PEARSON BTEC LEVEL 5 HND IN BUSINESS

MANAGEMENT

CARGILLS (CEYLON) PLC

MARKETING ESSENTIAL

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Word Count:
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Acknowledgement

First of all I would like express my grateful thanks to Marketing Essential Lectures for giving us
such a proper lecture knowledge and on introduction to management. This assignment couldn’t
be completed without the effort and knowledge given by lecturer and also thanks to my family &
friends for helping this assignment.

Executive Summary

This report collaborate all information about introduction concept of marketing including current
& future trends marketing of Cargills Ceylon PLC. It consists key roles & responsibilities of the
marketing department / manager and discussed the importance of the marketing. Analysis the
significance effective interrelationship marketing strategies. According this report questions
make comparison between Cargills and its competitive organisation JKH. Analysis the SWOT &
PESTLE of Cargills.

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Table of Content

Acknowledgement....................................................................................................................... 2
Executive Summary..................................................................................................................... 2
Table of Content.......................................................................................................................... 3
List of Tables............................................................................................................................... 4
List of Figures.............................................................................................................................. 4
List of Abbreviations.................................................................................................................... 5
1. Introduction........................................................................................................................... 6
2. Key Roles and Responsibilities of the Marketing Manager and Marketing Functions of
Cargills (Ceylon) PLC..................................................................................................................7
3. Marketing Influences and Interrelates with other Functional Department of the Cargills
(Ceylon) PLC............................................................................................................................... 9
 HRM................................................................................................................................ 10
 IT & Finance.................................................................................................................... 11
 Production & operation Function.....................................................................................12
4. Value & Importance of the Marketing Role of Cargills Ceylon PLC.....................................13
5. The significance of having effective interrelationships between different functional
departments in the Cargills to have an effective marketing strategies.......................................14
6. Analysis of Cargills Ceylon PLC Marketing MIX Against its Main Competitor John Keels
Holdings..................................................................................................................................... 15
7. Situation Analysis of Cargills Ceylon PLC..............................................................................17
Porter’s Five Force................................................................................................................. 17
PESTLE Analysis................................................................................................................... 18
SWOT Analysis...................................................................................................................... 19
Conclusion................................................................................................................................. 19
References................................................................................................................................ 20

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List of Tables

Table 1: Role & Responsibilities of a Marketing Manager .................................................................8

Table 2: Production & Operation of Cargills........................................................................................12

Table 3 : Cargills various procedures & systems to build interrelationship.....................................14

Table 4: comparison & contrast between Cargills & JKH..................................................................17

Table 5 : PESTLE Analysis of Cargills.................................................................................................18

List of Figures

Figure 1 : Functional Areas of Cargills (cargills , 2020-2021 )............................................................9

Figure 2 : Principle of IT Governance at Cargills (Cargills, 2018-2019)..........................................11

Figure 3 : 7Ps of Marketing (Assemblo, 2021)...................................................................................15

Figure 4 : Porter's five Force (CGMA, 2021).......................................................................................17

Figure 5 : SWOT analysis of Cargills (cargills , 2020).......................................................................19

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 List of Abbreviations

Cases

CRM : customer relationship Management...........................................................................................5

Ex :- Example............................................................................................................................................7

FMCG : Fast Moving Consumer Goods................................................................................................4

HRM : Human Resourse Management..................................................................................................7

JKH :- John Keels Holdings...................................................................................................................12

MM : Marketing Manager.........................................................................................................................4

P & S : Product and Services..................................................................................................................3

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 Cargills (Ceylon) PLC

1. Introduction

Marketing is the activity, set of institutions and processes for creating, communicating,
delivering & exchanging offerings that have value for customers, clients, partners and society at
large (American Marketing Association , 2017). Marketing refers to a company undertakes to
promote the buying or selling of a P&S. Marketing includes all the activities a company does to
promote P&S to consumers marketing uses a marketing mix, also known as 4ps product price
location & promotion. At its core marketing identify the best costumers & draws the customer
attention to the P&S availability (Twin, 2020).

August 08 1844 Mr. William Milne and Mr. David Sime Cargill started a public warehouse import
and wholesale business in Colombo. Now known as Cargills Ceylon PLC. The house of Cargills
officially became incorporated as a public limited liability company. Cargills established its first
supermarket chain on Stable Street in Sri Lanka. In 1993 the company invested in the
manufacturing facility of Cargills quality foods. Cargills acquired the most popular QSR, KFC
franchise license and opened it to the Sri Lankan market (Cargills , 2020).

