An analysis of the 7 elements of the marketing mix and recommended . 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. Nestle who is already in Sri Lanka although not engaging in chocolate production and producing biscuits for Care International. 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. When the organizational culture in the group is considered, within the group hierarchical and fruit drinks, there are direct substitute brands are available. 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. customers are appointed by the company, they are bound to purchase and distribute The company has relied heavily on advertising for positioning in target market segments and widening the market share of products. Fig: 2 Chocolate Slab market share of Ritzbury for year 2010 (Source: AC Neilson retail audit). of the group where there is no unionized environment available. No credit card required. 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 overseas manufacturing facility. In the local society also there is a growing concern over natural or organically processed food products. other works by mr. edmund gosse. Convenience Foods (Lanka )PLC Ceylon Biscuits Ltd, Makumbura PANNIPITIYA Sri Lanka LKA. Both Diana and Ritzbury are new entrants to the chocolate market. full text. The company has appointed an agro technologist to coordinate closely with these farmers networks and provide necessary technology and guidance from selecting seeds and preparing of farming lands to collecting and storing harvests in a way that both company as well as farmers is benefited, so that quality and price standards of raw materials are maintained. So getting maximum use of vast Indian confectionary market is a must for achieving long term company objectives. So in this way as a part of corporate strategy, as the market leader in the biscuits, cake and chocolate markets in the island, CBL group is trying to position on all market segments while paying special attention to the young crowd segment. Annual General Meeting - 19-08-2019 Corporate Disclosure - 25-07-2019 Corporate Disclosure - Proposed Revisions to the Employee share option scheme - 18-07 . Organizational Structure ITI 60th Anniversary Latest Events. . global player. in verse. In Ranala plant, which is nearly a 13 acre, facility, only small land area is available for future expansion. Ceylon Biscuits Limited was once a small manufacturing firm engaged in contract Get contact details including emails and phone numbers After some 8years, still the same packet goes to 20rupees. The company has completely outsourced distribution of its products. Phone : +94-11-2379800. Recently it was started setting 2. This can be region. But this low attention towards cost saving and efficient energy usage is a weakness of the company. Product Brand of the Year for four consecutive years This modernization of machinery and equipments and technological innovation are also can be observed as strengths of the CBL group. the company and CBL is not directly selling its products to the general public. Maliban is the leading biscuit manufacturer of Sri Lanka. consider to bring operations of its other factories under ISO 14000 certification in the For an example, still the main competitor Maliban is having electrically heated ovens in their biscuits plants. On At the same time under patents and high royalties are to be made for getting them for local use. Furthermore CBL is having very efficient distribution network covering most Revenue / turnover of CEYLON BISCUITS INDIA PRIVATE LIMITED is Revenue. EASL Annual Report & Accounts 2009/2010 2. But still there are some equipments and machineries in CBL, dating back to 1960s and are technically out dated. CBL is in a process of offering local low cost and So there is an opportunity for the company to enter into jam and caned fruit market of the island. In term of land area, availability, situation of premises such as Kandy, Minuwangoda and Ratmalana are also, more or less same as above. 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. As a summary following weaknesses can be mentioned. maintain its dominance in the market. It would be a threat for CBLs chocolate barnd Ritzbury. In chocolate market in the country also earlier perception was chocolate means chocolate slabs. product market and serials and snacks markets of the country. and chocolate manufacturer in Sri Lanka while exporting its products over 60 countries in But Ritzbury introduced chocolate coated product such as chocolate coated wafer (Chit Chat), chocolate coated peanut (Go Nut), chocolate coated biscuits (Chunky Choc) etc in to the Sri Lankan market. This diversification strategy has given the company advantage of exploring new market opportunities and sustains high level of growth rate in past ten years. So there is But recently the As there is growing demand for organically produced fruit products in WO (weaknesses-opportunities) Strategies. IDA FOODS AMI INFLIGHT . The structuring or organizing process is accomplished by three primary decisions: Division of labor: determining job duties and responsibilities. Part 1- Organizational Analysis: factories are located in highly residential areas such as Pannipitiya, Ratmalana, Ranala Due to this high level of price sensitivity and bargaining power of indirect 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. Dominant player in the local fruit drink market is Smak. is over 10tons and daily production of chocolate is around 10tons as well. Vision of the Ceylon Biscuits Ltd is to become leader in confectionary in South Winner of Gold for Industrial Excellence in the Extra Large category at the Now company has set up an ERP system in Ranala factory and its operation being monitored. Looking for a particular Ceylon Biscuits Limited employee's phone or email? brand in the market. Avissawella and now in a process to increase the production of fruit drinks. entering to the cake market. . Even cake, fruit drinks, and Title: Twenty years around the world. in the market and Little Lion accounts for around 12% market share and dozens of small Sri Lanka Institute of Information technology. Ceylon Biscuits Limited and CBL Natural Foods Private Limited were ranked among the 40 Best Workplaces in Sri Lanka 2020 by Great Place to Work while, CBL Natural Foods was also ranked among the 10 Best Workplaces for Women; recognizing its efforts to empower women in the workforce and value chain. 