Project Report On Britannia Biscuits- A Marketing Strategy
By Gunjan Kumari
Table of Contents S.N
Page No
1. 2. 3. 4. 5. 6
Executive Summary Introduction Milestone of Britannia Market & Marketing Stategies Product Line Brief industry Profile
7 8. 9 10
Conceptual Framework Data Analysis and findings Conclusion Bibliography
Executive Summary Marketing strategies of Food industry depend of the number of factor like demographic profile, brand, health awareness, taste and quality & etc. The company has to study the target region with regards to these factors. The increase share of the market ,company have continued focus on advertising ,promotion and research in study of consumer behavior for change in health awareness and taste. That only company like Britannia choose to manufacture product for every age and every type of the people e.g Britannia Tiger for growing Kids, NutriChoice Hi-Fibre Digestive for people having digestion problem, NutriChoice SugarOut for Diabetics people. Keeping in factor like change in health awareness and taste of people , Britannia adopted tagline like “Think Healthy Think Better “, “'Swasth Khao, Tiger Ban Jao” and recently slogan “Zindagi Mein life” Britannia Industries started marketing its products with the new slogan “Zindagi Mein life” from last two years to target more health conscious urban Indian. The change has worked – with its millions of Indian consumers, who are getting more health-conscious by the day, believing in the brand, trusting its promise of health and accepting innovations from the company. it is the only biscuit maker in India which has made products trans-fat-free. The brand’s efforts of the company is getting recognised more each passing day. The study of the consumer behavior is very important to get into through marketing strategies of company.
Introduction of Britannia The story of one of India's favorite brands reads almost like a fairy tale. Once upon a time, in 1892 to be precise, a biscuit company was started in a nondescript house in Calcutta (now Kolkata) with an initial investment of Rs. 295. Initially, biscuits were manufactured in a small house in central Kolkata. Later, the enterprise was acquired by the Gupta brothers mainly Nalin Chandra Gupta, a renowned attorney, and operated under the name of "V.S. Brothers." In 1918, C.H. Holmes, an English businessman in Kolkata, was taken on as a partner and The Britannia Biscuit Company Limited (BBCo) was launched. The Mumbai factory was set up in 1924 and Peek Freans UK, acquired a controlling interest in BBCo. Biscuits were in big demand during World War II, which gave a boost to the company’s sales. As time moved on, the biscuit market continued to grow… and Britannia grew along with it. In 1975, the Britannia Biscuit Company took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed 60%, firmly establishing the Indianness of the firm. The following year, Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL). Four years later in 1983, it crossed the Rs. 100 crores revenue mark.
On the operations front, the company was making equally dynamic strides. In 1992, it celebrated its Platinum Jubilee. In 1997, the company unveiled its new corporate identity - "Eat Healthy, Think Better" - and made its first foray into the dairy products market..
Britannia strode into the 21st Century as one of India's biggest brands and the pre-eminent food brand of the country. It was equally recognized for its innovative approach to products and marketing. In recognition of its vision and accelerating graph, Forbes Global rated Britannia 'One amongst the Top 200 Small
Companies of the World', and The Economic Times pegged Britannia India's 2nd Most Trusted Brand.
Today, more than a century after those tentative first steps, Britannia's fairy tale is not only going strong but blazing new standards, and that miniscule initial investment has grown by leaps and bounds to crores of rupees in wealth for Britannia's shareholders. The company's offerings are spread across the spectrum with products ranging from the healthy and economical Tiger biscuits to the more lifestyle-oriented Milkman Cheese. Having succeeded in garnering the trust of almost one-third of India's one billion population and a strong management at the helm means Britannia will continue to dream big on its path of innovation and and quality.
