of the group where there is no unionized environment available. Targeting - Maliban mainly targets middle & low classes rather than the supreme class. Furthermore land area availability for further expansion is limited in Pannipitiya and But the taste of the product made according to an Italian formula is not matching with the local customer taste. the life of philip henry gosse, f.r.s. Problem here is instead of direct substitute products of biscuits, cakes, chocolates Direct customers of the CBL group are 60 agencies and about 400 dealers appointed by Having a strong brand name means, a company has successfully liberated its product from commodity like trap and price level can be set beyond the balance point of supply and demand curves. opportunities. public seeks them. So As the company is making profits, there may be no difficulty in borrowing. Ceylon Biscuits Limited Jan 2002 - Jan 2003 1 year 1 month. You are reading a previewUpload your documents to download or Become a Desklib member to get accesss. a competitive edge in long terms. Since direct customers are appointed by the company, they are bound to purchase and distribute company products and they can not sell or distribute similar products to the CBL products. Lorem ipsum dolor sit, amet consectetur adipisicing elit. The company owns 60% of the domestic market share in Sri Lanka. Currently the company is making huge capital investments for new plants and buildings targeting further expansions of the production. And further CBL Pannipitiya factory has met ISO 14000 environmental quality standards and also CBL Ranala factory is also working towards obtaining ISO 14000 environmental quality management system. product market and serials and snacks markets of the country. So in the case of palm oil bargaining power of local suppliers is limited. Obtaining ISO 14000 environmental management system certification by CBL So it can be concluded that in areas of biscuits, cake and chocolate markets, CBL has been market leader in the Sri Lankan market for past few years and most likely the company would be able to maintain its dominance in the market. One recent attempt was made by strong Indian biscuits brand Britania and was CEYLON BISCUITS LTD. Ceylon Biscuits Group is the largest manufacturer and exporter of biscuits, chocolates, wafers, chocolate coated wafers and biscuits, long shelf life portion cakes, family sized layer cakes, swiss rolls, cereals, energy bars, textured soya, certified organic juices, dried/dehydrated fruits, desiccated coconut and Sera . Further it is expected to extend this network to other CBL factories and Title: Twenty years around the world. our communities, People & Both Diana and Ritzbury. With the high level of product innovations especially in chocolate coated product category, Ritzbury is now enjoying a bigger market share than local giant chocolate manufacturer Kandos. vulnerable. availability of the product everywhere in the country. In recent times, attempts for increasing chocolate coated product production are being made with new investments for machineries and still there are available sales losses due to this insufficient production capacity. No events Contact. production also in coming New Year season. For the chocolate industry is also the situation is more or less is same to that of biscuits and cake industries. So there are times There is tremendous opportunity exists to set up low cost and high volume production plants in India in order to get maximum use of the Indian market opened up with the free trade agreement signed with the India. Gold Award in the Extra Large Category Exporter Agriculture Value Added As company vision says, CBL is targeting vast market opportunities in the sub, continental Indian region, the group has already bought land in Bangladesh for its first, So far the group has been operating as a privet limited company which is now, almost 12billon Rupees Company, is in the process of considering to become a public, limited company as company has grown too big already and also huge investments are in. Substitutes of cakes are also not clearly visible and situation for chocolate is also same. board. In chocolate market in the country also earlier perception was chocolate means chocolate slabs. later to become dominant market leading biscuit brand was introduced to the Sri Lankan Capture a web page as it appears now for use as a trusted citation in the future. same quality equivalents of international market products coming under brand names able to build the strongest brand name in Sri Lanka for four consecutive years, is another This assignment has four parts on the Ceylon Biscuits Limited Marketing: Part 1- Organizational Analysis. our planet, Sustainable growth for 270 Employees . During the recent history CBL, the group has won several awards giving testimony to excellence performance of the company. management system. (business & personal). information within the organization. Chocolate market of the country which is having estimated demand of around 1000tons per month is highly price sensitive. Furthermore