Marketing Leadership and Planning PDF

MARKETING LEADERSHIP AND PLANNING
STUDENT NO - 12610882

DECEMBER 2012
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STUDENT NUMBER 12610882

ASSIGNMENT WORD COUNT
Task One
- 2751
Task Two
- 3954
Task Three
- 1635
Total word count 8340

TABLE OF CONTENTS
TASK ONE................................................................................................................................................................................3
REPORT BASED ON STRATEGIC AUDIT ......................................................................................................................3
REPORT....................................................................................................................................................................................4
1.0 EXECUTIVE SUMMERY .............................................................................................................................................4
2.0 INTRODUCTION ..........................................................................................................................................................5
2.1 METHODOLOGY .........................................................................................................................................................5
2.3 SUMMERY OF STRATEGIC AUDIT FINDINGS.......................................................................................................5
2.3.1 VISION OF LANKEM PAINTS LIMITED ...........................................................................................................6
2.3.2 MISSION OF LANKEM PAINTS LIMITED ........................................................................................................6
2.3.3 STRATEGIC RECOMMENDATIONS TO IMPROVE COMPETITIVE POSITIONING ...................................8
2.3.4 STRATEGIC RECOMMENDATIONS TO IMPROVE RELATIONSHIP MARKETING ORIENTATION OF
LANKEM ......................................................................................................................................................................10
2.3.5 HOW LANKEM MARKETING STRATEGIES TO BE REVISED....................................................................11
2.3.6 CONCLUSION ..................................................................................................................................................... 20
TASK TWO............................................................................................................................................................................. 21
STRATEGIC MARKETING PLAN ..................................................................................................................................21
2.4 MARKETING PLAN FOR YEAR 2013-16................................................................................................................. 22
FOR LANKEM PAINTS LIMITED.............................................................................................................................. 22
2.4.1 VISION .................................................................................................................................................................22
2.4.2 MISSION .............................................................................................................................................................. 22
2.4.3 CORPORATE GOALS.........................................................................................................................................22
2.4.4 STRATEGIC ANALYSIS ....................................................................................................................................23
2.4.5 STRATEGIC CHOICE .........................................................................................................................................28
2.4.6 IMPLEMENTATION ...........................................................................................................................................30
2.4.7 CONCLUSION ..................................................................................................................................................... 35
2.4.8 EVALUATING SUCCESS OF THE MARKETING PLAN ................................................................................ 36
TASK THREE .........................................................................................................................................................................38
BRIEFING PAPER FOR BOARD OF DIRECTORS ........................................................................................................38
2.5 BRIEFING PAPER ON LEADERSHIP CHALLENGES AND STYLE FOR IMPLEMENTING MARKETING
PLAN.................................................................................................................................................................................. 39
2.5.1 OVERVIEW ......................................................................................................................................................... 39
2.5.2 CRITICAL EVALUATION OF CURRENT LEADERSHIP PARADIGM ......................................................... 39
2.5.3 CORPORATE LEVEL LEADERSHIP CHALLENGES FOR IMPLEMENTING RECOMMENDATIONS.....41
2.5 4 KEY LEADERSHIP SKILLS NEEDED .............................................................................................................. 44
2.6 CRITICAL ASSESSMENT OF MY OWN LEADERSHIP STYLE............................................................................ 44
2.7 CONCLUSION............................................................................................................................................................. 46
REFFERNCES....................................................................................................................................................................47
APPENDIX 01- LANKEM ROBBIALAC PAINTS LIMITED......................................................................................... 48
APPENDIX 02 STRATEGIG AUDIT............................................................................................................................. 50
APPENDIXS .....................................................................................................................................................................54

TASK ONE
REPORT BASED ON STRATEGIC AUDIT
WORD COUNT 2751

REPORT
TO
MARKETING DIRECTOR
FROM
MARKETING MANAGER
SUBJECT RELATIONSHIP ORIENTED COMPETITIVE MARKETING PLAN FOR

YEAR 2013-16 FOR LANKEM PAINTS LIMITED
DATE
OCTOBER 01, 2012
1.0 EXECUTIVE SUMMERY

Purpose of this report is to obtain approval for the recommended strategic marketing plan developed
focusing on enhancing relationship orientation and competitive positioning of the Lankem Paints
Limited for year 2013 -15.
Strategic audit finding are summarized in the initial section of the report and current vision and
mission have been critically analyzed for becoming more competitive and relationship oriented.
Second section consists of revised marketing strategies to support Lankem strategic intents and based
on these recommendations strategic marketing plan is developed in next section to achieve following
objectives.
1. Increase revenue to 6 billion from 2 billion by year ending 2015 -16
2. Increase profitability to 400 million from 90 million (2011-12) by year ending 2015 -16
3. Increase market share to 30% and to be market leader by year ending 2015 -16
4. Complete product portfolio of Robbialac to 90 % from 79% and Rolac to 30 % from 19% by year
ending 2015 -16
Balanced scorecard and millstone method is recommender to evaluate the success of marketing plan.
Potential leadership challenges are outlined with recommendations to overcome and as marketing
manager my own leadership style is assessed to develop required skills and characteristics to support
in the process of implementation.

2.0 INTRODUCTION
Sri Lankem paints coating industry is becoming highly competitive and customer requirements are
exponentially changing. Nearly sixty of paint manufactures are constantly struggling to cater these
changes to sustain and achieve growth in the business.
Lankem paints Limited, a SBU of Lankem Ceylon PLC, as one of the oldest pioneering coating
company needs whole new strategic directional change to the existing business process model to
position as sustainably competitive relationship oriented corporate entity.
2.1METHODOLOGY
Strategic audit was conducted on existing Lankem vision, mission, corporate values & objectives and
key functional strategies to evaluate the cohesion and coherent among them.
Audit extended further to evaluate cohesion and coherent nature of vision, mission, corporate
objectives between Lankem Ceylon PLC, the parent company and Lankem Paints Limited.(Refer
Appendix 03)
Resources, competencies, business processes were also audited regarding their capability to achieve
intended objectives.
Brief summary of the audit finding are presented in this report.
(Refer appendix 01 & 02 for full strategic audit details)
2.3 SUMMERY OF STRATEGIC AUDIT FINDINGS

This section will initially evaluate the compatibility between visions, mission statements of Lankem
Paints Limited, the strategic business unit.
Further, this will provide recommendations for improvements in Lankem competitive positioning and
relationship market orientation.
(Vision , mission statements are derived guidelines of Appendix 04 Definitions)

2.3.1 VISION OF LANKEM PAINTS LIMITED
2.3.1.1 CURRENT VISION
To enrich serenity of life by colouring the world and be the chosen provider
Existing vision of Lankem Paint Limited clearly defines itself as colour provider in broad terms. But
colour is a one part of paint and other part is the protection to substrate. This has limited the scope of
the products of company. Current vision is only pursuing to be chosen provider for only decorative
paints but not in both decorative and protective paint coatings. Vision does not include inspirational
challenging component of it which makes vision statement a truly visionary.
Company already has the required resources and competencies (Appendix 02: Figure 11) to reach this
vision as it requires only threshold resources and competencies. It only needs to improve its goodwill
and brand reputation.
2.3.1.2 PROPOSED VISION
To be most preferred innovative world class paint coating company which adds protection to
substrate and decoration to life.
Proposed mission covers both decoration and protection purposes of the paint coating in broad terms
while informing visionary inspirational motivation.
This vision requires some unique resources and competencies (Appendix 02: Figure 11) to become
world class paint company.
2.3.2 MISSION OF LANKEM PAINTS LIMITED
2.3.2.1 CURRENT MISSION
As presented in Appendix 02 Table 01, current mission consist of many factors.

