Strategic Analysis of Maliban Biscuit Manufactories

This article provides a strategic analysis of Maliban Biscuit Manufactories, including Porter's Five Forces, SWOT analysis, and PESTEL analysis.

Table of Contents
1. Introduction..............................................................................................................................1
1.1 Company Overview..........................................................................................................1
1.2 Vision and Mission Statements of the Company..............................................................1
1.3 Key Products of Maliban Biscuit Manufactories (Pvt) Limited.......................................1
2 Strategic Analysis.....................................................................................................................3
2.1 Porter's Five Forces Model...............................................................................................3
2.2 SWOT Analysis................................................................................................................5
2.2.1 Strengths....................................................................................................................5
2.2.2 Weaknesses................................................................................................................6
2.2.3 Opportunities.............................................................................................................6
2.2.4 Threats.......................................................................................................................6
2.3 PESTEL Analysis.............................................................................................................7
2.4 4Ps strategy analysis of the Company.............................................................................10
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1. Introduction
1.1 Company Overview
Maliban Biscuit Manufactories (Pvt) Limited is the pioneer and one of the most popular taste of
biscuits manufacturing company in Sri Lanka. The Maliban is the most trusted and also the high-
ranking brand that lasts 60 years ago in Sri Lankan Confectionery industry which has a
production capacity of over around three thousand metric tons per month with over seventy-four
thousand (74,0000 outlets island wide. Maliban manufactures range of crackers and wafers
which sold over the island and sold over thirty-five (35) countries across five countries in
international market. (Lakmini, 2016)
1.2 Vision and Mission Statements of the Company
The vison of the Maliban Biscuit Manufactories (Pvt) Limited is “To be the most successful and
respected Biscuit company in Sri Lanka” (Maliban, n.d.).
The mission of the company is “To win the Hearts and Minds of Consumers by delivering food
propositions with exceptional quality, safety & value whilst being environmentally & socially
responsible, creating employee satisfaction and returning optimum value to stakeholders”.
(Maliban, n.d.)
1.3 Key Products of Maliban Biscuit Manufactories (Pvt) Limited
The Maliban (Pvt) Limited is the most popular biscuit production company in Sri Lanka, and it
has the attract the taste of the 99% of the Sri Lankans by producing different kinds of varied
flavors to match different level of ages and people’s perception for flavors.
So, in the Maliban Biscuit Manufactories (Pvt) Limited there are number of kinds of biscuits
available and few of them are listed below.
 Gift assortments
o Tea Time Assortment
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o Classique Biscuit Assortment
 Health and wellness kind of biscuits
o Sugar Free
o Bran Cracker
 Wafer
o Chocolate Wafers
o Vanilla Wafers
o Lemmon Wafers
 Sweet Biscuits
o Milk Shortcake
o Nice Sorties
o Gold Marie
o Ginger Light
o Marie Premium
o Marie Chocolate
 Savory
o Krisco
o Cheese bits
o Chick Bits
o Snackers
o Cheese &Chellie Snackers
o Masala Snackers
o Spicy Onion Bitsy
 Cream Biscuits
o Orange Cream
o Custard Cream
o Real Double Chocolate & Vanilla Real Double Strawberry &Vanilla Chocolate
Cream
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2 Strategic Analysis
The strategic analysis is an essential factor for any organization to analyze the hidden and urging
issues within a company and then to recreate strategies matching to the organizational goals and
objectives.
As the initial step for the strategic analysis, the business context should be clearly analyzed and
understand in order to develop powerful strategies for the organization.
The strategic plan should be developed after a though analysis on both the micro-environment
and the macro environment of the organization. The strategic analysis for the micro environment
of the organization was conducted by applying the Potter’s five force model and the macro
environment analysis was conducted using the PESTEL analysis and the SWOT analysis.
