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Page 1: Hemas is One of Sri Lanka

EXECUTIVE SUMMARY.

As the in attendance marketing manager of Hemas pvt ltd the Chief Executive Officer of the company has asked me to frontward a marketing plan on the topic of the launch of the new product.

In this marketing plan I have mentioned all the main areas that I have paid my interest to before the launch of this product which I think is going to be one of the main money-making reserves that the company has done in the earlier period and in the nearby times gone by.

I have in brief explained the atmosphere information of the association, nature of the group, nature of the product. I have also done a SWOT analysis and a BCG portfolio analysis of the in attendance goods of the company.

Ecological analysis on the topic of the launch of the new product is also finished. The lay down marketing objectives for the product is undoubtedly brought forward in this marketing plan. A marketing research has been done to examine the surroundings. PLC of the selected product is explained. Segmentation, targeting and positioning of the market and also a very apparent competitor analysis of the outstanding competitors and the share market is brought ahead.

Strategies that I’m going to agree to in array to achieve the marketing objectives are evidently brought ahead. The marketing mix which is an important section is also thoroughly explained.

Marketing mix. Product. Price. Place / distribution. Promotion.

Budget distribution for the future year and also the action plan is finished at the closing stages of the marketing plan along with the control and evaluations which is suggested.

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Hemas is one of Sri Lanka's Top-10 conglomerates, with a focus on five key sectors –

FMCG, Healthcare, Transportation, Leisure and Strategic Investments.

We are a publicly listed company with 1400 employees. Our products and services touch the lives of millions of people from new-born babies to large international businesses.

Hemas strives to enrich people's lives by delivering excellent and innovative products and services.

Hemas is a diversified conglomerate with 20 active subsidiaries organized into five key sectors - FMCG, Healthcare, Transportation, Leisure and Strategic Investments.  The Group, which commenced operations in 1948, is listed on the Colombo Stock Exchange.  Consolidated revenues in 2006-2007 were $108 million (Rs. 11,778 million) and profits amounted to $9 million (Rs. 1006 million).  Shareholder funds for the year were $48 million (Rs. 5,274 million).

The Group was founded by Sheikh Hasannally Esufally (MBE) as a pharmaceuticals and trading enterprise.  Over the ensuing decades the organisation has transformed itself into one of Sri Lanka's largest and most respected firms.  The Group has several recognisable brands including Baby Cheramy, Clogard, and ProSport. 

Over the last decade the Group has been singularly focused on growth - a strategy that enabled us to emerge as leaders in several of the sectors that we are involved in. As we look to the future we are committed in our determination to widen our product and service range, expand into the international marketplace, attract the best minds, and to improve our processes. 

Our performance is guided by our core values - our passion for people, an obsession with quality, our drive for innovation and our concern for our community - values that are our moral compass as we progress on new and exciting business ventures and ideas.

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Sectors:

FMCG - This is the largest sector at Hemas.  FMCG is involved in the development, manufacture, marketing and distribution of a vast range of consumer products, most of which are household names. 

Healthcare - Hemas has been involved in the healthcare sector for over 60 years and currently represents over 30 multinational companies from around the world.

Leisure - Diethelm Travel Sri Lanka (formally known as Hemtours), Hemas' destination management company is one of Sri Lanka's leading tour operators, with long term relationships with many leading travel companies in Europe and Asia.  Hemas' three hotels are popular with tourists, and are located at strategic tourist destinations.

Transportation - The transportation sector offers a diverse range of services.  It has the largest market share in Sri Lanka for airline representation, and is also involved in travel retailing, freight management, and courier services.

Strategic Investments - Hemas foray into the power generation sector through its investment in Heladhanavi, a power plant has proved to be successful.  The Group is now exploring opportunities in the area of mini-hydro power generation.

Hemas is involved in the property sector through Hemas House, which is owned and managed by Hemas Developments.  Hemas House is a multi-storey office building with modern facilities.

Our mission..

We are committed to delivering to our shareholders the best ever returns a listed company has given over the first seven years of listing. For our employees, we are committed to creating exciting new opportunities and a rising share of wealth. For our business partners, we will be a winner to grow with. To our customers, from all quarters, we will deliver excellence… every time. We are responsible corporate citizen close to the lives of the community. To the state, we are a future winner with the nation at heart.

Our Core Values

Passion for Customers Obsession for Performance Driven by Innovation Concern for People

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StrengthStrength of the company was well established in everyway. i.e Financially, Intelligent personalities and with a vision.

WeaknessWeakness skilled man power, transport facilities available and a communication net work to have dealt with the agents and the customers all over the country.

OpportunitiesOpportunities as it were the beginning of a new era. There were number of opportunities to commence. People were being changed from their simple life to a somewhat complicated life.