It has not clearly defined the business but to be present in EU in terms of coatings and related
products. It highlights EU as the prospective customers while dominating local markets.
Current mission supports current vision of colour the world through developing international
presence. So there is a link between how we going to achieve our vision. It also speaks about the
corporate social responsibility and strategic intention towards employees which are integral parts of a
proper mission statement.
But current mission includes short term objective in it which are not characteristics of a mission
statement such as To maximize stakeholders wealth and confidence by increasing market share by
10% by year 2015 and stakeholder should be corrected as shareholders.
It also includes non challenging operational objective as to have a state of art manufacturing facility.
Mission provide too many factors and hence less directive to proper future. It does not explain how to
enrich serenity of life or how to be the chosen provider. There is no strong link between current vision
and mission statements.
Mission
does
not
encourage
attitude
change
for
better
strategic
impact.
Current mission is unable to provide basis for objectives and strategies. It is clearly visible when
considering the links among current vision, mission, objectives and marketing strategy (Appendix 02:
Figure 11).
Mission has identified most of focal points for stakeholders like shareholders, customers, employees
and general public.
2.3.2.2 PROPOSED MISSION

Proposed mission statement for parent company ( Refer Appendix 03) can be customized accordingly
to suit as followings.
Our mission as a professionally efficient innovative paint coating provider for customer
requirements who never compromises quality for any reason is to ensure well being of customers,
employees, wider society and environment while maximizing profits throughout the journey to become
world class coating and service provider.
This mission has covered the lacking areas of existing mission and has strong link to proposed vision
and to overall corporate vision and mission intensions. This has clearly defined the purpose, direction
of the company to be world class and need for differentiation as a strategy. Currently Lankem
Robbialac is stuck among three generic strategies (Appendix 02: Figure 01 and 05)

2.3.3 STRATEGIC RECOMMENDATIONS TO IMPROVE COMPETITIVE

POSITIONING
Lankem was the market leader decade back when CIC was acquired by global coating giant Akzo
Nobel. Lankem Robbialac as a local player had no chance to compete with Akzo Nobel to defend
leader position due to world renowned brand and wide product portfolios of it.
Therefore it strategically followed what leader did and still follows what leader does.
Competition is being intensified due to cost driven market conditions with shrinking margins, new
regulations to bidding for government projects, VOC (Volatile Organic Compounds) credentials,
substitutes like claddings, glass walls and many low cost manufactures etc. ( Refer Appendix 02:
figure -08 Porters five forces)
Currently Dulux and Robbialac have positioned themselves a as premium brands (Refer Appendix 01:
Figure 02) and customers are moving for more economy type of products and due to increasing cost
of living even though government claims that it has maintained rate of inflation at a single digit.
(Refer Appendix 02: Figure 07- PESTEL).
This leads Lankem to compete aggressively with Dulux for shrinking medium and premium market
segments. Both Lankem and Dulux possess second quality brands called Rolac and Glidden but
Lankem Rolac portfolio is limited to cater and grab substantial share along from it. Therefore Lankem
has to challenge both leader and other players to survive in this situation.

These are recommended competitive strategies for Lankem to be market challenger.
2.3.3.1 FRONTAL ATTACK
This direct head on attack can deploy to both Dulux with Robbilac and others to with Rolac brand.
Since this attack is targeting competitors strengths it is least advised and most risky one. Frontal
attack is more likely to be successful for Rolac with the existing competencies and resources Lankem
possesses ( Refer appendix 02: Figure 11- resources and competencies analysis).Since Rolac brand
mainly consists of Lankems star and cash cow products competing with Rolac is advisable( Refer
Appendix 02 : Figure 10 -Portfolio Analysis).
2.3.3.2 BYPASS ATTACK
This indirect attack bypasses opponents and tries to consolidate uncontested fields. This would be
ideal to compete with Dulux avoiding unnecessary attention. If this can be implemented for others
substantial benefits can reap with the current capabilities of Lankem.
Robbialac can develop new products focusing on Eco friendliness, water based and Nano based
technologies. SLINTEC ( Sri Lanka Institute of Nano Technology) provides required information to
local players on emerging water based and Nano technologies (Refer Appendix 02: Figure 12Opportunities).Texture pains are also new to Sri Lankan market and recently Asian pants introduced
such product called Royale Play. High end customers are willing to buy these products (Refer
Appendix 02: Figure 12- Opportunities).New regulations are also encouraging to develop low VOC
paints and demand for existing solvent based paints are declining(Refer Appendix 02: Figure 12Threats).
This attack can be further strengthening by new geographical market development in North and East
provinces which are booming after civil conflict.
2.3.3.3 FLANKING ATTACK
Make moves that competitor will not find threatening enough to respond. It is designed to minimize
confrontational losses. Dulux is relatively weak in thinner and turpentine market therefore investing

for theses solvents can gain good financial leverage to later on compete with Dulux for its strong auto
refinish brand.
2.3.3.4 GUERRILLA ATTACK
This involves making small attacks in different locations while maintaining mobility to avoid any
counter attacks. Paint is a dealer based product where customer usually purchases all the hardware
items and paints from one dealer. Therefore offering good discounts, POSM material, more credit
period and attractive commission schemes to most valuable Dulux dealers to shifts towards Robbialac
brand can cause good damage.
2.3.3.5 ENCIRCLEMENT ATTACK
This multifaceted attack intended to dilute defenders ability to retaliate in strength. This attack would
be the final attack to re-secure market leadership position Lankem lost at the past by expanding
products to all segments catering Robbialac and Rolac through all possible distribution channels.
Online purchasing web site can be further added to current distribution model.
2.3.4 STRATEGIC RECOMMENDATIONS TO IMPROVE RELATIONSHIP

MARKETING ORIENTATION OF LANKEM
Relationship marketing concept helps to identify and prioritize stakeholders based on their need and
power they possess to influence the Lankem. Though the customer is most important among all
relationship of other stakeholders are need to manage carefully.
It is recommended to adhere following steps because all the stakeholders are equally
important when it comes to issues.
o
Identify key participants of each stakeholders
Research and identify requirements and expectations of them

(Appendix 02: Figure -17 Power / Interest map for stakeholder of Lankem)
Review current and proposed levels of emphasis for each stakeholder
Formulate desired marketing strategy and determine marketing plan for them if
necessary. (Refer Appendix 02: Figure 18- Relationship marketing six market model)
10

Currently Lankem more focuses on establishing and enhancing relationship with dealers,
distributors and customers .This need to be extended to internal customers, suppliers,
shareholders, governments, pressure groups, media and wider society. Lankem cant compete
and survive on its own. Because when issues occur, the relationship with stakeholders will
determine the magnitude of effect it can cause to Lankem.
Lankem is advised to educate and train employees specially to change their neutral, negative
attitudes to positive relationship oriented at cross functional levels from security guard to
CEO on importance of relationship marketing, because for customers and other stakeholders
any employee represents the Lankem.
(Relationship orientation if further discussed in below Table 02.)
2.3.5 HOW LANKEM MARKETING STRATEGIES TO BE REVISED
As mentioned (Task 1.1 Evaluating current vision and mission), there was no link between strategic
intent and direction of Lankem Ceylon PLC (Parent company) and Lankem Paints Limited
(SBU).Also there was no correlation between vision and mission of Lankem Paints Limited as well.
Since vision and mission of Lankem has redefined (Refer Task 1.1) to be more competitive and
relationship oriented and it is recommended to be a market challenger from market follower, existing
marketing strategies should revise accordingly.
Therefore it is clear that current marketing strategies are formulated based on emergent strategies
shaped by external environment rather than deliberate strategies to support corporate and
organizational objectives.
11

This chapter will assess how market strategies should be revised to meet strategic intents of newly
proposed vision and mission to become more competitive and relationship oriented. Or else corporate
intents will be looking at one direction while marketing strategies will be looking at another direction
and time and resources will be wasted putting Lankem in a chaos.
2.3.5.1 KEY SUCCESS FACTORS FOR THE PAINT COATING INDUSTRY
Changing regulations
Keep track of changing chemical
regulations and safety standards
Back up claims with scientific
evidences
Labeling requirements
Product/ R&D trends

Sustainable
Low VOC /Odor
Energy saving /efficiency
Added functionality
R&D on consumer, packaging, process, safety,
formulations
Key success
factors of
paint coating
industry
Figure 05- Key success

factors for paint coating
industry
Enter new markets
Branding / marketing
Create markets needs through
Invest in branding, advertising,
product differentiation, entering

new geographies or channels.
Invest in distribution & Brand
equity
promotion and distribution.

Exploit opportunities through
demographics, health benefits
and life styles.
12

These critical success factors need to incorporate to marketing strategies for succeed in paint coating
business.
2.3.5.2 COMPETITIVE STRATEGIES
Based on the strategic audit findings (Refer Appendix 02: Figure 01) Lankem is stuck in the middle of
three generic strategies due to merely following market conditions, leader and negligence of corporate
intents.
Figure 06- Differentiation as proposed strategy
Implications of current strategy
Quality is compromised when seeking inputs at low cost
Lack of resources to be industry wide differentiator since large proportion of resources have
allocated to position some products as premium
Confusion among stakeholders about the corporate personality, profile and identity.
Lankem pricing strategy is based on competitor pricing which leads to reduced margins.
Inconsistencies of messages delivered at marketing communication campaigns.
Unable to establish and develop stakeholder relationships due to lack of focus
13

Recommended competitive strategy- differentiation
Currently as second market leader Lankem it is too risky to neglect existing industry wide
customers and become focus on particular segments.
Current premium brand positioning helps to further differentiate Robbialac from others and
Dulux (Appendix 01: Figure 02 Price/Quality positioning).
Current product reputation for quality
Access to leading scientific knowledge (Appendix 02: Figure 11 threshold competencies &
Figure 12: Opportunities of SWOT analysis)
Value addition will help to create price insensitive customers and to regain good margins.
Focused organized resources will support to develop unique competencies and resources.
Product market strategies
2.3.5.3 PRODUCT MARKET STRATEGIES
Since Lankem is stuck in the middle of generic strategies, market penetration is the only strategy
Lankem is able to do. It causes shrinking margins due to price war and increased bargaining power of
distributors and dealers. It is recommended focusing more on other product markets strategies as well.
Refer Appendix 02: Figure 09 for proposed strategies for individual products of the portfolio.
Table 1 - Product Market Strategies
Product/
Market
Strategy
Current status
Most utilized strategy.