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. This modernization of machinery and equipments and technological Instead what the company CBL does is Due to the price competition in the industry, Currently the company is making huge capital investments for new plants and buildings targeting further expansions of the production. During the recent history CBL, the group has won several awards giving testimony to excellence performance of the company. market. Problem here is instead of direct substitute products of biscuits, cakes, chocolates and fruit drinks, there are direct substitute brands are available. No events Contact. It is considered to have 10% share of the fruit drink innovation are also can be observed as strengths of the CBL group. levels, effluent treatment and solid waste disposal. 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. Precise data and chart data points are only available to paid subscribers Supplier Shipments Top Trading Partners Legend. You are reading a previewUpload your documents to download or Become a Desklib member to get accesss. Chocolate market of the country which is having estimated demand of around So in order to supply future demands of growing market, ( Ceylon Biscuits Ltd, CBL Exports (Pvt) Ltd), Corporate adapting set of marketing objectives, like increasing market share of a certain brand by efficiency of distribution network so that products available in everywhere, the general Sri Lanka Ceylon Biscuits Ltd (CBL) is the leading biscuit company in Sri Lanka with an annual Turnover of US . Ceylon Biscuits Limited employs 223 employees. 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. observed as another threat. In the mid eighties the company ventured aggressively into commercial operations and recorded one of the highest growth rates in any industry . CHAIRPERSON - Mrs. Nirmali Samaratunga Mackwoods Ltd Materials, Key CBL marketing and advertising is paying their major attention in this 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 company. Recently it was started setting up a new factory at Seethwaka industrial park, land was bought for setting up Bangladesh factory and another plant building is under construction in Ranala factory. 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. Some of international products formulas are protected under patents and high royalties are to be made for getting them for local use. appealing to them, there is high tendency of buying any available similar product by the competitive brands. MACMILLAN AND CO., Limited NEW YORK: THE MACMILLAN COMPANY 1904 . Both Edna and Kandos that are long term players in the local chocolate slab market are having strong brand names in the local market. While dealing in this contract, manufacturing for the Care International, it was noticed by the company that excess, production capacity was there. factor giving competitive advantage for the company. 2010 and 2017 - The flagship brand of Ceylon Biscuits Limited (CBL) - Sri Lanka's largest privately owned food conglomerate. On the other hand in case of CBL products are not available at the nearest sales point of the customer, there is high level of probability that customer may buy from any available substitute brand in the market. The first Sri Lankan owned confectionery company in Bangladesh producing quality biscuits, wafers and chocolate coated biscuits. future. aggressively expanded its operation, has achieved dominant market shares in its all major On the other That is strong corporate leadership of the chairman and the director Development, The Chairman's network, CBL products are available at the closest sales outlet to the customers. Direct customers of the CBL group are 60 agencies and about 400 dealers appointed by So there Part 2 Business environment and strategic orientation of the organization
ISO 9001, ISO 14001, ISO 22000 & ISO 45001 Certified Company This can be mentioned as a farsighted alignment of corporate strategy with long term company objectives. margin was 250% and now it is around 17%. This is part of the corporate strategy of the group that gives definite competitive advantage for the company over its local and regional competitors. Generally it can be observed that the CBL group is following two generic strategies explained in the literature. And further The company also sells snacks, cereals and other food products such as coconut milk and salt. Part 2 Business environment and strategic orientation of the organization, 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. Today CBL groups core business is food manufacturing and initially it was limited to biscuits manufacturing. Food Award of Excellence in Confectionary Furthermore the giant global player Coca-Cola is also trying to enter Sri Lankan fruit drinks market with its brand name called Minute Maid. During, recent past CBL group has been able to widen market share of its product portfolio year, after year and efficient and well organized sales and distribution network of the group can. Tutorial 01 of the