Cost Of Marketing Orientation Marketing Essay

The intent of this study is to happen selling schemes to establish “ Srikas ” at Ceylon Biscuit Limited. The undertaking one revels selling procedure and benefits and cost of marketing orientation. The two conveying out how macro and micro environment influence the Srikas and cleavage of Srikas. The undertaking three express extended selling mix of the Srikas. Finally task four explains how ansoff ‘s matrix chart is applied to Srikas and how international selling differs from domestic selling.


Company background

Ceylon Biscuit Limited ( CBL ) is one of the fastest growth and largest pudding stones in Srilanka. Currently it manufactures and markets many taking trade names in biscuits, confectionery, cereal, organic fruit merchandises and many other classs globally. CBL Recognized as a engineering and invention leads manufacturer.

New merchandise

Ceylon Biscuit Limited is traveling to establish a new assortment of french friess “ Srikas ” . It is conveying a new spirit which is non obtained in Srilanka. In the present universe the immature age group are more susceptible for developing diabetes Due to their life styles and nutrient wonts in order to avoid these wellness jobs and fulfill the consumers to hold healthy nutrient the company present the ‘Srikas ‘ . The ingredients added to do these is from Srilanka. It is full of protein vitamins and minerals to assist maintain childs active and healthy.

LO 2 ) Concepts of Segmentation, Targeting and Positioning


Micro Environment


Srikas face a broad scope of competition. The present rivals of Srikas are Lays, Pringles, Pop Pop and Tip Tip.

Selling mediators

Marketing mediators help the company to advance, sell and administer Srikas.


The chief consumers of Srikas are kids.


The Srikas providers are mainly husbandmans and honey aggregators. They give high quality ingredients to do better quality merchandise.


The populace is one who has the possible involvement or impact on company ‘s ability to accomplish its aims. In publicizing the company must non misapply anything against the society so merely CBL maintain the trade name name. CBL has erected bud holds in order to derive good will of populace.

Macro environment

The company and all of other sector operate in a larger macro environment of forces that shape chances and pose menaces to the company. The factors are outside the control of the concern.

Plague Analysis

Pest analysis is really of import that company considers its environment get downing the selling procedure.

Political Environment

This refers to the authorities policies that affect concern such as authorities ordinance, denationalization policy etcaˆ¦

It is of import for CBL to hold good relationship with the authorities, and since the authorities controls statute laws such as importation and administering restriction and merchandise safety and etc. The company is in favor of the political environment under “ Mahinda Sinthana ” obtained machineries to upgrade Srikas.

Economic Environment

This includes involvement rates, revenue enhancement alterations, economic growing, rising prices and exchange rates. High interest- It affects the concern because borrowing cost addition.

Inflation – It may arouse higher pay demands from employees and raise cost.

Tax – By paying National Development Tax the production cost will increase and monetary value war between rivals.

Social Environment

It ‘s really of import to be socially responsible because it fundamentally creates an image for the company and its trade names. At CBL takes this point as a chief consideration to turn out the clients with merchandises with the confidence of quality. Which besides comprise of demographic cultural facets of the macro environment, these factors affect the consumer demands and these size of possible markets. The cardinal factors are following:

Health consciousness

Population growing rate

Age distribution ( kids )

Emphasis on safety

Career attitudes

Technology Environment

CBL has adopted technological alterations in Srikas including merchandise design and packaging. Consumer can order online and pay by recognition card when ordered on as a majority. Bing progress in engineering is really of import because it fundamentally help us overcome rivals, saves production cost, money, clip and etc. Hence by following the new engineerings will supply and overall company advantage.

SWOT Analysis

S- Strength

CBL has high Experience

New spirit – This spirit is non available in Sri Lanka and universe broad

Knows how to pull off resources without wastage

High quality merchandise at an low-cost monetary value

Super- shop and mercantile establishments located all over the island.