Shrinking margins due to
competition
and
Market
distributor,
dealer
penetration
bargaining power
Posses wide distribution
network
Medium and low cost
players grabs customers
High lead time of NPD
Limited products under
Rolac brand and more
New product
generic
conventional
Development
products with Robbialac
brand
Value addition to existing
Recommendations and justifications

Develop differentiated products and try to create market pull
effect control dealer bargaining power and to maintain
margin levels
Develop online marketing website to cater increasing number
of E marketing buyers.
Appoint direct dealers to dilute distributor power and market
Lankem products exclusively.
Promote economical Rolac brand to retain cost conscious
customers.
Establish proper communication channels and cross
functional teams to coordinate NPD activities because, lack of
collaboration among Marketing, R&D and Operations
divisions causing this delay.
Constant evaluation of customer requirements and satisfaction
towards Lankem products and accordingly broaden product
portfolio of Robbialac and Rolac.
14

product is weak
Only catering to high end

market and low end market
segments
Limited distribution of
New Market
Distributor based channels
Development Weak in newly open
markets like North and
East Provinces
No intension of export to
suitable export markets
Current
intension
of
Diversification
diversification to paint
brush market.
Research on how to add value to customers through

augmented and potential products for paints like Eco paints,
Nano tech paints and texture paints.
Develop a new brand focusing on middle market segment
where high end and low end customers are compatible with.
Appoint new direct dealers or convert competitor dealers
where distributor presence is limited to cater new
geographical markets.
Appoint new distributors for two provinces or if necessary
develop two potential dealers as distributors.
Kemokote and Epi-Fix brands have been purchased by
Maldives, Bangladesh and south Indian markets hence export
as a new strategy.
Do not diversify in to brush market yet since Lankem is being
less competitive in current business and need to rectify this
issue as first priority and it requires greater resources.
2.3.5.4 BRAND AND POSITION STRATEGIES
Currently Robbialac is positioned for high quality with less product complaints. Though Robbialac
quality is on par with Dulux and for some products above Dulux quality, still we priced at lower to
Dulux expecting to grab customers from Dulux (refer Appendix 01 :Figure 02). Due to intensive
marketing campaigns and with prevailing brand equality of Dulux, existing customers do not shift to
Robbialac. Since Robbialac has priced its products lower may imply Dulux customers the correlation
of lower price means lower quality. This same mind set can use to position Lankem products as well.
Refer below Figure - 07 for proposed brand positioning.
15

Since it is not possible to revise price without differentiating Robbialac, by adding value to customers,
Lankem needs to match Dulux prices highlighting the quality, additional value it provides.
Akzo Nobel as a multinational world paint giant, they can match the value addition of Lankem in
short period, but the factor of Lankem being 100% local company and confidence it build over three
decades need to use to sustain the position throughout corporate communication messages.
Effect of this price revision is expected to handle through proposed new brand ( Menalak) intended to
serve middle tier customers. Increased production requirement can be managed with existing
production capacity since utilization is calculated as 85% of capacity and with intended operational
efficiency of 20% improvement as proposed in this report.
(Refer Appendix 02: Figure 11- threshold resources and competencies)
2.3.5.5 GROWTH STRATEGIES
Lankem is advice to joint venturing with PPG industries or other global coating giant to piggy back
the Lankem portfolio to be market leader realistically.
Since Akzo Nobel is a global paint coating giant it is not realistic Lankem to compete on existing
technology, without access to new knowledge and cutting edge technology.
PPG can use Sri Lanka as a test market to enter India where existing 10% of present to be further
increased later on.
It will allow sharing funding for capital requirements and configure PPG products to tropical climates
while Lankem can reduce its learning curve by accessing to technology and knowledge on new fields
like Nano technology and water based technologies.
It will help to complete the product range (Refer below for Figure 09 Order lead time and Product
range positioning of Lankem) and minimize the sales lose due to incomplete range. Dulux, Causeway
paints and Asian paints as multinationals, have wider product range than Lankem and this further
enforces the requirement to broaden its portfolio.
It will cut the risk and time considerably of R&D and profit sharing will create sudden influx of
financial leverage to further enhance unique resources like resource personals and unique
competencies to compete by Lankem itself. It a common scenario that most joint ventures ended due
to conflicts of interest before achieving its formed objectives. Relationship marketing needs to
effectively utilize for this relation to be successful.
16

2.3.5.6 CHANNEL STRATEGIES
Current indirect or passive distribution strategy is recommended to further use, because distribution is
not Lankem core competency but to manufacture paints.
Lankem paints
Distributor
Dealer
Consumer
Figure 08 Current Channel Strategy

As explained (Table 01 Product Market Strategies), this model has given more barging power to
distributors and dealers shrinking our profit margins.
Currently warehouse is managed by Lankem and institutional business (B2B) deliveries are handles
by rented fleet of vehicles by Lankem itself. In Fridays and month ends Lankem faces difficulties in
delivering for B2B and loading for Distributor vehicles. Loading delays and inability to PGI in Sap
system incur sales loses and customer dissatisfaction and reliability issues occur.
It is recommend outsourcing the warehousing and transportation to functions to best focus on
manufacturing and prevent above issues happening. It will bring cost benefits from improved
operational efficiencies and enhance the reliability, dependability of the service.
Figure 09 shows dealers and distributor perception towards Robbialac order lead time.
Causeway is the market best in terms of short lead time because it uses own fleet of vehicles to deliver
orders to direct dealer. It has eliminated the distributor from their distribution channel.
17

Therefore following extending current channel strategy with e marketing and appointment of direct
dealers are recommended (Table 01- Product market strategies).
Lankem paints
Distributor
Dealer
Appoint direct dealers
Consumer
E - Marketing
Figure 10 Proposed Channel Strategy
2.3.5.7 STRATEGIC RELATIONSHIP ORIENTED STRATEGIES
Stake holder
Customer
Current status
Customer focus has become
second priority due to dealer
bargaining power.
Dealer and Sales force base
incentive schemes
Customer loyalty to brand is
being shaken by aggressive
competitor activities.
Complaint handling and after
sales support is weak
B2B Institutional Business
(IB) customer relationship is
weak.
Focus on customer attraction
Public
Brand personality is unclear

Knowledge on corporate
values and Policies are poor.
CSR activates done without
conforming to predefined
theme and are not well
communicated to public.
Media coverage is low on
CSR activities.
Recommendations and justifications

Add value to customers to crate market pull effect
through value creation, value communication and
value delivery.
Introduce consumer promotions to engage customers
with brand
Implement CRM using ICT to encourage brand
engagement.
Dedicated hot line to support customer inquiries and
develop field sales force with more technical
knowledge.
Train and develop current IB executives with
fundamentals of interior decoration, architecture and
civil engineering knowledge to deal with such
professionals and social networking events to enhance
personal relationships.
Focus more on customer retention, less costly and
satisfied customers will be a brand advocate
Implement Profile strategy on brand identity to project
correct brand personality as premium brand who never
compromise quality.
Launch corporate marketing campaign to uplift the
corporate profile values and policies.
Conduct SCR activities under defined themes to secure
brand association and update company web site, social
network fan pages for maximum impact.
Deploy relationship marketing to establish good
relationship with media to get maximum coverage
through Press releases and as news segments. 18