Major milestone 1892 The Genesis - Britannia established with an investment of Rs. 295 in Kolkata
1910 Advent of electricity sees operations mechanised 1921 Imported machinery introduced; Britannia becomes the first company East of the Suez to use gas ovens 1939 – 44 o Sales rise exponentially to Rs.16,27,202 in 1939 o During 1944 sales ramp up by more than eight times to reach Rs.1.36 crore 1975 Britannia Biscuit Company takes over biscuit distribution from Parry's 1978 Public issue - Indian shareholding crosses 60% 1979 Re-christened Britannia Industries Ltd. (BIL) 1983 Sales cross Rs.100 crore 1992 BIL celebrates its Platinum Jubilee 1993 Wadia Group acquires stake in ABIL, UK and becomes an equal partner with Groupe Danone in BIL 1994 Volumes cross 1,00,000 tons of biscuits 1997 o Re-birth - new corporate identity 'Eat Healthy, Think Better' leads to new mission: o 'Make every third Indian a Britannia consumer' BIL enters the dairy products market 1999 "Britannia Khao World Cup Jao" - a major success! Profit up by 37% 2000 Forbes Global Ranking - Britannia among Top 300 small companies 2001 o BIL ranked one of India's biggest brands No.1 food brand of the country . o Britannia Lagaan Match: India's most successful promotional activity of the year; o Maska Chaska: India's most successful FMCG launch 2002 o BIL launches joint venture with Fonterra, the world's second largest dairy company Britannia New Zealand Foods Pvt. Ltd. is born;
o Rated as 'One amongst the Top 200 Small Companies of the World' by Forbes Global o Economic Times ranks BIL India's 2nd Most Trusted Brand o Pure Magic -Winner of the Worldstar, Asiastar and Indiastar award for packaging •
2003 'Treat Duet'- most successful launch of the year
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2004 Britannia accorded the status of being a 'Superbrand'
• 2005 Re-birth of Tiger - 'Swasth Khao, Tiger Ban Jao' becomes the popular chant! •
2006 Britannia re-launched NutriChoice Hi-Fibre Digestive biscuits in an international large sized biscuit pack.
• 2007 Britannia NutriChoice SugarOut range introduced - 1st of its kind of biscuits to be be launched in India with "No Added Sugar" (Variants - Chocolate Cream, Orange Cream, and Litetime) •
2008 o Britannia NutriChoice 5 Grain biscuits launched - Biscuits with the goodness of 5 health Cereals, and sweetened with Natural honey. Britannia Nutrichoice promised consumers "Bhook Bhagao, Kuch Healthy Khao" o Britannia launched Iron fortified 'Tiger Banana' biscuits, 'Good Day Classic Cookies', Low Fat Dahi and renovated 'MarieGold'.
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2009 o Britannia Launches ActiMind - A first of its kind milk based health drink for kids, which helps improve mental sharpness. Launch of ActiMind marked Britannia's entry into the beverage segment and has further extended its credo of 'Eat Healthy, Think Better' to 'Drink Healthy, Think Better' as well!! o Britannia NutriChoice Nature Spice Crackers launched - Your favorite Cream Crackers, now made even more exciting with the addition of "Sabut" Ajwain and Jeera spices.
o Britannia takes full control of Daily Bread. o Britannia Industries buys out New Zealand's Fonterra from existing dairy joint venture, Britannia New Zealand Foods (BNZF). BNZF became a 100 per cent Britannia subsidiary and was renamed Britannia Dairy Private Limited (BDPL). o Recognizing the changing global trends & health benefits of removing transfats, Britannia is the first Bakery brand in India to remove transfats from its products. o Wadia Group acquired stake holdings from Group Danone and becomes the single largest shareholder in BIL. •
2010 o 50-50 Maska Chaska was re-launched with a new masaaledar twist a delightful blend of butter and imported flavours along with sprinkling of masala in September 2010. o Tiger enters the Cookies category, with the launch of Krunch Cookies in October.. o Brand NutriChoice, in keeping with its track record of launching differentiated healthy snacks, launched Diabetic Friendly Essentials o Britannia was presented the Master Brand 2010 Award by CMO Council in November 2010. o Rotary Club of Chennai awarded CSR Award to Britannia in November, for our work in nutrition.
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2011 o Always committed to constant innovation, Britannia launched Britannia Healthy Start in Mumbai in January 2011 o Britannia received the Most Respected Company Award 2011 from Businessworld. o Bourbon received the Most Popular Confectionery Product Preferred By Youth (Biscuit) Award. o Britannia further enhanced its foray into healthy milk based drinks by launching TigerZor Choco Milk & TigerZor Badam Milk in May 2011.
o Britannia Bread launched its new range of Health Breads in Delhi in November. o Delhi factory was adjudged as the winner for Outstanding Performance in Food Safety. o BRITANNIA was honoured with `CREATIVE HR PRACTICES AWARD' by Employer Branding Institute, India, •
2012 o IMC Ramakrishna Bajaj National Quality Award 2011 was awarded to Britannia Industries Limited, Britannia Industries Limited Khurda was commissioned on 17th April 2012. o The Modern Trade team of Britannia was honoured with WinnerBEST BAKERY SUPPLIER award for the year 2011-12, at the 1st SPENCER'S Best Supplier Awards 2012 o Britannia was awarded the Global Performance Excellence Award (GPEA) by Asia Pacific Quality Organization (APQO). o Britannia won Global award given out by 'World Quality Congress'.
