Hettigoda Industries
Hettigoda Industries
This report is based on the market analysis and marketing plan of Hettigoda industries Pvt Ltd,
which is a leading export quality herbal products and Ayurvedic pharmaceutical products
manufacturing company in Sri Lanka. Task 1 is based on environmental analysis related to
corporate business environment in Hettigida area. Industries Pvt Ltd. Moreover, task 1 explains
the internal and external environmental factors that affect the firm's long-term organizational
success.
Task two contains a detailed discussion of current marketing strategy and current STP and
proposed segmentation plan, proposed target market and proposed strategy for Hettigoda
Industries Pvt Ltd. The report also describes marketing mix analysis, linking product decisions
across functional requirements. Business performance goals and digital marketing plan for the
company.
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Task One – Marketing Audit for Siddhalepa Brand of Hettigoda Industries
(Pvt) Ltd.
1. Introduction
The Hettigoda Industries was founded in the 19th century in Sri Lanka by Dr. Hendrik de Silva
Hettigoda, who was a kidney specialist and astrologer comes from a family of over 20 decades of
ayurvedic medicine experience. Siddhalepa is their main brand and currently they are manufacturing
more than 150 varieties of products such as skin & hair care, oral care, ayurvedic medicines and health
care products.
The main and the leading brand of the Hettigoda Industries is Siddhalepa which is categorized under
herbal ayurvedic products and it is believed to heal pains and body aches. Ayurvedic herbal balm is the
initial product of the siddhalepa brand. This ayurvedic product now has developed to distribute in various
methods such as oils, inhalers, toothpastes, soaps and shampoos to both local and overseas market.
Siddhalepa currently manufactures more than 90 herbal Ayurvedic products for sale in the domestic
market as well as in more than 25 different countries worldwide.
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2. Environmental Analysis
These settings consist of a set of environments and influences from the context and established existence
of a business organization.
Every company releasing ayurvedic products into the market is responsible for following the regulatory
procedures in detail, and the PESTEL analysis of Ayurvedic herbal product manufacturing business
sector supports the links bound to these conditions.
Forces Impact
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Employee’s skill level
Education level
Whether condition
Climate changes
Legal conditions that related to environmental pollution
Environmental Recycling
Waste management in consumer product manufacturing procedure
Perceptions on greener items
Perception for renewable energy utilization
Discrimination laws
Copyright, patents & intellectual laws
Consumer product acts
Legal
Employment laws
Health and safety regulations
According to the above analysis, we can identify that there are many positive and negative external
environmental conditions which can affect to the future of the company in the long term perspective.
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2.1.2 SWOT analysis
Considering Winer and Dhar's SWOT analysis of Hettigida Industries PVT LTD can describe the
strengths, weaknesses, opportunities and threats that influence the strategic audit of the organization.
Weaknesses Threats
Low profit margins in domestic market for In Sri Lanka, there is a lot of distorted
specific herbal products despite demand. and misleading information related to
Lack of suitable machinery for traditional medicine in newspapers,
manufacturing target products to supply electronic media and social media
foreign market demand. programs.
Lack of many online sales opportunities Domestic and foreign competitors like
and lack of digital marketing platforms BARAKA and Indian Ayurveda products
Local consumers have a high trust rate
on western pharmaceutical products
Ayurvedic medicinal products are not
very attractive to the youth market
segment
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2.2 Micro environment analysis
Micro environmental analysis evaluates all the actors and elements of the immediate environment that
directly affect the way Hettigoda Industries PVT LTD operates.
The originator of the 5 Forces model is Harvard Business School (HBS) professor Michael Porter, whose
theories still inform business strategy today. Porter's 5 forces model framework is used for strategic
industry analysis and focuses on the following
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1. Threats of new entrants – Moderate
Anyone who wants to enter the industry can enter very easily in Sri Lanka but the difficult thing for
them is to build recognition, customer base and agent network. Barriers to entry can be increased
through economies of scale, as the new entrant does not have entry-level advantages in their business.
Considering the substitutes in the industry can give the direct impact on the business but Siddhalapa
as a well-established product, consumers know that the company manufactures products according to
internationally accepted standard levels.
A company's supplier consideration can be identified as suppliers of raw materials such as herbs and
packaging materials. Hettigoda Industries Private Limited does not depend on one supplier because of
their production rate is high. Therefore suppliers don’t have much bargaining power.