if products are not available in the nearest sales outlet of the indirect customers and price is not appealing to them, there is high tendency of buying any available similar product by the general public. demand in order to make sizable presence in the Indian/Bangladesh markets. high. In areas like printed packaging and corrugated cartoons, the company is purchasing bulk quantities from local packaging companies like Expack, Modernpack and Star packaging etc. This farmer network also can be considered as strength of the CBL group. Developing the business strategy, business framework and structure Developing brand positioning in the market, creating products and promotion to support branding strategy. leader with over 70% market share, production capacity is insufficient to meet forecasted As Sri Lankan customers are highly price sensitive presence of these substitute brands is a threat for CBL brands, and this is leading to a price competition in the market. Selection of strategies, making investment wisely and building up of the efficient sales and distribution network, island wide by the corporate management are definite causes for achieving competitive advantage by the company. monitored. Yet the demand to the product of the company experiences highly seasonal fluctuation. An analysis of the 7 elements of the marketing mix and recommended . and fruit drinks, there are direct substitute brands are available. Furthermore land area availability for further expansion is limited in Pannipitiya and Ranala factories, which is another resource base factor that makes the company vulnerable. In order to sustain already created social image of the company, CBL is expected to perform better or similar manner in the future as well. competitors is also negligible for indirect customers and so bargaining power is high. (Source: AC Nielson retail audit). For an example, in recent years, biscuits production is continuously rising and Land area of Pannipitiya plant was fully filled with plant buildings and no further building expansion is possible there. Except wheat flour With the ending of the war in north and east territories, new market opportunities are MACMILLAN AND CO., Limited NEW YORK: THE MACMILLAN COMPANY 1904 . by acquisitioning an Indian biscuits manufacturing company and attempt was failed due production plants and further expansions in these two locations are difficult and it is well as in the world level. So there is As the company vision says what CBL long term plan is to become the largest confectionary manufacturer in the South Asian region. This article is about the organization analysis of Ceylon Biscuits Ltd which was founded in the late nineteen sixties by undertaking a contract from the Sri Lankan government and Care International (USA) to manufacture protein-enriched biscuits for Sri Lankan school children as a mid-day meal. factory and another plant building is under construction in Ranala factory. In term of land area availability, situation of premises such as Kandy, Minuwangoda and Ratmalana are also more or less same as above. Manager at Ceylon Biscuits Limited. One of major strategy adopted by the company in order to face industry challenges is high volume and low profit margins strategy. This modernization of machinery and equipments and technological innovation are also can be observed as strengths of the CBL group. providing definite strength for the group to achieve its crowning success. global player. only cake which can be kept as long as 6month period even without a refrigerator, in the Strong marketing team referring internally as excellent force, which has been able to build the strongest brand name in Sri Lanka for four consecutive years, is another strength that gives competitive advantage for the company. Recognized as a technology and innovation led producer, CBL caters to a large overseas market and has a global . Brands such as Rajapakshe Cake, Goldlite, and Myra etc was beaten and removed from the market. being done. Furthermore it is clear that land and labor cost in north and east areas are much cheaper than that of other areas of the country. On the other hand price sensitivity of the general public is also high. product market and serials and snacks markets of the country. Under the farsighted corporate leadership of the company, the company has, aggressively expanded its operation, has achieved dominant market shares in its all major, product categories and also has invested heavily in new plants, factories, technologies in, order to sustain and improve current level of aggressive market performance of the. Ceylon Biscuits Limited P.O. Nestle who is already in Sri Lanka although not engaging in chocolate production and So in despite CBL is heading to that direction. Phone : +94-11-2379800. When CBL Natural Foods (Cecil) is considered, it is a company mainly engaged In the local society also there is a growing concern over natural or organically processed food products. Part 2 - Business environment and strategic orientation of the organization. In order to source these agricultural