Abstract

Marketing is an essential part of any business, whether big or small. It plays a significant role in

promoting the well-being of all businesses. Marketing is perhaps the most complicated and

thought-provoking function carried out by every business house. As an art or science, in today’s

complex world marketing is undergoing dramatic and exciting changes, and the field promises to

be just as dynamic in the years ahead. A marketing plan is an important tool for any company to

have, regardless of size. It lays out, in a formal fashion, the overall goal and accompanying

objectives, strategies and tactics designed to be implemented in the support of the goal. Having a

formal plan will ensure that everybody in the organization knows what is going to be done when

and why.

In this assignment I have gone through the business process from the production level to the

delivery level of the Maliban biscuit product to the consumer and illustrated how they have

adopted strategic marketing plan according to the following frame work.

Objective setting

Business definition

Market Definition

Segmentation- Division of market space

Competitor analysis

Market opportunity analysis

SWOT analysis

Target-market selection

Positioning of Brand

Marketing-mix

1. Introduction

A strategic marketing plan is an important tool for any company to have, regardless of size. It

lays out, in a formal fashion, the overall goal and accompanying objectives, strategies and tactics

designed to be implemented in the support of the goal. Having a formal plan will ensure that

everybody in the organization knows what is going to be done when and why. When we

discussed a strategic marketing plan of a business the common elements segmentation, targeting,

positioning and 4P’s are used. But the Professor Uditha Liyanage has studied in depth and

developed a ten path frame work to elaborate broadly the strategic marketing plan. According to

his frame work it is very easy to achieve and analyzed the business goal and the process.

In this assignment I have elaborated the strategic marketing plan of maliban biscuit business

commencement to the present development in accordance with Professor Uditha Liyanage’s

theory.

History & Market definition of Maliban

From a humble tea shop to one of Sri Lanka’s most recognized brands, Maliban has come a

long way in just over fifty years. As difficult as it may be to believe, the epitome of Sri

Lankan biscuits started off as a simple tea kiosk on First Cross Street in Colombo Fort. In

1935, opened the Maliban Hotel at No. 62 Maliban Street. He did not know at the time that

it was Sri Lankan history in the making. When the Maliban factory started at Rathmalana in

1963 the only competitor was Ceylon Biscuit Company and there were some “Hulan

Viskothu” production in rural areas. The biscuit suppliers limited in to suclevel and it was

privilege Maliban Biscuit demand to increase in rural and urban areas in all over the country.

Also according to increasing of demand from outside countries Maliban biscuit exportation

commence in the first time in Sri Lanka in 1963 Since then, its biscuits were exported mainly

to ethnic markets around the world. International marketing has gained momentum after the

company restructured its export department in 2003 @ 20% growth in exports followed.

Today, Maliban biscuits are directly exported to Canada, the US, the UK, Germany, Italy,

France, Switzerland, Australia, UAE, Qatar, Bahrain, Saudi Arabia, Kuwait, the Maldives,

Seychelles, India, Bangladesh and Ghana. It is now a truly global company with distribution

channels in Europe, North America, the Middle East and Asia. (www.superbrands.com)

However In a few years, the business was expanding rapidly and the company was switched on

to mechanized manufacturing, and first mass production facility was opened and factory was

moved to a more spacious location at Ratmalana where it reside to date.The story of Maliban is

not merely the tale of extraordinary entrepreneurship – it is also atestament that a person from

the humblest roots can achieve greatness through vision,discipline and commitment. It is from

such humble beginnings that the Maliban legend was born. Today, Maliban is a giant in the

biscuit manufacturing industry in Sri Lanka.

Vision

“To be the most successful and respected food Company in Sri Lanka”

Mission

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. 

Objective Setting

Setting the objectives and goals for selected market is the next step to be concern and the

Maliban’s main aim is to take care of consumers tast and health. Therefore Inspection and testing

are conducted on a regular basis. and take great care every step of the way - from choosing our

raw material to production and packaging - to maintain quality standards. Also Maliban strictly

adhered to regulations made by the Minister of Healthcare Nutrition under the Food Act No 26

of 1980 and consumer affairs authority act and other relevant statuary and regulatory

requirements.

