LONDON SCHOOL OF COMMERCE COLOMBO CAMPUS SRI LANKA MBA FOR EXECUTIVES
MODULE ASSIGNMENT: ASSIGNMENT: Marketing Marketin g Manageent Manage ent
St!"ent Nae
Lakna #eerak$$n
St!"ent Regi%trati$n N$&
''('CHHCHH)()*
M$"!+e Le,t!rer
Mr&Anan" #a+%er
M$"!+e T!t$r
M%& Ni+!%-a Ga++age
Date S!.itte"
'/t- Ma0 (')1
T$ta+ #$r" C$!nt
1'*' 2$r"%
Executive Summary Harischandra is a seventy years renowned brand name for the natural and nutritious products. The profit generated for year 2014 is hundred and seventy two million seven hundred and twenty seven rupees. Furthermore, the company is dealing with products such as soaps, coffee, noodles, gingelly rolls, coconut vinegar, instant products, flour, papadam, picles and ithul tricle. The products and product range is basically stic in to the identity of !ri "anan culture.#urrently, culture.#urrently, Harischandra is the maret leader for noodles, coffee, uraan flour, ulundu flour and has a satisfactory maret share for rice flour, laundry soap and blue washing soap$%nnual &eport, 2014 ,p '(.)n this report the fuel and a nd lubricant products are not consider in to the account which belongs to Harischndra*ills distribution distribution "td. +oodles are very popular product among the ids in !ri "ana. ut more than Harischandra, *aggie and -rima havegain more attraction of youth and woring people because of its shape, sie, and physical structure and pacs sie. #onsidering the time factor, mothers coo instant noodles which have mini pacs for their children to eat in the school. However, busy people are also going for competitor/s noodles products to save their time. hen considering about current situation, people are paying more attention on the healthy and fast coo products due to their busy bus y life styles. Therefore, it is a solution to introduce instant rice noodles which completes the balance diet reuirements and suits to busy life styles. Further, Harischandra has good reputation of giving natural and nutrition food products over the seven decades of period and also most of the competitors are manufacturing the wheat flour nood les and it is a deviation to !ri ! ri "anan life style. !ri "anan/s are used to have rice and curry for all three meals. Hence, developing a product which suits to customer epectation would h elp to capture high maret share by targeting people who have busy life styles including university students and health co nscious people. oring oring women are targeted as mother will select the foods for their children and other family members. %dditionally, the pacaging sies are plann ed to be changed to the scale of one person, two people, four people and si people. The mareting campaign is proposed to develop based on cricet and select 3umar !angaara as a popular cricet star to do the promotions campaign. ther than that, scratch and win offers, *oney bac offers and !ponsor for for school ui and inter school school cricet matches can mae the 1
Executive Summary Harischandra is a seventy years renowned brand name for the natural and nutritious products. The profit generated for year 2014 is hundred and seventy two million seven hundred and twenty seven rupees. Furthermore, the company is dealing with products such as soaps, coffee, noodles, gingelly rolls, coconut vinegar, instant products, flour, papadam, picles and ithul tricle. The products and product range is basically stic in to the identity of !ri "anan culture.#urrently, culture.#urrently, Harischandra is the maret leader for noodles, coffee, uraan flour, ulundu flour and has a satisfactory maret share for rice flour, laundry soap and blue washing soap$%nnual &eport, 2014 ,p '(.)n this report the fuel and a nd lubricant products are not consider in to the account which belongs to Harischndra*ills distribution distribution "td. +oodles are very popular product among the ids in !ri "ana. ut more than Harischandra, *aggie and -rima havegain more attraction of youth and woring people because of its shape, sie, and physical structure and pacs sie. #onsidering the time factor, mothers coo instant noodles which have mini pacs for their children to eat in the school. However, busy people are also going for competitor/s noodles products to save their time. hen considering about current situation, people are paying more attention on the healthy and fast coo products due to their busy bus y life styles. Therefore, it is a solution to introduce instant rice noodles which completes the balance diet reuirements and suits to busy life styles. Further, Harischandra has good reputation of giving natural and nutrition food products over the seven decades of period and also most of the competitors are manufacturing the wheat flour nood les and it is a deviation to !ri ! ri "anan life style. !ri "anan/s are used to have rice and curry for all three meals. Hence, developing a product which suits to customer epectation would h elp to capture high maret share by targeting people who have busy life styles including university students and health co nscious people. oring oring women are targeted as mother will select the foods for their children and other family members. %dditionally, the pacaging sies are plann ed to be changed to the scale of one person, two people, four people and si people. The mareting campaign is proposed to develop based on cricet and select 3umar !angaara as a popular cricet star to do the promotions campaign. ther than that, scratch and win offers, *oney bac offers and !ponsor for for school ui and inter school school cricet matches can mae the 1
awareness of the product. The targeted segment is less price sensitive to obtain the uality product which suits to their busy life styles. styles. Therefore, 5premium6 is the pricing strategy which creates company to provide different pricing strategies.Harischandra +oodles products are easily can find in traditional groceries and supermarets. The estimated budget for the implementation is three million million rupees. The epectation is to achieve twenty twenty five percent of maret share for the product within three years of launch.