Too many suppliers

Retain few reliable suppliers to control the bargaining
power and increased volumes will helps to get
Transaction orientation
Not satisfied due to payment Economies of scale.
Establish and enhance relationship orientation to joint
delays
problem solving and helps to obtain longer credit
periods and to gain industry information.
Improve mutual understanding regarding prevailing
working capital issues and negotiate for feasible
payments if any or make the payments on time.
Employee and Sales force turnover is high Develop motive and compensate to retain and reap
labour union
Back office employees are benefits of investments. Support sales through
synergizing marketing activities to ease on their task
not properly motivated
Not properly educate on their Motivate through recognition, empowering, rewarding

importance of their jobs to because they are also interface of Lankem and
implementers of relationship marketing and satisfied
success.
Lack of knowledge of employee will make customers satisfy.
organizational
strategic Communicate on organizational objectives and involve
intents,
objectives
and them decision making process and allow them the take
initiatives to implement their own suggestions.
values.
Information
flow
is Encourage information sharing culture and educate on
changes
while
establishing
proper
inefficient both vertically and attitude
communicational channels like intranet.
horizontally
Influence
Acceptable adherence to Keep on following regulations while they satisfy
markets
government regulation on authorities they also help to add value to customers.
VOC levels and heavy metal Keep on Improving. Helps to enhance corporate profile
Environmental policies are and to get positive WOM from environmental groups as
well adhered
a referral market.
Rivals
Maintains good relationship Keep enhance the relationship where ability of industry
with competitors through lobbying will be stronger.
paint
manufactures Helps to leak out sensitive information and improve
association.
goodwill among rivals.
Head hunting from rivals is Keep sharing, since 99% dependent on imported raw
not an option among materials production delays cause by shipment delays
association.
can be managed.
Excess raw materials are
shared if possible
Distributor and Distributor
and
dealer Manage the relationship for achieve win- win situation.
dealer
favoring
relationship
is Conduct dealer conventions training programmes to
update product and possible complaint related
prevailing
Dealers current knowledge knowledge.
on products are not updated
Supplier
Table 2- Strategic relationship oriented strategies for stakeholders
19

2.3.6 CONCLUSION
Recommended vision and mission are formulated to guide Lankem for world class excellence and
market challenger strategy is best suit to reach towards this destination after evaluating audit findings
regarding current capabilities, resources and competencies. Recommended marketing strategies are
assessed for their ability to drive Lankem to meets its objective by being more competitive and
relationship oriented.
Following marketing plan for year 2013-16 is developed to implement strategic recommendations to
be more competitive and relationship oriented.
20

TASK TWO
STRATEGIC MARKETING PLAN
WORD COUNT-3954
21

2.4 MARKETING PLAN FOR YEAR 2013-16

FOR LANKEM PAINTS LIMITED
This marketing plan is based on revised vision, mission and marketing strategies to achieve strategic
intents of Lankem Paints Limited.
Refer appendix 05 for planning framework
2.4.1 VISION
To be most preferred innovative world class paint coating company which adds protection to
substrate and decoration to life.
2.4.2 MISSION
Our mission as a professionally efficient innovative paint coating provider for customer
requirements who never compromise quality for any reason is to ensure well being of customers,
employees, wider society and environment while maximizing profits throughout the journey to become
world class coating and service provider.
2.4.3 CORPORATE GOALS
Maximize stakeholder satisfaction by fulfilling individual expectations through relationship

marketing orientation
Maximize profitability of Lankem Paints Limited
Ensure sustainable strategic growth of Lankem Paints Limited
Position Lankem Paints Limited as world class excellence business entity.
22

2.4.4 STRATEGIC ANALYSIS
2.4.4 1 STAKEHOLDER EXPECTATIONS

As per in detail discussion on stakeholder expectations (Task one Table 10) following are the
expectations of key stake holders
Customer
Solutions for their problems
Dependable solutions and services
Value for money
Flexibility,
ability get customized solutions
Supplier
Stability in the business relationship
Corporation of Lankem
Reliable communication
On time payments
Employee
Job security, responsibility from employer
Challenging tasks and proper rewarding recognition
Work place ergonomics
Equal opportunities
Paint association / Competitors
participation
joint efforts to solve industry issues
Ethical business , marketing and recruitment practices
Shareholders
Profitability, Return on investments
Sustainable development of business
Ethical business practices
Transparent management decisions
Authorities and Pressure groups

Transparency of actions
Responsibility for environment and society
Consumer welfare
Figure 11- Stakeholder expectations

In order to fulfill stakeholder expectations support or restrictions of external environment should be
analyzed through environmental scanning.
2.4.4.2 ENVIRONMENTAL ANALYSIS
MACRO ENVIRONMENT
POLITICAL & LEGAL

Political stability attracts new foreign direct
investments in hotel, civil construction
sectors.
New regulations on Volatile Organic
Compounds (VOC), heavy metals of paints.
SLS (Sri Lanka Standards) certifications are
essential to bid for government and semi
government projects.
Fund allocation to SLINTECH (Sri Lanka
Institute of Nano Technology) to popularize
Nano technology.
MOU with Japanese universities and R&D
institutes to share knowledge on Nano,
Chemical & polymer technology.
SOCIAL
B2C consumers seek for texture paints with the
increased purchasing power and B2B customers
like facility managers seek for more durable, easy
maintenance paints.
Consumers are increasingly aware of volatile
organic compounds of paints and willing to pay
premium for Eco products.
Customers increasingly refer to online and opinion
formers & leaders like technical experts,
architectures, engineers for information searching
rather than paint dealers and applicators.
Increased engagement in social media to
networking and information sharing
23

ECONOMIC
TECHNOLOGY
Inflation is steadily growing at a rate of 8.9%
as per Colombo Consumer Price Index (CCPI).
Average GDP is maintaining its growth at Low VOC, Water based technologies
and Nano technologically developed
6.6% per annum and Purchasing power parity
paints are being popular in Sri
per GDP has reached ever highest $ 5670.00 in
Lankan coating industry.
2012.
Unemployment has reduced from 4.9% in Increased usage of internet and
mobile technology to gather and
2011 Q1 to 3.5% in 2012 Q3.
share information.
Both deposit and lending interest rates have
been increased by 1.8 % to10.9 % and 18.9%
respectively in 2012.
ENVIRONMENT
Customers are being aware of importance of
environmental sustainability and this plays major
role in purchasing decision.
Unpredictable climate changes have forced
customers to seek for weatherproof, durable paint
coatings.
Air purifying, heat reflective, light enhancing
abilities of Nano technologically developed Eco
paints are increasingly popular in paint industry to
ensure environmental sustainability.
MICRO ENVIRONMENT
Bargaining power of suppliers Low
Supplier concentration High (chemicals, packing
material, label printing, corrugated carton, foreign
paint & related machinery supplier)
Availability of substitute inputs Medium ( similar
chemicals)
Buyers switching cost to other inputs - Low
Importance of supplier inputs High
Suppliers product differentiation Low (generic
chemicals)
Paint industrys importance to supplier- Medium
Buyers threat of backward integration Low
Suppliers threat of forward integration Medium
Threat of substitutes - Medium
Relative price of substitute - High except
wallpapers (granites, tiles, cladding, powder
coating,)
Relative quality of substitute - High
. Switching cost to buyers - Medium
Figure 13 Porters five forces analyses
Figure 12 PESTEL analysis
Bargaining power of customers - High

Number of B2B & B2C buyers High
Paint product differentiation Medium
Switching cost of paint buyers- Low
Buyers use of multiple paint suppliers- Medium
Buyers threat of backward integration Low
Sellers threat of forward integration -Low
Rivalry among paint manufactures - High
Six major players are competing with balanced
market share (Appendix 02-figure 01)
Industry growth rate is hovering around 15-20%
Product differentiation Medium
Buyers switching cost Low
Diversity of competitors Low
Exit barriers Medium (specialized machinery,
high tock levels with distributors & dealers,
debt collection
Threats of new entrants - Low
Barriers to entry- High (specialized machinery,
knowledge, R&D facilities, high initial investment)
Economies of scale High
Product differentiation Medium
Initial & working capital (45 -90 days credit)
requirement High
Switching cost to buyers Low
Access to distribution channels- Low
Government policies on paint chemicals Medium
Incumbents defense of market share- High
Industry growth rate Medium (15 -20 %)
24

2.4.4.3 OPPORTUNITIES & THREATS ANALYSIS
After considering macro and micro environmental factors, following situational analysis is developed
Opportunities
Paint market expansion with foreign direct
investments of construction industry.
SLS certification is essential to bid
government projects
Information access to Nano technology
through SLINTEC
Scholarships to paint industry to study
chemical, nano, polymer technologies.
Purchasing power is increased and
willingness to pay premium for Eco, special
effect paints.
Customers are increasingly aware of VOC
levels, environmental sustainability.
Increased use of internet and mobile
technology to information gathering
Figure 14 O &T analysis
Threats
New regulations in volatile organic compounds
(VOC) forced rivals to new product
developments.
Lending interest rates have increase for business
loans
Demand for existing solvent based products are
declining
Nano technologically developed paints can be
introduced by multinational rivals quicker than
Robbialac.
Tiles, granites , claddings like substitutes to paint
are being popularized
Paint industry players are in a price war
damaging margins.
Devalue of the Sri Lankan Rupee caused in
shrunken margins.
Local player Nippolac is on a verge on acquiring
by Japanese coating giant Nippon paints.
Opportunities and threats of situational analysis are used to identify possible scenarios
2.4.4 4 SCENARIO PLANNING
Following scenarios are identified as possible scenarios.
Acquisition of Nippolac by
Japanese global coating giant
Credential of the products,
Current price war will be
conformity to standards will
fierce and dealer distributor
be basics and value addition
domination
through
unprofitable business if not
augmented
and
will
cause
Nippon paints will fierce the

competition
and
introduces
Nano, Eco paints to the market.
potential products will be
differentiated.
Relationship
expected
Good demand for Eco, Nano
values chain will be key success
paints and texture paints
factors for surviving in this
decline demand for solvent
competition
Figure 15- Possible scenarios
based paints
marketing
and
25

