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Service Marketing Assignment

The document discusses the service bundle offered by Keells Supermarkets. It outlines the key elements of their service package including supporting facilities, facilitating goods, information provided, explicit services, and implicit services. Keells provides parking, trolleys, cards to track purchasing, and food/drink options. They communicate information through bills, tags, signs, apps, websites, and a call center.
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0% found this document useful (0 votes)
498 views20 pages

Service Marketing Assignment

The document discusses the service bundle offered by Keells Supermarkets. It outlines the key elements of their service package including supporting facilities, facilitating goods, information provided, explicit services, and implicit services. Keells provides parking, trolleys, cards to track purchasing, and food/drink options. They communicate information through bills, tags, signs, apps, websites, and a call center.
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Keels Super

Advance Service
Marketing
Individual Assignment

W.M.A.B.Wanninayaka
CPM 18350
MC 90494
Department of Marketing Management
Table of Contents
Executive summary..............................................................................................................1
Overview of the Business.....................................................................................................2
Service bundle......................................................................................................................4
Extended Marketing Mix.....................................................................................................6
Product.............................................................................................................................6
Price..................................................................................................................................6
Place.................................................................................................................................7
Promotion.........................................................................................................................7
People...............................................................................................................................8
Physical evidence.............................................................................................................8
Process..............................................................................................................................8
Service co-production/Value co-creation...........................................................................10
Use of technology in services.............................................................................................11
Service quality....................................................................................................................12
Tangible..........................................................................................................................12
Reliability.......................................................................................................................12
Responsiveness..............................................................................................................12
Assurance.......................................................................................................................13
Empathy.........................................................................................................................13
Supply Management strategies..........................................................................................14
Product / process Layout....................................................................................................15
Recommendation for improvement....................................................................................16
Conclusion..........................................................................................................................17
References..........................................................................................................................18
Executive summary

Through this assessment, I hope to gain an understanding of how business marketing


concepts are used by businesses in the practical world. For that I choose Keels
supermarket that owned by John keells holdings. . This identifies key areas of Service
Marketing concepts and how practically they use the extended marketing mix, service
package, and value co creation, use of technology, service quality, supply management
strategies and product layout. It is worthwhile analysing the strategies behind the
successful retail marketing story of Keells super.

1
Overview of the Business

In present, Marketing can be seen as the main activity in the organisation Because of the
high competition and powerfulness of the customers. So each and every organisation
should use marketing strategies to going successful of the organisation. There is a huge
demand and significant growth of services in the Sri Lankan economy today. So, service
marketing concepts are very important for service sector in Sri Lankan economy. Today
Keells Super Company has strong service marketing concepts to capture its customers by
using a strategic marketing mix within the large accomplishment in the food and beverage
industry.

Keells Super, as a one of Sri Lanka's most successful brand chain. Opened its first store in
December 1991.This chain of stores is owned by the John Keells Group. Keells was
started with the promise of delivering the latest products to customers. It currently
operates around 106 supermarkets across the country.

Keells is the first supermarket in Sri Lanka to launch an


online retail concept. This gives Keells customers the
opportunity to shop online and collect groceries from the
store or bring them to their home. Nexus, a program
provided by Keells, also deals with everyday essentials
for customers. Keells owns more than 300 products, including retail, household and
beverage. In addition, organic and free product ranges are included.

Keells supports local farmers and growers and obtains these fresh produces from eight
collection centres throughout Sri Lanka. Dry goods are delivered to warehouses through a
central distribution centre. Keells owns a retail academy that trains more than 5,000 team
members on retail practices and processes.

Keells, a leader in the local retail industry, is working to remove single-use plastics. As a
solution to this, single use packages are being used. Efforts are being made to reduce the
use of plastics through various incentives.

The awards Keells has received are the best examples of their success.

Awards,

2
• Most Valuable Supermarket Brand in 2019 by Brand Finance

• Service Brand for the year at SLIM awards 2019 - Bronze

• Innovative Brand of the year at SLIM awards 2019 - Bronze

• National Business Excellence Awards 2019 - Silver in Trading Category

• Keells Own Label Packaging Wins a Highly Commended at Transform Awards


2019

• Keells Own Label Packaging Melbourne Design Awards 2019 – Silver

• Best Integrated Digital Marketing Campaign at SLT Zero1 Awards 2019 – Silver

3
Service bundle
The service package is defined as a bundle of goods and services with information that is
provided in some environment. This bundle consists of five stages. Those are supporting
facilities, facilitating goods, information, explicit services, and implicit services. Let’s
find out what are the key elements related with Keells supermarket.