Business Definition

A business (also known as enterprise or firm) is an organization engaged in the trade of goods,

services, or both to consumers. Businesses are predominant in capitalist economies, where most

of them are privately owned and administered to earn profit to increase the wealth of their

owners. Businesses may also be not-for-profit or state-owned. A business owned by multiple

individuals may be referred to as a company, although that term also has a more precise meaning.

Maliban is a huge company which produces various types of products to local and foreign.

However the maliban’s extensive product range includes unsweetened Health Crackers; semi-

sweet biscuits such as Gold Marie, Nice and Gingernuts; sweet cream biscuits such as Lemon

Puff; chocolate/custard/orange cream biscuits; wafers; a savoury range – Krisco, Cheesebits and

Chickbits; and Potato Crackers. Maliban only uses vegetable oil in its production process. As a

result, its products are Halal certified. Maliban Biscuits is a product as a secondary commodity in

the market-place and basically now close upon 50% in terms of volume. Maliban Biscuits are

holding as very strong position in the biscuits category in Sri Lanka.

Market Definition

A market is one of many varieties of systems, institutions, procedures, social relations and

infrastructures whereby parties engage in exchange. While parties may exchange goods and

services by barter, most markets rely on sellers offering their goods or services (including labor)

in exchange for money from buyers.

More than 38 companies compete for a market of 60,000 metric tons in Sri Lanka. However,

Maliban – together with its main competitor – accounts for nearly 70% of the biscuit market –

one that has been growing at a steady pace over the years. Maliban is one of Sri Lanka’s premier

biscuit manufacturers, with a rich history of 50 years. What began as a simple tea-making

operation has grown into a massive enterprise today, with a turnover of Rs. 5 billion. And a state-

of-the-art production facility on a nine-hectare site at Ratmalana makes Maliban one of the

largest biscuit-making units in South Asia.

The company provides direct employment to 1,500 people and takes pride for having withstood

the inexorable force of globalization – a matter of national pride. Maliban is a truly Sri Lankan

company with an inspiring vision that positions itself as a strong player in the global market.

Segmentation - Division Market Space

Market Segmentation means determining distinct groups of buyers (segments) with different

needs. The market has been segmented according to the consumer characteristics largely by

Maliban and under that the company has mainly concerned about the Demographic and

Geographic characteristics of consumers.

Demographic – above 3 year old to older ones Household income (more

than Rs 7,500/- per month)

Geographic - Island-wide coverage through already established strong distribution and foreign export network

Psychographic - Social Class : The upper middle, middle and lower classes of the market

Behavioral - Regular, special occasion, Attitudes toward the brand.

Effectiveness of Market Segmentation

Measurable : The total size of the segment fallen above the age category is around 70%

of the total population of Sri Lanka which comes to about more than 02 million number of

people.

Substantial: Approximately 340,000 babies are born each year in Sri Lanka and the total

value of the Maliban market is more than Rs 496 Million. This it gives the evidence of its

profitability and substantilitve.

Accessible: The Company is very well known for it’s strong distribution network and

therefore the product reach is ever improving

Differentiable: The applicable segmentation is clearly distinguishable against the

marketing mix elements of the competitors

Actionable: The activities like sampling, product introductions and developments have

been successfully carried out by the company

Maliban biscuits reach every corner of the island, through an extensive distribution network. Its

extensive product range – comprising Crackers, Savoury, Sweet and Assortments – caters to a

wide variety of consumer segments; from the health conscious to regular biscuit lovers, and from

kids to senior citizens.

Competitor Analysis

There are 38 biscuit manufacturers including Maliban in Sri Lanka. The Maliban’s strategy is to

increase the customer’s choice and be honest with consumers and offer them high quality

products at reasonable prices to grow in the long term.