ThreatsThreats locations for industrial and business premises and security measures, issues related to the environment and some legal boundaries which had been implemented by the then governments

BCG / portfolio analysis.Portfolio (finance)

In finance, a portfolio is a collection of investments held by an institution or a private individual. In building up an investment portfolio a financial institution will typically conduct its own investment analysis, whilst a private individual may make use of the services of a financial advisor or a financial institution which offers portfolio management services.

Holding a portfolio is part of an investment and risk-limiting strategy called diversification. By owning several assets, certain types of risk (in particular specific risk) can be reduced. The assets in the portfolio could include stocks, bonds, options, warrants, gold certificates, real estate, futures contracts, production facilities, or any other item that is expected to retain its value.

The model assumes that investors are risk averse, meaning that given two assets that offer the same expected return, investors will prefer the less risky one. Thus, an investor will take on increased risk only if compensated by higher expected returns. Conversely, an investor who wants higher returns must accept more risk. The exact trade-off will differ by investor based on individual risk aversion characteristics. The implication is that a rational investor will not invest in a portfolio if a second portfolio exists with a more favorable risk-return profile – i.e., if for that level of risk an alternative portfolio exists which has better expected returns.

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PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro environmental factors used in the environmental scanning component of strategic management. It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.

The growing importance of environmental or ecological factors in the first decade of the 21st century have given rise to green business and encouraged widespread use of an updated version of the PEST framework. STEER analysis systematically considers Socio-cultural, Technological, Economic, Ecological, and Regulatory factors.

Political and legal forces. Monetary and fiscal policies Social legislation and regulations. Government relationships with individual industries. Legislation specifically related to marketing. The provision of information and the purchase of products

Stars Question mark

Cash cows Dogs

Hig

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High LowRelative market share

Mar

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wth

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Social and cultural forces. Marketers are faced with changing social cultural patterns, life styles, social

values and beliefs. Changes that have significant marketing implications:

Emphasis on quality of life. Changing gender roles. Attitudes towards health, nutrition, and well being Impulse buying Desire of convenience and a premium on time

Technology factors:

Include ecological and environmental aspects and can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Technological factors look at elements such as R&D activity, automation, technology incentives and the rate of technological change.

Modern technology is used to produce all our products and services We are handling web sites for providing information to our consumers

3). About the service that you are going to select for the plan.

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Prosport Herbal Hair Gel.

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This unique, 100% natural gel gives hair extra body and texture. Prosport Herbal Hair Gel is actually good for your hair, unlike commercial gels that contain alcohol and plastics. Use it daily for contoured smoothness, sleek styles, or powerful hold.

No artificial ingredients 100% natural

Certified organic aloe vera as the number one ingredient

No animal testing

Contains no parabens, chemical additives, or synthetic preservatives.

Complete Ingredients:

Organic Aloe Vera Leaf Juice, Organic Sugar-Cane Ethanol,

d-Panthenol (pro-vitamin B5),

Organic Rosehip Seed Oil,

Carageenan Gum,

Non-GMO Xanthan Gum,

Organic Horsetail Extract,

Organic Nettle Extract,

Organic Burdock Extract,

Organic Rosemary Extract,

Organic Sage Extract,

Organic Geranium Essential Oil,

Peru Balsam Essential Oil,

Proprietary Blend of Organic Essential oils

Directions: Scrunch or slick into wet hair, depending on the look you are seeking. Either let dry naturally or use a blow dryer with a diffuser for a softer look.

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4). Marketing objectives.

SMART..

1. Specific: Not vague statements.

2. Measurable: Quantitative and verifiable

3. Agreed: With those concern

4. Realistic: and achievable.

5. Time related: to be achieved with in a specific period of time.

5). Marketing research.

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6). PLC of the selected product.

The product life cycle goes through many phases, involves many professional disciplines, and requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures; whereas product lifecycle management (PLM) has more to do with managing descriptions and properties of a product through its development and useful life, mainly from a business/engineering point of view. To say that a product has a life cycle is to assert four things: 1) that products have a limited life, 2) product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller, 3) profits rise and fall at different stages of product life cycle, and 4) products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life cycle stage.

The different stages in a product life cycle are:

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1. Market introduction stage

cost high sales volume low no/little competition - competitive manufacturers watch for

acceptance/segment growth losses demand has to be created customers have to be prompted to try the product Profits are non existent. No awareness. Large amounts of advertising. The most critical stage.

2. Growth stage

costs reduced due to economies of scale sales volume increases significantly profitability public awareness competition begins to increase with a few new players in establishing

market prices to maximize market share Trial of the product. Increase in distribution. Competitors enter the market. Profits increase

3. Mature stage

Costs are very low as you are well established in market & no need for publicity.

sales volume peaks increase in competitive offerings prices tend to drop due to the proliferation of competing products brand differentiation, feature diversification, as each player seeks to

differentiate from competition with "how much product" is offered Industrial profits go down

4. Saturation and decline stage

costs become counter-optimal sales volume decline or stabilize prices, profitability diminish profit becomes more a challenge of production/distribution efficiency than

increased sales

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7). Segmentation, targeting and positioning.