 Supporting Facilities

The physical resources must be in place before a service can be offered. It includes
location, interior decoration, supporting equipment, architectural appropriateness, and
facility layout. Keells supermarket also has supporting facilities to attract customers and
distinguish their supermarket from other existing competitors. They using Green
supermarket concept to attract customers and they emphasise that they are environmental
friendly. Also they located new outlets within one kilometre from main bus halt. Other
than the main service of providing food items they facilitate Parking facilities, customer
luggage handling facilities on their service premises.

 Facilitating Goods

In keels super markets essential food items are the main product that they offer for the
customers, but in addition to food items they providing following things to facilitate their
customers.

 trollies for customers to use when handling their items


 Nexus Cards to clients in order to gain insight into their purchasing habits
 Bakery items, pharmacy facilities, fresh vegetables and fruits store, liquor bar,
juice bar etc. can be seen in super market premises for the convenience of the
customers.

These elements are critical for a smooth service process such as super markets.

 Information

The data that is available give information for customers to get customized and efficient
service. information are very important for both customers and service providers to get
and provide efficient and customized service Keells also use different methods to give
4
information to their customers. They provide clear and correct bill to each and every
customer when they do purchase. And also they using price tags for all the products in the
supermarket. They using large bill boards in outside of the supermarket. Also they have
very own mobile app, website and Facebook page to give information for the customers.
Also they have large database which includes previous customer purchasing behaviour.
They also maintain a customer call centre and WhatsApp message connections all day 24
hours.

 Explicit services

The benefits that are readily observable by the senses and that consist of the essential or
intrinsic features of the service. This point usually refers to the traits that can be
determined by examining the service firm's external variables. When it comes to the
keels, they have their own drees cord for their workers. Employees also assist clients
when they have questions. The shop's layout is excellent, and the product arrangement is
well-organized. Customer visibility is improved by the quality and freshness of the goods.

 Implicit services

It explains the psychological benefits that the customer may sense or the extrinsic features
of the service.

 Keells provide a larger parking area for the customers for their convenience.
 The employees of the keels help customers highly and they‘re very polite.
 They provide sufficient cashiers and payments places to reduce the payment
queue

Extended Marketing Mix


Product

5
Keells supermarkets follow different types of strategies to deliver their service by using
product strategies. It is a good point to say that they follow a well-defined information
flow to deliver their service. The main objective of that strategy is to get the customer
interested in buying the service. Keells offered a comparative product strategy to its
consumer and business markets. Keells have convenience and shopping products rather
than unsought and specialty brands by aiming for high-end consumer needs. They mainly
focusing core products, formal products and augmented products to understand the
customer behaviour of each level.

The product line (Keells Crest - Chicken Sausages, Chicken Skinless, Chicken Garlic,
Chicken Sausages Cheese, Chicken Spicy Bite, Cheesy Blast, etc. .) and the product mix
(Width & Depth) is mainly included in productions such as Fresh vegetables and fruits,
seafood’s , Keells rest, Elephant house sausages, Ezy rice, Pharmaceutical, etc. which are
mostly influencing the consumers to purchase intention. The marketing department is
attentive that each product life cycle can change the customer values and is vital as a
planning tool and it consists of different customers. Keells offer discounts and food
packages to customers. Cargill’s offer different weekend discount offers for customers. In
covid 19 pandemic period, they give free delivery for online orders. And also, they offer
big discounts for cardholders. Such as Sampath cards, BOC cards, commercial bank max
loyalty rewards, HNB bank cards.

Price

Keells supermarket is well-known throughout the country as the cheapest price


supermarket compared to other supermarkets. Keells uses strategic pricing tactics to keep
a lid on the higher manufacturing costs and shifts in rival behaviour. Because keells is a
low-cost vendor, it attracts more attention from consumers than other brands. As the next
best advantage, to ensure the sustainability of the company, Keells engage in market
skimming pricing technique which can help to accomplish the pricing objectives of
increasing organization profit and market share. Also they are not getting delivery charges
when customers ordered online because of their cost cutting techniques.

Place

6
Keells supermarkets has the largest retail distribution networks in Sri Lanka. They have
more than 120 retail outlets, warehouses, and factories. As present keels has covered 17
out of 25 district in Sri Lanka. As in their website they are planning to expand retail chain
from another 100 Food cities and 4 big city outlets in this year. Keells supermarket has
been classified into three levels based on Customer groups, sales volume, and average
Basket value. Supermarket, Hypermarket, Superstore are those levels of different
markets.

Also they provide huge parking facilities on each and every supermarket premises. And
keels offer free delivery for online purchasing orders to the doorstop. It was developed
quickly after the covid 19 pandemic.

