GGSIPU PROJECT REPORT ON BRITANNIA BISCUITS-A MARKETING STRATEGY SUBMITTED IN PARTIAL FULFILLMENT OF THE REQURITMENTS FOR THE AWARD OF THE DEGREE OF BACHELORS OF BUSINESS ADMINISTRATION (BBA) TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI MENTOR Mrs.VANDANA ARORA
SUBMITTED BY: NITIN KUMAR SOLANKI ENROLLMENT NO. 09814217088 BBA-3
JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL VASANT KUNJ-70 1
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CERTIFICATE
This is to certify that NITIN KUMAR SOLANKI of BBA-III, batch 2008-11, enrolment no. – 0981421708 have undertaken a minor report on “BRITANNIA BISCUITS-MARKETING STRATEGY” and have completed the project under my supervision. I am satisfied with the project report submitted.
(Internal Guide) Mrs. Vandana Arora Lecturer, JIMS
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DECLARATION
I hereby declare that this project work titled “BRITANNIA BISCUITS-MARKETING STRATEGY” is my own work and no part of this project has been submitted for any other degree purpose or published in any other film till date.
NITIN KUMAR SOLANKI ENROLLMENT NO. 0981421708
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I would profusely like to thank my faculty and mentors at JIMS VK especially Mrs. Vandana Arora, for their immense help and support throughout the making of this project. I would also like to thank my parents and friends for their encouragement and help, without which the project would’ve been incomplete.
Thanking you, Nitin Kumar Solanki BBA 3 0981421708
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1.
Executive Summary
2.
Introduction
8-11
3.
Research Methodology
12-16
4.
History
17-24
5.
Market & Marketing Strategy
25-30
6.
Product Line
31-45
7.
Conceptual Framework
46-52
8.
Data Analysis and Findings
53-58
9.
Conclusion
59
10
Suggestions
60
. 11
Bibliography
61
.
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EXECUTIVE SUMMARY After going thick on the things, 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 provides them highest. They expect return in the form of profit margin, company schemes, window display and reference of the shop. Among these, company schemes make the difference and are the highest sources 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 manufacturers to deliver what consumer wants. I need to stress on it because 58% retailers said that it is demand why they sell Britannia. 61% 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 a feeling of belonging to the company in inner of the retailers. This can be done by setting values club for retailers so that they may exchange views with the company and help in understanding consumer behavior.
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Britannia Industries Limited
Type Founded Headquarters
Private 1892 Kolkata and Bangalore; R&D Chennai, India
Number of locations
300 stores (2000)
Area served
India
Key people
Nusli Wadia, Chairman Ms. Vinita Bali, (Managing Director)
Industry
Food
Products
Biscuits Tiger, Britannia, milk
Revenue
▲ Rs 2,200 crore
Owner(s)
DANONE, Kalabakan Investments
Parent
Wadia Group, Associated Biscuits Intl. Holdings
Website
www.britannia.co.in
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. The company we all know as Britannia today. 9
The beginnings might have been humble-the dreams were anything but. By 1910, with the advent of electricity, Britannia mechanized its operations, and in 1921, it became the first company east of the Suez Canal to use imported gas ovens. Britannia's business was flourishing. But, more importantly, Britannia was acquiring a reputation for quality and value. As a result, during the tragic World War II, the Government reposed its trust in Britannia by contracting it to supply large quantities of "service biscuits" to the armed forces. 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. In 1999, the "Britannia Khao, World Cup Jao" promotion further fortified the affinity consumers had with 'Brand Britannia'. Britannia strode into the 21st Century as one of India's biggest brands and the preeminent food brand of the country. It was equally recognized for its innovative approach to products and marketing: the Lagaan Match was voted India's most successful promotional activity of the year 2001 while the delicious Britannia 50-50 Maska-Chaska became India's most successful product launch. In 2002, Britannia's New Business Division formed a joint venture with Fonterra, the world's second largest Dairy Company, and Britannia New Zealand Foods Pvt. Ltd. was born. 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.
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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 populations and a strong management at the helm means Britannia will continue to dream big on its path of innovation and quality. And millions of consumers will savor the results, happily ever after.
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RESEARCH METHODOLOGY Research methodology is considered as the nerve of the project. Without a proper wellorganized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods
Research design: Research design is important primarily because of the increased complexity in the market as well as marketing approaches available to the researchers. In fact, it is the key to the evolution of successful marketing strategies and programmers. It is an important tool to study buyer’s behavior, consumption pattern, brand loyalty, and focus market changes. A research design specifies the methods and procedures for conducting a particular study. According to Kerlinger, “Research Design is a plan, conceptual structure, and strategy of investigation conceived as to obtain answers to research questions and to control variance.
Types of research are: • Descriptive Research The type of research adopted for study is descriptive. Descriptive studies are undertaken in many circumstances when the researches is interested to know the characteristic of certain group such as age, sex, education level, occupation or income. A descriptive study 12
may be necessary in cases when a researcher is interested in knowing the proportion of people in a given population who have in particular manner, making projections of a certain thing, or determining the relationship between two or more variables. The objective of such study is to answer the “who, what, when, where and how” of the subject under investigation. There is a general feeling that descriptive studies are factual and very simple. This is not necessarily true. Descriptive study can be complex, demanding a high degree of scientific skill on part of the researcher. Descriptive studies are well structured. An exploratory study needs to be flexible in its approach, but a descriptive study in contrast tends to be rigid and its approach cannot be changed every now and then. It is therefore necessary, the researcher give sufficient thought to framing research. Questions and deciding the types of data to be collected and the procedure to be used in this purpose. Descriptive studies can be divided into two broad categories: Cross Sectional and Longitudinal Sectional. A cross sectional study is concerned with a sample of elements from a given population. Thus, it may deal with household, dealers, retail stores, or other entities. Data on a number of characteristics from sample elements are collected and analyzed. Cross sectional studies are of two types: Field study and Survey. Although the distinction between them is not clear- cut, there are some practical differences, which need different techniques and skills. Field studies are ex-post-factor scientific inquiries that aim at finding the relations and interrelations among variables in a real setting. Such studies are done in live situations like communities, schools, factories, and organizations. Another type of cross sectional study is survey result, which has been taken by me. A major strength of survey research is its wide scope. Detail information can be obtained from a sample of large population .Besides; it is economical as more information can be collected per unit of cost. In addition, it is obvious that a sample survey needs less time than a census inquiry. Descriptive research includes survey and fact finding enquiries of different kinds of the major purpose. Descriptive research is description of the state of affairs, as it exists at present. The main characteristic of this method is that the researcher 13
has no control over the variables; he can only report what has happened or what is happening. The methods of research utilized in descriptive research are survey methods of all kinds including comparative and co relational methods. The reason for using such needs to be flexible in its approach, but a descriptive study in contrast tends to be rigid and its approach cannot be changed every now and then.