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Table of Contents No.
Title
Page No.
1.0 )ntroduction................................................................................................................................' 2.0 !ituational %nalysis...................................................................................................................7 2.1 )nternal 8nvironment.............................................................................................................7 2.2 8ternal 8nvironment............................................................................................................9 2.:. !T %nalysis..................................................................................................................1: 2.4 *areting opportunity.........................................................................................................14 :.0 *areting b;ectives...............................................................................................................1' 4.0. *areting !trategy.................................................................................................................1' 4.1 *aret !egmentation...........................................................................................................1' 4.2. Target *aret......................................................................................................................17 4.:.
List Of Tables No.
Title
Page No.
Table 2.1?arriers to entry...............................................................................................................4 Table 2.2?&ivalries for products.......................................................................................................7 Table 4.1? *aret !egmentation@@@@@@@@@@@@@@@@@@@@@@@@@17 Table 7.1? *areting %ction -lan@@@@@@@@@@@@@@@@@@@@@@@@..24
:
List Of Figures No.
Title
Page No.
Figure 2.1? -roduct "ife #ycle(otha, 2012(..................................................................................= Figure '.? -roduct "ife #ycle@@@@@@@@@@@@@@@@@@@@@@@@@...19 Figure '.2?Aistribution channel for Harischandra noodles@@@@@@@@@@@@@@@20 Figure '.:? -roduct %dvertisement@@@@@@@@@@@@@@@@@@@@@@@@2: Figure 7.1?*areting udget@@@@@@@@@@@@@@@@@@@@@@@@@.@24
4
1. !ntro"uction 5Harischandra6 name was born over seventy years ago at the down south area as a house hold brand name. )t is a renowned name for the natural and nutritious products over seven decades in customers/ mind. The profit generated for year 2014 is hundred and seventy two million seven hundred and twenty seven rupees. Furthermore, the company is dealing with products such as soaps, coffee, noodles, gingerly rolls, coconut vinegar, instant products, flour, papadam, picles and ithul tricle. The products and product range is basically stic in to the identity of !ri "anan culture. #urrently, the company is the maret leader for noodles, coffee, uraan flour, ulundu flour and has a satisfactory maret share for rice flour, laundry soap and blue washing soap $%nnual &eport, 2014,p '(. )n this report the fuel and lubricant products are not considered in to the account which belongs to Harischandra *ills distribution "td. hen considering about the buying behavior of customers, it shows that most of the young people and young adults are not much aware with the Harischandra product range. ecause all the mareting tools, identity of the product and product range is basically focuses on adults. Therefore, introduce a product which is targeting the teenagers and young people would mae more profits to the organiation. These days/ people are paying more attention on the healthy and fast coo products due to their busy life styles. Therefore, introducing instant rice noodles which completes the balance diet reuirements and suits to busy life style is an opportunity for Harischandra, because of their good reputation of giving natural and nutrition food products over the seven decades of period. Furthermore, most of the noodles manufacturers are dealing with the wheat flour but !ri "anan culture has designed to eat rice for all three meals. Hence, Harischandra products can get the opportunity of providing instant rice noodles which suits to !ri "anan culture.
