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Model Assignment

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33% found this document useful (3 votes)
3K views

Model Assignment

Uploaded by

Naveen Jayasanka
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 43

Theme: Improving Customer Loyalty

to Create Revenue Growth

Corporate Digital Communications


December 2020

Membership No: 40073852


Corporate Digital Communications Membership No: 40073852 December 2020

Table of Contents
TASK 1......................................................................................................................................................... 5

1.1 Organisational Background .......................................................................................................... 6


1.1.1 Introduction To "Keells Super" .............................................................................................. 6
1.1.2 Organisation Information ....................................................................................................... 6
1.1.3 Stakeholder Analysis.............................................................................................................. 7
1.1.4 Key Customer Segment.......................................................................................................... 7
1.1.5 Rationale for the Choice of “Customer Loyalty” as the Theme for Keells Super ................. 7
1.2 Customer Loyalty through Corporate Reputation, Identity and Image of Keells Super ............... 8
1.2.1 Corporate Reputation ............................................................................................................. 8
1.2.2 Corporate Personality............................................................................................................. 8
1.2.3 Corporate identity .................................................................................................................. 9
1.2.4 Corporate Image ..................................................................................................................... 9
1.2.5 Customer Loyalty through Corporate Reputation ................................................................ 10
1.3 Influence of Stakeholders on the Corporate Reputation of Keells .............................................. 11
TASK 2....................................................................................................................................................... 14

2.1 Positioning and Reputation of Keells Super ............................................................................... 15


2.1.1 Current Strategy, Structure, Systems and Culture of Keells Super in relation to its
Positioning and Reputation ........................................................................................................... 15
2.1.2 Current Gaps in Image and Identity of Keells Super and Recommendations ...................... 16
2.2 Strategies to Develop Corporate Reputation to Build Brand Equity of Keells Super ................. 18
2.2.1 Outlined Strategies to Develop Corporate Reputation ......................................................... 18
2.2.2 Impact on Brand Equity ....................................................................................................... 19
2.2.3 Role of Employees within the Strategy ................................................................................ 20
2.3 Approaches to Monitor and Measure Brand Equity.................................................................... 21
2.3.1 RepTrak................................................................................................................................ 22
2.3.2 Brand Asset Valuator (BAV) ............................................................................................... 22
TASK 3....................................................................................................................................................... 24

3.1 Environmental Trends Driving Digital Behaviour and Strategies for Digital Communications 25
3.1.1 Environmental Trends Driving Changes in Digital Behaviour of the Stakeholders of Keells
Super ............................................................................................................................................. 25
3.1.2 Digital Communication Strategy to Enhance Customer Loyalty of Keells ......................... 26
3.2 Digital Channels and Key Technology Developments in Digital Tools ..................................... 27
3.2.1 Effectiveness of Digital Channels Available within the Market .......................................... 27
3.2.2 Impact of Key Technology Developments in Digital Tools on the Corporate Reputation of
Keells ............................................................................................................................................ 29

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3.3 Digital Communications Strategy and Digital Technologies to Monitor and Measure Reputation
of Keells Super.................................................................................................................................. 31
3.3.1 Digital Communications Strategy to Protect and Strengthen Corporate Reputation of Keells
...................................................................................................................................................... 31
3.3.2 Digital Technologies to Monitor and Measure Reputation of Keells .................................. 33
References .................................................................................................................................................. 34

Appendices ................................................................................................................................................. 36

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Corporate Digital Communications Membership No: 40073852 December 2020

List of Tables
Table 1: Financial Analysis (Source: JKH Annual Report) ___________________________ 6
Table 2: Stakeholder Analysis –Author Generated based on Annual Report _____________ 13
Table 3: Current Strategy, Structure, Systems and Culture of Keells Super _____________ 16
Table 4: Gaps between Image and Identity_______________________________________ 17
Table 5: Brand Value of Keells Super (Brand Finance, 2019) ________________________ 21
Table 6: Trends Driving Stakeholder Digital Behaviour ____________________________ 26
Table 7: Digital Channel Effectiveness _________________________________________ 28
Table 8: Key Technology Developments in Digital Tools ___________________________ 30
Table 9: Digital Communications Strategy for Keells ______________________________ 31
Table 10: Digital Technologies to Monitor & Measure Corporate Reputation ___________ 33

Table of Figures
Figure 1: Keells Super Outlet __________________________________________________ 6
Figure 2: Market Share _______________________________________________________ 6
Figure 3: Mendelow's Matrix __________________________________________________ 7
Figure 4: Corporate Reputation Model ___________________________________________ 8
Figure 5 : Corporate Personality ________________________________________________ 8
Figure 6: Corporate Identity ___________________________________________________ 9
Figure 7 : Corporate Image ____________________________________________________ 9
Figure 8 : Loyalty Ladder ____________________________________________________ 10
Figure 9 : The Corporate Reputation Chain (Davies et al., 2003) _____________________ 10
Figure 10: Stakeholder Mapping based on Mendelow's Matrix _______________________ 11
Figure 11: Brand Identity Prism - Keells Super ___________________________________ 19
Figure 12: Drivers of Corporate Brand (Van Riel) _________________________________ 20
Figure 13: Reichheld's Loyalty-based Cycle of Growth Model _______________________ 20
Figure 14: Keller's Brand Equity Model - Keells Super _____________________________ 21
Figure 15: RepTrak Model (Reputation Institute) _________________________________ 22
Figure 16: Brand Asset Valuator ______________________________________________ 23
Figure 17: RACE Model (Dave Chaffey, 2020) ___________________________________ 26
Figure 18: PESO Model _____________________________________________________ 27
Figure 19: Current Digital Channel Usage of Keells _______________________________ 28
Figure 20: Social Media Usage (Digital Information World, 2019) ____________________ 29
Figure 21: Chatbot Usage (GoodFirms , 2019) ___________________________________ 30
Figure 22: Gantt Chart of the Digital Communications Strategy of Keells ______________ 32
Figure 23: Google Analytics Dashboard_________________________________________ 33
Figure 24: Review Trackers Extension - Hootsuite ________________________________ 33

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Corporate Digital Communications Membership No: 40073852 December 2020

TASK 1
WORD COUNT - 1333

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Corporate Digital Communications Membership No: 40073852 December 2020

1.1 Organisational Background


1.1.1 Introduction To "Keells Super"

"Keells Super" is the retail arm of John Keells Holdings PLC (JKH), a Colombo based
blue chip conglomerate in Sri Lanka incorporated as a Public Limited Liability
Company in 1979. The “Keells” chain of modern retail outlets is operated by JayKay
Marketing Services (Pvt) Ltd (JMSL).