The company captured well over 70% of the biscuit market and maintained this market share

through the 1970s and 80s as the household name for biscuits. Due to its sheer size Maliban

monopolized all segments. In Sri Lanka, Cream Cracker, Lemon Puff, Ginger Nuts, Nice, Krisco

and Cheese Bits all became synonymous with the brand name Maliban. The company established

a reputation for quality and for strong production capability. Even Ceylon Biscuits gave over a

third of its nutritional biscuit production contract to Maliban, at the request of the Ministry of

Education. The company loomed over its competitors as a giant.

Market Opportunity Analysis

Maliban became the first Sri Lankan company to export locally manufactured biscuits to the

world as far back as in 1963. Since then, its biscuits were exported mainly to ethnic markets

round the world. International marketing has gained momentum after the company restructured

its export department in 2003 – a 20% growth in exports followed. Today, Maliban biscuits are

directly exported to Canada, the US, the UK, Germany, Italy, France, Switzerland, Australia,

UAE, Qatar, Bahrain, Saudi Arabia, Kuwait, the Maldives, Seychelles, India, Bangladesh and

Ghana. It is now a truly global company with distribution channels in Europe, North America,

the Middle East and Asia.

Maliban is focusing their market, people from the small age to older in entire Sri Lanka and

exports to more than 20 countries across five continents. Maliban exports crackers, sweet

biscuits, cream biscuits, savory biscuits, wafer biscuits and cookies under the Maliban brand

name and also produces many types of biscuits for international customers as private labels. The

research & product development division has capabilities to customize recipes to match any

customer requirement. With a capacity to produce nearly 3000 tons of biscuits monthly the

company has the ability to cater to requirements of discerning international customers.

SWOT Analysis

A quick way to uncover strengths / weaknesses and quick way to determine opportunities and

threats is to think about external environment

Strengths

a. Able to divide tasks among family members so each can specialize and be more

effective in a particular area.

b. Consistent, low calf mortality rates.

c. Good attitude toward new technology.

d. Good employee retention.

e. Good record-keeping system.

f. High-tech feeding system.

g. Low debt.

h. New facilities.

i. Next generations want to continue the operation.

j. Good will for the brand

k. Available skillful managerial staff and workers

l. Local and Foreign Awards receipts in various aspects

m. Guinness record of making world biggest Lemon puff biscuit

Opportunities

a. Demand from out side countries

b. Good infrastructure

c. Lots of support groups within the industry.

d. Opportunity to bring to light country name in other countries

Weaknesses

a. Difficulty managing labor.

b. High debt load.

Threats

a. Employees nearing for retirement.

b. Shortage of available labor.

c. Vulnerability of biscuit price.

d. Competition with other biscuit companies

Target-Market Selection

Market Targeting means evaluating and selecting which target segments to enter.

a. It is understand that the market segmented under demographic, specially the entire

population and rapidly growing in the Sri Lankan market

b. Also the company has set it’s marketing mix element strategies to suit the middle

and lower middle classes, which represents about 90% of the total population

c. This implies that the company has taken correct decisions, when selecting the market

segments

d.20% growth in exports achieved and Captured the market of Europe, North America,

the Middle East and Asia.

Target Group Habits / Attitudes

Kids, Teenagers, Youth, Elders Concerned of consumers tasty

Prefers easy access to purchase product

Trust reputed brands

Prefers attractive user friendly Packaging

Discuss brands used with others

Positioning Of Brand

 Positioning is the act of designing the Company’s offering and image to occupy a distinctive

place in the minds of the target market. In the case of Maliban, they are positioning as a trusted

brand / product by using the longstanding goodwill of the company. In future they are trying to

become as a number one in the consumers’ mind by further building the trust and maintain the

high quality of the product.

Maliban’s new corporate and brand-positioning campaign, ‘Inspired By Goodness’, which was

aimed at gives value back to the community ,rather than ride on claims of corporate

achievements. This media campaign is aimed at educating the younger generation on cultural

practices that are timeless in value and provide a strong foundation for family life, in today’s fast

paced high-tech society. Through this campaign, Maliban has gained a greater brand equity and

is renowned for being a truly Sri Lankan company that upholds the nation’s heritage, culture and

identity. Apart from the corporate campaign, individual brands have also been promoted in

recent years.

