“THE IMPORTANCE OF UNDERSTANDING THE

STAGES OF CONSUMER BUYER BEHAVIOUR AND THE

ENVIRONMENTAL FORCES THAT WOULD IMPACT ON
THE MARKETING OPERATIONS OF AN
ORGANIZATION IN DEVELOPING THE MARKETING
MIX ELEMENTS”

Prepared By

N.D. Indrajith

0000047430

Colombo - Slim

July

Professional Certificate in Marketing

SRI LANKA INSTITUTE OF MARKETING

 Assignment Marking Scheme – PCM II - 2021
(For the use of the examiners only)
Programme Professional Certificate in Marketing

Examination PCM II 2021

Assignment Topic “The Importance of understanding the stages of consumer

buyer behavior and the environmental forces that would impact
on the marketing operations of an organization in developing
the marketing mix elements”

Student Registration
Number (to be filled
by the students)

Allocation of marks (Please Use only a RED PEN from this point onwards)

Area of evaluation Weightage Marks Awarded

Task 01 10%

Task 02 25%

Task 03 30%

Task 04 15%

Following assignment 20%

guidelines

Total 100%

Final marks of evaluation

Overall comments by the examiner

100

Signature of Examiner Signature of

& Date
Education officer
 ASSIGNMENT TOPIC
“The Importance of understanding the stages of consumer
buyer behaviour and the environmental forces that would
impact on the marketing operations of an organization in
developing the marketing mix elements”
CONTENT

Today’s successful organizations are strongly customer-focused, innovative and heavily

committed to research & development. These organizations share a passion to understand
customer needs, behavioral habits and develop products to offer superior customer values.
Further, they develop tactics accordingly and decide on pricing, distributing and promoting
their products effectively in the well-defined target markets. In addition, they motivate
everyone in the organization to build strong customer relationships to create greater
customer value.

Both macro and micro environments can have a significant impact on the success of
marketing strategies, and therefore the factors included in these environments should be
analyzed in-depth whilst developing a marketing mix for the organization.

TASK ONE

Select a FMCG based organization of your choice, which has multiple products, and give a
brief introduction about the organization and 03 of their product categories.

(10 Marks)

TASK TWO

With reference to the selected organization in Task One, select one of the products and
discuss the consumer buying decision process with reference to that selected product

(25 Marks)

TASK THREE

With reference to the selected product in Task Two, carry out a detailed analysis of the
marketing mix elements and identify unique features therein.

(30 Marks)

TASK FOUR

Identify and explain the Micro and Macro environmental forces which would impact on
the marketing operations of the selected product in Task Two.

(15 Marks)
Table of Contents
1. Executive summary ........................................................................................................ 5
2. Introduction .................................................................................................................... 6
3. Company Introduction .................................................................................................. 7
3.1 Company Profile ........................................................................................................ 7
3.2 History of Hemas ....................................................................................................... 7
3.3 Purpose and Vision..................................................................................................... 7
3.4 What is FMCG ........................................................................................................... 8
3.5 HEMAS FMCG Product and Brand........................................................................... 8
4. Consumer Buying Decision Process ........................................................................... 10
4.1 Need Recognition ..................................................................................................... 10
4.2 Information Search ................................................................................................... 11
4.3 Evaluation of Alternatives ........................................................................................ 13
4.4 Purchase Decision .................................................................................................... 14
4.5 Post- Purchase Evaluation ........................................................................................ 14
5. What Is the Marketing Mix ........................................................................................ 15
5.1 Product ..................................................................................................................... 16
5.2 Price.......................................................................................................................... 17
5.3 Place ......................................................................................................................... 18
5.4 Promotion ................................................................................................................. 19
6. What Is meant by marketing environment? ............................................................. 22
6.1 Marketing environment framework ......................................................................... 23
6.2 Micro Environment .................................................................................................. 23
6.3 Macro environment .................................................................................................. 25
7. Conclusion .................................................................................................................... 28
8. Recommendations ........................................................................................................ 29
9. References ..................................................................................................................... 30
1. Executive summary

This assignment was to persuade importance of understanding customers behavioral

habits. Today the organization has a strong focus on customers, and they are always striving
to increase customer values. For that they need to understand buyer behaving process,
advantage of having well blended marketing mix and impact of macro and micro
environments.

