Hassaan Assignment

1 MEMBERSHIP NUMBER- 14781145
HEMAS BABY CHERAMY
Pure Love
Stakeholder Marketing
Option- 2
Membership number- 14781145

Table of Contents
Audit report
1.1) Using Mendelow’sPowerIntrestmatrix toshow the levelof influence andimpactof stakeholder
groups relevant to Hemas PLC.............................................................................................................4
1.2)ShowingHemascurrentrelationshipwiththe three stakeholdergroupswiththe most
influence and impact using Relationship Life Cycle Model .....................................................................5
1.3) Hemas currentmarketingmix andhow itmeetsthe needsof the three mostimportantstakeholders
with specific reference to corporate social responsibility an ethical issue...............................................6
Presentation on Hemas Stakeholder group
Slide 1
 Front page…………………………………………………………………………………………………………………………………..8
2.1)Slide2
 Definingwhoisastakeholder……………………………………………………………………………………………………..9
 Why stakeholdermanagementisimportanttothe company……………………………………………………..9
 Namesof stakeholders….................................................................................................................9
2.2)Slide 3
 Evaluationof howMendalowsMatrix enable organizationtoidentifytheirpotential influence of
itsstakeholder…………………………………………………………………………………………………………………………..10
2.2.1) Slide 4
 Catergorisingof stakeholderintointernal,connectedandexternal groups………………………………12
2.2.2) Slide 5
 Evaluationof howthismethodenable organizationtoidentifythe potential influence of
stakeholder……………………………………………………………………………………………………………………………….13
2.3) Slide 6
 An ExplanationonRelationshipMarketing……………………………………………………………………………….15
 An explanationonLadderof LoyaltyRelationshipmarketingmodel…………………………………………15
2.3.1) Slide 7
 An evaluationof Hemascurrentrelationshipwitheachof itsthree mostimportantstakeholder
groupusingthe Ladder LoyaltyRelationshipmarketingmodel…………………………………………………16

2.3.2) Slide 8
 An explanationonRelationshipLife CycleModel andHemasthree mostimportantstakeholder
groupsusingRelationshipLife cycle Model………………………………………………………………………………18
End slide………………………………………………………………………………………………………………………………………………..20
Report
3.1) JustifywhyCAA wasselectedthe mostimportant stakeholdertothe company……………………………21
3.1.1) The missionstatementof CAA andthe specificinterestCAA hasinsocial responsibilityprogram.22
3.1.2 How the social Responsibilityprograme of CAA haslinktoHemasdirectlyorindirectly……………….22
3.2) Recommendsforchangestothe current marketingmix thatwouldenableHemastomore
extensivelymeetthe needsof CAA,intermsCAA interestincorporate social responsibilityandethical
issue,while at the same time no adverse effect on consumer/customer..............................................23
3.3) Evaluatingthe impacton the above changeswouldhave onHemascurrentrelationshipwithCAA
including their potential to give Hemas a competitive advantage. .......................................................25
3.4) ChallengesHemasface ingainingorganizationsupportandfundingforthe above recommendation
done report 3.2................................................................................................................................27
Appendix
Backgroundto the company
Productsof Hemas
Positionof the companyinthe market
Customergroupsof Baby Cheramy

Audit report
1.1) Using Mendelow’s Power Interest matrix to show the level of influence and
impact of stakeholder groups relevant to Hemas PLC
Mendalow’s power interest matrix attempts to classify stakeholders in relation
to the power they hold and the extent to which they are likely to show interesting in supporting
or opposing a particular strategy. The matrix indicates the type of relationship which
organization typically might establish with stakeholder groups in different quadrants.
High
Power
Low Intrest High Fig-1.1
 Keep satisfied
Government
Government need to be keep satisfied to decrease their influence to Hemas
through various laws and regulation which should be undertake by the
organization.
 Keep informed
Communities
In supporting sustainability we work in each sector of Hemas is involved in
activities that uplift the communities or protect the environment. Through these
initiatives we also hope to improve awareness of our employees on the
responsibility of humans to the greater society.
Media
Media need to be keep informed inorder to communicate our companies changes
and updates taking place to all our stakeholders (change in directors, New
product launch, Promotions etc……)
 Keep satisfied
 Government
 ConsumerAffairAuthority
 Manage closely
 Managementteam
 Large shareholders
 Monitor
 Competitors
 Keep informed
 Suppliers
 Media
 Pressure groups
 Employees
 Communities