Vision - To be a global corporate role model in community-friendly national development.

Mission - Serve the rural community, our customers and all other stakeholders, through our core
business-food with love and other related businesses based on the three main principles of
reducing the cost of living
enhancing youth skills
Bridging regional disparity
by enhancing local and global markets (Cargills , 2020-2021).

The objectives of the marketing philosophy is that Cargills should pursue a marketing orientation
to work more efficiently and effectively that its competitive as opposed to making a profit for the
company to achieve a balance between high value and business markets for consumers.
Cargills main distribution strategy involves direct marketing where advertising through own
wholesale and own retail sales using pull strategy by encouraging to consumers for promote
consumers demand.

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Cargills using online marketing and social media marketing for build their distribution process.
Cargills promote their marketing on social medias through establishing their colorful
advertisements Cargills online is not only E-commerce platform but also a complete overhaul of
the grocery supply chain and its guaranteed to ensure customers can place their orders. A
platform that ensure that the consumer is an alternative to his or her own food city at the lowest
price in the market now online as well (Cargills , 2020).

2. Key Roles and Responsibilities of the Marketing

Manager and Marketing Functions of Cargills (Ceylon)
PLC

The MM is someone who responsible for the marketing functions and fined marketing resource
for a business or products. The MM needs to have a friendly, social & spontaneous nature.

Analysing market trends and competitors

(John keels holding, Aitken Spence PLC,
Coordinate with top management Trillium property management) overseeing
and monitoring the marketing campaigns,
negotiation and communication with third party
companies.

The Cargills group has three main operating

divisions including the retail, FMCG &
restaurant industries. Maintaining the goods
Supervise and coordinate business warehouse is a separately. Operation while
operations direct store deliveries are also carried out by
selected suppliers.

MM teams focus on developing new product

formulas to a lesser extent sugar & fat. While
Launch new P&S maintaining nutrition elements of Cargills
products. Cargills has also commenced
construction of new cheese facility.

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 According to market research conducted by
the company’s internal marketing research
team. The current market share of the full
range has been identified as only 8% of the
total fresh juice market (Cargills Kist) this is
mainly due to the direct & indirect competition
Marketing research and planning facing. It’s encouraging to see the FMCG
industry grow volumes throughout the year
customer preference for high quality nutrition’s
products and throughout research and
planning

Promoting P&S through an advertising in TV

channels, internet & social medias.
Distributing notices about organization
innovations to people in direct way and take
Approach suitable channels of actions to direct distributions and online
distribution purchasing. Cargills food city is the huge retail
shop of Cargills.

Maintaining the products quality to ensure to

customer safety. Cargills quality dairy &
Cargills quality foods are certified with three
ISO certification. They are ISO 9001:2000,
Maintain proper network with ISO 14001:2004, ISO 22000:2005. Having
supplies, customers, society & produced a new TV dinner range for eating
employees products cans & bags the newly installed
retard machine. Mostly CRM growing with
marketing managers. CRM system helps stay
connected to customers, streamline process
and improve profitability.

Table 1: Role & Responsibilities of a Marketing Manager (Business Today , 2011) (cargills ,
n.d.)

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 3. Marketing Influences and Interrelates with other
Functional Department of the Cargills (Ceylon) PLC

Marketing is not only much broader than selling, it is not a specialized activity at all. It
encompasses the entire business, it is the whole business seen from the point of view of the
final result, that is, from the customers point of view. Concern and responsibility for marketing
must therefore permeate all areas of the enterprise (Drucker, 1973 ).

The marketing process is usually carried out by a specialized department and the marketing
thinking should permeate the entire company. Creating an effective marketing plan will require
close interactions with other operational areas of the business. The nature of operational
organizations indicates the potential for conflict between functional areas when delivering an
organization planning (Triple a Learning , 2021 ).