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2013 o Britannia Industries Ltd, Kolkata was selected the winner of the GOLDEN PEACOCK NATIONAL QUALITY AWARD for the year 2012 o Britannia was awarded "Manufacturing Supply Chain Award for End to End Customer Solution Excellence" on 23rd January 2013 at the Asia Manufacturing Supply Chain Summit (AMSCS) held in Mumbai. o Britannia bagged two National Quality Excellence Awards for 2013one for Best End-to-End Customer Solution (Supply Chain), and the second, for Planning, Processes and Systems - on 14th February 2013 at Taj Lands End, Mumbai o The Namma Bengaluru Award for 2012, in the Corporate Social Responsibility category for initiating and implementing Solid Waste Management.
o Britannia bagged the prestigious IWLF Award for 'Solid Waste Management Project' and 'BNF' project at the International Women Leadership Forum held in Mumbai on 25th April 2013.
Product Line New Britannia Tiger
Britannia Tiger, one of the biggest brands in the kids segment, has re-invented itself to revolutionize the concept of kids' nutrition in the country. Equipped with a new vision of leading the kids' nutrition space, Britannia Tiger has revamped its offerings to embody fun and energy on one hand and health and nutrition on the other. Enriched with growth nutrients across all its variants -Glucose, Crunch Cookies and Creams, Britannia Tiger comes with the credo of 'Roz Badho'. Aimed at addressing every mother's concern on their kid's nutrition, Britannia Tiger has undergone a considerable shift in its product offering, transforming itself into a healthier and tastier avatar. Identifying the role of biscuits as a important component of daily food and a major carrier of nutrition, Britannia Tiger fortifies itself, across categories, with growth nutrients like iron, calcium, folic acid, vitamin A and D*. Packed with 25% of daily growth nutrients (every 100 gms). Britannia NutriChoice Oat Cookies For the first time in India we have Britannia NutriChoice 'Diabetic Friendly' Essentials specially designed for people with diabetes. There's no longer a need to avoid snacks or go hungry while traveling or at work. Rather approach snacking in a healthy way with our Oat Cookies. Britannia NutriChoice Oat Cookies are scientifically created to suit the special lifestyle and nutrition needs of diabetics to manage extreme swings in blood sugar. They are tasty, crunchy and convenient option for those mid-meal pangs. In addition, the oat fiber lowers rise in blood sugar, helps control blood cholesterol and helps you feel satisfied and active for longer. Britannia NutriChoice Ragi Cookies For the first time in India we have Britannia NutriChoice 'Diabetic Friendly' Essentials specially designed for people with diabetes. There's no longer a need to avoid snacks or go hungry while traveling or at work. Rather approach snacking in a healthy way with our Ragi Cookies. Britannia NutriChoice Ragi Cookies are scientifically created to suit the special lifestyle and nutrition needs of diabetics to
manage extreme swings in blood sugar levels. They are tasty, crunchy and convenient option for those mid-meal pangs. Ragi helps lower blood glucose levels and in a rich source of magnesium, which is instrumental for the production of important enzymes. Our Ragi Cookies are a good source of fiber, both soluble and insoluble, for heart and digestive health. Veg Cakes Britannia Veg Cakes is every vegetarian's dream come true! 100% vegetarian cake with all the softness and delight a cake should have. Every slice is soft and fluffy, stuffed with real fruit bits, to give you a cake that is truly delicious, down to the last slice. Add to this zero cholesterol and a 3 month shelf life and you have a healthy, convenient snack to enjoy anytime, anywhere. Grab a pack of Britannia Veg Cake today. Masti ka Green Signal! Flavour: Twisty Fruity Price and sizes: Rs. 15/- for 75 gm pack. Nutrichoice Health Starter Kit 2010 - Britannia Nutrichoice launches a New Year pack - the Nutrichoice Health Starter Kit . Created for everyone who makes a New Year resolution to become healthy and does not follow through on it. The Health Starter Kit contains a range of healthy biscutis - 1 pack each of Nutrichoice Hi-Fiber Digestive, Nutrichoice 5 Grain and Nutrichoice Nature Spice Cracker. It also has a one week free pass to Talalkars gym that entitles every consumer to one