SUSTAINABLE DEVELOPMENT OF SRILANKA THROUGH A HARBOR

Prepared By Group 4TOPS’s

A.S.M RUSITH

Reg. No:

Integrated Assignment (FNL 105) December 2010 Examination

Certificate in Marketing Postgraduate Diploma in Marketing

SRI LANKA INSTITUTE OF MARKETING
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Table of Content
1.

Executive Summary
1 2-3 2 3 3 4-8 5 6 6 7 7-8 7 7 8 8-10 8 10-11 12-13 13 14 14 15
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2. Introduction

2.1 History 2.2 Adventure of Harbor 2.3 Health Harbor
3. Research findings

3.1 World tourism 3.2 Tourism demand volume and value
a) Seasonality of Arrivals b) Average duration of stay and tourist nights.

3.3 Tourism Supply
a) Accommodation Supply b) Tourist prices c) Public sector revenue
4. Current packages

4.1 The current packages and its offerings are listed below.
5. Macro Environment 6. SWOT Listing

6.1 SWOT Analyzing
7. Objectives 8. Segmentation, Targeting, Positioning

9. Why Europe market?

10. Introduction to the product

15-19 19 19 19-21 20 20 21 21 21 22-23 24 24-27

10.1 Product related offerings 10.2 Pricing Strategy
11. Promotions

11.1 Promotional mix includes the following
a) Advertising b) Sales Promotion c) PR and publicity d) Direct Marketing 12. Promotional Budget 13. References 14. Questionnaire

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Home logistics including power plants and oil refineries are projects that are become up of day by day. human rights not consider and etc…. Through intensive research the following fact was reveled according to construction of a harbor. When developing harbor in our country. which are cultural effects. 4 . have now secured opportunity to actively engage in development work after several decades of civil unrest. If harbor make without the problems and the harbor will assist to develop our country within few years. It is listed under “Developing country” category in the global ratings. due to the amazing attractive site seeing. rail ways. However not only the advantages there will be some advantages are when developing a port. Executive Summary Sri Lanka is known as a pleasure island and it is called as the pearl of the Indian Ocean. transport systems & distributions are redefined and realigned. It is useful to develop our country via Economic. According to the harbor the high ways.1.

empire-builders and admirers. poets.1 History Sri Lanka is a major part of the ancient world. For countless centuries its fragrant spices. Historical evidence reveals that the region in that era was blessed with fertile fields and a stupendous irrigation network. but plans never got out of conceptual stages. 2.2. including refueling. priceless gems and pearls. logistics and buying provisions and medical supplies Proposals to build a port date back over three decades. Most of the foreigners ruled our country due to its marvelous resources.2 Adventure of Harbor 5 . However the only major port in Sri Lanka. sublime culture and friendly people captivated princess.500 oil tankers.000 ships. and also provide services to ships that normally take threeand-a-half day detours from their shipping lanes to receive these services. Any way Sri Lanka already developed however it wants to develop as well so it wants to build some facilities like harbor and etc. 2. including 4. maintenance. If a new port will be proposed in Sri Lanka it will help relieve pressure on the Colombo port an other port in Sri Lanka. the Port of Colombo is catered towards container handling and is unable to provide facilities for port related industries and services . An estimated 36. legendary beauty. use the route annually. which links Asia and Europe. Introductions and Backgrounds Sri Lanka is situated along the key shipping route between the Malacca straits and the Suez Canal. traders. Legend as well as history record that Sri Lanka has always delighted visitors and investors to its shores.

