A.

Organization overview

Organization name
Hemas Manufacturing (Pvt) Ltd operates as a subsidiary of Hemas Holdings PLC and it is one of the
leading company in FMCG industry, Sri Lanka, who is providing a range of products to domestic
market and as well as to international market. They could be known as the leader in personal care
sector. Followings are their brands and it includes for babies and adults in hair care, skin care,
toiletries, fragrances and oral care.

Organization information

Most of these brands are playing a vital role in their relevant target market and especially Clogards,
Baby Cheramy and fems are playing the leader roles in their respective market. And other brands also
have a significant market share and contributing to company’s turnover significantly. Hemas
consumer brands success continues to be driven by its deep understanding of the Sri Lankan consumer
coupled with strong commitment to offering superior quality and value to consumer. As main
competitors of Hemas can be identified Unilever, Swedeshi & Darly Butler.

Specific background

Maintain and increase a company's market share by meeting consumer demand; not all products
aimed at all customers. Therefore, the definition of the reference market for a product is a crucial
element to consider from the beginning of the product development process. Quantitative market
research must be carried out at all stages of the design process, even before designing the product or
service, during product design and after marketing. Although product development is creative,
discipline requires a systematic approach to control the processes necessary for the launch of a new
product. The latest products generate additional revenue as the company can sell more to existing
customers, acquire new customers or enter new markets. Market dynamics, technology and
competition, have changed all market sectors virtually, making the development of new products one
of the most productive business activities. The enormous changes that continuously affect the
business have forced companies to innovate with higher speed, efficiency and quality. Therefore, the
development of new products has become one of the most complex and challenging commercial
functions. But companies must innovate to survive. The strength of innovation reflected in numerous
studies that show that the leading companies in the sector spend approximately half of their sales on
products developed in the last five years.

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 B. Strategic audit
Micro factors

Suppliers * Machineries for production is mainly supplies by Japan and Europe. To source the fragrance and
relevant raw materials such as caps, spray pumps, bottles in required quality and quantity, company
has set up suppliers’ network in several countries such as India, Dubai, France, and China.
Organization *Performance oriented organization culture and mainly implemented the open door communication
Culture
policy. & Which has allocate resources for new product development & help to increase the
employees’ innovative ideas
Competitors *The main direct competitors of the Laydeez brand are Lady which manufacture by Swadeshi and
Secrets which is manufactured by international cosmetic (pvt) Ltd. & Both has the exactly same
number of product range and variants with some similarities.
Process *The procedures, mechanisms and flow of activities by which production is delivered are considered
as process in marketing mix. & Production process will meet the market demand for that certain
standards are set. Ensure the defect free production from Quality circle.
Resources *New machinery & equipment & high volume production & New technology & well trained human
capital

Macro factors

Political *Government Policies are continuously to the certain products of the Sri Lanka market. This will
affect the brand negatively. Government is not stable and company has to face the negative political
factors. Political policies affect exporting to other countries.
Economical *This lack growth in national economy is highly unfavorable for fragrances category since most of
the fragrances are imported as Sri Lanka does not have enough facilities to produce a high-quality
fragrance and just doing the assembling part.
Social * Women has the highest amount of population in Sri Lanka which is good for a lady’s fragrances
like Goya. & Cultural restrictions for the women are lowering day by day which is also a good sign.
And women are more concern about their look and hygiene as well.
Technological * Hemas fragrances category is in a process of upgrading the level of technology of its production
machineries, meanwhile new investments are being made for new efficient machineries. Currently
Hemas fragrances enjoying technological superiority over its fellow competitors in the local market.
Environmental *People nowadays more concern of the environment and relevant pressure groups such as
environment conservation societies and media give their full alert to any harmful activity to
environment.
Legal *Laydeez is conducting its business according to government regulations and following proper legal
procedures of the country in the event of doing its businesses. Also, cannot use other logos’ and even
the advertising should be adhered to the revel laws. All the legal stuff of Hemas is conducted by the
legal department in the head office.

