Marketing Maliban Sri Lanka
Marketing Maliban Sri Lanka
Marketing Maliban Sri Lanka
1
Executive Summary
For the atrial requirement of the subject marketing management in the program master
of business management author required to select an organization on preference to
evaluate the current marketing strategy. Author selected Mlaiban Biscuits Company
and evaluated the market strategy while identifying the market issues company face.
By that author implemented market plan for two years for the company in order to
develop the front line, bottom line of the company in delivering a superior quality to
its customers with the purpose of setting the brand apart from the market competition.
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2. Task 01
Maliband brand has incorporated 60 years ago as one of the trusted brand in Sri
Lankan Confectionery industry which has a production capacity of over around 3000
Metric Tons per month with over 74,000 outlets island wide. Maliban manufactures
range of crackers and wafers which sold over the island and sold over 35 countries
across 5 countries in international market with the “vision, to be the most successful
and respected food company in Sri Lanka”.
Logo No: 01
Majorly Maliban is competing with 40 brands of biscuit producers in Sri Lanka along
with the market leader Munchee. But still Maliban has identified as a traditional brand
of biscuits in Sri Lanka with its historical and popular market entry of cream cracker.
Figure no: 01
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Source: Maliban, 2015
Figure no: 02
Sweet Cream
Crackers Puffs Savoury
Biscuits Biscuit
Milk Short Smart Cream Lemon Puff Krisco Orange Cream
Cake Cracker Chocolate Puff Cheesebits Custard Cream
Nice Bran Cracker White Chick Bits Real Double
Sorties Spicy Cracker Chocolate Puff Snackers Chocolate &
Gold Marie Cheese puff Cheese & Vanila
Ginger Chillie Real Double
Light Marie Snackers Strawberry &
Premium Marie Masala Vanila
Chocolate Snackers Spicy Chocolate
Marie Onion Bitsy Cream
Real
Temptation
Maliban
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Source: Ac Nelsen,2015
Maliban was the market leader for biscuit market in early 90s and the market share
has slightly decreased over the time and Muchee was the main competitor. In years
2000 with the re-launching of Marie, Cream Cracker & Lemon Puff by Munchee has
been a turning point of the brand and due redevelopment of co products of Munchee
become the market leader in 2001 by holding over 40% of market share in biscuit
market consecutively. Due to the heavy competition experienced majorly with the
brand Munchee along with brand Maliban has lost their market share slightly from
year 2001.But Maliban has positive competition towards the whole market segment
for biscuits with all the competitors. According to the Nielsen’s market research
(2012), Brand Munchee was possessed 60% of the biscuit market while Maliban has
30% and other producers has 10% market share as Nips, Litte Lion,Kist, Maam, Sun
rich,Dian and Daintee.
Chart No: 02
Maliban
28%
Munchee
62%
Source
: Ac Nielson,2015
Maliban is equipped with several biscuits as well Maliban always tries to introduce
new biscuits to the market. Therefore Company is used effective marketing strategy in
making the environment feasible in sustaining the market share as they already
sustained the market share and performing well with the reference to Key
Performance Indicators in comparison to the objectives set by the company. Company
used marketing mix strategy in meeting the different customer or market needs
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SWOT analysis
Chart No: 03
Strengths
Weaknesses
Strong market precence
Dependance of suppliers for
Well established sales and critical raw materials (Weat
distribution network flor)
Strong brand image and Insufficient production
effective work force capasity of some products
Effective supplier network ( Bran crackers)
Tecknological capabilities Unavilability of energy and
Effective quality and R&D cost saving approaches
managemnt low profit magins of some
Influential managemnt products
information systems lack of market communication
Oppurtunities
Threats
Introduction ideas of new
production by R&D (Portion Entrance of international and
cake) highly established brands in to
biscuites industry (Britania,
Opening of North east markets
Kist biscuites)
after war
Free rade agreements with
rade agreements with foreign
countries - Entrance of
countries to enter in to
international producers to
international market (India)
local market
Ability of geographical
Price competetion of some
expansion of seller network
products
Opening of own sells stores in
Rising heath consers (suger
cost saving
free products)
PESTEL Analysis
6
Political
After the civil war now there is a strong political establishment and government
facilitations for the businesses but it can be described the fact that there is a high
fluctuation in Sri Lankan taxations, so it is affecting the Maliban biscuits.
Economical
Currently it depicts 6.01 of GDP growth rate in Sri Lankan economy & it is expected to
reduce
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Source; (Trading economics, 2016)
In January 2016 it was recorded the fact that inflation rate is 0.9 & it is expected to increase
in the future. In 2016 it can be described the inflation is becoming higher & GDP is expected
to reduce so this cannot be described as a favorable situation for the Maliban biscuits & the
biscuit industry. When consider about the labor cost, it can be described the fact that labor
cost in north & east is relatively low rather than the other part of the country.