2.4.4.5 OBJECTIVES FOR LANKEM PAINTS LIMITED
Objectives are derived considering the strategic intents of Lankem and evaluating scenario planning.
Increase revenue to 6 billion from 2 billion by year ending 2015 -16
Increase profitability to 400 million from 90 million (2011-12) by year ending 2015 -16
Improve operational effectiveness and efficiency to achieve 45 % cost reduction to support

profitability by year ending 2015 -16
Increase average product gross margins to 45% to current 23% by year ending 2015 -16
Increase market share to 30% and to be market leader by year ending 2015 -16Complete
product portfolio of Robbialac to 90 % from 79% and Rolac to 30 % from 19% by year
ending 2015 -16
Introduce middle tier brand with 55 % complete product portfolio. by year ending 2015 -16
2.4.4.6 STRENGTHS AND WEAKNESSES ANALYSIS
Following strengths and weaknesses are identified to shape marketing strategies based on identified
objectives as per scenarios.
Strengths
Experienced human resources

R&D capability
Wide distribution network & 6 own outlets
Partnerships with foreign paint companies
28 years of industry experience
Established foreign acquired brand name
Second market leader with 18% market share
ISO 9001 & 14001, Sri Lanka Standards
certification
Up and running Sap ERP system
Financial backing of the parent company
Customized colour preparation ability of
Robbialac dealers
Lankem Industrial , a sister company is in
chemical business
Solid corporate profile due to SCR activities
Eco product range is accepted in market
Weaknesses
Traditional change obstructive organizational
culture
Inability retain skilled human resources
High lead time of new product developments
Limited space to warehousing (paint is a
seasonal product)
Manual colour matching hence high colour
variations
Product oriented marketing strategies
Over utilized production capacity.
Limited B2B customer base
Lack of digital and new media usage
Inefficiencies in payment collections
Issues with working capital management
Inefficiency and less transparency in
information communication
Limited collaboration among sales, marketing,
and R&D and operations divisions.
Figure 16- S &W analysis
26

2.4.4.7 GAP ANALYSIS
Gap analysis should be done to identify possible gaps which obstruct Lankem from achieving its
strategic intents. Marketing strategies should formulate in order to bridgeing prevailing gaps.
Current situation
Ideal situation
Market following
Market challenging
Stuck in middle
Differentiation strategy
of competitive
Market penetration, new product and
strategy
More focus on market penetration
Gap
Current brand positioning

Incomplete product portfolio
Limited
access
to
cutting
market development
Premium positioning
Three brands to cater upper , middle
edge
technology and knowledge

Dealer domination channel
Inefficient supply chain
Transaction orientation
and lower market segments

Strategic partnership with industry
giants
Controlled
dealer
domination
in
distribution channel
Change resisting culture
Relationship marketing orientation
Centralized decision making and
Empowered, distributed authority and
autocratic leadership style
democratic leader ship style
Figure 17- Gap analysis

Marketing strategies
should
bridge gaps
Following strategic choices are recommended for implementation.
27

2.4.5 STRATEGIC CHOICE
2.4.5.1 HOW TO COMPETE

Competitive positioning
Figure 18 proposed Competitive positioning

As recommended in report (refer 2.3.5.2) competitive positioning should be market challenger
strategy to become market leader to pursue for world class excellence. Hence it is acceptable among
stakeholders.
As second market leader and to become market leader challenger is the most suitable strategy.
As explained, this strategy is feasible due to ability of Lankem to deploy offensive attacks (refer
Report 2.3.3).
Differentiation strategy
As discussed in report (2.3.5.2) Lankem has stuck in the middle of generic competitive strategies and
it is acceptable among stakeholder to use this because Robbialac is perceived as premium brand
(Refer Report Figure 07) and in order to get rid of price war, differentiation will be best suit.
Distributed resources for cost leadership can be used to differentiate and proposed relationship
orientation can further support this.
Figure 19Proposed
competitive
strategy
28

Value chain
Purpose of using this value chain concept is to highlight the activities which can add value to gain
sustainable competitive advantages. Relationship marketing is advised to use to enhance relationship
with involving stakeholders (Refer Report 2.3.5.7 Table 02).
SAP ERP system links these actives together for robust functionality and improves communication.
Figure shows how value is added in each function to achieve margins of 45 %.
Figure 20- Value chain analysis
Outsourcing warehouse and distribution will improve inbound and outbound operation
Technology is what Lankem is lacking and hope to transfer knowledge and technology through
joint venturing with PPG or other industry giant.
2.4.5.2WHERE TO COMPETE
Ansoffs strategies
As explained in Table 01- Product market strategies, following strategies are recommended.
Penetration
New Product development
New market development
29

Figure 21Ansoffs growth

matrix
Diversification is not recommended due to high risk and more resources will be consumed for
market challenger strategy.
2.4.5.3 METHOD OF GROWTH
Joint venturing
Based on the Lankem financial situation and lack of unique resources and competencies (Refer
Appendix 02: Figure 11- Resources and competencies) , It is not feasible to become market leader by
purely organic growth hence joint venturing with PPG industries as most suitable partner is
recommended.(Refer Report 2.3.5.5).
2.4.6 IMPLEMENTATION
Implementation is the most crucial and difficult part of the strategic marketing planning process. No
matter how good Lankem is in planning and recommending strategic choices, if cant properly
implement through change managing.
30

Consideration of following aspects of resource planning and operations planning are vital for
successful marketing plan implementation and McKinseys 7S model is advised to further adhere in
implementation process.
2.4.6.1 ORGANIZATIONAL RESOURCES PLANNING
Technology
&
Knowledge
Machinery
&
Vehicles
IT
infrastructure
Resource
Planning
Human
Resources
Capital
Supplies
Figure 22- Resource planning

Above figure shows possible resource planning requirements for varies aspects.
Human resource- since changes are implemented by people required skills, competencies should be
developed of hired from outside like consultants. Adequate human resources should be allocated to
tasks and their job role needed to be clarified.
Technology & knowledge- cutting edge technology and access to latest knowledge will provide
competitive advantages and technology and knowledge transfer is proposed through joint venturing.
IT infrastructure Usage of IT infrastructure is average in Lankem due to generation gaps and need
to provide more user friendly graphical user interfaces to improve interaction and use the power of
Sap for panning and decision making.
Machinery and Vehicles- existing machineries need to preventively maintain to minimize any
production delays and Lankem needs to take policy decision to limit purchasing own vehicles but
renting out for medium term contracts to obtain cost benefits and get rid of burden.
31

Supplies-currently Lankem and other rivals directly import 70% of chemicals and through Paint
Manufactures Association it is recommended to develop a local partner who keeps stocks with him to
minimize delays occurred by shipment delays. This will benefit the whole industry.
Capital-the critical resource for any implementation and hoped to fund raise through equities of parent
company by informing the benefits and ensuring lucrative ROI.Another major propotion is hoped to
get via proposed joint venture.
2.4.6.2 OPERATIONS PLANNING
Production
Logistics &
Distribution
Operations
Planning
Customer
Care
Support
Functions
Marketing
& Sales
R&D
Figure 23 Operations Planning
Industry best practices are recommended to implement for each and every operation functions and
further to reconfigure Sap systems to facilitate these best practices. Cross functional teams are hoped
to form for implementing improved business process and if necessary reengineer the business process
operations to improve effectiveness, efficiency to be a learning organization to pursuit world class
excellence.
32

Refer Appendix 02: Figure 16 for current analysis of McKinseys 7 S model and following
recommendations should be configured to implement marketing plan to successfully achieve strategic
intents.
Figure 24- McKinseys 7 S
2.4.6.3 STRATEGY
The most important part that will lead to be market leader and for long term vision. Revised vision,
mission, corporate objectives, values and strategies need to be well communicated to employees to
justify the need of being more competitive and relationship oriented. Benefits of implementation for
employees and other stakeholders need to be communicated to get synergy from their jobs.
2.4.6.4 STRUCTURE
Current functional hierarchical structure should be flattening further to link top management and
operations management for better communication, improve involvement in decision making. This
empowerment will help to take responsibility for their own opinions and to be self motivated.
Multi disciplinary and function teams need to be formed base on requirements like decision making in
joint venturing, outsourcing warehousing and distribution operations etc.
33