Well trained work force – CBL engaged workers and name them after professional preparation

W – Failing

Communication / linguistic communication issues in supplying labels to the state ( CBL print on package in English which is hard to be read Singales and Tamils )

As it is new merchandise so high degree of borrowing cost and low rates of return

Undifferentiated merchandises ( in relation to the rivals )

O – Opportunities

Changing consumer gustatory sensation

Technological Advance – CBL utilizing the machineries produce more end product in a short clip

Less income revenue enhancement is paid because it is a new merchandise

Market tendency is favorable – ( most purchasers are affected by the fast nutrient so Srikas can accomplish the market because it is 100 % natural )

There is no exact replacement for the merchandise available in the market

T- Menaces

Srikas face batch of competition in the market

High cost of production ( because it is freshly launched merchandise hence the gap cost is high )

Inflation in the economic system

Rivals have superior entree to channels of distribution

Consumer shift costs are high

Porter ‘s five forces

Menace of new entrants

Merchandise distinction

Economic of graduated table exist

Capital demands

Menace of replacements

Brand trueness clients

High shift cost for clients

Power of providers

Raw stuff cost constitute more than 50 % of the sum disbursals

Rivalry among Existing house

High competition

Low profitability- ( as it is introduction degree )

Intense due to the entry of foreign house

Dickering power of clients

Increased pick – ( high bargaining power )

Combined purchase power of store, canteen and supermarkets

2.2 ) Market cleavage

A market is truly a mass, homogenous group of clients each desiring an indistinguishable merchandise. Market cleavage is a technique based on the acknowledgment that every market consists of possible purchasers with different demands and different purchasing behaviour. These different client attitudes may be grouped into sections and a different selling attack may be taken by an organisation for each market section.

The degree of marketing cleavage for the Srikas would be the mass selling which is the same merchandise in the same manner to all the clients. And the cleavage variables are as follows:


Srikas would be marketed and distributed all island since it ‘s in the debut degree, after betterment harmonizing to the growing rate the merchandise will be distributed to international market.


Target market is made harmonizing to the forms in which the people in the market unrecorded and pass their clip and money. Buyers in a market will differ in their wants, resources, locations, purchasing attitudes purchasing patterns and any of these variables can be used to split a market.


Males and females

Srikas marks chiefly for kids

Suitable for all race and nationalities


Everybody can afford to purchase it because it is 23/= so no demand to see income degree.

2.3 ) Target Market Strategy

Single section scheme

Since Srikas is on the debut degree. By concentrated on the individual scheme for it is served with one selling mix could salvage the cost of selling. Hence the Srikas reaches the adulthood phase the mark market scheme could be changed.

Selective specialisation scheme

In this scheme, several selling mixes are implemented in different section. The Srikas is marketed otherwise in different sections, which is why this mark selling scheme is besides known as differentiated scheme.

Merchandise specialisation

Srikas manufactured is customized and so marketed, so as to provide to different market sections.

Market specialisation scheme

In this signifier of mark selling CBL foremost finalizes the market section it wishes to provide to and so fabricate a assortment of merchandises entirely for this section. Srikas’a mark market is kids.

Full market coverage scheme

Srikas usage this scheme when it would be function the mass market. This means a individual selling mix combination can be used or even several selling mixes are used to provide to section made in this full market.

2.4 ) Buyer behaviour affects selling activities


Everybody can eat Srikas but the company ‘s mark is for kids. But now Srikas is traveling to increase the sale adolescents are different assortments.


Most of the people believe the french friess are non healthy nutrient but Srikas decidedly change the tendency of purchasers. Due to its natural ingredients added. To the outlook of people Srikas is less than other french friess.

Social Factor

A client ‘s purchasing behaviour is besides influenced by societal factors, such as the group to which the clients belongs and societal position. In a group, several persons may interact to act upon the purchase determination. The typical functions in such a group determination can be summarized as follows ;

Initiator- the Srikas consumers are kids

Influencer – a individual whose position or advices influence the purchasing determination

User- Srikas ‘s clients his or her all households used the loneliness

2.5 ) Positioning

CBL contains Halal certification, ISO criterion, SLS criterion and ace trade name award these give power of quality for their merchandises and give the client confident. Srikas differentiate in spirit ; packet coloring material and merchandise design from the rivals and build credibleness. Company website has more information about Srikas and clients can portion their remarks of the Srikas at Face book, Yahoo, and Twitter. In which helps to keep a good place in clients mind.