week free trial of any Talwalkars (TBVF ltd) gym across the country. In addition to this the pack also contains a Fit Sip Sipper and a fitness chart. All this for only Rs 100. NutriChoice 5 Grain Most consumers believe that to in order to stay healthy one needs to make certain compromises on some good things in life. Whether it is choice of extra hour of sleep over early morning exercise and eating unappetizing foods over oildripping samosa. At the same time most of us agree that good nutrition cannot come from one kind of food alone, but from a healthy combination / assortment of several healthy ingredients put together. Britannia NutriChoice 5 Grain Biscuits
are a perfect answer to those looking for healthy eating options without as much making a compromise on taste, or convenience, or health. Because Britannia NutriChoice 5 Grain biscuits are made from 5 carefully chosen healthy cereals (Oats that help reduce bad cholesterol, Corn which promotes heart health, Ragi a good source of both Calcium as well as Fibre, Rice low in fat, and Wheat that provides wholesome energy). These biscuits are delicately sweetened with natural honey, and come in a unique large oval shape. It is this large size and the healthy combination of the ingredients, that make it an ideal hunger buster for those in-between meals time hunger. Britannia NutriChoice 5 Grain biscuit pack contains several small single serve pocket meals packs, so that one is never far away from pacifying hunger on the move. So whenever you miss your breakfast, or succumb to those unhealthy evening snacks, you can relish the goodness of health with Britannia NutriChoice 5 Grain biscuits. NutriChoice SugarOut Sounds like yesterday when people commented that healthy foods meant "compromising on the taste." NutriChoice SugarOut is the most novel product range to have been introduced in the market. The product is not just sweet but tastes great, and yet contains no added sugar. This is because NutriChoice SugarOut is sweetened with "Sucralose," derived from sugar, which provides the same sweetness as any other biscuit, without the added calories of sugar. This range is available in 3 delicious variants namely Litetime, Chocolate cream, and Orange cream, targeted towards all health sensitive people. It is also relevant for consumers with sugar related ailments. We are sure that you will be pleasantly delighted with its great taste and equally surprised to know that it has no added sugar. Don't be taken for a ride when you read "Sugar Free" label on many biscuit packs marketed in India or abroad. Even with 100% no-added sugar, wheat-cereals in
biscuits have their own natural sugar content. Britannia has chosen to represent these biscuits with "No Added Sugar" claim, as there is no added sugar in the processing of NutriChoice SugarOut. NutriChoice Digestive Biscuit Nothing can be more difficult than making small efforts in our daily life towards healthy and active living. 24/7 we are engrossed in our busy schedules; skipping meals, missing walks, along with inadequate sleep and frequently eating-out, all take a heavy toll on our health. At least with the new and improved NutriChoice Digestive Biscuit, we have one less thing to worry about. Made with 50% whole-wheat and packed with added fibre (10% of our daily dietary needs), these delightfully tasty biscuits are amongst your healthiest bites of the day. In your next visit to a shop just look out for its Golden-green international carton pack. Try one and you'll know that you've made one smart choice - NutriChoice. Treat Fruit Rollz All kids who have relished the yummy creamy treasures of Britannia Treat in exciting flavors, have yet another reason to celebrate! Britannia Treat launches the amazingly yummy Treat Fruit Rollz!! These tasty soft rolls are filled with real fruits and provide a healthy yet mouth-watering treat to the kids. Fruit Rollz comes in four masti fruit flavours - Juicy Apple, Strawberry Surprise, Tangy Orange and Delicious Dates! Want to know a little secret? They make the best tiffin treats! So during snack time what better than to munch on the delicious and healthy Fruit Rollz and discover the yummy fruit flavor from within the shells. Keeping up with Britannia's platform of 'taste bhi, health bhi', Fruit Rollz is indeed a yummy snacking option for kids, while keeping the Moms assured about the goodness provided by the fruit filling.