1.1.2 Organisation Information


Keells Super is a Private Limited Company
(JayKay Marketing (Pvt) Ltd) of profit motive
operating with the purpose of improving the
quality of life of the nation by providing
quality products at affordable prices. The
customer base of Keells Super is Business to
Consumer (B2C) as consumers directly
purchase goods for end use.

Figure 1: Keells Super Outlet


Size of the organisation – 2018/2019 2019/2020 Growth%
Keells Super operates throughout Revenue (Rs. Million) 45,538 54,654 20
Sri Lanka with 109 outlets located EBITDA (Rs. Million) 2,367 4,267 80
across the island employing a staff Assets (Rs. Million) 17,886 29,022 62
of 4917, as at March 2020 (John
Keells Holdings PLC, 2020). Table 1: Financial Analysis (Source: JKH Annual Report)

Product range – after the rebranding campaign in 2017, by moving from their red colour logo to the
current greenish logo, Keells revitalized its’ image as an environment friendly, fresh and quality
goods retailer by making available a wide variety of products such as grocery, household, fruits,
vegetables, fish/meat, homeware, beverages, bakery, liquor etc., including their own brands of
consumer foods, frozen confectionery and beverages, for their customers.

Competitors and market share –


the key competitors of Keells are the 3%
country’s main supermarket chains such 8% Cargills
as Cargills Food City, Arpico Super 18% Keells
46%
Arpico
Center, Sathosa and other emerging
Sathosa
supermarket chains such as Laughs Other
25%
Super, Glomark by Softlogic and Spar.
The distribution of the market share
among these competitors is as depicted
in figure 2 (Author developed based on
Figure 2: Market Share
Annual Reports of relevant companies).
Currently the market is dominated by Cargills Food City with 380 outlets island wide and Keells
Super is in second with 25% of total market share. The value proposition of Cargills lies upon highest
value for lowest prices, while the current Keells proposition relies upon freshness and eco-
friendliness.

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1.1.3 Stakeholder Analysis


Keells Super identifies its internal players –
the employees and shareholders and its
external stakeholders – consumers, suppliers
and the community as the ones with the
greatest impact on the organisation (John
Keells Holdings PLC, 2020).

With reference to the detailed stakeholder


analysis in Appendix 2, the key
stakeholders of Keells Super can be mapped
according to the Mendelow’s Matrix in
terms of power and interest in the following
manner.

Figure 3: Mendelow's Matrix


1.1.4 Key Customer Segment
The B2C customer base of Keells Super comprises of both urban and rural customers of mostly
middle and upper-income categories. The selected key customer segment is “Millennials”, who are
young adults of the 21st century. Millennials mainly are middle, high income earning urban customers,
who are digital and tech savvy with attributes such as brand orientation, convenience, trendy lifestyles
etc. Statistics show that the Sri Lankan urban population is still relatively low, 19% in 2018 and will
grow up to 32% in 2050, whereas the ageing population is growing continuously (12.4% in 2018 and
will grow up to 34% in 2080). The growth of the urban population shows that millennials too shall
grow simultaneously and at the same time, the ageing population at the time of 2080 will comprise of
today’s millennials (John Keells Holdings PLC, 2020). Hence, Keells should be more concerned and
appeal to this customer segment.

1.1.5 Rationale for the Choice of “Customer Loyalty” as the Theme for Keells Super
Convenience has become a major requirement and benefit that contemporary Sri Lankans are
looking for with the increasing influences from the global north. The conventional model of
food stores and supermarkets has now developed into the concept of "mega stores" and
towards heavy discount models. Keells, boasting upon their Nexus loyalty card programme
with a customer base of approximately 1.3 million active members, have not been able to
convert the same for the Nexus Mobile scheme, which appears to have only 600 000+
members (John Keells Holdings PLC, 2020). This is a clear demonstration of how the
millennials (Key customer segment) are yet at very lower stages of the customer loyalty
ladder of Keells. During the recent COVID-19 pandemic, although Keells was responsive,
they weren’t responsive enough in terms of what they could have provided for their loyal
customers, such as prepacked bundles of goods that customers regularly purchase. Over the
years, Keells' premium income has grown in par with the brand value which has increased by
an impressive 52% in 2019, while the market leader, Cargills suffered a 7% decline in their
brand value during the same period (Brand Finance, 2019). To uphold such growths in
revenue as well as the brand value, Keells should focus on loyalty and penetration within the
existing market rather than new customer acquisition, as the latter is costlier.

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1.2 Customer Loyalty through Corporate Reputation, Identity and Image


of Keells Super
Corporate identity, image and reputation have pulled in intrigue from a wide scope of
scholastic disciplines, because of their immaterialness and their significance in building
competitive advantages for an organisation (Tanković, 2015).

1.2.1 Corporate Reputation

Corporate reputation can be defined as the general assessment of an organisation held by its
inner and outside stakeholders, depending on its past activities and likelihood of its future
conduct. Corporate reputation is built over time as a result of steady execution and escalated
compelling communicational efforts (Tanković, 2015).