Social
Sri Lankan population age profile can be described as follows, Sri Lanka Demographics
Profile 2013
Age structure,
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So as a whole it is better if Maliban biscuits can target 15-64 age groups. And in the
future older population (above 55) is expected to account for the majority of the
society.
Currently Maliban uses the Sinhala Language slogans & advertisements so using
Sinhala language for the advertisement processes can be described as acceptable since
over 74 % of the people understand Sinhala.
Srilankan people can be described as the health conscious people with traditional
values a so it is needed to more consider about the new methods without affecting the
traditional values within the promotion processes in a manner that does not affect the
company image of Maliban Company. Since our people are health conscious it is
better if Maliban can maintain the health standards & move towards natural food
processing trend if it is possible.
Technological
Maliban engaged with R&D processes & tried to introduce new products to the
market. New ERP system has been introduced to Maliban state of art factory as well it
is being expected to extend the network to other factories and connect all the local and
international suppliers to the company through the same network. Maliban biscuits
upgraded the plants & machineries in an effective manner but still there are some un-
upgraded old machineries.
Environmental
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If Maliban can upgrade them they can increase the efficiency. As well Maliban paid a
high attention for factors such as sound levels, effluent treatment and solid waste
disposal & Maliban received ISO 14000 for its environmental management system at
the factory at Rathmalana.Maliban plans to base on more natural products in its
product range and products which are in R&D stage. (Fruity cake with natural fruits)
for more heath concerned society.
Legal
Maliban biscuits engage with the business processes according to the Consumer
protection law & Labor law well as without any kind of discrimination according to
the anti-discrimination law. They also consider the Health & Safety aspects by
following Health & Safety law. As a whole it can be described the fact that Maliban
follows proper legal procedures as well according to the government rules regulations.
Figure No: 03
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Source: Google, 2016
Product
Figure No: 04
Maliban has introduced the products which caters the today’s needs of the society as
done by the market research (KPI) the society is more health conscious high quality
sugar free feel gold biscuit, Ginger nuts by that Muchee has imitated the health
conscious products from Maliban.Maliban offered the different cracker experience by
introducing three innovative ranges namely fun cracker, classic cracker and vegy
cracker (With natural vegetables). And the Maliban Tasty Banana biscuit is the first
biscuit in Sri Lanka to be manufactured using natural bananas. Also Maliban is using
new attractive packaging by new technology adopted (KPI) which offers the ability of
keeping the biscuits fresh for a considerable time. But as the competitor Munchee
keep imitating the product, taste, content and packaging from Maliban and also the
advertising. Also the other biscuit producers are also imitating the products and
techniques of the company.
Place
Maliban has effective and on time delivery network (KPI) and has product storages
(Maliban outlet network has extended from 40,000 to 70,000) around the country to
consume the needed products n needed quantity. And specially near in port and
airport. Munchee also keep expanding its network of delivery and distribution also
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company has established another factory in Ranala. Maliban Company produced 25
million packets of biscuits every month in their state of art manufacturing facility
(KPI) under stringent hygienic conditions which is located in MounLaviane.
Price
Maliban has positive retail price which could be bared by the local customers and also
company offers discounts for the retailers with a 30 days credit periods with the
purose of extending the retailer network (KPI).Maunchee has the same retail pricing
and also they used to offer discounts in expanding the network.
Promotion
Figure No: 04
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Source; Munchee Vs.Maliban, 2013
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There are 3 main turning points within the journey of the Munchee biscuit. They are
introductions of Tikiri Marie, Super Cream Cracker & Real Lemon Puff. All of these
biscuits have been introduced to the market by the Maliban biscuits. Munchee took
Maliban head-on introducing “me-too” products with some kinds of improvements in
taste and quality.
Chart No; 04
Maliban Munchee
Marie biscuit can be described a semi sweet biscuit which has first introduced to
srilanka by Maliban.
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Maliban (Gold Marie) Munchee Tikiri Marie
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Then in 1998-1999 periods they have succeeded in achieving 25 % of Biscuit market
in Sri Lanka.
Chart No: 05
Then after that in 2001 Munchee launches the next strategic attack to the Lemon puff.
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Maliban(Lemon Puff) Munchee ( Real Lemmon Puff)
Munchee’s market share was increased from 30% to over 50% suddenly within a 4
months’ time Maliban's Lemmon Puff market share which had been a staggering 70%
plummeted to 29%.