Pressure groups
Pressure groups can influence our company in many ways therefore we need
keep inform our company changes made to them inorder maintain better
relationship.
Employees
Employees need to be informed on companies any management decision made,
Product changes made , new appointments took place etc… inorder put them self
inwork to meet the companies objectives.
 Manage closely
Large shareholders
Share holders must be manage closely because shareholder are part of
companies decision making and there experience , skills and investments help
the company to move forward
 1.2)Showing Hemas current relationship with the three stakeholder groups with the most
influence and impact using Relationship Life Cycle Model
Relationshipmarketingisoftenseenasinvolvingmore thanjustrelationshipbetween buyer
and seller but also suppliers and other infrastructure partners Involve in exchanging
something in value. Relationship marketing shares with number of other discipline a
concern over strategic alliance partnership and strategic networks. It embraces intra- and
inter Organization relationships as well as relationships between organizations and
individual (Allan Wilson 2006)
 Relationship Life Cycle Model
The customer relationship life cycle 1
(RLC) illustrate how the relationship between an
organization and its three stakeholders moves through a series of seven stages.
Low engagement Engagement with Involve with
The company the company Fig- 1.2
1 RLC- Relationship LifeCycle
Awareness knowledge satisfaction Loyalty Advocasy Partnership

 Consumer Affair Authority> Satisfactionary Stage in Relationship life cycle model
Consumer Affair Authority is the policy of the government of srilanka to provide for the better
protection of consumers through the regulation of trade and the prices of goods & services and
to protect traders and manufactures against unfair trade practices and restrictive trade
practices. Hemas is inline with laws and regulation put forward by the Consumer Affair Authority
therefore company maintain satisfactionary relationship with CAA.
Suppliers > Satisfactionary Stage in relationship life cycle model
Company currently maintain satisfactionary relationship with the suppliers. As Hemas
purchasing in bulk quantity from the suppliers regularly for business purpose. Therefore they are
happy to supply for our company since Hemas is in the highest position in the market therefore
they have an increase of goodwill inorder supplying to Hemas.
Employees > Loyalty Stage in relationship life cycle model
Company currently maintain loyalty relationship with our employees. We have communicate to
all our employees about the background of our company, product and services, mission, vision,
goal and objective of Hemas. There fore they have an advance knowledge about the company
and its product and services so they will promote and recommend our companies product (Baby
cheramy) to the customers and their family, friends how good the product was and its beneficts
which results in increase in sales there by greater market share.
1.3) Hemas current marketing mix and how it meets the needs of the three most
important stakeholders with specific reference to corporate social responsibility an
ethical issue.
4Ps Suppliers Employees CAA
Product  Newproductare
developedand
designed co-
operativelywith
suppliers.
 Productaugmentation
isnot done properly
therefore employees
finddifficultto
promote the product
thishas beenthe
reasonbehindthe
decline of employees
salaryfor lastcouple
of months
 Hemasbaby cheramy
manufactures its
cheramyproducts
withquality
ingrediantswithout
harming the soft
skinsof babiesandto
fullfilthe customer
satisfactionthrough
beinginlinewithCAA
regulationtherefore
CAA will findless
complainson
companies baby
cheramyproducts

4Ps Suppliers Employees Pressure groups
Price
Place
Promotion
 As we are purchasing
inbulkquantityfrom
our suppliers.We are
gettinghigh
discountson
suppliersprice which
helpusto gainhigh
profitmarginwhen
settingthe price
 Suppliersmustavoid
the riskof
distributingthrough
more channelsthan
are realynecessary
Withingivenregion
since toomany
channelsfortoofew
customerscan
negativelyeffectthe
sale
 Throughincreasing
advertisementof
babycheramy
productssaleswill
graduallyincrease
there bysuppliers
will getmore orders
fromHemas.
 We are deliveringhigh
demandedandquality
productsto the
marketwithfairprice
to the product.This
helpemployeesto
promote the prduct
easily.
 We provide
employeesa
pleasantworking
environment(new
equipment,modern
technologyetc..)
whichhelpthemto
enhance theirskills
and knowledge
towardsdelivering
the qualityproducts
 CAA will regularly
monitor on our
price marking for
products our pricing
for products are
much fair equal to
competitors there
fore we don’t find
any issues on
pricing the product

 The totall distribution
processof the
productwill operate
withdifferent
channelsthere fore
the totall distribution
networkshould
complywith
regulationput
forwardby CAA if it
fail to complywhen
the final product
deliverdto
consumersthe total
image of hemaswill
getaffected.If this
happensbyhemas
whichtheyare fail to
fulfilltheircorporate
social respnsibilty.