The company's competitors try to attract the company's customers by using imported products and
cheapest prices. Hence, the bargaining power of the consumer is high. We have to maintain relatively
low prices to keep customers.
Siddhalepa is a well-known brand throughout the world. However, the ccompetition in the industry is
very high, as there are many rivals with similar herbal products considering other competing local
companies and overseas products such as Baraka, Iodex, SP balm, Tiger etc.
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Cost analyzing, Entry into new markets, and new procurement
Consultants
Connected procedures
Shareholders Parties investing money in the growth of the company
Retaining existing customers as well as attracting new customers
Customers
domestically and internationally by offering good quality products
A strong supplier base will give the company a high degree of
Suppliers
External advantage.
Government Taxes, export regulations, and price controls can impact business
Minority Groups Labor union influences can also affect the company's operations
3. Competitor analysis
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Task 02: STRATEGIC MARKETING PLAN
1. Strategic Intent
1.1 Vision
At the forefront of holistic healthcare, we provide authentic Ayurveda based products and services
that lead to happier, healthier and naturally longer lives, while propagating the values of Ayurveda
across the globe.
1.2 Mission
To build and maintain leadership in providing effective and innovative Ayurveda products & services
to the market
To promote true Ayurveda nationally & internationally while preserving Sri Lankan culture &
heritage
To utilize natural resources with utmost care & conserve them for future generations
To introduce modern technology to the Ayurveda sector to make products & services more
competitive global
According to Winer and Dhar (2014), Hettigoda Industries (Pvt) Ltd (Siddhalepa) uses different types
of branding strategies in its marketing process. The following content shows how Siddhalepa
Company's product mix and price mix based marketing strategies are effective for long term corporate
performance.
In product diversification, companies show how manufacturers can make more efficient and quality
herbal products according to industry needs.
In Price Variation, the company demonstrates how it establishes reasonable prices for Siddhalepa
Ayurvedic products in the current market.
Furthermore, in today's business world, Hettigoda Industries (Pvt) Ltd strives to become customer
centric. One of the key factors in achieving this is involving the employees of Hettigoda Industries
(Pvt.) in the operational marketing process. Therefore, they can work as a team to meet the needs of
customers. This high-level and low-level strategy of critically promoting the enterprise's products and
services to its personnel is referred to as corporate marketing strategy/practice.
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The marketing strategy of Hettigoda Industries (Pvt) Ltd (Siddhalepa) played an extensive role in
creating a customer centric strategy of Siddhalepa products, which supported the business advance
buyer related services, created strong customer credibility and finally tried its rivals. Although
Hettigoda Industries highlights their customer service in the best way and as quickly as possible,
Visaka Soap's rivals have long been asserted to have nested demands and firm-targeted ecology of
services. It states that considering the customer's expectations is as good as considering the company's
objectives.
The content below shows how Siddhalepa Company's marketing strategies based on place mix and
promotion mix are effective for long-term organizational performance.
In location mix, the company shows how they set up retail outlets and their factories in identical
geographical locations.
In the promotional mix, shows the company application of various marketing and promotional
techniques to promote the Siddhalepa brand in the Ayurvedic herbal product segments in the wider
consumer market.
A strategic digital marketing plan usually starts after a detailed situational analysis of Siddhalepa
products of Hettigoda Industries (Pvt) Ltd. A situational analysis is a compilation of possible
strengths, weaknesses, opportunities and threats. The digital marketing plan for Siddhalapa products
of Hettigoda Industries (Pvt) Ltd definitely depends on the terms of BCG matrix of Hettigoda
Industries (Pvt) Ltd. Moreover, situational analysis consists of a comprehensive analysis of the
business environment of the business organization. A situational environmental analysis can be
completed with the help of a comprehensive porter’s five forces model associated with Hettigoda
Industries (Pvt) Ltd. (Siddhalepa).
The model contains key business environmental conditions that affect the long-term performance of
the company. Therefore, while conducting the daily business operations of Hettigoda Industries (Pvt)
Ltd, corporate management should pay primary attention to these Porter's Five Forces Model
conditions.
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1. Rivalry in the industry: The company conducts digital media based marketing and advertising
campaigns to attract new customers.
2. Bargain power of customers: The company applies competitive price range to their production
portfolio.
3. Bargain power of suppliers: The company purchases raw materials from various suppliers at
competitive and reasonable prices.
4. Threat of new entrants: The company regularly launches new products to face competitors and new
market entrants.