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Chart No: 06
In 2001-2002 time periods Munchee has succeeded in increasing the market share up
to 42 %, the Real Lemon Puff played a huge role in this increase market share. As
well munchee used athi Vishishtai Sir! (Superlative sir) slogan to promote Real
Lemon puff biscuit but Maliban didn’t use any slogans for advertise Lemon puff, but
in 2010 Maliban creates the world’s largest Lemon puff & tried to attract more
customers to Maliban Lemon puff.
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M a lib a n (C rea m C r ack er) M u n ch ee ( S u p er C rea m C ra ck er)
At the end of 2002 Munchee’s Cream Cracker market has been nearly doubled up to
40% & Munchee cream cracker market share reached 50% the following year.
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Chart No: 07
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Munchee’s biscuit share has been increased up to 47% in 2002-2003, it is crystal clear
the fact that introduction of Super Cream Cracker has played a very important role in
increasing the market share up to 47 %. Reaction of Maliban for the Munchee Super
Cream cracker launch was imprudent. They have used senior artists & made an
advertisement about Cream Cracker with “lunu miris” and “ambul thiyal” & tried to
re-emphasize the traditional value & state that they are the pioneers in Cream cracker
but this concept has backfired & people got some wrong image that Maliban cream
cracker is for older generation. But however in mid of 2010 Munchee Super Cream
cracker was able to get around 59% of market share. Maliban introduced 50g sachet
packet of “Smart Cream Cracker” and Munchee introduced “Cream cracker Junior”
pack. As well as Munchee tried to market Super Cream Cracker as a hunger stopper
and promote the product to be used in between main meals by using “podi badaginna”
(ideal for the small hunger) concept. Maliban uses “hitha pirenna” slogan for their
“Smart Cream Crackers” promoting the satisfaction that customer can get by
consuming the biscuit. Overall Maliban uses “Red” color as the icon color while
Munchee uses “Yellow” color as main icon color & white as sub icon color as well as
Munchee uses high volume and low profit margins strategy.
3. Market Plan
According to the situation analysis, market summery author is planning to prepare
a marketing plan for the company for new two years. Author decided to suggest a
new product development for the company – fruity bar (potion) cake which
specially focused on kids segment and other market segments also and
standardization of market addressing of the brands for next two years. Objective
of preparation of marketing plan is to succeed the brand by growing the sales and
profitability, expanding its market share while making competitive advantages for
the brand.
Figure No: 05
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Source: Author originated source
Short term objectives
Grab the people’s attention in all over the island & flame a likeness towards the fruity
bar cake & establish new market share for fruity bar cakes while expanding the
overall market share at least by 20% in end of the 1 st year after the launch of the new
product while standardizing the market addressing of the company with effective,
competitive market promotion tools.
Install the “Full of goodness” concept & the Maliban healthy wholesome everyday
snack to transfer the consumers from special moment indulgence to healthy
wholesome snack by this high quality new product by investing less amount for
technology while expanding the market share and establishing new market share for
the company for overall market expansion by 30 % by end of the 2 nd year while
standardization of market addressing of the company. Maliban Company is precise
about the all of these objectives by concerning about the five "W" questions as well
the objectives are measurable. When consider about the overall quality of the product
& finance capability of the Maliban it can be guessed that company will achieve the
objectives & it also can be described that these objectives are realistic. All of these
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objectives are set to be achieved according to a specific time period. So it can be
described the fac6t that the objectives are in SMART form.
Marketing Strategy - The way that the company is going to achieve the set objectives
will be described within the Marketing Strategy section.
Target Market – New product - Currently Ceylon biscuits limited have own the
overall market share for the portion cakes by O’La, Rollo, O’key and Ah ha products.
The Fruity cake bar is going to launch by using the key performance indicators of the
company the technology, research & development and capable work force in order to
attack the portion cake market of Ceylon biscuits limited. And the fruity cake bar for
the kids and the people who preferred fruit cake as a snack. Ceylon biscuits limited
mainly targeted on youth and kinds segments for the portion cakes. People expects
cake portion as a tasty snack and CBL has introduced vanilla and chocolate portion
cakes only. So Maliban tries to offer fruity bar cake with the main ingredients milk,
eggs, and fruits will be offer different taste with a better quality for almost the same
price of the CBL portion cake.
Maliban mainly targeted on kinds then youth & senior citizens to the fruity cake bar.
Maliban decided to use Sinhala language slogan as “One velavaka kanna api katath
cake ekak” (“cake for all which can be tasted in any time”) to use and introduce the
produce for the society. Currently Maliban tries to segment demographically
according to the age. They try to segment it to 2 parts such as
Senior citizens
Kids & youth
Company is planning to have one size 40g Cake bar but in the future company might
introduce larger size cakes with the market preference and by segmenting according
to the income.