Notes
 2.1
 Any group or individual who can affect or is affected by the achievement of
the organization objectives (Freeman 1984)
 Stakeholder power has always been an important aspect in a company’s
Stratergy formulation more so because it affects the total image of the
company and affects its performance in an indirect manner and also in todays
context company are under pressure to focus in maintaining and managing
their relationship with important stakeholder.
Example-: 1. McDonalds USA did not manage concerns of parents with regards
to ingredients use causing obesity amongst their children’s. A parent sued
McDonalds 400 million dollars and won the law sued which cause a massive
decline of the share price of the McDonalds.
 Name of the stakeholders which have an influence on our company
 Government Suppliers
 Competitors Communities
 Management team Pressure groups
 Employees
 Large shareholders
 Media

Notes
 2.2
Mendalows Matrix For Hemas PLC
High
Power
Fig-2.1
Low Intrest High
Manage closely
 Management team
Management team which includes finance department, Marketing department,
HR department etc…need to be manage closely inorder to update
On information or the happenings of the company which includes top
management decision made , any new baby cheramy product going to be
launch, any top management recruitment have been made and various other
updates which will have an impact on all the department of our organization.
 Keep satisfied
 Government
 ConsumerAffairauthority
 Manage closely
 Managementteam
 Large shareholders
 Monitor
 Competitors
 Keep informed
 Suppliers
 Media
 Pressure groups
 Employees
 Communities

Keep informed
 Media
Media is one of Hemas major stakeholder whom we need to keep informed
regularly of our companies updates which want to be reach to all our
stakeholders of our company.
Media is a tool where our company can use it for its success in operating the
business locally or globally while it provide the opportunity for the company to
advertise its baby cheramy products using social media channels such as
Twitter, Facebook, Pinterest, youtube, podcast etc…which will reach the
customers in all its possible ways.
Also Media helps our company to identify the complains raised to our products
and also helps the company to overcome the isues that are raised on our Baby
cheramy products and to our company to move forward in the market . As far
as we keep inform about our products to the customers using medias (How its
used, what are the beneficts we can gain through using the Baby cheramy
products etc…) where it will help to reduce the issue raised on Hemas baby
cheramy
 Pressure groups
Pressure groups influence to our company make difficult to run its business
activities therefore we need to keep informed on all our companies changes
made which enhance to maintain a smooth relationship to reduce there
influence to our organization.

2.2.1 NOTES
EXTERNAL STAKEHOLDERS Media
Government
competitors
Pressure groups Communities
CONNECTED STAKEHOLDERS
Suppliers and Shareholders
INTERNAL
STAKEHOLDERS
Employees,
Management
tet

NOTES
 2.2.2
Internal Stakeholders
Employees
They are internal stakeholders of our company as their involvement in achieving
organization objective, when executing the plan, to meet the target set by senior
management.
Connected stakeholders
Suppliers
They have connection to our company through supplying their products and
rawmaterials in bulk quantity on time to meet market demand. We can build longterm
relationship with suppliers through fair treatment and pricing and they are not involve
in companies operation activities.
Shareholders
Shareholders are in 02 types
1) Ordinary Shareholders
2) Preference Shareholders

Ordinary shareholders are few when compare to preference shareholders as their
internally involve in organization activities such as Top management decision
making, setting mission , vision and targets that should be achieved by middle and
lower level management.
- Preference shareholders are in large numbers they have connecetion to our
organization(They have voting power) but not involve in organization activities.
The devident should given first to preference shareholders and than to ordinary
shareholders.
External stakeholders
 Government
They are not connected or involve in Organization activities but they externally
influence on all department of our company through implementing various laws
and regulation that should followed by Hemas (Consumer protection act, Ethical
labour practice, Environment friendly product, ISO standards etc…). Most of the
time government entities make decision that can significantly impact on
companies operation.
 Communities
Communities are closely tied external stakeholders, companies operate within
communities. Business pay taxes but they are also informally expected by
residents to operate ethically and with environment responsibility.
Communities also lyke to see business get involved in events and local
charitable giving.
 Media
We recognize that consistant, effective, open, honest and timely
communication is important to help us to convey our aims, objective and
policies and to endorse our credibility as a publicly quoted company. We
provide corporate information through number of channels including traditional
media and through digital channels (facebook, twiter, youtube, websites,) we
ensure all times that our communication convey Hemas beliefs and values as a
external stakeholder.

