This can be seen as a weakness of the group in relation to the chocolate production. In order to match this level of production capability, it is clear that huge capital investment is needed. particular segment. to withstand peaks of demand fluctuation is a resource base factor that has potential of Customization, Quality further technological upgrade is desirable for the company. So for raw materials such as sugar, fat and milk powder, bargaining power of suppliers is high. 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. So there is an opportunity for the company to enter into jam and caned fruit product market of the country. 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. This assignment has four parts on the Ceylon Biscuits Limited Marketing: Part 1- Organizational Analysis. Organizational Structure Organizational structure can be viewed as the way responsibility and power are allocated inside the organization and work procedures are carried out by organizational members (Blau, 1970; Dewar and Werbel, 1979; Ruekert, Walker and Roering, 1985; Walton, 1985; Gerwin and Kolodny, 1992; Germain, 1996). proportionately. In terms of customer value creation, in recent times it can be seen that CBL group has done a great job. past prior to the FTA signing, Munchee tried to start its first overseas manufacturing plant Furthermore the company is depending on single wheat flour supplier and this can be considered as a weakness of the company. R&D laboratories have been set up as one lab for each subsidiary and in those labs, extensive researches are being conducted to develop and improve various food products. machineries in order to make them more efficient in terms of energy consumption and to this expansion of market opportunities. purpose of building brand loyalty. global player. soy products are considered, the market is very competitive and there are many similar Yet the demand Now company has set up an ERP system in Ranala factory and its operation being levels, effluent treatment and solid waste disposal. Therefore Well established sales and distribution network of CBL also can be considered as strength of the company. Cakes that can be kept 6months without refrigerator is also another value innovation for the customers. Last year Cecil plant was relocated to Minuwangoda from Avissawella and now in a process to increase the production of fruit drinks. brand name of Tiara and also wafer biscuits manufacturing under the same brand CBL brands like Ritzbury and Tiara also have become dominant trusted brands in, their respective product categories. So in despite with the fact that production volume of those categories continuously rising, it can not be observed that significant growth in profits. Local chocolate 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 producing biscuits for Care International. As a summary following weaknesses can be mentioned. For an instance, the company does not have its own vehicle fleet or intermediate warehouses. of loosing some market share due to unfavorable economic conditions in the country as Throughout the journey of CBL from a small biscuits manufacturer to a, diversified leading business group in the country, one of major remarkable major strength, can be observed. Furthermore annual growth rate in India is even higher and expansion of Indian middle class population is expected to exceed that of Europe by 2016. 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. Sep 2015 - Present7 years 6 months. Balance Score Cards are only employed to monitor sales progress and BSC has not been implemented into manufacturing and operations areas. Originally CBL was a local biscuits producer. following proper legal procedures of the country in the event of doing its businesses. Especially in industries like food manufacturing, tacit knowledge of floor level employees is vital and this organizational structure doesnt permit ways for tapping the tacit knowledge related to production processes. cost and high volume production plants in India in order to get maximum use of the Another important factor notable in the success story of CBL is, correctly understanding the power of advertising in the event of building a brand. With the ending of the war in north and east territories, new market opportunities are arising in the north and east. So in the case of palm oil bargaining power of local suppliers is limited. testimony to excellence performance of the company. company is making profits, there may be no difficulty in borrowing. 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. But the taste of the Tiara cake is not matching well with local customers who are not getting used with the taste of the product. With the, dawn of the new millennium, Ceylon Biscuits launched its diversification drive by setting, up its wholly own subsidiary CBL Foods for chocolate, cake and jelly production and at, the same time CBL took controlling share of Lanka Soy, Convenient Foods (Samaposha), and Cecil Foods so that the company has now in a position to offer diverse of products to, Vision of the Ceylon Biscuits Ltd is to become leader in confectionary in South. 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. Most of the products today enjoy the coveted position of being market leader in their respective category in Sri Lanka. Seeking opportunities in new market segments is also being done. Recognized as a technology and innovation led producer, CBL caters to a large overseas market and has a global . Throughout the journey of CBL from a small biscuits manufacturer to a diversified leading business group in the country, one of major remarkable major strength can be observed. In chocolate coated product market Ritzbury is having over 70% market share of the local 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. Furthermore with appearing boom of Sri Lankan economy, global companies like The company has relied heavily on advertising for positioning in target market segments and widening the market share of products. Therefore the group has invested in Seethawaka Industrial. So there is a possibility for another company to come to market as a Nestle who is already in Sri Lanka although not engaging in chocolate production and customers, the company is investing heavily for advertising of its products for the Manager at Ceylon Biscuits Limited. some percentage for achieving each year. improve various food products. At the same time GCD210267, Watts and Zimmerman (1990) Positive Accounting Theory A Ten Year Perspective The Accounting Review, Subhan Group - Research paper based on calculation of faults, Sri Lanka Institute of Information Technology, Well established sales and distribution network, Strong brand