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communication in order to inform the public. Company should use effective
advertising strategy with the perspective of customer segmentation. New TV
advertisements for biscuits for kids by using super heroes of the kids Ex: Cartoon
characters, celebrity kids. Youth focused products should be advertised not only in
mass media but also in social media by using popular singers, actresses with attractive
concepts. Biscuits for Family and senior citizens should be advertised by using
celebrities with meaningful concepts. Selling strategies should be uplifted as
introducing new agents in to the network and establishment of own selling stoles in
airport and tourist attraction zones. Sales promotions should also be innovative in link
the customers with the brand. Push promotional strategies – trade promotions of
pushing the retailers or whole sellers in introducing the products to the next level by
allowances, free trials, buy back guarantee, discounts and displays, And contests of
selecting the best seller, retailer and wholesaler. Pull strategy can be used in
marketing communication by effective slogans, and attractive contents by suing
Facebook fan page even to meet prospective customers. Company has already
enhanced its public relations by using CSR strategy and should use social networking
Ex: Facebook fan page for the brand and sharing of information’s with the customers
in order to update them and keep linked with the brand. Updated website for the
company is important for public relations.
Figure No: 06
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Source: Google, 2016
Ansoff Matrix
Figure No: 07
There is an existing market for portion cake but Maliban is going to introduce totally
different new product. So Product Development strategy is the appropriate strategy
within this situation. Prior to the launching of the product a mass marketing
campaign must be launched. First hints to the new product can be introduced by using
social media Ex: Facebook. Then a children’s advertisement with an interesting
concept by emphasizing that the “Ammage aluthma hodama therima” (“Mother’s
good and newest selection”) is coming to the market soon & it is totally different from
the other portion cakes. And with attractive new packaging which can keep the quality
taste of the product.
Figure No: 08
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Source: Google, 2016
Within the mean time a poster campaign is going to be launched new interesting
activities are scheduled to launch by the official Maliban Facebook fan page with the
purpose of standardizing the market addressing of the company for overall product
range
3.3. Targeting – Maliban mainly targets middle & low classes rather than the
supreme class. Mainly Maliban cake bar is target on kids & youth. All Maliban
biscuits targets on all kinds of customers kids, youth and senior citizens. Marketing
addressing should be updated accordingly.
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Activity Benefit
3.5. Segmentation – Maliban brand has geographically segmented & covered the all
parts of srilanka. As well the company considered about the demographic
segmentation also both supplies the products for all the ages.
With the launch of the fruity cake bar and set of advertisements are being scheduled
to launch which are specially focused on kids, family and senior citizens.
Later Advertisements
3 Advertisements for 3 age sets is going to be created as soon with the launching of
the product.
Selected segments
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Figure No: 09
Kids
Youths
Senior Citizens
Concepts of the television advertisements for the fruity cake bar and the
concepts o be used in market addressing of the company
Kids advertisements and posters – For the fruity cake bar the advertisement
decided is kid is given several kinds of sweets to eat with evening tea and kid is
refusing to eat biscuits but mother is bringing a small packet and opening it kid
smells the cake and running to mother and eating the cake and they share it with
family for evening tea. Poster camping for the fruity cake bar will presented as
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three posters mother with kid holding a cake bar, family is eating a pieces of cakes
of fruity cake bar and grand other and grandfather is sharing a fruity cake bar
together.
Youth advertisements and posters – For the fruity cake bar, high school students
are very nervous before their exam and one student is bringing a bag of fruity cake
bars and throwing them to the students. Then they are curiously opening the
packet and eating the cake, facial mood is changing and shows they get refreshed
and happy. For the posters the group of upcoming singers and announcers will be
used.
Senior citizens – Two senior citizens are talking about to have something good to
the evening tea and kid is bringing a packet of fruity cake bar and requesting to
have. Then they happily sharing together the cake and talking about the freshness,
taste of the cake.
For the other products of the company with the users of new singing stars, gypsy’s
music band and senior actors and actresses of the Sri Lankan cinema will be used
to advertise the existing products. More market researches through road
promotions of the products will be held. Company will be opening their own
selling stalls in areas of tourist attractions like Weligama, Pasikuda, Arugambay
and promote the biscuit no only to the locals but also to the foreigners.
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Figure No: 10
When considering about the portion cake competitor CBL the products O’la, O’ye,
Ah ha the packaging of the products is not u to the standard to keep the cake with
freshness for long term, before the expiry date it is generating an unpleasant artificial
odor although the cake is tasty.
Figure No: 11
Maliban tries to engage in positioning itself as a high quality high taste biscuit.