NOTES
 2.3
 Relationship marketing is the practice of building longterm satisfying relationship with
key parties suppliers, distributors, employees, inorder to retain their long-term
preference and business.
The ultimate outcome of relationship marketing is the building of a unique company
asset called a marketing network. A marketing network consists of the company and all
of its supporting stakeholders: suppliers, retailers, distributers, employees, advertise
agencies and others with whom it has built mutually profitable business relationships.
The operating principle is: Build a good network of relationship with key stakeholders
and profits will follow. Philip kotler (9th Edition)
 Ladder of loyalty relationship marketing model
Christoper present a different five stage model which they term as ladder of customer
loyalty. The role of relationship marketing here is to advance relationship up the ladder.
Partners work to gather for mutual benefit and advocates are so deeply involved in the
organization that they are very loyal long term purchases but they also influence others
through positive word of mouth. Moving customers up the ladder how ever not a simple
task. Organization need to know how they can continue to offer additional value and
satisfaction that will differentiate their offering. Essentially this is through exceeding
expectation.

NOTES
 2.3.1 Partner
Advocate
Supporter
Clients
Customers
Prospects
Suspects
 Employees > Advocates in ladder of loyalty relationship marketing model
They are advocates for our company in the ladder of loyalty relationship
marketing model we have communicate well in advance about our
company(PESTEL and SWOT), Our business, and our product and services.They
will promote our business and companies products to the customers their
friends and family members where it will led the company towards the growth
of its market share.

 Suppliers > Clients in ladder of loyalty relationship marketing model
They are clients for our company in the ladder of loyalty relationship marketing
model. Building a relationship with suppliers is essential to our business good
health and growth and also building relationship with suppliers is much like
growing a client base. In order to improve our relationship with suppliers:-
 We are giving suppliers a much lead time as possible on our orders. When
developing our lead times it helps to be knowledgeable about our
supplier’s production methods and needs.
 We usually visit to our supplier’s office many times and we include them
in our strategy meeting, inviting them to our office parties and picnics
inorder to build our personal rapport with them.
 We share information about our business, keeping suppliers loop about
changes in key staff, new product lines and special promotion. This lets
suppliers know that we value the relationship.
 Consumer Affair Authority> Prospecting relationship in ladder of loyalty
relationship marketing model
We maintain prospecting relationship with Consumer Affair Authority in the
ladder of loyalty relationship marketing model. They use to monitor regularly on
our price marking, labeling and packaging of our goods and also many aspect in
distribution of the goods. As a organization we need to take into consider the
standards and specifications relating to goods because they are the authority
will inquire into complaints raised by consumers when they are consuming our
goods .

NOTES
 2.3.2
 Customer life cycle is a term used to describe the progression of steps a customer goes
through when considering, purchasing, using and maintaining loyalty to product or
service. In Laymen’s term this means getting the potential customers attention, teaching
them what we have to offer, turning them into paying customer and then keeping them
as a loyal customer whose satisfaction with the product or service urges other customers
to join the cycle.
In the figure 3.3 it is explained how the company (HEMAS) currently maintain its
relationship with each of its three most important stakeholder group.
The company the company

 Suppliers
Our company currently maintain satisfactionary relationship with our suppliers
in RLC model.They use to supply in bulk quantity regularly for hemas they are
paid on time and treated fairly for their supply of various products and
rawmaterials. They are highly satisfied by Hemas as they getting orders back to
back and increase of there goodwill in supllying for Hemas as we maintain high
position in the market. The great advantage for our company is our suppliers
are supplying for market demand and on correct time

