STRATEGIC MARKETING PLAN

COMPANY OVERVIEW

Richard Pieris Distributors Ltd. manages the well-known Arpico chain of Supercentres,
Superstores and showrooms across the country. The set of associates retails a broad collection
of fast selling consumer goods, household goods, garments, furniture equipment &
electronics, pharmacies, bakeries and provides a mass of value added services such as bank
savings points, ATM's, credit card and mobile bill payment services etc.

Also Arpico also in to productions of fast moving goods such as dairy products, tea, biscuits,
instant food, meat, spices, soya products and etc. They are focusing on their own productions
since they can offer the products for lower price than others.

STRATEGIC INTENT (VISION/ MISSION AND VALUE)

COMPANY VISION

Richard pieris group vision is to be a market driven, technologically oriented diverse group.

Richard pieris group is organize and operate continually focus on exceeding customer
expectations, while excelling in revenue generation and attract, develop and retain talented
employees to ensure the continued expansion, growth and viability of all connected business
ventures.

COMPANY MISSION

- To continually exceed the expectations of our customers.

- To optimize the contribution from our employees by providing career and personal
development opportunities, thereby creating an atmosphere that would motivate and
internalise employee aspirations with corporate objectives.

- To provide a satisfactory return to shareholders whilst retaining sufficient funds for

reinvestment, thereby enhancing corporate wealth. To ensure continuous growth by
the planned expansion and diversification of business activities.

- To continually strive for the upliftment of our community whilst adhering to high
ethical standards in business.

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COMPANY VALUES
Values Distinctive Competencies Competitive Market Definition
Positioning

Innovation Over 50000 products High importance set Arpico is doing

available from different for consumer their business in
Integrity suppliers to offer. experience and after fast moving
Customer centric sales service. consumer goods
Unbeatable services and market.
Be passionate customer orientation. Eco friendly
production Target market is
Efficiency Value added services processes and all end users from
provided. contribution towards minor to elderly
Commitment
sustainability. people.

(Figure 01- Company values)

SMART OBJECTIVES

(Figure 02- Smart objectives)

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MARKETING OBJECTIVES

01. Enhance outlet channel up to 200 by end of the 2023.

02. To reach 200 online orders per day by end of 2021. (Will generate additional
revenue)

03. Improve the own production and provide goods for a reasonable price, grab and
extend the market share up to 40% by end of 2022.

04. Enhance the customer experience with innovations and be the most innovative super
market chain by end of 2022.

By expanding the outlets across the country supercentre customer base will be increased. By
that market share objective can be easily achievable. Also with the production of own goods
will also help to grab the market share. As per the new trend online platform is the easiest
way of purchasing goods for customers. The can save their time and can expect a quick
service. By improving that can reach the daily order target arpico can generate additional
revenue and those are helpful for bottom line of the company. Also with the innovations and
enhance customer experience will create customer loyalty.

MARKET SEGMENTATION
Customer segmentation is that the carry out of dividing a client base into groups of people that
are similar in specific ways in which relevant to marketing, like age, gender, interests and
disbursement habits.

Profile Upper class Middle class Lower class

Demographic Age 18 – 25/ 25 – 45/ 45 – 18 – 25/ 25 – 45/ 45 – 60 18 – 25/ 25 – 45/ 45 –

60 age segments age segments 60 age segments

Occupation Students and Students, Junior Students, Government

Managerial positions executive, executive and workers and below
Assistant managers executive grade
Gender Male / Female Male / Female Male / Female

Geographic Area Major cities Major cities Rural areas

Psychographic Life cycle Dependants Work force Dependants & work

force

Social class Low, medium, high Low, medium, high Low, medium, high

Behavioral Usage rate Daily needs Daily needs Daily needs

Loyalty Moderate/Low High Moderate

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 (Figure 03- Market segmentation)

TARGETTING
Targeting involves with the evaluation of segmentation areas and decides what should follow
to achieve marketing objectives.

