Assignment 1

Contents
1 Executive summary.............................................................................................................1

2 CBL – an introduction........................................................................................................1

3 Identified critical aspect of the external environment........................................................2

4 Choosing a corporate strategy.............................................................................................2

4.1 Ansoff growth strategy................................................................................................2

4.2 Selected strategy and justification...............................................................................6

4.3 Strategies for global market entry...............................................................................7

4.3.1 Market entry strategies........................................................................................7

4.3.2 Chosen strategy and justification.........................................................................9

5 Conclusion........................................................................................................................11

6 References.........................................................................................................................11

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1 Executive summary
Ceylon Biscuits Limited or CBL is a market leader of biscuits in Sri Lanka. They have
identified a critical aspect of the external environment that A considerable number of people
in Sri Lanka and global are seeking for sugar-free products, healthy products, and organic
products. To make use of this trend, CBL has decided to promote its existing healthy products
through market penetration strategy. Further CBL has planned to introduce those products to
the Asian market initially.

2 CBL – an introduction
Ceylon Biscuits Limited is a leading biscuits manufacturer in Sri Lanka. The company was
able to attract most Sri Lankan customers and even foreign customers. The products of the
company are;

 Biscuits
 Chocolate
 Cakes
 Soya Based Products
 Cereal Products
 Herbal Porridge
 Soups
 Organic Products
 All Natural
 Extruded Snacks

Since the assignment focus on biscuit products on Ceylon Biscuit Limited, the list of biscuits
may be important for further analysis

 Sweets
o MUNCHEE RINGO
o MUNCHEE HAWAIIAN COOKIES
o MUNCHEE MILK SHORTCAKE
o MUNCHEE MILK SHORTIES
o MUNCHEE NICE
o MUNCHEE GINGER

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o MUNCHEE GEM
 Crackers
o MUNCHEE KOME RICE CRACKERS
o MUNCHEE SUN CRACKER
o MUNCHEE SUPER CREAM CRACKER
o MUNCHEE KURAKKAN CRACKER
o MUNCHEE SUPER CREAM CRACKER HAND
o MUNCHEE CHEESE CRACKER
o MUNCHEE BRAN CRACKER
 Puffs
o MUNCHEE LEMON PUFF
o MUNCHEE CHOCOLATE PUFF
o MUNCHEE APPLE PUFF
 Marie
o MUNCHEE LITE MARIE MILKY
o MUNCHEE TIKIRI MARIE
o MUNCHEE CHOCOLATE MARIE
o MUNCHEE LITE MARIE
 Herbal
o MUNCHEE KARAPINCHA BISCUITS
o MUNCHEE KOTHALAHIMBUTU BISCUITS
 Other
o MUNCHEE BABY RUSKS
o MUNCHEE DIGESTIVE
o MUNCHEE SAMAPOSHA BISCUIT
o MUNCHEE GLUCO FIT

Source: Official website of CBL

According to the product range analysis, CBL does not only focus on the taste of the biscuit
but also the nutritious, healthy and traditional values of Sri Lankans (highlighted in Yellow
Colour). The identified external factor relates to health and wellbeing of Sri Lankans and it
has been discussed in detail in the next sections.

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3 Identified critical aspect of the external environment

A considerable number of people in Sri Lanka and global are seeking for sugar-free
products, healthy products, and organic products.

For the purpose of this assignment, following healthy products of CBL were selected.

 MUNCHEE KURAKKAN CRACKER

 MUNCHEE BRAN CRACKER
 MUNCHEE KARAPINCHA BISCUITS
 MUNCHEE KOTHALAHIMBUTU BISCUITS
 MUNCHEE SAMAPOSHA BISCUIT

4 Choosing a corporate strategy

4.1 Ansoff growth strategy

Ansoff’s Growth Vector matrix helps an organization to understand what kind of marketing
strategy is fitting to achieve future growth. There are different kind of risk and opportunities
are attached to these strategies. Ansoff has identified four key approaches to achieve growth
as follows (Yin, 2016).