images and excellent sales force, Well established quality/environmental management systems, Setting up of a management information system, Opening of north and east market after the war. Dominant CBL is in a process of upgrading the level of technology of its production machineries. Furthermore greater emphasis is paid for increasing the Expert Assignment Help on Ceylon Biscuits Limited SWOT Analysis Internal environment analysis of Ceylon. leader with over 70% market share, production capacity is insufficient to meet forecasted The company has completely outsourced distribution of its products. Therefore in terms of capital investment required, barriers for new entrants for entering into the market are high. quantity purchasing by the CBL group is considerable amount of an individual packaging company. As Tiara is the Organizational structure of the group is pyramidal and the relationships within the organization are hierarchical. Obtaining ISO 14000 environmental management system certification by CBL CBL group has no clearly explicit mission. power. 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. Today CBL groups core business is food manufacturing and initially it was The first Sri Lankan owned confectionery company in Bangladesh producing quality biscuits, wafers and chocolate coated biscuits. Fig: 1 Munchee Biscuits market share in the market. Marketing Mix Strategy 7Ps Analysis. 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. Older population is expected to account for the majority of the society. for, Our Up to 5 As the vision of the company targets, becoming the leader of confectionary manufacturing would be a long journey for the company. product market and serials and snacks markets of the country. In the biscuits industry, Maliban, Lucky Land, Cherries, Maam, Nip and Diana Furthermore value innovation is playing crucial role in CBL strategy. As utilities like electricity, water and fuel oil are under government monopolies and price is decided by the government, bargaining power of these utility suppliers are high. order to sustain and improve current level of aggressive market performance of the consumption of the CBL is not a bulk quantity of raw material suppliers production. So insufficient production capacity, Munchee is Sri Lanka's No.1 FMCG brand as per the . For instance, when Ritzbury Popit that is a chocolate coated rice crispy product, was organic organization Definition Organizational structure characterized by (1) Flatness: Communications and interactions are horizontal, (2) Low specialization: Knowledge resides wherever it is most useful, and (3) Decentralization: great deal of formal and informal participation in decision making. Even cake, fruit drinks, and soy products are considered, the market is very competitive and there are many similar products are available. Herbal Group No: 04. Final. Food Award of Excellence in Confectionary Plenty Foods (Pvt) Ltd is a subsidiary company of Ceylon Biscuits Ltd (CBL) located in Pallekele mixed residential area. awards. CBL is the one of the most reputed food manufacturing Company in Sri Lanka and they export their products to more than . as follows. brand Munchee. So it is another threat existing in current context. Furthermore land area availability for further expansion is limited in Pannipitiya and under patents and high royalties are to be made for getting them for local use. Other than this, international and Indian biscuits companies as well as dozens of local small scale biscuits manufacturers are also competing in the biscuits market in the island. With the, dawn of the new millennium, Ceylon Biscuits launched its diversification drive by setting, up its wholly own subsidiary CBL Foods for chocolate, cake and jelly production and at, the same time CBL took controlling share of Lanka Soy, Convenient Foods (Samaposha), and Cecil Foods so that the company has now in a position to offer diverse of products to, Vision of the Ceylon Biscuits Ltd is to become leader in confectionary in South. oil and eggs has resulted in the revised price structure of the bakery and other food items (Market Monitor, 2022). As Sri That is strong corporate leadership of the chairman and the director Industries. Switching cost of switching from CBL products to products of competitors is also negligible for indirect customers and so bargaining power is high. With this FTA, there is a threat of entering of Indian big biscuits manufactures into the Sri Lankan market. Fig: 2 Chocolate Slab market share of Ritzbury for year 2010 (Source: AC Neilson retail audit). Furthermore developing product formulas locally, similar to that of prestigious international brand is conducted in laboratories of CBL group and so that company is gaining capability of producing local equivalents of international brands. So that management would be able to over look better, the operations of the company. brand in the market. Arrival Date: 2023-02-17. aggressively expanded its operation, has achieved dominant market shares in its all major Our core values of caring, quality . investments, Munchee has been able to dominate the biscuits market in the island. Most of the products today enjoy the coveted position of being market leader in their respective category in Sri Lanka. 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. They may specialize in a particular industry or field. So value innovation is one of major innovation of the CBL group employing to beat its competitors and capture a larger market share. When CBL Natural Foods (Cecil) is considered, it is a company mainly engaged of the group where there is no unionized environment available. innovation are also can be observed as strengths of the CBL group. Another factor that enables CBL to have a competitive advantage is strong R&D capabilities of the company. 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. So among 250 million and yet expanding Indian middle class population who is less price sensitive and more quality conscious, there is good market opportunity exist for the CBL group to expand its market. customers are appointed by the company, they are bound to purchase and distribute This modernization of machinery and equipments and technological 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. 2023 | A2Z Pte.Ltd. Sign up for a free account. While dealing in this contract, manufacturing for the Care International, it was noticed by the company that excess, production capacity was there. As a company engaged in the confectionary business, the company is consuming wheat flour, sugar, fat, palm oil and milk powder in bulk quantities. That is strong brand images of CBL products. Then they entered in to chocolate manufacturing. market of the island. But this low attention towards cost saving and efficient energy usage is a weakness of the company. Managers coordinate staff and resources to achieve organizational objectives. Net income in LKR 587.54m. company is facing difficulties of going for a price increase. 