Data collection methods: Data can be obtained from primary or secondary sources. Primary data refer to information obtained by the researcher on the variables of interest for specific purpose of the study. Secondary data refer to information gathered from sources already existing, while discussing literature survey. Some of the examples of secondary data are company records or archives, government publications, industry analysis offered by the media, websites, the Internet, and so on. In some cases, the environment or particular settings and events may themselves be sources of data, as for example, studying the layout of a plant. Considering the research problem and research methods defined, only secondary data was collected in this research.
Secondary Data – Secondary data are indispensible for most organizational research. Secondary data refer to information gathered by someone other than the researcher conducting the current study. Such data can be internal or external to the organization and accessed through the internet or perusal of recorded or published information. Secondary data can be used, among other things, for forecasting sales by constructing models based on past sales figures, and through extrapolation. There are several sources of secondary data, including books and priodicals, Govt. publications of economic indicators, census data, statistical abstracts, and data bases the media, annual reports of companies, etc. Case studies and other archival records sources of secondary data provide a lot of information for research and problem solving. Such data are, as we have seen, mostly qualitative in nature. Also included in secondary sources are schedules maintained for or by key personnel in organizations, the desk calendar or executive, and 14
speeches delivered by them. Much of such internal data, though, could be proprietary and not accessible to all. The advantage of seeking secondary data sources is savings in time and costs of acquiring information. However secondary data as the sole source of information as the drawback of becoming obsolete, and not meeting the specific needs of a particular situation or setting. Hence, it is important to refer to sources that offer current and up to date information. Secondary data in this research was collected through various forms, company’s profile, websites and various literature studies.
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SWOT ANALYSIS OF BRITANNIA
Strength •
Weakness
Fulfill one of our Basic
•
Decreases nutritional value
Requirement among Air , Water ,
•
Increases the cost of food product
Food, Shelter
•
Industry and technology requires
•
Widely accepted in all Generations
•
Easily available in various forms
•
Provide good Instant Remedy for
high investment •
Regular usage of processed food can cause alteration in health
hunger in the form of readymade food •
Preserves the non seasonal food and makes it available all throughout the year
Opportunities
Threats
•
Increase economy of India
•
Many companies are result oriented
•
Generate employment opportunity
•
Increase in pollution
•
Good quality of Goods
•
Sometimes provide poor quality of
•
Provide competition to foreign
product for more profit
companies
•
Lack of technology
•
Improve living standard
•
Unable to utilize all the resources
•
Provide goods to nation at cheaper
efficiently
rate •
Inflow of foreign reserve and funds for the govt.(taxes)
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HISTORY OF BRITANNIA •
1892 o The Genesis - Britannia established with an investment of Rs. 295 in Kolkata
•
1910 o Advent of electricity sees operations mechanized
•
1921 o 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 o Britannia Biscuit Company takes over biscuit distribution from Parry's
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1978 o Public issue - Indian shareholding crosses 60%
•
1979 o Re-christened Britannia Industries Ltd. (BIL)
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1983 o Sales cross Rs.100 crore
•
1989 o The Executive Office relocated to Bangalore
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1992 o BIL celebrates its Platinum Jubilee
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•
1993 o Wadia Group acquires stake in ABIL, UK and becomes an equal partner with Grouped DANONE in BIL
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1994 o Volumes cross 1,00,000 tons of biscuits
•
1997 o Re-birth - new corporate identity 'Eat Healthy, Think Better' leads to new mission: 'Make every third Indian a Britannia consumer' o BIL enters the dairy products market
•
1999 o "Britannia Khao World Cup Jao" - a major success! Profit up by 37%
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2000 o Forbes Global Ranking - Britannia among Top 300 small companies
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2001 o BIL ranked one of India's biggest brands o 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
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2002 o BIL launches joint venture with Fonterra, the world's second largest dairy company o 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 WordStar, Asia star and India star award for packaging
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•
2003 o 'Treat Duet'- most successful launch of the year o Britannia Khao World Cup Jao rocks the consumer lives yet again
•
2004 o Britannia accorded the status of being a 'Super brand' o Volumes cross 3,00,000 tons of biscuits o Good Day adds a new variant - Choconut - in its range
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2005 o Re-birth of Tiger - 'Swasth Khao, Tiger Ban Jao' becomes the popular chant! o Britannia launched 'Greetings' range of premium assorted gift packs o The new plant in Uttaranchal, commissioned ahead of schedule. o The launch of yet another exciting snacking option - Britannia 50-50 Pepper Chakkar
•
2007 o Britannia industries formed a joint venture with the Khimji Ramdas Group and acquired a 70 percent beneficial state in the Dubai-based Strategic Foods International Co. LLC and 65.4% in the Oman-based Al Sallan Food Industries Co. SAOG.
•
2008 o Britannia launched Iron fortified 'Tiger Banana' biscuits, 'Good Day Classic Cookies', Low Fat Dahi and renovated 'MarieGold'.