2.4.6.5 SYSTEMS
Already implemented ERP system covers entire organizational activates and is developed based on
industry best practices .Lankem needs to adapt to these systems to pursuit world class excellence by
stop configuring Sap to support traditional systems but to reconfiguring to practice world class
business practices again. Still few key employees handle the sap system and true power of Sap needs
to reap by further training and developing all users.
2.4.6.6 SHARED VALUES
Shared values are the heart of Lankem which pumps blood to other components to work together.
Currently Lankem has not defined any shared values and following are the recommend shared values.
Teamwork
Customer satisfaction
Trust and respect for each other
Professionalism
These values need to be accepted by all employees and it should be the initial step of implementing
the marketing plan Attitude changing and team spirit building , professionalism development should
be facilitated accordingly.
2.4.6.7 STAFF
Staff will be the most resisting factor for effective implementation and current staff should be
educated on proposed strategies, structures, leadership style, systems
should be compatible and
required skills need to be developed for them to work with job satisfaction. Shared values of staff will
unite the organization for one intended direction to reach its destination.
34

2.4.6.8 STYLE
Management style plays major role in strategy implementation. Since management style effects to the
whole organization, it need to be democratic to accept and work on suggestions and critics. Current
management style is revealed to be more autocratic and need to change.
2.4.6.9 SKILLS
Skills are set of competencies, employees including managers should possess with themselves to
perform their job role with high level of professional efficiency to achieve objectives and goals.
Identified gaps in skills need to be bridged by training and developing internal staff or recruiting new
blood to Lankem.
Please refer briefing paper for implementation barriers (2.5)
2.4.7 CONCLUSION
Capital and other resources will hope to procure from parent company as one of Lankem Ceylon
PLCs star category SBU need more funds to be a cash cow in future. Technology and knowhow hope
to procure by joint venturing.
If not managed properly these 7S factors will be the obstructive factors to implement and if managed
properly same will drive Lankem to world class excellence.
35

2.4.8 EVALUATING SUCCESS OF THE MARKETING PLAN
2.4.8.1 Marketing plan itself
Marketing plan itself can be used to evaluate the success of achieving objectives by dividing main
objectives to sub objectives as milestones.
Objectives by year ending 2015 -16
Increase revenue to 6 billion from 2 billion
Increase profitability to 400 million from 120 million
Improve operations to achieve 45 % cost reduction
Increase average product net margins to 45% to current 23%
Increase market share to 30% by 12 % and to be market
leader
Complete product portfolio Robbialac
of Robbialac to 90 % from
79% and Rolac to 30 % Rolac
from 19%
Introduce middle tier Menalak brand with 55 % complete
portfolio
2013-14
2.7 Bn
180Mn
20 %
28 %
21%
2014-15
4 Bn
270Mn
35%
35%
25%
2015-16
6 Bn
400Mn
45%
45%
30%
83%
86%
90%
24%
27%
30%
20%
35%
55%
(Menalak brand is derived by rearranging Lankem)

Milestone method is used to evaluate marketing and financial objectives and Balances score card is
proposed to evaluated overall evaluation of the marketing plan.
2.4.8.2 BALANCED SCORE CARD
"The balanced scorecard retains traditional financial measures. But financial measures tell the story
of past events, an adequate story for industrial age companies for which investments in long-term
capabilities and customer relationships were not critical for success. These financial measures are
inadequate, however, for guiding and evaluating the journey that information age companies must
make to create future value through investment in customers, suppliers, employees, processes,
technology, and innovation."
-
Robert S. Kaplan and David P. Norton, Using the Balanced Scorecard as a Strategic
Management System, Harvard Business Review (January-February 1996): 76.
36

Learning and growth

Measure R&D as a percentage of sales
Measure number of employee suggestions
Measure for faults and mistakes to identify routine faults and causes for faults
Measure lead time for NPD
Measure number of new idea throwing away due to lack of technology and know how
Customer/dealer perspective
Financial perspective
Lankem Paints
New customer/ dealer acquisitions
Limited
Customer/ dealer retention

Vision
Level of customer satisfaction

Number of customer inquiries
Number of customer complaints
Market strategies
for
improved
competitiveness
and relationship
orientation
Sales growth rate
Sales revenue
Profits
Return on investment
Margin levels
Market share
Internal business processes

Identifying critical business process of customer satisfaction
Improve any bottlenecks or process for effective, efficient, flexibility and time , cost savings
Diagnose the accuracy of quality inspections
How well products and services fulfill customer requirements
Evaluate overall business performance
Figure 25- Balances scorecard for Lankem
2.4.8.3 CRITICAL SUCCESS FACTORS
Above mentioned (2.3.5.1 Figure 05) critical success factors should constantly monitor and control to
ensure the correct path.
37

TASK THREE
BRIEFING PAPER FOR BOARD OF DIRECTORS
WORD COUNT- 1525
38

2.5 BRIEFING PAPER ON LEADERSHIP CHALLENGES

AND STYLE FOR IMPLEMENTING MARKETING PLAN
Briefing paper on leadership challenges and style for implementing marketing plan 2013-16
By- Marketing Manager, Lankem Paints Limited (2012. 11.15)
2.5.1 OVERVIEW
This briefing paper will outline the potential leadership challenges of implementing marketing plan
and recommendations. It will also assess how my own leadership style and personal development
need to change to support recommendations.
2.5.2 CRITICAL EVALUATION OF CURRENT LEADERSHIP PARADIGM
It is revealed that current leadership paradigm in more into management perspective rather than being
a visionary leadership. We lost our market position as market leader and became market follower not
giving enough effort to challenge Dulux to regain brand prestige we lost decade back. If so Lankem
could have done what needed to be done by creating and identifying new ideas and trends and
establishing a vision for clear direction.
Management ability of Lankem has been supported us to survive and sustain as a second market
leader and since visionary leadership orientation of competitors are now posing greater challenge to
Lankem and leadership is required to defend ourselves and to achieve strategic intents.
Leaders of Lankem is focused more on day to day tactical actives like managing working capital
when they should be looking at a big picture.
Current leaders are not flexible enough to adapt to changes and improve their skills and knowledge to
suit the current environment. This is causing Lankem to be rigid in a dynamic environment loosing
competitiveness.
Leaders have the power and authority and what they are lacking is a vision to be properly directed.
39

Encouragement from organizational culture is less to emerge leaders form the Lankem itself. Refer
figure 25 - Cultural web.
Stories
Evolvement of Lankem,
Stories of important
events & personalities,
Reputation among
stakeholders,
Control systems
Biased performance
appraisal & rewards,
Lack of research in
stakeholders to keep
them satisfied
Rituals & Routines

Lack
in
initiative,
preventive actions, risk
taking, reluctant to adapt to
changes,
frequently
occurring events, functions
The Paradigm
Traditional
formal rigid
culture
Organizational structures
Functional hierarchical
structure, rigid line of
command and high span of
control
Symbols
Lankem logo, Cyan
blue- corporate colour,
Formal dress code with
company ID
Power structure
Finance director highly
influences Lankem;
marketing director
challenges decisions,
seniority based power
Figure 26- Cultural web for Lankem
40

2.5.3
CORPORATE
LEVEL
LEADERSHIP
CHALLENGES
FOR
IMPLEMENTING RECOMMENDATIONS
2.5.3.1 MANAGING INTERNAL POWER AND POLITICS
Internal power and politics causes many good marketing plans, strategies to be useless due to fears of
job security, considering personal agendas and divisional, functional performances over overall
organizational performances etc.
All the managerial positions across the functions need to be well educated on importance of
collaborating together for better greater outcomes. Multifunctional, multidisciplinary decision making
teams will reduce the difficulties of integrating efforts across functions and will help to control the
internal power and politics and to get synergy from efforts.
Collaboration among leader, managers and staff is essential because strategy requires few people to
formulate bur implementation needs each and every head and hands to be accountable and responsible
for the job.
2.5.3.2 CONVINCE AND FORM NEW EXPECTATIONS
Leaders should communicate, educate and convince followers for possible benefits of the change and
ensure their job security. Leader should justify how corporate goals and values are compatible with
personal goals and values to motivate them to get support for the implementation.
2.5.3.3 CREATE LEARNING OPPORTUNITIES FOR FOLLOWERS AND EMPOWER,

MOTIVATE TEAM TO PROBLEM SOLVING
Leaders should create learning opportunities for followers and organizational culture should facilitate
this by being a learning organization. This will ensure reduced learning curve for followers;
empowerment can be introduced by reducing span of control. This will lead to take proactive
initiatives for problem preventing and effort for continuous improvement.
41

2.5.3.4 CREATE AND ENHANCE EMOTIONAL INSPIRATION FOR

IMPLEMENTATION
Motivation and inspiration for world class excellence may dilute over time and it is really challenging
to maintain and enhance the emotional inspiration among followers. Leader need to constantly remind
the goals and values Lankem pursue to sustain motivation and need to properly identify and fulfill
needs of the followers.
Maslows hierarchy of needs theory can assist leaders on this matter.
Self Actualization
Esteem
Social
Security
Physiological
Figure 27- Maslows hierarchy of needs
2.5.3.5 SHAPING THE WORK ENVIRONMENT AND CORPORATE CULTURE TO FIT