Frombrun initially identified the 4 facets of corporate reputation through the below depicted
model (figure 4) which was later modified by Fill. The model displays how corporate
personality, identity and image will contribute to the creation of reputation (Fombrun, et al.,
2000).

Figure 4: Corporate Reputation Model

1.2.2 Corporate Personality

Corporate personality
is the way the
organisation acts.
Personality portrays
mission, previous
accomplishments,
general goals and
Figure 5 : Corporate Personality structure which can be
broadly categorized
under the umbrella of strategy and also the culture which simply means the way of life within
the organisation (Anon., n.d.).

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Corporate Digital Communications Membership No: 40073852 December 2020

1.2.3 Corporate identity

Corporate identity is the articulation of the essence and working states of an organisation
(Tanković, 2015). It is also a way of differentiating a company, related to the way the
company conducts its operations and to the tactics it uses and implements (Minkiewicz,
2011).

Identity portrays the extraordinary


attributes profoundly embedded in
the conduct of the organisation's
individuals which helps
employees to relate and identify
with the organisation (Tanković,
2015).

Figure 6: Corporate Identity

In terms of figure 6, it could be understood that an organisation is defined essentially by its


conduct and behaviour. Symbolism is portrayed through logos, language, art and interior
design of the organisation. Symbolism is the corporate personality blend's most observable
segment. Communication which is the most flexible of the mix, characterizes messages in
formal and casual interactions with customers, staff, society and policymakers.

1.2.4 Corporate Image

Powerfully interrelated with


corporate reputation, corporate
image is reliant upon an
individual's beliefs, emotions,
thoughts, impressions, and is
supported by the information
communicated by the
organisation, administrative
attitudes, conduct and Figure 7 : Corporate Image
philosophies (Richard & Zhang,
2012). Organisations must now recognize that more consideration must be weighed upon the
corporate image as customers are willing to consume goods and services which are supported
by a satisfactory image (Bahtiar Mohamad, 2007).

The significance of corporate image is expanding since the desire of society towards
corporate social responsibility. In settling on purchasing choices, a significant number of the
customers respect the environmental and social image of organisations. A few organisations
including Keells (Rebranding with green initiatives) have understood and capitalized on this
and earned tremendous revenues through socially and ecologically responsible conduct.

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Corporate image, translated from the company's identity (what the organisation is), is created
using the perception of corporate identity projected in the hope of influencing purchase
intention, the willingness to invest, or the desire to work in the company (Balmer, 1995; Van
Riel, 1995).

1.2.5 Customer Loyalty through Corporate Reputation

Customers of an organisation exhibit their


loyalty with the loyalty ladder (figure 8) in a
defined sequence which most of the time is
consistent (Narayandas, 2005).

Figure 9 demonstrates the chain of corporate


reputation, which ultimately creates satisfaction
and customer loyalty. Loyalty can be
fundamentally improved by developing the
reputation of the organisation in the eyes of the
customer which is the corporate image (Cahill,
et al., 2004). There is a positive connection
among reputation and corporate performance. A
Figure 8 : Loyalty Ladder
solid reputation gives better chances to create
lasting relationships with
customers and other key
stakeholders.

The corporate reputation


of Keells Super is built
upon the commitment
towards improving the
quality of life with
creative encounters, great
quality ingredients and
fresh food at the
appropriate prices for
clients, which is Figure 9 : The Corporate Reputation Chain (Davies et al., 2003)
strengthened through the new brand identity and store plan of Keells.

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1.3 Influence of Stakeholders on the Corporate Reputation of Keells

Corporate reputation is an overall measurement of the company from its stakeholder


perspective (Axon, 2016). When meeting the requirements of different stakeholders, certain
compromises will have to be made. The most successful businesses are the ones that handle
the needs and aspirations of their stakeholders effectively (Anon., n.d.).

The digital presence of a company plays a key role in handling different stakeholders. The
digital communicational efforts of Keells Super similar to other competitors in the
supermarket industry is maintained mainly through its social media platforms and website.

The Mendelow’s Matrix can be used to map the stakeholders of Keells Super in terms of their
power and interest towards the organisation. Using this tool, the management can concentrate
on the "right parties" that can have the greatest influence on the company and utilize their
resources for maintaining relationships with stakeholders according to their position in the
map.

Figure 10: Stakeholder Mapping based on Mendelow's Matrix

The influence of the main stakeholders identified from this map (further details in Appendix
2), on Keells Super’s corporate reputation can be understood through the following table.

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Stakeholder Type Stakeholder Stakeholder Influence on Corporate Stakeholder Engagement Power Interest
Expectations Reputation
Shareholders/ Keep • Share price growth The reputation of the organisation is one of • Annual General Meeting Low High
Capital informed • Sustainable returns the key factors that legitimately influence • Quarterly financial
providers • Corporate governance when settling on investments and investor performance statements
• Ethical business value. Lower reputation will result in lower • Press releases
practices investments and in the other way around, if
• Strategic long-term shareholders withdraw from investing, it
outlook would adversely affect the reputation of
• Respond to Keells.
macroeconomic
conditions

Customers Key • Better service Keells is committed to delivering quality • Customer surveys High High
player • Value for money food through extensive reverse integration • Social Media
• Product responsibility and cost effectiveness based on the • Company website
• Attitude of employees requirements of the customers as negative • Press Releases
connotations on reputation will be created if
customer needs are not properly understood.