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Founders Dr. N Balasubramanian Dr K.B Chandrashekhar Mr. Arjun Malhotra Prof. Jagdish Sheth Dr. Sridhar Mitta
BOARD OF DIRECTORS Name
Designation
Mr. Nusli Neville Wadia
Chairman
Ms. Vinita Bali
Managing Director
Mr. A.K.Hirjee
Director
Dr. Ajai Puri
Director
Mr. Avijit Deb
Director
Mr. Jeh N Wadia
Director
Mr. Keki Dadiseth
Director
Mr. Nimesh N Kampani
Director
Mr. Pratap Khanna
Director
Mr. S.S.Kelkar
Director
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HISTORY OF BISCUIT Sweet or salty. Soft or crunchy. Simple or exotic. Everybody loves munching on biscuits, but do they know how biscuits began? The history of biscuits can be traced back to a recipe created by the Roman chef Apicius, in which "a thick paste of fine wheat flour was boiled and spread out on a plate. When it had dried and hardened it was cut up and then fried until crisp, then served with honey and pepper." The word 'Biscuit' is derived from the Latin words 'Bis' (meaning 'twice') and 'Coctus' (meaning cooked or baked). The word 'Biscotti' is also the generic term for cookies in Italian. Back then, biscuits were unleavened, hard and thin wafers which, because of their low water content, were ideal food to store. As people started to explore the globe, biscuits became the ideal travelling food since they stayed fresh for long periods. The seafaring age, thus, witnessed the boom of biscuits when these were sealed in airtight containers to last for months at a time. Hard track biscuits (earliest version of the biscotti and present-day crackers) were part of the staple diet of English and American sailors for many centuries. In fact, the countries which led this seafaring charge, such as those in Western Europe, are the ones where biscuits are most popular even today. Biscotti is said to have been a favorite of Christopher Columbus who discovered America! Making good biscuits is quite an art, and history bears testimony to that. During the 17th and 18th Centuries in Europe, baking was a carefully controlled profession, managed through a series of 'guilds' or professional associations. To become a baker, one had to complete years of apprenticeship - working through the ranks of apprentice, journeyman, and finally master baker. Not only this, the amount and quality of biscuits baked were also carefully monitored.
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The English, Scotch and Dutch immigrants originally brought the first cookies to the United States and they were called teacakes. They were often flavored with nothing more than the finest butter, sometimes with the addition of a few drops of rose water. Cookies in America were also called by such names as "jumbles", "plunkets" and "cry babies". As technology improved during the Industrial Revolution in the 19th century, the price of sugar and flour dropped. Chemical leavening agents, such as baking soda, became available and a profusion of cookie recipes occurred. This led to the development of manufactured cookies. Interestingly, as time has passed and despite more varieties becoming available, the essential ingredients of biscuits haven't changed - like 'soft' wheat flour (which contains less protein than the flour used to bake bread) sugar, and fats, such as butter and oil. Today, though they are known by different names the world over, people agree on one thing - nothing beats the biscuit! Some
interesting
facts
on
the
origin
of
other
forms
of
biscuits:
The recipe for oval shaped cookies (that are also known as boudoir biscuits, sponge biscuits, sponge fingers, Naples biscuits and Savoy biscuits) has changed little in 900 years and dates back to the house of Savoy in the 11th century France. Peter the Great of Russia seems to have enjoyed an oval-shaped cookie called "lady fingers" when visiting Louis XV of France. The macaroon - a small round cookie with crisp crust and a soft interior - seems to have originated in an Italian monastery in 1792 during the French Revolution. SPRING-uhr-lee, have been traditional Christmas cookies in Austria and Bavaria for centuries. They are made from a simple egg, flour and sugar dough and are usually rectangular in shape. These cookies are made with a leavening agent called ammonium carbonate and baking ammonia.
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The inspiration for fortune cookies dates back to the 12th and 13th Centuries, when Chinese soldiers slipped rice paper messages into moon cakes to help co-ordinate their defense against Mongolian invaders.
BRITANNIA IN OVERSEAS Britannia in the Middle-East In March 2007, Britannia Industries Limited formed a Joint Venture with the Khimji Ramdas Group, one of the largest and the most respected business conglomerates in the Middle East. Britannia and its Associates have acquired a significant stake in Dubai based Strategic Food International Co. LLC and Oman based Al Sallan Food Industries Co SAOG. The two companies are key regional players in the biscuits, wafers and cookies segment in the GCC markets and export their products across the world. Strategic Food International Co. LLC (SFIC) is one of the largest biscuit and wafer manufacturing companies in the Middle East. An ISO and HACCP certified company; SFIC is also a proud winner of the Dubai Quality Appreciation Certificate. It offers a wide spectrum of products under the brand Nutro, which is a leading biscuit brand in the Middle East. Al Sallan Food Industries Co is one of the foremost companies for the production of cookies, rolls and chocolates. The products are well known under the brand name of Baker's Pride. Britannia in Sri Lanka 29th August 2008 goes down in the history of our company as the day, when Britannia started manufacturing and marketing its products in Sri Lanka. Apart from tapping new markets and going international, our company will afford many more families and individuals a chance to enjoy healthy, nutritious and delightful products. Even as we navigate foreign territories, we affirm our purpose, values, vision and goals in Sri Lanka-
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to help people enjoy life, through healthy snacking, and make this accessible to all people anywhere, everyday… Products manufactured in Sri Lanka include the most popular Milk Bikis, Milk Cream Smileys, Vita Marie Gold, Creams and Cookies.
ORIGIN OF EAT HEALTHY THINK BETTER Britannia -the 'biscuit' leader with a history-has withstood the tests of time. Part of the reason for its success has been its ability to resonate with the changes in consumer needsneeds that have varied significantly across its 100+ year epoch. With consumer democracy reaching new levels, the one common thread to emerge in recent times has been the shift in lifestyles and a corresponding awareness of health. People are increasingly becoming conscious of dietary care and its correlation to wellness and matching the new pace to their lives with improved nutritional and dietary habits. This new awareness has seen consumers seeking foods that complement their lifestyles while offering convenience, variety and economy, over and above health and nutrition. Britannia saw the writing on the wall. Its "Swasth Khao Tan Man Jagao" (Eat Healthy, Think Better) re-position directly addressed this new trend by promising the new generation a healthy and nutritious alternative - that was also delightful and tasty. Thus, the new logo was born, encapsulating the core essence of Britannia - healthy, nutritious, and optimistic - and combining it with a delightful product range to offer variety and choice to consumers.