1. Market Penetration Strategy

In this strategy, existing products at existing markets occurs. Therefore, this strategy has not
consisted of high risk. Because of new product innovations do not occur. Growth is achieved
by selling existing products. In this strategy, product improvements and updating existing
products are launching.

When implementing this strategy, the organization is done with the marketing mix.

 Product- With reformulating products can make more products in a more

efficient manner.

 Price- Selling products at a reasonable value to the consumers or retailers.

 Place- Finding new customers in new outlets to sell existing products.

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 Promotion- Using more effective methods to reach target customers

satisfaction through products and services.

(Basu, 2014; Moussetis, 2011)

Considering the CBL,

The company can conduct a marketing campaign to increase sales in the existing market by
attracting new customers and motivate existing customers to buy more. This can be
conducted through a road promotion, promotion inside a retail store (Ex: Keels Super) and
online (through social media).

Comparative information

Without considering seasonal greetings and low prices NIVEA lip care brand has sought
market trends and found how the company should match with existing core competencies in
skin care.

(Basu, 2014; Moussetis, 2011)

2. Product Development strategy

This strategy has consisted of introducing new products and services by developing or
acquiring from another company. This strategy is suited for organizations which have a
strong market share and intend to diversify their products range. New product development
should be correlated with strong research and development to be a success in this strategy. If
not, the organization must be a failure. And that failure can be harmful to an organization’s
reputation. Therefore, extensive and steering testing should be implemented to attain growth
in successfully (Gurcaylilar-Yenidogan & Aksoy, 2018; Moussetis, 2011).

Considering the CBL,

The company can develop brand cracker by adding more notorious factors to it. Further, CBL
can conduct market research to obtain the feedback of customers on the shape of the biscuit,
quality, and several other things.

Comparative information

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Beiersdorf has invested a broad range of existing products and new products essentials.
NIVEA brand has become the master one that drives the success of Beiersdorf company.
NIVEA has coordinated with a vast of product items. NIVEA is the No 1 skincare product in
Europe. NIVEA has innovated new product items to increase the market position in the
market.

3. Market Development

New markets and new areas that have not filled by any competitor is seeking under this
strategy. That means this strategy is focusing on new customer audience for selling existing
products and services. This strategy is most suitable when company deliberates products only
want to be innovated with minor modifications and not asking major ones with according to
customer needs’ changes. And, this strategy is most suited that ask similar life cycles by
different markets (Gurcaylilar-Yenidogan & Aksoy, 2018; Moussetis, 2011).

This strategy is implemented by;

 Selling existing products in different geographical areas which are new

countries or region.

 Using different selling channels.

 Different demographic groups that are different by age, gender and race.

This strategy involvement is a new experience for the organization, and it is a

risk. But if an organization possesses a strong brand, it is advisable to seek out
market developments.

Considering the CBL,

The company can introduce Kothalahimbutu and Karapincha biscuits to foreign countries.
First, extended research should be done to determine that what are the most suitable countries
for introducing the products and then CBL can send the products to the foreign market
through exporting.

Comparative information

Ex: Adidas, Nike, Reebok have entered into new international markets with their existing
products to achieve the companies’ growth with expanding their brands into new markets.
This strategy is more essential to growth, and it should be done after identifying the current

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market. The company should identify new market locations that the company has not filled is
done under this strategy. For a small organization, this strategy is most suitable because they
have acquired only a small position from the market.

4. Diversification

This is the riskiest strategy that can be implemented by any organization. Because of new
products implementations and new markets are investigating in this strategy. To improve the
core of the existing business, diversification strategy is very significant. Diversification
strategy mostly arises from acquisition or merger. Diversification mainly consists of two parts
which are related un unrelated. Unrelated diversification is riskier than related one. This
strategy is most suitable when the company thinks new markets may be highly attractive to
new customers (Gurcaylilar-Yenidogan & Aksoy, 2018; Moussetis, 2011).