Promotion

Promotion mix of the keels super consist of the blend of advertising, public reactions,
personal selling, sales promotion and direct marketing tools.

· Keells use advertising to enter the mass media by aiming seasonal price-cutting,
sales discounting items (vegetable prices, End-consumer products) by using radio,
television and mainly newspapers become a strategic location to accomplish the product’s
target market.

· They highly conduct short-term sales promotion campaigns. The most common
promotional tools used by Keells are weekly Best buy Promotions, Points and benefits for
Nexus Loyalty card, contests, coupons, seasonal promotions, bill promotions, rewards
such as Super Saver, Best Deals, Nexus-discounts on essential items, etc.

· Keells send its food prices catalogs and other offers to its customers directly via
email and SMS.

· In the present situation, Keells highly do their sales using online platforms. Such as
Facebook page campaigns, Keells mobile app, Keells web site.

· Employees in the retail outlet premises wear a uniform and jacket which is specific
to the Keells supermarket.

7
People

People factor is very important when consumers engage with the transactions. Because
their speaking style and behaviour style also affect consumer satisfaction. Currently keels
super has a retail academy constantly training staff especially managers and supervisors
on interpersonal skills, attitude and service knowledge to provide the service.

Also keels super uses young and efficient customer focused employees. Keells recruit
employees within 10 KM area of the outlet. For the cooperate customers outlet managers
are the account managers servicing this group of customer with weekly visits to their
officers.

Physical evidence

The physical evidence aspect refers to the customer's physical environment during service
delivery. For the convenience of its consumers, Keels Super built their stores within a
kilometre of the main bus stop. When it comes to the retail store exterior design, they use
a green idea. It emphasizes that they manufacture environmentally friendly and health-
promoting goods. When shopping in a supermarket, people usually go around in a counter
clockwise orientation. As a result, the supermarket's fresh food, fruits, and vegetables are
on the right side. There are five departments which circulate the entire process in keels
outlets such as grocery, butchery, pharmacy, wines, and perishable. Keells has created a
good and calm environment in outlets.

Process

Process element shows the set of activities the customer goes through to obtain the
desired product or service. Currently keels super has made a significant investment in
taking control of stock management process to ensure there is minimal stock out as the
high rollers would come to keels with their full list and wouldn’t tolerate disappointment.
Also keels super having an ‘on time, in full’ delivery & hassle free credit mechanism. In

8
Keells supermarkets, customers have the independence to buy any number of items, any
quantity at any outlet.

· Keells supermarket operates 364 days per year and it has long working hours. And
also, it allows customers to buy any small number of items. If the stocks are not available
at the outlets a special order can be placed at any time. If the customer wants to buy a
small amount (100g) of rice, it is also feasible in keels. Keells has introduced a new bike
delivery service – Keells Online 1 Hour Delivery! Therefore, customers can experience a
faster and more convenient way to have all groceries delivered right to your doorstep.
Employees of the keells supermarket wear the same uniforms within the store and also,
they sell bags with the keells logo.

Service co-production/Value co-creation

Value creation means providing useful products and services that customers consider
worthy of their time, energy, and money. Customers can gain value when the benefits of a

9
product or service is exceeding the cost borne by the customer. This concept is widely
used as a business strategy in service marketing. Because consumers can get highly
satisfying service by participating in the service co-creation part of service marketing. As
a result, businesses should encourage customers to participate in the demand. With more
product variety, value co-creation can make the design process more user-friendly.

In Keells supermarket, they use value co-creation in e-commerce and most luxury
supermarkets (Keells super market in union place) by setting it easier to engage
customers in a more interactive and unique way. Therefore, we can consider Keells as a
low contact service. In keells, they offer all the possibilities which can make value co-
creation for the customer. Customers can at any time make an order in a convenient place
and make payment convenient way for them. And also, they offer different types of
product varieties, packaging options, sizes, payment methods selections, and all the
possible kinds of stuff to create customer convenience and familiarity with their products
and services.