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MARKET & MARKETING STRATEGY Marketing Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others or otherwise it is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals. Marketing Strategy Marketing strategy is a set of objectives, policies and rules that leads the company's marketing efforts. It is the marketing approach to accomplish the bread objective of the marketing approach to accomplish the bread objective of the marketing plan. The various process of marketing strategy is given below. 1. Selecting largest markets segmentation 2. Positioning 3. Product 4. Price 5. Place 6. Promotion 7. Research and development 8. Marketing research
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1. Market segmentation and selecting target market It is an effort to increase a company's precision marketing. The starting point of any segmentation discussion is mass marketing. In mass marketing, the seller engaged in the mass production, mass distribution and mass promotion of one product for all buyers. Market segment consists of a large identifiable group within a market with similar wants, purchasing power geographical location, buying attitudes or buying habits. It is an approach midway between mass marketing and individual marketing. Through this the choice of distribution channels and communication channels become much easier. The researchers try to form segments by looking at consumer characteristics; geographic, demographic, and psychographic. After segmenting the market then target market selected. 2. Positioning: - The positioning is a creative exercise down with an existing product. The well known products generally hold a distinctive position in consumer's minds. The positioning requires that every tangible aspect of product, price, place and promotion must support the chosen positioning strategy. Company should develop a unique selling proposition (USP) for each brand and stick to it, PPL consistently promotes it’s DAP fertilizer by Higher yield at lower cost. As companies increase the number of claims for their brand, they risk disbelief and a loss of clear positioning. In general a company must avoid four major positioning errors. Those are under positioning over positioning, confused positioning and doubtful positioning. 3. Product: - A product is any offering that can satisfy a need or want. The major types of basic offerings are goods, services, experiences, events, places, properties, organizations, information and ideas. The company gives more importance in quality, packaging, services etc. to satisfy the customers. The product has its life cycle. The product strategies are modified in different stages of product life cycle.
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4. Price: - It is the most important aspect in company's point of view. Price of the product will be decided by the company according to the competitor's price. 5. Place: - This plays a major role in the entire marketing system. The company emphasis on its distribution network. Proper distribution network gives proper availability of the product. Getting the right product to the right place at the right time involves the distribution system. Distribution is the process of moving goods and services to the places where they are wanted. Channel Levels: The channel of distribution used by Britannia is: Intensive Distribution: As biscuits need to reach the consumer at their nearest locations this type of distribution channel is used. This type of distribution helps when for products that are categorized by low involvement of the customer and where customer looks for location convenience.
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6. Promotion: - Promotion is the one of the major aspects in marketing strategies. By adopting various promotional activities the company create strong brand image. It also helps in increasing the brand awareness. It includes advertising, sales promotions and public relations etc. Advertising: Britannia works in close partnership to promote its biscuits with retailers. Promotion costs are shared with retailers. The more retailers sell - the more Britannia is able to help them. Britannia launches products that offer the company good returns, supporting these through brand building and leveraging on its nationwide supply chain. Brand building is an integral part of Britannia’s marketing philosophy with continued promotions for its various brands creating loyal customers in the process. Good Day, "Richness is only one functional facet of Good Day. But there is also a large emotional facet — that of spreading happiness. This became the plank on which Good Day began to be advertised. Also with traditional notions of health changing, rich foods are not necessarily looked at as being unhealthy. "Good Day is full of nuts and is rich but it is also good for health. So, they created the Swasth kao, tan man jagao (Eat healthy, energize body and mind) campaign."
Sales promotion: “Eat Britannia, Go for World Cup" was the theme adopted in 1999 .People bought the biscuit packs and searched for the lucky scratch for flying to England to see world Cup Cricket match. The sales bounced 37% high on account of this strategy. The scheme came alive again during the world Cup Match in 2002-2003 in South Africa. “Lagaan - the super hit movie " brought fame to Britannia Biscuits also as 40000 buyers of Britannia Biscuit packs were invited to see and a small lucky group to play the game with the movie Stars of Lagan. What a novel way to promote a product - a perception in correct proportion indeed!! 28
Now, recently promotional strategies are "Jodi Banao" Offer & winning ideas of the “Monmatano Britannia pran bhorano sharodiya” contest like create a special flower arrangement for dashmi. Get all the women in your street together and make a huge, elaborate face of durga with flowers. Publicity: Britannia brand is advertised through hoardings on cricket grounds, on highways, through image building exercises like donations etc.
7. Research and Development: - after testing, the new product manager must develop a preliminary marketing strategy plan for introducing the new product in to the market. The plan consists of three parts. The first part describes the target market's size, structure and behavior. The second part outlines the planned price, distribution strategy and marketing budget for the first year. The third part of the development describes the long run sales and profit goals and marketing mix strategy over time.
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MARKETING MIX Product
Price
Promotion
Place
Product variety
List price
Sales promotion
Channels
Quality
Discounts
Advertising
Coverage
Design
Allowances
Sales forces
Assortments
Features
Payment period
Public relation
Locations
Brand name
Credit terms
Direct marketing
Inventory
Packaging
Transport
Sizes Services Warranties returns
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PRODUCT LINE TREAT
As a move to consolidate all the individual Cream Treat offerings under a single umbrella, Britannia launched Treat in 2002. Treat has a range of tasty delights for all kids with yummy creamy treasures within the biscuit shells. The kids have always relished unraveling the irresistibly delicious creams hidden inside the biscuit Britannia Treat offers a wide variety of flavors, such as the Elaichi, the Fruit Flavored Creams such as Orange, Pineapple, Mango, and Strawberry, the Jam Filled Centers under the Jim Jam range, and the Duet Range (biscuits with two flavors of cream between three layers of biscuit) comprising Strawberry Vanilla and Duet Strawberry Chocolate. Britannia Treat has now launched yet another mouth watering delight under its umbrella. The delicious Fruit Rollz take the Treat brand beyond the cream biscuits and provides yet another lip smacking delight to its consumers! Fruit Rollz are soft rolls filled with the goodness of real fruits, and provide a healthy yet scrumptious treat to our 'loveable devils' Treat also introduced its naughty and adorable brand mascot FUNTOOSH whose primary occupation is mischief! FUNTOOSH is the guy who will pull off any trick to make sure he gets to eat his Britannia Treat! For all you kids, who have relished the yummy treasures of Britannia Treat in exciting flavors, look out for yet another reason to celebrate! 31
Britannia Treat launches a new and exciting combination of chocolate and caramel in a single bar - TREAT CHOCO GELO. This unique and never before product is guaranteed to double the masti and double the fun that you have with Treat. Treat Choco Gelo has been launched nationally in August, 2007 and is available at an attractive price of just Rs.5/So go ahead, open this delicious pack, indulge yourself with Treat Choco Gelo and enjoy Yummy Chocolate and Gooey Caramel for "Double Masti ka Double Dose"
TIGER
Tiger, launched in 1997, became the largest brand in Britannia's portfolio in the very first year of its launch and continues to be so till today. Tiger has grown from strength to strength and the re-invigoration in June 2005 and more recently, in Apr 2008 has further helped bolster its growth in the highly competitive glucose biscuit category. Tiger is a Glucose biscuit, which comes with the added goodness of wheat and milk. It is for modern mothers who play an enabling role for their children to compete in today's world and thus want the best. Now Tiger Glucose has been fortified with "Iron Zor" with an attempt towards addressing the Iron Deficiency crisis the children of India face. Over the years, Tiger has become the mass-market face of Britannia symbolizing fun and energy in both urban and rural India, and transcending glucose biscuits. Tiger Coconut: Delicious Coconut Flavored Energy Biscuits, launched in 2001 32
Tiger Creams: Was introduced in 2002 at just Rs 5 per pack. Tiger Cream is now available in Orange, Elaichi, Chocolate, Pineapple, Strawberry and Butterscotch flavors, and promises to bring more fun and more energy to children across the country. Chota Tiger: Is an extension of brand Tiger launched nationally in May, 2007. It is mini sized poppable glucose biscuit with colored sugar sprinkling. It comes in two variants: Milk Sparkies and Choco Sparkies Tiger Banana: Britannia is committed to help secure every child's right to Growth & Development through good food every day. Purposefully taking forward the credo of 'Eat Healthy, Think Better ', we have launched a new variant under our power brand TIGER - TIGER BANANA - power packed with IRON ZOR & and with the delightful taste of banana. IRON ZOR helps make mind sharper and body stronger. An Rs.4 pack has as much IRON ZOR as that in 1 kg of Banana. R&D in Britannia has spent considerable time to develop this nutritious and delightful snack for children. Britannia Tiger Banana packed with IRON ZOR and goodness of Banana is accessible to all, being available in convenient packs priced at Rs.2, Rs.4 and Rs.10.
