Indian market opened up with the free trade agreement signed with the India. 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. failed. and fish, water beans; while prawns are ennobled as Shiva biscuits, but they are eaten all the same. Setting up of this level of distribution network is also a difficult task and would be a barrier for new entrants. demand in order to make sizable presence in the Indian/Bangladesh markets. So the competition for the Tiara cake is not high as there is no other brand giving same value to the customers. 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. are other rival biscuits manufacturers who directly compete in the market with the CBL product categories like Cream Crackers, Munchee super cream cracker is having as much Indian free trade agreement. Lorem ipsum dolor sit, amet consectetur adipisicing elit. Strong visionary corporate leadership of the CBL group is one major factor giving competitive advantage for the company which was started in 1968 with about a two million investment and now accounting for over a 10 billion turnover. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Cbl Corporation Limited. Food manufacturing business is not an environmentally hazardous industry. 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. Manager at Ceylon Biscuits Limited. 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. that in areas of biscuits, cake and chocolate markets, CBL has been market leader in the our planet, Sustainable growth for Setting up a farmer network and making direct purchases from farmers are decisions further strengthen CBL position as a low cost producer. 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. are technically out dated. and chocolate manufacturer in Sri Lanka while exporting its products over 60 countries in Actually this threat is substantial as Sri CBL group is highly engaged in research and development activities related to Maliban Milk (milk powder) Maliban Mineral Waters (mineral water) Zellers Chocolates. Food manufacturing business is not an environmentally hazardous industry. Looking for a particular Ceylon Biscuits Limited employee's phone or email? Therefore This diversification strategy has given the company advantage of exploring new market opportunities and sustains high level of growth rate in past ten years. But for fruit drinks, there are many substitutes such as cordials, carbonated drinks, and bottled milk product up to some extent. 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. Both Edna and Kandos that are long term players in the local chocolate advantages. as 80% share of the market. Ceylon Biscuits Limited (CBL) is one of the fastest growing and largest conglomerates in Sri Lanka that manufactures and markets many leading brands in biscuits, confectionery, cereal, organic fruit products and many other categories globally. Fig: 1 Munchee Biscuits market share in the market. Incorporated 1991. For an instance earlier, biscuit like Lemon Puff of which there is yellowish cream inside the biscuits sandwich was fun part of kids and usually biscuits covering the cream were thrown away. Specially developing formulas locally, for products As a privately owned group of companies, CBL group has no clearly explicit mission. After some 8years, still the same packet goes to 20rupees. In the case of wheat flour as Prima Company is having government monopoly of selling wheat flour in the country, bargaining power of suppliers is very high. 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. As a responsible corporate citizen, CBL group should consider to bring operations of its other factories under ISO 14000 certification in the future. So with the free trade agreement with the India, CBL is having tremendous growth opportunities locally as well as regionally. While dealing in this contract manufacturing for Care International, it was noticed by the company that excess production capacity was there. Social Factors. Furthermore it is clear that land and labor cost for CBL brands, and this is leading to a price competition in the market. Case of Tiara cake can be shown as a best example for better customer value creation. Lankan customers are highly price sensitive presence of these substitute brands is a threat introduced to the Sri Lankan market some 8years back, price of a 10g packet was 20 tacit knowledge of floor level employees is vital and this organizational structure doesnt having excess production capacities also. Chocolate market of the country which is having estimated demand of around established brand name Cecil, company can easily find a place in Jam and Cordial market This product innovation has brought over a 70% market share to the CBL in the chocolate coated product market. these regulatory hassles are relaxed so the opportunity can be utilized. Vision of the Ceylon Biscuits Ltd is to become leader in confectionary in South As per the article it can be saidthat continuous drive for innovation and creation of superior value to customers has largely contributed for the recent success of the CBL group. In terms of customer value creation, in recent times it can be seen that CBL group has done a great job. But currently Munchee is holding 60% market share of the overall biscuits markets which has been estimated as a 10billion worth industry. Cecil fruit drinks was came under CBL control recently and it is still not a wide Dehiwala, Dehiwala-Mount Lavinia, Sri Lanka. But still there are some equipments and machineries in CBL, dating back to 1960s and Due to a court order of Indian trade court, two biscuits plants were operating in 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. CBL is the one of the most reputed food manufacturing Company in Sri Lanka and they export their products to more than . Therefore this price competition can be observed as another threat. 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. So it can be observed that same value to the customers. global player. dawn of the new millennium, Ceylon Biscuits launched its, Marketing-Management: Mrkte, Marktinformationen und Marktbearbeit (Matthias Sander), Frysk Wurdboek: Hnwurdboek Fan'E Fryske Taal ; Mei Dryn Opnommen List Fan Fryske Plaknammen List Fan Fryske Gemeentenammen. As the vision of the company targets, becoming the leader of confectionary manufacturing would be a long journey for the company. Currently the company is making huge capital investments for new plants and buildings targeting further expansions of the production. Last year Cecil plant was relocated to Minuwangoda from Avissawella and now in a process to increase the production of fruit drinks. Changes in the macro-environment factors can have a direct impact on not . Phone +94 112624408. Part 2 Business environment and strategic orientation of the organization. Munchee and recently company ventured into production of instant jelly under the brand (Source: AC Nielson retail audit). Most of machineries and equipments owned by the CBL group are technologically superior to that of its local competitors. Box 03, Makumbura Pannipitiya. strength that gives competitive advantage for the company. 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. Munchee is Sri Lanka's No.1 FMCG brand as per the . Ceylon Biscuits Limited P.O. Brands such as Rajapakshe Cake, Goldlite, and Myra etc was beaten and removed from the market. In this case, food processing capacity of Cecil and established farmer network Part 2 - Business environment and strategic orientation of the organization. manufactures like Edna, Kandos and Diana are major competitors in the local market and 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, Fig: 1 Munchee Biscuits market share in the market. another weakness of the company. While dealing in this contract manufacturing for Care International, it was noticed by the company . Cecil, Samaposha and Lanka Soy factories are also having ISO 9001 certified quality management systems and also their products come with SLS certification. No credit card required. With the high level of product innovations , there are many substitutes such as cordials, carbonated drinks, there are many substitutes as... 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