raw materials in required, quality and quantity, company has set up farmers network in Ampara and Wellawaya, area. Another factor that enables CBL to have a competitive advantage is strong R&D capabilities of the company. So it can be observed that chocolate production is continuously increasing and yet profit is not growing proportionately. Land area of Pannipitiya plant was fully filled with plant buildings and, no further building expansion is possible there. CBL brands like Ritzbury and Tiara also have become dominant trusted brands in, their respective product categories. player in the local fruit drink market is Smak. of the group where there is no unionized environment available. Fax : +94-11-2379850 dawn of the new millennium, Ceylon Biscuits launched its diversification drive by setting 1000tons per month is highly price sensitive. such as Cadbury and Nestle etc. But with efficient distribution network and extensive brand building investments, Munchee has been able to dominate the biscuits market in the island. there is high level of probability that customer may buy from any available substitute On the other So there is a price competition in the industry. Till that time from the starting of the Ceylon Biscuits, the company was engaged, in contract manufacturing for Huntley and Palmer of associated biscuits UK other than, From the beginning of new millennium, Munchee brand started aggressively, invading the biscuits market of the Sri Lanka and now the company Ceylon Biscuits has, become one of the largest privately owned group of companies of the Island. As a summary following weaknesses can be mentioned. Yet as CBL factories are located in highly residential areas such as Pannipitiya, Ratmalana, Ranala and Minuwangoda in Colombo district, high attention to be paid for factors such as sound levels, effluent treatment and solid waste disposal. Now with the FTA . Vision of the Ceylon Biscuits Ltd is to become leader in confectionary in South Revenue in LKR (TTM) 7.74bn. Pannipitiya of which employees are enjoying high bargaining power than other factories Therefore it is definite that the group would suffer in loss sale in biscuits production also in coming New Year season. Lankan per capita biscuits consumption is as high as 2, one of the highest in Asian Ceylon Biscuits was founded in 1968 to manufacture high-protein biscuits to supplement mid-day meals for school children under a joint programme of Care Organization, USA, and the Sri Lankan Government. Last year Cecil plant was relocated to Minuwangoda from Avissawella and now in a process to increase the production of fruit drinks. So it can be concluded So insufficient production capacity, Till that time from the starting of the Ceylon Biscuits, the company was engaged, in contract manufacturing for Huntley and Palmer of associated biscuits UK other than. company products and they can not sell or distribute similar products to the CBL So there is an opportunity for the company to enter into jam and caned fruit product market of the country. Our senior management team comprises of highly motivated leaders with expertise across a diverse range of industries who steer the day to day operations of the Group across its portfolio. So getting maximum use of vast Indian confectionary market is a must for achieving long term company objectives. But this low attention towards cost saving and efficient energy usage is a weakness of the company. All Maliban biscuits targets on all kinds of customers kids, youth and senior citizens. in contract manufacturing for Huntley and Palmer of associated biscuits UK other than Social Factors of Ceylon Biscuits Limited Society's culture and way of doing things impact the culture of an organization in an environment. One prerequisite for achieving the target is huge capital investments in sub continental India. Although CBL group is performing well in the Sri Lankan market in its all most all product categories, still there are observable weaknesses in internal environment of the company. This expertise steers the group towards its sustainable growth goals and towards building brands that win in the marketplace. manufactures like Edna, Kandos and Diana are major competitors in the local market and Prior to this innovation Munchee Lemon Puff only had 23% market share in Lemon Puff market and now is having 80% market share in the market. In the biscuits industry, Maliban, Lucky Land, Cherries, Maam, Nip and Diana are other rival biscuits manufacturers who directly compete in the market with the CBL brand Munchee. 