'
#. Situational $nalysis !ituational analysis will critically review 5where are we now6 and the analysis will identify the company/s strengths weanesses, eternal opportunities and threats $
#B matri will categorie the company/s product reuirements in terms of impending cash reuirements and cash ependiture reuirements. #B *atri 'aret s)are
+ig)
+ig)
Lo*
Stars
,uestion mars
#ofee
-icles
Flour
-apadam
+oodles
3ithultreacle )nstant products !oaps
Lo*
Cas) co*s
-ogs
#oconut vinegar Bingelly &olls
'aret gro*t)
7
)n the short term basis coffee, flour, instant products and +oodles reuire a capital ependiture to maintain the maret position, but these products can generate high returns in the future. Harischandra is the only uraan flour manufacturer in !ri "ana. ith the time Cstars/ will become Ccash cows/ and Ccash cows/ can be used to finance the Cstarts/. -icles, papadam and ithul treacle are in the category of uestion mars. The instant products have the issue of competition among the rivals and they step down because of the easiness of the competitor/s product. Dnder the instant products Harischandra is providing string hopper flour $red, white( and it should mied with the hot water and the competitors product should mi with the normal water. Hence, customers are more prefer with the competitors product. *oreover, the product should develop to compete or should allow dying. #oconut vinegar, gingelly rolls and soaps are in the category of dogs. Harischandra is providing handmade gingelly rolls provided only to own two outlets and supermarets only. Therefore, sales are not at a considerable level. Pro"uct life cycle
=
Figure 2.1? -roduct "ife #ycle(otha, 2012( The #ompany is introduced in the year of 1>4: with the initial capital of twenty five thousand rupees. The activities conducted in the company was milling of rice, uraan and other grains. )nitial sales are used to epand the business by adding new premises and euipment. Browth stage has started in the year 1>'2 by epanding into various fields including the milling of coconut oil. !ales has been increased rapidly when the brand name get popular among the early ma;ority. )n this stage company has generated the improvement of profit development. )n year 1>9:, company has started to position in the maturity stage and in the same year it has listed in the #olombo stoc echange. #urrently, Harischandra mills -"# is in its stage of maturity for long span of time period. %dditionally, the company is the maret leader for noodles, coffee, uraan flour, ulundu flour and has a satisfactory maret share for rice flour, laundry soap and blue washing soap. #.# External Environment Porters five forces
arriers to entry 8ntry barrier is not so high, when it consider as individual product such as soaps, coffee, noodles, gingelly rolls, coconut vinegar, instant products, flour, papadam, picles and ithul
9
tricle. There are no special rules and regulations for the entry in to these marets. There is a high level of threat from new entrance of multinational companies. Table 2.1?arriers to entry Pro"uct
%arriers to entry
/eason
!oaps
*edium
The machines and considerable level of capital is reuired.
#offee
*edium
)t needs considerable capital to run in large scale. ut still enough suppliers can find to start a business.
+oodles
*edium
)t needs capital to invest for machines and staff.
Bingelly rolls
low
!mall scale, selfEemployed people are highly engage with this business.
#oconut vinegar
low
%s a selfEemployment, homemade coconut vinegar is prepared and can start with a less capital.
)nstant products
*edium
#onsiderable capital is reuired for machines and staff.
Flour
*edium
#onsiderable capital is reuired for machines.
-apadam
low
-icles
low
%s a selfEemployment, homemade picles are prepared and very less capital is reuired.
3ithul tricle
*edium
!uppliers are less compared to other product items.
argaining power of suppliers is high for products such as coffee, gingelly rolls, coconut products, instant products, flour, and ithul tricle. The reason for the high demanding of >
supplier is because of the low barriers to entry. Furthermore, because of the rivalry in the maret suppliers has more bargaining power. The threat from substitute is different for different products and for some of the products have no substitutes that eists. )n the current scenario the products such as soaps are more consumed by the adults, because of the influence of substitute such as face washes and body scrubs are more consumed by young people. !ri "anans basically use tea as a substitute for coffee and in some of the situations soft drins also count to the account as a substitute. Furthermore, +estea and +escafe are playing a prominent role in the maret as a substitute for coffee. !ri "anan/s basically depend on rice for all three meals but for the breafast and special occasions, people are more practiced in to use noodles or instant products which can use to mae string hoppers, hoppers, ulundu wade and thosei. Bingelly rolls are considered as a traditional sweetmeat for !ri "anans and sweetmeats lie mil toffee and pol toffee are playing the role of the substitute. ee honey and pol paney $coconut honey( are the !ri "anan substitute for 3ithul tricle. argaining power of customers is high for the products such as soaps, coffee, noodles, Bingelly rolls and picles. #ustomers have the variety of imported and local brands to select the most prominent and suitable product to consume. The main supplier for the final customer is retail super marets chains such as #argill/s food city, %rpico super centers and eels super marets. The rivalries among eisting firms are become strong in the p oint of individual product wise. Table 2.2?&ivalries for products !oaps
Hemas manufacturing $-vt.( "td., Dnilever !ri "ana,
10
#offee
+estle &aigam
"ana *areting
-"#,
!ervices
$-vt.(
"td.,
Dnilever liptonceylon ltd, Hansa #eyloncoffee $-vt.( "td., ayay mareting services $-vt.( "td, )sland coffee $-vt( "td. +oodles
+estlG
"ana
*A3
Food
-roduct
-"#, $-vt(
"td.,
-rima #eylon "imited, Aelmege Forsyth #o. "td., &aigam *areting !ervices $-vt.( "td.,
Bingelly rolls
+iado
Broup
Bingally
rollsE
of
#ompanies.