33
GOOD DAY
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 Coconut in 2004. This rich biscuit 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 amongst the fastest growing brands in Britannia's portfolio and is today the market leader with almost 2/3 share of the market. The brand is synonymous with everyday treats that infuse happiness into people's daily lives. After two decades of magnificent success; it was time to give the nation yet another reason to have a good day. Abundance, goodness, indulgence and now unrestrained joy that is the message of this new campaign. The new TT ad is the uncontrollable expression of the ticket collector's happiness and joy that is stimulated by consumption of the cookie that spreads cheer amongst the people around him creating an atmosphere of shared joy that's unorchestrated and straight from the heart. The celebration was taken to the IPL as Good day cheered along with a million cricket fans in the stadiums, each screaming and proclaiming "Ho Gaya re Good Day". The dazzling brilliance of this Endeavour, the contagious rhythm needs to be lived and spread through the nation, making 'Iska toh ho Gaya Re Good Day' a part of the common lingo and a way of life. Good Day truly believes laughter and happiness are infectious, it transcends race, caste creed unifying humanity in an inclusive emotion. 34
The brand perseveres to infuse cheer, hearten the nation and enliven lives. With its rightful place on the front page of The Times of India, Good Day gifts the nation a priceless treasure, that of spreading JOY!
BOURBON
Thick, rich and delicious chocolate packed between two crunchy chocolate biscuits, topped with sugar crystals - presenting, the original Bourbon, from the house of Britannia. India's first and favorite Bourbon's sweet adventure began in 1955. Since then, Bourbon lovers across the country have been caught opening this chocolate couplet, licking the cream, and nibbling at the melt-in-your-mouth biscuit, bit by bit. Some have been witnessed chomping it whole, at one go. Some have been noted to alternate it with sips of coffee; others team it with lots of gossip and gupshup, while a few have been observed enjoying
it
with
a
book.
And some have been seen reluctantly sharing their Bourbon. Whatever the occasion, wherever the hangout, Bourbon makes for great company. You can grab your very own Nano Pack or a Pocket Pack. The Hangout Pack is just right for chilling with friends. Take along a Party Pack for... yes, a party! And the Gift Pack will surely
win
you
a
few
35
brownie
points!
50 -50
With a brand name like 50-50, can the product be anything but fun? Launched in 1993, 50-50 belongs to the family of crackers and is considered the "very very tasty tasty" snack. Britannia 50-50 is the leader in its category with more than one-third of market share. The versatile and youthful brand constantly aims to provide a novel and exciting taste experience to the consumer. As a result, in 2001, the delicious Maska Chaska was launched as a variant of the original brand and became an instant success.
36
MARIE GOLD
Britannia's oldest brand enjoys a heritage that spans the last 50 years - and going strong. In a market swamped with me-too products and where even the name 'Marie' has become generic, Britannia Marie Gold has maintained its stronghold. Today, the ever-popular 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.
MILK BIKIS
Kids may dislike drinking milk, but they love Britannia Milk Bikis! Milk Bikis has been trusted by mothers as a source of growth energy of milk and their loyalty to the brand has made it an integral part of their children's nutrition regimen. In 1996, Milk Bikis launched a variant called Milk Cream. These round biscuits come with smiley faces and are full of milk cream that makes them very popular with children. Milk Cream also promoted the idea of 'eating milk' in a yummy way, which makes mothers happy as well.
37
To keep pace with the demands of the new generation and to bring milk nutrition to the masses in a delightful form, Milk Bikis, went one step further in the last quarter of 2006 in providing not just energy but ‘developmental fuel’ for children. With a unique and attractive honeycomb design and an enhanced product experience, the new biscuit is now fortified with SMART NUTRIENTS – 4 vital vitamins, iron and iodine, proven to aid mental and physical development in growing kids. NUTRICHOICE
In continuation of the promise of "Swasth Khao, Tan Man Jagao," Britannia introduced NutriChoice range of healthy biscuits in 1998. The brand is targeted towards overall health and wellness for adults. The range has for long comprised of three popular variants, namely NutriChoice Thin Arrowroot, NutriChoice Cream Cracker and NutriChoice Digestive. 38
NutriChoice Thin Arrowroot - An ageless classic Extremely popular in East India for over 4 decades (where it is affectionately referred to as Britannia Theen), this brand contains the benefits of arrowroot known to aid digestion and remove harmful toxins from the body. Prior to 1998 it was being marketed as Britannia Jacob's Thin. NutriChoice Cream Cracker - As nature would have wanted it to be Ask any biscuit manufacturer and they will tell you how difficult it is to make this biscuit, especially with next to nothing sugar, with NO added colors and flavorings for taste. It is this neutral taste that makes it an ideal choice to be consumed with hot beverages, dips, chutneys, and accompaniments. NutriChoice Digestive - Delightfully tasty and wholesome Made with 50% whole-wheat and packed with added fiber (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 pack. In 2007, NutriChoice SugarOut was launched. 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. It 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 Lifetime, Chocolate Cream, and Orange Cream, targeted towards all health sensitive people. It is also relevant for consumers with sugar- related ailments. We are confident that you will be pleasantly surprised with the great tasting and healthy range of NutriChoice. Try one and you'll know that you've made one smart choice.