For that I have researched and gathered informative details about the product of Clogard
toothpaste under the Hemas PLC Holding company. As a product, clogard has expanded
to various ranges and achieved successfully Considerable market share in oral care
segment.

Based on the Clogard toothpaste this assignment emphasizes the importance of

understanding the consumer buying decision process and discusses how to develop
marketing mix elements based on the target customers Is also about what are the strategies,
attributes they have, and how they have given value to customers through the product. Also,
how macro- and micro-environments have a significant impact and as a product how to
deal with it is also discussed
2. Introduction

In today’s competitive marketing world, the availability of products is endless.

Therefore, consumers have a lot to choose when buying a product. Because of the variety
of hands in the trading world the choices of each consumer and their satisfaction are also
different. As consumers choose products to their satisfaction marketing is constantly in a
competitive phase. Some consumers consider only the brand name when purchasing goods
based on their long-standing belief in that name while other consumers who only consider
the quality of the product not the brand name. companies need to know about consumer
buying behavior in order to proceed and develop marketing mix well, together with
focusing on impact of macro and micro environment forces.
3. Company Introduction
3.1 Company Profile
HEMAS Holding PLC is the one of largest diversified group in Sri Lanka. Hemas
intention is “To Help families live healthy”. They are interested in five key sectors. Those
are personal care, healthcare, mobility, leisure and strategic investment. Hemas is a well-
known listed company with over 8000 employees. Furthermore, Hemas has expended their
operation in India, Bangladesh and Myanmar, to give healthful living to life through their
products.

3.2 History of Hemas

Hemas first business was Hemas (Drugs) Limited founded by Sheikh Hasannally
Esufally MBE) in 10th December of 1948. In 1962, they collaborated with a French
multinational company to manufacture toiletries. They moved in to travel and tourism
sector in the seventeen centuries and they came to the leading position. In 1993, HEMAS
(Drugs) Limited renamed and restructured as HEMAS Holding PLC. Another important
milestone was Invest in the health sector and the opening of the first Hemas hospital in
Wattala. Further Hemas became a public quoted company listed in the Colombo Stock
Exchange in 2003.

3.3 Purpose and Vision

When Hemas started, they had a simple goal of “Make Healthful Living Happen”.
Their company profile changed but their purpose never changed.

“To be the best at Enriching Lives” of Hemas vision. They strive to enrich customers
life via trusted, exceptional and innovative products.

HEMAS Logo Kasturi Chellaraja Wilson (CEO/ Director)

 3.4 What is FMCG

FMCG is Fast Moving Consumer Goods. Those products are Highly in demand, sold
quickly, affordable. From marketing view point there are four categories in FMCG. Those
are, Convenience, shopping, specialty and unsought goods as well. Toiletries, beverages,
package food, personal care product, plastic product, less expensive consumer electronic,
as well as cleaning and laundry products come under the FMCG. An FMCG organization
is a company that produces any of these good.

FMCG product customers use regularly, therefore day by day. FMCG product
manufacturing company must need to understand and aware of market and their customers.
They always need to be innovative and creative.

3.5 HEMAS FMCG Product and Brand.

Hemas always look forward to give customers happy and healthy lifestyle. As a leader
in the personal care sector they are trying to provide trusted, quality, and affordable product
to the customer. They have been covered a huge range of market with their multiple product
and brands. Product categories such as skin care, hair care, toiletries, fragrances and oral
care.