Rating Aspects Segment

Upper Middle Lower

Opportunity 8 9 8

Response and reach 7 8 6

Environment 8 7 6

Development of potential 8 6 6

Internal consideration 8 7 5

Total 39 37 31

(Figure 04- Targeting)

According to the above arpico can effectively accomplish its marketing objectives via a differentiate
target approach to youngsters and adults. Those segments should be developed mainly via the
Market Development and Market Penetration strategies, Also elderly segment has potential to grow.
On the other hand, innovative product expansion will be able to recognize probable products for all
segments.

POSITIONING

Once Arpico has chosen its target markets it has to make a decision the position as of which it
will compete.

When positioning products of arpico it is important to make sure that positioning will exceed
the customer expectations while generating the required revenue to the business. Furthermore
to be the market driven supermarket while using the required technology and drive the
company values with the positioning.

- Points of parity – Recognized brand name.

- Points of difference – Diversified product range / Customer service

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 - Sustainability activities

High
availability

High
Low price price

Low
availability

MARKETING STRATEGY - ANSOFFS MATRIX

(Figure 05- Ansoffs matrix))

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According to the ansoff marketing strategy market penetration is the strategy should used by
the arpico. This will involves escalating sales of presented products and penetrating the
market further by promoting the product. This can be done through reducing prices, increase
the quality to increase sales. This is the low risk strategy since business has to promote their
existing products to the existing market.

Arpico should promote their existing products through the existing market conditions to
achieve the marketing objectives. It can be done through promotions such as discounts on
products, one to one offers and bundled promotions etc. Also it can be done through
expanding the product quality can attract more business towards the Arpico. Beyond that to
touch the untouched market Arpico can use the diversification as a tool to attract more
customers and increase the range of products available for the consumers.

GENERIC STRATEGIES

Competitive Advantage

Low cost Differentiator

Market Broad Cost leadership Differentiation

Space
Narrow Cost focus Differentiation focus

(Figure 06- Generic startegies)

Arpico should implement Porter’s Differentiation strategy as it is supposed to offer to the
broader marketplace by providing exclusive and high value products. Each product should
have its own characteristic product qualities, objective cluster, stage and values which are
crafted exclusively and for that reason, in association with the product nature.

BRANDING STRATEGY

Line Extension – Promoting brand name Brand Extension – Arpico Insurance

using own production. connected with supermarkets for promotions.

Co – Branding – Connected with other New Brands - FMCG goods produced under
partners to full fill the sustainability needs. Arpico brand name.

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Salience Branded them as Let’s go Arpico Supercentre and created brand awareness
among consumers.

Imagery White and orange letters in blue background & TV commercials.

Performance Popular brand name among the consumers and renowned for water tanks
and fittings.

Feelings Home kind of service, Customer centric service, Innovation.

Judgment Good customer service, Efficiency, Reasonable Prices, Latest technology.

Resonance Loyal clients, High number of revisits. Part of elite society.

(Figure 07- Branding strategy)

Arpico should use the brand name and company goodwill for attract more businesses to
overcome the marketing objectives as well as providing the necessary infrastructure to
develop the business in future. Through the loyalty programs and point schemes can retain
and attract new clients towards the business.

TACTICS - 7 PS
Product Separate the goods ahead the clients necessity it will be a payback to pressure client acquire
decisions. Improving the present excellence principles and manufactured goods features
based on the requirements of the object marketplace. Rebranding and reposition will assist
to focus on differentiated positioning in Arpico.
Price A grouping of focus to be paid on improve client perception & produce clear discrimination
on from alternative competitors, to extend sales and market share through competitive
market. And Arpico is targeting all types income level customers with the differentiation of
the products.
Place Develop online sales through the esupercentre.lk and formation of an approachable website
with artistic features and convert main supercenters in to departmental stores with ample
parking space and value added services for customer convenience.
Promotion Continue sales promotions using the social media platforms and provide many more
discounts, promotions, benefits for the loyal customers and attract new clients via social
media networks.
Physical Branding the outlets with corporate colors while providing staff uniforms to show the
evidence commitment and attachment towards the Arpico. Also it is important to publish the
marketing messages actively via reachable channel.
Process Evaluations to be done quarterly and monitor the key performance indicators while adhere
to success factors of supercenters individually.
People Providing training and career development opportunities to be the most customer centric
employee attached to supercenters.
Rewarding the excellence and recognize the best performances.