Considering the CBL,

CBL can research to determine the health needs of Indian Customers. For example, they may
like to consume herbal products more. Then CBL develops a new biscuit containing the
herbal factors required by Indian Customers.

Comparative information

Beiersdorf company is one that always innovates new products and markets. NIVEA is the
strongest brand which is inherited by Beiersdorf has developed its products range for Men as
a new product and with focusing on a new market.

Samsung company is firstly initiated as a trading company and after that, they expand
business activities into insurance, retail and security industries. Firstly, Samsung has
introduced a black and white television and later they entered the telecom industry and
introduces telephones, fax machines, and mobile phones. Therefore, now Samsung has
acquired a different set of businesses which are cameras, watchmaking, apparel, music
services, cloud computing, and home automation, etc.

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(Yin, 2016)

4.2 Selected strategy and justification

 Selected – market penetration

To enhance the sales and market share of the following products in the Sri Lankan
market. In this case, existing products have been listed below and the existing market
in Sri Lanka. The biscuit customers of Sri Lanka hold middle-income level.

o MUNCHEE KURAKKAN CRACKER

o MUNCHEE BRAN CRACKER
o MUNCHEE KARAPINCHA BISCUITS
o MUNCHEE KOTHALAHIMBUTU BISCUITS
o MUNCHEE SAMAPOSHA BISCUIT

To enhance the sales and market share of above products, it is recommended to

promote the products through mass media and social media. Further road promotions
and awareness programs can be conducted. Finally, CBL can join with Keels Super
and Cargills for promotions in the retail store

 Justification

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o Requirements of society – it was determined that there is a high demand for

healthy and herbal products among Sri Lankans and global consumers.
o Researches and findings – Researchers have identified the following reasons
for the high demand for healthy products
 Healthy and safe
 Building strong future generations
 It does not negatively affect the environment
 Keeps people away from illnesses
 Today, healthy foods are more affordable
o Competitive advantage – by fulfilling the needs gap before competitors, CBL
will be able to build their brand as a healthy food producer. Further,
considerable market share and profits can be gained.

4.3 Strategies for global market entry

4.3.1 Market entry strategies

A company can enter into foreign markets by using different strategies. One market entry
strategy is not fit for all the international markets. One market strategy may fit a company
ideally and other companies if not. Therefore, the idea market entry strategy selection is very
significant to be a success. Tariff rates, the degree of adaptation of the company’s product
required, marketing and transportation costs are the different factors that affect to choose
market entry strategy.

1. Direct exporting

This is the most common strategy that most of the organizations have chosen. Selling
products into the chosen market indirectly. Normally this is done by using agents and
distributors on behalf of the company’s name. Therefore, to enter foreign market selecting the
best agents and distributors is very essential because they are the presenters of the company’s
name and exporting is depending on their ability. Contacts with the foreign market
environment are very significant to be a success by the agents. This strategy is simple than
other market entry strategies. This strategy does not require much capital investment cost to
enter the foreign market (Al-Kaabi, Demirbag, & Tatoglu, 2010; Χατζηδημητρίου et al.,
2002).

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2. Licensing

Through this marketing strategy, the company who has the license of a product or a service
give the right to use that product or service to another firm. This strategy is very useful if the
company that obtained the license have a larger market share in the market that the owner of
the licensing company wants to enter. Because of by using the name of the company through
licensing can improve the brand’s name of related product and service but it is not so easy.
On the other hand, this strategy involvement has a risk own because of the activities of the
party who get the license may damage the brand of that product or service. The company that
the license owner should get all the legal requirements about the sale of the license. In this
strategy has a risk also (Al-Kaabi et al., 2010; Χατζηδημητρίου et al., 2002).

3. Franchising

This strategy is most useful when a business model that can be easily transferred to another
country. The party who transfers the business model should have a unique or brand that is
utilizing by international markets also. And this brand or business model should be having an
ability to face future competition (Al-Kaabi et al., 2010; Χατζηδημητρίου et al., 2002).