Keells launched e-commerce enabled Internet shopping in 2002 for the first time. In the
covid pandemic lockdown period, they highly use e-commerce in a more interactive way.
They introduced the first supermarket mobile app in Sri Lanka. With this new mobile app,
customers can order goods via Keells super website, get the promotions of Nexus and
Super Saver promotions as well as internet Weekend promotions, tracking orders to
ensure that order has come to the home by getting directions to the nearest Keells Super
outlet via Google Maps, contact Keells super via WhatsApp social media or get the Keells
super week catalog through SMS alerts or contact any Keells Super outlet with the touch
of a button as well as send in any comments or suggestions they may have. Therefore,
customers can contact Keells super at any time the need arises and make convenient
orders online at any time. With that, they are able to enhance the total value of customers.
In the present context, keells design their retail outlet as a self-checkout supermarket to
give a new experience for the Sri Lankan customers. With that improvement, keells can
be able to get more engagement from customers to add further value to their shopping
experience. And also Keells was the supermarket which the first time Sri Lanka has been
introduced to such a unique shopping experience. With that, customers can save their
time, calculate the total amount of their purchase, if the customer couldn’t bear that
amount he /she will be able to remove some products from their shopping cart.

10
Use of technology in services

Modern technology has had a significant impact on service methods, resulting in a large
possibility for new service offerings. So, using technology breakthroughs, Keells
supermarket shapes its services, allowing both consumers and workers to receive and
deliver personalised services. For the first time in Sri Lanka, Keells Supermarket has
launched the first mobile app for a supermarket, which is compatible with both iOS and
Android devices. Customers can order products via their website, monitor ongoing nexus
and super saver discounts, receive directions to the nearest Keells super store, and offer
comments and suggestions using the app. With the COVID-19 epidemic, smart phone
usage and internet culture have grown at a faster rate than ever before. People are getting
online through cell phones, and organizations may provide a PC-like experience. Keells
has redesigned their websites for smaller mobile screens, allowing people to shop for
groceries using their phones while still getting the full experience by simply visiting their
website. Keells super is using mobile phone SMS system and they have been sharing
information about several promotions that are executing in the specific time based on
customer‘s nexus mobile numbers. Through that, customer can be aware about how the
prices is and what are the discounts is available with promotional products in keells. And
Keells customers can purchase products by visiting the keells super face book page after
checking the availability at the outlet. Online payments can be done, and they can collect
their commodities through the keells super customer service assistant. Also, customer can
search the products that Promotions executed in specific time. During COVID-19
pandemic Keells e- commerce platform which dealt with maximum of 2000 orders
monthly, became a primary source of providing groceries to Sri Lankan households under
lockdown. Technological development such as improvements to the payment gateway the
ability to view the delivery grid and a product catalog to a state-of-the-art queuing system
were brought in to improve the user experience.

Service quality

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Service quality is a consumer’s judgment about an entity’s overall excellence or
superiorly. It is a form of attitude-related satisfaction. Mainly, it has five dimensions those
are tangibles, reliability, responsiveness, assurance, and empathy.

Tangible

In service quality, tangibles are intrinsic service dimension. Servicescape also created
with these tangible things surrounded by the service place. When it comes to the Keells,
they use modern and new looking tangible items to enhance the service quality of the
company. Kiosks, barcode readers, barcode scanners are some newly added tangibles to
their outlets. Those items help to give fast and convenient service to the customers. And
keells operates with the green concept in their retail outlets. Whatever they do, they
include green theme to all activities.

They use green packaging for some of their products, employees wear green t-shirts, and
they provide green bags to reduce the use of polythene. It is Keells supermarket's visual
appeal.

Reliability

It revealed customers can rely on the service promised which is given by the organization.
It is the assessment of consistency and dependability. Keells always try to bring good
things for the customer. The concept of “fresh fruits and vegetables” they always protect.
It is the quality of the keells goods. They always said,” Keells We are always committed
to giving you the best price. This weekend, get the best home accessories at your nearest
Keells branch.” As they said, keells always try to mark low prices for the products to
fulfil their promise.

Keells online retail store promises that they deliver the goods within two hours from the
order placement.

Responsiveness

Each customer prefers to be satisfied whatever the business is. Therefore, employees
should assist customers as soon as possible they can. This is related to the organization's

12
willingness and ability to facilitate customers and provide good service within reasonable
time frames. That is, employees' willingness to provide the required service at any time
without inconvenience will influence customer satisfaction. Keells create employer
branding in the retail store. They always like to provide prompt services for the
customers.

Keells celebrates Keells customer service week by giving products to the front-line staff
of Keells for their tremendous support. Customers will be encouraged to be self-
motivated because of this.

Assurance

It indicates employees’ competence, knowledge and courtesy, and the ability to build
bridges of trust with customers. It means the knowledge and good manners or courtesy of
employees. This quality also affects customer satisfaction. In Keells supermarkets,
employees are always ready to give answers for customer issues and requirements. If
customers want to get information, they can drop a message through the website or make
a call for keells to clarify any information.

Empathy

It means in communicative situations, understanding customer needs, showing friendly


behaviour, and taking care of a customer's needs individually.