As multiple product organization they owned popular and profitable brand. As an

example, Clogard, Kumarika, Diva, Gold, Dandex, Goya, and Velvet. Etc.:
 a) Oral care product,
Oral care production, clogard toothpaste is a better solution for oral issues. Since 1992,
clogard take the leader in oral care sector and making Sri Lankan smile brighter. Clogard
is a unique product that provide lots of advantages such as, freshness breath, fight against
cavities and strengthen enamel, such as. Further clogard was the first toothpaste brand to
have an SLS certificate. As well as Hemas provide mouthwashes, toothbrushes under the
clogard brand. As a leading brand they strive to build cavity free environment.

b) Hair Care product

In hair care product segment kumarika products have achieved very important and huge
market range and also their customers loyalty. “nature’s goodness to beautiful hair” through
that we can understand their purpose very clearly. Formulated with full of nature
ingredients. Because of that they have been able to get customers trust and loyalty
generation by generation. Further, under the kumarika brand Hemas had introduced hair
shampoo, Hair oil, and conditioners, market to give healthier scalp along with a beautiful
hair.

c) Laundry care product

In 2003, Hemas launched a laundry product called Diva as a solution for homemaker’s
laundry. Diva is multitask washing powder, the fragrance of Diva laundry powder gives
the fabric a better scent while fiber clean technology and optical brightener give cleansing
and shine to the clothe (3 in 1 action). Diva is a better solution for laundry efficiently for
those who lead a busy life and they can manage their time and reduce labor cost.
4. Consumer Buying Decision Process

Consumer buying decision process, how far customers know about a product and after
that how they gonna make purchase decision. Buyer decision process consists of five
stages, Need recognition, Information search, Evaluation of alternatives, Purchase decision
and Post- purchase evaluation.

4.1 Need Recognition

Need recognition is the first stage of the buyer decision process. Need recognition
happens when customers recognize the difference between the current state and expected
state. These problem or need can be internal stimuli or external stimuli.

There is my friend, named Nuwan. Every day he struggles with dental cavities. can’t eat
properly, struggle with bad breath, can’t smile or talk properly, can’t be more socialize and
pain is the worst part in that case. Then he wants to come out that situation, need proper
oral care product. This is called the need recognition.
 4.2 Information Search
The second stage of consumer buying decision process. After the need recognition
customers seek for solutions to satisfy his/ her needs. Thus, consumers engage in searching
for information. There are two types to search information. Those are internal search and
external search.

Nuwan need to find a proper toothpaste for dental cavities. So, he started to search
information to find a best toothpaste. Therefore, Nuwan searched on the internet for best
tooth paste, and found lots of products. Also, he asked me and I recommended him some
kind of brands That’s what called the internal search. After all the searching he found some
toothpaste brands, So, here are some products he found, Clogard, Signal, Sensodyne, close
up, Ayush.

Here some advertisement,

Clogard advertisement.

Signal advertisement

Sensodyne advertisement
Price list,

Clogard Price list

Signal price list

Sensodyne price
 4.3 Evaluation of Alternatives
This is the third stage in the buyer decision process. After collecting information, the
customer will evaluate alternatives based on the information gathered. At this time
customers will be comparing to alternatives product attributes one by one.

In that stage Nuwan need to be focus and logically think which brand/ product could
highly satisfy his needs. Have to evaluate, to know which brand is worth the price and what
are the benefits, among the alternative product. Also need to evaluate product history and
reviews.

• Evaluate alternatives,

The summary of the alternatives are tabulated using the information is as follows.

Company Brand Name volume Price Values

Hemas Clogard 160g Rs.125 Fight with germ, Cavity
protection, freshness breath,
strong teeth, strengthen
enamel, minimize plaque,
use natural ingredients,
endorsed by SLS.
Uniliver Signal 160g Rs.150 Strong teeth, strengthen
enamel, cavity protect,

GSK Sensodyne 120g Rs,695 Mint taste, sensitive relief,

cavity protect
 4.4 Purchase Decision
Purchase decision, next stage of consumer buyer decision process. In this stage, customer
choose which brand or product going to buy he/she, basically on the output of the
evaluation of alternatives. Further, sales team attitude, product availability and alternative
stores should be considered.