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Figure No: 12
Alternative Strategies
(1) Try to launch interesting & touchy advertisements set emphasizing about the
quality & the taste. It can be described as an additional expense for the Maliban
but there is a tendency to increase the market share of the product
(2) Reduce the price of the product to its competitor’s price range. Initially this will
reduce the profit margin & the profit but on the big picture sometimes people
might be attracted to the product because it is within the same price range as its
competitor with a better quality & taste.
When consider about the Alternative Strategies, 1st Strategy can be described as the
most alternative strategy appropriate strategy for the situation because if we use the
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2nd strategy since product’s profit margin is low although the company increase the
market share it would not that much affect for the profit. Within the 1 st Strategy
although it spends a certain expense profit margin stays the same. So there is a
tendency to increase the profit by this strategy.
Product Policy
Maliban has created fruity cake bar the portion cakes to the exact size of the CBL
portion cakes & Maliban offers 1 sized packet 30g. Maliban is going to create the
cake which is vanilla taste fruity cake which emphasizing the full of goodness of
fruits and milk with in the promotions. The package of the cake will be arrange in
pink color which is attractive for the kids is a beautiful shininess with eye catching
colors & they have tried to point out the shininess in the advertisements also.
Company has used quality packaging for the all kind’s biscuits which can keep the
exact quality and taste until the date of expiry.
Figure No: 13
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Pricing Policy
CBL has placed the portions cakes (30g) for Rs.30 and he Maliban Fruity cake bar
also has priced for Rs.30. Maliban cake bar is under the new product development and
differentiation strategies also the product is under fair pricing strategy.
Distribution policy
Maliban fruity cake bar is mainly target on capital of the country to promote and
distribute first under major retiling stores of Keels, Cargill’s, Arpico super under
promotional rice for the first month of selling for the kids only. And then product will
be distributed to the retailers, wholesaler’s network of the company to distribute the
product island wide. Northern area will be focused specially as the emerging market
for the company.
Promotion Policy
Munchee tries to engage with the emphasizing their quality & the tastiness of their
biscuit and new cake bar. All the ages have been targeted to this product by using a
set of promotions.
New promotional policy of the company targeted on tourists arrived in to country and
all the other segments. Ethical promotional campaigns will be presented using social
media, mass media and print media by using popular characteristics from different
industries. Wordings, slogans also will be updated in promoting the existing products
of the company, brand apart from competition and grow top-line, bottom-line and
market share while delivering superior consumer value compared to competition by
two years’ time.
Customer Relationship
Maliban tried to strengthen the relationship with the customer by emphasizing about
the superior quality & high tech machineries & the manufacturing process by the
senior citizen advertisement. Customer relationship officers will be especially collect
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and evaluate the customer responses through social media in relation to maintenance
of ethical business.
3.9. Implementation
Maliban biscuits need to proactive & engage with the cross functioning team works in
order to achieve the higher targets within two years of time. Since Maliban always
tries to introduce new products product customers will be compelled to try the product
after the massive promotion. New packaging materials will be used which is imported
for the products and change the promotional tools company used in to innovative and
new competitive promotional tools as mentioned above in standardizing the
promotional campaigns of the company during the two years to offer best customer
value which aligned with the company obejcives.
Time Frame
Chart No: 07
DURATION
ACTIVITIES J F M A M J J A S O N D J F M A M J J S O N D
R & D on fruiy cake bar and cheking of market feasibility
Aqusition of Tecnology
Educate and train the excisting emloyees for the production
Setting the production targets and marketing targets
Planing of standerdization of peomotional campaign of products
setting marke targets for the arketing sales force
acqusition of raw materials and sample production of cake bar
quality and health and safety assurance
Start the production
Evaluation of Market targets set towards the standerdization
Leading the promotional campaingns of ovarall products
evaluation of the market and customer expansion
Manage the cake production and promotions according to demand
For the above process company need not to invest huge amount as the knowledge,
technology and labor is available. Company is estimated the budget of 40Lks.for the
new production and 10Lks. For the market addressing standardization in order
achieve the objectives set on key performance indicated for the company. Also
company is expecting to expand its market share at least by 30% from the new
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product and by enhancement of market addressing to meet the competition comes
from the Munchee and other brands in the industry.
Table No; 01
1. From the first introduction the new product has adopted, market has attracted by
the customers.
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4. Conclusion
Currently the company Maliban is facing critical marketing issues due to the heavy
competition company faced towards the market leader Munchee. Due to those issues
company founded strategic path way of introducing new product in to the market as a
differentiation in its product range as the Munchee is not been addressed the portion
cake market segment so far. and to upgrade the strategic market addressing of the
company in relation to enhance the competitive advantage of the company and to
increase the prospective customers to the brand for next two years in delivering a
value to customers by expanding the market share. As the Maliban expected to set the
brand apart from competition and grow top line, bottom line and market share, the
implemented plan will be supported the company in achieving its objectives set by
using the key performance indicators of the company while reducing the expenses of
the new market plan.it will be helpful for the company in aiding the profitability of
the company. Maliban will be able to enhance its market share and meet the forces
come on their way by the implemented strategic marketing plan.