REPORT
To:- Marketing Manager of Hemas PLC
From:- Marketing Assistant
Subject:-How Hemas build a better relationship with Consumer Affair Authority
Introduction
Hemas PLC having conducted an audit for the stakeholders plans on improving the relationship
with CAA2 (Consumer Affairs Authority). This report includes the main Mission of CAA, changes
to current marketing mix that would enable Hemas PLC to meet the needs of CAA, the impact
these changes would have on Hemas PLC current relationship with CAA and challenges the
company face in gaining the organization support and funding for the change in marketing mix.
Note
As cited in audit about three stakeholders out of that Consumer Affair Authority was
selected as Hemas PLC most important stakeholder gr
3.1) Justify why CAA was selected the most important stakeholder to the company.
CAA is the organisation which provide for better protection of consumers through the
regulation of trade and the prices of goods and services and to protect traders and
manufactures against unfair trade practice and restrictive trade practice. Moreover it is
expected to promote competitive pricing where ever possible and ensures healthy
competition among traders and manufactures of goods. Therefore CAA is selected as the
most important stakeholder to the company and Hemas needs to develop an advance
relationship with CAA because it is important to Hemas in the future.
2 CAA- Consumer Affair Authority
ConsumerAffairAuthority
Suppliers
Employees

3.1.1) The mission statement of CAA and the specific interest CAA has in social
responsibility program
 The Mission statement of CAA
“Safeguard consumer rights and interest through consumer empowerment,
regulation of trade and promotion of healthy competition”
 Consumer Right day program (As Social responsibility program)
The theme of consumer right day as declared by the consumer international was
“Our Money Our Rights”. CAA conducted a mobile awareness campaign in all
districts in Srilanka on rights day theme, Services of consumer affair authority,
Selection of a safe reliable financial institution to fulfill the require and related
institution working to protect the consumers etc… The CAA used leaflets and
brochures to educate the consumers an the leaflets were distributed to the
consumers in public places such as bus stands, railway station, market, near the
school, banks and government institute etc..The CAA obtains the assistance of
central bank too. CAA has taken steps to educate around 15000 consumers
through out the country. More over steps were taken to educate the consumers
through electronic media. A TV program was conducted by CAA with assistance of
the central bank on the world day theme. News papers supplement was
published on the theme “Our Money Our Rights”.
3.1.2) How the above Social responsibility program of CAA has a link to Hemas
directly or indirectly.
 From the outcome of Social responsibility program of CAA it can have direct or
indirect influence with company’s which can cause positive and negative impact.
As per the above awareness program which educates overall 15000 consumers on
how they want to select the product which therefore through the outcome of the
program if the consumers found themselves a great value from the product than
the amount(cost) they spend on the product then there will be positive impact on
the selection of the product and thereby to the company.
At the same time if consumers found less value from the product for what
they are paying then there will be a negative impact through consumers not
picking the product.
When we take into consider on baby cheramy brand which has an extended
product portfolio such as soup, cologne, cream etc… and the ingredients that are
included in baby cheramy products such as most preferred fragnance of-

- mothers, mildness of the product, moisturizing etc…where its having great
value. The ingredients which have key feature and benefits that most mothers
loved to have on baby product and at the same time Hemas are charging fair
price for the baby cheramy products when compare to its competitors therefore
after the awareness campaign of CAA most consumers will pick the baby cheramy
products as they found positive and a direct advantage from the product when
consider with the value they gain from the baby cheramy products also compare
to its fair price.
3.2) Recommends for changes to the current marketing mix that would enable
Hemas to more extensively meet the needs of CAA, in terms CAA interest in
corporate social responsibility and ethical issue, while at the same time no
adverse effect on consumer/customer.
 Introduction
The main objective of CAA, the stakeholder being selected are to protect
consumers and maintain fair competition in the market. Maintaining a good
relationship with this stakeholder is very vital for Hemas and for its baby
cheramy brand therefore Hemas should always consider in lining with CAA
expectation on any decision on changing of marketing mix of cheramy products.
 Products
As sited in the audit 1.3 about manufacturing of baby cheramy products
company want to be more cautious in adding ingrediants to the product there
fore the following recommendation is suggested.
When Hemas adding ingredients to baby soap in order to maintain the
moisturizing ability. The ingredients what their saying should be included in the
product as it is.
When they decide the ingredients they should be cause on selecting the right
ingredients which has no negative impact to the consumers. Because CAA will
continuously be watchful on above to determine whether Hemas uses the right
ingredients which has no side effects or harmfulness to the consumers and also
has they carry right quantity and quality of the ingrediants as it is promised
or being approved by CAA.