2. So there are times where the company is unable to supply the demand. Finally it can be said that continuous drive for innovation and creation of superior value to customers has largely contributed for the recent success of the CBL group. With this FTA, there is a threat of entering of Indian big biscuits manufactures into the Sri Lankan market. Food Science Internship Maliban Milk Pvt Ltd. Dharshika Selvaraj Company Description Company History Maliban is one of the most trusted and respected brands in Sri lanka. (Source: AC Nielson retail audit), Fig: 2 Chocolate Slab market share of Ritzbury for year 2010 (Source: AC Neilson retail, When it comes to explain resources availability of CBL group, over 2000 work force is, employed by the group in their, Pannipitiya, Ranala, Minuwangoda, Ratmalana and, Kandy factories. margin was 250% and now it is around 17%. Getting full use of As a summary, following can be seen as opportunities existing for the company. Due to the price competition in the industry, This can be seen as a weakness of the group in relation to the chocolate production. the company and CBL is not directly selling its products to the general public. In chocolate coated product market, although the company has become the market leader with over 70% market share, production capacity is insufficient to meet forecasted demand for products in the market. Although at the starting CBL was having similar biscuits production plants, they was rushed to upgrade electrically heated plant and use diesel to heat ovens and now CBL is further upgrading their plant to heat with LP gas. manufacturing in the beginning of 1970s and now it has become the largest biscuits, cake Total assets of the company is Assets. CBL group is mainly focusing on a demographic segment which is young crowd under age 35. Land areas in CBL ranala and CBL Pannipitiya are almost occupied with production plants and further expansions in these two locations are difficult and it is another weakness of the company. As a responsible corporate citizen, CBL group should consider to bring operations of its other factories under ISO 14000 certification in the future. Current trend in the biscuits market in Sri Lanka is that Munchee is continuing its expansion of the market share while Maliban is still loosing the ground. Labelling, International future. wheat flour, sugar, fat, palm oil and milk powder in bulk quantities. This is another HR related issue that prevents free flow of Trusted by 2+ million users, 1000+ happy students everyday. sidewalk tractor for sale; who are the parents of chaunte wayans management system for which company has received ISO 9001 certification. Trusted by 2+ million users, Next barrier is present in terms of distribution network. as 80% share of the market. Case of Tiara cake can be shown as a best example for better customer value creation. Due to a court order of Indian trade court, two biscuits plants were operating in Actually this threat is substantial as Sri So with the free trade agreement with the India, CBL is having tremendous growth opportunities locally as well as regionally. By developing strategies that address the various aspects of each element, will be able to achieve its broad marketing strategy. In order to increase the production capacities for catering high sales volumes, the company has made huge capital investments for high capacity plants and equipments. marketing in the island, may try to make an entry into chocolate market where Nestle is a CBL provide food to big foreign market. Part 2 - Business environment and strategic orientation of the organization. COPYRIGHT DEPOSfK Digitized by the Internet Archive in 2011 with funding from The Library of Congress http://www.archive.org . For some product categories like Cream Crackers, Munchee super cream cracker is having as much as 80% share of the market. Furthermore with appearing boom of Sri Lankan economy, global companies like Nestle who is already in Sri Lanka although not engaging in chocolate production and marketing in the island, may try to make an entry into chocolate market where Nestle is a global player. price 6s. As there is growing demand for organically produced fruit products in another weakness of the company. So customers are having the option of choosing some other biscuits brand instead of Munchee, some other cake brand instead of Tiara, or similarly some other chocolate brand instead of Ritzbury. As a privately owned group of companies, CBL group has no clearly explicit mission. and Minuwangoda in Colombo district, high attention to be paid for factors such as sound Some of which can be mentioned as follows. Our senior management team comprises of highly motivated leaders with expertise across a diverse range of industries who steer the day to day operations of the Group across its portfolio. The group is conducting its business according to government regulations and always following proper legal procedures of the country in the event of doing its businesses. Due to the price competition in the industry, company is facing difficulties of going for a price increase. Ceylon Biscuits Ltd was founded in late nineteen sixties by under taking contract from At the same time other dominant brand Ritzbury is having 50% market share in the chocolate slab market and over 70% market share in chocolate coated product market. Ceylon Biscuits Limited was once a small manufacturing firm engaged in contract manufacturing in the beginning of 1970s and now it has become the largest biscuits, cake and chocolate manufacturer in Sri Lanka while exporting its products over 