So go on and treat yourself to the lip-smacking snack! New Britannia Milk Bikis Milk Bikis, the favourite growth partner of Kids, now brings greater value and delight to all with its new product and pack design. Recently re-launched in its existing Southern & Eastern markets, and extended across India, the new Milk Bikis is all set to add excitement and appeal to ‘nutritious’ food. Whoever said that ‘good food’ needs to look ‘dull and boring’, will just have to take a look at Milk Bikis. With a unique and attractive honeycomb design and an enhanced product experience, the new biscuit prompts the ‘Kid’s will love it’ reaction amongst mothers. The milk goodness in the recipe is now enhanced with SMART NUTRIENTS – 4 vital vitamins, iron and iodine, proven to aid mental and physical development in growing kids. The premium packaging, besides appealing to kids, also ensures that the biscuits remain fresh and crisp. So, whether its breakfast time or snack time at school, rest assured that kids will look forward to munching these crunchy, milky biscuits which even helps in their development. And yes, adults won’t be far behind in reaching out for a pack!
INDUSTRY OVERVIEW Biscuit industry is one of the major food and beverage industry under FMCG industry. It is growing at a rapid rate in developing countries. Biscuit industry in India in the organized sector produces around 65% of the total production, the balance 35% being contributed by the unorganized bakeries. The industry consists of two large scale manufacturers, around 50 medium scale brands and small scale units ranging up to 2500 units in the country, as at 2000-01. The unorganized sector is estimated to have approximately 30,000 small & tiny bakeries across the country The annual turnover of the organized sector of the biscuit manufacturers (as at 2001-02) is Rs. 4,350 crores
The biscuit industry in India witnessed annual growth as below:2003-04 13% 2004-05 14% 2005-06 14% 2006-07 13% 2007-08 14% 2008-09 16% 2009-10 14%
2010-11 11% 2011-12 11% 2012-13 09% (April-September 2012) While the growth rate has been stagnating during last 4 years, it picked up momentum during the 2008-09 mainly on account of exemption from Central Excise Duty on biscuits with MRP up to Rs.100/per kg, as per Union Budget for 2007-08. However growth further declined from 2009-10 to 2011-12 and the first half of 2012-13. Annual Production: The organized biscuit manufacturing industry‘s annual production figures are given below: (In Lakh Metric Tonnes) 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
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11.00 12.55 14.29 16.14 16.85 17.50 18.50 19.00 20.50 10.50(April to September 2012)
EXPORTS of Biscuit was 14% of the annual production during the year 201011 which declined to around 12.5% in 2011-12. IMPORT of biscuits into India has not shown any significant growth during the last five years and has not affected production/sales by the Indian Biscuit industry.
LITERATURE REVIEW
CONSUMER BUYING BEHAVIOR Understanding the buying behavior of the target market is the essential task of marketing management under marketing concept. The consumer market consists of all the individuals and households who buy or acquire good and services for personal consumptions. The buying behavior tries to find out the answers for the questions, who buys? How do they buy? Where do they buy? Do they buy? (A) FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR There are four major factors that influence the buying behavior such as cultural factors, social factors, personal factors, and psychological factors. i.
CULTURAL FACTORS: Culture is the most fundamental determinant of a person wants and behavior. Values, perceptions, preferences, and behavior are the main variable under culture of an individual. Each culture contains subculture like nationality, religious group, geographical area, and linguistic divisions etc.
ii.
SOCIAL FACTORS: A consumer behavior is also influenced by social factors such as the consumer reference group family and social roles and status.
iii.
PERSONAL FACTORS: A buyer decision is also influenced by his or personal characteristics, notably the buyers age, lifestyle, occupation, economic circumstances etc.
PSYCHOLOGICAL FACTORS: a person buying choice is also influenced by four major psychological factors such as motivation, perception, learning belief and attitudes.
(B) BUYING DECISION PROCESS
It includes buying roles, types of buying and steps in buying process. I.
BUYING ROLE
The buying role could be classified into four parts. These are initiator, influencer, decider and buyer. II. TYPES OF BUYING BEHAVIOR Consumer decision taking varies with the type of buying decision. There are four types buying behavior such as Complex buying behavior, Habitual buying behavior, Variety seeking buying behavior. III. STAGES IN BUYING DECISION PROCESS Here are five stages in buying decision process namely problem recognition search, evaluation of alternatives purchase decision and past purchase behavior. NEED RECOGNITION The buying process starts with the buyer’s recognition of a problem of need. The buyer senses a difference between his actual state and desired state. INFORMATION SEARCH There are different sources from where a consumer can gather information like personal sources commercial sources, experimental sources. EVALUATION OF ALTERNATIVES After gathering information about different products the customer will be in a fuss as to choose which product among the mainly alternatives consumer usually evaluate the alternatives on traditional basis, on the basis of utility function etc. from the many alternative consumers at last choose the best one for him.