THE STRATEGY
This can be considered as most important challenge for implementing the recommendations.
Relationship orientation is directly correlated with the organizational culture way usually things done
here. Followers should encourage rationalizing the each and every action by incorporating scientific
thinking and correct logics to decision making. They need to be convinced that there is no need to
following systems, procedures and traditions is they do not add value to the journey of world class
excellence.
2.5.3 6 DIFFERENT STAKEHOLDER MANAGEMENT
As well as managing internal customers for implementation different stakeholders should be managed
at corporate level.
42

Customers attraction and retention of customers as the main reason for implementing, current
intention for value added products and services need to be well communicated to establish positive
and welcoming perception toward the change. Because it is not easy to change an established
perception and therefore leader need to use credential and credible communication, improved quality
standards to convince this.
Shareholders shareholders and board of directors need to be informed regarding the strategic
change and obtain their approval. Marketing plan also hopes the financial back up of parent company.
Because, by being market challenger, risks the company resources and convincing for results to
shareholders will invest more on equities and more funds can be raised as well.
Suppliers, dealers and distributors - need to establish good relationship as with them because
proposed strategy will need extensive reliability and dependability of them. Leader should influence
them to work together and they need to be educated on regarding the importance of their value chain
actives to add value to customers and their suggestions and critiques will helpful to shape the
operations.
Advertising and research agencies Lankem need to get maximum contribution from research
agencies to get accurate customer and competitor information for controlling strategies, tactic of
proposed plan. Advertising agencies need to be clearly briefed on new challenger strategy, branding
position to communicate coherent and consistent messages to stakeholders.
Media, authorities and pressure groups Communicate and inform relevant parties regarding the
upcoming changes when and in the progression status regarding the key milesstone achieved, new
products and services offered , ongoing CSR and environmental sustainability activities to uplift the
corporate profile of Lankem.
43

2.5 4 KEY LEADERSHIP SKILLS NEEDED
Following set of skill and traits are needed to be exhibited by leaders for successful implementation.
Skills/ Characteristics/Traits Importance of Skills/ Characteristics/Traits
Self confidence and energy
Self confidence of final result and to inspire others confidently.

Energy for initiate and lead the followers for final destination
Tolerance of stress and To cope up stressful situation of managing people and issues.
willing
Leader has to take the responsibility of training and development of
to assume responsibility
individuals while coping up the stress.
Persistence
and To ensure new strategy implementing will make Lankem more
determination
competitive and relationship oriented.

Determined enough to withstand resistance until change is
implemented clearing issues and bottle necks.
Decisive, assertive and fair
To understand personal agendas and their variances and solve issues
Adaptable and co-operative
To understand the personal feelings, competency levels for

establishing confidence and develop individuals by being co
operative.
Organizations
and
co- Organizing, coordinating and facilitating teams and stake holders in
ordination
issues and misunderstandings.
Conceptually skilled and
Identify aims and visions for the group, purpose and
creative
direction
Diplomatic, tactful and
To handle issues and create win win situation is possible to solve
persuasive
problems effectively
Humility
To be perceived as humble, to earn respect of others and enhance

influencing ability
Fluent and articulate
To clearly express yourself and inspire other in problem solving and

motivating.
2.6 CRITICAL ASSESSMENT OF MY OWN

LEADERSHIP STYLE
Know yourself and your opponent to be guaranteed victory
-War strategist Sun Tzu
44

According to Sun Tzu, I need to assess myself as the final piece to be aware of as other pieces were
well audited and formulated strategies accordingly for implementation.
As per the evolution of leadership styles I need to assess what describes me best and then to identify
how to change my style to best suit for what implementation requires from me to be.
Strengths of style
Weaknesses of style
Proactively identifies possible problems and do Effectives

what is required.
of
short
term
project
implementation.
Authority and decisions shared with employees
Risk is taken if and only if necessary
People oriented and believe in work with people
Unable to build strong emotional bonds
Willingness to share knowledge and develop Too

people
sensitive
for
issues
and
overreacting
Earn respect by giving respect
Need of continuous follow up for already
Communication is considered as key to build
distributed tasks
Less tolerance for ambiguity
relationship.
Satisfaction
much
solving
and Second thoughts in hiring smarter people
ownership of my suggestions to implement
from outside and over believe in training and
through
problem
Inspired by the team spirit and put extra effort to
developing internal staff.
be key member of the team
Based on the assessment it revealed that my current leadership style is more in to active transactional
approach and since marketing plan requires transformational leadership to direct to new vision, I need
to be open minded about my current style and be flexible enough to think and decides how
transformational leader will cope up with such issues.
It is recommend sustaining and enhancing the strengths of my leadership style, applying them more to
be a good leader whenever possible and understand weakness of my style and try to minimize them
by being opening up for many alternatives.
It is also recommend organizing friendly discussion sessions on personal development among
colleagues to describe one or two top of mind good personality and leadership characteristics and
discouraging personality and leadership characteristics. This will helps to understand others true
perception towards me and vice versa to assess more accurate picture.
45

According to the saying Leaders are born not made this is true that some people posses certain
characteristics from birth but I believe still people can be good leaders if they want to be and if they
have understand themselves well. Understanding yourself is the initial step and by learning and
practicing and through experience we can eventually adapt to good practices which will make us good
leaders.
Following recommendation need to be constantly follow in order to inculcate required style to my
behavior. It is recommended to try to inculcate entrepreneurial style if possible and ultimately I will
be ending up being good transformational leader.
Believing on my own fate is in my hand ( Internal locus of control)
Tolerance of ambiguity
Willingness to hire smarter people outside if internal staff does not have potential at the
moment and justifying internal staff regarding this.
Consistent drive to create, build or change not motive by money but by challenge and
betterment of all
Passion for achieving results
Optimism and risk taking
Sense of urgency, to finish as soon as possible without waiting.
Perseverance to see Lankem as world class business entity.
Resilience, change Lankem culture to accept mistakes and learn through them but take actions
on repeated same mistakes.
Sense of humor about oneself
2.7 CONCLUSION
Though leaders are born still ordinary people can be leaders if they really need to be one by
continuous assessment of themselves and practicing best practices. Skills and competencies will helps
to be a leader but charisma itself will not help. Effective communication is the key to successfully
implement marketing plan and working proactively with people and lead by example with clear
visionary thinking will help Lankem to achieve its goals.
46

REFFERNCES
Strategic finance division

Lankem Ceyon PLC.
Lankem Ceyon PLC.
Lankem Ceyon PLC.
Lankem Ceyon PLC.
(2012) Annual report 2011/12 . [report] Colombo 02:

Lankem.lk (n.d.) Lankem.lk. [online] Available at: http://www.lankem.lk [Accessed: 15 Nov

2012].
Lankemrobbialac.lk
(n.d.)
Lankem
ROBBIALAC.
[online]
Available
at:
http://www.lankemrobbialac.lk [Accessed: 18 Nov 2012].
Kotler, Philip, Marketing Management: Analysis, Planning, Implementation and Control, 9th
ed. Prentice-Hall, Upper Saddle River NJ, 1997. p 68
Riley,J(2012) Business objectives.[online] Available at: http://

www.tutor2u.net/business/strategy/objectives.htm[Accessed :22 Nov 2012]
(Drucker, Peter F., "The Practice of Management", 1954. ISBN 0-06-011095-3)
Johnson and Scholes (Exploring Corporate Strategy)
Multilac.com (1981) Multilac, The World Class High Quality Paints Exported From Sri
Lanka. [online] Available at: http://www.multilac.com/ [Accessed: 11 Nov 2012].
Dulux.lk (2012) Dulux. [online] Available at: http://www.dulux.lk [Accessed: 11 Nov 2012].
Strategic Planning (1979). George Steiner. Free Press
Nippolacpaints.com
(2008)
Nippolac
Paints.
[online]
Available
at:
http://www.nippolacpaints.com/ [Accessed: 13 Nov 2012].
The Rise and fall of Strategic Planning (1994). Henry Mintzberg. Basic Books
Causewaypaints.com (n.d.) Causeway Paints Lanka Limited. [online] Available at:

http://www.causewaypaints.com [Accessed: 12 Nov 2012].
Data and statistcs unit (2012) Central bank report 2011/12. [report] Colombo: State printing
corporation.
Data and statistcs unit (2011) Central bank report 2010/11. [report] Colombo: State printing
corporation.
Marketing division (2012) Marketing and sales analysis. [report] Colombo 02: Lankem
Paints Limited.
Robert S. Kaplan and David P. Norton, Using the Balanced Scorecard as a Strategic
Management System, Harvard Business Review (January-February 1996): 76.
47