There are a number of factors to the expansion of the industrial sector of that region. For that fishermen can earn relatively large sums of money during limited fishing seasons. the opportunities are almost limitless clearly providing a ‘ground floor’ opportunity for investment. • Fisheries Fisheries harbors are expanding and developing as support facilities for fishing activities. Animal husbandry Animal husbandry is another economic activity which is carried on successfully in that c) Tourism 6 . a) Investment opportunities Harbor project will lead to change and development of great magnitude opening opportunities for many sectors. Today a few industrial zones are already operating in Sri Lanka. b) Agriculture • Cultivation The development of the agricultural sector could be enhanced and with a systematic approach. Traditional skills of the people are another factor that will help industrial programs in the future. With work on the projects just beginning. the fishing industry engages many people in the country due to the vast extent. • particular place. and tourism. once again brought back to the level of greatness it enjoyed in the days. agriculture.etc. which are investment opportunities.Sri Lanka has opportunities.

Sri Lanka has sea facilities to create harbors easily. The potential for vibrant tourism is very promising given the all activity planned for the region and the development envisaged. There is wide variety of interesting sites activities to cater to the interests of everyone. 7 . possibilities for the hospitality trade are tremendous.

building and channeling services of ships. International customers. private investment services. building and channeling services. banking services and private and public institute services…. Storage services. Custom clearance services. supplying . supply of water.etc. . export and import services. Task-1 3. The services are bunkering. supply of fuel. The person who actually makes purchase decision on above services from the harbor is known as the customer of the particular harbor. Supply of fuel. National ship companies Ship bunkering . empty storage services. which are • • Local/National customers. supply of power generation. TYPES OF CUSTOMERS Auto dealers PAYING FOR THESE SERVICES Export and import service. Generally the customer can be classified into two types.3. Ship owners 8 Ship bunkering services. repairing. a) local customers The person who (is in our country) makes purchase decisions is known as local/national customer.1 Customers of the harbor Generally the customers of harbor can be divided according to service of the harbor. insurance services.

Local shipping companies Export and import services. Manufacturer Export and import services. 9 . Supply of fuel. Cement companies. Fertilizer factories. Port related product companies 1.Ship repairing services. Customer clearance services. 3. Storage services. Ship building services. Insurance services. Custom clearance services. Fishing factories. 2. Storage services. Export and import services. Retailers Insurance services. Petrol cooperation Supply of fuel. Local travelers Travelling services. Supply of power generation. Supply of water. Ship channeling services. Storage services.

Ship repairing services. Supply of fuel. TYPES OF CUSTOMERS Auto dealers PAYING FOR THESE SERVICES Export and import service. Storage services. Ship channeling services. International ship companies and international port authority Ship bunkering . Cement companies. Ship owners Ship bunkering services. Supply of water. Storage services. Custom clearance services.b) International customers The person who (is from two or more country) makes purchase decisions is known as International customer. supplying . Custom clearance services. 10 Export and import services. Port related product companies 1. Ship building services. . Global shipping company limited Export and import services. building and channeling services.

Storage services. Supply of power generation.etc. Petrol cooperation 1. International Retailers Insurance services. Insurance services. Travelling services. Tourists Supply of fuel. International Manufacturer Export and import services. Fertilizer factories.. 3. 11 . Fishing factories. Supply of fuel.2. Storage services. Customer clearance services.. OPEC.

we want do a customer research on them. To know about our customers. The consumer research process of theoretically Defining the objectives ↓ Collecting and evaluating the secondary data ↓ Designing the primary research ↓ Collecting the primary data about customer ↓ Analyzing the data ↓ Preparing a report 12 .3.2 Research findings to understand customers theoretically and practically A marketing research can be defined as an objective systematic approach of collecting. Any way when we are approaching them we are making some practical and theoretical approaches. analyzing and interpreting data for betterment of marketing decision making in that case the consumer research of a part of marketing research .

b) Secondary data Base on the objective intensive secondary research was conducted and the following were reveled through the website and journals . Ship channeling services. Export and import services.customers who are related with these services. • • • • • • • • • • • Insurance services. Supply of fuel And etc. Storage services. Ship repairing services. Supply of power generation. Ship building services. These secondary data help to identify suitable customers of our new project of harbor and also direction and clues of the primary data.a) The objective Our research objective is Sri Lanka’s sustainable development through developing a harbor. which is depending on understanding customers. Customer clearance services. Ship bunkering services. c) Primary research 13 . Supply of water.