 Price
As sited in the audit 1.3 CAA will monitor on Hemas price marking therefore
sudden price increment is not allowed there by the following recommendation
is suggested
1} Many factors can influence the price and which makes Hemas to push the
price in order to meet their profit margin. The several factors are
 When the rawmaterial prices increase we are intend to increase the price
of the product.
 When electricity and transport expenses increase.
When employee’s wages was push to increase will affect the pricing.
Therefore sudden price increment is not
allowed in order make the price increment for the product it should be made
with the approval of CAA.
2} In the event of a new product being launched in a specific area/region by a
small player in order to kill them Hemas should not come up with unethical
promotion campaigns such as huge price offs for a longer period or sudden
price reduction etc.. These activities can affect the relationship between
Hemas and CAA which is not good for the business health therefore Hemas
should focus on not to launch above stratergy and thereby help maintaining
fair competition in the market.
 Place
Mothers like to purchase baby products where its available in clean
environment outlets also CAA will monitor that the companies placing their
products in right/suitable outlets therefore company should distribute the
products in right outlets, channels etc…
Baby products: Pharmacies, supermarkets and outlet which can have clean
good environment. Not in hardware or dry fish shops etc… which can cause
negative impact and destroy the image of companies products not only with
CAA but also with consumers
 Promotion
For baby products the target customers are mothers therefore the
advertisement what the company plan to telecast in television or providing
information through social medias such as youtube, podcast, facebook, twitter
should be ethical and it should show the relationship of how mothers caring
there childrens in a positive manner to win the hearts of mothers and should
be inline with CAA rules and regulation. Also advertisement should not promis
something which your product cannot deliver hemas should always promis
what it can deliver there by to protect customers.

3.3) Evaluating the impact on the above changes would have on Hemas current
relationship with CAA including their potential to give Hemas a competitive
advantage.
 Introduction
As sited in 1.2 in the audit the relationship the company has with CAA is average
and its currently only at satisfactionary level of the RLC 3 model. The recommended
changes above would have the following impact on the current relationship Hemas
have with CAA.
 . Relationship Life Cycle Model Consumer Affair Authority
The company the company
 Product
As cited in the audit 1.2 hemas currently maintaining satisfactionary
relationship because its delivering the cheramy products continuously with
promised quality and quantity(ingredients) in line with CAA rules and regulation
which it will create confident to CAA on baby cheramy ingredients that the
company including and the final quality of the product. Through increasing the
confident with CAA company can enhance the relationship with CAA. This
results Hemas to gain many competitive advantage in the future such as.
 CAA want double check on our products of its each stage of the process.
 As CAA is confident customer want hesitate to pick the product regularly
for their babies.
 Brand image will raise as Hemas delivering high quality baby products
3 RLC- Relationship lifecycle

 Promotion
All promotion material of Hemas should ensure to communicate only what its
product can deliver to consumers and thereby Hemas can comply CAA
regulation of not misleading consumers through false promises. Also should be
more selective on there communication mediums because they deal with baby
products which are very sensitive to handle. These adaptation will enhance the
relationship of Hemas with CAA there for it will not be an issue for Hemas to
market their product in future. Further more they also can seek help of CAA for
their promotional campaign(to include CAA name in packaging to give more
confident on the product to consumers) as an when required this will create a
greater competitive advantage for Hemas resulting in increase in sales.
 Place
Hemas changes to the above recommendation to take necessary to maintain
standard recommended procedures by CAA through out distributional channel
(Manufacture-Consumer) such as :- recommended temperature,
recommended stacking height etc..Through this hemas can ensure protecting
consumer by giving them the product in the same quality from where its
manufactures. This will create consumer loyalty for Hemas baby cheramy
products and there by greater confident with CAA therefore it will be good
competitive advantage for Hemas to reach more consumers who will not
hesitate to purchase hemas baby cheramy products as CAA is confident on
that.
 Price
As mention in the report 3.2 many factors will influence pricing of the product
because of those factors hemas cannot increase the price suddenly as it is not
allowed by CAA. Inorder to get the approval it need to provide the case which
including
Increase in the cost rawmaterial compare with last year to this year
Increment in the transportation cost
Increase in tax in importing goods
Increase in promotional cost
And also company need to provide marketing audit report to CAA. After
Hemas providing these information with approval of CAA if Hemas increase its
price there want be any issues from CAA for Baby cheramy products therefore
through being comply with CAA rules and regulation hemas can build its
relationship forward with CAA and consumers will also pick the product with
not only for the brand loyalty also Hemas has increase the price with the
approval of CAA and this will be a competitive advantage for the company as