PURCHASE DECISION A consumer who decides to execute purchase intention will be making up to five purchase decisions. POST PURCHASE BEHAVIOR
After purchasing the product and services the consumer will experience some level of satisfaction or dissatisfaction with the product and services that will influence subsequent behavior. If consumer is satisfied he may show the probability of buying the product the next time, satisfied customer will say good thing about the product, proving the statement that "satisfied customer is the best advertisement.” A dissatisfied customer may take some action against it. They may try to reduce the dissonance by abandoning returning the product. Understanding consumer needs and buying process is the foundation of any company. By understanding how buyers go through problem recognition, information search evaluation of alternatives, the purchase decision and post purchase behavior marketers can pick up many clues as to how to meet buyers need.
ALL ABOUT MARKETING STRATEGY Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Marketing strategy involves careful scanning of the internal and external environments. Internal environmental factors include the marketing mix and marketing mix modeling, plus performance analysis and strategic constraints. External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. DEFINATION OF MARKETING STRATEGY:Marketing strategy is defined by Prophet's David Aaker as a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage.
Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives. According to Shaw, Eric Marketing Strategy: From the Origin of the Concept to the Development of a Conceptual Framework. In Marketing, there is a framework for marketing strategies. Market introduction strategies "At introduction, the marketing strategist has two principle strategies to choose from: penetration or niche". Market growth strategies "In the early growth stage, the marketing manager may choose from two additional strategic alternatives: segment expansion or brand expansion. Market maturity strategies "In maturity, sales growth slows, stabilizes and starts to decline. In early maturity, it is common to employ a maintenance strategy, where the firm maintains or holds a stable marketing mix". Market decline strategies At some point the decline in sales approaches and then begins to exceed costs. And not just accounting costs, there are hidden costs as well; as Kotler observed: 'No financial accounting can adequately convey all the hidden costs.' At some point, with declining sales and rising costs, a harvesting strategy becomes unprofitable and a divesting strategy necessary". Early marketing strategy concepts were: Borden’s “marketing mix” "In his classic Harvard Business Review (HBR) article of the marketing mix, Borden (1964) credits James Culliton in 1948 with describing the marketing executive as a 'decider' and a 'mixer of ingredients.' This led Borden, in the early
1950s, to the insight that what this mixer of ingredients was deciding upon was a 'marketing mix'". Smith’s “differentiation and segmentation strategies” "In product differentiation, according to Smith, a firm tries 'bending the will of demand to the will of supply.' That is, distinguishing or differentiating some aspect(s) of its marketing mix from those of competitors, in a mass market or large segment, where customer preferences are relatively homogeneous, in an attempt to shift its aggregate demand curve to the left (greater quantity sold for a given price) and make it more inelastic (less amenable to substitutes). With segmentation, a firm recognizes that it faces multiple demand curves, because customer preferences are heterogeneous, and focuses on serving one or more specific target segments within the overall market".
RESEARCH METHODOLOGY MARKET AND MARKETING STRATEGY OF BRITANIA 1 Strategy Formulation Framing Mission and Objectives:In the step Britannia Company Forms its mission and objective, which has been decided by top level management mainly by Mrs. Nasali wadia and Ms. Vinita Bali Analysis of the Internal Environment:In this part Britannia company analyzes its strength, weakness , opportunity, and threat and decisions are made by the top level management or build up automatically as company progressed up. Analysis of the External Environment:In this part company done external analysis i.e. PEST analysis. In market Britannia is a big name so politically he is strong, Chairmen Nasali wadia is engaged in many Indian government and political society. Gap Analysis:Britannia biscuits are the most selling biscuits brand across the globe; Britannia biscuits are healthy, efficient, powerful, standardized, segmented according to categories and cheap in price. So all together customer gets what they need, sometime there is gap between their expectations and companies delivery of product. Framing Alternative Strategies:They have also back up plan, they use those plan according to the market condition. Choice of Strategy:Britannia’s first choice shop they kept Britannia contest to attract customer. They can think differentiation as their alternate choice.