So, through the evaluation of alternatives Nuwan choose to buy Clogard. Because,
clogard satisfying his main problem cavity issue and also, Clogard was manufactured using
natural ingredients. Furthermore, clogard provide lots of benefits and attributes more than
other brands. Hemas is a Sri Lankan company and Nuwan also prefer local brands.

4.5 Post- Purchase Evaluation

The last stage of buyer decision process is post – purchase evaluation. Indeed, the focus
here is on the difference between expected level and actual level performance. In that case,
the customer decides whether he/ she is satisfied or dissatisfied with the purchase of the
product. In this stage, customers start to think purchasing the product was the right decision
or not.

After using Clogard, my friend Nuwan became a very different person. He began to talk
and smiles with others without fear and he became more sociable. Clogard was a better
solution to his dental cavity problem. According to the Nuwan, Products actual level goes
past the expectational level as well.
5. What Is the Marketing Mix

“Marketing mix is the set of set of controllable, tactical marketing tools that the
firm blends to produce the response it wants in the target market”
(Philip Kotler – 12th edition)

Simply Company uses the marketing mix to develop their marketing program. The
marketing mix includes four main elements, called “4 p’s. These are Product, Price, Place,
Promotion (Traditional marketing mix) as well. Furthermore, in new modern world of
marketing, People, Process, Physical evidence included in the marketing mix (extended
marketing mix elements). Thus, the total number of elements included in the marketing mix
is 7. They are called “7 p’s

• Product
• Price
• Place
• Promotion
• People
• Process
• Physical evidence.

This report elaborates the Product, Price, Place and Promotion elements used by
clogard.
 5.1 Product

A product is anything that is offered to a market for use or consumption that can satisfy
the needs and wants of the customer.

In 1992 Hemas launched ‘Clogard’ toothpaste as ‘time tested goodness of clove oil and
scientifically tested fluoride’. Clogard is unique product because it was manufactured using
Sri Lankas trusted traditional ingredients. Clogard comes pure white and with a distinctive
spicy flavor. It includes natural clove oil as main ingredient.

Now Clogard toothpaste have expand to various features,

• Clogard cavity protection

• Clogard fresh blast gel
• Clogard natural salt
• Clogard Chooty toothpaste

Further moreover Clogard fresh blast gel have several variations, spicy red gel (clove +
eucalyptus), cool blue (salt + mint), soothing green (lemongrass + aloe Vera) and orange
(cinnamon + propolis) as well. Their product is available for adults and for children.

Clogard toothpaste is available in many sizes 15g, 40g, 70g, 175g jumbo pack and 200
milliliter bottles.

If taken the quality of Clogard, fights with germ, protects cavities, fresh breath,
strengthens teeth and enamel and also clogard is the first toothpaste brand to endorse SLS.

Clogard toothpaste comes in tube cover with a box. The cover surface contains all the
data, Ingredients, expiration date, date of manufacture, etc. Its looks very attractive from
outside they consumers can find it among other products.

Packages of clogard
 5.2 Price

Price is value of the product that consumers agree to pay. Pricing can be tricky and its
always very sensitive. Because a well-balanced price allows you to stay competitive while
creating a good level of profit. When pricing for the product, should also consider supply
costs, competitors price, not only product value.

Here is the price of each clogard product,

Product Volume Price

Clogard cavity toothpaste 40g Rs.67.00

120g Rs.118.00
160g Rs.125.00
200g Rs165.00
Clogard fresh blast gel 120g Rs160.00
40g Rs.67.00
Clogard chooty 40g Rs.110.00
toothpaste
Clogard natural salt 160g Rs.145.00

The table show the price range of clogard toothpaste in the Sri Lankan market (with
discount prices can be different). Now we compare prices with competitive product.

