.com is the e-commerce website introduced by keels Supermarket in 2002 which owned by John Keels Holdings, as the first only online super market in the country. John Keels Holding PLC is a Sri Lankan blue chip conglomerate. As at today there are over 25,000 registered customers for keelssuper.com, and keels super is able to provide a continues and consistent service to its shoppers both at home and abroad, enabling Sri Lankans living in overseas to send a variety of super market goods to their loved once at home. In 2013, keels super brings mobile shopping for the first time in its industry, adding ease, and convenience to its shoppers. Keels Super is targeting upper middle class and upper class customer segments. Keels super’s competitive advantage is brand equity, reliable sourcing partners and own food processing. Furthermore, Keels Super guaranteed the freshness of their vegetables, fruits and meat products. Their service is currently available in several major cities in Sri Lanka. Keels super is financially strong while it’s owned by John Keels Holdings PLC and there are many super markets located in island wide. Analyzing the digital marketing strategy of Keels Super, it’s very much strong in all digital media platforms including social media with comparing the Grocery Pal.
  • 25. Page|26 Source: https://www.youtube.com/user/KeellsSuperlk Source: https://www.facebook.com/Keells.SL/ Comparing with the Grocery Pal, Keels Super is strong in social media. As per the face book statistics, there over 217,000 + people like the Keels super face book page and over 218,000 + people follow the same.
  • 26. Page|27 Keelssuper.com trafic overview – October 2019 Source: https://www.similarweb.com/website/keellssuper.com 2.1 Perceptual Map A perceptual map is a tool which provides a visual representation of the customer’s perceptions of the attributes of the organization, brand, product or service, etc. This allows the organization to identify the perceptions of the customers about the strengths of the organization in the market (Group Map, 2019). The diagram below represents the perceptual map of dailyneedslanka and its main competitors on the basis of price and quality of the products and services offered. Price Quality High Low High Low
  • 27. Page|28 2.2 Porter’s Five Forces Porter’s Five Forces is a framework that identifies and analyzes the five main forces that impact the competition of the industry (Chappelow, 2019). This framework allows the organization to identify gaps, strengths, weaknesses, opportunities and threats. This is an efficient tool to conduct a competitor analysis. Source: https://www.slideshare.net/hitaksha/porters-five-forces-model-of-competitive-analysis 2.2.1 Bargaining Power of Customers – High The bargaining power of customers is high because there are many key players, i.e. keellssuper.com that offer similar services of online grocery retailing. This provides the customers with more choices to satisfy a need/want. Customers are kings of any organization/industry, hence providing leverage for the customer to be able to negotiate terms and conditions.
  • 28. Page|29 Consumers today are more sophisticated. Consumers are less commit to impulsive-buying, yet are more willing to study about product features and evaluate their options before purchasing online. This can be mitigated by providing a unique product/service which will make them want to purchase dailyneedslanka’s products and services instead of its competitors. 2.2.2 Bargaining Power of Suppliers – Medium The bargaining power of suppliers is medium since dailyneedslanka. Since, corporates conditions vary, whether the power is suppliers are strong should be determined accordingly. But to survive in the online grocery retailing industry, keeping a close relationship with the suppliers is imperative. Especially in the grocery industry suppliers have enough power to regulate the industry. The bargaining power of suppliers is comparatively low for the large supermarket chains like Keels Super, Arpico and Cargills. This will enable those large super market channels to enjoy discounts and other complimentary services which will result in economies of scale, i.e. purchasing economies of scale, which enable the business to be more competitive. 2.2.3 Threat to New Entrants – Medium The threat of new entrant is moderate since the grocery retail market is currently dominated by key players, i.e. keells, that dailyneedslanka will be competing with. Due to the high competition and the high level of investment required, not all investor can afford such project. This threat can be dealt with by increasing barriers to entry, such as competition, price of products/services, patents, etc. The harder it is to enter the market, the safer the market share of dailyneedslanka will be. 2.2.4 Threat of Substitutes – High The threat of substitutes is high since there are other products/services provided by the competitors providing a greater variety of choices for products/services hence choosing one which satisfies those best.
  • 29. Page|30 In order to attract the customers towards purchasing products/services from dailyneedslanka, it should provide a unique product/service which will provide a unique experience by the customer hence making dailyneedslanka’s products a more desirable purchase. 2.2.5 Competitive Rivalry – High The industry rivalry is high since the competition faced by dailyneedslanka is intense since the competitors are all established firms of Sri Lanka which have established their presence in the market of offline grocery shopping where the online grocery shopping hasn’t been a great hit. Therefore, in order to successfully provide a unique and efficient online grocery shopping platform it is important that dailyneedslanka capitalizes on the opportunities identified in order to create a sustainable competitive advantage to remain competitive and move forward of the competition.