Strategy Implementation Formulation of Plans: The strategy planned by top level management. But the implementation part has done by Business level and function level. The plan that how can they achieved the target. For this they divided the big work into small work. After that they implement small work. Programs and projects:After acquiring the biffest share in the market they are preparing their company for the next step to achieve its goal. Their management is trained by the training program to make them familiar with the Britannia family. Resource Allocation:To develop Britannia Biscuits market Britannia Company is using various resources such as physical resources, financial resources and human resources. Structural Implementation:There is need for organizational structure to implement strategies. Britannia company’s structure is the framework through which an organization operates. Functional Implementation:A manager can also change activity of the salesperson. The manager that is head of the department of the Britannia Company takes all roles and responsibilities to get the work done from others. The decisions taken by them are implemented by all the workers or employees. Behavioural Implementation:Britannia is very much employee oriented organization the marketing departments have given the performance bonus &they have been send to the factory to demonstrate biscuits. Strategy Evaluation Setting of Standards:-
In this level manager set target to his sales person, generally every departments work on target basis. Measurement of Performance:Now in this case manager analyze that whatever the target had given to the sales peoples has done or not. Comparison of Actual Performance with standards:Now they check theactual performance of the sales people and analyze the performance. Finding out deviations:In this case they check why the sales people not ableto achieve the target, whatever the target had given to the sales people wherewas the deviation. Analyzing Deviations: After that the manager and top level management check that deviation. Taking Corrective measures:After that manger tries to solve those deviation, Basically the sales people will again send to the training field review and on job training, this is the method Britannia adopts quite often. The company’s policy is customer satisfaction with less price as well as quality. Target maximum customer and sale of maximum volume. The company wants to reach the product in every segment of customer. also have targeted to urban, rural, city town and villages area of a market. High promotion for selling the product and achieve maximum market share. The company wants to increase the profitability by selling of maximum quantity. The company is facing high competition so the profit margin is low but high turnover. The company’s major competitors are PARLE, SUNFEAST ANMOL and PRIYA GOLD, Britannia volume crossed one lakh ton biscuit in1994
BRANDING (Brand Management): 1. Create Brand Recognition Instead of just advertising on Bats of cricket stars, Britannia should think of getting a single person as their ambassador, someone with whom the youth identify with(Considering that Rahul Dravid is slowly retiring from all forms of International Cricket). It could be a cricket star like the ever green Sachin Tendulkar, but yet again cricket is a risky affair, or someone who will always be in the news for the right or the wrong reasons – like Ranbeer Kapoor from bollywood. 2. Brand Knowledge There should be campaigns in school, in class 6 and 7 (that is when an individual starts forming his/her own perception about brands and available consumer goods). The campaigns could be tied up with Inter school Competitions or something that creates and spreads awareness. For example: National Health Mela in Delhi, which is an annual event and invokes participation from all major schools in Delhi. The event is a national level event and is done to spread awareness about health issues amongst the youngsters from a delicate age when perceptions, beliefs and attitude are still developing. 3. Brand Preference Britannia enjoys almost a 40% share in the biscuit market and also its cake sales for Fiscal 2010 – 11 have grown at 62% (by value)from 1,193,097 to 1,936,793 which shows that the brand does enjoy a deep preference amongst the masses but needs to work on promoting it in a better way in each target segment.
PRODUCT LINE Innovation is key for the success. It is more so, in confectionery items for it is hard to maintain the same curiosity levels for the brands particularly, among the youth. Bangalore based Britannia Industries Ltd., with a portfolio of 35 brands of biscuits known this truth. BRITANNIA MARIE GOLD
Britannia's oldest brand enjoys a heritage that spans the last 50years - and going strong. It is famous for its Britannia and Tiger brands of biscuit, which are popular throughout India. Britannia has an estimated 38% market share. In a market swamped with me-too products and where even the name 'Marie' has become generic, Britannia Marie Gold has maintained its strong hold. Today, the everpopular Marie Gold is synonymous with the 'Tea Time Biscuit'. Its taste, crispiness and lightness make it a must for every tea break. It is the #1 brand in its category by a long shot. "Fifty-Fifty": Britannia initially introduced this sweet and salt biscuit product to capture the Parle's "Krackjack" market share. Launched in 1993, 50-50 because of its "Hatke" taste and youthful appeal quickly emerged as the leader of category with more than one-fourth of market share. It bridges the gap between biscuits & snacks and tries to bring the best of many worlds- Biscuits bhi Snack bhi, Sweet bhi Spicy bhi, Baked bhi Chatapata bhi. The new product being baked and in bag format allows guilt free snacking both in and out of home and thus making housewives "Snack happy".