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 Workshop related trainings for customer service agents for obtain better results. .
(Figure 08- 7P’s)

ORGANISATIONAL STRUCTURE

Organizational structure of Arpico supercenter shows the sample of the connection among the
employees and department. Arpico has a flat organization structure to smooth the progress of
related operational areas towards to achieve the business objectives. These operational areas
can identify as sales and marketing, finance, human resources, information technology and
administration. These sub operational tasks were set up as per the vision and mission
statements of Arpico and there are separate in charge persons under the units as divided
above.

Arpico is monitoring their supercentre operations under those main sections and since those
are the most critical components of any business. The smooth function of those areas will
lead to good business performance.

The task of finance department is one of major sustaining and accountable function of the
Arpico. Preparing capital budgets is one of the main responsible functions of the financial
department such as providing funds for the business development, decrease operating cost
and evaluating presented investments and estimated potential benefits will assist to build up a
well managed capital budgeting functions. Finance department is also help to build up the
strategic plan for the association with the economical situations and forecasting budgeting
plans of Arpico.

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Human resource department is to guide the worker according to the workflow and creating
friendly functioning environment in Aprico. The welcoming working surroundings will help
to make happy and inspire the employees in order to attain the company objectives.

Sales and marketing department is more engaged in business promotions to gain revenue for
the organization. Marketing department is emergent in general marketing strategic
completion with the mission and vision of the organization. The marketing department also
focuses on boost the sales, enhance brand equity of Arpico. Also product development and
process upgrading and market explore and analyzing on the industry.

Administration department is more in to manage the business processes and make corrective
actions as accordingly. All the functions related to administration are managed by the admin
department such as ordering goods, delivering them,

ACTIONS AND CONTROL

BALANCE SCORE CARD

Target
Factor Objective Management metric
2021 2022 2023

Revenue growth Net profit Margin +10% +14% +20%

Financial Enhance the brand awareness Brand equity +15Bn +18Bn +20Bn

Gain 40% of the share in the market Volume of the shares +10% +14% +18%

Customer satisfaction
+20% +28% +40%
Enhanced customer service rate
Customers
Expanding outlets Outlet penetration +50 +75 +100

Attract new customers Market penetration rate +15% +20% +25%

Exceptional customer experience No of complaint -15% -25% -40%

Internal
Success rate of moving
Business +12% +16% +22%
Produce own products new products
Growth
Minimize products defects No of complaint -25% -35% -45%

Learning Motivated employees Employee turnover As per Industry standards

and
Training and development Training hours Minimum 60 training hours

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 Employee participation
+10% +15% +20%
Employee engagement rate
Growth
(Figure 09- Balance score card)

BUDGETS

Activity LKR Mn Remarks

2021 2022 2023

Trade discounts 260 250 240 To influence customer purchases

Consumer Sales Promotions 14 16 17 To increase Top of Mind Awareness

Trade Sales Promotions 25 25 25

Marketing Campaigns 60 70 90

Public Relations / Publicity 20 20 20 Magazine/newspaper articles

Branding Costs 75 62 50 New products, packaging, and other

mat.

Advertisement Local TV 20 15 10

Advertisement Local Radio 12 8 6

Advertisement Local Print Media 5 4 2

Online advertising, social media, & 28 35 42 Digital channel effectiveness

digital media

Research & Development 40 25 15 process streamlining

market research

(Figure 10- Budget)

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