Human
Resource

Opeartion
Information
&
Tecnology
Production

Marketing Finance

Figure 1 : Functional Areas of Cargills (cargills , 2020-2021 )

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The strategic planning process of the group sets the strategic direction and coordinates all
business. Planning & carrying marketing communication & public relation. Cargills operates
direct delivery services to the customers in the restaurants sector and introduction to E-Grocery
Cargills online store team now involved in direct distribution of groceries customers within the
Colombo district. Planning & conducting marketing research it will be helps to analysis sales
performance, market share, profitability, and customer reactions. The MM is pleased its focus is
on delivering valuable confectionery and new products growth brings strong results. The team is
constantly making new investments product delivery Ex: - culinary food – Kist, Beverages – Kist,
confectionery – Kist biscuits

 HRM

The marketing department should work closely with HRM to ensure the availability of
appropriate skills and staff positions. Marketing interfere the HRM through research & develop
new products ideas, meet productions targets, create an ambitious and competent sales team.
The HRM department will have multiple recruitment and training demands throughout the
organization. It should balance its obligations to market with other sector.

Cargills investing in food productions the sector will focus on milk development increasing
efficiency, securing supply chain, making cold chain & new product development. Staff strength
of the company as at 31 march 2021 is 1845 (2095 as at 31 march 2020) the staff strength of
group as at 31 march 2021 is 9875 (10522 as at 31 march 2020) (cargills , 2020-2021 ).

Sri Lanka largest supermarket retail chain, Cargills food city has created employment for young
people in the polonnaruwa district. The recruitment was carried out with the support of the
department of HR & employment, with whom Cargills has been working closely since 201 to
work locally. The Cargills agribusiness model has gained global recognition for connecting
farmers and entrepreneurs to the market through sustainable and inclusive value creation
process, which makes employee proud to work with the nation growing company (Daily News ,
2020 )

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  IT & Finance

The IT policy the panel establishes an overall structure for administration and related process
and information technology within the team. The structure is made up of process designed to
ensure effective and efficient use of id to activate the company achieving its objectives. Support
services that include IT, HR, corporate management, internal auditing and compliance, finance
& legal offered centrally to all business sectors during marketing and similar activities ads are
assigned by brand. Cargills started a model dairy farm technology and intention to delivery
increase financial assistance to farmer’s milk field and with better nutrition food, excellent care
for animals, and better management practices. (cargills, 2020-2021 )

tA
iM
R
g
n
a
k
s
m
e
p
Cu
lb
IfT
B
c
rP
&o

IT
Governance

Figure 2 : Principle of IT Governance at Cargills (Cargills, 2018-2019)

The marketing department should work closely with the financial sector. There is an adequate
budget to meet the needs for research, promotion and distribution. The financial sector has a
complete structure to ensure that all businesses operate within its financial capabilities. They
want all departments to work with in the budgets allocated to them. As whit all sectors,
marketing may want to spend more if lucrative marketing opportunities appear throughout the
year (cargills, 2020).

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  Production & operation Function

The Cargills organization operates very differently and detailed end to end supply chain is
related to food and agriculture lanka cooperates with many distribution chain partners, the team
24 was able to execute properly hours, 365 days of activity, uninterrupted connect a large
number of farmers suppliers with consumers throughout the country. Cargills group consists of
three key operation systems. They are: - 1. Retail operation
2. Food & Beverage manufacturing & distribution
operation
3. Restaurant operation

The main areas of the Cargills group are food retail, dairy, Ice cream, Beverages, Edible
ingredients, meat, confectionery, processed restaurants and distribution the manufacture of food
and beverages & the distribution sector includes 8 production facilities. The Cargills marketing
team directly involved import of selected goods, when connecting directly thousands of small
medium and large scale suppliers to make purchases various products throughout the board
fields. Is the function of dry materials carried out by six permanent Cargill distribution centers
intergraded storage capacity is high 400000 square feet and temporary distribution centers to
meet changes request (cargills , 2020-2021 )

Agri
Retail Restaurant Manufacturing Distribution Entertainment
Business

Cargills Food KFC Kist, kotmale, Millers Limited Good Ceylon

City, Cargills TGI Magic, Goldi, Harvest, Theaters
Express, Fridays Finest Beesafe
Cargills Crown
Food Hall, seeds
Cargills
Square

Table 2: Production & Operation of Cargills (cargills, 2020)

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 4. Value & Importance of the Marketing Role of Cargills
Ceylon PLC

Marketing helps people find the right P&S that meets customer’s needs and wants. Today this
situation is implemented as a profession by the broader process of marketing department of the
each company. Cargills Ceylon believes that every consumer’s expectations are not matched by
anything other than marketing power, which can lead to consumer expectations in one way or
another, as Cargills has developed their own interest in marketing through being the first to
achieve consumer preference.