Ship repairing services. give well infrastructure facilities and well pricing facilities. In this case we used the judgment non-probability sampling to identify customers of harbor. For that we gained more information about customers.) and that facilities must not be in any other countries’ harbor. advertising to the media and to international and local customer.To understand our customers we have to gather more information any way we selected qualitative study. e) Theoretically approaches Report help to forecast about how we can attract most customers to the harbor which is saying some practical ideas. and also give more accurate services (Ship bunkering services. 14 . which are the location place of harbor in suitable place. Ship building services and Ship channeling services. d) Primary data about customer Most of the customers are expecting the new harbor in Sri Lanka for fulfilling their services easily due the peaceful situation and poor harbor facilities.

buildings and etc.) Monopolizing market structure Exploration of the environments 15 .1 Legal and economic concept If we se this project there are most direct and indirect job opportunities locally under the first phase of the industrial port is to be constructed and a jetty and an oil refinery estimated to cost over some billions will be constructed in the particular harbor. power generation and free trade zone. and bunkering and break bulk.4. land. which are. Task-2 4. Due to the harbor there will most problems in Sri Lanka there will most economical and political problems. The proposed port will stimulate development of harbor related industries such as repairs. Loose resources (petroleum. The government will provide employment opportunities at the harbor for at least one person of each family who has been resettle due to the construction project. The investment for the phase would be higher and the contract agreement will be signed between the consortiums of foreign engineering private limited. shipbuilding.

The harbor must give the priority to them best then other facilities. which is using for loading. Petroleum Corporation-to fill the fuel to ships and other vehicles. Bunkering berth and small craft berth. And give the priority to the local best government’s section or unit. construct unit. When we are constructing the harbor use the best things by using international and local engineers. Task-3 5. expertise etc.1 Seven Ps’ marketing mix in the harbor project a) Product The harbor is in Sri Lanka. and the labors. It will contain bunkering facilities and tank farm facilities for more. We can make tender by calling to do this work as much as soon and lower cost. 16 . Hotel section-for labors using government sector (sathosa and government). Service station-for ships and vehicles to reduce time wastages. Make attracting place where we see through architectures. And it wants to attract international and local parties. Build the fanes to safe this port using a government sector engineers.5. It will give the all flexible facilities to the target market. which are working for government and reduce the product cost. which are ships landing and departure. row materials. And it wants to become a first quality harbor in local and international level. That is needed to do satisfying and solving people needs and wants. unloading goods and services which is exporting and importing sea port. Make the following features to get attractions of product. we already planned something through the help.

17 . irony. wood. which is needed make by international and local expertise through well planned.).b) Price When we are constructing the harbor in our country we should consider very cheap fees.)). vehicle. Plan these services through government sector expertise (university degree holders. c) Place Build the container trailer parking to get reasonable price. who are entering the port for their goods to load. Make the car parks with one way entering and one way for exiting for out side customers. And dump want be build prevent flooding in near by area and seawall for inter looking blocks will protect the port from the high seas. The mouth of harbor should in 20-25m deep. Make the facilities to gain every country currency. store etc. Making the comfortable price the customer can easily pay the amount. Create the way ton entrance from sea side and landside. BOC etc. Charging the different price for different segmentation and finally making the E-banking system.etc). Create the security cameras and guard where car parks and storage area. Create the installments payment system. Make the e-payments facilities (using bank card etc. In the amount 600m lands build the bunkering berth and craft berth. And specially give the guard to customers.). Make the ship port to particular ship (food. Distribute the service’s prices through the new technology (web. Make the web address of this port. who are working for government’s banks (people’s bank.