2.1 Porter's Five Forces Model
The porter’s five forces support the assess of the company’s micro level factors in order to assess
and evaluate the competitive strength and position of a business organization. According to the
porter’s five forces, there are five factors that affect the strategy and the continuation of the
business process. According to that the five forces are;
 The bargaining power of customers
The customers’ perception and their wiliness to the pay and their capability to the pay affect the
business. If the customers are not ready to pay for the product, then it creates a bargaining power
by customers of the business continuation. So, for the Maliban company, the customers
perception regarding the flavors create impact on their business products. Therefore, the Maliban
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as it has done already should be able to produce different flavors that matches the different
groups of customers.
 The bargaining power of suppliers
The demand and the pressure release from the suppliers also have an impact over the business.
The bargain power of the suppliers for the budgets and the supply of the adequate resources on
time create considerable impacts on the strategic plan of the organization when continuing the
business process.
 Threat of new entrants
The new entrants to the market also create an impact to the business as it creates the division of
the market and the competition for the business. For example, the entrance of the new biscuit
production companies such as Munchee, Cherish, Diana, Crown create threats for the market
strategy of the Maliban company.
 Threat of substitutes
The presence of the substitute products in the market should be considered attentively when
developing the strategic plan for the organization. For the Maliban, the biscuit production should
be done in an advanced unique way, ensuring that no other flavor or substitute can replace the
need and taste gaining from the Maliban biscuits. The availability of the fresh bites, bakery
products, fresh fried items such as wade, samosa, Cake manufacturers, homemade snacks and
foods create the threat of substitutes for the Maliban company.
 Competitive rivalry
The main driver is the number and capability of competitors in the market. Many competitors,
offering undifferentiated products and services, will reduce market attractiveness of the Maliban
brand. For example, the rivalry of the Munchee biscuit has a great impact for the Maliban. The
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Munchee tries to compete the Maliban by however producing the same flavored biscuits with far
more similar kinds as of Maliban.
Figure 1
2.2 SWOT Analysis
The SWOT analysis is another major tool that support the strategic analysis of an organization.
The SWOT analysis provides an in-depth analysis into the strengths, weaknesses, opportunities,
and the threats for an organization. The SWOT analysis provides a macro environment analysis
to the organization as this is a is a method for analyzing the internal strengths and weaknesses,
and the external opportunities and threats facing the enterprise.
2.2.1 Strengths
The strengths include the company’s capabilities and resources that enable it to provide value
and generate competitive advantage. According the Maliban Biscuit Manufactories (Pvt) Limited
the strong brand name and the image that have been built by the Maliban is a great strength for
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Porter's
Five Forces
Model
The
bargaining
power of
customers
The
bargaining
power of
suppliers
Threat of
new
entrants
Threat of
substitutes
Competitive
rivalry

the company. Further, the strong market presence as well as the established sales and distribution
network are the strengths for the organization. In addition to that the strengths such as set of
loyal customer base and the quality, the capability and the effectiveness of research and
development adds strengths to the organization.
2.2.2 Weaknesses
The weaknesses are issues that limit the company’s ability to exploit its strengths. The Maliban
company’s inability to acquire scarce raw materials such as wheat flour and the Dependance of
suppliers for that, insufficient production capacities of some products such as Bran crackers, the
unavailability of energy and cost saving approaches, low profit margins of some products make
the business wakens its smooth flow.
2.2.3 Opportunities
Opportunities provide an organization with the chance to improve its competitive position. The
introduction ideas of new production by Research and Development center such as Portion cake.
The ability to geographically expand the seller network, the opening of own sells stores in cost-
saving modes, the opening of North East markets following the war, and trade agreements with
foreign nations to enter into international markets like India were better opportunities that were
created for the Maliban Biscuit Manufactories (Pvt) Limited over time.Threats
Threats may come from competitors, individuals, organizations’, regulatory bodies, or other
factors in the greater business environment. The threats that coming from the competitive brands
that are more similar to the Maliban such as Munchee creates a huge impact on the
organization’s strategy. Further, the changes in the economical stability create a threatful impact
for the company as it creates customers buying patterns and needs. Further few threats that may
occur for the Maliban company are listed below.