APPENDIX 01- LANKEM ROBBIALAC PAINTS

LIMITED
ABOUT LANKEM ROBBIALAC
Lankem Paints Limited is one of the leading
decorative and protective coatings manufacturers in
Sri Lanka founded in 1984 under the wings of
Lankem Ceylon PLC, the parent company.
Company acquired a international brand name
Robbialac, and it was the first paint company in
Sri Lanka to be awarded ISO 9001:2000 Quality
Management
Systems,
ISO
14001:2004
Environment
Management
and SLS (Sri Lanka
Lankem Robbialac
also
Standards) Product Quality. Lankem product
portfolio consists of own products and imported
products to complete the range, from global coating
giants like Akzo Nobel( Netherland), Du Pont (
USA), Alcea and Candis( Italy)
48

49

APPENDIX 02
50

51

52
Figure 19-Key
success factors
of paint indusrty
Product/ R&D trends

Sustainable
Low VOC /Odour
Energy saving /efficiency
Added functionality
R&D on consumer, packaging,
process, safety, formulations

Changing regulations
Keep track of changing
chemical regulations and
safety standards
Back up claims with
scientific evidences
Labeling requirements
Branding / marketing
Invest
in
branding,
advertising,
promotion
and distribution.
Exploit
opportunities
through
demographics,
health benefits and life
styles.
Enter new markets
Create markets needs
through
product
differentiation, entering
new
geographies
or
channels.
Invest in distribution &
Brand equity
53

APPENDIX 03
1.1 CURRENT VISION OF THE PARENT COMPANY
To be the front runner in the chemical industry in Sri Lanka

Based on the characteristics a vision should have, current vision is inspirational to be the front runner
but it restricts the company being expanded across the borders by saying in Sri Lanka. This vision was
formulated three decades back when the parent company started in Chemical business but today it has
diversified to hospitality, plantation sectors as well. Hence it should generalize accordingly to suit all
the SBUs.
1.2 PROPOSED VISION FOR THE PARENT COMPANY
To be the world class in each and every business and territories we operate in
This new vision has generalized the intension of being world class whatever the business Lankem
Ceylon PLC operates in irrespective of geographical boundaries.
1.3 CURRENT MISSION OF THE PARENT COMPANY

Our mission as a manufacturer and formulator of chemical products is to expand our business
through value addition and quality assurance with a commitment to society to continuously improve
management and performance in the areas of health, safety and the environment
While vision defines the broad long term inspirational direction, mission should describe the path of
reaching intended destination. But this mission statement does not define how exactly Lankem is
going to reach its inspirational destination.
Current mission defines the type of business the company is in by saying a manufacture and
formulator of chemical products. For a diversified business model like Lankem Ceylon PLC this
business type should be generalized covering both production ( Chemicals, Agro chemicals Paints,
bitumen, FMCG goods, plantations) and services ( hospitality, construction) aspects.
54

Current mission strives towards the current vision by expanding the business, which is expected to be
an integral part of mission statement but through value addition and quality assurance. This statement
is applicable only to customers for products and services as it suggests but not to entire stake holders.
Mission clearly defines its intention to excel on corporate social responsibility in terms of health,
safety and environment. Mission does not imply Lankem intention towards employees, suppliers, and
shareholders. Values are not clearly defined for parent company as well.
1.3 PROPOSED MISSION FOR PARENT COMPANY
Our mission as a professionally efficient innovative solution provider for customer requirements
who never compromise quality for any reason is to ensure well being of customers, employees, wider
society and environment while maximizing profits and shareholder wealth throughout the journey to
become world class business entity.
This proposed new mission statement covers all aspects existing mission is lacking of. It has given
firm direction as world class and shows how Lankem can reach its destination. It also presents
organizational beliefs towards stakeholders, values of the organization inspirational motivation for
becoming world class entity.
55

APPENDIX 04
1.0 DEFINITIONS
1.1VISION
According to De Wit and Mayer (2005) strategic vision outlines the desired future at which the
organization hopes to arrive.
This means that it provides foresight to see the future, helps to define Lankems position in projected
future. It serves as a concrete foundation for Lankem to derive mission, objectives and strategies.
1.2 MISSION
The word Mission comes from the Latin word mittere that means to send
The mission underpins the vision and describes how it will be realized. This means that it needs to be
more specific and reflect the organizations standards in areas such as customer service, employee
relations, product or service quality and reliability, and profitability
-Kotler, Philip, Marketing Management: Analysis, Planning, Implementation and Control, 9th ed.
Prentice-Hall, Upper Saddle River NJ, 1997. p 68
De Wit and Mayer (2005) identify another three components of the corporate mission.
Organizational beliefs- Stakeholders work in unison with common understanding
Organizational values Compatibility of organizational values and personal values
Definition of the business as an example Lankem is in paint coating business
According to Camplell and Yeung (1991) following four functional elements will determine
the strength of the mission.
Direction Strategic direction of the organization
Legitimization - Legitimates its activities to stakeholders
Motivation Inspire employees to work together
Strategic change Support to change attitudes of employees to lead towards new direction
56

1.3 OBJECTIVES
"Objectives are statements of specific outcomes that are to be achieved"

-Riley,J(2012) Business objectives.[online] Available at: http://
www.tutor2u.net/business/strategy/objectives.htm[Accessed :22 Nov 2012]
Peter Ducker Suggested that corporate objectives should consist of eight components
Market standing
Market share, customer satisfaction, product range
Innovation
New products, better processes, using technology
Productivity
Optimum use of resources, focus on core activities
Physical & financial resources
Factories, business locations, finance, supplies
Profitability
Level of profit, rates of return on investment
Management
Management structure; promotion & development
Employees
Organizational structure; employee relations
Public responsibility
Compliance with laws; social and ethical behavior

(Drucker, Peter F., "The Practice of Management", 1954. ISBN 0-06-011095-3)
Many business textbooks suggest that both corporate and functional objectives need to conform to a
set of criteria referred to as an acronym SMART.
Specific
The objective should state exactly what is to be achieved.
Measurable An objective should be capable of measurement so that it is possible to determine

whether (or how far) it has been achieved
Achievable
The objective should be realistic given the circumstances in which it is set and the
resources available to the business.
Relevant
Objectives should be relevant to the people responsible for achieving them
Time
Objectives should be set with a time-frame in mind. These deadlines also need to be
Bound
realistic
57

1.4 STRATEGIES
Strategy comes from the ancient Greek word meaning the art of leading an army. The concept of
strategy was being applied to business after World War II in the USA.
"Strategy is the direction and scope of an organization over the long-term: which achieves advantage
for the organization through its configuration of resources within a challenging environment, to meet
the needs of markets and to fulfill stakeholder expectations".
- Johnson and Scholes (Exploring Corporate Strategy)

Strategy is that which top management does that is of great importance to the organization. Strategy
refers to basic directional decisions, that is, to purposes and missions. Strategy consists of the
important actions necessary to realize these directions. Strategy answers the question: What should
the organization be doing? Strategy answers the question: What are the ends we seek and how
should we achieve them?
- Strategic Planning (1979). George Steiner. Free Press.
Strategy is a plan, a "how," a means of getting from here to there. Strategy is a pattern in actions
over time; for example, a company that regularly markets very expensive products is using a "high
end" strategy. Strategy is position; that is, it reflects decisions to offer particular products or services
in particular markets. Strategy is perspective, that is, vision and direction.
- The Rise and fall of Strategic Planning (1994). Henry Mintzberg. Basic Books.
There are many definitions for the term Strategy and when accumulating the cream of all definitions
we can identify three major aspects a strategy. Strategy should reflect following characteristics.
Strategy should provide widespread in their effect on the organization to which the strategy refers
Strategy should define the position of the organization relative to its environment
Strategy should have the capability to move the organization closer to its long-term goals
Strategy is more than a single decision .It is the total pattern of the decisions and actions that influence
the long-term direction of the business. Observing the total pattern of decisions gives an indication of
the actual strategic behavior
58

1.5 RELATIONSHIP ORIENTATION
Process of identifying and establishing, maintaining, enhancing, and when necessary terminating
relationships with customers and other stakeholders, at a profit, so that the objectives of all parties
involved are met, where this is done by a mutual giving and fulfillment of promises.
-
Gronroos (1997)
Relationship marketing refers to all marketing activities directed toward establishing, developing,
and maintaining successful relational exchanges.
-Morgan and Hunt (1994)
Relationship marketing is the process of identifying, developing, maintaining, and terminating

relational exchanges with the purpose of enhancing performance.
-
Robert w. palmatier (2008)
59

APPENDIX 05 STRATEGIC PLANNING FRAMEWORK
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