SWOT analysis

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 Strength Now company has set up an ERP system in Welisara factory and its operation being monitored.
Further it is expected to extend this network to other small ware houses and connect local and
international suppliers to the company through the same network. This can be mentioned as
better approach in terms of supply chain Integration
Weakness Since direct customers are appointed by the company, they are bound to purchase and distribute
company products and they cannot sell or distribute similar products to the Hemas products. So
direct customers appointed by the company do not enjoy any bargaining power

Opportunities Women are more into education and they are keen to be success in their career as well. So that
they become very independent and good for ladies personal care brands as well because women
can buy their stuff with their own money.
Threats Current Economy of the country is unstable, so the investors are afraid to invest money to the
Market, this will be a major disadvantage for the brand in developing the products and
conducting research and developments.

In Sri Lankan fragrance market, there are number of fragrances

Five forces analysis
available. Some are fully imported products and those are not
To achieve the above mentioned objectives in Hemas, the management
competitors has
for been decide
Laydeez to new
since mostproduct
of themdevelopment
only caters from the
to high
fragrance product range to fulfill the existence niche market. Therefore
income levelfollowing
customersmarketing objectives
and available onlycan
in be identified
Modern the
trade.
new product development for the period of next three years.Laydeez brand direct competitors are Secrets and Lady Brands

Marketing objectives include increasing product awarenesswho caters

among to socio
targeted economic
consumers, classes information
providing as their target segment.
about product
Retail market
features, and reducing consumer resistance to buying the product pricesMas18
[CITATION are very similar
\l 1033 for allobjectives
]. These and therehave
are only
to be
very slight
SMART to be effective. Marketing objectives are mainly focused differences.
on achieving Noinplayer
3 areas is gaining the advantage of
a business.
price since when a fragrance is about customers do not care about

According to new product development Hemas in the first smallyear

margins as long as product is good. But the main advantage
Following organizational objectives can be identified
that Goya has is they provide discount to their direct customers
need to establish in the market, also revenue growth can’t be expect in Hemas
C. Objectives
within the introduction year then gradually introduce to thewhich are groceries,
market, SMMT lifestyle
Enrich customer and MT via
regular basis to push their
innovation
in the first year product introduction product
should be aligned withand through that Goya could be able to make their
 Establish in the market –First year Market leader in FMCG category
marketing campaign also develop the manufacturing products
capacities and available in every market. But Lady and Secrets do not
 Increase the sale by 15% - Second
distributing year have that kind
channels. Hence, when start the decide marketing of a capacity and channel.
Vision

activities revenue To be enhance human lives

Increasegrowth can
the total be expected
revenue by 20%-in year two, further
within third Thrid
year year
Hemas able to reach the expected sales growth Mission
due to within that three year economic scale of the organization, Enriching customers lives & create a good value for
brand familiar in the market and customer perception will help to customers.
meet the organizational desired targets.

D. Strategic options According to Ansoof’s matrix Hemas able to take the

decisions regarding the product decisions. Currently
3 they are in the Fragrance market can be recommend
to Market penetration in here can be taken
following product decisions of Laydeez.
 Ansoff Grwoth matrix

Laydeez

Product life cycle

When consider about PLC Laydeez mainly belong to Intro category. As Value chain analysis
per the recommendation of Marketing strategy & tactics. Hemas able to
take the growth stage within the expected time period.
IT Infrastructures, Government Infrastructures facilities , legal framework for Fragrances
Infrastructures
& Financial support from banks.
Secondary activities

Training & development, enhance employees knowledge, skill & attitude, Change management
HRM
Strategies for new product developments.