Even today most customers consider


reputation to be a major factor affecting their
purchase decision as well as loyalty.
Suppliers Keep • Consistent Keells ensure continuous and fast customer • Individual sale related Low High
informed improvement in demand service through a refill system to avoid information reports
• Knowledge sharing delays. The promise of product quality by • One-on-one discussion
• Fair pricing Keells to its customers mainly depend upon on issues such as product
• Continuous the quality of suppliers. One bad supplier quality
relationships can destroy the entire reputation of Keells in • On-site visits
terms of improving the quality of life. • Performance feedback

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Keells currently is aiming at growing its • Rewarding outstanding


direct channels, where the business has performance
introduced approximately 130 new products
(John Keells Holdings PLC, 2020).
Employees Keep • Attractive remuneration Employees are categories of stakeholders • Employee performance Low High
informed • Career development who are kept informed to ensure that major evaluations
• Safety in the Woking problems are avoided. • Focus group discussions
environment • Employee portal of the
Corporate reputation is one of the primary Company network
factors that job seekers and representatives • Feedback on employee
are enthusiastic about when been attracted or performance
when deciding to retain within an • Recognition through
organisation, and simultaneously corporate rewarding
reputation is significantly affected when • HR day and training on
employee behaviour changes as they are the employee rights
ones that come directly into to contact with • Open box for
customers. suggestions
Remuneration package, advantage, talent
management and adaptable workplaces
welcomes employees to influence positively
on reputation.
Regulatory Keep • Protection of consumers Reputation of Keells is highly dependent • Declaration on High Low
bodies satisfied and manufacturers upon decisions of regulatory bodies such as performance
(Consumer against competitive the Consumer Affairs Authority as, if there • Expert opinion panels
Affairs trade practices are any irregularities during inspections or • Annual reports
Authority) • Controlling prices complains against the supermarket, such
• Maintaining health bodies have the authority to take strict action
standards which may permanently leave a demerit on
the reputation of the organisation.
Table 2: Stakeholder Analysis –Author Generated based on Annual Report

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Corporate Digital Communications Membership No: 40073852 December 2020

TASK 2
WORD COUNT - 2210
Strategic Report
To: Senior Management Team
From: Marketing Consultant
Date: 27th November 2020
Executive Summary
The report initially identifies the current fit between the strategy, structure,
systems and culture of Keells Super in relation to the positioning and reputation
to determine gaps between image and identity. Outline strategies to 14develop
corporate reputation and brand equity are then recommended while evaluating
RepTrak and BAV as approaches to measure and monitor brand equity.
Corporate Digital Communications Membership No: 40073852 December 2020

2.1 Positioning and Reputation of Keells Super


As indicated by the model set forward by Frombrun and Fill (figure 4) it is clear how
personality, identity, image would ultimately create corporate reputation. Corporate
personality is comprised of predominantly corporate culture and strategy which would
incorporate structure and systems too, which by and large would have an impact on
reputation (Fombrun & Van Riel, 1997).

2.1.1 Current Strategy, Structure, Systems and Culture of Keells Super in relation to its
Positioning and Reputation

Evaluation in Relation to Positioning and Reputation

Strategy According to the Ansoff Matrix depicted in Appendix 4, it could be


identified that Keells Super is following both the product and market
development strategies. Product development is followed as new products are
constantly presented to the existing market, where Keells introduced 130 new
products during a one-year period as of March 2020. Market development is
understood by the opening of 15 new supermarket outlets and allocation of
further 1.97 billion for new store operations (John Keells Holdings PLC,
2020).
In terms of Porter’s Generic Strategies (Appendix 5), Keells Super is
following a differentiation strategy as they cater to the total market while
their competitive advantage is based upon differentiation on freshness and
eco-friendliness.
Keells Super has positioned themselves as a green brand and their entire
reputation is built upon this concept.

Systems In relation to positioning and reputation of Keells Super as an adaptive, eco-


friendly brand, the systems utilized are not up to expectations. They operate
basically with the use of few systems including an Internal Control System,
Risk Management System and an upgraded Warehouse Management System.
Such systems could enable the organisation to meet the customers’ demands
and needs but are insufficient to create loyalty among millennials.
Nevertheless, certain plans and allocations have been made to acquire and
install Cognitive Systems/Artificial Intelligence (AI), Big Data and Robotic
Process Automation (John Keells Holdings PLC, 2020). Yet, Keells Super
would highly require systems such as a Real-time Customer Relationship/
Complaint Handling Systems in order to achieve their objectives of loyalty.

Structure A tall structure with few divisions can be seen in Keells Super. It is a
moderately large organisation with 4917 employees, with a fairly narrow
span of control that supports their centralized decision-making structure. It is

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a traditional top down structure according to Fill’s classification.


This could come in the way of Keells Super’s positioning and reputation as
an adaptive brand with an environmental concern. Tall and rigid structures
usually do not facilitate adaptiveness and innovations. Looser the structure,
higher the adaptability and agility (Rubin, 1979).

Culture The current culture of Keells Super can be analysed based on the Cultural
Web Model developed by Johnson and Scholes shown in Appendix 6.

Accordingly, it can be understood how the culture of Keells Super supports


to uphold their reputation and positioning in the market as an adaptive brand
that focuses on improving the quality of life with a higher focus towards
environment, except for the minor drawbacks in their organisational and
power structures.

Table 3: Current Strategy, Structure, Systems and Culture of Keells Super

2.1.2 Current Gaps in Image and Identity of Keells Super and Recommendations

In brief, the corporate personality of Keells Super can be described as friendly, pleasant,
socially responsible, reliable and up to date as per the corporate personality scale developed
by Davies, depicted in Appendix 7. Corporate identity is how the company wants to be
perceived by the customers and public. Keells Super identifies themselves as a corporate that
is submitted towards improving the human life with inventive experiences, extraordinary
quality ingredients and fresh food at suitable costs for customers with the ideal utilisation of
innovation in order to be adaptive to the market, likewise with a more prominent spotlight on
environmental conservation. Nevertheless, there are certain gaps in identity and image as
Keells is not always perceived by the customer in the exact same way.

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Gaps between Image and Identity Recommendation

1. Lagging adaptiveness to Digital Technology – although Achieving loyalty of


Keells was the first to introduce an online supermarket in Sri millennials is not an easy
Lanka, and regardless of their attempts to portray an identity task if Keells Super is
of an adaptive brand, the public doesn’t accept this at all slow to adapt to digital
points mainly in the arena of technological adaptiveness. The technologies as it is the
main reason behind this has been growing technological growing trend of the
advances of other competitors. E.g. – Cargills introducing customer segment. The
their own Mobile Application for online shopping. existing digital strategy
should be enhanced, and
strategies should be
focused on new
technological applications
such as e-commerce.