 Entrance of international and highly established brands into biscuits industry (Britannia,
Kist biscuits)
 Free trade agreements with countries
 Entrance of international producers to local market
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 Price competition of some products
 Rising of health concerns by the society (sugar free products)
Figure 2
2.3 PESTEL Analysis
The PESTEL analysis support the macro analysis of the organization by providing an emphasis
into the situational analysis of the organization.
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Strengths
Strong market precence
Strong distribution network
Brand loyalty
Supplier network
Tecknological capabilities
Effective R&D
Weaknesses
Dependance on suppliers
Insufficient production capasity
Unavilability of energy and cost
saving approaches
low profit magins
lack of market communication
Opportunities
Introduction ideas of new
production by R&D
Enter into international market
(India)
Geographical expansion of seller
network
Opening of own sells stores
incost saving
Threats
Entrance of international and
highly established brands in to
biscuites industry (Britania,Kist
biscuites)
Free trade agreements
withcountries -
Entrance of international
producers to local market
Rising heath consers (sugerfree
products)

The PESTEL analysis is the analysis conducted on the political, economic, social, technological,
environmental, and legal factors affecting to the organization.
 Political Factors
The political policies and the current instability of the government create impact on the buying
patterns of the customers. The political rules on taxation policies and other policies that have
implied on the foods and beverage industries and also other industries directly affect the
production of the Maliban products due to increments and decrements that may causes with the
other policies.
 Economic Factors
The economical stability of the country directly affects the Maliban biscuits as it directly creates
an impact on the buying patterns and the buying priorities. It is, currently due to the high
economical crisis in the country the customers have reduced their attention for the purchase of
sub food items and have prioritized the main foods and beverages essential for the day today
consumption. The increase and decrease in the inflation rates create the changes in the costs and
price values so, that the all the production processes of the biscuit affect with the changing prices
of the raw materials and transportation requirements.
 Social Factors
The social factors also affect the strategic process of an organization. The perceptions of the
society and the social findings and myths regarding the food patterns and the health concerns
create an impact to the company.
The population’s age limits, ethnicities and as well the religion and the languages affect the
Maliban market. As the data statistics, from the total population it covers Sinhala language, and
so that targeting that most of the Maliban company’s advertisements and slogans are displayed in
Sinhala language, so that it is conveyed to a maximum set of customers.
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As the age determines the perceptions for the selection of the flavors it is essential for the
Maliban to consider the age wen designing the tastes and the variations of the biscuit products.
Moreover, the Sri Lankans are people that highly concerns for the healthy food patterns. So, it is
better if the Maliban can maintain the health standards and move towards natural food processing
trend if it is possible.
 Technological Factors
The technical advancement in the industry also creates an impact on the production industry. The
advancement of the manufacturing and production techniques directly affects the quality and the
business process of the company. Also, the capabilities for the technological acquisitions and
also the level of the technological acquisition done by the competitors made and impact over the
business, so that necessary strategies should be taken to eliminate the competition or the negative
effects that may create with the technological factors.
As in the Maliban company, Maliban engaged with research and development processes and
tried to release fresh goods on the market. Maliban's state-of-the-art plant has received a new
enterprise resource planning system, and it is anticipated that this system would allow the
company to connect all of its local and foreign suppliers as well as other manufacturers to its
network. Maliban Biscuits effectively modernized the facilities and equipment, however some
outdated equipment remains.
 Environmental Factors
Maliban could boost their effectiveness if they could upgrade the envirionmental factors in an
eco friendly manner. Maliban also gave careful consideration to elements including noise levels,
wastewater treatment, and solid waste disposal. For its environmental management system at the
facility in Ratmalana, Maliban was awarded ISO 14000 certification. Maliban intends to build its
product line on more natural products and those that are still in the research and development
stages. (Fruity cake with real fruits) for a culture that is more concerned with health.