39
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 missing that extra hour of sleep over early morning exercise, or eating unappetizing foods over that extra oil-dripping 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 Fiber, 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 Classic Lite Cracker - NutriChoice Crackers have for long been the healthy choice of the discerning consumer. The popular NutriChoice Cream Cracker has been improved to make it crispier and tastier and been rechristened as Nutrichoice Classic Lite Cracker. NutriChoice Nature Spice Cracker - Now there is more choice for the discerning cracker consumer. NutriChoice Nature Spice Crackers are delicately sprinkled with the goodness of Ajwain and Jeera. Ajwain s benefit with good digestion is legendary, while each one of us relishes the taste of Jeera. In addition 0% Sugar is added to these biscuits which deliver the health promise that Nutrichoice is known for. 40
NutriChoice Crackers are made by using a special FRESH BAKE TECHNOLOGY, which ensures that they are completely free from Cholesterol, harmful Transfats, artificial preservatives, colors and flavors. They come in an international metalized packaging, which ensures that the biscuits retain maximum freshness till the time they are opened.
TIME PASS
Before Time pass, Britannia's offering in the salted cracker category was Snacks. Launched in 1999, Snacks was promoted as a tastier base for toppings through edgy advertising. Then in late 2000, supported by aggressive advertising that featured the brand as a perfect partner for time pass moments, Britannia Time pass was launched. The brand quickly became a leader in Britannia's portfolio and, consequently, Snacks was revamped as a lighter product and renamed Britannia Time pass Classic Salted. To further the franchise of the Time pass brand, a variant 'Nimkee' was introduced in the Eastern market in April 2003, and then taken nationwide after a favorable response. Judging by its history, the resounding success of Britannia Time pass will continue to grow.
41
LITTLE HEARTS
Little Hearts was launched in 1993 and targeted the growing youth segment. A completely unique product, it was the first time biscuits were retailed in pouch packs like potato wafers. The launch message introduced a special taste experience that made the unlikeliest characters - like Dracula and Frankenstein - melt. In 1997, the 'Direct Dil Se' campaign encouraged youngsters to openly express their feelings. And in 2003, two variants called Little Hearts Chocolate and Little Hearts Sesame were rolled out with a campaign "Dil sabka actually sweet hai". With Little Hearts, Britannia has tasted the sweet taste of success.
NICE TIME
Britannia Nice Time was the pioneer of sugar sprinkled biscuits in India. This unique product managed to create such a strong consumer pull that soon there was a rush of 42
pretender products in the market, clearly indicative of the success of the concept. Today, Nice Time has a fan base spread across India, and, particularly, East India, where its consumers have grown up with the brand. Especially popular amongst children, Britannia Nice Time has managed to create a loyal franchise for itself and is a strong brand loved by people of all ages.
DAIRY FRESH Till 1958, there were no breads in the organized sector and bread consumption was a habit typified by the British. Then, a mechanized bread unit was set up in Delhi with the name "Delbis" which produced sliced bread and packed it under the Britannia name. Thus, Britannia was not only the pioneer, but also inculcated in the people of Delhi the habit of eating white sliced bread. The Mumbai unit came up in 1963, and there again Britannia was the first branded bread in the city. From a company offering 2 packs - the 400gm and the 800gm plain white sliced bread - Britannia has evolved into a company offering 22 packs, catering to a variety of taste and price segments in the bread consuming market. The last couple of years also saw the introduction of Whole Wheat Bread as a part of "Eat Healthy, Think Better" credo. Cakes Britannia entered the cake market in the year 1963 and is the top player in the market. Britannia Cakes range is divinely scrumptious and has both Bar 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 cup cakes come in vanilla and orange flavors. Rusks Britannia launched its rusks in the year 2005. In a Market full of unbranded players, 43
Britannia rusks have stood head and shoulders above the rest in terms of sheer quality .They are made from the finest ingredients and baked with care as they are twice as crisper as and tastier than ordinary rusks. The communication for this mouthwatering offering is aptly “Enliven your spirits with Britannia rusks GIFTS Britannia brings you 'Shubh Kaamnayein' converting little moments of the festive season into delightful memories The magical time of year, is round the corner. Bring in this festive season rejoicing, and adding the glitter and glamour of celebration, with Britannia 'Shubh Kaamnayein' a range of biscuits, premium cookies and cakes. The special edition for 2008 'Britannia Premium Assorted Cookies' is all about surprises, the enchanting discovery of new tastes and innovative packaging. It offers you absolutely delightful cookies made with rich ingredients and flavors such as Cranberry, Butter Scotch, Honey Raisin, Choc Chips, Coffee Almond, Cashew, Honey and Almond. The much loved 'Britannia Classic Hampers' contain an assortment of Britannia's popular brands like Good Day, Treat Jim Jam, Bourbon and Little Hearts. The innovatively conceptualized packaging, of ingenious tray packs and collectible tin boxes, uses calligraphy, brush strokes of colors and clever use of symbols, beautifully fusing tradition and art for the festive season. It brings alive a commonality of joy and celebration. This range promises to pamper your senses and emotions. We understand that the wondrous occasion of light and radiance is incomplete without the presence of near and dear ones. Britannia 'Shubh Kaamnayein' joins you as you express your love and good wishes, to the ones who make life special for you. Britannia 'Shubh Kaamnayein' is designed to add joy to moments, transforming them into delightful memories. We have judiciously packaged and priced this entire range to make
44
it available to everyone who wants to share good wishes. As part of our 90th year festivity we present Britannia Shubh Kaamnayein, to add 'Zindagi mein life'.