Tip Tip


Low Price

High Monetary value

High perceived quality & A ; criterion

Low perceived quality & A ; criterion


LO 3 ) Selling Mix

3.1 ) Merchandise

It is the complete package of benefits or satisfaction that purchasers perceive they will obtain if they purchase Srikas. It is the amount of all physical, psychological, symbolic and service. Srikas would be relatively the cheapest among the other competitory merchandises. Since it is the debut degree each package consists 16g being 1g more than the ordinary packages.


The quality of Srikas is ensured like all the other merchandises produced by Ceylon Biscuit Limited. CBL are trusted with high quality merchandises from the Srilanka. As for the srikas the quality assured by the Health Department throughout the production procedure itself.


The ingredients added to do Srikas is from Srilanka. The ingredients added are non merely tasty but besides gives energy. By eating these Srikas the kids are protected from other diseases because acrimonious guard is a good slayer of all sources. As such the company is doing usage of acrimonious guard in a particular manner. Black gm is used for energy Tapioca for gustatory sensation and honey for dulcifying.

Trade name

The merchandise Srikas is manufactured under the well-known trade name CBL from Srilanka. This is celebrated worldwide for its superior quality and assortment of biscuit merchandises.


The merchandise of Srikas is packed in pink coloring material which gives an attractive force to the little kids and it does n’t foul the environment because it is made of paper.


The services are available merely to the retail merchants who will acquire free bringing of the merchandise and subsequently on harmonizing to the betterment of gross revenues will be provided with interior decorator ego and name board of Srikas.


Potential Merchandise

Generic Merchandise

The Core Benefit


The nucleus benefit – to fulfill the nutriment

Generic merchandise – Srikas

Potential merchandise – In future the company will add more fruits flavor illustration strawberry and Ananas comosus

3.2 ) Topographic point

The coverage of the merchandise would be developed country such as metropoliss but one time the merchandises has reached a higher market portion than the distribution could be take topographic point in rural country and sub rural countries. Srikas is available for all supermarkets, retailors shop and school canteens.

Distribution Channel

Manufacturer Retailer Customers

Srikas want better its distribution channel because now it is in debut degree after the growing phase it will increase the distribution channel and distribution coverage.

3.3 ) Monetary value

The Srikas would be incursion pricing because it involves the scene of lower, instead than higher monetary values in order to accomplish a big, if non dominant market portion. The Srikas would be 23/= . This scheme is frequently of import for the entry of new market to construct on a comparatively little market portion. This will merely be possible where demand for the merchandise is believed to be extremely elastic.

Penetration pricing, the monetary value for the merchandise is set unnaturally low in order to derive market portion. Once this is achieved, the monetary value could be increased.

Introducing different sizes of merchandise tins in different monetary values and local pricing schemes to get by up with the planetary rivals.


Monetary value must reflect the relationship of supply and demand within the market topographic point.

3.4 ) Promotion

Promotion is a really of import portion for the Srikas because it needs to make consciousness to make this broad scope of techniques could be used to pass on with Srikas mark market. CBL will be utilizing the follows publicity activities:


CBL uses celebrated cricketer Shangahara for its commercial advertizement as a kids are interested in cricket it encourages them to purchase the Srikas. Its advertisement will televise in Sirasha, Shakthi and MTV on Cartoon programme clip its day-to-day make really shortly among the younger ‘s they like to watch sketch.

Gross saless publicity

With each package complement package is attached. The complement packages are spines, spider adult male, Benton and babie. If 25 empty packages are sent to CBL a draw-lot is done and the first three are taken to ‘leisure universe ‘ kids ‘s park. These promote the kids to purchase more packages.

Public Relations: Doing imperativeness conferences and imperativeness releases of the launch and merchandise patronizing kids activities and such

Direct mailing

Roll up the mail ID of costume and direct the item of productaˆ¦..

Free gifts

CBL provided some free gifts with little kits and any other kid foundationsaˆ¦ .

Ad on Facebook

Ad on facebook is a nice manner to present Srikasaˆ¦aˆ¦..


Poster is an easy for everyone. Because some peoples are do n’t hold clip to see a telecasting and newspaper but the posting are frequently read by more than one readeraˆ¦aˆ¦aˆ¦ . So CBL published colourful postings.