Cargills foundations, technological, cultural activities, demography was initiated to further efforts
by going beyond business practices to reach citizens that would not necessarily be impacted
Cargills P&S. Cargills ensure its products, labeling & claims are safe, authorized by factual and
scientific evidence and consistently comply with Sri Lankan regulations.

Marketing is one of the most important things a business can do. Marketing not only can create
brand awareness, but also increase sales, grow business & engage customers. Without any
doubts, Cargills can be considered Sri Lanka’s leading retail chain one of the secrets behind
their success is effective marketing evolution using marketing metrics. Cargills is very innovative
company & they are implementing new marketing strategies & advertisements to attract new
customers and retain their existing customers.
Ex: - Cargills loyalty card not only offers customers discount and special offers, but also offers
customer 100% loyalty of Cargills and frequency of purchasing products (cargills food city ,
2016).

Large scale of service retail chains such as keels super, arpico super center & laugh sun up
operate in almost all districts and cities of the country, and they operate thousands of small
scale retailers across the country. The Cargills enterprises risk management framework
includes procedures related to identification and analysis, evaluation, treatment, mitigate &
monitor strategic, financial, external & operational risks. It helps the company effectively
enhancing market opportunities and enhancing competitive advantage in the long run (cargills ,
2019-2020 ).

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 5. The significance of having effective interrelationships
between different functional departments in the Cargills
to have an effective marketing strategies

Marketing having effective interrelationships with other functional departments its benefit
organization getting many advantages there are get better response to current & future market
trends, more streamlined sales process & facilitate sales, better product development, helps for
better production to maximize profit & revenue. The management’s first objective in response to
the lockdown was to build the confidence of the Cargills team by ensuring hygienic and safety
financial well-being of all team members. Marketing team updated and accepted several
attempts to engage with customers. First, retail groups facilitated door to door delivery by taking
customer orders by phone whatsapp & email. Cargills launched E-Commerce system to
reaching consumers across the country and enhancing the grocery shopping experience. The
objective of market risk management is to manage and control market risk exposures within
acceptable parameter while optimizing the return (cargills, 2020-2021)

Cargills expressing its commitment to technological innovation

LANKAQR
in the financial services sector, Cargills bank was the first
Transections financial sector in sri lanka to offer LANKAQR transections.
Cargills bank is facilitating technology based payment solutions.

Cargills proudly say that business is corporate social

responsibility. Cargills enhancing strength of sri lanka trough
Cargills Foundation & community development while investing in the future by
Sarubima Project educating our youth & next generation
Cargills initially contrived Sarubima project of reimbursement to
the farmers. Sarubima fund provides scholarship & farmer
insurance.

This system maintaining for secondary distribution, the Group’s

Sales Force Automation sales teams continuously monitor the outlet performance across
system the country

Acquisition & equity

Acquired set of activities and assets & They are initially
Methods
recognized at cost, which includes transaction costs.
Table 3 : Cargills various procedures & systems to build interrelationship (cargills, 2020)

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 6. Analysis of Cargills Ceylon PLC Marketing MIX Against
its Main Competitor John Keels Holdings

John Keels Holdings

JKH PLC is one of the largest listed company on the Colombo stock exchange. It was started in
the early 1870s as a produce & Exchange broking business by Edwin & George John. JKH
integrity is committed to maintaining ethical manipulations. Sustainable development and
greater social responsibility in a multi-stakeholder environment. JKH is a completed member of
the world economic forum and UN.
Vision :- To be internationally recognized as the best produce broker in the world.

Mission :- To be retain the pre-eminent position as sri lanka’s leading tea & rubber broker to
upload the traditions & ethics of the tea & rubber trades to ensure superior
customer service through a dedicated & motivated workforce.

