Marketing Environment

(1st slide)
Good morning,
Today we are here to present marketing environment of CBL, So after our presentation, we
think you can get a clear idea about The marketing environment of CBL.
Firstly, I would like to say that, CBL have so many product brands in the market, among them
we selected Munchee brand. As you know it’s about biscuit.

(2nd slide)
Ok let’s turn in to the key points of our presentation,
 Firstly, there is a INTRODUCTION OF MUNCHEE
 And Secondly, we are going to talk about INTERNAL ENVIRONMENT
 Thirdly, MICRO ENVIRONMENT
 The Fourth point is, MACRO ENVIRONMENT
 Finally we will talk about, SWOT ANALYIZE OF MUNCHEE

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(3rd slide)
Ok my dear madam and dear friends it is time to dig a little bit about the golden history of CBL

It was founded in 1939 by Mr. Simon Arthur Wikramasingha, He acquired this factory, launching
“Williams Confectionery “with just 10 employees. It was mechanized in 1957 with Baker Perkins
lines from the UK and it was began operations in 1968. Since then, it has been able to survive in
the market for more than 50 years

At present they are exporting munchee biscuits to more than 60 countries. And the company
owns 62% of domestic market share in Sri Lanka.

(4th slide)
For a company the most important thing is their vision and mission, when we talk about the CBL
vision and mission you can see it on our slide, and they have their unique second vision, I think
that’s why they are in a highest position among other biscuit companies.

“Becoming the No.1 biscuit, chocolate and confectionary manufacturer and marketer in Asia,
while developing a global presence and recognition.” This is the other important vision of their
company.
(5th slide)

After the introduction we are going to focus a little bit on internal environment of CBL
Munchee,
There are three main attributes in internal environment, as
Current employees, Management and Corporate structure

We are going to talk about these main attributes with regard to munchee biscuit company.
)
(6th slide)
Well, lets see about who are the current employees of CBL,

Totally there are 290 current employees working in the CBL. not only this current employees
but also the company recruit all the other employees according to man-power system. The
company doesn’t publish this man-power employees’identities. Two types of employees are
working In this company they are executive and non-executive staff. There are 40 employees
working for executive staff and also 250 employees working for non-executive staff. Specially
the company cares about the employee safety and health. OHSAS 18001:2007 is example for it.

(7th slide)

The second main important point is management. it is the control unit of a company.

Because of the management decisions CBL munchee has maintained their position over 50
years in the market, to make these decisions they have a team of 40 members to carry out
management responsibilities. Among them they have senior management consists of 13
members. The management always cares about their brand name and specially they give
management trainee programs for their staff.it helps to give their maximum to the company.

(8th slide)

Finally, we are moving to the corporate structure of the company. When we talk about the
corporate structure it is pyramid shaped with a flat control space. Considering to the corporate
structure of the CBL munchee it has 40 executive level officers this figure shows how those
officers are divided into different departments.

The company running according to the BCG Metrix analysis and 7s model. According to our
reference of the CBL they didn’t public more information about their internal environment.

(9th slide)
Until now you heard about internal environment of CBL. Now let’s talk about what is the micro
environment of CBL munchee.

The micro environment can control the company to some extent. Here we can identify some
important factors like, Suppliers, Company, Competitors, Marketing Intermediaries, Public and
Customers

(10th slide)
Now we'll see who are the suppliers, Munchee biscuit company has good raw material
suppliers and most of the raw materials are bought from the Sri Lankan farmers. For example
take ginger and karapincha.Furthermore, their main and one-and-only Flour supplier is
Preema.

And second fact is the Company, CBL also deals with strategies and decisions within the
organization in this manner. They identify the needs and wants of the customers, then they
prepare & provide exactly what they want.

When we talk about the marketing intermediaries, In the case of Munchee, the services are
provided in the same manner. Their main marketing strategy is advertisement Campaign. They
spend lot of money for it.as well as they have their own logistics system and transportation
system.

Our next element is public. Munchee also runs various social welfare programs.As examples
Munchee launched a campaign called 'Munchee Hadnne Biscuits Vitharak Nemei' for Christmas
last year to help people with special needs. And also There were programs called “Munchee
Tikiri Shishyadara" to award the Scholarship 3000 student.