2. Poor CSR Communication – Keells Super carries out Effective marketing


massive Corporate Social Responsibility programmes such communications strategies
as “Protect the Planet” (campaign against single use plastic should be developed
within their stores itself) and identifies them as a socially specially to recognize and
responsible brand. But there is a significant gap of the CSR spread word of the CSR
activities they conduct and the communicational efforts that activities undertaken by
are put to keep customers and the public informed. Hence it Keells. Such efforts
can be identified that the social responsibility would definitely
communication and advertising of Keells is very poor. contribute to the creation
of loyalty among new
generations who have a
fashionable concern about
the environment.
Strategies can be devised
upon platforms such as
social media.

Table 4: Gaps between Image and Identity

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2.2 Strategies to Develop Corporate Reputation to Build Brand Equity of


Keells Super

Corporate signs, for example, corporate image and corporate reputation, are conceivably
compelling instruments to reduce customer vulnerability and uncertainty about brands in
developing business sectors and will contribute to upgrade brand equity (Heinberg, et al.,
2018).

2.2.1 Outlined Strategies to Develop Corporate Reputation

Keells should focus on devising two main strategies covering the gaps in their image and
identity in order to develop brand reputation ultimately to enhance brand equity with the
intention of gaining the loyalty of millennial customers. The two outlined strategies are being
discussed below.

➢ Increase revenue generated by loyal millennial customers to be 30% of total revenue


by March 2023 by enhancing adaptiveness to digital technology to strengthen
corporate reputation of Keells Super.

Innovation and technological adaptiveness are keys to gaining customer loyalty of


millennials. Therefore, the existing organisational structure should be further loosened while
enhancing sensitivity and adaptiveness towards technology. E-commerce has reformed the
retail industry. It has developed to meet the changing needs of individuals, and to make
internet shopping simpler for the modern-day client. In 2019, retail online business deals
overall added up to 3.53 trillion US dollars and e-retail incomes are extended to develop to
6.54 trillion US dollars in 2022 (Statista, 2020). With the fully fledged website of Keells
Super that is currently operating, Keells could further focus on generating higher revenues
from millennials through the development of a Mobile Application to facilitate online
shopping to challenge and compete with the market leader, Cargills which has their own
Mobile App. Techniques such as opinion surveys too should be utilized to identify the
personalized needs of the customer segment. The overall strategy will enhance the reputation
of Keells as an adaptive brand.

➢ Institutionalise a compelling communication system for CSR programmes to


enhance corporate identity of Keells.

Keells Super, in line with their parent company carries out major CSR projects with a higher
focus towards the Planet pillar in the ‘Triple Bottom Line’ framework as they have rebranded
themselves as an eco-friendly brand. Throughout the years Keells have been conducting sub
projects such as “Keells Green Bag, Bring Your Own Bag, Bring Your Own Container”,
under their CSR project, “Protect the Planet”. The key issue of customers not been aware of
such great initiatives of Keells, can be overcome by implementing advanced communications
and correspondence systems with an expanded focus on new technological platforms such as
social media to properly promote their CSR efforts. This would help to further communicate

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the identity of Keells as a green brand improving the ideal image, thus retaining loyal
millennial customers.

2.2.2 Impact on Brand Equity

A corporate brand can be characterized as a visual portrayal of an organisation which makes


a group of products or businesses known to the world using a single name, vision personality
and a typical arrangement of images and symbols. The parent company of Keells Super
which is John Keells Holdings is using an endorsed branding strategy for their subsidiaries
whereas Keells Super as a corporate utilises a monolithic strategy for their products where
one visual style and symbols are used for quick identification and acknowledgment.

Through the implementation of the above-mentioned strategies to develop corporate


reputation of Keells Super, it would lead to create brand equity. Brand Equity can be
essentially characterised as the value created by the brand with affiliations and emotional
connection in the customers' mind. The effects such strategies would have on the brand
identity and ultimately the brand equity if the strategies are successfully implemented in
future, could be understood through below given analysis conducted based on the Brand
Identity Prism developed by Kapferer.

Figure 11: Brand Identity Prism - Keells Super

The brand identity informs, guides, helps to develop and implement the overall
communicational strategy of an organisation which create and maintain the brand equity
(Madhavaram, et al., 2005). The added benefit Keells Super gains through the
implementation of the outline strategies is the loyalty of the millennial customer base due to
technological adaptiveness in conjunction of the creation of brand equity, as Corporate Social
Responsibility has a significant positive impact on corporate image and brand equity which
can be promoted through effective communication (Esmaeilpour & Barjoei , 2016).

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2.2.3 Role of Employees within the Strategy

The role of employees


within the entire
outline strategies
devised to develop
corporate reputation of
Keells can be
understood with the
use of the model
developed by Van Riel
depicted in figure 12.

Figure 12: Drivers of Corporate Brand (Van Riel)

Employees tend to identify themselves strongly with what they are working or the
organisation they are working in, based on the closeness and instrumental ability to satisfy
their needs. The lower the identification, lower the support of employees to the corporate
brand and this would negatively affect the brand reputation and equity of Keells that is
expected to be built through the strategies. For any strategy to be successful the employees
should first identify themselves with the corporate brand and Keells should support this
process.

The loyalty, retention


and productivity of
employees too have a
major impact in
creating customer
loyalty as shown in
Reichheld’s Loyalty-
based Cycle of
Growth Model
(figure 13). The
model itself can be
used to guide the
employees in order to
develop appropriate Figure 13: Reichheld's Loyalty-based Cycle of Growth Model
relationships with
millennial customers to enhance loyalty.