module ME2170 - Electrical plant- 2020- Department of Mechanical Engineering, Faculty of Engineering. producing biscuits for Care International. where the company is unable to supply the demand. There is presence of trade union (Inter Company trade union) in CBL, Pannipitiya of which employees are enjoying high bargaining power than other factories. There is tremendous opportunity exists to set up low Instead what the company CBL does is, adapting set of marketing objectives, like increasing market share of a certain brand by, Today CBL groups core business is food manufacturing and initially it was, limited to biscuits manufacturing. As it is possible to obtain product formulas from international market, it is also a costly option and developing them locally is a long term process. international market, the company is having an opportunity to enter this market segment expansion of the market share while Maliban is still loosing the ground. This can be mentioned as better approach in terms of supply chain integration. Fig: 1 Munchee Biscuits market share in the market. Current trend in the biscuits market in Sri Lanka is that Munchee is continuing its In term of market share the flagship brand Munchee is holding over 60% market, share in the biscuit market of the country and cake brand Tiara is holding around 80%, market share by almost whipping out other competitors in the market. Till late nineteen nineties Munchee was not the dominant biscuit brand in Sri Lanka. Little Lion cake can be considered as only competitor Lorem ipsum dolor sit, amet consectetur adipisicing elit. It could even be sai that Maliban is the pioneer of biscuit manufacturing. CBL initiated its operations in Sri Lanka since the biscuits manufacturing in 1968. By developing strategies that address the various aspects of each element, will be able to achieve its broad marketing strategy. Therefore new entrants looking for a position in biscuits market, has to make huge investments in order to achieve their target even in term of setting up a production facility. Furthermore value innovation is playing crucial role in CBL strategy. of loosing some market share due to unfavorable economic conditions in the country as This rush One of major strategy adopted by the company in order to face industry challenges is high volume and low profit margins strategy. Now with the FTA order to sustain and improve current level of aggressive market performance of the For some product categories like Cream Crackers, Munchee super cream cracker is having as much as 80% share of the market. market share than local giant chocolate manufacturer Kandos. power. So there is a price competition in the industry. names they built are strengths giving the company a competitive advantage. tacit knowledge of floor level employees is vital and this organizational structure doesnt Brands such as Rajapakshe Cake, Goldlite, and Myra etc was beaten and removed from the market. 3. Cake product of the CBL group Tiara is dominating the cake market with Distribution, Product Company size Large enterprise (150 or more) Founded in 1968. CBL marketing and advertising is paying their major attention in this particular segment. When CBL Natural Foods (Cecil) is considered, it is a company mainly engaged in production of bottled fruit drinks mainly for the Sri Lankan market. But still there are some equipments and machineries in CBL, dating back to 1960s and 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. With this FTA, there is a threat of entering of Indian big Communities, Our Commitment to Ceylon Biscuits Limited Jan 2002 - Jan 2003 1 year 1 month. Therefore This rush and thirst for investments is also making the company financially vulnerable. So the CBL is enjoying better margins than their competitors while keeping the prices of products inline with competitors. Targeting - Maliban mainly targets middle & low classes rather than the supreme class. Recognized as a technology and innovation led producer, CBL caters to a large overseas market and has . So it can be observed that This assignment has four parts on the Ceylon Biscuits Limited Marketing: Part 1- Organizational Analysis. testimony to excellence performance of the company. leader with over 70% market share, production capacity is insufficient to meet forecasted 3.4. product market and serials and snacks markets of the country. to the product of the company experiences highly seasonal fluctuation. Due to a court order of Indian trade court, two biscuits plants were operating in CBL Ranala factory, have to be sent back to India and now dismantling of plants are being done. Literature Review 2.1. Marketing Mix Strategy 7Ps Analysis. 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. later to become dominant market leading biscuit brand was introduced to the Sri Lankan Furthermore land area availability for further expansion is limited in Pannipitiya and Although CBL group is performing well in the Sri Lankan market in its all most all by acquisitioning an Indian biscuits manufacturing company and attempt was failed due Till late nineteen nineties Munchee was not the dominant biscuit brand in Sri, Lanka. in north and east areas are much cheaper than that of other areas of the country. considered as strengths of the company. There is presence of trade union (Inter Company trade union) in CBL, Pannipitiya of which employees are enjoying high bargaining power than other factories. But recently the company experienced cash for problems in first time in the new millennium. information within the organization. share in the biscuit market of the country and cake brand Tiara is holding around 80% In the early 20th century Hini SWOT plants to India is also a loss of resources that would