A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. A true market segment meets all of the following criteria: it is distinct from other segments (heterogeneity across segments), it is homogeneous within the segment (exhibits common attributes); it responds similarly to a market stimulus, and it can be reached by a market intervention.

Market segmentation is the process of classifying a market into distinct subsets (segments) that behave in similar ways or have similar needs. The segmentation process in itself consists of segment identification, segment characterization, segment evaluation and target segment selection. If each segment is fairly homogeneous in its needs and attitudes, it is likely to respond similarly to a given marketing strategy. That is, they are likely to have similar feelings and ideas about a marketing mix comprising a given product or service, sold at a given price, and distributed and promoted in a certain way.

Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private sector. Generally segmentation is conducted using demographic, geographic, attitudinal or behavioral data. Small segments are often termed niche markets or specialty markets. However, all segments fall into either consumer or industrial markets. Although industrial market segmentation is quite different from consumer market segmentation, both have similar objectives.

The process of segmentation is distinct from targeting (choosing which segments to address) and positioning (designing an appropriate marketing mix for each segment). The overall intent is to identify groups of similar customers and potential customers; to prioritize the groups to address; to understand their behaviour; and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment. Revenues are thus improved.

Improved segmentation can lead to significantly improved marketing effectiveness. Distinct segments can have different industry structures and thus have higher or lower

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attractiveness (Porter). With the right segmentation, the right lists can be purchased, advertising results can be improved and customer satisfaction can be increased.

Successful segmentation requires the following

homogeneity within the segment heterogeneity between segments segments are measurable and identifiable segments are stable over time segments are accessible and actionable target segment is large enough to be profitable

Variables Used for Segmentation.

Geographic variables

Region of the world or country, East, West, South, North, Central, coastal, hilly, etc.

Country size/country size: Metropolitan Cities, small cities, towns. Density of Area Urban, Semi-urban, Rural. Climate Hot, Cold, Humid, Rainy.

Demographic variables

age gender Male and Female family size family life cycle Education Primary, High School, Secondary, College, Universities. income occupation socioeconomic status religion nationality/race (ethnic marketing) language

Psychographic variables

personality life style value attitude

Behavioral variables

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benefit sought product usage rate brand loyalty product end use readiness-to-buy stage decision making unit profitability income status

Geographic – International and local customers.

Psychographic – High class and upper middle class.

Behavioral – People who are need of a vehicle.

Targeting is to make a thing or group of things a target, to select it or them to be acted upon.

Targeting (warfare) , to select objects or installations to be attacked, taken, or destroyed

Targeting (politics) , to determine where to spend the resources of time, money, manpower and attention when campaigning for election

Targeting (advertising) , to select a demographic or other group of people to advertise to, and create advertisements appropriately

Targeting pods , in warfare Targeting tower , a radio frequency antenna Behavioral targeting , in marketing Geo targeting , in internet marketing Geographic targeting , in geography Inflation targeting , in economics

Positioning.

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In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. It is the 'relative competitive comparison' their product occupies in a given market as perceived by the target market.

Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.

De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, in the collective minds of the target market.

The original work on Positioning was consumer marketing oriented, and was not as much focused on the question relativity to competitive products as much as it was focused on cutting through the ambient "noise" and establishing a moment of real contact with the intended recipient. In the classic example of Avis claiming "No.2, We Try Harder", the point was to say something so shocking (it was by the standards of the day) that it cleared space in your brain and made you forget all about who was #1, and not to make some philosophical point about being "hungry" for business.

The growth of high-tech marketing may have had much to do with the shift in definition towards competitive positioning.

High price

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High quality.

8). Competitor analysis.

9). Strategies that you are going to adopt in order to achieve the set marketing objectives with the reasons for selecting the particular strategy.

Product – 1. branding 2. packaging 3. USP 4. quality 5. product line

Pricing –strategies and factors effected when selecting a strategy.

Budget.Estimated sales 12/31/2008   100,000,000

Transportation 2,500,000  

Administration 8,000,000  

Fuel and others 10,000,000  

Promotions 12,000,000  

Building cost 3,600,000  

Other 2,500,000  

Total estimated Expenses   (38,600,000)

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Total Estimated Sales Income   61,400,000

Action plan.

  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Marketing research X X X     X   X     X X

Service introduce.X X X                  

Advertising X X X X X X X X X X X X

Direct marketing X X X X X X X X X X X X

Sales promotion X X                    

Distribution – selecting the proper intermediary, intensive/ selective/ exclusive distribution

Promotion The Prosport hair gel will be advertised on these TV channels..

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The Prosport hair gel will be advertised on these newspapers.

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Below the line Billboards. Posters. Banners. Brochures. Hand bills. Celebrities / Brand Ambassadors.

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