4. Joint ventures

Two companies are working together at an agreement in a market by in geographically or by

a product. Through joint ventures, it creates an additional third-party managed company to
connect two companies. Normally two companies are share profits equally (Calvelli &
Cannavale, 2019).

5. Greenfield investments

This market entry strategy is a very expensive one because the company must buy the land,
build the facility and operate the business on an ongoing basis in a foreign market. And these
investments are having a high risk if the new investment is failing or not. Sometimes to
acquire the foreign markets knowledge, techniques and to acquire skilled labour, the
government may ready to give essential transportation cost, initial costs or other facilities to
greenfield investments and seek out about government regulations complications (Al-Kaabi
et al., 2010; Calvelli & Cannavale, 2019).

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4.3.2 Chosen strategy and justification

 Selected – Exporting the following products to Asian Countries; India, Thailand,
China, Maldives, and Bangladesh. Most of them are made with the traditional taste of
Sri Lanka. Thus, it is not recommended to enter European and USA countries in the
first step. Since the cultural distance of Sri Lanka and Asian countries is low, the first
step should be entering the Asian Countries.
o MUNCHEE KURAKKAN CRACKER
o MUNCHEE BRAN CRACKER
o MUNCHEE KARAPINCHA BISCUITS
o MUNCHEE KOTHALAHIMBUTU BISCUITS
o MUNCHEE SAMAPOSHA BISCUIT
 Justification
o Exporting will occur the least cost to the CBL. Further, the risk of exporting is
low compared to foreign direct investment and partnering.
o The company already exports selected products for over 40 countries in the
world, according to the discussion with the Marketing Executive of CBL

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Source: https://www.pressreader.com/

o CBL posses a dedicated factory for exports and they already have an
international customer base. Further, they have the knowledge and experience
regarding exporting which are assured by awards they have a win.

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Source: http://www.muncheelk.com/contract-manufacturing

5 Conclusion
An organization should pay attention to determining the changes in the external environment
for identifying market opportunities and threats. Determining the market opportunities before
competitors will lead the company for success. In this assignment, CBL has determined the
customer’s interest in healthy products and have planned to penetrate the Sri Lankan and
foreign market. Further, organizations should assure that they are having the required
resources and capabilities before implementing a strategy.

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6 References
Al-Kaabi, M., Demirbag, M., & Tatoglu, E. (2010). International Market Entry Strategies of
Emerging Market MNEs: A Case Study of Qatar Telecom. Journal of East-West
Business, 16, 146–170. https://doi.org/10.1080/10669868.2010.486104

Basu, S. (2014). Product market strategies and innovation types: Finding the fit! Strategic
Direction, 30. https://doi.org/10.1108/SD-09-2013-0064

Calvelli, A., & Cannavale, C. (2019). Market Entry Strategy: International Strategy, Trends
and Challenges (pp. 59–110). https://doi.org/10.1007/978-3-319-91551-7_3

Gurcaylilar-Yenidogan, T., & Aksoy, S. (2018). APPLYING ANSOFF’S GROWTH

STRATEGY MATRIX TO INNOVATION CLASSIFICATION. International Journal of
Innovation Management, 22, 1850039. https://doi.org/10.1142/S1363919618500391

Moussetis, R. (2011). Ansoff revisited : How Ansoff interfaces with both the planning and
learning schools of thought in strategy. Journal of Management History, 17, 102–125.
https://doi.org/10.1108/17511341111099556

Yin, N. (2016). Application of AHP-Ansoff Matrix Analysis in Business Diversification: The

case of Evergrande Group. MATEC Web of Conferences, 44, 1006.
https://doi.org/10.1051/matecconf/20164401006

Χατζηδημητρίου, Γ., Hajidimitriou, Y., Γεωργίου, Α., Georgiou, A., Ποργιανός, Δ., &
Porgianos, D. (2002). The Selection of Foreign Market Entry Strategies for European
Firms.

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