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5.List of references
Anon. 2016., Maliban Biscuits Recognised Once Again For Superior Quality And
Excellence. Business Today [Online] 8th October. Available at:
http://www.businesstoday.lk/article.php?article=3435 [Accessed date 16th of January
2016]
Anon. 2014., Maliban carries out special CSR project in Welikanda area. Daily FT
[Online] 8th of October. Available at: http://www.ft.lk/article/359779/Maliban-carries-
out-special-CSR-project-in-Welikanda-area [Accessed date 18th of January 2016]
Anon. 2015., Maliban moves up among Brands, LMD Brand Annual. The Island
online, [Online] 26th December. Available at: http://www.island.lk/index.php?
page_cat=article-details&page=article-details&code_title=81586 [ Accessed date 20th
of December 2015]
Anon.2012., Sri Lanka among largest biscuit consuming countries in Asia, The
Sunday Times Online [Online] 19th October, Available at:
http://www.sundaytimes.lk/081019/FinancialTimes/ft319.html [Accessed date 12th of
December 2015]
Anon. 2013., Maliban increases production for greater dominance. The Sunday Times
[Online] 15th of September. Available at: http://www.sundaytimes.lk/130915/free-
hold/maliban-increases-production-for-greater-dominance-62244.html [Accessed date
18th of January 2016]
Godin, S., 2007. Permission Marketing: Turning Strangers Into Friends and Friends
Into Customers. 2nd ed. Rockefeller Center, New York City: Pocket Books.
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How to Enter the Global Market In 5 Steps Young Entrepreneur Council. 2012. How
to Enter the Global Market In 5 Steps Young Entrepreneur Council. [Online]
Maliban biscuit manufactures (Pvt) Ltd. 2015., Company overview [Online] Available
at: http://www.malibanbiscuit.com/company-overview [Accessed date 17th of
December 2015]
Maliban biscuit manufactures (Pvt) Ltd. 2015., Vision & Mission [Online] Available
at: http://www.malibanbiscuit.com/our-values [Accessed date 20th of December
2015]
Perara G. 2009., House of Maliban - Sri Lanka's number one choice, Maliban
Yesterday, Today and Tomorrow. The Sunday times [Online] 18th October. Available
at: http://www.sundaytimes.lk/091018/Fh/003.html [Accessed date 17th of January
2016]
Selvanayagam S.S, 2014., ‘Biscuit Battle’ Ends in Sri Lanka as Maliban and Munchee
Reach Settlement in Court Case. DBSJeyaraj Online, [Online] 12th September.
Available at: http://dbsjeyaraj.com/dbsj/archives/10507 [Accessed date 20th of
December 2015]
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Sri Lanka Institute of Marketing. 2012., Market research [Online] Available at:
http://www.slim.lk/slim-events/events/peoples-awards [Accessed date 20th of
December 2015]
Trading economics. 2016., Sri Lanka GDP Growth Rate 2003-2016 [Online]
Availabla at: http://www.tradingeconomics.com/sri-lanka/gdp-growth [accessed date
25h of January 2016]
People are the most vital element of the organization to provide value in a business to
customer marketing environment and they must have the needed training as well as
continuing development, because of that Munchee does many programmes improve the
skills of their employees. Munchee doing training mechanism to the staff. Munchee doing
relaxing programs to the staff and HR recruiting new employees to the company.
Munchee providing very efficient delivering service to the Sri Lanka and other countries.
They use good quality process and follow new methods.
The environment, which is Maliban, delivers products. Maliban use standard quality
activates for physical evidence. Some Munchee biscuits are packed in cardboard boxes also
some healthy range biscuits are packed in cardboard boxes and their prices are little bit high.
(EX: Digestive biscuits, Kothalahimbutu biscuits, Karapincha, Tea time assortment)
Maliban have good top management. Maliban is reliant on the people who run them from
front line sales staff to the managing director. Having the right people is essential because
they are as much a part of the business offering as the product / service maliban offering.
Maliban have a customer service hotline and contactable phone number to contact any
given time.
Especially process is relevant to the service industries but in some kind of manufacturing
companies also have processes. Maliban makes direct contact line to find out ideas and
suggestions of customers. So Maliban has to give a good service to customers.
Maliban using visible and attractive colors to products. Introducing different sizes and
different flavors. Interiors of the packing made up aluminum layer. Maliban temptation
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biscuits are arranged in a very special way. Each and every biscuits are covered by an
aluminum covers, at last they insert that packets of biscuits to an attractive cardboard box.