Maliban Gold Marie is the flagship brand, with a 50-year history. It was reformulated with added

nutrition and promoted with a new brand idea, ‘Another generation of childrengrowing up with

Maliban Gold Marie’. Maliban Lemon Puff was relaunched in November 2003 with a new

biscuit formulation and campaign based on the advertising idea, ‘Dreamy Creamy Lemony

Biscuit’. Maliban Chocolate Cream Biscuits, the market leader in its category, was supported

with a new campaign based on the theme, ‘Kids will do anything for Maliban Chocolate

Biscuits’.

Maliban Cream Crackers, with a new line extension, enhanced packaging and a new brand

identity of being an ‘Anytime Square Meal’, grew by an unprecedented 38% in its first year, post

its re launch. It was also nominated as a Turnaround Brand of the Year by the Sri Lanka Institute

of Marketing Brand Excellence Committee. Maliban Nice was repositioned as a biscuit for

young adults, via ‘Making your life nicer with Maliban Nice’. Maliban Gingernuts is targeted at

a younger audience, with an advertising campaign based on‘100% Natural Ginger Kick’.

Maliban Wafers were introduced in September 2004 with a newcampaign for kids based on

‘Creamy Crunchy Wafer’. The brand rose to number one position within six months of its

launch. And Maliban Potato Crackers were introduced to the marketin 2005, primarily targeting

older kids and teenagers with a new campaign based on ‘A Taste for New Generation’.

Maliban recently concluded a 5S productivity programme, conducted among several schools

across the island. By sponsoring this programme, Maliban strove not only to produce best quality

biscuits, but also help produce disciplined and obedient students who will one day be the most

valuable and productive citizens of Sri Lanka

Marketing-Mix

Marketing Mix is a major concept in modern marketing and involves practically

everything that a marketing company can use to influence consumer  p e r c e p t i o n

f a v o r a b l y t o w a r d s i t s p r o d u c t o r s e r v i c e s s o t h a t c o n s u m e r a n d

organizational objectives are attained, i.e. Marketing mix is a model of crafting

and implementing marketing strategy.

Product

Price

Place

Promotion

Product

The first market mix element is Product. A product is anything that can be offered to a market

for attention, acquisition, use or consumption that might satisfy a need or want. Product decision

normally base on brand name, Functionality, Styling, Quality, Safety, Packaging, Repairs and

Support, Warranty, accessories and Services. These product attributes can be manipulated

depending on what the target market wants. Also, customers always look for Quality and tasty.

Maliban has a variety of biscuit products can be categorized in the following major product

categories maliban is a brand name ssynonymous with biscuits in sri lanka. Maliban is positioned as a good quality

biscuit, with a traditional sri lankan image and identity.

Gold Marie Sorties Biscuit

Chocolate Cream Snackers- Cheese & Chillie

Custard Cream Snackers – Masala

Orange Cream Krisco

Lemon Puff Chick Bits

Cream Cracker Cheese Bits

Bran Cracker Krisco Bites

Fun Cracker Rocky Coconut Cookies

Classic Cracker Tiny Cookies

Vegy Cracker Nice

Biscuit Assortment Glucomalt

Gift Selection Gems

Tea Time Assortment Ginger

Assorted Cookies Milk Shortcake

Price Pricing decisions are almost always made in consultation with marketing

management. Price is the only marketing mix variable that can be altered quickly. Price

variables such as dealer price, retail price, discounts, allowances, credit terms etc.

influence the development of marketing strategy, as price is a major  factor that

influences the assessment of value obtained by customers.

Price mix of Maliban biscuit

Adopted a Market Penetration strategy i.e. low price along with the capturing of a large market

Providing a good quality product - the value pricing method.

The value-for-money positioning helps generate large sales volumes for the products

Price should be available in Re 30 to Rs 35 priced packets

Profit margin for distributors is 5% and for retailers is 10-12%

Adopt a variation in its sales due to increase in price marginally

Maliban adopt certain value pricing; fairly low price for high quality product to increase overall sales volumes.