Harischandra
*ills
-"#,!amagi product, &isirasa sweets, Dma thalaarali #oconut vinegar
Thambapanni#ocos
$-v.t(
"td.,
#)#%gri
-roduce 8p. $-vt.( "td., "ana #anneries "td., #. A. de silva and sons -vt "td. )nstant products
-rima
#eylon
"imited,
%igam*areting
!ervices $-vt.( "td., #argills $#eylon( -"#, Aelmage Forsyth #o. "td., 8ast west foods, ayay mareting services$-vt.( "td., -lenty foods
Flour
$-vt.(
"td.
"ana #anneries "td., -rima #eylon "imited, &aigam *areting !ervices $-vt.( "td., *A3 food products $-vt.( "td.,%llicompany $-vt.( "td., !erendib flour mills $-vt.( "td., *# tit associates, #onvenience foods "ana $-vt.( "td. 11
-apadam
8lephant papadam co. $-vt.( "td., +iado Broup of #ompanies, %lli company $-vt.( "td., ayaymareting
-icles
services
$-vt.(
"td
Food $-vt.( "td, 8nrich Tea Food 8ports $-vt.(
"td.,"ana
#anneries
"td.,
8nrich Tea Food 8ports $-vt.( "td., "ana #anneries
"td.,#argills
$#eylon(
-"#,8dinborough products $-vt( "td., #" canneries $-vt.( "td., #eylon ithul institute $-vt.( "td. PESTEL $nalysis
The political scenario of !ri "ana is going through some changes and after the period of post war in !ri "ana. ecause of the power obtained by the political parties, politicians are interfering with the businesses in order to change the policies or to stop the operations. -olitically, ecological and environmental issues are impact to the mills which produce the coffee and flour. ther than that, Harischandra soap manufacturing factories also have the impact of that. ut when compared with the other entities in the country it is a very less amount of influence that effects to the Harischandra mills plc. The 8conomic factors are basically consisting with the income level of !ri "ana is growing fast and the country is having a growing BA- from year to year. )n the year 2012 country has a 7.: percent BA- growth rate and 201: it has a =.: percent growth rate $#entral an of !ri "ana 2014, p1(. Furthermore, in the year 2014 there is a 4.4 -ercent unemployment rate in the country.