5. Subsidiary products and services in the industry: The company manufactures their herbal products as
per international Ayurvedic pharmaceutical standards.
For associations to make do with the overall market, they should be profitable; from now on , a
tendency to focus on their beneficial customers. According to Kolter and Armstrong (2018) “affiliates
should focus on their customers and resources should identify and connect to their client's needs”.
This is a general key standard for effective development that Hettigoda Industries (Pvt) Ltd engages in
to retain existing customers and gain perfect share of business. Going forward, customer or social
engagement of customers with comparable charges is expressed as "market share".
Segmentation is a promotional method of Hettigoda Industries (Pvt) Ltd which identifies and caters to
the needs of customers as indicated by their preferences. When the customers of Hettigoda Industries
identify and assemble similar needs, then massive things or organization can be made for each
segment to meet their pre-requisites and needs. Segmentation should be based on different
components; For example, customer direct, geography, demographics, etc.
Acquiring new customers is incredibly essential for Hettigoda Industries considering the advantages
that new customer base bring to the business. This approach involves persuading buyers to buy a
product of Hettigoda Industries, which requires procedures, and a genuine game plan. As discussed,
the best way to get on board new customers is to understand their wants and needs, so spend more to
acquire them than they spend. Kolter and Armstrong (2018) understand how customer acquisition can
be uncomfortable, but urge businesses to revitalize the business first in order to understand the
strengths of the business.. Ensuring the past about isolated customers, acquiring a segment means
securing customer divisions. Segmentation can be seen as the method by which business pioneers
increase a specific customer segment through a selected market segment.
In this way, 65% of Hettigoda Industries (Pvt) Ltd's business originates from existing customers, even
though acquiring a new customer is more expensive than keeping an existing customer. This
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emphasizes the need to nurture existing customers. As Hettigoda Industries (Pvt) Ltd can do without
customers, executives should do research to understand the needs and wants of customers to retain
existing customers and acquire new customers.
Targeting
Targeting is another marketing technique which comes after the market segmentation. It happens after
the organization identifies the part where they have to offer their things to the customers (Kotler and
Armstrong, 2018). This framework assesses the spending limit of the buyers and the ability of
Hettigoda Industries (Pvt) Ltd to meet their needs and requirements. Kotler et al. (2017) contends that
a focus on technology suggests the concentration of association arrangements and promotion efforts to
a given segment: “the customer must be given something and they will not receive it”.
Hettigoda Industries (Pvt) Ltd, as a national natural herbal products manufacturing organization in Sri
Lanka, has focused its waste scope level segment on specific customers based on their purchasing
front. This has helped Hettigoda Industries to convert its website visitors into long-term customers. In
any case, the association revolves around the improvement advised to customers due to the online
nature of their business exercises. The Hettigoda industry sector focused training organization is
associated with focusing on the wider customer area. The retail goliath does this by using multiple
parcels and adaptive processing frameworks. These clients have a high and paid class position on all
sides. Some of them are operators or specialists who may not tend to visit a physical store and give
vitality, but think that it allows shopping on the web. Especially the customers of Hettigoda Industries
can be the people scanning for offers, refreshing on why the association has fixed express dates to
give their buyers great points.
Furthermore, Siddhalepa.com (2020) states that its customer base have now started all over the world
and the customers of its website are new types of customers who are now dealing with clients,
fashionistas, marketers, content architects and various endeavours.. All of these societal opportunities
have their specific needs and requirements; Hettigoda Industries develops new responses to product
improvement and financial perception.
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Positioning
After Hettigoda Industries (Pvt) Ltd has clearly delineated its target segments, it continues to follow
the way consumers perceive its items with various items accessible to them. Positioning is a
comparative form of how a buyer looks at the product and other competing things in the market.
Depending on how consumers position something as a primary need subject to its preferences and
features, the company can assemble its processing strategy as a combination of features, for example,
respect, quality, feel, product usability, property, etc.
Hettigoda Industries (Pvt) Ltd is positioned on cost as it focuses on a large number of customers who
may otherwise go to unsuspecting retailers. Hettigoda Industries has launched certain online business
destinations for each country to determine its eligibility and open a natural environment for customers
with customer assignments that understand their neighbourhood language and customer prerequisites.