Place  Decisions with respect to distribution channel focus on making the product a v a i l a b l e i n

a d e q u a t e q u a n t i t i e s a t p l a c e s w h e r e c u s t o m e r s a r e n o r m a l l y

expected to shop for them to satisfy their needs. Depending on the nature of the product,

marketing management decides to put into place an exclusive, selective or intensive network

of distribution, while selecting the appropriate dealers.

Maliban Head Office and the factory situated at Ratmalana. All distributions locally and the

exports are handle their.

Promotion

The various promotion channels should be used by Maliban to effectively communicate the product. A clear

understanding of the customer value helps decide whether the cost of promotion is worth spending. There are

three main objectives of advertising for Maliban are to make people aware of an item, feel positive about it

and remember it. The right message has to be communicated to the right audience through the right media. Maliban

does its promotion through television, hoardings and bus shelters for their regular products. They

use print ads and the television programmers’ are also an important marketing medium for promotion.

Some of the most famous marketing campaigns of Maliban were:

Making your life nicer with Maliban Nice

Kids will do anything for Maliban Chocolate Biscuits

100% Natural Ginger Kick

  Discussion on Current Market Mix

In my opinion, I think the current marketing mix which Maliban has i s s a t i s f a c t o r y t o

c u s t o m e r n e e d s . A s i t c a n b e C l e a r y s e e n t h a t M a l i b a n a s a

c o m p a n y h a s e x p a n d e d i t s p r o d u c t s n o t o n l y b i s c u i t e v e n u p t o m i l k

p a c k e t s .

Providing a wide range of products with standard quality, Maliban has far influenced

most of its customer’s perception favorably towards its p r o d u c t s . F r o m t i m e

t h e c o m p a n y w a s c r e a t e d t i l l n o w , t h e q u a l i t y o f t h e p r o d u c t s t h a t

M a l i b a n o f f e r s i s i m p r o v i n g e a c h y e a r .

Conclusion

The Maliban’s marketing Strategy concern they follow Marketing plans and strategies as per the

theory, according to that marketing mix - 4 P's. But Maliban practicing strategies are purely

dependent on common sense and business experience. Instead of the traditional 4 P's what the

Marketing Guru's have described, they adopt a 5 P's mix which is not in the 'book' but which

they have developed as in present.

They are 01) Practical sense, 02) Practical leadership; 03) Psychology of the consumer and the

retailer and 04) Planning techniques 05)Placing techniques for above the line and below the line

advertising.

Instead of the book - work, Maliban used their wealth of experience to develop consumer

friendly strategies to give birth to a new orientation called "Brand selling orientation". In this

orientation the core strategy is to move the brand closer to the end user rather than the moving a

product.

Maliban is doing continues developments and research to position their market target in

marketing field with other competitors. For this reason, it places great emphasis on product

development. Constant experimentation, production trials, trial sales and so on are carried out to

improve its products and develop new products to cater to the changing and varying needs of all

sectors of the market. Recent developments in this sphere are as follows.

Potato Crackers – Sri Lanka’s only potato biscuit in the market, primarily targeted at kids

and teenagers.

Strawberry Gem – Another first, with strawberry-tasting centre, appeals to children’s

taste buds.

Water Crackers – A wellness cracker that is popular among health and figure-conscious

consumers.

Honey & Cinnamon – An authentic cinnamon biscuit, specially made for export.

Multi-grain Crackers – A nutritious cracker made of wheat, rice, oats and barley.

The company has gained local and international acclaim by winning world recognized quality

awards, adhering to its founder's concept of "quality is our religion, " Also Maliban was a

pioneer in introducing quality assurance concept in Sri Lanka. Followings are the things people

do not know about Maliban.

a. Maliban was the first company to export, biscuits from Sri Lanka.

b. Honoured as the second Most Respected Sri Lankan Entity in the Food & Beverages Sector,by LMD in 2005.

c. Maliban bakes two billion biscuits each year and at least 80% of Sri Lankans have tasted its products.

d. Some three million Gold Marie biscuits are consumed every day.

e. Maliban was the first company to introduce biscuits with vitamins.

f. It is the first food-manufacturing company to receive a National Quality Award.

References & Bibliography