ABC limited manufactures 4 kinds of biscuits: B1, B2, B3 & B4.

B1 is their oldest brand

(Since 1940). An economical glucose biscuit it is available in every corner of the country and
is most recognized brand of ABC. The product has stopped growing 8 years back but shows a
consistent sale and no great promotion is done for the brand. B2 is a low priced cream biscuit
introduced in 1980s. It was promoted in towns till 2010 but has gone rural since then. A
growing brand whose growth is mostly rural, there is heavy promotion in local/rural media. B3
was introduced in 2000 and is a high priced variant of cream biscuit. A biscuit with good
growth it is mostly available in the urban area. A famous film actor endorses the brand and
heavy promotion is done throughout the year. B3 is mostly distributed through the premium
stores in large/mid sized packs. B1 & B2 are sold through all possible outlets and are available
in large, medium and small size packs. For B1 & B2 the small size packs dominate. B4 was
introduced in 2005 and is a high priced cookie. It has exclusive advertisements in selected
media. Foreign actors are used, to advertise B4 cookies, and it is distributed through premium
stores only. They are available in large and mid sized premium tins and also can be ordered
online through the B4 web page. The B4 cookie packing can be customized to suite
specialized occasions like festival so that corporate can use them as gifts. Other brands in the
biscuit markets are as following.
Parle G - low priced glucose biscuit,
Good day - low priced cookie,
Oreo
premium
cream biscuit,
Pure magic high priced cookies ,
Italiano medium priced cookie,
Dark fantasy premium cream biscuit, Sunfeast glucose mid priced glucose, Danish
Butter
Cookies low priced,
Bourbon Mid priced cream.
B1 has a market penetration of 90% and there are some established competitors in the
category (apart from those given here). Most of the small competitors of B1 were withdrawn
due to low profitability in the category. B1 is the top selling brand in its category with MS of
20%. B2, though it has huge penetration, is not the market leader. In that category a brand
called Priya Gold is the leader with 15% MS followed by B2 at 12% MS. Priya gold is
manufactured by Priya Industries, which is of the same size & strength as ABC industries.
1. Plot the PLC of the 4 brands of ABC, strictly based on the facts provided in the case,
and justify your classification with at least two justifications for each brand.
2. Develop the strategic groups/ competitive clusters for biscuit industry, using facts
provided in the case, and find out the competitors for ABCs 4 brands.
3. What is the market position of brand B1 & B2? What strategies should they use while
competing? Substantiate your answer with points from the case.
4. Briefly describe the generic strategies adopted by the four brands. What are the
possible generic strategies while marketing a product? Explain with examples.