  • 30. to-us-companies/ 03. Task Two 3.1 Marketing Plan of Dailyneeds Lanka (Pvt) Ltd. Marketing is an integral part of an organization as it defines how the organization plans to sell its products/service and attract customers to purchase their products/service. Therefore, it is important to draft a marketing plan to ensure successful marketing. Marketing plan outlines the marketing strategy of the organization within a set period of time, i.e. year, month (Venngage, 2019). The marketing plan is important to draft before selling a product to the market since it allows the organization to formulate an appropriate strategy to deal with the target market. In this case where dailyneedslanka is initiating online grocery retail store which is a gap identified in the market since the competitors who have tried this concept have not gained much success. Therefore, it is important to create the awareness in the market. Since it is an online platform the main medium of communicating to the consumers is the use of internet/online platforms. Before selecting the suitable digital marketing communication methods to dailyneedslanka.lk to reach out the target audience and to achieve the set objectives, below are the most effective digital marketing methods worldwide in 2018. Source: https://www.statista.com/statistics/190858/most-effective-online-marketing-channels-according- Page | 31
  • 31. Page|32 In order to successfully create its presence, dailyneedslanka has chosen below four most appropriate digital communication platforms to engage with the customers, spread awareness of the brand and implement the marketing plan.  Google Search adds Search advertising is a powerful form of advertising because people who search on Google reveal a lot about their intent when they search. Advertisers have ability to bid on key words so that their ads show up when people are looking for exactly the kinds of things they sell.  Email Marketing Once targeted the email address for customers or potential customers distributing creative email campaigns can be really effective at driving web site traffic and generating sales. However, simply putting together an email is not going to cut it if not optimizing the email for mobile devises. Most ecommerce customers check their inbox from their smart phones, not from a desktop or laptop. Emails that get opened on mobile devises, otherwise it will be waste of time and money.  Content Optimization Content optimization is the process of writing content in a way that it can reach the largest possible target audience. The process of optimizing content should include making sure associated key words are present. There are five steps to perfectly optimizing any content to improve digital marketing. 1. Search and social media keyword research 2. Define buyer personas and buying cycle 3. Build trust by using the right words 4. Create quality of the content 5. Optimize engagement with visuals such as videos & images
  • 32. Page|33  Google display ads Facebook ads Google display ads are the visual banner ads can see on advertising supported sites everywhere. According to Google, the display network reaches over 90 % of global internet users expanding across over 2 million sites. Facebook ads are targeted to users based on their location, demographic and profile information. Facebook’s most important is ad targeting option. Achieve dailyneedslanka’s objectives using digital marketing methods Awareness Consideration Conversion Facebook ads Facebook ads Facebook ads Google display ads Google display ads Google search ads Google search ads Direct placement ads Email marketing Mobile marketing Content marketing Content marketing Influencer marketing Influencer marketing
  • 33. Page|34 3.2 Social Media Platforms that dailyneedslanka should be present Source: https://sales-push.com/blog/top-5-tools-to-optimize-social-media-marketing/ Social media marketing refers to the process of using social media platforms to attract traffic and attention. By using social media, dailyneedslanka can increase exposure and build meaningful relationship with their target customers. Social Media Platform Justification Facebook Facebook is one of the largest social media platforms which millions of users active at all times. Therefore, creating a presence on Facebook would increase the reach of its digital communication to the customers. Moreover, customers can use Facebook to follow the dailyneedslanka page to be updated about promotions, events, activities, etc. which allows the business to directly engage with the customers by taking their feedback into consideration and providing feedback in order to satisfy the customer’s need.
