How can Maliban handle intense competition from brands like Munchee effectively?

 

 How can Maliban handle intense competition from brands like Munchee effectively?


It is common for students to ask how companies can survive in highly competitive markets, especially when their products are imitated by others. Maliban versus Munchee is a typical example of market warfare. Through this, students can learn how operating firms defend market share.

Maliban and Munchee compete in almost all categories, ranging from varieties of products, packaging options, and advertising slogans. Munchee has followed a "me-too" strategy by introducing similar products like lemon puff and cream crackers. This imitation erodes Maliban's uniqueness, and it becomes more difficult to attain differentiation.

To counter this challenge, Maliban needs to focus on creating sustainable sources of competitive edge. An effective way is through product innovation, i.e., launching products that are hard to imitate. For example, the Fruity Cake Bar is positioned as a new alternative to traditional portion cakes. Investment in research and development can enable the launch of products with natural contents or health benefits (e.g., high-fiber biscuits), thus responding to the tastes of modern consumers.

A second tack is corporate social responsibility brand loyalty. Initiatives such as the "Water Project" or the donation of computers to rural schools engender emotional goodwill among customers that are less copyable by competitors.

It becomes less dependent on the domestic market as well. If Maliban increases its penetration in South Asian or African markets, it can insulate itself from the dangers of local market saturation or competitiveness.

Also read: 
1. What does the 80/20 strategy mean, and how does it help JB Hi-Fi stay competitive?

2. What is the difference between SWOT and PESTEL analysis, and why do both matter for Maliban?