Promotional mix elements push and pull schemes, publicizing above and below the line including packaging, public dealingss and sponsorship, gross revenues publicity, direct selling and personal merchandising, stigmatization, cyberspace and on-line marketingPromotional Mix

Personal Selling

Direct selling

Gross saless Promotion

Public relation


Internet E-commerce



3.5 ) Extended selling Mix



Making a strong powerful gross revenues squad, covering the whole island. Developing the relevant engineering among the workplace and mills, supplying the staff with the professional preparation.


Introducing on-line presence for each merchandise, to get down geting the relevant engineering.

Physical grounds

CBL employees are have oning same uniforms and it ‘s refers the company name to the populace. CBL gross revenues vehicles are painted by company name.

LO4 ) Marketing Mix in different contexts

4.1 ) Ansoff ‘s Matrix

Market Penetration

Merchandise Development

Market Development





Marketing incursion – client ‘s value betterment ( Increase client satisfaction by diminishing cost to function and increase the merchandise quality.

Merchandise development – Adding value of bing increasing the merchandise quality

Market development – New client sections

Diversification – variegation into related concern.

CBL ‘s new merchandise Srikas is confronting broad scope of market in Srilanka. At present people expect different gustatory sensation and healthier nutrient in the new life style since the Srikas has natural spirit with different ingredients assorted together to give the clients a satisfaction on this merchandise. At the motion the mark market for adolescents. At present the Srikas monetary value is low as it is in the debut degree but the monetary value will increase at the growing degree. Srikas is being distributed all island broad. The spirit used in Srikas is non available worldwide but merely in Srilanka because all these ingredients are obtained from Srilanka from this the CBL will acquire an chance to come in the international degree. When the Srikas enter the international market the CBL will alter the selling mix. As such spirit is added for extra gustatory sensation and of course the monetary value will increase because of the competition in the international market.

4.2 ) Differences in selling merchandises and service to concern instead than consumers

B to C Market

This is concern to consumer selling ( B2C ) . A consumer determination procedure as holding five phases as follows ;

Problem recognition- as buying is a job work outing procedure

Information searching- the consumer may execute this hunt informally in footings of memory of past experiences.

Evaluation of options by the consumer- this should be reflected in the selling mix

Buying decision- the consumer decides which trade name or merchandise to purchase.

Post purchase evaluation- the company will be interested to cognize if the client is satisfied with the merchandise.

CBL is non straight marketed to their clients. It is distributed through the retailors.

B to B Market

Some house market merchandises to intermediary houses, instead than to ultimate clients. Therefore, the selling mix of the house should aim the intermediary house.

Benefits of B2B

Outsourcing the unprofitable parts of our concern

Rushing up our merchandise development activities –

Reducing clip to market

Improved concern and market intelligence.

Understanding our market better than our rivals

Cloning our concern in farther markets

Bettering the velocity of communicating

Facilitating communicating between our clients and providers

Reducing wastage through extra gross revenues channels

How does B2B selling differ from B2C

In B2B client relationship is more of import than B2C

The types of order will be different. B2B clients place bigger orders and there will be repeat orders

B2B clients will anticipate trade recognition whereas in B2B dealing recognition may non be given as clients are persons.

4.3 ) How international market differs from domestic market

International selling can be defined as the application of selling schemes, planning and activities to external or foreign markets. International selling is of effect to houses which operate in states and territories other than their place state, or the state in which they are registered in and have their caput office. The factors act uponing international selling are civilization, political and legal factors, a state ‘s degree of economic development, and the manner of engagement in foreign markets

The CBL is located in domestic market. Its follow srilankan policies and ordinance. CBL distributed Srikas in all island broad. Compare to the international market it face less rivals in domestic market it is chance to increase the market portion.


The Ceylon Biscuit Limited is a taking company in Srilanka. CBL ‘s new merchandise Srikas can accomplish the expect market portion. The assignment gives more information about Srikas. Now Srikas is in debut degree. The company satisfies the client through the Srikas. Srikas is being distributed all island broad but the distribution channel will spread out at growing degree.