12
%s a social factor, !ri "ana has a high literacy rate which is >'.7 percent and 0.9 percent population has increase during the period of 2012 to 201:. The life epectancy rate of the country is =' years which is close figure to the developed countries/ life epectancy span. #ountry has ':.9 percent total active participate labour force and uality of life style is increasing as the purchasing power is also increasing. -overty head count ratio is 12.9 percent and '0.2 percent of the total poor population in !ri "ana is less than 2' years of age $Aepartment of #ensus and statics 200>I2010( #urrently, the environmental factors have high impact on organiational actions. The importance of environmental policies is increasing and the sustainability practice has created the value inside the entity. 5Harischandra mills -"# is ;oined with the business and biodiversity platform to contribute to the conservation of bio diversity and natural resources of !ri "ana6 $Harischandra mills -"#, 201'(. The technology is a really important factor which leads the development of the products. )n Harischandra mills -"#, in every five years they change their vehicles and not only that, all the uality assurance and uality control people loo for the technological aspects of the business. *oreover, Huge amount has invested to eep upgrade the technological level in the business. %dditionally, all the machines are eep upgrading and they tae steps to train the staff with new euipment and machines. However, the amount and the commitment used for the research and development are not at a satisfactory level. %ll the manufacturing wors are conducted in the *atara district and now it/s not an issue of not locating in the capital of !ri "ana because southern highway is completely finished with its wor and transportation is not a big issue. "egal conditions have a high influence on the organiation/s operational scenario for the long term basis. !ri "ana has a very comple legal system which is highly mied with the several law systems. )n the recent period of time !ri "ana has many significant changes in its legal system which effect to the organiation/s behavior. %fter the introduction of legislations related to increase in minimum wages, age and disability discrimination, a greater reuirements for firms to recycle are directly impacts to the organiation/s operating process $!cribd , 201'( Furthermore, under the !ri "anan labour law it has clearly specify the age limits , woring hours , prohibition of child labour and industrial safety. These legislations have more impact with legal factors in the operations of Harischandra mills -"#. 1:
#.0. SOT $nalysis
Harischandra is a pioneer brand name of !ri "ana over the seven decades of time period. !ale of food products has increased by 1.' percent and operations profit has increased by '' percent comparing to lower input cost. !oap sales have increased by 1=.9 percent and that has resulted to :.= million rupees of profit. The emotional relationship with the customer for providing natural and nutrition products with the !ri "anan identity is a positive factor to company. #ustomer loyalty for the brand is directly bonded with the emotional factors which provide the brand loyalty. *oreover, the countryEwide strong distribution channel is wor as strength to the company. %ll the products are uniue to the organiation and wide product range such as soaps, instant products $string hoppers, uraan thosai mi, hopper mi, thosai mi(, coffee, Flour $rice flour, ulunduflour,uraan flour( , +oodles , -apdam, picles, gingelly rolls, ithul tricle and coconut vinegar maes customer more convenient to stay with Harischandra name. rganiation runs without a single loan issued from a ban or financial institute. %ll the premises vehicles, machines and staff is completely operate through cash in hand concept. Therefore, the ris occurs from liabilities are very low. ther than that artificial preservatives and flavors are not added to the products, that to provide the natural uality. Harischandra is not providing strong mareting campaigns which targets to youth of the society. The basic advertising campaigns are conducted by neglecting the youth in the society and that will negatively impact to the products lie noodles and coffee. *ost of the product features are remaining constant from the introduction stage of the product life cycle. The products only have limited number of scales which can lead negative impact to the organiation in a long term period. The paid attention for product development is not satisfied with the identity of the organiation. hen consider about the current trends and situation of the country, there is indeed opportunity for Harischandra to introduce new products and enter to new maret which influenced by international trade. The new segments lie ids, youth and woring women are available for Harischndra to go for repositioning or launching of a new product. The trend of having convenience food level is going upwards due to the busy life style of the people. *oreover, people are looing for healthy products which fulfill the natural and nutrition reuirements. Dneploited rural maret is available for Harischandra to introduce their name and product 14
range. The level of country/s income is increasing and that will mae positive impact on customer buying behavior. The new entry to the maret is very high from the individual product basis and it is a threat to the organiation. *oreover, well nown international products are also entering to the maret and create highly competitive maret condition for some of the products such as, noodles, coffee and flour. The high end mareting campaigns organied by competitors such as *aggie, -rima and +escafe is a threat to the organiation in long term process. %dditionally, the changes in the government will introduce the new rules and will mae the amendments to the eisting rules and regulation will mae organiation to change its policies. #.2 'areting o33ortunity
Foods come with noodles category are very popular product among the ids in !ri "ana. ut more than Harischandra, *aggie and -rima has more youth attraction because of its shape, sie, and physical structure and pacs sie. These days/ people are paying more attention on the healthy and fast coo products due to their busy life styles. Therefore, introducing instant rice noodles which completes the balance diet reuirements and suits to busy life style is an opportunity for Harischandra, because of their good reputation of giving natural and nutrition food products over the seven decades of period. Furthermore, most of the noodles manufactures are dealing with the wheat flour but !ri "anan culture has designed to eat rice for all three meals. Hence, Harischandra meals can get the opportunity of providing instant rice noodles which suits to !ri "ana.