 Legal Factors
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Maliban Biscuits conducts its operations in accordance with the "Consumer protection law,"
"Labor law," and anti-discrimination legislation, all without engaging in any form of
discrimination. By abiding by the "Health and Safety law," the company also takes into account
health and safety issues. Therefore, it is clear that the Maliban abide by the necessary legal
processes and governmental policies as mandated by the restrictions set by the government.
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Product
Price
Promotio
n
Place
2.4 4Ps strategy analysis of the Company
Figure 3
 Product
The Maliban biscuit (Pvt) Limited is the top branding biscuit production company in Sri Lanka
that everyone chooses. The Maliban company has a wide range of biscuit production to match
the different choices of tastes and also the different tastes matching to the different levels of ages
of people.
Also, according to the latest market research (KPI) conducted society is more health conscious
and always demands the high quality sugar free feel gold biscuit. So, that the Maliban has taken
attentive steps for that by introducing sugar free biscuits such as Bran crackers, cream crackers
(cracker experience by introducing three innovative ranges namely fun cracker, classic cracker
and veggie cracker (With natural vegetables etc. also, the ginger biscuit, and other sugar free
salty and spicy biscuits were other several research introductions to the market in order to
capture the market. 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
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from Maliban and also the advertising. Also, the other biscuit producers are also imitating the
products and techniques of the company. Therefore, strategies should be implemented in order to
challenge those and to overcome those tactically.
 Price
The Maliban biscuit company had positive retail price which could be bared by the local
customers and also company offered discounts for the retailers with a thirty day credit periods
with the purpose of extending the retailer network. The Maunchee also had the same retail
pricing and also, they used to offer discounts in expanding the network.
 Promotion
The Maliban company engaged in many attracting promotion campaigns to take their products
deep inside to the customer’s lives. As the major promotion campaigns, they organized many
cooperate social responsibility activities to promote their products while helping the need.
Among those CSR projects, Water project in Northern area (Welikanda) and “Buddhi
prbaodaya” program (Lakmini, 2016)which offers computers to village schools in developing the
IT knowledge of the society were attracting. Also, the process followed in acquiring the stocks of
banana required for the production processes from the village farmers was another project
followed by the Maliban to promote their name while giving helping hand for the village
farmers. Further, the company shared several advertisements using famous actors and actresses
and kids. The Muchee as the main competitor they also conducted the following advertisements
highlighting the following themes.
o Kids will do anything for Maliban Chocolate Biscuits.
o Making your life nicer with Maliban Nice
o Maliban Ginger biscuit 100% Natural Ginger Kick
 Place
One of the competitive advantages of the Maliban is its worldwide spread of warehouses
ensuring the delivery and supply od the products with enough quantities on demand. And
especially near in port and airport. Maliban Company produced 25million packets of biscuits
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every month in their state of art manufacturing facility under stringent hygienic conditions which
is located in Mount Lavenia.
2.5 Key Strategic Issues
 Competition
The Maliban biscuits private limited has to face a hugely demanding and challenging
competition with the Munchee biscuit manufacturing company, being the second most biscuit
brand name that are not second to the productions of the Maliban biscuits company. Because the
Munchee biscuit has also been competitive enough to produce products that are most similar in
name and appearance to the Maliban biscuits. Other than the top competitor, Munchee, the other
sub biscuit producing companies such as Maam, Little Lion, and Britannia has also created
competition for the Maliban in the market. Maliban currently controls thirt percent of the global
market for biscuits. It is challenging to anticipate the same level of market competition in the
future. High volume and marketing mix methods are currently being used by the organization to
overcome the obstacles in its path. In order to increase its market share and maintain competitive
prices for its biscuit products, the company engages in mass production. The strategy employed
by Maliban depends on innovation.