consumers will pick the product without any issues on pricing of the product --
-being made.
3.4) Challenges Hemas face in gaining organization support and funding for the
above recommendation done report 3.2
 Convincingotherdepartmentwithin the organization
 Supplydepartment
When Hemas tries to improve the quality of the products which they produce and ensure that
the same is maintained in order to ensure the consumer receives the agreed quality. It mostly
depends on the ability to get the best quality of rawmaterial through out for the production
which is the responsibility of supply department. Since they would have got used to routine
purchasingpatternof rawmaterials andneededmaterial toproduce the product,if Hemas need
a change toimprove the qualitysupplywill seethisasa difficulttask and more over they would
not be happy to change the way that they were handling their job just because of marketing
people requirement, therefore this will be a challenge for us to face with.
 Acounting department
Accounting department need to release the funds to get the rawmaterials and the correct
Ingrediants to improve the quality of the product there fore they also will face certain issues
inorder to release the funds. The issues are
 They will face a situation in loss in margin inorder to fund for the
recommendation made in the report 3.2
 They will face a cashflow issue
 They will face a net revenue issue etc…
 Logistic department
Logisticneedtobe carried outeffectivelyandefficienly,throughthe mostappropriate
allocationof resourcesalongwithsupplychain.Inordertoimprove the qualityof the product
It needbe supplyingthe rightproductstothe rightplace at the right time therefore the
challengescanbe facedare to improve the qualityneedtobe more focus,needtobe strictly
compliance of requiredstandardetc…

 Resistance from employees
Employeeswill resistsuddenchangesinmanufacturingthe product (To improve the quality of
babycheramyproducts) where theywill need tochange the skills and pattern their working to
improve the quality of the product such as:-
 Employees will be specialize in current working style as for the sudden change
theywill need to change their working style where they might feel it as an extra
burden.
 Sudden change will force the employees to work for extended working hours
where they need to put more efforts inorder to improve the quality of the
product.
 As the employees are dealing with baby products already they are focus in
delivering the quality product for babies without harming their soft skins
There fore inorder to improve the quality of the product they need to be more
forcus.

Background to the company
Hemas group founded by sheikh Hassannaly Esufally (MBE) as phamacuetical and trading
entreprice commencing operation in 1948 is listed in CSE. Based in srilanka, Hemas takes pride
in offering affordable, practical and high quality products and service in its specialized of
FMCG4, Pharmaceutical, Hospital, Transportation, Liesure and Power. Involved in
manufacturing, import and export and distribution products. Hemas have introduce several
reputed brands to market. They offer quality and reliable services in every possible way. Our
commitment to customer is reflected in hemas unparalled service offering which are backed by
the vast expieriance and solid expertise of our competetent team.
Products of Hemas
Hemas FMCG strives to your life style via innovative trusted and exemptional products that
offer greater satisfaction in every day use. A leader in personal care sector, Hemas brand
encompass a range of products for babies and adults in hair care, skin care, Toiletries, fragnace
and oral care
 Hemas brands
Catergory ProductMix
 Personal care Baby cheramy, Clogard, Dandex, Pro, Kumarika, Gold, Goya,
Paris, Fems, Capri
 Home care Diva
 Skin care Cheramy touch
 Paper Products Nimex
 Personal wash Velvet
 Traded brands Godrej, Paracetol
Table-1
Position of the company in the market
Hemas has strong competition and challenging market condition sector maintained its market
position through continous efforts to offer trusted and exceptional products that offer greater
satisfaction to consumers. Timely management intervention and focus on basics enabled the
company to overcome the challenging environment.
4 FMCG- Fastmoving consumer goods

Table-2
Figure-1
Customer groups of Baby Cheramy
Baby cheramy competes in the baby toiletries and accessories market, catering mainly to new
borns upto one and half years old. Approximately 340 000 babies are born each year in srilanka
Its primary target audience is first time mothers in upper middle to lower income groups.
Figure-2
0
5
Hemas Unilever CIC
Holdings
Nature
secret
Siddhalepa
Market share
Customers
Middle Income
Lower Income
Upper Income
Others
Company Baby soap brands
 Hemas Baby cheramy
 Unilever srilanka Pears baby soap
 CIC holdings Johnson & Johnson
 Nature secret Panda Baby soap
 Siddhalepa Kekulu Baby soap

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