Technology ERP Systems, SAP Hana for Hemas ,Q4 Plant maintenance software

Procurement Supply chain management, ordering process for new machineries

Inbound Logistics Operations Outbound Logistics Sales /Marketing Services

Local suppliers’ In Hemas welisara Hemas distributes its Products are available Will take sellers, sales
Primary activities

island wide & plant starts the products through 60 in over 8000 sales representatives &
materials will be productions & store agencies in island outlets island wide. customer feedback for
imported. in the factory wide. Sponsorships & PR improvement also
Machinery mainly premises. program will be social media.
supplying from conducted. Also
Japan & Europe. ATL & BTL

Resources, Capabilities and core competanices analysis for new product deveopment

Classification resources in Hemas PLC

General resources Financial resources Physical resources Human resources

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Brand name & Image 3 billion profit 29 billion Manufacturing plant able to Skilled full employees
Organization in Maturity equity for 2018-2019 period. mass productions. Well educated executive &
 Demographic characteristics

 Age approximately 18 - 35 Product  Product should come up with really nice and
 Women who are educated and working pleasant fragrance.
hard for their achievements.  Packaging and bottle should give the luxury look.
 Female who earns a descent amount of  Not much of variants as currently Ladeez has few
money or females who live in middle and variants with high quality would be ideal.
high-income families.  35ml and 50 ml size would be ideal.
 Tagline should change from romance to smartest
Psychographic characteristics
fragrance which goes towards success.
 Females who are working hard for their Price  Price can be increased to around Rs 1,000 –
achievements 1,2000.
When consider about the Hemas product portfolio, the newly
 Females who are seeking others attention  No discounted prices since it is going to be
expected product of Layddez most suitable as Question marks due to
by being the smartest. positioned as a luxury brand.
this newly introduce product will having low market share due to
Place  Product should be given to the consumers through
 Females who like to consume branded most of products are available in the market also this product mainly
SMMT, Modern trade and luxury shops.
things. belong to FMCG category. Therefore can’t be expected highest
Groceries and very small shops should be
 Benefit sought market share in the introducing stage further this product able to
removed.
 Who are seeking to buy a branded product increase the growth rate. Due to Hemas currently having god
 Should go for international market.
to get the attraction of others. distribution & economic scale when production. Also product quality
 Selling the items through the website and
and other features will be help to achieve the market growth for
delivering the products to their working place or
Laydeez.
As per the shell direction FMCG fragrance houses should be available.
Positioning Map TV advertising will be play major role to
category is most prospective therefore Hemas can Promotion

takes a decisions for double the product range reposition the product.

because currently they have a product of Goya.  Banded packs and buy one get one free offers
Which is fragrance brand, when developing needs to be removed.
Laydeez as new product development, the Hemas  Unnecessary hoarding should be removed.
management should consider to cater the niche  More focus on BTL activations such as
market people who expect good fragrance brand sponsoring for events such as luxury parties, Ms.
in affordable price. Sri Lanka, conferences, etc.
 The way Facebook page is maintained should be
Positioning Strategy changed.
New Ladeez brand needs to be a fragrance which has luxury qualities andwhich gives
Direct the market
marketing canatbe
a reasonable price
done through in
brochures,
order to convert brand’s old consumers as well. But the price is higher than the emails,
current.etc.
Simply brand is consisted with love
 Removing
and romance in a modern way. Females who loves to be the smartest and best in today’s context
normal will buyadvertising
press the product and
as a more
smartest and high-quality fragrance. focus on advertising on specific magazines.

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 D. Tactics 4P’s

Digital Marketing plan

Digital marketing is something which cannot be

forgotten nowadays because of the technological
development and higher competition in the market.