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2.3 Approaches to Monitor and Measure Brand Equity

Brand equity is the value of the brand for an organisation. Keells Super is the highest valued
supermarket brand in Sri Lanka and their growth has been immense.

Table 5: Brand Value of Keells Super (Brand Finance, 2019)

The Keller’s Brand Equity Model which is also known as the Customer-Based Brand Equity
identifies that the way customers think and feel regarding a brand should be shaped in order
to create a strong brand which in turn would lead into repeat purchase and loyalty. Figure 14
shows the model which is applied to the current context of Keells Super.

Figure 14: Keller's Brand Equity Model - Keells Super

In addition to the Keller’s Brand Equity Model, there are certain commercial models that can
be used for the purpose of monitoring and measuring brand equity of which some are
discussed below.

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2.3.1 RepTrak

RepTrak is the standard estimation that was initially created by Charles Fombrun who gave a
measurement of the perspectives of people on the reputation of world's most popular
organisations. This model provides organisations a system for benchmarking their corporate
reputation globally (Chan, et al., 2018).

Figure 15: RepTrak Model (Reputation Institute)

The RepTrak™ is the world’s leading reputation data and insights company and their model
measures four significant areas which are Trust, Esteem, Admire, and good Feeling based on
the viewpoint of stakeholders regarding the organisation. The reputation is based on seven
dimensions or features in particular, Products/Services, Innovation, Workplace, Governance,
Citizenship, Leadership, and Performance. Better reputation would lead to behaviours such as
purchase, advocacy etc., ultimately enhancing the loyalty towards the brand.

Keells Super could utilize this model in order to keep track of their reputation and ultimately
brand equity as, a minor drop in reputation can adversely affect equity. This approach would
assist Keells to identify the drivers of reputation and equity as well as the suitable strategies
to enhance customer loyalty towards the organisation.

2.3.2 Brand Asset Valuator (BAV)

Brand Asset Valuator, a model created with accomplices at Columbia, MIT, Dartmouth, and
the University of Washington is one of the world's biggest and driving investigations of
brands. This methodology causes not only to comprehend a brand against its class, yet in
addition gives understanding into its bigger role in culture (Anon., 2018).

Also referred to as the Young & Rubicam Model, BAV measures the brand value based on
four main factors namely Differentiation (ability to stand apart from competition), Relevance
(actual importance to the target market), Esteem (customers’ perception of brand growth and
quality) and Knowledge (awareness and understanding of the brand identity).

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Differentiation and
relevance can be together
referred to as brand
vitality as it focuses on
the growth potential and
on the other hand, brand
stature is made up of
esteem and knowledge
which determines the
power of the brand. The
model could help Keells
Super to identify areas
that they could improve
such as the knowledge
aspect in order to enhance
Figure 16: Brand Asset Valuator the brand value as
relationships between the
four brand pillars creates an overall picture of the challenges and opportunities for the brand.

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TASK 3
WORD COUNT - 1699
Strategy Paper
To: Senior Management Team
From: Marketing Consultant
Date: 27th November 2020
The strategy paper initially covers environmental trends driving changes in
stakeholder’s digital behaviour. Next, certain digital channels distinguished into
categories of Paid, Owned, Earned and Shared are appraised while highlighting
digital tools that can impact the corporate reputation of Keells. Ultimately, a
comprehensive digital communications strategy is devised, identifying24 Google
Analytics and Hootsuite as technologies to measure and monitor the corporate
reputation of Keells.
Corporate Digital Communications Membership No: 40073852 December 2020

3.1 Environmental Trends Driving Digital Behaviour and Strategies for


Digital Communications
3.1.1 Environmental Trends Driving Changes in Digital Behaviour of the Stakeholders
of Keells Super

Different stakeholders have different narrative positions and roles in the digital
communication sphere (Laaksonen, 2016). Stakeholder digital behaviour is constantly
subjected to change due to growing environmental trends.

Trends Evaluation Impact on Keells and Stakeholder


Digital Behaviour
E-Commerce Simple buying and selling Consumers expect an omnichannel
Disruption transactions over the internet approach from retailers to satisfy their
have evolved to create a variety needs. Millennial consumer shopping
of e-commerce business models. habits will continue to change with
Currently 29% of the world’s technology and Keells Should be able to
population engage in such online cater to these, to create loyalty, through
transactions (DataReportal, their website and focus on new modes
2020). such as a mobile application.
Artificial Intelligence embedded in AI enables assisted recommendation,
Intelligence machines is a digital trend that demand forecasting, personalisation etc.
(AI) has reshaped entire human in the retail industry.
lifestyles. AI is an umbrella term AI might negatively impact employees
including numerous technologies due to potential job loss whereas in the
such as Machine Learning, viewpoint of customers it is crucial for
Predictive Analysis, Robotics loyalty creation via greater experience,
etc. customer surprise.
AI penetration in worldwide E.g.: Walmart uses facial recognition
retail organisations in 2018 has technology to spot frustrated customers.
been 42% (Statista, 2020).
Big Data Big data refers to the analysis of Big data facilitates retail industry in
huge volumes of structured and terms of identifying associations,
unstructured data to assist sequences, classifications and
decision making. forecasting. Keells could be the first
Big data analytics may include movers in the market by using Big data
Online Analytical Processing simultaneously with AI to create
(OLAP), Online Transaction personalised customer offers for
Processing (OLTP), data mining, enhanced loyalty.
text mining, web mining, etc. Big data could assist senior management
in precise decision making however
creating data vulnerabilities and
customer privacy issues (Shamsi &
Khojaye, 2018).