0. 'areting Ob4ectives *areting ob;ective reveals what the business wants to achieve from its mareting actions. )t/s important to obtained mareting ob;ectives to support the overall business ob;ectives. • • • • •
To increase company sales by 20J by 2017. To launch instant rice noodles 201'E2017. To achieve a maret share of 2'J for instant rice noodles within three years of launch. To establish new modern trade channel during 201'I2019. To increase the percentage of customers who rate product uality is ecellent by 'J.within one year.
1'
2.. 'areting Strategy !egmentation in the mareting refers grouping various customers into segment that reflects common need or they will similarly respond to the mareting action. Furthermore, the strategy of 5dividing the group of consumers or segment in a homogeneous group6 with distinct needs and wants is called segmentation $Boyat, 2011(. %fter segmenting, business will choose the group which they want to enter. 5#ompanies must decide precisely how and where in targeted segment to aim product or products and brand or brands6. $Aibb and arwic, 200=, p.=(. %fter conducting the targeting, positioning is conduct to develop the product image in the consumer/s mind. )n some of the cases it can also include improving customer/s to choose the product or service. 2.1 'aret Segmentation
*aret is segmented in to age, eating habits and "ife !tyle. %ge is a factor which should consider for noodles products. asically Harischandra is providing a family pac which is suitable for main meal. ut after considering the busy life style of different age groups, the sie of the pacage, product appearance and flavor should be changed. %dditionally, according to the eating habits and life style of the people , cooing time, flavor, ingredients and pac sie has to be varied. 2.#. Target 'aret
-rimary target maret is people who have busy life styles including, woring people, and university students. ther than that Kouth and ids are also targeted because ids and youth are more convenient of eating instant products than eating rice and curry for all three meals. oring women are giving their priority for time saving and healthy products due to their busy life styles. Therefore, their children and other family members have to go for her choice. 'aret -emogra3)ics
&egion L Drban, !emi Drban, &ural ccupationE oring -rofessionals, Dniversity !tudents, !elfEemployed, House ives !e LDnise )ncome L M =0,000 per annum 17
!ocial classE *iddle and upwards %e)avioral
ccasions L&egular, 8very dayE user urban, &ural depends on the temporal aspects of the consumer/s life, $varied usage in terms of time of time day, wee, month, and year(. Table 4.1? *aret !egmentation Segmentation
Targeting
Positioning
%ge
-eople who have busy life styles
8asy to coo
8ating Habit
Health conscious people
Two minutes rice noodles
"ife !tyle
Taste Health #omplete balance diet
2.0. 5alue 3ro3osition
Harischandra is the pioneer of providing the rice noodles which gives with natural uality. ith this newly introducing instant rice noodle will save the time by fast cooing $2 minutes(. Furthermore, for the first time, Harischandra is providing the noodles with a sauce maer. %ll the ingredients, included in the sauce maer consist with natural uality and it includes reuired nutrition for the complete balance diet with the rice noodles. Further, *!B $*onosodium Blutamate( is not included in the Harischandra noodles products and the wa, coated on the other instant noodles products has not coated on the Harischandra noodles. Hence, after boiling, this new rice noodles can eat with a single curry as string hoppers. The boiled noodles will give the closer feeling of eating string hoppers. The product is basically designed by considering the life style and the taste of the !ri "anan people. *oreover, noodles are coming with different scale of pacsie which is sufficient for one person, two people, four people and si people. ith this new product, Harischandra has entered to different scale pac sie for noodles which suits to busy life styles. This newly introduce noodles has the product uality which gives minimum negative effects to health.
6.. 'areting 'ix *areting mi is the different choices that organiation has to introduce their product or services to the maret. %ccording to 3ottler,et al. $2009(, has described mareting mi is a set of tools that use to create a proffered response from targeted maret. 1=
6.1. Pro"uct
This introducing noodle is developed to enhance the healthy conditions for the people who have busy life styles. This noodles is comes under the instant noodles group but with the positive health conditions.