 Market warfare
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The market warfare with the Maliban biscuits and the Munchee biscuits was at high point in the
market. The maliban was the first most producer to introduce the fresh new innovative products
to the market. But after the initial introduction by the Maliban, the Munchee was also took steps
to introduce the same named product with differently improved taste and packaging. Brand
Munchee used to be the biscuit market leader currently because of the smart market
segmentation and positioning and aggressive marketing strategies that have been applied by the
Munchee. Munchee adopted a three prolonged challenging strategies such as frontal attack,
encirclement attack and segmental attack.
Majorly, there were three major turning points, with the journey of Munchee biscuits that made a
great impact on the Maliban biscuits.
The intoroduction of the Munchee Tikiri Marie, Munchee Real Lemon Puff, and Munchee Super
Cream Cracker was a great hit for the Maliban products that were mostly similar. The Maliban
biscuits are responsible for introducing all of these products to the market. Munchee confronted
Maliban head-on by releasing "me-too" products with several kind of taste and quality
enhancements.
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2.6 Marketing Strategies, Options & Programs
In this section the report emphasizes the strategies that can be applied to tactfully manage the
strategical issues analyzed in the above phases of the organization strategic analysis process.
Currently, the Maliban biscuit is the top market leader for the biscuits tatsets and in order to
assure this place without making the shading of their barnd name, the company should invents
new products with much more quality and taste innovations. Mlliban should take steps to
produce uniques tastes and products that cannot be immitaed by another biscuit in orer to save
the market share for their brand itself.
The Fruity cake bar was to launch by using the major performance indicators of the company’s
technology, research and 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 made the factors that create market for that. Ceylon biscuits
limitedmainly targete d on youth and kinds segments for the portion cakes. People expects cake
portion as a tasty snack and CBL has introduced vanilla and chocolate portioncakes only. So
Maliban tries to offer fruity bar cake with the main ingredients milk,eggs, and fruits will be offer
iffer rent taste with a better quality for almost the same price of the CBL portion cake.
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Further, the standardization of market addressing product promotions by the company in relation
to the product range of the company should be uplifted innovatively by identification of the
market trends and by using technology strategically byadvertising, selling, sales promotions and
public relations.
Pull strategy can be used inmarketing communication by effective slogans, and attractive
contents by suingFacebook fan page even to meet prospective customers.
Company should also furthermore targets on CSR strategy and should use social networkingEx:
Facebook fan page for the brand and sharing of information’s with the customersin order to
update them and keep linked with the brand. Updated website for thecompany is important for
public relations.
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3. Value Chain Anaysis of Maliban
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Figure 4
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For every organization its threshold and unique capabilities ae the drivers that leads the business
towards success being the market leader.
For the Maliba company, its long lasting brand name in the country is the most competitive
advantage to secure the market as it is for years. The trust that the Maliban company have built
over the years by providing a trust of quality, goodness and the super tasty of the products is the
major capabilities within the company that makes them the top barand name of the biscuit
industry for years.
Also, the tactics in making product differentiations without harming the qlaity and the tastes and
flavours of the products make Maliban biscuits(pvt) limited the unique biscuit production
compnayin Sri Lanka.
In addditon the tacties applying by the maliban company as depicted above figure 4, in the
activities such as inbound logistics, outbound logistics, marketing sales and services, the Maliban
biscuits has owned the prominence by engaging in research and development appropriately and
also applying the latest technologies appropriately.
Also, the understanding of the different market demands and the changes in the arket demands
accurately, on time was another competitive advantage of the Maliban company that adds values
to its business processes.
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References
Lakmini, H., 2016. Marketing - Maliban Sri Lanka. Colombo: Academia.
Maliban, n.d. Maliban. [Online]
Available at: https://www.malibangroup.com/about-us/#:~:text=To%20win%20the%20Hearts
%20and,returning%20optimum%20value%20to%20stakeholders.
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