ship building. This would be most useful as India. An organization customer segment may vary from product segments. and England will increase its export of vehicles and the particular harbor place if it is in a very good location for such trans-shipment activities. steps were being taken to train people in the required skills at special 18 . bunkering. Therefore. A large number of these openings were for skilled workers who were lacking in that particular area. The primary objective of the new want to Port Development was to synchronize the different aspect of development such as shipping. and catering to increased exports and imports. the handling of large scale fuel products. trans-shipment. Provide for trans-shipment of vehicles. the international convention centre. and for increased container handling. and useful value of the products. The development of the new port will help in the economic uplift of the Sri Lankan places directly provide new jobs and jobs as indirect employment. quality. Japan. Therefore each customer may require different kind of promotion method to remember the harbor. attribute.d) Promotion Successful marketing require promotional campaign to inform consumers regarding the products information. increased bunkering. the extension of the Railway Line and the construction of the Expressway. The New Port will help to the new oil refinery.

Peace of mind vehicles undergoes regular safety inspection and is fully insured for rental purposes with insurance coverage for the driver the vehicle as well as 3rd parties. so that the skilled workforce will be available when the port begins functioning. or from the desks in the immigration area.head for that to avoid the rush.Vocational training centers. Enforce Customs law and other related laws in the country. Process are Bidding for the harbor Container Terminal. and then proceed down the walkway ready to be escorted you to your first destination in Sri Lanka. e) Process Responsibilities and Objectives • • • • • Collect correct Customs Duties and other levies such as Goods and Services Tax. make sure you have them filled out before you get in line at immigration. 7 days a week. slightly out of view . To save time. There are two immigration area. Facilitate the trade by providing effective and efficient service. You will be able to get your disembarkation form from a ship attendant before commodity land. Security Levy. Transport on arrival if port Transfer arrangements have been made through srilanka. national. Service Guarantee take pride in being able to offer the highest levels of service in the industry with service guarantee offering a replacement vehicle and driver in case of an emergency 24 hours a day.com will have one of our friendly chauffeurs waiting with a name card in the outside arrivals lobby. To access this area you will need to exit the arrivals terminal. Take suitable actions against the violators of the Customs Law and other related laws. part of the Port Expansion from the industry huge declines in domestic and transshipment volumes. one immediately as you walk down the departure terminal and another less busy area to your left. Excise Duty etc on importation Ascertain whether commodities are correctly classified and valued for collection of correct Customs duty and other levies and statistical purposes. 19 . Port clearance process the clearance process is too complicated.

Although we construct a harbor from a huge investment. Task-4 5. There are several stages in an Identification of target achievement Personal communication channel Development of communication objective Development of communication strategy Designing the massage Non – personal communication channel 20 Select the communication channel . Vision Situation Gap Because our final target is economic development in Sri Lanka. we will never get any value for the investment. Communication plan is one element to reduce the gap between our present situation and our final vision statement. Therefore communication campaign will play a major role this project.1 Marketing communication plan In the harbor project communication plan is one of the most important task.5. if we don’t have a good communication plan.

importers. Before giving the massage we should analyze the current image about the people and services in peoples mind. Because this is a huge project. 21 . International government and donors.Prom activity schedule Setting the prom budget (measure prom result) Through our communication campaign we should launch communication activities during and after construction periods. International Traders such as exporters. We should give massage to whole world. We should mainly consider stake holders all over the world. a) Stage 1 Identify the target audience. We can gain more advantages. Most investors and donors like to deal with Sri Lanka now. Shipping sector – Shipping line. because of the peaceful situation. According to our analysis there is a post-war situation. In order to achieve that target we want more time for promotions and to develop stake holders’ perception. other multinational and globe companies.