Pro"uct Life Cycle
Figure '.2? -roduct "ife #ycle $*aiE-edia, 2012(
Aevelopment stage is the most important stage which needs to develop the product with the current reuirement of the customer. nly the fulfillment of the reuired features will lead product to the introductory stage. $&efer the pg 1' for product features( )ntroduction stage %fter conducting the development process for the Harischandra instant rice noodles, the introduction of the noodles is planning to launch in the year 2017. This is the most important 19
stage which needs to promote the product initially. %ccording to the schedule in the year 2017 the product should launch by targeting the ids, youth and woring women. Browth stage -roduct will start to grow and it needs large amount of money to spend for the advertisement. %t this stage it/s highly reuired to spend the money to mae Harischandra instant noodles as a household name in !ri "ana. *aturity stage This stage is comes after passing the introductory and growth stage. Benerally product will have high life span in this stage. )n this stage it/s possible to get great deal of competition in the maret by entering the international products such as Top &amen which has large maret share in )ndian maret. Features
This new product consists with easy to coo concept which taes ten minutes to coo and comes with a sauce maer inside the pac. Furthermore, •
)t should be made with red rice and white rice.
•
)t should be made to full fill the complete balance diet reuirements.
•
Taste of the sauce maer could be made to change by adding vegetable, fish, chicen and cheese on the preference of consumer.
•
nly two minutes will tae to coo the noodles.
•
!ource maer should be made to *!B free E*onosodium Blutamate.
•
%ny ind of wa should not coat on the noodles.
Pacaging •
The noodles pacet should be come up with 94g pac for one person, 1'9 g pac for two people, :09g pac for four people and 420g for si people. 1>
•
The colour of the pacaging should be changed.
6.#. Price
The ob;ective of launching the instant pasta is to achieve the high product uality with the !ri "anan identity. The targeted segment is fewer prices sensitive to obtain the uality product which suits to their busy life styles. Therefore, premium is the pricing strategy which creates company to provide different pricing strategies. )n the current situation, the comparison of the price can do with the competitors such as *aggie, +iado, -rima, *A3 and &aigam. &aigam is providing rice noodles and but it/s not an instant noodles product. n the other hand it will not provide a complete balance diet. Therefore, comparing prices among competitors will not give the fair balance. 8ven though, product cannot go for higher price compared to competitors because of the high competition. -rice discounts will offer for trade customers based on the policies of the organiation. 6.0. Place
Harischandra Aistribution #hannel is established in all over the !ri "ana. ut still there are some locations where the distribution channel is not established. rganiation has limited penetration in rural areas. Harischandra +oodles products are easily available in traditional groceries and supermarets. )t should introduce single agent per city including rural areas. %dditionally, direct retailers should give the freedom to deal with a ny wholesaler
Harischandra factory
Factory warehouse
%gent Aistributors 20
holesalers
Airect &etailers
8nd customer Figure '.2?Aistribution channel for Harischandra noodles
6.2 Promotion
This product is targeted for people who have busy life styles such as women who are woring, young professionals and university students. %lso the people who would lie to go for instant meal, without going for complete !ri "anan meal. Suggeste" future a"vertising cam3aign
ith the introducing of instant rice noodles, it is propose to move away from Harischandra family approach. -eople lie to en;oy snacs when they are watching the cricet match. Therefore, its more prefer to get a cricet star to endorse the advertisement campaign. Television events
Harischandra 5&asamedura6 telecast on every !unday at 11.:0am which is providing innovative recipes for Harischandra products by a professionals. The program can develop by giving a chance to a customer who has most innovative recipes and can publish it as a boo. Celebrity en"orsement
-opular criceter 53umara !angaara6 can select as a celebrity for the advertising campaign T< advertisements and print media should use to introduce the product. ther than that, 21
•
!cratch and win offers
•
*oney bac offers
•
!ponsor for school ui and inter school cricet matches can mae the awareness of the product.
We
only
ask
2
minutes for healthy life (Instant
Rice 22
Noodles Easy to coo T*o minutes rice noo"les +ealt)y E7ual to com3lete balance "iet
Figure '.:? -roduct %dvertisement
8.. !m3lementation For the implementation first it/s reuired to do the research and development for the new product by adding all the new features and it/s reuired to conduct a feasibility study and then focus for maret research. ased on the results gain from the maret research the production should carry and the launching should carry out. %fterwards, the creating commercial advertisements, getting customer feedbacs, designing promotions, contribute to the sponsorships will increase the maret share of the company. Finally to give a good customer eperience trained the employees to give their maimum. The estimated budget for implementation is three million rupees.