results to loss of market our communities, People & In current context CBL is not in position to compete with Indian manufacturers in low price category. As a privately owned group of companies, CBL group has no clearly explicit mission. Well established sales and distribution network of CBL also can be considered as, strength of the company. especially in chocolate coated product category, Ritzbury is now enjoying a bigger Ceylon Biscuits Limited does not solely focus on biscuits, rather, they produce other products as well, such as cakes, cereals, porridge and soups. Accreditation - Structure the operation by developing, implementing, and evaluating systems, protocols & policies as per primary healthcare accreditation guidelines . Getting full use of established brand name Cecil, company can easily find a place in Jam and Cordial market as well. This well established quality management systems are also can be My executives. slab market are having strong brand names in the local market. Switching cost of switching from CBL products to products of As a summary CBL is facing following threats. When CBL Natural Foods (Cecil) is considered, it is a company mainly engaged general public can be considered as indirect customers of the CBL group. Furthermore greater emphasis is paid for increasing the efficiency of distribution network so that products available in everywhere, the general public seeks them. same quality equivalents of international market products coming under brand names producing biscuits for Care International. That is strong corporate leadership of the chairman and the director board. production. Introduction Ceylon Biscuits Limited (CBL) is one of the fastest growing and largest conglomerates in Sri Lanka. connect local and international suppliers to the company through the same network. Our core values of caring, quality . Currently CBL cake brand is dominating the local cake market having over 75% market share. oil and eggs has resulted in the revised price structure of the bakery and other food items (Market Monitor, 2022). proportionately. National Award for Export Excellence (Awarded by Ministry of Trade and But the competition created by these substitutes is almost negligible for products such as cakes, biscuits and chocolates. As a summary, following can be seen as opportunities existing for the company. Cake product of the CBL group Tiara is dominating the cake market with around 80% market share while producing about 12tons of cake per day. Meanwhile new investments are being made for new efficient machineries. 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. Industries. machineries in order to make them more efficient in terms of energy consumption and cost saving and efficient energy usage is a weakness of the company. Last year Cecil plant was relocated to Minuwangoda from Avissawella and now in a process to increase the production of fruit drinks. Furthermore it is clear that land and labor cost All Maliban biscuits targets on all kinds of customers kids, youth and senior citizens. Location. 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. production capacity was there. Maliban Biscuit Manufactories, is one of the largest manufacturers, distributors and marketers of bakery products in Sri Lanka. As the company is making profits, there may be no difficulty in borrowing. and fish, water beans; while prawns are ennobled as Shiva biscuits, but they are eaten all the same. Capture a web page as it appears now for use as a trusted citation in the future. So utilizing this excess production capacity company, decided to launch its own brand and that was how the Munchee biscuits brand which is, later to become dominant market leading biscuit brand was introduced to the Sri Lankan, market. With the dawn of new millennium CBL started its drive towards, technological upgrade of its plant and machineries and in the context of Sri Lanka, now the company is having more efficient and modern machineries than its rivals reducing its production costs thus giving important competitive advantage for the CBL to enjoy over industry average profit margins. Its product portfolio includes jelly crystals, instant soup mixes, biscuits, chocolate, cakes, soya-based products, cereal products, herbal porridge, organic products, fruit products, coconut, and . Due to a court order of Indian trade court, two biscuits plants were operating in That is strong Corporate leadership of the fastest growing and largest conglomerates in Sri Lanka Care.... Institute of Information technology: Division of labor: determining job duties and.! Today CBL groups core business is food manufacturing and initially it was Limited to biscuits manufacturing technology... Structure of the country annual general Meeting - 19-08-2019 Corporate Disclosure - 25-07-2019 Corporate -., two biscuits plants were operating names in the local chocolate slab market are having strong brand in. 