Objective 02 To increase 50% customer awareness on this harbor at the end of year 2012. S – Specific M – Measurable A – Achievable R – Realistic T – Time frame This is a new harbor project.b) Stage 2 – communication objectives Communication objectives should have SMART features. donors. At least 75% about the new harbor project and gain high investments and donations during first stage constructions end in 2012. When consider the buyer readiness stage. Customers shipping lines. United Nations etc. Awareness Knowledge Liking Preference Conviction Action Objective 01 To make good will through awareness in international governments. international traders. 22 . Local bodies (Export and import agencies). the target audience unaware of the harbor. So our objective should be start from the awareness stage and it need to be moved to the next stage. banks such as Asian Development Bank (ADB).

we will have to develop communication strategies. Through other marketing communication tools such as web sites. Push and pull strategies are mainly used in communication campaign. quality benefits etc. We try to reach the International traders Shipping sectors etc. Massage structure The effectiveness of our massage is mainly depending on the structure of the massage. Massage format Massage format mainly based on Personal selling. especially it is to the International government and donors. After communication objectives. financial benefits.c) Stage 03 Develop communication strategies. These two strategies have to launch together. 23 . It is based on two – side arrangement. d) Stage 04 Developing the massage we should follow following steps when design a massage: Massage content should derived by overall theme “Visit Sri Lanka and make you profitable” Our massage is in a rational appeal. press releases etc. According to the rational appeal we can indicate the benefits of this harbor such as economic benefit.

1 Less advertisements Port industry is still viewed as a good profitable one by government. Conclusion 6. They perceive as it requires additional investment for advertising about harbor services and its facilities to international customers and local customers with logo or name with service information. 6. And tell how the harbor is anticipating their services according to customer satisfactions. They produce a minimum quantity of products and with low facilities. which can develop the country easily. The pricing mix making the comfortable price the customer can easily pay the amount.6.2 Flexibility in final price set up. most of the international and local customers can attract easily any way they will come to Sri Lanka. If there is not any information about the port’s services in any kind of source therefore the products could not be promoted in an effective manner. Government can convert services into cash rather than making availability of profit through attaining 24 . They invest a little amount of capital in this business according to their financial capability. This is because.

Once this practice occurred for immediate needs. As well as customers use this opportunities for whole harbors. The supplies of the goods from that harbor immediately deliver to the any part of the places of Sri Lanka. This system affects whole other harbor as a virus network. 6. Individual employers are not rewarded as bonus & commission for their sales 25 . highway and etc. it could not be controlled at next time. 6. Even though this kind of uncertainties occurred. Some times the individual distributors could not achieve target sales and bring back products which were taken due the delay of the employers of the harbor. but Sri Lanka harbor project is without develop of those types of facilities. But the cash payments are made after the sales had finished.4 Lack of Motivation Some sort of working salary is not given immediately. These practices in price determination by one harbor make impact on other harbor pricing decisions.3 Distribution If we see other harbor project it will help to the development of the railway. Therefore the pricing decision in this business operation is not in a strength position. This is because of being without understanding other harbors’ wealth. So when we are developing the harbor before we should consider the development of those facilities. It takes longer period of time.effective markets.

lack of storage facility. They should annex the weighted point and abbreviation in service of the harbor and should ensure communication facility as by adding conduct number.6 Improving brand strategy Harbor applies product mix strategy in considering quality of services and designing but branding. Fulfilling a large order of quantity due to poor management skills and etc.achievement by the government. differentiate and to ensure service rights. They know effectiveness of motivation in creating market demand for their services but could not be implemented.09566 at moderate level. They are in fear of acquiring large order because of minimum level of quality services. 6.5 Lack of Knowledge in Order Management & Marketing Practices Harbor services produce and sell as early as possible rather than making a large order from the customers. Then they have to provide weighted point or any abbreviation to pursue service quality. 6. communication skills and capital investment to mass promotion. The average measure of channel motivation was 3. Therefore services will get price stability. So each harbor should classify their products into different category according to the use of many new technologies and specific designing. Individual customer’s believes 26 . This system will control the negative impact on sales. It is better to fix the maximum of sales price for particular classified services. It is better to label and package with product material information by invest few amount of capital if they can do.