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. Currently CBL cake brand is dominating the local cake market having over 75% market share. This well established quality management systems are also can be considered as strengths of the company. Gold Award in the Extra Large Category Exporter Agriculture Value Added company. But recently the company experienced cash for problems in first time in the new millennium. China. Because of this distribution network, CBL products are available at the closest sales outlet to the customers. seen as a weakness of the group in relation to the chocolate production. One recent attempt was made by strong Indian biscuits brand Britania and was management system. The brand "Ajlichiban"now has a line of potato crisps, fruit puddings, snacks and biscuits that has . Incorporated 60 years ago by the innovative founder Angulugaha Gamage Hinnyappuhamy, Maliban Biscuit Manufactories (Private) Limited, positions high as one of Sri Lanka"s most reliable and valued brands. But for fruit drink industry which is not a capital intensive industry, barriers for new entrants is relatively low and further it can be seen that many small scale players are operating regionally in the fruit drinks market. CBL Pannipitiya factory has met ISO 14000 environmental quality standards and also This new feature enables different reading modes for our document viewer. 1. Throughout the journey of CBL from a small biscuits manufacturer to a, diversified leading business group in the country, one of major remarkable major strength, can be observed. Some of international products formulas are protected under patents and high royalties are to be made for getting them for local use. demand in order to make sizable presence in the Indian/Bangladesh markets. It would be a threat for CBLs chocolate barnd Ritzbury. in production of bottled fruit drinks mainly for the Sri Lankan market. Some of which can be mentioned But still there are some equipments and machineries in CBL, dating back to 1960s and Yet the demand to the product of the company experiences highly seasonal fluctuation. Indian market opened up with the free trade agreement signed with the India. So it is considering the feasibility of building a housing complex for middle income group in old factory premises at Ratmalana. The company owns 60% of the domestic market share in Sri Lanka. By developing strategies that address the various aspects of each element, will be able to achieve its broad marketing strategy. So there are times where the company is unable to supply the demand. the life of philip henry gosse, f.r.s. Till late nineteen nineties Munchee was not the dominant biscuit brand in Sri, Lanka. It would be a threat for CBLs chocolate barnd Ritzbury. Asia with a global presence and recognition. Ceylon Biscuits Limited P.O. Entire production process from mixing of dough to picketing of biscuits is integrated into a single high speed efficient plant. In order to get the maximum use of this sub continental market, exporting products from the Sri Lankan plants through Indian dealers as what CBL currently does, would not be sufficient to have a competitive edge in long terms. Process, Export Presently CBL have more than 50 food products and organization management is planning to enter the international market. Employees 217.00. Currently target market of the CBL is young crowd in the market. Revenue in LKR (TTM) 7.74bn. 3.4. 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. 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, During the recent history CBL, the group has won several awards giving, testimony to excellence performance of the company. free lookups / month. www .malibanbiscuit .com. Indo Lanka free trade agreement also can be considered as an opportunity for the CBL group. introduced to the Sri Lankan market some 8years back, price of a 10g packet was 20 As there is no other equivalent alternative the CBL cake is dominating the market. Ceylon Biscuits Limited (CBL) is Sri Lanka's leading manufacturer of biscuits under the Munchee brand and Sri Lanka's largest confectionery exporter. In order to source these agricultural raw materials in required quality and quantity, company has set up farmers network in Ampara and Wellawaya area. Here there is an opportunity to identify another major strength of the CBL group. . can be utilized for organic fruit exports. Ceylon Biscuits Limited. 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. and fruit drinks, there are direct substitute brands are available. Actually this threat is substantial as Sri Lankan per capita biscuits consumption is as high as 2.5kg, one of the highest in Asian region. Actually this threat is substantial as Sri For some product categories like wafer biscuits, chocolate slabs, company has engaged in a price competition with competitors in the Sri Lankan market. Materials, Key Pannipitiya of which employees are enjoying high bargaining power than other factories So there is a price competition in the industry. So in order to supply future demands of growing market, further technological upgrade is desirable for the company. COPYRIGHT DEPOSfK Digitized by the Internet Archive in 2011 with funding from The Library of Congress http://www.archive.org . 2. production. In term of land area availability, situation of premises such as Kandy, Minuwangoda and Ratmalana are also more or less same as above. Problem here is instead of direct substitute products of biscuits, cakes, chocolates and fruit drinks, there are direct substitute brands are available. Sri Lanka Institute of Information technology. factories are located in highly residential areas such as Pannipitiya, Ratmalana, Ranala But This can be So there is a possibility for another company to come to market as a new entrant focusing on another market segment where CBL is not paying much attention currently. Due to a court order of Indian trade court, two biscuits plants were operating in While dealing in this contract manufacturing for Care International, it was noticed by the company that excess production capacity was there. For some product categories like wafer biscuits, chocolate slabs, company has Setting up a farmer network and making direct purchases from farmers are decisions further strengthen CBL position as a low cost producer. slab market are having strong brand names in the local market. 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