  • 34. Page|35 Instagram Instagram is one of the growing social media platforms which have been increasingly used for online businesses and stores which allow customers to purchase through Instagram itself. Hence this is an ideal platform that dailyneedslanka should establish its presence by uploading pictures and stories of the upcoming promotions, events and activities to spread awareness as well as to enable the customers to provide their feedback of their experience for further improvements. Twitter Twitter has been the social media where organizations and celebrities have established their active presence. Twitter can be used as an effective platform to gather feedback and tweets (both negative and positive) from customers about their experience with dailyneedslanka. This provides the opportunity to create a positive and healthy relationship with the customers to make them feel important, engaged and a part of the brand. LinkedIn LinkedIn is a professional social media channel and dailyneedslanka can reach professionals by uploading pictures and stories of the convenience and easy grocery shopping experiences. YouTube In Sri Lanka, YouTube has over 2.5 million unique daily visitors and approximately 6.5 million monthly unique visitors in 2018 (YouTube stats, June 2018) According to the stats, publishing videos on YouTube and advertising on YouTube will create more awareness to the dailyneedslanka
  • 35. Page|36 Social Media Advertising Audiences 2019 – Sri Lanka Source: https://www.slideshare.net/DataReportal/digital-2019-sri-lanka-january-2019-v01 3.3 Social Marketing Campaign Source: https://jarvee.com/effective-steps-of-a-social-media-marketing-campaign/
  • 36. Page|37 Social marketing campaign refers to the development and integration of marketing concepts and other methods to influence the behaviors which will benefit the individuals and the communities as a whole, for the greater social good (What Works, 2019). In order to successfully develop a social marketing campaign to Daily Needs Lanka Pvt Ltd, the two main techniques were used:  Content Marketing  Influencer Marketing Content Marketing Content marketing refers to the strategic marketing strategy where creating and distributing valuable, relevant and consistent content to the customers in order to attract and retain a clearly defined audience to drive profitable customer action (Content Marketing Institute, 2019). Source: http://mondo.marketing/wp-content/uploads/2013/10/
  • 37. Page|38 The above figure represents the content marketing cycle which needs to be followed in order to implement the content marketing strategy successful. An efficient content marketing strategy would result in increased sales as clear and defined content would attract customers to purchase products/services from dailyneedslanka.lk since they have been clearly notified about the activity/event. Story telling is a great tool to create an emotional response in target audience. It can make them feel humor, anger, sadness, hope, inspiration and more. A storytelling is important because it can make people feel something and can make them take action. Suitable story to dailyneedslanka.lk Story: The family living in close to Dehiwala including husband, wife and 02 kids aged 5 and 8. Husband went to aboard for better future of their family. His wife was managed entire grocery shopping needs by offline. Every week she went to the supermarket. Suddenly, wife was met an accident and then she want to get the help of walker due to injury on her leg. After that, she unable to visit supermarkets to buy grocery needs. One day she noted the advertisement published on the Facebook by Daily Needs Lanka Pvt Ltd about the online grocery shopping and she was decided to order all grocery needs through dailyneedslanka.lk and she was experienced good customer service with the best prices. After that, she was purchased all their grocery needs through dailyneedslanka.lk and she recommended it to her friends, relatives and neighbors as well. Published on: YouTube and Facebook Influencer Marketing Influencer marketing is a strategy which is a hybrid of the modern and traditional marketing strategies where the idea of celebrity endorsement was taken and applied into the modern trend of content driven marketing campaigns (Influencer Marketing Hub, 2019). The influencer collaborates with the brand creating awareness of the millions watching the influencer on online platforms such as social media.
  • 38. Page|39 An influencer is an individual, or group of individuals who have expertise or a social influence over a respective field. Dailyneedslanka needs to be cautious about who it chooses to carry out the influencer marketing since the influencer will promote the brand and becomes its face. If the influence has a negative social profile, then the brand will get a similar tainted perception from the customers. Therefore, the influencer should be:  Knowledgeable in his/her respective field  Significant social influence on social media (i.e. 10,000 active followers)  Positive image in society Source: https://www.smartinsights.com/online-pr/influencer-marketing-effectiveness/ According to a recent study carried out, it was found that influencer marketing has been effective with 35% for very effective and 45% for effective, cumulatively adding up to a whopping 80% of positive results. Therefore, it is an appropriate strategy to meet the organizational objectives.
  • 39. Page|40  Identifying Social Media Influencers – Sri Lanka Media Platform Influencers Followers Video Views You Tube 1.Ape Amma 2.Wasthi Production 3.Chanux Bro 805 K 742 K 570 K 147 M 102 M 50 M Media Platform Influencers Fans Facebook 1.Kumar Sangakkara 2.Mahela Jayawardane 3.Hemal Ranasinghe 4.5 M 1.3 M 0.3 M Media Platform Influencers Followers Video Views Twitter 1.Kumar Sangakkara 2.Mahela Jayawardane 3.Russel Arnold 349 K 144 K 124 K 1.3M 1.0M 0.5M According to the above mentioned statistics, it has recommended to run dailyneedslanka’s social media campaign with Mahela Jayawardana (Kumara Sangakkara already been involving to promote keels super) in Facebook. Also on YouTube, highly recommended to conducting the campaign with Ape Amma YouTube channel and with Wasthi Production. Especially wasthi production has the talent to gain more reach and attention from the age group of 18 to 34.
  • 40. Page|41 04. Conclusion In conclusion, this report has derived that identifying gaps in a market and capitalizing on them effectively can cause many opportunities and create success for an organization. Although before capitalizing it is important to analyze the gap and its feasibility. Upon critical analysis of the different aspects viewed and discussed earlier in this report about dailyneedslanka.lk entering the online grocery retail market is an opportunity with immense potential. However, it hasn’t been executed well before therefore it is important to analyze the mistakes of the competition and make sure the organization doesn’t repeat them. Overall, this plan is feasible and will contribute significantly towards meeting organizational objectives. However, before proceeding into implementation, it is important to conduct investment appraisal to analyze the financial performance of the project and if it will be a profitable investment for the betterment of the organization.
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