As u know all the business are running because of the customers. Our 5th element is
Customers. In Ceylon Biscuits, they have 62% Customer base in the market. And also, they have
customers more than 45 countries across the world. For do this all-action efficiency they have
65 agencies and 160 distributors in the local market and near to 850 sales and marketing staff
for distribute all over the market.
(11th slide)

Our last Element is competitors. Just think when you are in the classroom if there are no one
against you. You don't work hard and you never learn to how to face challenges to achieve your
success. As well as a company always have competitors. The CBL we are talking about also has
a large competitor. The strongest competitors is Maliban Biscuits Manufactories (pvt) Limited.
In Addition you can see more information about competitor analysis in this slide. This 1 st table
show us level Of Competitions. Their,

Brand Competitor is Maliban Biscuits Manufactories (Pvt) Limited.

Industry Competitors are Maliban Biscuits Manufactories (PVT) Limited, Luckyland Biscuits
Manufactories, KIST biscuits Company,etc.

Form Competitors are Hence Uswaththa Confectionary Works (Pvt) Ltd ,Prima Ceylon (Pvt)
Limited and Elephant House LTD ,etc.

Generic Competitors are DSI Shoes, Wijaya Products (PVT)LTD, Harischandra Mills PLC, etc.

And this 2nd table show us types of Competitors, their

laid – Back Competitors are Luckyland Biscuits Manufactories, Cherish Biscuits Company
Tiger Competitors is Maliban Biscuits Manufactories (PVT) Limited
Selective Competitors are Diana Biscuits Company, Cherish Biscuits Company
Stochastic Competitors is KIST biscuits Company

(12th Slide)
Until now we talked about micro environment of munchee. There are two methods to analyze
micro environment in CBL munchee. those methods are Porters Five Forces model and Three
C’s framework. Let’s find out how to analysis CBL munchee’s micro environment using Porters
Five Forces model.
1. Bargaining power of suppliers. -The main ingredient, wheat flour, is imported and
distributed in Sri Lanka by Preema Therefore, the bargaining power of Munchee is very low.
2. Bargaining power of buyers. - The power of Munchee Biscuit buyers through brand
development, product range, distribution, advertising and packaging is a bit of a bargain due to
the quality of the brand.
3. Substitutes- when munchee is increasing their selling price customers shift to another
substitutes company
For the Example-Wasana Bakery cakes, Bakery product of P&S,Etc
4. Threat of new entrants- when we talk about Threat of new entrants, they want high-level
capitalization for entering the industry. new biscuit industry entry into the biscuit industry is
minimal due to its high asset size and reputation.
5. Competitive Rivalry- The company will face intense Rivalry among existing firms if market
players are strategically diverse and target the same market.
Ex- Maliban Biscuits Manufactories (PVT) Limited
(Now this is your chance tharusha.
(13th Slide)
Now let’s discuss how to analyze micro environment of munchee’s using Three C’s framework.
1st one is customer- Munchee’s primary goal is interest of the customer not those share
shareholders in the company.
2nd one is competitors-in this point company considering about the competitors in purchasing,
design,
engineering, sales and servicing. Munchee competitors are Maliban, Diana,Luckyland, Cherish
etc.
3rd one is Channel members- . Channel members, sometimes called intermediariesor
middlemen, work together to complete the various tasks it takes to get a product from
production through to sale.

(14th Slide)
Until now in our presentation we talked about internal environment and micro environment of
CBL. Now we are moving to macro environment of CBL munchee.. The Macro Environment
consists of 6 different forces. These are: Demographic Environment, Economic Environment,
Social-Cultural Environment, Natural Environment, Technological Environment and Political &
Legal Environment.
(15th Slide)
The 1st one is Demographic Environment, when it attaching to the CBL Munchee they are selling
their products all over the world and exporting large number of products to the Asia. They
manufacture a variety of biscuits for babies, young and old in Sri Lanka. Different people speak
different languages in different countries, so Munchee print their product information in
different languages.