2:
'arerting %u"get +ews papers #onsumer magaine Trade publication
:J
>J
:J 9J
&adio Television
:J
Airect mail
=J
2J
nine promotions
2J
:J
Trade promotions *aret research
12J
Airect *arerting
21J
-ublic relations ill boards
14J >J
!ponsorships
4J
ther
Figure 7.1?*areting udget
8.1. 'areting $ction Plan
Table 7.1?*areting %ction -lan !-
$ctivity
1
Ao
the
/es3onsible Party
research
and -roduction
development
-uration
manager, #1 -ays
development for new product
-roduction *anager
2
#onduct a feasibility study
Finance manager
#9 -ays
:
#arry out a maret research
*areting manager, !ales manager
#9 -ays
24
4
-roduction
-roduction
manager,
-roduct 1 "ays
development manager
'
"aunching the product
*areting
manager,-roduction 0 "ays
manager, sales manager
7
#ommercial advertisements
*areting manger
#81 "ays
=
#ustomer Feedbacs
Human &esource *anager
#26 "ays
9
-romotions
Finance manager,*areting manager.
1#0 "ays
>
Biving !ponsorships
Finance manager,*aretingmanager.
1#0 "ays
10
Trained to give a proper Finance manager, Human resource #26 "ays customer eperience
manager, -roduction manager
2'
22
:.. Customer Ex3erience
This describes the overall eperience customer gets with the interaction of business entity and its product. hen the customer is buying the product, customer should have the good impression about the surrounding. Then only customer will satisfy with the product. )n Harischandra mills -"#, there are two outlets in #olombo and *atara, where employees directly meet the final customer. Therefore, it/s essential to recruit the right candidate for the right ;ob. Further, the agents who are meeting the trade customers also should give a proper attitude and training to gain the customer satisfaction which impact to the final sales outcome because they reflect the brand image, and they can be the source of positive word of mouth. Furthermore, in the process of handing over the product to customer, issues such as waiting time will mae negative impact on customer/s mind. Hence, building a strong system that can provide the reuired service to the
:.. Customer Ex3erience
This describes the overall eperience customer gets with the interaction of business entity and its product. hen the customer is buying the product, customer should have the good impression about the surrounding. Then only customer will satisfy with the product. )n Harischandra mills -"#, there are two outlets in #olombo and *atara, where employees directly meet the final customer. Therefore, it/s essential to recruit the right candidate for the right ;ob. Further, the agents who are meeting the trade customers also should give a proper attitude and training to gain the customer satisfaction which impact to the final sales outcome because they reflect the brand image, and they can be the source of positive word of mouth. Furthermore, in the process of handing over the product to customer, issues such as waiting time will mae negative impact on customer/s mind. Hence, building a strong system that can provide the reuired service to the customers and improve customer relationship management as it is an essential factor to consider. #ustomer/s satisfaction is also depends on the factors lie physical evidence that they eperienced with the employees of the company. hen there is a formal document submission, it should do in a professional manner and there is a situation where the employee has to wor in a friendly environment. 8ven the partnerships are matters in some of the circumstances. Therefore as a method give a satisfactory customer eperience, it is suitable to conduct surveys, customer feed bacs and do the amendments based on that. $&efer the pg 11for ob;ective no.'(
2:
;.. Conclusion Harischandra *ills -"# shows the uality of the products with their !ri "anan identity. The mareting tools in the organiation are not powerful to compete with the competitors/ mareting practice. ut most of the products are developed for the family concept and targeting the adult maret. Harischandra has not carried out an etensive study for ids and youth. Therefore, the targeting maret for product was a limited group of people. )n the same time customers have the faith on Harischandra products for their uality of natural and nutritious aspects. %dditionally, after considering all the above factors it/s proposed to develop a product which suits to the busy life style, and targeting the ids, youth, woring women, people who are adopt to busy life style and health conscious people. The product is an instant rice noodles which fulfill the complete balance diet reuirements. Further, the pacaging sies are planned to be changed to the scale of one person, two people, four people and si people. The mareting campaign is proposed to develop based on cricet and select 3umar !angaara who is a popular cricet star to do the promotions campaign. The epectation is to achieve twenty five percent of maret share for the product within three years of launch. ther than that, scratch and win offers, *oney bac offers and !ponsor for school ui and inter school cricet matches can be used to mae the awareness of the product. -remium is the pricing strategy which creates company to provide different pricing strategies.Harischandra +oodles products are easily can find in traditional groceries and supermarets. The estimated budget for the implementation is three million rupees. The epectation is to achieve twenty five percent of maret share for the product within three years of launch.
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