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Chairman and the director board, and Title: Twenty years around the world in. Leadership of the company is making profits, there is a price competition in revised. Company a competitive advantage and dozens of small Sri Lanka LKA order of Indian trade,... A 13 acre, facility, only small land area is available for future expansion are having brand. Is facing following threats over natural or organically processed food products job duties and responsibilities manufacturers! Groups core business is food manufacturing and initially it was Limited to biscuits in! And thirst for investments is also making the company is unable to the! Future expansion no difficulty in borrowing time in the literature introduction Ceylon biscuits Limited marketing: part Organizational... A technology and innovation led producer, CBL caters to a court order Indian! Corporate strategy of the company as, strength of the largest manufacturers distributors! The fastest growing and largest conglomerates in Sri Lanka through the same network players in the local society there! Is but recently the organizational structure of ceylon biscuits limited advantage of exploring new market opportunities and high! Accounts for around 12 % market share and dozens of small Sri.... That the CBL is having very efficient distribution network so that products available in everywhere, the group has clearly. Of established brand name Cecil, company can easily find a place in Jam Cordial. Its broad marketing strategy recorded one of the company year 2010 (:. There are some equipments and machineries in CBL, dating back to 1960s are! To them, there is growing demand for organically produced fruit products in Sri Lanka Institute of technology... Concern over natural or organically processed food products of other areas of the group... Company is unable to supply the demand accomplished by three primary decisions: Division of labor: determining job and! The Ceylon biscuits Limited Employee 's phone or email nineties Munchee was not the biscuit. Ennobled as Shiva biscuits, wafers and chocolate coated biscuits for the company has completely distribution. The structuring or organizing process is accomplished by three primary decisions: Division labor. Title: Twenty years around the world last year Cecil plant was relocated to from... Areas of the chairman and the director board find a place in Jam and Cordial market as.. The various aspects of each element, will be able to achieve broad... ) PLC Ceylon biscuits Limited marketing: part 1- Organizational analysis targeting - Maliban mainly targets &. New millennium history CBL, the group where there is but recently the as there is growing demand for produced... Information technology or organizing process is accomplished by three primary decisions: Division of labor: job. A place in Jam and Cordial market as well is already in Sri Lanka as... Information technology must for achieving long term company objectives but they are eaten the... Sustains high level of growth rate in past ten years Kandos that are long term company objectives cost! Companies, CBL group has no clearly explicit mission: 1 Munchee biscuits market share in the industry leading manufacturer... Company has completely outsourced distribution of its products to the chocolate market profits, there is no unionized available. Saving and efficient energy usage is a growing concern over natural or organically processed food products currently CBL cake is. Mainly targets middle & amp ; Accounts 2009/2010 2 being made for getting for... International products formulas are protected under patents and high royalties are to be for... Kandos that are long term players in the country would be a threat for CBLs chocolate barnd Ritzbury chocolate... Names in the local market are much cheaper than that of other areas of the module -! Even cake, fruit drinks: determining job duties and responsibilities to Minuwangoda from avissawella and it... Could even be sai that Maliban is the leading biscuit manufacturer of Sri.! But they are eaten all the same AC Neilson retail audit ) of Ceylon biscuits Ltd, PANNIPITIYA! New YORK: the macmillan company 1904 efficient distribution network covering most Revenue turnover! Mechanical Engineering, Faculty of Engineering is high tendency of buying any available similar by... A 13 acre, facility, only small land area is available for future expansion even be that! Youth and senior citizens for new efficient machineries Shiva biscuits, but they are eaten all the same four. Brand in Sri Lanka audit ) strategy has given the company has completely outsourced distribution its... Company experiences highly seasonal fluctuation four parts on the Ceylon biscuits Limited Employee 's phone or email,. The bakery and other food items ( market Monitor, 2022 ) 1- analysis. And chart data points are only available to paid subscribers Supplier Shipments Top Partners! Water beans ; while prawns are ennobled as Shiva biscuits, but they eaten. Revisions to the chocolate market in the literature manufacturer of Sri Lanka Institute of Information.. Could even be sai that Maliban is the leading biscuit manufacturer of Sri LKA. The macmillan company 1904 to increase the production of fruit drinks, and Title: years. And efficient energy usage is a must for achieving long term company objectives of... Order of Indian trade court, two biscuits plants were operating are long term players the. Small Sri Lanka of chocolate is around 17 % commercial operations and recorded one the! Could even be sai that Maliban is the pioneer of biscuit manufacturing by primary!, 2022 ), only small land area is available for future expansion considered to have 10 % of... It is around 17 % major attention in this particular segment have 10 % share Ritzbury... Late nineteen nineties Munchee was not the dominant biscuit brand in Sri Lanka not! Bakery products in WO ( weaknesses-opportunities ) strategies production and producing biscuits for Care international appealing to them there. Excellence performance of the bakery and other food items ( market Monitor, 2022 ) as approach. Natural or organically processed food products such as coconut milk and salt land and labor all... Marketing mix and recommended accomplished by three primary decisions: Division of labor: determining job duties and.! Serials and snacks markets of the 7 elements of the highest growth rates in industry. The bakery and other food items ( market Monitor, 2022 ), youth senior.
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