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Corporate Digital Communications Membership No: 40073852 December 2020

Internet of IoT eliminates the need of IoT technologies could enable Keells to
Things (IoT) human to computer and human create real-time links with stakeholders
to human interactions via the for greater value creation and enhanced
creation of interrelated systems loyalty.
of digital devices for enhanced Technologies such as Electronic Data
connectivity. Interchange (EDI) can be used to create
superior replenishment and streamline
inventory management systems with
suppliers to ensure product availability.
E.g.: Retail Link system of Walmart
linking suppliers directly to the store
records.
Use of IoT could lead to the creation of
Smart Supermarkets and greater
customer experience increasing profit
margins of Keells.
Table 6: Trends Driving Stakeholder Digital Behaviour

3.1.2 Digital Communication Strategy to Enhance Customer Loyalty of Keells

The RACE planning framework (Appendix 8)


can be utilised to create and manage a digital
communications strategy for Keells.

The foremost activity of the model is to plan the


goals and strategy. The branded content should
be based on the ultimate objective of enhancing
customer loyalty while addressing reputational
gaps of Keells such as communicating CSR
initiatives.

Online Reach could be created mainly via the


website and social media networks of Keells
using Social Media Marketing etc., while tech
driven and CSR focused content should be used
to get the customers to Act. Conversion should
be smoothened even digitally via secure
payment gateways and virtual assistants and
finally, customer Engagement should be ensured
for enhanced loyalty, through encouraging user
Figure 17: RACE Model (Dave Chaffey, 2020)
generated and customer collaborated content.

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3.2 Digital Channels and Key Technology Developments in Digital Tools

3.2.1 Effectiveness of Digital Channels Available within the Market

Dietrich’s PESO model (figure 18) can be used to categorize the currently available digital
channels in the market into four main divisions namely, Paid, Earned, Shared and Owned.

Figure 18: PESO Model

Media Channels Audience Effectiveness


Type (Appendix 9)
Paid Sponsorships Customers in the Such channels usually have guaranteed
Affiliate Marketing Interest & exposure to large audiences faster, which
Display Ads Awareness and can be used to effectively advertise new
Google Ads Search stages of products, promotions of Keells.
Facebook Ads the customer
journey, Suppliers In contrast, such channels could be
expensive and as depicted in Appendix 10,
it is clear how the worldwide spending on
digital classified and banner ads is
proportionally lower (Statista, 2020).
Earned Influencers Customers in Cost effective and transparent way of
Partnerships Research and gaining trust of customers and other related
Reviews Experience stages parties. Recommendations and reviews
reshape the consumer path-to-purchase
while being an indicator of customer loyalty
towards Keells.

Contrarily, such channels can be unreliable


as there is no guarantee of an advertisement
or mention.

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Shared Facebook Customers in Appendix 11 shows how social media is the


Instagram Research stage, most important modern digital channel
YouTube Competitors, (Nielson, 2018).
Suppliers,
Community Retail industry can make use of appropriate
social channels to create greater
engagement with customers and other
audiences.

6 Million of Sri Lankans are active


Facebook users and 1.1 Million are active
on Instagram with a quarterly growth of
10% (DataReportal, 2020). This shows how
Instagram will be a future trend and Keells
should optimise on it.
Owned Company Website Customers in the A more reliable and effective channel which
Mobile Application Conversion stage, is also a long-term asset. Shows
Newsletters Suppliers professionalism while driving traffic and
supporting the e-commerce functions of the
organisation. Content should be consistent
with other channels and Keells could utilise
such channels quite effectively to cater to
customers during the current COVID
pandemic.

Such channels should be regularly


maintained and monitored while preventing
malicious attacks from external parties.
Table 7: Digital Channel Effectiveness

Figure 19 depicts the current digital channel usage of Keells.

Figure 19: Current Digital Channel Usage of Keells


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3.2.2 Impact of Key Technology Developments in Digital Tools on the Corporate


Reputation of Keells

There have been several technological advancements in terms of digital tools that
organisations could utilise to enhance their corporate reputation.

Digital Tool Impact on the Corporate Reputation of Keells


Social Media Enables interaction with target audiences, drive sales and website traffic via
Marketing strategy, publishing, engagement, analytics and advertising.
(SMM)
Keells could utilise SMM to build loyalty, ensure social presence and
audience participation of millennials to enhance the corporate identity in
terms of CSR communication to showcase credibility and responsibility.
Viral/ Ad Campaigns, Boosted Content, User Generated Content etc. can be
used in popular networks (figure 20) for this regard.

Figure 20: Social Media Usage (Digital Information World, 2019)

The surge in social media usage may trigger negative Word of Mouth and
spread of rumours which should be avoided via social listening and social
mentioning analysis.
AI-Enabled Chatbots, not simply equipped with AI but also Emotional Intelligence can
Virtual be used to address the reputational gap of Keells of not being perceived as a
Assistants technologically adaptive brand.

Virtual Assistants can be incorporated in


the Keells website and proposed mobile
application to enhance loyalty as it is the
3rd most preferred method of
communicating with brands globally and
as 78.38% of millennials prefer chatbots
(GoodFirms , 2019).

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Figure 21: Chatbot Usage (GoodFirms , 2019)

On the contrary, such chatbots may not be able to completely provide the
human touch that customers expect. In such instances automation may be
criticised.
Table 8: Key Technology Developments in Digital Tools

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3.3 Digital Communications Strategy and Digital Technologies to Monitor


and Measure Reputation of Keells Super
3.3.1 Digital Communications Strategy to Protect and Strengthen Corporate Reputation
of Keells

A digital communications strategy for Keells has been devised based on the RACE
framework (Appendix 8) addressing gaps in corporate reputation while strengthening
stakeholder relationships to ultimately enhance millennial customer loyalty. The branded
content of the strategy will mainly focus on maintaining regular communications on CSR on
the digital channels while demonstrating the digital technological adaptiveness of Keells.