In keells, they provide their online service 24 hours a working day. It can enhance
customer satisfaction .when a customer checks in for the keels retail store, employees
give individual attention for him /her. Employees are able to identify customers' personal
needs and wants. Sometimes, employees’ carrier the goods cart for the customer’s
vehicle.

13
Supply Management strategies

Supply chain management is the streamlining of a business’ supply-side activities to


maximize customer value and to gain a competitive advantage in the marketplace. Supply
chain management involves managing the flow of materials and information from
suppliers and buyers of raw materials all the way to the final customer.

There are 3 types of supply chain management flows.

1. The product flow – in keels super it corresponding to the flow of goods to


customer from supplier.
2. The information flow – in keels super it corresponding to the flow of transmitting
orders and updating the delivery status.
3. The finance flow – in keels super it corresponds to payment schedules, credit
terms, consignment and title ownership arrangement.

Keels super try to know the product closet to the customers and speed conversion across
the supply chain. And they manage the raw material wisely to reduce the total cost of
owing materials and services. Also they develop supply chain that supports multiple level
decision making. Keels super scale the success of the product reaching the customer
effectively and efficiently.

Keels supermarket has been able to assume market leadership position primarily due to its
efficient integration of suppliers and distribution to stores. As above technology plays a
key role in keels super supply chain. Keels super supply chain begins with strategic
sourcing to find products to the best price from suppliers who are in a position to ensure
they can meet demand.

Their supply chain management strategy has provided the company with several
sustainable competitive advantages, including lower products costs, reduced inventory
carrying costs, improved in-store variety and selection and highly competitive for the
consumer. To get new supplier they give the priority to customers’ expectations and the
approval will be given by the head office Colombo.

14
Product / process Layout

The layout plant, size and shape of building, location and shape of storage yard, position
of material is flowed in one direction at a steady rate. Keels super layout plan was mainly
targets the customer’s shopping time, front shelves – morning needs such as breakfast
preparing solutions. Back shelves – daytime needs and general needs.

Keells super kurunegala branch consists with 8 large two side shelves and long wall
shelve in side. Every main shelves has six racks. These of shelves based on three
dimensions.

1. Product type – Relative products are in one shelves according to brand


identification.
2. Price – left to right price increasing order.
3. Safety – most weighted products in bottom rows.

In keels supermarket front of the layout are for products with special offers. These front
shelves easily attract customers at their paying time. Their layout design has proper air
condition system, proper light system and front of the supermarket made by transparent
glasses. And they needed products are store in transparent refrigerators and fruits and
vegetables are store in open shelves with special cooling system to protect freshness.

15
Recommendation for improvement

 Give more attention to save international standards of product placing instead of


store opposite products in same shelves.
 Make time saving and flexible methods to appoint new products and suppliers.
 Just in time supply method is most suitable for this type of supermarket
 Should close the service quality gaps available in the supermarkets.
 Keells super does not give attractive welcome for the customers who visit to the
store. Therefore, they should appoint employees to maintain customer satisfaction
and consider customers convenience.
 Should rearrange spaces for fast moving products
 Place shelves near by the front glass window and entrance to attract more
customers.
 Appoint employee to maintain order of product placing according to standards.

16
Conclusion
The report illustrates within every single step of Keells supermarket philosophy provide
successful understanding of its advanced service marketing strategies. The comparative
marketing environment in Keells has accomplished its marketing mix including the
product, price, place promotion, people, process and physical evidence through
generating sustain competitive advantage to its competitors and to provide and facilities
profitable exchange relationship with customers, channel partners and society .As a main
key point every marketing department of an organization has a responsibility to be critical
in evolution of the marketing strategies which can develop its future marketing strategies.
The following methods and techniques have used in this report to analysis and understand
the marketing concepts and strategies used in the Keells super retail marketing activities
to offer better service for customers.

• Extended marketing mix,

• Value co creation,

• Service package,

• Use of technology in keells super,

• Service quality

• Supply management strategies and

• Product layout

Finally, I can conclude that they use different service strategies to provide a better service
for their customers.

17
References

https://www.keellssuper.com/home

https://www.facebook.com/Keells.SL/

https://en.wikipedia.org/wiki/Keells

https://www.keells.com/retail

http://www.nexusmobile.lk/

https://www.keells.com/annual-reports

https://www.keells.com/loyalty

https://www.google.lk/imghp?hl=en&tab=ri&authuser=0&ogbl

https://www.slideshare.net/DayenkieChandraseker/cim-assignment-customer-experience-
on-keells-super-38456903

https://www.slideshare.net/TharushikaRuwangi/om-presentation-37002690

18

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