1. Primary Activities
1.1 Inbound Logistics
When comes to the export of goods Maliban provide transport from shipping place of
production to the Maliban ware house. Fumigation, obtaining relevant certificates for
the export purposes is other value-added services. In the import sea freight
communication with relevant shippers in the various destinations, picking up the
relevant goods, storing in the ware houses in the relevant destinations till it ships to
relevant destination.
1.2 Operations
In Maliban exports the operation is stuffing the relevant cargo inside the container
according to the stuffing plan. In this case the Cargo must be stuffed to the container
without any damages and relevant cargo must be send to the relevant containers
accordingly. And should send to the relevant ships accordingly. In Import Sea cargo
must be DE stuffed accordingly.
1.5 Services
Tracking the customer’s cargo till its deliver to relevant parties, issuing Delivery
orders, Bill of ladings, surveying for the damage cargo and issuing relevant letters to
obtain the insurance claims and sending arrival notices some of the additional services
provided by the company.
2. support activities
2.1 Technology Development
The firm provide tracking system to all their customers to track their cargo through
new innovative system .using this system customers can see where their cargo are
currently lying on or which vessel the shipments are on and time this shipments will
be delivered to the destinations.
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3.8. Marketing Programs for two years
Product Policy
Maliban has created fruity cake bar the portion cakes to the exact size of the CBL portion
cakes & Maliban offers 1 sized packet 30g. Maliban is going to create the cake which is
vanilla taste fruity cake which emphasizing the full of goodness of fruits and milk with in the
promotions. The package of the cake will be arrange in pink color which is attractive for the
kids is a beautiful shininess with eye catching colors & they have tried to point out the
shininess in the advertisements also.
Company has used quality packaging for the all kind’s biscuits which can keep the exact
quality and taste until the date of expiry.
Pricing Policy
CBL has placed the portions cakes (30g) for Rs.30 and he Maliban Fruity cake bar also has
priced for Rs.30. Maliban cake bar is under the new product development and
differentiation strategies also the product is under fair pricing strategy.
Distribution policy
Maliban fruity cake bar is mainly target on capital of the country to promote and distribute
first under major retiling stores of Keels, Cargill’s, Arpico super under promotional rice for
the first month of selling for the kids only. And then product will be distributed to the
retailers, wholesaler’s network of the company to distribute the product island wide.
Northern area will be focused specially as the emerging market for the company.
Promotion Policy
Munchee tries to engage with the emphasizing their quality & the tastiness of their biscuit
and new cake bar. All the ages have been targeted to this product by using a set of
promotions.
New promotional policy of the company targeted on tourists arrived in to country and all the
other segments. Ethical promotional campaigns will be presented using social media, mass
media and print media by using popular characteristics from different industries. Wordings,
slogans also will be updated in promoting the existing products of the company, brand apart
from competition and grow top-line, bottom-line and market share while delivering superior
consumer value compared to competition by two years’ time.
Customer Relationship
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Maliban tried to strengthen the relationship with the customer by emphasizing about the
superior quality & high-tech machineries & the manufacturing process by the senior citizen
advertisement. Customer relationship officers will be especially collected and evaluate the
customer responses through social media in relation to maintenance of ethical business.
Implementation
Maliban biscuits need to proactive & engage with the cross-functioning team works in order
to achieve the higher targets within two years of time. Since Maliban always tries to
introduce new products product customers will be compelled to try the product after the
massive promotion. New packaging materials will be used which is imported for the
products and change the promotional tools company used in to innovative and new
competitive promotional tools as mentioned above in standardizing the promotional
campaigns of the company during the two years to offer best customer value which aligned
with the company objectives.
Time Frame
DURATION
ACTIVITIES J F M A M J J A S O N D J F M A M J J S O N D
R & D on fruiy cake bar and cheking of market feasibility
Aqusition of Tecnology
Educate and train the excisting emloyees for the production
Setting the production targets and marketing targets
Planing of standerdization of peomotional campaign of products
setting marke targets for the arketing sales force
acqusition of raw materials and sample production of cake bar
quality and health and safety assurance
Start the production
Evaluation of Market targets set towards the standerdization
Leading the promotional campaingns of ovarall products
evaluation of the market and customer expansion
Manage the cake production and promotions according to demand
For the above process company need not to invest huge amount as the knowledge,
technology and labor is available. Company is estimated the budget of 40Lks.for the new
production and 10Lks. For the market addressing standardization in order achieve the
objectives set on key performance indicated for the company. Also company is expecting to
expand its market share at least by 30% from the new product and by enhancement of
market addressing to meet the competition comes from the Munchee and other brands in
the industry.