Britannia's Pride
With the launch of another new product "Tiger" Britannia made a significant shift in its own business arena. The new product "Tiger" was launched in red coloured packs to attract the eyes of the rural consumers as the rural consumers prefer this colour very much. The later variants under the same brand name were having
different colours. But there market capturing capacity were lesser then that of the Red coloured packed Britannia Biscuits. The micro packs @ Rs2 per 15gms were pushed to market to expand the market to untapped areas and also to create new customers by making it affordable even to a BPL consumer also. This has resulted in further increase in Market share and also consumer preference. Britannia Good Day was launched in 1986 in two delectable avatars - Good Day Cashew and Butter. Over the years, new variants were introduced - Good Day Pista Badam in 1989, Good Day Chocochips in 2000 and Good Day Choconut in 2004. This rich cookie enjoys a fan following of consumers across all ages, loyal to the brand promise of a great taste, evident from the visibly abundant ingredients. Good Day is among the fastest growing brands in Britannia's portfolio and it has been the leader in the cookies category ever since its launch. The brand is synonymous with everyday treats that infuse happiness into people's lives. Cakes Britannia entered the cake market in the year 1963 and is the leading player in the market. Britannia Cakes range is divinely scrumptious and has Bar Cakes, Chunk Cakes and Cup Cakes which were launched in 2005. Bar Cakes are available in variants that include Fruit, Butter Sponge, Chocolate, Pineapple, Milk, Vanilla Chocolate and Orange. Apart from being delicious, these snacks are packed with healthy ingredients making them wholesome & delightful. Britannia Dairy Whitener is known for the taste, thickness and creaminess it lends to our foods and drinks. Available in carton packs and pouch refills, Britannia offers you Dairy Whitener for all kinds of servings... the single serve pack, the double cup pack and so on... going up to an entire month's supply of dairy whitener. Britannia NutriChoice provides you with a range of snacks and NutriBix which are inherently healthy yet do not compromise on taste and come with a promise of adding goodness to your lives.
CONSUMER DISTRIBUTION CHANNEL
COMPETITORS MAJOR INDUSTRIY CONTRIBUTORS Britannia’s competitors are Parle product ltd, Priya Though Britannia is the oldest company in the Indian market but the company is facing tuff competition. gold Sunfeast , and Anmol and also have some local companies Britannia’s biggest competitor is parle company and also have some other worldwide company as Bakeman’s 10%,smithkline 08%, Nutrie04%,Kwality 04% Other’s 4% , but Parle has 30% of market share and the Britannia has 40% market share Parle is biggest threats for Britannia.
DATA ANALYSIS AND FINDINGS SWOT ANALYSIS Strength:1. Around 120 years in the industry 2. India’s most trusted brand with strong brand recall 3. Wide range of bakery products like biscuits, rusks, cakes and dairy products like milk, butter, cheese, etc. 4. Strong distribution network ensuring proper availability of the products even in the remotest of areas 5. Major share in biscuits industry 6. Marketing and advertising efficiency 7. Innovative products for health conscious people like oats and porridge, Nutri Choice biscuits for diabetes patients, Vita Marie Gold, etc. 8. Strong presence in rural markets 9. Products for all food and snacks segments Weakness:1. Lower market share in dairy segment
2. Heavy expenditure on advertising and marketing 3. Similar products produced by many companies means high brand switching Opportunity:1. 2. 3. 4.
Increase in purchasing power of people in India Increase its share in the dairy industry Product line extension Expansion in other countries
Threats:1. 2. 3. 4.
Lower price offering competitors Local dairies and bakeries Inflation can cause fall in sales and revenue Rise in cost of raw materials
CONCLUSION After going thick on the thing, now time is to make a complete picture. While making a product a SKU (Stock Keeping Unit) of the shop retailers think about the GMROI (Gross Margin Return On Investment) and they promote the brand which provide them highest. They expect return in the form of profit margin, company schemes, window display and references of the shop. Among these, company schemes make the differences and are the highest source of motivation after profit margin. Retailing demands a constant push from the company. Marketer needs to use advertising and brand building strategies to address the discerning buyers and retail push to in different buyers. The manufacturer should understand consumer behavior because retailers can't help quality and price. It is only up to dealers said it is demand they sell Britannia 42% agree that at retail shop it is brand popularity, which determine the purchase of biscuit. There is a greater need to understand the retailer behavior considering them as a team working for the company may help them to be attached to the company. There should be feeling of belonging to the company in inner of the retailers. Setting values club for retailers so that they may exchange views with the company and help in understanding consumer behavior.