Brand Volume Price

Sensodyne 120g Rs,730.00
Close up 120g Rs.165.00
Signal 160g Rs.150.00
120g Rs.109.00

After that, we can see Clogard offers affordable and responsible prices for their
customers.
 5.3 Place

Place means ensuring that ‘target customers’ get products at the ‘right place and ‘right
time’. Thus, fulfilled to place requirements company needs better and strong distribution
chain. As well as wholesalers, agents and brokers, retailers, distributors, franchisees and
modern trades. Those are called channels of distribution.

So, clogard have a strong and wide range distribution chain, their manufacturing factory
is located in Dankotuwa. They have over 106 distribution agencies. They have created
unbreakable distribution chain in the country and overseas.

If we want to buy Clogard toothpaste we can purchase it from any grocery stores,
supermarket all over the country, also we can buy through the online platform. As an
instance Daraz, Kapruka, Wasi.lk and also Hemas online store. Here are few online
platform screen shots.
 5.4 Promotion

Promotion refers, how are consumers knowing about the available products and how
organization introduce their product and entice customers to buy their products. It’s all
about promoting.

Now let’s take a look at how clogard promoting their toothpaste. They have started to
positioned their product through the Tv campaign. They are promoting importance of clove
oil and fluoride. Clogard toothpaste promoting as ‘Sri Lankan No 1 cavity protector’ and
“Our trusted oral protector for generations” refer that they always trying to give the best
product to customers.

Clogard target market is entire family and their advertising mainly focused on clogard
efficacy. That's why they say that toothpaste does not need strips.
 a) Promotional activities of Clogard
• Clogard fresh blast gel provides safe drinking water to North central schoolchildren.

• Clogard rewards Sri Lankan families who pledge for a cavity-free Sri Lanka.

• Clogard assists in protecting Sri Lanka’s environment and heritage.

• World oral health day with cavity eradication campaign. Clogard contributes to
raising awareness of oral health across the country in the fight against cavities.

• The Clogard team provides free dental check-ups.

• Also, they use social media platform for promotion. Because nowadays everyone
deals with social media. Facebook, YouTube as well.
6. What Is meant by marketing environment?

The marketing environment is the influence of internal and external forces on the
marketing function to build and maintain strong customer relationships.

6.1 Marketing environment framework

6.2 Micro Environment

It is the environment that owns the forces closets to the company that affects its ability
to serve its customers. Include actors are,

• Suppliers
• Intermediaries
• Competition
• Customers
• Publics
 a) Suppliers

Suppliers are those who that supply materials, service to an organization and supplying
product to customers. Clogard have strong suppliers’ chain. That’s why they can provide
their product to customer without any failure. The main raw material is sourced locally.
Also, they import some ingredients from foreign country.

b) Intermediaries

Intermediaries are the one who distribute product to the final customers. They have an
intermediary chain such as wholesalers, agents and distributors. Clogard has a bidden
intermediate chain. Clogard distribution home is located in welisara. Also, they are supplied
directly to the retailers as well.

c) Competition

Competitors are the organizations that act in similar markets and target similar
customers. It can produce or sell same product. So, Clogard’s competitors are Signal,
Ayush, Close up and Sensodyne. Clogard always try to improve customer value through
their product. That’s why Clogard toothpaste has a considerable market range and loyal
customer base than other brands of products. They always provide quality product with
affordable price.

d) Customers

Customers are the people who purchase goods and services. In a commercial
environment, no customers mean no business. In that case, organizations need to keep in
touch with customers to understand changing needs and create wants as well. Clogard
always in touch with customers, as an example, everyone worries about bad breath. As a
solution clogard introduces Sri Lanka's first gel toothpaste that fights germs and provides
lasting fresh breath. Clogard’s customers are always loyal to their products.
 e) Publics

The public is the group that has a real or potential influence on a company's operations.
The aspects of public, financial publics, local publics, media publics, government publics,
general publics. Clogard always fulfills social responsibilities.

They do CSR program like ‘Jala Mula Rakimu samonala Gira’ This project leading to
protect Sri Lanka’s environment and heritage at Sri paada.