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Projected financial statement
Expected income by financial highlights, in relation to the implemented new product and
standardization of market addressing. strategic marketing plan for this brand for the next
two years which will set the brand apart from competition and grow top line, bottom-line
and market share while delivering superior consumer value compared to competition.
Table No; 01
All amounts in Sri Lankan Ruees Company Year ended
2017 2018
1. From the first introduction the new product has adopted, market has attracted by the
customers.
Conclusion
Currently the company Maliban is facing critical marketing issues due to the heavy
competition company faced towards the market leader Munchee. Due to those issues
company founded strategic path way of introducing new products and marketing methods in
to the market as a differentiation in its product range. Maliban goal should be to upgrade
the strategic market addressing of the company in relation to enhance the competitive
advantage of the company and to increase the prospective customers to the brand for next
two years in delivering a value to customers by expanding the market share. As the Maliban
expected to set the brand apart from competition and grow top line, bottom line and market
share, the implemented plan will be supported the company in achieving its objectives set
by using the key performance indicators of the company while reducing the expenses of the
new market plan.it will be helpful for the company in aiding the profitability of the company.
Maliban will be able to enhance its market share and meet the forces come on their way by
the implemented strategic marketing plan.
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More details of the plan
When considering about the whole biscuit industry Maliban biscuit can be described
as the second market Leader since it has 30 % of market share part from Munchee.
Positioning can be described as the consumer's perception of a product in relation to
its competitors. Fruity cake bar is trying to engaging in positioning itself as the tastiest
& the high quality portion cake in Sri Lanka which is suitable for all the ages.
Market Plan
According to the situation analysis, market summery author is planning to prepare
a marketing plan for the company for new two years. Author decided to suggest a
new product development for the company – fruity bar (potion) cake which
specially focused on kids segment and other market segments also and
standardization of market addressing of the brands for next two years. Objective
of preparation of marketing plan is to succeed the brand by growing the sales and
profitability, expanding its market share while making competitive advantages for
the brand.
Followings are the marketing objective of the Maliban cream cracker for year
2020/2021
• Increase cracker market share by 8% in year 2020/2021
Maliban cream cracker current market share is 39% of the cream cracker market.
Maliban supposed to grow market share by 8% by end of year 2020/2021.They plan
to gain 42.12% cream cracker market for Maliban cream cracker by end of this
financial year.
• Plan to introduce new products “Rice cracker” in 2020/2021
• Gain 1.5% of market share from new products in the year.
examples;
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PRODUCT MARKET SHARES
Smart Cracker 42.12%
New Products 1.5%
Total 43.62%
Pricing strategies
▪ Maliban must follow competitive and product line pricing strategy Same price that
Munchee in the market and high price than Lucky land cream cracker.
▪ Product line pricing involve to Maliban product line by different prices for different
product in same category. “Rice cracker”, “Sesame cracker”, “Cracker assortment”
and “Smart cracker” have different prices.
Place strategies
Placing means the product should be available from where you target consumer finds
to shop. This may be high street, mail order or the more current option via e-
commerce or an online shop so Maliban should always be ready to supply biscuits for
the customers on any time to any place. They must send their Marketing referees to
the retailors in rural areas and get their orders. If all the customers can buy Maliban in
their nearest shop or supermarket or canteen or in any place the demand for Maliban
will be automatically increased. Maliban have more than 30 companies compete for
market 60,000 metric tons in Sri Lanka. Malian is the one of the largest biscuits
marking company in South Asia. Maliban reaches every corner of Sri Lanka. Maliban
has a wide distribution system all over the Sri Lanka and 36 countries in the world.
Maliban bakes two billion biscuits each year and at least 80% of Sri Lankans have
tasted its products. Some three million Gold Marie biscuits are consumed every day
but Maliban must make their delivery system wider to achieve their targets and goals.
Promotion strategy
➢ Sales promotions
Sales promotions could stimulate trail purchase and repeat purchase of Maliban
biscuits
▪ Consumer promotions - Company plan few consumer promotions to achieve
revenue targets.
▪ Plan competition to consumers. Collect cream cracker wrappers and win prizes.
Company will select winners in every week.
▪ Rs.10/= off from Maliban assortment pack at supermarkets.
▪ Offer small biscuit sachet pack with every large biscuit assortment pack. (Bundle
offer)
➢ Trade promotions
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Company plans trade promotions to achieve 2020 revenue objectives. It will help to
take competitor shares and convert competitor customers towards Maliban brands.
Offer one unit free to all twelve-unit purchases for any maliban biscuit brand (12-1
free) for retailers.
▪ Offer 100/= discount for purchase one case of any type of biscuit packages for the
whole sellers.
➢ Advertising
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