Digital Marketing objectives Strategies

Situational analysis In order to position the product among the target
 Increasing the number of Facebook likes to
 High rate of technological development.
segment
Brand need to come with relevant digital marketing
activation
150,000 within three-year period.
 Decreasing the credibility of For
tools. socialthismedia
new platforms.
segment Facebook, Instagram and
 Increase the Instagram followers to 5,000 Activation for consumers
 Politically there can be restrictions
YouTube for digital
platforms can and
be social
used to position the
within three-year period.
platforms since peopleproduct.  Especially
are using itMT
in a&bad way. activation
SMMT
Facebook can be used in a very
 Increase the organic reach rather sponsored
 More number of peoplecreative engage manner
inTown
socialtostorming
platform
engage the
andpeople
brand with the posts of
activations
reach in every month.
the page
can get engaged them with rather
the brand juts
as
Cinema uploading
sampling posts daily basis. Things
well.
 Increase the customer engagement as much
 Legally there are no much such asof‘’tips
barriersto beto smartest
sponsoring do eventswoman’’ can be uploaded
the marketing
as possible with 100% reply rate within the
part in digital platform.to Facebook page and things that will be uploaded
period. should be things that go with current situations to
Budgets make people to share the content and make come
As the initial stage for Facebook for monthly
comments and tagmanagement around
others. Also, nice videos which
40,000 and for monthly advertising
shows how 30,000
to do with 15 posts
a make-up for shorter
within a period of
month would be ideal. 1,100,000
time, annual
how to budgets would
have a nice hairbestyle
enough
can be uploaded to
as the initial stage. Facebook page as well. Instagram page also can be

Activation used to upload photos and short videos.

Advertisements
Digital media activation can be can betouploaded
conducted in order to YouTube channel.
engage people
with the page. As an example,Also,asking
YouTube
someadvertising
questions can be done specially in
regarding
some inspirational women anddays suchgift
luxury as women’s day,
vouchers or Valentine’s
own products Day, etc.
can be given to winners. Or else asking people to tell their
F. Control and
inspirational story and winners can be given gifts.
Measurement

Marketing budget for next three years

Values in Million(Rs)
Action/ Tactics 2020 2021 2022
ATL 50 70 40
BTL 20 30 30
TTL 10 20 15
Digital 25 30 35 6
Total 105 130 120
 To identify effectiveness of each marketing Sales KPI
strategies and tactics it need to have proper
 Sales revenue - The total LKR value of sales during the
performance measurements. For Ladeez perfume
current time period. A positive sales growth percentage over
following KPI can be identified.
the specified time period indicates growth of sales revenue.

Marketing KPI  Sales target coverage – Employee individual sales target

coverage during the accounting period.
 Lead generation – Identification of prospect
generation via marketing campaigns.  Sales portfolio contribution – Each Ladeez perfume

 Market share growth – Percentage growth of contribution towards total sales revenue. Using BCG matrix

market share than the previous year. identify the each service performance levels.

 Customer satisfaction – Customers’ overall  Sales conversion cost - The costs associated with marketing,
satisfaction towards service offerings. promotions & free gifts coupons etc. Try to decrease
Identification of loyal customer base/ conversion cost while increasing the sales revenue.
advocates towards service.
 Customer retention ratio - Identify customer Online and social media KPI
retention changes and take the necessary
 Conversion ratio – New customer conversions via social
actions.
media campaigns with regarding impressions and reach.
 Employee learning curve – Productivity
 List subscribers - The number of people who subscribed to
incensement of employee with the time basis.
an email list maintained by your marketing division. Yearly
basis increments shows positive growth.
 E-mail open rate - The percentage of list subscribers that
Activation type How to measure the effectiveness open an email message.
 Click through rate (CTR) - The percentage of list
Town storming Number of people who will be
subscribers that click links included in email message. High
activities engaged
CTR encourage to more conversions.

MT and SMMT Number of customers who will buy  Pay per Click (PPC) / Cost per View (CPV) – The amount

activities products and engaged in the that need to pay for each click or video view.

activities, ROI.  Organic results performance – In the search results pages if

the website and other company related links come in first
Sponsoring for Positive feedback and PR. organic results page, it shows better performance of
events keywords

Cinema Increase in the market share and

sampling number of sales in near future