(16th slide)
2nd one is economic environment. in CBL they always concerned about their customers. They
release their products to the market according their customer’s income level.in case at lower
prices for low-income earners, medium prices for middle income earners, under higher prices
for high-income earners. You can see few examples in the table. the munchee corporate
significantly to the government tax revenue and always there are job opportunities for the
unemployment people. Sri Lanka is currently facing inflation. As a result, the prices of Munchee
biscuits are also on the rise.
(17th slide)
The social cultural environment of CBL, they concern about the health of the people and have
introduced a variety of products.as examples we can take Karapincha, Kothalahimbutu Biscuit,
Kurakkan Cracker. And munchee works as a sponsor for social activities in Sri Lanka. As an
example we can take LPL 2021 Cricket tournament. Sri Lanka is a cultural country so people
have a habit to the taking some foods to see their relations. For that they introduced the gift
Assortment biscuit.

(18th slide)
4th one is natural environment. Munchee always uses local natural ingredients for their
production. Rice flour, Kurahan flour, Ginger, Karapincha are the examples for it. Now-a-days
Munchee began shifting from polythene packets to card board packets.

(19th slide)
5th one is technological environment The munchee has been able to give a new face to the
business by moving away from the traditional old ways of business and moving towards
automation and digitization. The nearest method is they avoid long descriptions for the packing
and they use bar code & QR Codes for it. Now the company using social media for all biscuits
advertisements.
(20th Slide)
Finally, Political & legal Environment in CBL.so always they make their products according to
those standards. as examples, BRCGS FOOD SAFETY, ISO 22000, ISO 9001, ISO 14000, SLS 251 &
SLS 1313.as well as they are following colour coding rule. Because of the political policies CBL
making price changes of their product.

(21st Slide)

PESTLE Analyze, this is the method of how they analyze macro environment in CBL.
Political- Imposing taxes on imported raw materials can be taken as a major influence exerted
by the government for the Munchee company. It affects the profitability of the firm and the
pricing of the manufactured goods.

Economic-As inflation in the country raises the prices of all goods and services, it increases
Munchee’s biscuit prices, Moreover Munchee creates new jobs and contributes to the country's
economy.

Social - People have a great interest towards Munchee products and Munchee has introduced
their products according to various social events.
Technological - Munchee manufactures using modern technological equipment, adapting to
new technological processes.

Environmental - Munchee is committed to protect environmental rights and minimize pollution

and noise pollution as its products are environmentally friendly.

Legal- Munchee operates in accordance with government regulations and adheres to various
national and international standards for its products, protecting labor laws and regulations.

(22nd Slide)
SWOT is the method of analyzing everything that we have talked so far in our presentation. You
can see listed specific factors here. These are the Strengths of CBL munchee.” munchee” this
logo and brand name has been prevailing since 50 years in the market.so they have good image
for their brand name. Also, they have 62% local market share, and they have their own recipes,
and it has a unique taste. Also, they have taken many achievements. These are good strengths
of munchee.
When focusing on weaknesses. As main weakness we can take they have failed some products
like apple puff. As reasons for this, we could identify, they have taken poor management
decisions, didn’t do proper market research, didn’t understand what customer preferences
properly and poor planning. Munchee depends on only few lands and buildings. also, they take
critical material resources from few main suppliers.

When we talk about opportunities of munchee, mainly they have a large number of customer
base locally and internationally. In sri Lanka considering birth rate and child population they
have identified it as an opportunity and they produce more baby biscuits and kids biscuits to
increase their market and sales. Already Munchee has signed with free trade agreement with
India. As a result, it is a good opportunity for them to create the environment to export their
products to several other countries.

Let’s see what are the threats, Due to covid -19 pandemic situation, company faced some
problems. For example, because of restrictions of foreign countries there are some exporting
issues. And also, during the curfew period, they couldn’t distribute their products to the
customers properly. It has affected for their sales income. Maliban is a main competitor of
munchee. They always try to introduce similar products to the market. sometimes because of
this thing customers are misleading.

(23rd slide)
Ok my dear madam & dear friends this is the end of our presentation. We think you have got a
clear idea about marketing environment of CBL Munchee.. thank you very much.