Course: Marketing Management

Resource Person: Mr. Ahmad Haseeb Hassan.

Assignment # 2: SOWT Analysis of Continental
Biscuits Limited.
Submitted By:

1. Ghulam Murtaza MBA Executive 115421003.

2. Mariyuam Imtiaz MBA Executive 115421005.
3. Muhammad Mohsin MBA Executive 115421002.
4. Awais Durrani MBA Evening 083732008.

Submission Date: 14-03-2011

SWOT Analysis of Continental Biscuits Limited.
Brief Introduction:
Continental Biscuits Limited (CBL) was founded in 1984 following a Joint Venture between the family
of Hasan Ali Khan and the Group Danone, the French food giants. In the year 2007 Danone sold their biscuits
category to Kraft Foods of USA. Today the company has a joint venture with Kraft Foods with a shareholding
of 50.5% and 49.5% respectively.

For more than two decades CBL is engaged in the manufacturing and marketing of the brand LU. We have
an array of products which are pre-eminent in the branded biscuit business both in Pakistan and abroad. Our
unrivalled portfolio of brands has been meeting consumer needs for well over two decades and includes such
favourites as TUC, Candi, Prince and Tiger. We produce some of the best known crackers, cream variants, plain and
ingredient-based biscuits. Our manufacturing location based in Sukkur is a centre of excellence which provides
employment to 2200 people in the region. Our marketing, sales, finance, commercial, IT and the human resources
functions are located in the head office in Karachi employing a total of 180 employees. As a part of the leading FMCG
our head office has close links both with the Regional Offices of Kraft in UAE and our manufacturing plant in Sukkur.

Incorporated in 1984, the success story of LU in Pakistan began with the initiative of Hasan Ali Khan (the
founder of Continental Biscuits), who signed a joint venture agreement with Generale Biscuits, the global
manufacturers of the LU range, which was subsequently acquired by the Danone Group. Expansive investments
were made including the import of technology and professional expertise from abroad. The first undertaking was to
set up a factory and establish distribution centers in the country with the ultimate objective of commencing operations
and marketing our products in Pakistan. CBL thus started its' operations in the country since September 1986 with an
initial strength of 200 employees.

The company first introduced its' innovative brands - TUC, Prince and Candi which proved to be an instant success.
With global merger of Generale Biscuit and the Danone Group, a more comprehensive range of products and
technical know-how became available to CBL. The company at present has an outstanding portfolio, under its power
brands of TUC, Prince, Tiger and Candi. These brands have an array of products that falls into the category of plain
biscuits, cream variants, crackers and ingredients based.

The Biscuit Industry:

The Packed Food (Biscuit) market is growing in Pakistan very rapidly. Its size has grown up till
14000 Tons only in urban Pakistan .There are major 5 contribution player in Pakistan. Each is having
following respective Market Shares in Biscuits industry.

Company Market Share in %age

1. Continental Biscuits Limited. 25.3%

2. English Biscuits Manufacturing Co. 43.0%
3. Ismail Industries, Bisconi. 10.5%
4. Asian Foods. 6.1%
Company Products:

The company has 8 Brands with 39 SKU’s.

Here we will be conducting the SWOT of Continental Biscuits Limited. The Flow chart shows all aspects.

The flow chart includes internal and external environment which may be helpful or harmful in reality.
These are the four points on which SWOT will be done.

1. Production.
2. Sales.
3. Marketing.
Production
4. Finance. Marketing

Finance Sales
STRENGTHS:

Sales:

Sales Department is our strength and plays most significant part in our success.

1. Technically Skilled Sales Team.

2. Sales Operations are Systemized i.e., Invoicing, Dispatches , Booking , Delivery, Slaes Reporting .\
3. Well aware of Market Scenario.
4. Strong Competitor Tracking.
5. Setting and achieving new goals continuously.
6. Strong infrastructures (route to the market / market coverage) vs. competition.
7. Rural Development Program has strengthen the share of CBL.

Marketing:

Marketing Department in the year 2009 and 2010 has floated some brilliant ideas to be roll out
and company has turned around the sales with consecutive growths of 52% volume growth.

Production:

Production department or Factory is also Strength of CBL as according to the Kraft Foods CBL
Factory is the 3rd Largest Factory in the World which it has related to Biscuits industry with 7 production
lines. Some 92 Test regarding the QC department are performed to ensure that every Bite a customer
takes is 100% nutritive.

Finance:

To make it happen what the Sales, Marketing and production departments have planned to
achieve finance has supported each and every department to go for it.

WEAKNESSES:

Sales:

Sales team yet has to be given some valuable Training & Coaching Sessions to be fully equipped
to face future challenges of Modernization.
Marketing:

Marketing is not spending as much as the competition is spending on its TVC campaigns i.e,
Launch of Bakeri Range was supported by 85 million Rupees while EBM is spending on its Brand Sooper
more than 120 million on current TVC airing followed by Gluco and Farm House.

Production:

Department must enhance its production capacity by installing at least one more production
line.

Finance:

Growing Marketing costs are creating challenges for finance.

OPPORTUNITIES:
With much skilled Sales Force of CBL as compared to EBM, Bisconi, Asian Foods we have
opportunity to get more share through strong coverage and infrastructural improvements. Our Rural
portion is weakest which an opportunity is for us. Though the EBM and Bisconi has matured their
Production limits we have an opportunity to get share. Marketing Department has opportunity to make
effective marketing campaigns regularly to support brands.

THREATS:
1. Untrained Sales force.
2. Low Cost Sharing of Sales team.
3. Poor marketing.
4. Low finance supplies.
5. New and existing competition.