The harbor must consider the natural resources and environment when construct the harbor.8 Implication of Study Marketing strategies applied in harbor industry. It will create effectiveness in market and marketing.and willingness can be attracted by this strategic practice and direct promotion can also be applied. The marketing mix strategic practices create effectiveness on sales when mix of seven Ps’ elements is applied together with focusing target customer segment. It will increase number of individual customers. 6. harbor studied by this research with the objective of recommending possible solution to improve the marketing strategy to create and build market effectiveness for harbor services and sustainable development of sri lanka. Due the some chemical related services and the natural resources and environment are polluted.7 Greening production Harbor is the reason to the environmental pollution. 27 . 6.

organizational practice is much importance to harbor product operation. So this business operation requires marketing strategic applications to compete with competitors’ services.A & Europe countries. 28 . This operation is related to an organizational function. Manufacturers are producing export products since it is originated in Sri Lanka. In Sri Lanka. The foreign exchange rate will increase Even though they keep these strength. So.This industry can contribute in growth of Gross Domestic Production in Sri Lanka.S. marketing strategic application converts or change small business owners as a firm in business. Harbor services have demand in locally and globally. U. Most of products manufacturers are living in all part of Sri Lanka Especially in costal area. there is no any well established marketing agent or export firm for their products and thereby expand and lifting this employment. So. This research covered seven Ps marketing mix strategic applications by univariate analysis. Therefore manufacturers have to change operational behavior in services. financial threat in marketing decisions. Any way we can say the construction of harbor will help to Sri Lanka as itself. Due the services the import will increase Sri Lankan products are exported to Japan. This is because of improper management and lacking of marketing skills and knowledge with long term vision. pricing to making satisfaction of customers & managing distributors and communicating the products. They have to market their product in an effective way without lose making. It means. identifying customer segment and new market are essentially required marketing strategic application. It has opportunity to research distribution strategy alone.Port industry in Sri Lanka is operated by Sri Lankan government in their sri lanka.

References • • Sri Lanka port authority report 2009. Philip Kottler “Marketing Management” 11th Edition Study kit “Essentials of marketing” Study kit “Effective communication skills” 29 • • .7.

• • • • • • • • Study kit “Economics and legal concepts for marketing” Study kit “understanding consumer” Www.wikipedia.org www. www.youtube. 30 .com.com www.Traveleor.aspx. legal.Srilankatourism.org Sunday times news paper.com http://en.

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We assure you that the information given here will be kept confidential.14) Questionnaire Dear Sir/Madam. Did you travel to Sri Lanka? Yes No 32 . 1. and will be used only for research purposes. Please be kind enough to spare few minutes of your time to fill this questionnaire which will help us in our task in identifying new markets segments and improve sustainable development of harbor. We are team of SLIM students conducting research development of harbor.

2. specify)…………………………. What was the duration of your stay? 3 day 10 days 7 days 14 days 6. With whom do you travel? Alone With friends With Family other (pl. specify)…………………………. When did you last travel? Within the last1 month Within the last 6 months Can not remember within the last 3 months within the last 1 year 3. How much would you spend on such a journey? Less than Rs 20000 per day Between Rs 30000-40000 per day Between Rs 25000-30000 per day Over Rs 50000 per day 8. where 1 is the highest and 8 is the lowest) Distance Clearness Relaxation Facilities Safety Natural beauty 33 . 4. Where do you stay when you travel? Hotels Bungalows Rest house Lodges 7. 5. How would you rate the following factors when finding a travel destination? (Please rank from 1 to 8. What was the purpose of your travel? Pleasure Business Pilgrimage Educational Meet family/friends Other (pl.

Enjoyment 9. Any suggestions/improvements that need to be made? ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… 34 . What are the characteristics that you would look when selecting a harbor? Strongly Agree Agr ee Neu tral Disagree Strongly Disagree Cost efficiency (price) Convenience Attractive products/packages Customer service Brand awareness Industry Knowledge 12. 11. Contactable by others How would you rate your experience? Highly satisfied Satisfied Dissatisfied Highly Dissatisfied 10.. How did you get information on that harbor? Television Magazine Internet Speeches Newspaper Others (Please specify) …………………….

THANK YOU FOR YOUR TIME & COOPERATION 35 .

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