Rusk Milk Rusk (round) 70/- (available in 200gms, 400gms) Milk Rusk (oval) 70/- (available in 200gms, 400gms) Saunf Rusk70/- (available in 200gms, 400gms) Jeera Rusk70/- (available in 200gms, 400gms) Cardamom Rusk75/- (available in 200gms, 400gms)
Cookies Flower Biscuits 70/- (available in 250gms, 400gms) Coconut Biscuits 75/-(available in 250gms, 400gms) Jam Centre 75/-(available in 250gms, 400gms) Custard 75/-(available in 250gms, 400gms) Chocolate Marble 75/-(available in 250gms, 400gms) Orange 75/-(available in 250gms, 400gms) Coconut Macroon 95/-(available in 200gms, 350gms) Chocolate Walnut 120/-(available in 250gms, 400gms) Pure Chocolate Cashew 120/-(available in 250gms, 400gms) Butter Pista 130/-(available in 250gms, 400gms) Almond Cookies 130/-(available in 250gms, 400gms)
45
CONCEPTUAL FRAMEWORK The conceptual framework of this project essentially focuses on the consumer buying behavioral analysis. 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 sub-culture 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.
46
(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.
47
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.
48
THE INDUSTRY Biscuits derive its name from a French word meaning twice backed bread; Biscuits in general have a good shelf life, which is higher than all other snack items available in the market. India is the second largest producer of biscuits in the world after the U.S.A. but still the per capita consumption is only 2.3 kg/year of developed countries. As per the latest survey done by N.C.A.E.R., 49 biscuits are consumed in rural areas. The penetration of biscuits into households stands at an average of 83.2% with the rural penetration at 77% and urban penetration at 88%. Biscuits are reserved for the small scale sector but there are strong possibilities of the industry being deserved in line with the government policy of liberalization. The net effect thus would be greater choice for the consumer as well as a check on the costs. The country production of the biscuits during 2004-05 was 18.6 Lac tons of which 1/2 were manufactured by the organized sector. The industry turnover was 5322.7 Crores of which organized sector contributed 2519.3 crores. Britannia, makers of Britannia biscuits, doubled capacity from 25 tons a day to 50 tones and plans to be a national brand soon. In an aggressive mode, the North dominated biscuit player has increased its ad budget to Rs. 5 crore this year from Rs. 3 crore last year. Britannia has also recently invested about Rs. 5 crore in the modernization and expansion of its production and packing its production capacity of 40 tons per day to 100 tons per day by next year. The aim: to take the current turnover of Rs. 50 crore to Rs. 100 crore by the year. The low priced brand claims to have a 15 per cent market share in the North and is aggressively eyeing a bigger bite of the Rs. 2,500 crore biscuit industries. The brand plans to gain a 40 per cent market share in the North by the year of. The company's strategy has been to attract new consumer segments and widen its consumer base with its well packaged low priced offerings. Britannia's success has also come from its formidable. 49
It gives me great pleasure to introduce the Summer Training Report. It is based on the survey conducted in East Delhi region on Biscuit industry. The applicability of various branding strategies play crucial role in marketing in product. The applicability has grown due to the liberalization, competition and technological changes taking place in corporate world. In this project the various branding strategies adopted by the company has been studied and compared on the basis of current market scenario. It gives the idea about the market share enjoyed by the different companies in the Biscuit Industry. It provides the adequate coverage of many issues related to biscuit industry. The objective of this report is to give the market share of Britannia biscuits in the Indian capital (New Delhi). It has been made possible by knowing the consumer's behavior and by studying the patterns adopted by the retailers. It gives us very precise view about the existing demand of Britannia biscuits and demand of their products as compared to other competitors. It also highlights the changing market trends and consumer preferences, why they have shifted from finally pack to pouch pack. The annual growth rate of the industry is about 12.5%. However, the growth of cream biscuits, assorted or special variety is the range of 3040%. The organized sector consists of large, medium and small scale biscuit manufacturers who produce packed biscuits. The major players in this sector are Britannia, Bakeman’s, and Parle, etc. the unorganized sector comprises of small bakery units, cottage and household type manufacturing plants. These units distribute their biscuits in the surrounding vicinity of their manufacturing locations of say 20-50 kms. The country production of biscuits during 2005-06 is estimated to be about 19.5 lack tons. Out of which 1/2 again is expected from unorganized sector.
50
COMPETITORS
Generally all organizations have competitors in the market. A particular organization always comprises with other same business and according to market share we clarify the brand of product is giving more challenge to my product. I found many products which can be compared with Britannia Biscuit. As a conclusion I found that particularly in my provided area Britannia is really doing well and its performance is on surprising level. Lost market share to ITC Foods and has struggled to keep pace with Parle in glucose biscuits. Pepsi, Kraft, DANONE could be formidable competitors. Britannia seeks to build market share through expanded product portfolio, acquisitions, JVs and thrust on rural consumer. In my provided area the share of the market is as follows. BRITANNIA
34.8%
PARLE-G
31.9%
ITC
8.6%
SURYA FOODS
8%
ANMOL BAKERS
4.2%
OTHERS
15.6%
When we compared with other businesses then we follow the quality, price, distribution system, promotional strategy etc. of the competitors Britannia in this area is doing well. So this is the comparison with other biscuits brands. According to our findings we found that BRITANNIA is the market leader followed by BRITANNIA biscuits. These two biscuits company the lion's share in the 2,200 crore biscuits industry. .
51
MARKET POTENTIAL Market potential of the BRITANNIA is much positive in competitive era and will sure cover the maximum market share of biscuit product. Potentiality of any product depends upon the futuristic performance of the product. It depends that how much retailers have potentiality to be permanent seller of BRITANNIA. For great potentiality it is necessary to improve those factors which are going to affect retailers. In my study I found some factors which can help to cover great potentiality. These factors are following: •
Scheme delivery should in perfect determining time.
•
Some places distributors not able to cover his particular area. That should be improved.
•
Scheme facility should be regular as much as possible.
•
Small pack also should be in the market.
•
Always collect the views of retailers. It gives psychological effect on the retailers about careness by manufacturing company.
These factors are very important for the organization. If company is able to improve these all factors then definitely its market share will more increase. Retailers will take more interest to sell Britannia biscuit and customer will also enjoy for it. So potentiality is very high to Britannia biscuit in positive direction.
52
DATA ANALYSIS AND FINDINGS Annual Performance 2007-08: For the year ended 31st March 2008, the Company achieved a sales growth of 17.5% on an expanded base arising from 27.5% growth in the previous year. Net Profit of the Company increased 77.5 % to Rs 1,910 Mn compared with Rs 1,076 Mn in 2006-07. Operating Margin increased by 307 basis points to 7.5%.