This is a serious step forward in satisfying customers and serving them at their convenience. The
unusual showcase framework is the decentralized structure that clients can service 24 hours a day, and
it associates with the clients of the business. Despite introducing free transportation in 1995,
Hettigoda Industries (Pvt) Ltd has introduced unerring neighborhood stock decisions that encourage
stock techniques. Winer and Dhar (2014) provide an example of the union's introduction of postal
requests for German and checks for French customers and the union's reliance on shippers in Europe
for transport to private customers.
There are four main component bases. Physiological segmentation is selected from them to strategic
marketing analysis of Siddhalepa.
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Middle-aged men and women are mainly looking for products to take
better care of their bodies.
Middle-aged generation
This market segment is willing to spend more to keep moral
appearance.
A segment of older men and women seeking herbal products for
Older generation advanced medicinal care and body protection.
According to the above investigation, Hettigoda Industries (Pvt) Ltd (Siddhalepa) evaluates the
overall organizational performance of the herbal items marketing process along with the effectiveness
of the market segmentation analysis. In the context of this physiological segmentation, the company
mainly focuses on the consumer category of “middle-aged men and women”.
The target market selected for Hettigoda Industries (Pvt) Ltd (Siddhalepa) is as follows. This is the
best target market for Siddalepa Ayuredic medicines.
Physiographic
Features
market Segment
Age 35-55 (Middle-aged generation)
Financial level High level of own income level and family based contributions.
Appropriate appearance is a significant perception.
Indication of take for improvement in pharmaceutical
Psychograph conditions
pharmaceutical care product sector.
Importance of using branded quality products.
According to the above investigation, Hettigoda Industries (Pvt) Ltd will be able to evaluate the
overall business performance and effectiveness of the herbal product marketing procedure in the both
middle aged male and female market sector.
It is the best and efficient market positioning strategy for the market for the manufacture of Ayurvedic
herbal products. Hettigoda Industries (Pvt) Ltd. The table below shows that the market positioning
situations that can be identified in relation to Siddhalepa company are exploiting the adult male and
female market.
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Table 3: Selected positioning strategy
The main subject colors of the brand are followed: effectively the brand
Packing of the product
of the product is oriented towards a specific color and idea.
Medicinal herbal products are becoming more and more available for
Physical appeal
purchase at Ayuveda centers, and can be applied in strong doses.
According to the above assessment, Hettigoda Industries (Private) Company (Siddhalepa) is able to
shape its market position with product packaging, promotional techniques, physical appeal and
uniqueness.
For Hettigoda Industries (Pvt) Ltd (Siddhalepa) Ansoff's matrix was applied to distinguish the main
course as per the accompanying tables. The proposed important direction is the diversification
strategy for the company's herbal products production system.
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3.4 Proposed performance targets for next 3 years
According to the Ansoff matrix, the performance targets based on the differentiation strategy for the
next three years are shown in the table below.
According to Jain et al. (2011), product characteristics can be defined as terminating the meaning of
an item across different genres. Hettigoda Industries (Pvt) Ltd (Siddhalepa) Item Attributes are
attributes that can be added to the item definition to comprehensively represent each Ayurvedic item
in terms of size, volume, color, quality and weight.
The table below shows the basic dialogue of the activity plan for improving the presentation of item
arrangement of Hettigoda Industries (Pvt) Ltd (Siddhalepa).
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4.2 Pricing decisions
Items of organization are dictated by people of all classes. In addition, everything except the gift
packaging is really appreciated at reasonable prices, especially when there are comparable things from
the competitors mentioned earlier.
The table below presents the critical discussion of the action plan for improving the performance of
the pricing strategy of Hettigoda Industries (Pvt) Ltd (Siddhalepa).
As for the local market, items that go under individual and natural considerations and domestic oil
classifications can be found, and are in deep demand from Sri Lanka's high-end general stores and
pharmacy to small shops in Sri Lanka's city. Profound healing materials are accessible in pharmacy
and ayurvedic stores, and blessing packs are kept in places of special interest. For example, the
hypothetical grocery store
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The following table presents the critical discussion of the performance improvement action plan of
location strategy of Hettigoda Industries (Pvt) Ltd (Siddhalepa).
Hettigoda Industries being an organization that properly understands the specific techniques for
cooking the demands around it realizes that the most suitable approach to advance its products is to
use network administration. Focusing on this, they spend heavily on social state aid and exercises in
extreme situations, natural mindfulness, explorer support in various extreme places and situations,
medical clinics in schools, development of sanctuaries and temples, protection of living beings and
plants, presence of spring cows from being butchered and so on. These remain the core elements of
the special mix, which centre around media; For example, television, radio, paper and web promotion
(Jain et al., 2011).
