CBL

(CONTINENTAL BISCUITS LIMITED) PAKISTAN

CASE STUDY IS PRESENTED BY:

ARIF JALBANI ASIM BHUTTO HAQ NAWAZ

WASEELA KHAN KAMRAN SAEED

MAUFACTURED & MARKETED BY

In 1850, Monsieue Lefevre, a baker, married Mademoiselle Utile, and together they began baking exquisite cookies in the seaside town of Nantes, France. The couple proudly placed their initials, LU, on every package. From this charming heritage comes todays beloved cookie brand. LU Biscuits. In 1984, the success story of LU in Pakistan began with the initiative of Hassan 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

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 LU 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. Today the company has a joint venture with Kraft Foods with a shareholding of 50.5% and 49.5% respectively.

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. LU manufacturing location based in Sukkur (Since 1986) is a centre of excellence which provides employment to 2200 people in the region. Marketing, sales, finance, commercial, IT and the human resources functions are located in the head office in Karachi employing a total of 180 employees. LU Plant and its residential colony are multi storied buildings built on 15 acres of land. The colony houses more than 50 employees who reside here with their families.

Throughout the world, to ensure that people can grow, live better and thrive to be full by providing them daily with better food, a greater variety of tastes and healthier pleasure. To produce and sale the qualitative products is also a one of the mission objects. From the day-one, CBL have emphasized on quality in every area. CBL select the finest ingredients, ensure hygienic conditions at every manufacturing stage and constantly work toward delivering on our promise to the consumer. CBL recall the expiries and un-eatable products from the market through a claim process as consumer have always a fresh and healthy product.

As national business, CBL expand and spread its International market share, to be the largest exporter of biscuit industry is the 1. AFGHANISTAN part of CBL mission. 2. SRI LANKA Current Export coverage: 3. MIDDLE EAST4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. SUDAN ETHOPIA UGANDA TANZANIA LIBERIA GABON CANGO ANGOLA ZAMIBIA NAMIBIA SOUTH AFRICA MAURITIUS

Now companies not only focus on the needs of their customers but also the needs of society and environment. CBL must be good corporate citizens and must give back to the societies to which we belong. CBL an ISO-14001 certified company, which indicates that the material and processes waste do not harm the environment we live in. CBL have a concise and effective policy for quality and environment that is well communicated to all its employees from top down to individual workers.

Some of the actively pursued social welfare projects supported by CBL are as follows: CBL supported the development of the Herbarium Botanical Garden and Play Area at Shah Abdul Latif University, Khairpur. CBL also supported the Friends of All Pakistan Women's Association (FAPWA) for building schools and dispensaries for the people of Yousuf Goth, Pariya Goth and Kutchar Kundi near Hub. CBL supported Citizens Police Liaison Committee (CPLC) on various projects. CBL have provided financial assistance to needy cancer patients both at the Shaukat Khanum Memorial Cancer Hospital

& Research Centre and the Aga Khan University Hospital. CBL have provided financial assistance to needy patients for eye surgery at Al-Shifa Trust Eye Hospital, Sukkur. And more CBL recently increase the scholarship quotas to Institute of Business Administration, Sukkur and Shah Abdul Latif University, Khairpur. IBA Sukkur recently passed a thanking resolution to this effect.

From a sales volume of 275 tons in 1986, CBL have crossed the 30,000 tons recently, taking CBL's turnover to over Rs. 2 billion. Innovation, quality, consistent advertising, a strong distribution network combined with a dedicated and motivated team-key success factors that have helped CBL to touch the index at top. CBL currently enjoy a market share of over 30 percent in Pakistan, and CBLs supremacy in the biscuit industry is due to its prime emphasis on quality products coupled with an excellent distribution network. CBL is at 2nd in the biscuit industry and only 10% back to its major competitor EBM having about 40% market share in Pakistan.

The company has 9 brands with 39 SKUsP R I D E F U L L P R O D U C T S

STRENGTHS: STRENGTHS:Sales department is strength and plays most significant part in success. 1. Technically skilled Team 2. Sales operations are systemized, i.e invoicing, dispatches, booking, delivery, sales reporting. 3. Strong competitor tracking. 4. Strong infrastructure (route to the market / market coverage) vs. competition. 5. Rural development program has strengthen the share of CBL.

STRENGTHS: STRENGTHS:Production department 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 biscuit industry with 7 production lines. Some 92 Test regarding the Quality Control (QC) department are performed to ensure that every bite a customer takes is 100% nutritive. WEAKNESSES: WEAKNESSES: Sales team yet has to be given some valuable Training & Coaching sessions to be fully equipped to face future challenges of modernization.

WEAKNESSES: WEAKNESSES: Department must enhance its production capacity by installing at least one or more production line. Growing marketing costs are creating challenges for finance. OPPORTUNITIES: OPPORTUNITIES: With much skilled sales force of CBL as compared to EBM, Bisconi, Asian Foods, CBL have opportunity to get more share through strong coverage and infrastructural improvements. Marketing department has opportunity to make effective marketing campaigns regularly to support brands.

THREATS: THREATS: 1. Low cost sharing of sales team 2. Low finance supplies 3. New and existing competition