The Company witnessed all round growth in key categories with Biscuits recording sales of Rs. 23,299 Mn. Bread, Cake and Rusk business crossed the Rs. 2,700 Mn mark during 2007-08.
This
business
has
doubled
in
two
years.
In an intensely competitive biscuit environment, all ³Power Brands² of the Company recorded double digit growth, with Tiger and Good Day growing in excess of 20%. The Company¹s innovation forays have successfully addressed new benefit clusters and NutriChoice Digestive has claimed its position in the health and vitality space. The Company continues to maintain its leadership edge in 6 out of 7 key product segments, the
only
exception
being
Glucose.
The business continued to face inflationary pressure in key raw materials such as wheat flour, refined palm oil, skimmed milk powder and other dairy products, as well as energy 53
costs. These were more than offset on the cost side through operational and procurement efficiencies, productivity improvements, cost reduction programs and on the revenue side through improved product mix and higher realization, aided by strong consumer off take.
Exceptional items for the year include Rs 130.5 Mn towards amortization of VRS costs. Earnings per Share are Rs. 80 compared with Rs.45.1 last year.
54
SIGNIFICANT RATIOS 2007-08
2006-07
Measures of Investment Return on equity
Profit after tax Shareholders’ funds
%
26.1
18.3
Book value per share
Shareholders' funds Number of equity shares
Rs.
306.6
246.6
Dividend cover
Earnings per share Dividend (plus tax) per share
times
3.8
2.6
%
9.2
5.7
times
56.5
81.0
8.7
10.8
Measures of Performance
Profit margin
Profit before tax & exceptional item Net Sales + Other Income
Debtors turnover
Gross Sales Debtors + Bills receivable
Stock turnover
Gross Sales Stock
times
Measures of Financial Status 55
Debt ratio
Borrowed capital Shareholders’ funds
%
14.5
0.8
Current ratio
Current assets Current liabilities
times
1.6
1.2
Tax ratio
Tax provision Profit before tax
%
17.8
9.1
56
57
TEN YEAR FINANCIAL STATISTICS : 1999 - 2008 Rs. million As at / Year ended 31st March
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Assets employed Fixed assets less Depreciation & Amortization
1,353 1,306 1,588 1,632 1,481 1,283 1,338 1,516 2,144 2,507
Investments
1,293 1,470 2,156 3,104 2,969 2,913 3,301 3,599 3,200 3,808
Net current assets
18
65
257
592
747
43
(485) 309
596
2,072
Miscellaneous expenditure
-
122
163
217
260
463
342
256
232
161
2,664 2,963 4,164 5,545 5,457 4,702 4,496 5,585 6,196 8,619 Financed by Equity shares
186
279
279
269
259
251
239
Reserves & Surplus
1,308 1,586 2,123 3,430 3,653 4,059 4,196 5,252 5,909 7,319
Loan funds
1,170 1,098 1,762 1,846 1,545 392
61
239
94
239
48
239
1,061
2,664 2,963 4,164 5,545 5,457 4,702 4,496 5,585 6,196 8,619 Profits and appropriations Sales Profit before Depreciation, Amortization and Tax Depreciation and Amortization Profit before tax and Exceptional items
10,301 11,698 13,325 14,510 13,491 14,705 16,154 18,179 23,171 26,177 735
962
1,369 1,630 1,722 2,251 2,645 2,218 1514
2,723
159
172
189
291
576
790
1,180 1,390 1,461 2,027 2,455 2,001 1,261 2,432
Exceptional items
-
(19)
(41)
Profit before tax *
576
771
1,139 2,591 1,473 1,844 2,203 2,007 1,184 2,323
Taxation
180
261
434
559
Profit after tax
396
510
705
2,032 991
1,188 1,488 1,464 1,076 1,910
Dividends
102
125
153
201
251
272
334
358
358
430
Tax on dividend
11
14
16
-
32
35
47
50
61
73
240
261
1,201 12
58
482
224
190
217
(183) (252) 6
656
715
543
253
(77)
108
(109)
413
Debenture Redemption Reserve
-
-
47
14
Retained earnings
283
371
489
1,564 692
18
-
-
-
-
910
1,117 1,056 657
1,407
* Includes impact on account of transfer of dairy business of Rs. 1257 Mn in 2002.
NET PROFIT Britannia Net Profit increases 17.5% Mumbai, July 31st, 2009: Britannia Industries Ltd. (BIL), India’s leading Food Company, reported sales of Rs. 7,312 MM for the quarter ended 30th June 2009, a growth of 5.5% and Net profit of Rs. 474 MM, an increase of 17.5%. Consolidated Revenue of Rs. 8,211 MM and Net Profit of Rs. 448 MM grew by 9% and 33% respectively. Commenting on the performance, Ms. Vinita Bali, Managing Director, said, “In an intensely competitive market, we significantly increased our investment behind brands and maintained operating margin. Invigorated focus on working capital management also contributed to cash from operations of over Rs. 1,750 MM during the quarter.” Britannia launched several new and renovated offerings, which included ‘NutriChoice Nature Spice Cracker’ with the goodness of Ajwain & Jeera, Britannia ‘Top’ and a renovated ‘Marigold’ – more tasty and fortified with 10 Proteins, Vitamins & Minerals, in line with Britannia’s ‘Health & Nutrition’ platform. Consumers continue to re-affirm their trust in Brand ‘Britannia’ and have once again voted ‘Britannia’ among the Top 10 Most Trusted Brands across all categories and # 2 Most Trusted Food brand, in an independent survey conducted by AC Nielsen and The Economic Times.
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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 brands 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.
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SUGESSTIONS •
Decrease
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BIBLIOGRAPHY The data presented to you in this project has been compiled from the following books and websites:
Books Marketing management: analysis, planning, implementation, and control by Philip Kotler - Business & Economics - 1988 Marketing Management by Philip Kotler, Kevin Keller - Business & Economics - 2008 Research methodology: a step-by-step guide for beginners by Ranjit Kumar - Social Science - 2005 Research methodology by Douglas K. Detterman - Psychology - 1985
WEBS NAME OF SITE
WWW.BRITANNIA.CO.in WWW.WIKIPEDIA.ORG WWW.GOOGLE.COM WWW.Scribd.COM WWW.BUSSINESSTODAY.INTODAY.IN
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