Critical discussion of action plan for improvement of promotion mix strategy of Hettigoda Industries
(Pvt) Ltd (Siddhalepa) percentage in the table below.
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Table 9: Critical discussion on how to achieve the performance in Siddhalepa
Michael Porter's value chain thinking is one of the most considered thoughts in today's market,
considering how the value chain reveals to us how the association can isolate our things by analyzing
the chain of events that occur in the association (Kotler et al., 2017. ) in today's drowning in
advertising. Because separation is critical, Porter's value chain typically looks at a large number of
officers.
Porter's value chain concept states that there is a chain of events that take place within an organization
directly from the securing of raw materials to the movement of similar items to the post-exchange
organization(Jain et al., 2011).
This framework incorporates nine stages and the methodology can be modified at any of the nine
stages to expand the estimation of the final item (Jain et al., 2011). The value chain model can be a
reference for inclusive development. As a result, an organization needs to incorporate customer care
into all its systems, and it needs to imply the value chain.
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Figure 1: Porter’s value chain diagram
Therefore, according to the following table present that existing cross functional availability in
Siddhalepa.
HR Management
The company uses modern human-friendly workforce
management techniques.
Annually, the company's production department introduces
Technology
new technology into the entire production system
Hettigoda Industries follows fair pricing practices in the
Procurement
raw material procurement process of the company.
5.1 Critical examination of cross functional requirement to achieve the performance targets
In the marketing environment analysis of Hettigoda Industries (Pvt) Ltd, key cross-functional
requirements define a suitable business environment for its day-to-day interests. It articulates the tasks
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of a business performance development procedure to be performed strategically. A business
performance development procedure is nothing; However, it includes its behavioural states and
overall outputs. It can be a specific organizational function that describes a new product development,
product manufacturing, business process planning, customer collaboration, or simple realization of
non-mutual business performance development procedures. Hettigoda Industries (Pvt) Ltd's
organizational performance development procedure involving cross-functional interests assists the
entire company in imprisoning planned behaviour in the system. This process can be expressed as
strategic functions, services and businesses or as an essential program to perform.
Changing the entire corporate business operations to pay off past commitments or stick to the herbal
product manufacturing process using more innovation to reduce unnecessary costs.
According to Winer and Dhar (2014), Hettigoda Industries (Pvt) Ltd (Siddhalepa) applies various
types of digital marketing objectives and strategies to achieve long-term performance of the company.
Siddhalepa also aims to increase the corporate profit by 20% by the year 2020.Furthermore, Hettigoda
Industries (Pvt) Ltd (Siddhalepa) is seeking to improve their active customer base by 25% by the end
of 2020. Furthermore, the company aims to invest 25% of its profits in annual sales promotion
campaigns. Ayurvedic gerbil products in 2020.In the course of day to day business operations,
Hettigoda Industries (Pvt.) implements a corporate digital marketing strategy as per the market
fluctuations in the context of the Siddhalepa brand. The Company recognizes that the Siddalepa brand
faces high levels of market fluctuations and various market environmental conditions both directly
and indirectly annually.
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6.1 Digital Marketing tools
When conducting daily marketing and business operations, the company mainly uses three digital
marketing tools to promote its products in the domestic and international markets.
SEO:- Winer and Dhar (2014) stated that this tool communicates to organizational employees
how the organization can design and develop their herbal products and services through
appropriate management principles.
Social Media:- According to Kotler and Armstrong (2018) through this digital marketing tool,
the company promotes their new products and services to domestic and foreign customer
base.
Mobile Marketing:- According to Winer and Dhar (2014) under this tool, the company
conducts sales promotion campaigns to improve monthly, quarterly and annual revenue
6.2Measurements
When conducting day-to-day marketing and business operations directly, Siddhalepa products mainly
use three digital marketing tools and this way digital marketing tools can be measured.
SEO – The company measures these digital marketing tools in terms of system efficiency,
continuous service and accuracy, which can directly impact long-term business performance.
Social Media – Siddhalepa company's social media digital marketing tool can be measured to
analyze the market reputation of "Siddhalepa" brand.
Mobile Marketing - Corporate top management can measure their annual sales and
promotional area development through the mobile marketing process.
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