60 countries in the world. Last year Cecil plant was relocated to Minuwangoda from If somebody is investing heavily for a mass production biscuits or a cake plant, efficient and large distribution network covering the entire island is also needed. scale manufacturers and domestic producers supply remaining 8% to the market. Services, What we look During the same period the company has taken controlling share of, Lanka Soy, Samaposha and Cecil so now CBL is competing in fruit drinks market, Soy. But snacks and serial bars etc can be considered as some kind of substitutes for biscuits. Under the farsighted corporate leadership of the company, the company has On names they built are strengths giving the company a competitive advantage. The current strategic approach of Ceylon biscuit ltd is explored in terms of its business-level strategy, corporate-level strategy . Cecil Fruit Drinks, company purchased raw materials such as grams, green grams, crown, rice, peanuts etc locally. Literature Review 2.1. Furthermore the company is depending on single wheat flour market of the island. Palm oil requirement is partially filled with purchasing of local suppliers like Pyramid Lanka and remaining quantity is imported depending on price level in the international market (Malaysia, Indonesia). Furthermore major players of the market are having excess production capacities also. especially in chocolate coated product category, Ritzbury is now enjoying a bigger biscuits manufactures into the Sri Lankan market. So it is another weakness of the company. Marketing addressing should be updated accordingly. Box 03, Makumbura Pannipitiya. So it is another threat existing in current context. demand in order to make sizable presence in the Indian/Bangladesh markets. Munchee is Sri Lanka's No.1 FMCG brand as per the . brand name of Tiara and also wafer biscuits manufacturing under the same brand Till late nineteen nineties Munchee was not the dominant biscuit brand in Sri, Lanka. Part 2 Business environment and strategic orientation of the organization Switching cost of switching from CBL products to products of CBL group is mainly focusing on a demographic segment which is young crowd CBL Group is a Sri Lankan conglomerate specializing in the food industry. Although the Name of the brand Smak has become a synonym for fruit drinks in the Sri Lankan market, they are only having 34% market share in the fruit drink market. Due to this high level of price sensitivity and bargaining power of indirect customers, the company is investing heavily for advertising of its products for the purpose of building brand loyalty. If you were to ask anyone in Sri Lanka for the name of a biscuit brand, you'd be lucky to hear a name other than Munchee, the flagship brand of food manufacturer Ceylon Biscuits (CBL).After all, it's Sri Lanka's premier biscuit maker; Munchee has a 53% market share, with the remainder shared by more than 50 companies, while CBL's chocolate brand Ritzbury occupies more than 60% of its . Revenue / turnover of CEYLON BISCUITS INDIA PRIVATE LIMITED is Revenue. From the beginning of new millennium, Munchee brand started aggressively Growing demand for organic fruit products in international market. Originally CBL was a local biscuits producer. Avissawella and now in a process to increase the production of fruit drinks. In Ranala plant, which is nearly a 13 acre, facility, only small land area is available for future expansion. CBL is in a process of offering local low cost and same quality equivalents of international market products coming under brand names such as Cadbury and Nestle etc. Process, Export When it comes to consider threats facing the CBL group, major threat is coming with Indian free trade agreement. China. Both Edna and Kandos that are long term players in the local chocolate This growth in national economy is highly favorable for food manufacturing industry and biscuit market alone would be expected to expand by 10% annually for coming years. Furthermore CBL is having very efficient distribution network covering most parts of the island and now expanding into territories in the north and east and is another factor giving competitive advantage for the company. But in recent times, the company has vastly, invested in purchasing brand new state of the art machineries from Japan and Europe for, its production process and at the same time company is modifying its old generation of. proportionately. Some of which can be mentioned, Product Brand of the Year for four consecutive, Brand of the Year for two consecutive years (Awarded by Sri Lanka Institute of, Winner of Gold for Innovative Brand of the Year (Awarded by Sri Lanka Institute, Innovative Brand of the Year (Awarded by Sri Lanka Institute of, Winner of Gold for Industrial Excellence in the Extra Large category at the, Annual National Chamber of Industries Achievers (CNCI) Awards, Gold Award in the Extra Large Category Exporter Agriculture Value Added, National Award for Export Excellence (Awarded by Ministry of Trade and. 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