6.3 Macro environment

Macro environment refers that the major societal components that can affect the
organization and microenvironment elements. These elements are considered
uncontrollable. There are 7 main forces. Commonly referred to as PESTEEL forces.

• Political environment
• Economic environment
• Social and Culture environment
• Technological environment
• Ecological environment
• Ethical environment
• Legal environment

a) Political environment

Political is a less predictable element that impacts the organization. The clogard must be
vigilant about stability in politics and governments, government Policies, taxes policies,
new forms of non-tariff barriers should be monitored. Especially as a global product should
know what are the government global policies.
 b) Economic environment

The economic environment is the level of demand in the economy. It can be simply
explained as the purchasing power of the customer. Content Features Income Distribution,
Inflation Level, Investment Policy, Savings Habits, etc.;

As an example, in pricing, Clogard is concerned with the distribution of per capita

income and taxes. That is why they can provide products at an affordable price to the
consumer.

c) Social and culture environment

If company focus social and culture environment, they can clearly identify what are the
customer’s needs and wants, their life style, values and behaviors. It could be helpful to
enhance the product and give value to the customers. Through that, they can select their
target market and customers.

d) Technological environment

New technology help to innovate to new product variation like clogard fresh blast,
Natural salt as well. Social media can be used for advertising and marketing with the
advancement of technology. Also, in this pandemic situation, we can purchase clogard
through an online platform.

e) Ecological environment

An organization should be concerned about pollution, resource depletion, and the impact
of the production process on the natural environment. Clogard implements projects to
protect the environment and heritage. They know how importance of nature because they
use natural ingredients.
 f) Ethical environment

Marketing ethical are moral philosophies that define right or wrong behavior in
marketing. Clogard ethical decisions related to marketing issue,

Ethical issue Clogard ethical decision

Product issue Supply quality product, use natural

materials, endorse by SLS

Price issue Offred affordable price, considerable

discounts, Lack of predatory pricing

Place issue Well-managing and planning distribution

channels.

Promotion issue Correct advertising of the product.

Always informed customer.

g) Legal environment

Changes in the political environment affect the legal environment. Clogard toothpaste
produces per government law and the Sri Lanka Standards Institution. As a global product
they always monitor trade law.
7. Conclusion

Although there are many competing toothpastes, Clogard toothpaste is a better product
as a natural product. As a product they provide values for customers, as well satisfy their
needs and increase customers loyalty.

Clogard has a better understanding of the stages of consumers' buying behavior, what
decision to make, it impacts on understanding customer needs and creating wants. In return,
they were able to design a well-blended marketing mix. Therefore, Clogard has able to well
manage macro and microenvironment forces how they impact their production operations.
As a result, in a competitive market, they have been able to successfully beat competitive
products and expand the market to reach their purpose. According to my study clogard
toothpaste has reached a huge milestone in the oral care industry.
8. Recommendations

From the beginning Clogard trying to create ‘Cavity free Sri Lanka’. To achieved their
purpose, they need long term plans. Always required knowing what are the boundaries and
advantages

Nowadays people are starting to give more priority to natural products. In such case,
Clogard toothpaste is on top. They can improve their product as they always do. In my
recommendation, they can improve clogard toothpaste as healing product. All of toothpaste
mainly focused on strong teeth, whitening teeth and cavity protector. Furthermore, as a
natural oral care product, clogard can use natural ingredients for that. The main purpose
should be the product is to ‘remove cancerous lesions and prevent the development of oral
cancer’.

As another recommendation, the world today is focused on being eco-friendly. So

Clogard can produce their products in an eco-friendly way. Accordingly, the packages and
toothpaste tubes they use can be designed to be decomposable or reusable.
7. References

• Pcm study pack – SLIM

• www.hemas.com
• https://www.hemas.com/consumer/home-and-personal-care/clogard/
• https://www.brandsearch.superbrands.com
• https://www.hemas.com/history-milestone/