Content will be published and promoted mainly on the Keells Website and
Social Media Networks such as Facebook and Instagram. A dedicated CSR
campaign will be carried out via Social Media Marketing with weekly regular
Reach
posts and a quarterly boosted campaign to enhance corporate identity of Keells
drawing attention of millennial customers while reinforcing the responsibility
aspect of Keells to all stakeholders.
Interactive tools such as Canvas/ Carousel ads on Facebook, quick surveys,
quizzes and short video clips of green aspects and CSR will be installed on
Act digital channels of Keells to get millennials to spend more time before the
actual conversion. This could positively impact the perception of many
stakeholders including suppliers, regulatory bodies and the community.
The e-commerce process can be automated via the instalment of an AI-enabled
Virtual Assistant on the Webpage and proposed Mobile Application of Keells
to support customers through transactions while signifying the technological
Convert adaptiveness of Keells. Such tools would differentiate the online shopping
experience enhancing the loyalty of millennial customers and triggering online
revenue, increasing shareholder value and positively impacting the overall
organisation including employees.
Customer advocacy for repeat purchases and referrals can be promoted by
encouraging engagement through User Generated Content (UGC). The ‘Protect
the Planet’ CSR project can be digitally revitalized with a Hashtag campaign
Engage on social media. A tree planting initiative can be promoted where customers
can post content with hashtags, #ProtectThePlanet, #PlantATree and the
initiative of shopping with eco-friendly reusable bags can be promoted via
hashtags, #BringYourOwnBag, #BYOB.
Table 9: Digital Communications Strategy for Keells

Given below is a Gantt Chart demonstrating the synchronised flow of activities through
channels and tools of the digital communications strategy of Keells for a period of three
quarters.

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Figure 22: Gantt Chart of the Digital Communications Strategy of Keells

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3.3.2 Digital Technologies to Monitor and Measure Reputation of Keells

The corporate reputation of Keells that is built on digital platforms can be monitored and
measured using several digital technologies of which two are discussed below.

Digital Channels Monitoring & Measuring Corporate Reputation and Loyalty of Keells
Technology Monitored
Google Website GA is a tool introduced by Google enabling users to measure and monitor
Analytics marketing, content, products etc. of sites and apps (Google , n.d.).
(GA) Mobile It would provide Keells with a dashboard (figure 23) to identify overall site
traffic, top content, highest customer clicks as well as negative referrals.
Application
The impact on reputation can be measured by identifying the visual
insights of effectiveness, best visitors and campaigns that generated the
highest traffic. Keells could create ‘Advanced Segments’ to understand and
target behaviour of millennials on their platforms to enhance loyalty.

Figure 23: Google Analytics Dashboard


Hootsuite Social Hootsuite is a tool that enables management of multiple social media
Media networks via a single and secure platform (Matia, 2016).
Networks It would permit Keells to monitor how millennials perceive the brand and
measure effectiveness of digital efforts through social listening and
engagement. Hootsuite facilitates in-depth analytics including keyword,
hashtag, mentions tracking and features such as planning, scheduling future
content.
The ‘Review Trackers Extension’ (figure 24) on Hootsuite would enable
Keells to monitor reputation and enhance loyalty by tracking positive and
negative reviews while responding, showing off social proof as well as
making improvements based on negative feedback.

Figure 24: Review Trackers Extension - Hootsuite

Table 10: Digital Technologies to Monitor & Measure Corporate Reputation


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References
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Chan, T. et al., 2018. Application of Selected Facets of RepTrak™ Reputation Model on Carlsberg
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DataReportal, 2020. DIGITAL 2020: GLOBAL DIGITAL OVERVIEW, s.l.: s.n.

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November 2020].

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John Keells Holdings PLC, 2020. ANNUAL REPORT 2019/20, s.l.: s.n.

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Appendices

Appendix 1 - General information

Vision Mission of the company

Mission of the company “To be the largest provider of value-added meat, fish and vegetable
products in Sri Lanka while establishing regional brand presence and
catering to international markets with Asian communities,
environmentally friendly technology.’
Vision of the company “Our passion is to deliver pleasure and nutrition throughout people’s
lives, through exciting and superior products, whenever and wherever
they choose to eat and drink”
Specific Objectives To be familiarised with the safe and hygienic production procedures
from raw materials to finished products at Keells Food Products PLC.
To be familiarised with the quality assurance practices and laboratory
testing those are applied for raw and finished products.

(John Keells Holdings PLC, 2020)

SWOT Analysis

Strengths Weaknesses
High Quality Consciousnes Staff Turnover
High technology Weak R&D

SWOT
Opportunities Threats
Online Market Competitors
Innovation
New Services

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Appendix 2 – Stakeholder mapping

Stakeholder Power Interest Influence Expectations


(H/L) (H/L) (H/M/L)
Shareholder L H H Development and survival of
the business with expanded
market valuation and future
income per share
Customer H H H Fulfil necessities, with value
for money, quality, comfort
and convenience
Employees L H H Professional stability,
development and coherence of
the business, compensation,
training and career
advancement
Government and Regulatory H L H Commitment towards public
Authorities (Consumer Affairs development and sustenance,
Authority, Department of Inland non-avoidance of government
Revenue) taxes and duty, protection of
rights of consumers and
related parties
Suppliers L H H Long term relationships and
reliable and timely payments
Community H L H Involvement in social causes
and protection of
environment, community
growth and development

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Appendix 3 - Stakeholders

(John Keells Holdings PLC, 2020)

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Appendix 4 – Ansoff Matrix (Ansoff, 1957)

Appendix 5 – Porter’s Generic Strategies (Porter, 1985)

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Appendix 6 – Cultural Web (Johnson & Scholes, 1992)

(Johnson & Scholes, 1992)

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Appendix 7 – Corporate Personality Scale (Davies et al., 2003)

Appendix 8 - RACE Marketing Planning Framework (Dave Chaffey, 2010)

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Appendix 9 - Modern Customer Journey

Appendix 10 - Global Digital Advertising Spending 2017-2024 (Statista, 2020)

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Appendix 11 - The Nielsen CMO Report (Nielson, 2018)

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