Organizations 7ps technique is guides customers to choose your P&S rather than choosing your
competitor products. If a company or business does not account for this feature, it will block
their profit margin. Searching for the main marketing channel and conveying accurate news that
affects the target customers (scott, 2018)

Place

People Promotion

Product

Process Price

Physical
Evidence

Figure 3 : 7Ps of Marketing (Assemblo, 2021)

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 7Ps Cargills Ceylon PLC John Keels Holdings

The most branded shopping store is JKH is the Colombo stock exchange’s
Cargills food city, the largest food city largest listed company in sri lanka
chain in sri lanka, which is the most with business in a wide range of
acceptable place for consumer industries including transportation,
Place choices. Situating convenient places leisure, consumer food & retail, real
to consumers to fulfill their estate, financial services, IT &
satisfactions. (Ex :- TGI Fridays, plantation services.
Cargills Food Hall, Cargills Food
City)

Cargills competitiveness of their JKH strong market presence in

strategy is mainly focused on key beverages, frozen candy and
products, systematic production and processed meats under the elephant
increased product results, where house and keels krest brands.
Product
understanding the customer behavior Pioneers of instant rice EZY Rice a
of each level. Ex :- Cargills magic, single serving product that is
Cargills Kist, Cargills pharmaceutical affordable, easy & ready to eat.

Includes Cargills best production cost Access to attractive different types &
and strategic pricing techniques to brands prices.
control the target market being a low
cost retailer, it maintains an affective Ex :- Keells Soy Milk Powder 200g
Price pricing strategy by providing flexibility 690/= (Keells, 2020)
and quality products to its customers
compared to keels, arpico & sathosa.
Ex :- Anchor 200g - 190/= (cargills ,
2020 )

Cargills main selling process include Standardization

in direct marketing where processing complaint monitoring system
process through own wholesaling & retailing customization
using the Pull Strategy by promoting
direct consumers

website for online shopping & Vouchers with conditions

Physical delivery, distributing loyalty cards Vegetable, fish & meat counters
Evidence display online shopping

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 advertising is one of the sales promotion – cards for
primary features of Cargills to birthday along with a fruit
use mass media to focus on basket
product advertising & Pint medias- newspaper,
Promotion comparative advertising such magazines, social medias
as price cutting,& sales
discount
Media – Radio, TV, Social
medias

Cargills diverse plans and Attracting, developing,

initiatives on employment motivating and retaining well
practices, compensation and trained employees, paying
People benefits, skill management, reasonable wages
diversity & inclusion are
critical to fulfilling this
commitment.

Table 4: comparison & contrast between Cargills & JKH (cargills , 2020) (JKH, 2020)

7. Situation Analysis of Cargills Ceylon PLC

Porter’s Five Force

It was founded in 1979 by Michael. E Porter of Harvard Business School. It attracts the
industrial organization economy to gain the five forces that determine the intensity of
competition and the attractiveness of the market.

Bargainning Bargainig
Threat of new Thraet of
power of power of
entrants Subststiutes
buyers suppliers

Intensity of
competitive
Rivarly

Figure 4 : Porter's five Force (CGMA, 2021)

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PESTLE Analysis

Government regulation on goods

transportations. Spending high transport cost
Political
for this pandemic situation to deliver
vegetables & fruits

High import export tax expenses

Economical low Economical condition because of
pandemic

consumers interest for the organic fresh fruits

Social social media advertising campaign for
products

Developed technological Equipment’s

Ex :- Model Dairy Farm
Home delivery Business
Technological
Online Marketing

Environment friendly - Water management

Reduction in the use of Plastic
Environmental
Reusable Initiatives
Energy Conservation

Food Safety Acts

Quality Certifications
Consumer Low
Legal Ex :- ISO certifications
SLS certifications
CODEX

Table 5 : PESTLE Analysis of Cargills (cargills , 2020)

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SWOT Analysis

Streangth Weakness

Efficient supply chain management lack of labor in maintenanace & store

system during operation
less employess attendance because
Sustainable business practises of covid pendamic

SWOT
Strong brand Relation Low profit & sales
Strong Logistics
Opportunities
Threats
Growth modern technology in trade COVID 19 Pandemic
Developing the community yo strengthen Increasing TAX expenses
our nation Government policies & price standards
Leveraging tecnology, digitalization & Growth of other competitive food city
helthy diets Global economic down

Figure 5 : SWOT analysis of Cargills (cargills , 2020)

Conclusion

The statement comes after conducted a marketing research project as a junior marketing
consultant successfully covers roles & responsibilities of marketing manager and marketing
function & interrelationship between marketing & other departments. As a discussed clarified
how the interrelationship important is having a good marketing strategy after discussed about
comparison of marketing mix & situation analysis of PESTLE & SWOT. It make some analysis
of current market situations & how it might affect products

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References

 Harvard Referencing System

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