Brand Architecture: Cargill's Ceylon Plc

 

A little bit of history

Cargill's (Ceylon) PLC is a Sri Lankan Retail, FMCG, Banking and Restaurant company which is listed on the Colombo Stock Exchange. The history of Cargill's Ceylon dates back to 1844 when British businessman William Milne started ‘Milne & Company' as a general trader of goods with branches in Kandy and Galle. In 1850 Milne was joined by his friend, David Sime Cargill, and the firm became ‘Milne, Cargill & Co

The land for the iconic Cargill's building in the center of Colombo Fort was acquired by Cargill's in 1896, while D.S. Cargill was the Chairman. The construction of the current Cargill's building commenced in 1902, it was designed by Edward Skinner, built by Walker Sons and Company and completed in 1906. The company was bought by Sir Chittampalam A. Gardiner and the business was incorporated as a Public limited company on 1 March 1946

Modern Cargill's

In 1981 Ceylon Theatres acquired a controlling interest in the company and Albert A. Page was appointed the Managing Director. Page went on to become the Chairman of Cargill's on 26 November 1982.

Under the new management, Cargill's explored the potential of innovating on its trading legacy. As a result, in 1983 Cargill's established the first supermarket chain in Sri Lanka with the opening of its first Cargill's Food City outlet at Staple Street.

Cargill's ventured into the production of processed meats in 1993 when the Company invested in its first manufacturing facility, Cargill's Quality Foods, in Mattakkuliya. In 1996 Cargill's acquired the franchise license for KFC and innovated on its secret recipe to deliver products that suited the local palate.

This analysis has taken into account only the major sectors the company is operating in. There are other brands in sectors which haven't taken off and as such those brands are not household names yet.

Cargill's Brand Architecture

Major sectors of Cargill's Ceylon Plc are;

1] Modern Retail

2] Fast Moving Consumer Goods (FMCG) 

3] International Quick Service Restaurant franchising 

4] Banking and Financial Services

Cargill's have numerous brands in each of the above sectors. Almost all the brands in these sectors are popular and highly visible in those sectors.

Modern Retail

Following are the Cargill's Ceylon Plc brands associated with modern retail sector

Cargill's Food City is the flagship of the company's modern retail operations with branches in major cities and towns island wide. 

Cargill's Food City Express are the smaller convenience stores of the Food City retail brand. Most smaller towns and important way-points have Express outlets.

Cargill's Food Hall is the latest retail concept of Cargill's and as per their official communications, it is the very first gourmet supermarket in SL. Food Hall offers a more refined supermarket experience compared to the standard Cargill's Food City.

Cargill's Square is the shopping mall concept of Cargill's. There are two Cargill's Square malls at present with one in Jaffna and the other in Gampaha. Consumers have access to a Cargill's Food City supermarket, a KFC restaurant, a three-screen Cineplex, food court, bank, a range of shops and a car park under one roof.

Cargill's Book City is the books and stationary retail brand of Cargill's

Cargill's modern retail uses monolithic brand architecture. This is also called the branded house architecture with the parent brand making a very strong presence and having a huge influence on each brand. Success of each brand is tied to the success of the Cargill's corporate brand.

Fast Moving Consumer Goods (FMCG) 

Kist - Sauces, Jams, cordials, fruit juices confectionary, instant noodles and table water brand

Kotmale - Dairy products and take-home ice creams and frozen desserts

Magic - Magic is an impulse ice cream brand. (impulse ice cream are single-serve ice creams purchased for immediate consumption). There are products for mass-market and premium segments. Magic is the mass-market brand and Magic Heavenly is the premium brand. Heavenly has small tubs targeted as single serve for a small group.

Goldi - Mass market processed meat products brand.

Sam's - Mass market processed meat products brand targeted at children

Cargill's Finest - Premium processed meat products brand

Cargill's FMCG sector uses product brand architecture. This is also called the house of brands architecture with the parent brand largely absent from the branding and packaging. Success of each brand is independent of the corporate brand. Brand Managers and Marketing Managers have more freedom to chart their own strategies for the growth of each brand under FMCG sector.

International quick service restaurant franchising

Cargill's are the franchise holder for KFC and TGI Friday quick service restaurant chains. Branding strategy is fixed by the franchise agreements and Cargill's Ceylon Plc being the franchisee does not have any control over branding strategy. 

As such the brand architecture automatically becomes product brand architecture (house of brands architecture) with the restaurant branding strategy decided by the franchisor and franchisee brand (Cargill's) absent from the branding and marketing communications.

Banking and Financial Services

Cargill's Bank uses uses monolithic brand architecture. This is also called the branded house architecture with the parent brand making a very strong presence and having a huge influence the brand. Success of the brand is tied to the success of the Cargill's corporate brand.